ORD1974260‘i
AN ORDINANCE PROVIDING FOR THE ISSUANCE
AND SALE OF $915.000 SEWERAGE SYSTEM MORTGAGE REVENUE BONDS,
SERIES 1973, OF THE CITY OF IWSKEGO, WAUKESHA COUNTY. WISCONSIN,
AND PROWDING FOR THE PAYMENT OF SAID BONDS
AND OTHER DETAILS WITH RESPECT THERETO
WHEREAS, the City of Muskego, Waukesha County, Wisconsin (hereinafter referred to as the
“City”), has for several years owned and clperated its sewerage system, which is operated as a public
utility (hereinafter referred to as the “System”); and
WHEREAS, under the provisions of Chapter 66 of the Wisconsin Statutes any city in the State
of Wisconsin may, by action of its governing body, provide for the construction or extension of any
public utility from the proceeds of bonds, which bonds are to be payable only from the income and
revenues derived from the operation of such System, and are to be secured by a statutory mortgage lien
upon such System; and
WHEREAS, it is now advisable and necessary that the System be extended to include a plant for
treatment and disposal of sewage and mauls and interceptor sewers in the northeast and northwest
assessment areas in the City, and facilities and appurtenances necessary or convenient in conjunction
therewith, and
WHEREAS, for the purpose of paying the cost of such construction it is desired to authorize
and sell mortgage revenue bonds of the City, pursuant to the provisions of Section 66.066, Wis. Stats.,
to be payable solely from revenues to be derived from the operation of the System; and
WHEREAS, the City has heretofore iluthorized and issued “Sewerage System Mortgage Revenue
Bonds,” dated November I, 1968, now outstanding in an aggregate principal amount not in excess of
S310,OOO (the “1968 Bonds”), pursuant to ordinance number 128 adopted by the Common Council of
the City on October 29, 1968 (the “1968 Ordinance”); and
WHEREAS, no other obligation payable from the income and revenues derived from the
operation of the System is outstanding and none of the property constituting any property of the
System has been otherwise mortgaged or subjected to a security interest; and 4 WHEREAS, the 1968 Ordinance prolides that additional bonds may be issued on a parity with
the 1968 Bonds to aid the construction of the System in the northeast assessment District (in
accordance with filed preliminary plans) in a.n amount not to exceed the lesser of one-half the costs of
construction in said District or $1,000,000; and
WHEREAS, the certified costs of ccNnstruction of the extensions in said District responsive to 4 said plans amount to $ 8,647,301.00
c NOW, THEREFORE, the Common Council of the City of Muskego, Waukesha County,
Wisconsin. do ordain that:
Section 1 Authorization of Bonds. For the purpose of providing for the payment of the costs
of extending the System, together with the acquisition of property, equipment and appurtenances
thereto used or useful for the public convenience in connection therewith, as more fully described in the a preamble hereof, there shall be borrowed on the credit of the income and revenues of the System the
sum of Nine Hundred Fifteen Thousand Dollars ($915,000), and negotiable coupon bonds of the City
shall be issued in evidence thereof (the “Bonds”). The Bonds shall be designated “Sewerage System
Mortgage Revenue Bonds, Series 1973,” shall be dated August 1, 1973, shall be in the denomination of
$5,000 each, numbered 1 through 183, and shall mature serially in numerical order on November 1 of
each of the years as follows:
Amounts
$20,000
25,000
30,000
3 5,000
40,000
4 5,000
50,000
55,000
60,000
Years
(inclusive)
1975178
1919182
1983185
1986187
1988189
I99019 1
1992193
I994
1995196
65,000 I997198
It is hereby found and declared that the above schedule of maturities of the Bonds is such that
the requirements each year to pay both plincipal and interest on obligations payable from the income
and revenues of the System are as nearly equal as practicable.
