NOTICE OF ADOPTION AND PURPORT OF AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF WARSAW, INDIANA, AUTHORIZING THE ACQUISITION AND CONSTRUCTION BY THE CITY OF WARSAW, INDIANA, OF CERTAIN IMPROVEMENTS AND EXTENSIONS TO THE CITY'S SEWAGE WORKS, THE ISSUANCE AND SALE OF ADDITIONAL REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, THE PLEDGE OF SEWAGE WORKS REVENUES TO THE PAYMENT OF LEASE RENTALS, THE ISSUANCE AND SALE OF BOND ANTICIPATION NOTES IN ANTICIPATION OF THE ISSUANCE AND SALE OF THE BONDS, AND THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SUCH SEWAGE WORKS AND OTHER RELATED MATTERS Notice is hereby given that the Common Council of the City of Warsaw, Indiana (the "Common Council"), on May 19, 2008, adopted Ordinance No. 2008-04-02 entitled" AN ORDINANCE AUTHORlZING THE ACQUISITION AND CONSTRUCTION BY THE CITY OF WARSAW, INDIANA, OF CERTAIN IMPROVEMENTS AND EXTENSIONS TO THE CITY'S SEWAGE WORKS, THE ISSUANCE AND SALE OF ADDITIONAL REVENUE BONDS TO PROVIDE FUNDS FOR THE PAYMENT OF THE COSTS THEREOF, THE PLEDGE OF SEWAGE WORKS REVENUES TO THE PAYMENT OF LEASE RENTALS, THE ISSUANCE AND SALE OF BOND ANTICIPATION NOTES IN ANTICIPATION OF THE SALE OF THE BONDS, AND THE COLLECTION, SEGREGATION AND DISTRlBUTION OF THE REVENUES OF SUCH SEWAGE WORKS AND OTHER RELATED MATTERS" (the "Ordinance"). The Ordinance authorizes the City of Warsaw, Indiana (the "City") to provide for the acquisition and construction of improvements and extensions to the sewage works of the City, consisting of the acquisition, construction and installation of necessary improvements and extensions to the City's sewage works, including any or all of the following: (i) a new laboratory and administration building located at Wastewater Plant No. 2 consisting of an approximately 3,200 square foot slab with a second floor; (ii) new sanitary and storm sewers along Country Club Drive South; (iii) a 48-inch diameter storage pipe along with associated inlet and outlet structures for combined sewer overflow abatement; (iv) installation of a gravity sewer and now meter along SR-15; (v) a biosolids storage addition consisting of an approximately fifty 50-foot extension of the Sludge Storage Building at Wastewater Plant No. 2; and (vi) related improvements (the "Project"). The Ordinance further authorizes the issuance of a maximum total of Three Million Three Hundred Seventy-five Thousand and 00/100 Dollars ($3,375,000.00) of sewage works revenue bonds (the "Bonds") and authorizes the issuance of bond anticipation notes (the "BANs") in anticipation of the Bonds. The proceeds of the Bonds (and BANs, if issued) are to be applied to the cost of the Project, and incidental related expenses. The Ordinance provides that the Bonds shall be special revenue obligations of the City payable solely from and secured by an irrevocable pledge of and constituting a charge upon all of the net revenues derived from the City's sewage works. The Bonds shall rank on a parity with: (i) the City's pledge (the "Lease Pledge") of the net revenues of the Sewage Works (and to the extent available, (a) the City's distributive share of County Economic Development Income Tax revenues and (b) tax increment revenues received by the Warsaw Redevelopment Commission from the Northern Economic Development Area made available for such purpose) for the payment of the lease rentals due under a lease between the City of Warsaw, Indiana, Building Corporation (the "Building Corporation") and the City, dated as of October 1, 2001, as amended (the "Lease"), which lease rentals are used to pay (a) debt service on the Building Corporation's Lease Rental Revenue Bonds of 200 I (the "2001 Lease Obligations") outstanding after January 15, 2008, in the aggregate principal amount of $205,000.00, and (b) debt service on the Building Corporation's Lease Rental Refunding Revenue Bonds, Series 2005, outstanding after January 15, 2008, in the aggregate principal amount of $9,860,000.00: and (ii) the City's Sewage Works Refunding and Improvement Revenue Bonds, Series 2003, dated April 15,2003 (the "2003 Bonds" and with the Lease Pledge, the "Prior Obligations"), outstanding after January 1, 2008, in the aggregate principal amount of $9,380,000.00. The Bonds shall not constitute an indebtedness of the City within the meaning of the provisions and limitations of the constitution of the State of Indiana. The BANs, if issued, shall be retired out of the proceeds of the Bonds. The interest on the BANs shall be payable from the net revenues of the sewage works subject to the prior lien thereon of the Prior Obligations, and from capitalized interest. The Ordinance sets forth provisions governing the Bonds and the BANs including, without limitation, redemption rights, transfer and exchange privileges, provisions concerning the sale of the Bonds and the BANs, the collection, segregation, and distribution of the revenues of the sewage works, provisions concerning the issuance of additional bonds and covenants of the City relating to the Bonds. Forty (40) or more owners of property connected or to be connected to and served by the City's sewage works may file a written petition with the Common Council within twenty (20) days after the date of publication of this notice, objecting to the construction and acquisition of the Project in the manner provided by law. Dated this 23rd day of May, 2008. COMMON COUNCIL OF THE CITY OF WARSAW, INDIANA By: Clerk-Treasurer m23[[In-content Ad]]
