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HomeMy WebLinkAboutOrd 2176 08/07/1969 I"" >> OPJ)INJ\NCE NO .J:2/ 7G__ AN 9RDIj'ifAl'-lGE authorizing and providing for the issue of $1,000,000 Waterworks and Sewerage Revenue Bonds, Series 1969, of the Village of Mount Prospect, Cook County, Illinois, for the purpose'of defraying the cost of improving and extending the combined waterworks and sewerage system of said'Village by the acquisition of an exis ting pr i va tely owned Vla tar works and d is- tribution system and an existing privately owned sanitary sewer system, prescribing all the details of said bonds, providing for the col- lection, segregation and distribution of the revenue of the combined waterworks and sewerage system of said Village for the purpose of paying the cost of the operation and mainten- ance thereof, providing an adequate deprecia- tion fund therefor and paying the principal and interest of said Waterworks and Sewerage Rev- enue Bonds I including those V.Ja terworks and Sewerage Revenue Bonds heretofore issued and presently outstanding, and providing for the maintenance and continuation of certain accounts of the Waterworks and Sewerage Fund of the Village. * * * WHEREAS the Village of Mount Prospect, Cook County, Illinois, has heretofore by ordinance provided for the combin- ation of its existing municipally owned watervlOrks sYc::;tem and its ~xisting municipally owned sewerage system into a combined waterworks and sewerage system in accordance with the provisions of Division 139 of Article 11 of the Illinois Municipal Code, approved May 29, 1961, and all laws amendatory thereof and sup- plementary thereto; and W}I1~}_~,~~~_ the Village has heretofo1."e entered into con- tracts with utility Sewer and Water Company, an Illinois corpor- ation, which is presently operating a water works and water dis- tribution system and also a sanitary SSvlsr syst:em within cE,~rtain portions of the Village and also in unincorporated areas adjacent to the Village and situated south and southwesterly of the cor- porate limits of the Village and under the terms of which . -.;" :'-'--,. contracts, it was provided that the said water works and water distribution system and said sanitary sewer system could be acquired by the village from said Company; and WHEREAS, it is hereby deemed necessary and for the best interests of the villag~ that said existing water works and water distribution system and said existing sanitary sewer system, above referred to, be acquired by the Village and con- nected and incorporated into and made a part of its combined waterworks and se\Verage system, and after such properties have been acquired, that a fire flow water meter with check valves and appurtenant facilities be installed on the said waterworks and water distribution system to be so acquired, such existing water works and water distribution system and such existing sanitary sewer system being further described as follows: Existing Water Works and Water Distribution System Consisting of cast iron mains and fittings, gate valves, and valve manholes, hydrant leads and fire hydrants, a 500,000 gal- lon ground level water storage reservoir, a booster pumping station, water pumping equipment, consisting of one 500 gal- lon per minute and one 1000 gallon per minute pumps complete with all automatic controls appurtenant thereto, water chlor- ination equipment and water distribution facilities composed of the following: "- \6 inch cast iron mains - 5.72 miles 8 inch cast iron mains - 6.43 miles 10 inch cast iron mains - 0.05 miles 6 inch cast iron gate valves and manholes 62 each 8 inch cast iron gate valves and manholes 57 each Fire hydrants with valves - 137 each Copper water services including corporation cock, box and cast iron and copper service varying from 3/4 inch to 3 inch (and including appurtenances) - 5.77 miles Water Meters 5/8 1 1-1/2 2 3 inch meters inch meters inch meters inch meters inch meters Total 862 41 4 21 2 930 Existing Sanitary Sewer System Consisting of: -2 -- " .. r-. ~, 6 inch and 8 inch diameter vitrified clay pipe - 6.33 miles 8 inch diameter vitrified clay pipe - 6.39 miles 10 inch diameter vitrified clay pipe - 1.70 miles 12 inch diameter vitrified clay pipe - 1.60 mites 15 inch and 24 inch diameter vitrified clay pipe - 0.08 miles 48 inch diameter manholes - 168 each 36 inch diameter manholes - 17 each Which sanitary sewer collecting system is a gravity system dis- charging into existing interdepting sewer located in Busse Road, of the Metropolitan Sanitary District of Greater Chicago; together with such additional mains, pipes, and appurtenant fac- ilities as may be constructed between the date of this ordinance and the date that the aforesaid water distribution system ~nd sanitary sewer system is acquired, which said additional fac- ilities are such as will be needed to provide water and sewer service to an estimated additional 128 single family dwellings and 239 multiple family dwellings which it is estimated will be constructed in the area served by the aforesaid system prior to acquisition by the Village; and WHEREAS the total estimated cost of improving and extending the combined waterworks and sewerage system of said Village by the acquisition of the existing water works and water distribution system and the existing sanitary sewer system and connecting and incorporating the same into the said combined water works and sewerage system of the Village, as hereinabove referred to, and as prepared by the engineer of said Village employed for such purpose, including the cost of installing a fire flow water meter with check valves and appurtenant facil- \ ities on the water works and water distribution system to be so acquired, and including legal costs, engineering, adminis- trative costs and bond discount, is the sum of $1,000,000; and WHEREAS the Village of Mount Prospect does not have any funds on hand and available for the purpose of improving the combined waterworks and sewerage system by the acquisition of the aforesaid existing water works and water distribution system and the existing sanitary sewer system, connecting and incor- porating the same into the said combined water works and sewerage system of the village, and installing a fire flow water meter with check valves and appurtenant facilities on the said water -3- ~ ...