The Bonds shall be payable as to both principal and interest at
First National Bank of St. Paul and Bonds maturing in the following years shall bear
interest payable May I, 1974 and semiannually thereafter on the lirst days of November and May of
each year at the rates set forth below,
Rate
Years of Maturity
(all inclusive)
5% 1975 through 1978
5%
5-3/4
5.90
5.80
1971 through 1983
1984 through 1986
1989 through 1998
1987 through 1988
-2-
Rate
Years of Maturity
(all inclusive)
The Bonds shall be registrable as to principal only and callable as specified and with the effect provided
in the Bond form established by Section 2 #of this Ordinance.
The Bonds shall be executed on behalf of the City by its Mayor and City Clerk, and the interest
coupons attached to the Bonds shall be siped by said officers by their respective facsimile signatures;
said officers shall, by the execution of the Bonds, adopt as and for their own proper signatures their
respective facsimile signatures appearing on said coupons.
The principal of and interest on thse Bonds shall be payable only out of the Special Redemption
Fund hereinafter defined, and shall be a valid claim of the holder thereof only against the Special
Redemption Fund and from the revenues, pledged to such fund, and sufficient revenues are hereby
pledged to the Special Redemption Fund, and shall be used for no other purpose than, to pay the
a principal of and interest on the Bonds as the same fall due. -
Section 2. Form of Bonds, Coupons and Registration Bhnk. The Bonds, coupons and
registration blank shall be in substantially the following form.
-3-
(Form of Bond)
UNITED STATES OF AMERICA
STATE: OF WISCONSIN
COUNTY OF WAUKESHA
CITY OF MUSKEGO
e SEWERAGE SYSTEM MORTGAGE REVENUE BOND, SERIES 1973
No. $5,000
KNOW ALL MEN BY THESE PRESENTS: That the City of
Muskego, Waukesha County, Wisconsin, hereby acknowledges itself
to owe and for value received promises to pay to bearer, or, if regis-
tered, to the registered holder hereof, from the revenues hereinafter
specified the sum of FIVE THClUSAND DOLLARS ($5. 000) on the first
day of August, 1973, with the interest at the rate of per cent ( )%
per annum, payable November 1. 1973 and semiannually thereafter on
the first days of May and November of each year, interest to maturity
to be paid upon presentation and surrender of the interest coupons attached
hereto as they severally become due. Both principal hereof and interest
hereon are hereby made payab1.e in lawful money of the United States of
America at
e Bonds of this issue maturing in the year 1989 and thereafter are
subject to call and redemption prior to maturity in whole or from time
to time in part in inverse numerical order at the option of the City on
November 1. 1988 or any interest payment date thereafter, at par, accrued
interest, plus a premium expressed as a percentage of par as follows
if prepaid On November 1, 1988
if prepaid thereafter and or or before November 1, 1989-------------- 2%
3%
if prepaid thereafter ________________________________________------ 1%
A notice of the call of said Bonds, stating the numbers of the Bonds called
for payment, the date on which said Bonds are called, and that said Bonds
shall cease to bear interest after such date, shall be published at least
once in a newspaper of the City of Madison, Wisconsin, which customarily
publishes such notices, not less than thirty (30) days prior to the date of call,
and shall be given by registered mail to the original purchasers of said Bonds,
-4-
to the bank at whic :h sai d Bonds are payable and to the registered holder
of any Bond called for redemption which is registered as to principal.
This Bond is one of an issue of like date, aggregating 915, 000
Dollars ($915.000. ), issued for the purpose of providing for the payment
of the cost of extending the Sewerage System of said City pursuant to
Article XI, Section 3, of the Wisconsin Constitution, Section 66. 066,
Wisconsin Statutes, acts supplementary thereto, and Ordinance No. 260
adopted on July 10, 1973 by the Common Council of the City, entitled,
An Ordinance Providing for the Issuance and Sale of $915,000 Sewerage
System Mortgage Revenue Bonds, Series 1973 of the City of Muskego.
