HomeMy WebLinkAboutO-115ORDINANCE NO. 115
AN ORDINANCE to authorize the town of Fairhope,
Alabama, to construct a sewer system including the
installation of sanitary disposal equipment and appli-
ances and to improve, enlarge, extend or repair the
water works system owned and operated by said town and
for such purposes to borrow money and issue revenue
bonds payable from the revenue derived from the oper-
ation of said systems; to create and declare a statu-
tory mortgage lien on said systems and to pledge the
gross receipts derived from operations of such systems
to secure the payment of said bonds and the interest
thereon.
BE IT ORDAINED by the Town Council of the Town of
Fairhope, Alabama as follows:
1. That the town of Fairhope, Alabama, herein-
after called the town be and is hereby authorized to
construct a sewer system, including the installation of
sanitary disposal equipment and appliances for said
town; to improve, enlarge extend or repair the water
works system now owned anA operated by said town and in
furtherance of said projects or either of them to pur-
chase and construct any necessary part of any of the
above named systems either within or without the cor-
porate limits of said town. The entire project or con-
templated improvements rill hereinafter sometimes be
referred or called the combined system.
A brief description of the contemplated improve-
ment and combined system is as follows: pa) to improve
and extend the water works system now owned and operated
by the town, including an additional deep well, layins
six inch and eight inch mains, installing standard fire
hydrants, to provide elevated storage of seventy-five
thousand (75,000) gallons of water, ground storage two
hundred thousand (200,000) gallons with aerator and
sedimentation chamber and providing and'installing neces-
sary fire and pump services, (b) to construct a complete
sewer system, including the installation of sanitary dis-
posal equipment and appliances in full accordance with
the requirements of the State Board of Health, and (c)
to provide storage room for meters and other equipment
and appliances used and or to be used in operating said
water works system and sewer system. An estimate has
been made of the cost of said contemplated improvement'
and combined system and the amount of said estimate is
One Hundred and Twenty Thousand ($120,000.00) Dollars.
2. That for the purpose of defraying the cost of
purchasing, constructing, improving, enlarging, extending
or repairing said combined system, as described and pro-
vided for in Section 1 hereof, the said town is hereby
authorized to borrow the sum of One Hundred and Twenty
Thousand ($120,000.00) Dollard and to evidence such in-
ddbtedness issue its revenue, negotiable bonds as pro-
vided in an Act of the Legislature of Alabama, approved
March 29, 1933, and found on pages 88 to 98, both in-
clusive of Acts of Special or Extra Session of the
Legislature of 1933• Said bonds shall be in such de-
nominations or amounts and shall bear interest, payable
semi-annually, at such rate (not exceeding 6 per cent
per annum) as the Mayor and Council of the town may
deem best or practical.
-2-
I
That said bonds and the coupons thereto attached shall
be made payable at that the bonds
shall mature annually and the first installment thereof
shall be made payable two years from the date of such
bonds; that the amounts of the several installments, and
the time for their respective payments shall be as follows:
Ampimts of Installments
First Installment
$29500
2
years
after
date
of
bonds.
Second It
2t500
3
years
after
date
of
bonds.
Third
It
29500
4
years
after
date
of
bonds.
Fourth
It
29500
5
years
after
date
of
bonds.
Fifth
it
29500
6
years
after
date
of
bonds.
Sixth
It
21500
7
years
after
date
of
bonds.
Seventh
"
3t000
8
years
after
date
of
bonds.
Eighth
"
39000
9
years
after
date
of
bonds.
Ninth
"
39000
10
years
after
date
of
bonds.
Tenth
"
37000
11
years
after
date
of
bonds.
Eleventh
"
39000
12
years
after
date
of
bonds.
Twelfth
"
39500
13
years
after
date
of
bonds.
Thirteenth
"
3,500
14
years
after
date
of
bonds.
Fourteenth
"
39500
15
years
after
date
of
bonds.
Fifteenth
"
32500
16
years
after
date
of
bonds.
Sixteenth
"
41000
17
years
after
date
of
bonds.
Seventeenth
"
49000
18
years
after
date
of
bonds.
Eighteenth
"
49000
19
years
after
date
of
bonds,
Nineteenth
"
49500
20
years
after
date
of
bonds.