-,. works and water distribution system to be so acquired, alIas above referred to, and for such purpose it will be necessary for the Village to borrow the sum of $1,000,000 and in evidence thereof issue its. Revenue Bonds in the principal amount of $1,000,000 for the purpose of paying the cost of so improving the combined waterworks and sewerage system of said Villagej and WHEREAS pursuant to Ordinance No. 907, heretofore ~dopted on May 14, 1963, the Village of Mount Prospect has here- tofore, in manner and form prescribed by law, issued, sold and there are now outstanding Waterworks and Sewerage Revenue Bonds of said village in the aggregate amount of $1,185,000, which said bonds by their terms are payable, both as to principal and in- terest, solely and only from the revenues to be derived from the operation of the combined waterworks and sewerage system of said Village, such bonds so authorized by said ordinance and presently outstanding and unpaid being described as follows: \ $1,185,000 Waterworks and Sewerage Revenue Bonds dated May 1, 1963, of the denomination of $1,000 each, numbered consecutively from 266 to 1450, inclusive, due $50,000 on May 1 of each of the years 1970 to 1971, inclusive, $55,000 on May 1 of each of the years 1972 and 1973, $60,000 on May 1 of each of the years 1974 to 1976, inclu- sive, $65,000 on May 1 of each of the years 1977 and 1978, $70,000 on May 1 of each of the years 1979 and 1980 and $75,000 on May 1 of each of the years 1981 to 1987, inclusive, bonds maturing on and after May 1, 1975, being redeemable from revenues only on any interest payment date on or after May 1, 1974, and from any monies on any date on and after May I, 1978, said bonds bear- ing interest at varying rates and said bonds being all the bonds now outstanding of a total authorized issue of $1,450,000 waterworks and Sewerage Revenue Bonds, Series 1963, of said Villagej and / WHEREAS under the terms of said Ordinance No. 907, above referred to and adopted on May 14, 1963, and authorizing the issuance of said Waterworks and Sewerage Revenue Bonds above referred to and which are now outstanding, it was provided that -4- additional waterworks and Sewerage Revenue Bonds of said village could be issued on a parity with the bonds th~rein authorized for certain purposes, including the acquisition of additional waterworks or sewerage systems, or any combination thereof, or for the purpose of construct~ng improvements of the system of the Village, provided that the amounts required to be credited to the respective accounts (a) to (d), inclusive, of Section 9 of said ordinance, up to the date of the authorization of such additional bonds, shall have been credited to said resp~ctive accounts and the net revenues of the system for the fiscal year then next pre- ceding have been equal to not less than one.hundred thirty-five per cent (135%) of the maximum combined principal and interest requirements for any succeeding fiscal year during the life of the then outstanding bonds of (i) all bonds then outstanding payable from the revenues to be derived from the operation of the system and (ii) on the additional revenue bonds then proposed to be issued; and WHEREAS the President and Board of Trustees of this Village have caused to be prepared and have examined an audit of the earnings of the combined system for the last preceding fis- ca! year ending on April 30, 1969, and do hereby find and deter- mine that the earnings of said combined system for the last pre- ceding fiscal year were sufficient to comply with the restrictive covenants contained in said ordinance adopted on May 14, 1963, restricting the right to issue additional bonds on a parity with the bonds therein authorized and that the President and Board of Trustees of said Village have the authority at this time to issue the additional Waterworks and Sewerage Revenue Bonds in the ag- gregate principal amount of $1,000,000 and as hereinafter pro- vided for by the provisions of this ordinance, which said addi- tional Waterworks and Sewerage Revenue Bonds, when issued, shall -5- ,,-, be on a parity with and share ratably and equally in the - ',':~" revenues to be derived from the operation of -said combined waterworks and sewerage system with the Waterworks and Sew- erage Revenue Bonds hereinabove referred to and described and which are now outstanding; and WHEREAS it is hereby found to be necessary and for the best interests of the Village and the public health of the inhabitants of said Village, that the combined waterworks and sewerage system be improved by the acquisition of the existing water works and water distribution system and the existing sanitary sewer sys and the connection and incorporation of the same into the combined water works and sewerage system of the Village, and the installation of a fire flow water meter with check valves and appurtenant facilities on the said water works and water distribution system to be so acquired, all as hereinabove referred to and described, and in order to raise the funds required for such purposes, it is necessary that the Village borrow the sum of $1,000,000 and in evidence thereof issue additional Waterworks and Sewerage Revenue Bonds in that amount, such additional Waterworks and Sewerage Revenue Bonds - \ to be on a parity with and to share ratably and equally in the revenues of the con~ined waterworks and sewerage system of the Village with the Waterworks and Sewerage Revenue Bonds now out- standing and referred to and described hereinabove and as were authorized by said Ordinance No. 907 adopted on May 