Waukesha County, Wisconsin. z.nd Providing for the Payment of Said
Bonds and Other Details with Respect Thereto, " and is payable only from
a proportion of the income and revenues to be derived from the operation
of said System which have been set aside in a special fund created by
Ordinance No. 128 for that purpose. This Bond constitutes a first pledge
of the income and revenues so a.pportioned and does not constitute an
indebtedness of said City within the meaning of any constitutional or
statutory limitation or provision.
,!
A statutory mortgage lien, which is hereby recognized as valid
and binding on said System, together with all additions and improvements
thereto, is created and granted by statute to and in favor of the holder or
holders of this Bond and the issue of which it forms a part and in favor of
the holder or holders of the interest coupons attached to said Bonds, on a
parity with that granted the holcers of bonds and coupons of an issue of
"Sewerage System Mortgage Revenue Bonds" of the City dated November 1,
1968, and said System and all extensions and improvements thereto shall
remain subject to such statutory mortgage lien until the payment in full of
the principal and interest on this Bond and the issue of which it forms a
part.
This Bond may be registered as to principal only in accordance
with the provisions set forth on the reverse side hereof.
This Bond, unless it has been registered as to principal, and
the coupons attached hereto are fully negotiable. and all rights hereunder
shall pass by delivery, and each and every successive holder of this Bond
during such time as it is payable to bearer of each of the coupons hereto
attached are conclusively presumed to forego and renounce his and their
equities in favor of subsequent holders for value in good faith without
notice, and to agree that this Bond, while so payable to bearer, and each
of the coupons hereto attached, may be negotiated by delivery by any
person having possession thereof. howsoever such possession may have
-5
been acquired, and that any holcler who shall have taken this Bond or any
of the coupons from any person in good faith for value and without notice
thereby acquires absolute title thereto, free from any defenses enforce-
able against any prior holder and free from all equities and claims of
ownership of any such prior holder. The City and its officials shall not
be affected by any notice to the ,contrary. e
It is hereby certified, recited and declared that all acts, con-
ditions and things required to e,:ist, happen and be performed precedent
to and in the issuance of this Bond have existed, have happened and have
been performed in due time, form and manner as required by law, and
that sufficient of the income and revenue to be received by said City from
the operation of said System has been pledged to and will be set aside into
a special fund for the payment of principal and interest on this Bond.
e
IN WITNESS WHEREOF, the City of Muskego. Waukesha County,
Wisconsin, by its Common Council, has caused this Bond to be signed by
its Mayor and City Clerk, its corporate seal to be affixed hereto, and the
coupons hereto attached to be signed by said officers by their respective
facsimile signatures, and said officers. by the manual execution of this
Bond, do adopt as and for their respective proper signatures their respec-
tive facsimile signatures appearing on said coupons, all as of the first day
of August, 1973.
CITY OF niIUSKEGO
WAUKESHA COVNTY, WISCONSIN
-6-
(Form of Coupon)
No. $
On the first day of , 19 , the City of Muskego.
Waukesha County, Wisconsin, promises, as recited in and from the
funds specified in the Bond to which this coupon is attached, to pay
to bearer the amount shown hereon, in lawlul money of the United
States of America, at First National Bonk of St. Paul
Bank, fc'r interest due that date on its
"Sewerage System Mortgage Revenue Bond, Series 1973". dated
May 1. 1974, No. -
CITY OF MUSKEGO
WAUKESHA COUNTY, WISCONSIN
BY (Facsimile) BY (Facsimile)
City Clerk Vnvo r
(Form of additional clause to appear
on coupons numbered 22 and up. )
Unless the Bond to which. this coupon is attached has been called
for prior redemption, . . .
(Form. of blank for
registered ownership. )
Registration Provisions
This Bond may be registered as to principal only on books of
the City kept by its City Clerk, upon presentation hereof to said City
and upon said books, and this Bond may thereafter be transferred only
upon a written assignment duly executed by the registered holder or his
attorney, such transfer to be made on such books and endorsed hereon.
