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An Ordinance To Continue the Operation of Water Supply System and the Sewage Disposal
System of the City of Hastings as a Single System To Be Operated on a Combined Rate
Basis; To Provide for Refunding Outstanding Water and Sewer Revenue Bonds; To Provide
for the Acquisition and Construction of a New Two-Stage Sewage Treatment Plant as
a Part of Said System; Authorizing and Providing for the Issuance of Self-Liquidating
Revenue Bonds To Provide Part of the Cost Thereof Under the Provisions of Act No.
94 of the Public Acts of Michigan of 1933 [MCL 141.101 et seq., MSA 5.2731 et seq.],
as Amended; Pledging the Full Faith and Credit of the City for the Payment of Said
Bonds and the Interest Thereon; Providing for the Fixing, Collection, Segregation
and Disposition of the Revenues of Said Combined System and Payment of Said Bonds
out of the Revenues Thereof; and To Provide for Other Matters Relative to Said System
and Said Bonds.
WHEREAS, the City Council of this City of Hastings deems it necessary for the public
health and safety of the city to acquire and construct certain additions and improvements
to the system consisting of a complete new two-stage treatment plant, including a
primary plant with chemical feeding equipment for phosphorus removal and a raw sewage
pumping station and a secondary plant with sludge thickening and developing facilities
together with appurtenances and attachments;
AND WHEREAS, the city has retained the consulting engineering firm of Jones & Henry
Engineers Limited of Toledo, Ohio, to prepare plans, estimates and specifications
for the project, and said engineers have prepared plans and specifications therefor,
and have estimated the cost thereof to be $1,779,000.00, including engineering, contingencies,
financing and legal expenses;
AND WHEREAS, the city has heretofore issued water supply and sewage disposal system
revenue bonds dated September 1, 1952, which are a first lien on the net revenues
of the system, which outstanding bonds mature $20,000.00 on March 1 of each of the
years 1971 to 1980, inclusive, and which outstanding bonds are now all subject to
prior redemption at the option of the city on any interest payment date hereafter
and it is deemed advisable and necessary to redeem said outstanding bonds on March
1, 1971, in order to permit as short a retirement schedule for the total financings
of the system as is possible which should result in an interest saving on the total
financing for the system and accordingly it is necessary to include in the amount
of the proposed bond issue authorized by this ordinance the sum of $100,000.00 to
pay part of the cost of refunding said outstanding bonds (including the call premiums
of $10.00 for each bond) maturing after March 1, 1971, the balance of the cost thereof
in the amount of $81,800.00 to be paid from funds on hand;
AND WHEREAS, the city deems it necessary and advisable to continue operation of its
water supply and sewage disposal system as a single combined system to be operated
on a utility basis, and to issue revenue bonds for the purpose of refunding the outstanding
bonds and constructing the additions and improvements to the system, hereinbefore
described;
THE CITY OF HASTINGS ORDAINS:
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