14, 1963; and WHEREAS pursuant to the provisions of Division 139 of Article 11 of the Illinois Municipal Code, approved May 29, 1961, and all laws amendatory thereof and supplementary thereto, this Village is authorized to issue Waterworks and Sewerage Revenue Bonds in an amount sufficient to pay the cost of so -6- improving and extending the combined waterworks and sewerage system and in the manner hereinabove referred'to: NOW, THEREFORE, Be It Ordained by the President and Board of Trustees'of the Village of Mount Prospect, Cook County, Illinois, as follows:' Section 1. That said Village of Mount Prospect has caused an estimate to be made of the cost of improving and extending its combined waterworks and sewerage system by ac- quiring the existing water works and water distribution system and the existing sanitary sewer system owned and operated by the utility Sewer and Water Company, an Illinois corporation, and connecting and incorporating the same into the combined waterworks and sewerage system of the village, and installing a fire flow water meter with check valves and appurtenant fac- ilities on the said water works and water distribution system to be so acquired, all as described in the preambles of this ordinance, and all in accordance with the plans and report of the engineers for said village heretofore approved by the President and Board of Trustees and now on file with the village Clerk for public inspection, and does hereby determine that the estimated total cost thereof, including all legal, engineering, administrative costs and bond discount, is the sum of $1,000,000. Section 2. That the President and Board of Trustees do hereby determine that it is in the best interests of the Village of Mount Prospect that the aforementioned improvements and extensions be made to the combined waterworks and sewerage system by the acquisition of the aforementioned water works and water distribution systern and sanitary sewer system, and the connection and incorporation of the same into the combined -7- water works and sewerage system of the Village, and the installation of a fire flow water meter with check valves and appurtenant.facilities on the said water works and water distribution system to be so acquired, and that there- after said system and the existing systems of the Village of Mount Prospect be operated as a combined waterworks and sewerage system, and hereby do determine the period of use- fulness of said combined waterworks and se~erage system, including the proposed improvements and extensions to be made thereto, to be forty (40) years. Section 3. . That the village of Mount Prospect does not have sufficient funds available -for the purpose of so irrlproving and extending its combined waterworks and sewerage system by the acquisition of the existing water works and water distribution system and the existing sani- tary sewer system, and the connection and incorporation of the same into the combined water works and sewerage system of the Village, and the installation of a fire flow water meter with check valves and appurtenant facilities on the \ said water works and water distribution system to be so acquired, all as referred to and described in the preambles hereof and, for that purpose, it will require the issue by said village of Waterworks and Sewerage Revenue Bonds to the amount of $1,000,000, such bonds to be payable solely and only from the revenues to be derived from the operation of -8- ~.. ~, the combined waterworks and sewerage system of said Village and which said bonds are authorized to be issued under the provisions of Division 139 of Article 11 of the Illinois Municipal Code, approved May 29, 1961, and all laws thereunto enabling. Said bonds shall.be designated "Waterworks and Sewerage Revenue Bonds, Series 1969", shall be in the princi- pal amount of $l,OOO,ooq in the form of negotiable coupon bonds, dated August ~, 1969, numbered 1 and upwards in consecutive order ending with number 200, of $5,000 denomination, and shall be expressed to mature on May 1st in each of the years and amounts as follows: 1971 1972 1973 1974 1975 1976 1977 1978 1979 $25,000 .30,000 40,000 45,000 50,000 60,000 75,000 85,000 95,000 1980 1981 1982 1983 1984 $ 95,000 100,000 100,000 100,000 100,000 Section 4. (A) Said bonds shall bear interest from date thereof until paid at such rate or rates, not ~xceeding Seven per cent (7%) per annum, as shall be speci- 'fied in the resolution providing for the delivery of said bonds as hereinafter provided, and both the principal of and interest on sai.d bonds shall be payable in lavJful money of the Uni.ted States of America at such baru( or trust company as shall be mutually agreeable to the Village and the pur- chaser of said bonds and as shall be specified in the reso- lution to be adopted providing for the delivery of the bonds. (B) The interest on said bonds falling due on and prior to the maturity of said bonds shall be evi- denced by appropriate interest coupons to be attached to -9- said bonds, and such interest shall be payable November I, 1969, and semiannually thereafter on May 1 and November 1 of each year until paid. (C) Said bonds shall be signed by the President and attested by the Village Clerk, with the seal of said Village affixed, and the interest coupons at- tached to said bonds evidencing the rate or rates of interest said bonds will bear shall be executed by the facsimile sig- natures of said President and said Village Clerk, and said officials by the execution of said bonds shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. (D) Said bonds, together with interest thereon, shall be payable solely from the revenues derived from the combined waterworks and sewerage system of said Village in the manner hereinafter described, and such bonds shall not in any event constitute an indebtedness of said Village within the meaning of any constitutional or statutory limitation and shall be coequal as to the pledge of said