This Bond may be discharged fmm such registration by transfer to
bearer after which it shall be transferable by delivery, but shall be
of this Bond as to principal shall not restrain the negotiability
again subject to successive registrations as before. The registration
Clerk, such registration to be n'9ted in the registration blank below
-7-
of the coupons by delivery merely.
Date of
Regist rat ion In Whose Name Registered
Signature of
City Clerk
-8-
0 Section 3. Income and Revenue €unds. The income and revenues to be derived from the
operation of the System, including paymcnts received from the City for services rendered it, shall
continue to be set aside into separate and special funds established by the 1968 Ordinance and are to be
used and applied for the following purposes and in the following proportions.
32% of the income and revenues therefrom is presently necessary and shall be set aside in
the “Sewerage System Operation ant1 Maintenance Fund” for the reasonable and proper
operation and maintenance of the System;
5% of the income and revenues therefrom is presently necessary and shall be set aside in
the “Sewerage System Depreciati0.n Fund” as a proper and adequate depreciation
account;
63% of the income and revenues therefrom is presently necessary and shall be set aside in
the “Sewerage System Bond and Interest Special Redemption Fund” (herein referred to
as the “Special Redemption Fund”), and applied to the payment of the principal of and
interest on the Bonds.
The Operation and Maintenance Fund and the Depreciation Fund shall be deposited as received
in a bank or banks selected by the Comrrlon Council in the manner required by Chapter 34 of the
Wisconsin Statutes and shall be adequately :;ecured in the manner provided by law. All moneys in said
Funds in excess of that necessary for the necessary costs of operation, maintenance and depreciation
and reasonable reserves relating thereto and all other necessary disbursements shall be deposited in the
Special Redemption Fund but such deposits shall not reduce the amounts otherwise required to be paid
into the Special Redemption Fund.
It is the express intent and determination of this Common Council that the amount of said
income and revenues to be set aside and paid into the Special Redemption Fund shall, in any event, be
sufficient to pay the principal of the Bonds as the same matures, and the interest thereon as the same
accrues, notwithstanding the fixed proportion thereof temporarily allocated to such purposes in the
manner above provided, and the City shall from year to year, and out of the income and revenues
received from the operation of the System, deposit at least sufficient funds in the Special Redemption
Fund to pay promptly all principal and interest falling due on the Bonds. The minimum amounts
required to be deposited in the Special Redemption Fund are set forth on the schedule attached to, and
made a part of, this Ordinance.
I The total income and revenues so se’t aside for payment of the principal of and interest on the
Bonds shall, from month to month, as the r:ame shall accrue and be received, be set apart and shall on
the last day of each month, be paid into the Special Redemption Fund, which amount shall be not less
than one-twelfth (I /I 2) of the minimum amount so required to be deposited for each year. The Special
Redemption Fund shall be kept apart from other moneys of the System and the same shall be used for a
no purpose other than the payment of principal of and interest on the Bonds, promptly as the same
become due and payable. All money therein shall be deposited in a special account in a bank or banks
and shall be adequately secured in the manner required for public funds in the State of Wisconsin, and
such monthly payments above described shall be made directly to such bank.
To additionally secure the payment of principal of and interest on the Bonds, there is hereby
@established a separate account in the Special Redemption Fund to be known as the “Reserve Account,”
and the City hereby covenants and agrees that when any of the Bonds shall have been delivered, there
will be paid monthly into said Reserve Account $771.00 until a minimum of $I 10,000 will have
accumulated therein, provided that no such payments need be made into the Reserve Account at such
times as the moneys in said account are equal to the maximum principal and interest requirements on
the Bonds for any unexpired twelve months’ period, or the remaining principal and interest requirements
on the Bonds then outstanding, whichever sh.111 be the lesser. If for any reason there shall be insufficient
funds on hand in the Special Redemption Fund to meet principal or interest becoming due on the
Bonds. all sums then held in the Reserve Account shall be used to pay the portion of interest or
principal on such Bonds becoming due as to which there would otherwise be default, and thereupon the
payments required by this paragraph shall again be made into the Reserve Account until the Reserve
Account meets the minimum requirements provided herein.