Twentieth
"
49500
21
years
after
date
of
bonds.
Twenty-first
It
49500
22
years
after
date
of
bonds.
Twenty-second
"
59000
23
years
after
date
of
bonds.
Twenty-third
"
59000
24
years
after
date
of
bonds.
Twenty-fourth
"
59500
25
years
after
date
of
bonds.
Twenty-fifth
"
59500
26
years
after
date
of
bonds.
Twenty-sixth
"
59500
27
years
after
date
of
bonds.
Twenty-seventh
"
69000
28
years
after
date
of
bonds.
Twenty-eighth
"
67000
29
years
after
date
of
bonds.
Twenty-ninth
"
69000
30
years
after
date
of
bonds.
Thirtieth
"
61000
31
years
after
date
of
bonds.
That the principal of and the interest upon such
bonds shall be payable solely from the revenues derived
from the operation of said water works system, sewer
system and sanitary disposal equipment and appliances
hereinabove authorized to be constructed, improved,
enlarged, extended or repaired.
SECTION 4. That all bonds issued hereunder shall be
executed in the name of the town by the Mayor and attested
by the Town Clerk and a fac simile signature of the Mayor
shall be printed or lithographed on the coupons attached
thereto, it being required that each bond shall have
attached thereto sufficient coupons to evidence each semi-
annual installment of interest to be paid thereon. Pro-
vided however, said bonds shall be in such forms prescribed
by the Ex-officio Bond Commissioner of the State of Ala-
bama as provided by Section 35 of said Act of the Legis-
lature of Alabama, approved March 29, 1933, anything here-
in stated to the contrary notwithstanding.
SECTION 5• That all moneys received from such bonds
shall be used solely for the purpose of the construction,
improvement, enlargemen-, extension or repair of the one
or more of the systems or the combined system for which
issued, including the engineering, legal and other ex-
penses incident thereto; provided, however, that such
moneys be used also to advance the payment of the interest
on such bonds during the first three (3) years following
the date of such bonds. Provided, that any unexpended
balance of the proceeds of the sald of such bonds remaining,
-3-
after the completion of the project for which issued
shall be paid immediately into the Bond and Interest
Redemption fund for such bonds, and the same shall be
used only for the payment of the principal of the bonds,
and the interest for the first three years following the
date of the bonds, or in the alternative to acquire out-
standing bonds of the general issue from which the proceeds
were derived , by purchase of such bonds at a price (ex-
clusive of accrued interest) not exceeding the face amount
thereof. Any bonds so acquired by purchase shall be
cancelled and shall not be re -issued.
SECTION 6. That a statutory mortgage lien is here -
by created and given on said sewer system and water works
system, and the appurtenances and extensions so constructed,
to and in favor of the holders of said bonds and each of
them, and to and in favor of the holders of the coupcns
and each of them. Said statutory mortgage lien is hereby
created and declared to be upon the whole of such combined
system with appurtenances and extensions thereto and said
combined system shall remain subject to said statutory mort-
gage lien until payment in f 11, principal and interest,
upon all of said bonds has been made.
SECTION 7. That there is hereby set aside monthly
and pledged the gross revenues of said combined system
separate and special funds as follows:
Out of the gross revenues there shall be first set
aside a sum sufficient to pay the principal of and the
interest upon the bonds as and when the same become due
and payable. In the event that the gross revenues of
any fiscal year shall be insufficient to pay the prin-
cipal of and interest on the bonds maturing in any such
fiscal year, then an additional amount sufficient to pay
the principal of and interest on such bonds outstanding
and unpaid shall be set aside out of the gross revenues
of the next succeeding fiscal year and applied to the
payment of the principal of and interest on such out-
standing and unpaid bonds. This fund shall be designated
"Bond and Interest Redemption Fund." Out of the re-
maining gross revenues there shall be next set aside
a sum sufficient to provide for the payment of all ex-
penses of administration, operation and such expenses
for maintenance as may be necessary to preserve the com-
bined system in good repair and working order. This
fund shall be designated "Operation and Maintenance Fund."
Out of the r ema;ning gross revenue there shall be next
set aside a sum sufficient to build up a reserve for
depreciation of the existing combined system. This fund
shall be designated "Depreciation Fund." Out of the re-
maining gross revenues there shall be next set aside a
sum sufficient to build up a reserve for improvements,
betterments and extensions to the existing combined
system other than those necessary to maintain the same
in good repair and working order as hereinbefore provided
for. This fund shall be designated "Contingent Fund."