r'evenues securing the payment thereof and share ratably and / equally without any preference, priority or distinction of one over another as to the source or method of payment and security of said bonds. Section 5. Any of said bonds may be registered as to principal at any time, prior to maturity, in the name of the holder on the books of said Village in the office of the Village Treasurer, such registration to be noted on the back of the bonds by the said Treasurer of said Village, and thereafter the principal of such registered bonds shall be payable only to the registered holder, his legal representa- -10- /~, tives or assignso Such registered bonds shall be trans- ferable to another registered holder or back to bearer only upon presentation to the Treasurer, with a legal assignment duly acknowledged or approved. Registration of any such bonds shall no.t affect negotiability of the coupons thereto attached, but such coupons shall be transferable by delivery merely. Section 6. That the form of said bonds shall be substantially as follows with appropriate omissions and insertions to give effect to differences of maturity dates, rates of interest, name of paying agent, number and recitals: (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK VILLAGE OF MOUNT PROSPECT WATERWORKS AND SE"lNERAGE REVENUE BOND I SERIES 1969 $5,000 KNOW ALL MEN BY THESE PRESENTS, that the Village Qf Mount Prospect, Cook County, Illinois, for value received, 'hereby promises to pay to bearer, or if this bond be registered, as hereinafter provided, then to the registered holder hereof, solely from the Waterworks and Sewerage Fund of the Village of Mount Prospect, as hereinafter mentioned and not otherwise, the sum of Five Thousand Dollars ($5,000) on May I, 19 together with interest on said sum from date hereof until paid at the rate of per cent (___%) per annum, payable November I, 1969, and semi-annually thereafter on the first days of May and November in each year and until the maturity hereof upon presentation Number -11- ,/",., ,and surrender of the annexed interest coupons as they sever- ally become due. Both principal of and interest on this bond are hereby made payable in lawful money of the United States of America at This bond is one of an authorized issue of $1,000,000 in principal amount, issued to provide funds for paying the cost of improving and extending the combined waterworks and sewerage system of said Village by the acquisition of an existing water works and water distribution system and an existing sanitary sewer system presently being operated in the southern and south- westerly portions of said Village and in unlncorporated terri- tory situated southerly and southwesterly of the corporate limits of said Village, and the connection and incorporation of the same into the combined water works and sewerage system of the Village, and the installation of a fire flow water meter with check valves and appurtenant facilities on the said water works and water dis- tribution system to be so acquired, all as provided by the Con- stitution and laws of the St~te of Illinois, including Division 139 of Article 11 of the Illinois Municipal Code, approved May \ 29, 1961, and all other laws amendatory thereof or supplementary / thereto, all as more fully described in that certain Ordinance adopted by the Board of Trustees of the Village of Mount Prospect on the day of , 1969, authorizing the issuance of said bonds and this bond and the issue of which it forms a part, does not constitute an indebtedness of said Village within any constitutional or statutory limitation. This bond and all other bonds of said total authorized issue of $1,000,000 are payable solely as to principal and interest from the revenues to be derived by said Village from the operation of said combined waterworks and sewerage system of said Village and are coequal as to the pledge of said -12- revenues securing the payment thereof and share ratably and equally without any preference, priority or-distinction of one over another, as to the source or method of payment and secu- rity of said bonds, and for a more complete statement of the revenues from which ana conditions under which this bond and interest hereon are payable and a statement of the conditions on which obligations may hereafter be issued on a parity here- with and the general covenants and provisions pursuant to which this bond is issued, reference is hereby made to said Ordinance adopted , 1969. Under said Code and Ordinance adopted pursuant thereto, the revenues from the operation of the combined water- works and sewerage system shall be deposited in a separate fund designated as the "Waterworks and Sewerage Fund of the Village of Mount Prospect", which shall be used only in paying the cost of operation and maintenance of such combined system, providing an adequate depreciation allowance, and paying the principal of and interest on the bonds of said Village that are issued under authority of said Code and are payable by th~ir terms only from the revenue of the combined waterworks and sewerage system and making all payments required to main- tain the accounts as referred to and described in the provi- sions of the Ordinance pursuant to which this bond is issued. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in issuance of this bond have been done and have happened and have been performed in regular and due form of law, and that provision has been made for depositing ~n said Water- works and Sewerage Fund the revenues received from the operation of said combined waterworks and sewerage system -13- ~ .