Funds in the Special Redemption Fund in excess of the minimum amounts required to be paid
therein plus reserve requirements may be inbested in any manner permitted by statute or may be used,
at the option of the Common Council, to redeem callable Bonds of this issue prior to maturity or to e purchase Bonds of this issue on the open market
Section 4. Mortgage Lien. For the further protection of the holders of the Bonds and the
interest coupons attached thereto, a statutory mortgage lien upon the System is granted and created by
Section 66.066. Wis. Stats., which lien is hereby recognized as valid and binding upon the City as a valid
and binding lien upon the System and any ,additions and improvements thereto on a panty with that
granted the holders of bonds and coupons of an issue of “Sewerage System Mortgage Revenue Bonds”
of the City dated November I, 1968; and the System shall remain subject to such statutory mortgage
lien until payment in full of the principal of and interest on the Bonds.
Section 5. Service to City. The reasonable cost and value of any service rendered to the City 0 and its inhabitants by the System, including Ireasonable charges for public health benefits, shall continue
to be paid for monthly as such service accrues out of the current revenues of the City collected or in
process of collection, exclusive of the revenues derived from the System, to-wit: out of the tax levy of
the City made by it to raise money to meet its necessary current expenses. Such amount shall include
the amounts required to be paid by the 1968 Ordinance and shall not exceed the lesser of One Hundred
Ten Thousand Dollars ($I 10,000) or such part thereof as may be necessary from year to year to pay
the balance of an amount which, together with other revenues of the System, will produce earnings
equivalent to not less than one and three-tenths (1.3) times annual principal and interest requirements
on the Bonds after deduction of all operating and maintenance expenses of the System.
10 -
I
8 Section 6. Application of 1968 Ordinance. The following provisions of the 1968 Ordinance shall
apply to the Bonds with the same force and effect as if set forth in full herein and shall survive, as to
the Bonds, the payment and retirement of the 1968 Bonds. Section 6, Section 7, Section 8 and Section
9.
~~
Section 7. Sale of Bonds The sale of the Bonds to @ Channer Newman Securities Co., , IS hereby ratified and confirmed in accordance with a
contract of sale heretofore entered into by the Common Council at a price which results in an interest
cost not in excess of eight per cent (8%) per annum, computed to the maturity of the Bonds according
to standard tables of bond values; and the officers of the City are hereby authorized and directed to do
any and all acts necessary to conclude delivery of the Bonds to said purchaser, upon receipt of the
purchase price, as soon after adoption of this Ordinance as is convenient.
Inc,
I Section 8. Application of Bond Boceeds. All accrued interest received from the sale of the
I
I
Bonds shall be deposited in the Special Re,demption Fund and applied toward the payment of interest
coupons next becoming due and payable after delivery of the Bonds. The balance of the proceeds shall
be deposited in a special fund by the Treasurer, desimated as “Sewerage System Construction Fund.”
Said special fund shall be adequately secured and shall be used solely for the purpose of meeting costs
of constructing the System, as more fully described in the preamble hereof. Any balance remaining in
said Construction Fund after paying said costs shall be transferred to the Special Redemption Fund for
use in payment of principal of or interest on the Bonds. The money in said funds may be invested but
never in a manner as to constitute the Bends “arbitrage bonds” under the provisions of the Internal -
Revenue Code and an officer of the City shall so certify. 0
Section 9. Conflicting Ordinances. AU ordinances, resolutions or orders, or parts thereof,
heretofore enacted, adopted or entered, in conflict with the provisions of this Ordinance, are hereby
repealed and this Ordinance shall be in effecl: from and after its passage and publication.
Passed: July 10 , 1973.
Recorded: July 10 , 1973.
Published: 19 , 1973.
Bette J. Bowyer, City Clerk