Any surplus revenues thereafter remaining shall be dis-
posed of by the Town Council of said town hereinafter
called the governing body of the borrower as it may de-
termine from time to time to be for the best interest of
the borrower.
SECTION 8. That the rates for services furnished
for said combined system are fixed as follows:
WATER RATES
Flat Rates:
Six rooms or less per year $12.00
Additional romms above 6 per year each .75
Tub or shower bath per year for one 3.00
Additional shower or tub bath per year each 2.25
Toilets per year for one 3.00
Additional toilets per year each 2.25
-4—
Outside faucets per year for one 3.00
Additional outisde faucets per year each .75
Meter Rates:
1st
5M. Gallons
.30
per
M.
Gals,
Next
2M "
�5
Next
5M to
.20
n
++
++
Next
38M of
.18
Next
59M it
.15
101
or more M. Gal.
.12
That such rates are sufficient to provide for the
payment of the interest upon and the principal of all
such bonds issued pursuant to this ordinance as and when
the same become due and payable, to create a Bond and
Redemption Fund therefor, to provide for the payment of
the expenses of administration and operation and such
expenses for maintenance of the combined system necessary
to preserve the same in good repair and working order,
to build up a reserve for depreciation of the existing
system and the combined systems, and to build up a re-
serve for improvements, betterments and extensions to
the existing system and combined system other than those
necessary to maintain the same in good repair and working
order as hereinbefore in this Section provided. Such rates
shall be fixed and revised from time to time so as to
produce these amounts, and the town and the Mayor and
Council thereof hereby =covenant and agree at all times
to maintain such rates for services furnished by said
existing system and or combined system as shall be suf-
ficient to provide for the foregoing.
9. That said combined system shall be operated on
a fiscal year basis. Each fiscal year shall begin on
the first day of October in each calendar year and shall
end on the 30th day of September in the next succeeding
calendar year.
10. That the Mayor and Council of the twon shall
install and maintain proper books of record and account
(separate entirely from other records and accounts of
such borrower) in which full and correct entries shall
be made of ell -dealings or transactions of or in relation
to the properties, business and affairs of the combined
system. The governing body not later than three months
after the close of any fiscal year shall cause to be
prepared a balance sheet and an income and surplus account
showing respectively in reasonable detail, the financial
condition of the combined system at the close of each
preceding fiscal year, and the financial operations there-
of during such year. Said balance sheets and income and
surplus accounts shall at all easonable times during
'usual business hours be open to examination and inspection
by any taxpayer, user of the services furnished by this
system of any holder of bonds issued under the provisions
of this ordinance or any one acting for or on behalf of
such taxpayer, user of the services of the system, or
bond holder.
11. The Mayor and Council of the town shall des-
ignate as custodian of the gross revenues from the operation
the combined system a bank or trust company duly qual-
ified and doing business within the State of Alabamat
and satisfactorily to themselvds. The bank or trust
company shall signify its acceptance of such custodian-
ship by a written instrument directed to the mayor and
council of the town. All funds from time to time deriv-
ed from the operation of the combined system, or funds
of the town supplemental to the Operation and Maintenance
Fund, the Depreciation Fund and or Contingent Fund, shall
be deposited by the town with such Bank or trust company
and be set apart by such bank or trust company pursuant
to written in structions from the t won into the appro-
priate fund or funds desigated in Section 7 of this or-
dinance. Each and all of said designated funds from time
'S2
to time held by such bank or trust company shall be im-
pressed wits a trust for the benefit of the person or
persons entitled thereto.
12. That the bondholders and each of them, the cou-
pon holders and each of them, shall have and are hereby
given all the rights, remedies, powers and privileges
provided by the laws of the State of Alabama in dddition
to those herein expressly slated, and like wise, the town,
its Mayor and Council shall be and are hereby charged
with all duties and obligations imposed upon them by
law in addition to those imposed by this ordinance and
they shall have and exercise all the rights, posers
adn privileges given by the laws of the State, whether
or not the same are incorporated in this ordinance.
Mayor
Clerk