~ to be applied in the manner as hereinabove set forthi and it i.s hereby covenanted and agreed that rates will be charged for the use and service of such combined waterworks and sewer- age system sufficient at all times to pay the cost of operation and maintenance of said system, provide an adequate deprecia- tion allowance, and pay the principal of and interest upon all bonds issued by said Village, which are payable solely fFom the revenues of said combined system, and to make all payments required to maintain the accounts referred to and described in the provisions of the Ordinance pursuant to which this bond and the series of which it forms a part is issued. This bond may be registered as ,to principal in the name of the holder on the books of said Village in the office of the Treasurer of said Village, such registration to be evidenced by notation of said Treasurer upon the back thereof, after which no transfer hereof shall be valid unless made on said books and similarly noted hereon, but it may be dis- charged from such registration by being transferred to bearer, after which it shall be transferable by delivery, but it may be, again registered as before. The registration of this bond shall not restrict the negotiability of the coupons by delivery merely. IN WITNESS WHEREOF, said Village of Mount Prospect, Cook County, Illinois, by its President and Board of Trustees, has caused its corporate seal to be hereunto affixed and this bond to be signed by its President, and attested by the Village Clerk, and the coupons hereto attached to be signed by the facsimile signatures of said President and said Village Clerk, which officials, by the execution of this bond do adopt as and for their own proper signatures their respective -14- /""~ facsimile signatures appearing on said couponsl and this bond to be dated as of the first day.of August 1 I 196 9 0 ~residentl Village of Mount Prospect, Cook County, Illinois Attest: Village Clerk (Form of Coupon) Number $ On the first day of . " 19_1 the Village of Mount Prospect, Cook County, Illinoisl will pay to bearer out of the Waterworks and Sewerage Fund of said Village ______ Dollars ($ ) in lawful money of the United States of America at , being interest then due on its Waterworks and Sewerage Revenue BondI Series 19691 dated August 1-, 19691 number \ President, Village of Mount Prospec.t I Cook County I Illinois Village Clerk (Form of Registration Certificate) Date In Whose Name Re9ist~red Village TreaS1JXeJ: -15- section 7. For the purpose of this Ordinance, the following words, terms and phrases shall have the fol- lowing meanings: (A) Village of Mount Prospect is herein- after design.ated the "Vill<:tge". (B) The governing body of said Village is hereinafter designated the "President and Board of Trustees" 0 (c) The word "system" shall include all of the properties and facilities of the combined waterworks and sewerage system of said Village presen-tly existing and now being acquired whether lying within or without the bound- aries of said Village, as now existing or under construction and as tney may hereafter be improved or extended while any of the bonds heretofore issued and now outstanding or any of the bonds herein authorized or additional bonds herein per- mitted to be issued on a parity therewith remain outstandingi including all improvements, additions and extensions thereto or replacements thereof hereafter constructed or acquired by . p~rchase, contract or otherwisei and all contracts, rights, agreements, leases and franchises of every na-ture owned by said Village and used or useful or held for use in the opera- tion of the system or any part or portion thereofo (D) The word "revenues" shall mean gross revenues and shall include all receipts received directly or indirectly from the initial and continued use and operation of the system. (E) The term "net revenues" shall mean that portion of the revenues received from the continued use and operation of the system remaining after providing suffi- -16- .~ cient funds for the reasonable and necessary cost of mainte- nance and operation of the system as defined in Section 7(F) hereof, and prior to any provisions for depreciation or pay- ment of principal or interest. (F) T,he phrase .lIcost of maintenance and operationll shall mean all costs reasonably incurred in con- nection with continued operation, use and maintenance of the system, other than capital improvements, necessary to keep the system in efficient and economical operating condition, including the paYment of premiums for insurance hereinafter required to be carried on the system and generally all ex- penses (exclusive of depreciation) which under good accounting practice are properly chargeable to and are reasonable and necessary to the efficient maintenance and operation of the system, and shall not include any transfer in lieu of taxes or general supervision or administration charges by the Village. (G) The term "fiscal year" shall mean the period commencing May 1 and ending the last day of April of each succeeding calendar year and said system shall be operated, a~d all revenues shall be accounted for, on said fiscal year basis. (H) The word "bonds" shall mean and in- clude all the bonds heretofore issued under the provisions of Ordinance No. 907, adopted on May 14, 196 3 , which may be out- standing and unpaid and shall mean and include each of the bonds in the principal amount of $1,000,000 authorized under the terms of this Ordinance. (I) The phrase "parity bonds" shall mean such bonds as may hereaf-ter be issued on a parity with the $18500,000 principal amount of bonds herein authorized and as -17- ~ ---\ such bonds may hereafter be issued under the provisions of Section 10 of this Ordinanceo (J) The words "connection charge" shall mean any fee paid for connecting users of the combined water- works and sewerage system to said systemo Section 8. That the net revenues of the combined waterworks and sewerage system are hereby pledged to the pay- ment of the principal of and the interest on the bonds and the parity bonds, and the bonds and the parity bonds shall be secured by a prior and paramount pledge of the net revenues. All of the bonds and parity bonds shall be equally and ratably secured by said pledge without priority of one over the other by reason of date