Ordinances-1965-58

ORDINANCE NO. 58 An ordinance providing for the issuance of $98,000 Sewer Revenue Bonds of the Town of Tiffin, Iowa, for the purpose of refunding a like aggregate amount of presently outstanding temporary sewer revenue obligations of said Town, prescribing the form of said proposed bonds and providing for safeguarding, protecting and paying said bonds. WHEREAS, the management and control of said proposed municipal sewage works and facilities is now and always has been vested in the Town Council of Tiffin, and no Board of Trustees has been created to manage and operate said sewage works and facilities; and WHEREAS, heretofore and in strict compliance with Chapter 394 of the Code of Iowa, this Town did order constructed and did construct a sewage works and facilities and a sewage treatment plant; and WHEREAS, during the construction of said sewage works and facilities and sewage treatment plant, temporary sewer revenue obligations were issued from time to time by said Town, acting by and through its Town Council, to the contractors under the terms of their contracts on estimates approved by the engineer for work performed and materials furnished and said temporary sewer revenue obligations, together with accrued interest thereon computed to December 1, 1965, exceeds the sum of $98,000; and WHEREAS, said sewage works and facilities and sewage treatment plant have now been fully completed in accordance with the terms of the construction contracts and have been tested and accepted by the Town, and over thirty days have elapsed since the final acceptance of said work of constructing a sewage works and facilities and a sewage treatment plant and there are no unpaid claims on file against the construction contractors; and WHEREAS, all of said outstanding temporary revenue obligations hereinbefore referred to are payable from and are secured by the net earnings of said municipal sewage works and facilities of said Town and do not constitute general obligations of said Town and the holders of said temporary sewer revenue obligations have agreed to surrender the same in exchange for a like aggregate principal amount of sewer revenue bonds of said Town containing maturity and interest provisions which are more advantageous to the Town and which will make possible the orderly payment of the cost of the sewage works and facilities and sewage treatment plant evidenced by said temporary sewer revenue obligations, and it is desirable and for the best interests of the Town that said outstanding temporary sewer revenue obligations be refunded; and WHEREAS, there are no available funds to pay said outstanding temporary sewer revenue obligations to the amount of $98,000 and under the terms of Section 394.12 of the Code of Iowa, authority exists for said Town to authorize and issue its sewer revenue bonds for the purpose of refunding said outstanding temporary sewer revenue obligations; and