HomeMy WebLinkAboutO-117T*
ORDINANCE NO. 117
To authorize the town of Fairhope, "labama, to con-
strudt a sewer system including the installation of
sanitary disposal equipment and and appliances and to
construct a water works system to be owned and operated
by said town and for such purposes to borro-,An money;�and
issue revenue bonds payable from the revenue derived from
the operation of said systems; to create and declare
statutory mortgage lien on said systems and to pledge
the gross receipts derived from the operation of said
systems to create and declare a statutory mortgage lien
on said systems and to pledge the gross receipts derived
from the operations of such systems to secure the payment
of said bonds and the interest thereon.
BE IT ORDAINED BY THE T0ViN COUNCIL OF THE TOWN OF
FIIRHOPE, ALABAMA, AS FOLLOWS:
SECTION 1. That the town of Fairhope, Alabama,
hereinafter 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 construct a water works system to be owned and
operated by said town and in furtherance of said projects
or either of them to purchase and construct any necessary
part of any of the above named system either within or
without the corporate limits of said town. The entire
profect or contemplated improvements will hereinafter
sometimes be referred or called the combined system.
A brief description of the contem lated improvement
and combined system is as follows: (a� to construct a
water works system to be owned and operated by the town,
including a deep well, laying six inch and tight 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 necessary fire ad pupp
service, (b) to construct a complete sewer system including
the installation of sanitary disposal equipment and appli-
andes in full accordance with the requirements of the State
Bogrd of Health, and (c) to provide storage room for meters
and other equipment and appliances sued 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
improvements and combined system and the amount of said
extimate is One Hundred Twenty Thousand ($120,000) DollArs.
SECTION 2. That for the purpose of defraying the
cost of constructing said combined system, as described
and provided for in Section 1 hereof , the said town is
hereby authorized to borrownthe sum of One Hundred and
Twenty Thousand ($120,000) Dollars and to evidence such
indebtedness issue in its revenue, negotiable bonds as
provided in Act of the Legislature of Alabama, approved
March 29, 1933, and found on pages 88 to 98, both
inclusive of Acts of Special or Extra Session of the Legis-
lature of 1933• Said bonds shall be in such denominations
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.
11P
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3. That said bonds and the coupons thereto attached
shall be made payable at
that the bonds shall mature annually and the first in-
stallment 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:
Amounts of Installments
First Installment
$29500
2
years
after
date
date
of
of
bonds.
bonds.
Second
Third
it
if
2,500
2.500
3
4
years
years
after
after
date
of
bonds.
Fourth
it
2,500
5
6
years
after
after
date
date
of
of
bonds.
bonds.
Fifth
to
if
2,500
2,500
7
years
Yeats
after
date
of
bonds.
Sixth
Seventh
to
37000
8
years
after
date
of
bonds/
Eighth
to
3,000
9
10
years
after
afterchte
date of
o f
bonds.
bonds.
Ninth
Tenth
if
"
3,000
37000
11
years
Yeats
after
date
of
bonds.
Eleventh
"
to
3,000
12
13
years
after
after
date
date
of
of
bonds.
bonds.
Twelfth
Thirteenth
of
39500
$9500
14
years
years
after
date
of
bonds.
Fourteenth
"
3,500
15
years
after
after
date
date
of
of
bonds.
bonds.
Fifteenth
Sixteenth
"
of
37500
47000
16
17
years
years
after
date
of
bonds.
Seventeenth
it
4,000
18
years
-after
date
date
of
of
bonds.
bonds.
Eighteenth
Nineteenth
it
of
41000
49500
19
20
years
years
after
after
&t a
of
bonds.
Twentieth
"
"
41500
4,500
21
22
years
years
after
after
date
c ate
of
of
bonds.
bonds.
Twentj*�flrst
Twenty-second
"
57900
23
years
after
date
of
bonds.
Twenty-third
"
"
57000
57500
24
25
years
years
after
after
date
date
of
of
bonds.
bonds.
Twenty-fourth
Twenty-fifth
"
51500
26
Yeats
after
date
of
bonds.
Twenty-sixth "
5,5o0
69900
27
28
years
years
after
after
date
date
of
of
bonds.
bonds.
Twenty-seventh"
Twnety-eighth
"
69000
29
years
after
date
of
bonds.
Twenty ninth
T�
67000
61000
30
31
Years
after
after
date
dateeats
of
._
bonds.
bonds.
Thirtieth
yrof
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,
enlarge#, extended or repaired.
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 there-
to, it being required that each bond shall have attached
thereto sufficient coupons to evidence each semi-an-
nual installment of interest to be paid thereon. Provided
however, said bonds shallbe in such forms prescribed by
the Ex-officio Bond Commissicner of the State of Alabama
as provided by Section 35 of said Act of the Legislature
of Alabama approved March 29, 1933 anything herein
stated to the contrary notwithstanding.
5. That all moneys received from such bonds shall
be used solely for the purpose of the construction, im-
provement, ehlargement, 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 sale of such bonds remaining
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afte 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 tie 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 coupons
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 tosaid statutory mort-
gage lien until payment in full, principal And interest,
upon all of said bonds has been made.
SECTION 7. That there is hereby mt aside monthly
and pledged the gross revenues of said combined system
separate and special funds as follows:
Out of the gross ievenues 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 remaining 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-
maini,ng 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 Rooms 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
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Outside faucets per year for one 3.00
Additional outtide faucets per year each .75
Meter Rates:
1st
5d. Gallons
.30
per
M.
Gals,
Next
2M. it
.25
per
M.
Gals.
Next
5 M. it
.20
per
M.
Gals,
Next
38M, it.18
per
M.
Gals,
Next
50M. tt
.15
per
M.
Gals.
101
or more M. Gal.
:12
per
M.
Gals.
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 tiis Section provided. Such rates
shall be fixed and revised from thin 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 shalltegin on
the first day of Octobdr 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 town 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 all 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 f scal 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 reasonable 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 Alabama,
and satisfactorily to themselves. The bank or trust
company shall signify its acceptance of such suctodian-
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 rritten instructions from the town into the appro-
priate fund or funds designated in Section 7 of this or-
dinance. Each and all of said designated funds from time
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to time held by such bank or trust company shall be im-
pressed with 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 addition
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 tb those imposed by this ordinance and
they shall have and exercise all the rights, posers
and privileges given by the laws of the State, whether
or not the same are incorporated in this ordinance.
Mayor
Clerk