of sale or delivery or Series designation or purpose or otherwiseo Section 9. So long as any of the bonds or parity bonds remain outstanding, all of the revenues shall from day to day as collected be deposited in a bank account separate and apart from all other Village bank accounts, and shall thereafter be accounted for in a separate accounting fund, which shall be known as the "Waterworks and Sewerage Fund of ?the Village of Mount Prospect" (sometimes hereinafter referred to as the "Revenue Fund") 0 All monies and investments therein shall be used solely for maintaining the following accounts, which accounts were heretofore created and established by Ordinance No. 907, adopted on May 14, 1963, and which ordinance authorized the issuance of the Waterworks and Sewerage Revenue Bonds, Series 1963, of the Village which are outstanding as of the date of the passag'e of this Ordinance, and which said several accounts as hereinafter referred to and described shall be continuously maintained until such time as all the -18- ~. bonds heretofore issued and outstanding and as her~in author- ized shall have been paid in full, both principal thereof and interest thereon, or until provision has been made jor the payment thereof and to which such several accounts there shall be credited as of the first business day of each month, except as otherwise hereinafter provided, all such revenues so deposited in said Revenue Fund, in accordance with the following priority: (a) There shall be credited to the Operation and Main- tenance Account as of the first business day of each month an amount sufficient to pay the reason- able and necessary cost of maintenance and opera- tion of said system under economical management for the next succeeding month, including, without limiting the generality of the foregoing, salaries, wages, costs of materials, supplies, insurance and power, and including one-twelfth of all such expenses paid on an annualized basis. (b) Beginning August I, 1969, there shall be credited each month to the Bond and Interest Account an amount equal to not less than one-fifth of the interest becoming due on all bonds and parity bonds on the next succeeding interest payment date; and.beginning on May I, 1970 an amount equal to not less than one-tenth of the principal becoming due on the next succeeding May 1 of all bonds and parity bonds, until there shall have been accumu- lated in said Account on or before thirty days preceding each such current maturity date of principal or interest, or both, an amount sufficient to pay such principal or interest, or both, of all bonds and parity bonds maturing by their terms on such current maturity date. \. From and after the issuance of any of the bonds hereby authorized, and upon receipt of the purchase prlce therefor, there shall be credited to the Bond and Interest Account all accrued interest derived from the sale of said bonds. All monies in said Account shall be used only for the purpose of paying interest on and principal of the bonds and pari.ty bonds of said Village.. Funds sufficient to pay interest or principal, or both, of said bonds, together with -19- ,~ /~ fiscal agency fees, shall be transmitted to the payment agent not less than fifteen days prior to each current maturity date of either principal or interest, or both, provided that all fiscal agency fees shall be paid from the Operation and Maintenance Account. '., (c) Beginning the first day of the month following delivery of these Series 1969 Bonds, there shall be credited to the Bond Reserve Account monthly installments of $1700 in each fiscal year, while any of the bonds are outstanding, such amount to be inclusive of and $ 8,400 in addition to the annual amount required to be credited to said Account under the provisions of Ordinance No. 907, adopted May 14, 1963, referred to herein- above in the preamble hereof. The monies in said Account shall be used only to pay principal of or interest on the bonds and parity bonds of said Village when there are insufficient funds available at any time to pay such principal or interest from any other source; provided, how-- ever, whenever the balance in said Account equals the maximum principal and interest requirements on all bonds and parity bonds for any fiscal year, any surplus over and above said maximum amount shall be used for the retirement of the bonds and parity bonds that are subject to redemption prior to maturity; provided, if none of said bonds are subject to redemption prior to maturity or will not become subject to redemption prior to maturity within the next sixty (60) days, then the Village Treasurer shall request tenders for the purchase of said bonds, if available, in the open market. The President and Board of Trustees may direct the acceptance of bonds which, in its opinion, are at the lowest tendered price to the advantage of the Village but shall reserve the right to reject any and all tenders. No tender or purchase at more than the par value and unpaid accrued interest on any of said bonds shall be considered. All such bonds purchased or redeemed shall be cancelled. / (d) Beginning the first day of the month following delivery of these Series 1969 Bonds, there shall be credited to the Depreciation, Improvement and Exten- sion Account monthly installments of $ 2550 for the fiscal years ending April 30, 1970 through April 30, 1973, and the monthly sum of $ 3400 in each fiscal year thereaf-ter, such amounts being inclusive of the annual amounts required to be credited to said Account under the provisions of Ordinance No. 907, adopted May 14, 1963, referred to hereinabove in the pr"eamble hereof and $12,600 in addition to the annual amount required for each of the fiscal years ending April 30, 1973, and $ 16,800 in addition to the annual amount required for each fiscal year thereafter. The -20- monies in said Account shall be used first to provide an adequate allowance for depreciation as shall be determined from time