NOTICE OF DETERMINATION TO CONSTRUCT AND FINANCE IMPROVEMENTS TO THE SEWAGE WORKS OF THE

TOWN OF NASHVILLE AND THE ADOPTION AND PURPORT OF THE

ORDINANCE AUTHORIZING THE SAME

On September 2, 2010, the Town Council of the Town of Nashville, Indiana (the "Town") adopted a Bond Ordinance (the "Bond Ordinance") thereby determining and ordering the construction of certain improvements to the existing sewage works system of said Town, including, without limitation, construction of a new influent screening structure with mechanical fine screen, extended aeration basin, two secondary clarifiers, ultraviolet disinfection and post aeration structure with emergency effluent pumps, blower and electrical building, modifications to the existing aerobic digesters, installation of a back-up generator, miscellaneous piping and electrical modifications, and site work at the wastewater treatment facilities.  In the collection system, sewer service will be extended to the Orchard Hill and Coffey Hill Subdivisions.  Wastewater will be collected and conveyed using septic tank effluent pumps with small diameter force main.  Washington Street, Brown County Inn, and Parkview Pumping Stations will be upgraded including new pumps, controls, flow metering, and back-up power via a new portable generator and any and all related improvements as determined by the Town (the "Project").  

The Bond Ordinance orders and directs that the cost of the improvement project will not exceed $6,500,000, which will be funded by the Town from the proceeds of sewage works revenue bonds issued in an aggregate principal amount not to exceed $3,700,000 (the "Bonds") and from grant funding.  The Bonds will be payable solely from the net revenues of the sewage works and ranking on parity with the 1973 Bonds, 1987 Bonds and 1989 Bonds (each as defined in the Bond Ordinance).  The Bonds will bear interest at a rate not to exceed seven percent (7.0%) per annum (the exact rate to be determined by bidding or through negotiations).  The Bonds will mature annually on January 1 of each year, commencing on the January 1 following the issuance of the Bonds, all as determined by the Clerk-Treasurer, with the advice of the Financial Advisor (as defined in the Bond Ordinance) until the principal is fully paid. 

The Bond Ordinance incorporates by reference the estimated rates and charges of the sewage works of the Town as set forth in a rate ordinance.  The Bond Ordinance further authorized the cost of the Project to be financed by the issuance of bond anticipation notes ("BANs") in an amount not to exceed $3,700,000.  The BANs will bear interest at a rate not to exceed seven (7.0%) per annum to be negotiated with the purchaser.  The BANs will payable from the proceeds of the Bonds.

A copy of plans and specifications for the Project and the Bond Ordinance are available for examination and copying at the office of the ClerkTreasurer at the Town Hall, 200 Commercial Street, Nashville, Indiana during normal business hours.  Objections to this project and the Bonds may be filed in the time and manner provided by IC 36923.

Dated: September 7, 2010

TOWN COUNCIL OF THE TOWN OF NASHVILLE, INDIANA

Sept. 8, 2010     10-253