to time by the President and Board of Trustees, which allowance shall be used from time to time to pay for any extraordinary maintenance, repairs and necessary replacements, or for improvement or extension of the system. Said funds shall be used at any time to pay principal of or interest upon any revenue bonds outstanding whenever there are no other funds available to pay the samej provided, however, that from and after such time as said account aggregates the sum of $100,000, any sums in excess thereof may be transferred to the Bond Reserve Account or to the Surplus Revenue Account at the discretion of the President and Board of Trustees. (e) In the event that in any month, there are insuffi- cient monies in the Revenue Fund to make the re- quired monthly credits to any of the foregoing accounts (a) I (b),. (c) or (d), then the amount of such deficiency shall be added to the requirements for the succeeding month and made up in the priority in which said funds are herein listed. (f) All revenues deposited in the Waterworks and Sewer- age Fund bank account after crediting the required amounts to the respective accounts herein provided fori shall, at the end of each fiscal yearj be credited to the Surplus Revenue Account and the amount so credited shall be held and used for the purposes and in the priority hereinafter mentioned, to-wit: '\ \ (1) For making up any deficiency necessary to credit accounts (a) to (d)1 inclusivej with the required amounts therefor for each fiscal year as hereinabove provided. (2) If, after complying with the requirements of sUbparagraph (1) hereofl there remains a balance in the Surplus Revenue Account, it may be transferred out of said account at the discretion of the President and Board of Trustees and used for any lawful purpose, including an annual transfer for general administra-tion of the combined system equal to 10% of the annual gross revenues, or such other percentage as may be established from time to time by the President and Board of Trustees. (g) Monies remaining in any of the Accounts hereinabove createdl may by resolution of the President and Board of Trustees be invested from time to time but only in direct obligati.ons of the United Sta-tes Govern- ment, maturing not later than the earliest date on which it is estimated the monies in said Accounts -21- will be needed, but in no event later than two years from the date of such investment. Such securities shall be sold from time to time without further authority of the President and Board of Trustees as monies may be needed for the purpose for which said Accounts have been created. All accrued interest on any monies so invested, or any gain or loss on any such investment, shall be credited to the Account for which the investment was made. All uninvested money on hand shall be deposited in banks selected as depositaries by the President and Board of Trustees from time to time so as to be available when neededo Such bank ac- counts shall be separate from all other Village Accounts provided that all money in the Waterworks and Sewerage Fund may be deposited in a single bank account, except money in Accounts (b) and (c) thereof, which shall be deposited in one or more separate bank accounts. Section 10. It is hereby covenanted and agreed that while any of the bonds issued hereunder are outstanding, the Village will not issue any other bonds or obligations of any kind or nature having a pledge on the revenues of the systelTI which is prior to the lien on such revenues of the bonds herein authorized. (A) Said Village reserves the right to issue at one time, or from time to time, as shall be found necessary and for the best interest of said Village by the President anp Board of Trustees, additional bonds on a parity with the bonds authorized hereunder for the purpose of constructing improvements, replacements and extensions of the system of the Village, or for the acquisition of additional waterworks or sewerage systems or any combination thereof or for the purpose of refunding any of the Waterworks and Sewerage Revenue Bonds of the Village, or for any combination of such purposes, but only provided the Village shall have complied with the following requirements: (a) The amounts required to have been credited to the respective Accounts (a) to (d), in- clusive, of Section 9 of this Ordinance up -22- (b) \ \ (B) ~. to the date of authorization of said ad- ditional bonds shall have been credited to said respective Accounts. The net revenues of the system for the fiscal year then next preceding or the average ad- .justed net revenues of the system for the two then next preceding fiscal years, if such revenues are adjusted as herein provided, have been equal to not less than one hundred thirty-five per cent (135%) of the maximum combined principal and interest requirements for any succeeding fiscal year during the life of the then outsta.l1ding bonds, of {i} all' bonds then outstanding payable from the revenues to be derived from the operation of the system and (ii) on the additional revenue bonds then proposed to be issued. Net revenues for the purpose of this subparagraph (b) shall mean the gross revenues of the system less the actual costs of operation and maintenance before making provision for-depreciation or other Accounts as required by this Ordinance for such fiscal year or years and shall be evidenced by audit of an independent certified public accountant. Principal and interest re- quirements shall include principal and interest due May 1 as a requirement of the fiscal year ending April 30 immediately preceding such May 1 maturities. In the event there shall have been a change in the rates of the system from the rates in effect for either of the two immedi- ately preceding fiscal years, which change is in effect at the time of the issuance of any such additional bonds, then the net revenues as provided in this subparagraph (b) shall be adjusted to reflect the net revenues of the system for each of the two immediately pre- ceding fiscal years as they would have been had said then existing rates been in effect during all of each of said years. Any such adjusted net revenues shall be evidenced by the certificate of an independent consulting engineer employed for that purpose, which certificate shall be approved by the President and Board of Trustees prior to issuance of the additional bond and filed with the Village Clerk upon its approval 0 The Village also reserves the right to issue additional bonds on a parity with the bonds authorized here- under for the purpose of acquiring the sanitary relief sewer system in portions of the Village of Mount Prospect presently -23- ~ owned and operated by the Metropolitan Sanitary District of Greater Chicago, and for the purpose of refunding any bonds of said District which may be ol...ltstanding and having a lien on the revenues thereof. In the event of the issuance purpose or of parity bonds for such/purposes, the Village shall employ an independent consulting engineer to examine the reports of operation of such sanitary relief sewer system for each of the two immediately preceding fiscal years, and such engineer shall report as to the amount of revenue and expense which would have been attributable to said system for each of said fiscal years had said system been owned and operated by the Village of Mount Prospect, and should the Village then estab- lish new rates for such sewer service, the actual revenues shall be adjusted for such purposes to reflect the revenues of the system as they would have been had such rates been in effect for all"of each of said fiscal years. Said adjusted net revenues shall be added to the net revenues of the existing combined waterworks and sewerage system of the Village of Mount Prospect for the purpose of making the computations required to be made under subparagraph (b) of paragraph (A) of this Section, and any such additional bonds to be issued for the purposes outlined in this paragraph (B) shall be thus subject to the restrictions of the aforementioned subparagraph (b) of paragraph (A). (C) Notwithstanding the foregoing provisions the Village reserves the further right to issue bonds to refund any of these bonds or bonds on a parity therewith provided they are issued to refund bonds due within three months of the date of refunding and for the paYment of which no other funds are or will be available at the maturity thereof. -24- " (D) Any additional bonds issued as parity bonds shall be on an equal basis in all respects with the bonds herein authorized, shall share ratably and equally in the reve- nues of said system, and shall mature as to principal on May I, and as to interest on May 1 and November 1. Section 11. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain outstanding and unpaid, either as to principal or interest, that rates charged for the use and services of the system shall be sufficient at all times Jco pay aLl, cos.ts of operation and maintenance, to provide and maintain the Accounts herein- above referred to and described in Section 9 of this Ordinance, to pay the interest on and principal of all bonds which by their terms are payable from the revenues of said system and have heretofore been issued and are presently outstanding as of the date of passage of this Ordinance, to pay interest on and principal of all bonds which by their terms are payable from the revenues of said system that are authorized to be i;sued under the terms of this Ordinance and including all 7 bonds hereafter issued and on a parity with the bonds herein authorized, and to carry out the covenants of this Ordinance. There shall be charged against all users of said system, including the Village, such rates and amounts for water and sewer services as shall be adequate to meet the requirements of this Ordinancei provided the Village need not charge itself for water and sewer services so long as the revenues of the system are otherwise adequate to meet all the requirements of this Ordinance 0 To the extent permi toted by law said Village further covenants not to grant any competing franchise for -25- ~. .~ the operation of a waterworks system or a sanitary sewerage system or any combination thereof in said Village. Sec.tion 12. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as.the bonds or any of them remain outstanding and unpaid, either as to principal or interest, that any holder of a bond or bonds issued hereunder, or of any of the coupons representing interest accrued thereon may, either in law or in equity, by suit, action, mandamus or other proceeding~ enforce or compel performance by the officials of said Village of all duties required by law and by this Ordi- nance, including the making and collecting of sufficient rates for water and sewer services and segregating the revenues of said system and the application thereof to the respective Accounts hereinabove referred to and described in Section 9 of this Ordinance and in the time and manner as herein provided. section 13. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain oD;tstanding and unpaid, either as to principal or interest, to carry insurance on the system of the kinds and in the a~ounts which are usually carried by operators of similar properties including, without limiting the generality of the foregoing, fire, windstorm, public liability, and all monies received for losses under such insurance policies shall be deposited in the Revenue Fund and thereafter credited to the Depreciation, Improvement and Extension Account and be used in making good the loss or damage in respect of which they were paid either by repairing the property damaged or replacing the property destroyed, and provision for making good such loss or damage -26- ,-, '" shall be made within ninety days from date of the loss. The payment of premiums for all insurance policies required under the provisions of this Section shall be considered a maintenance and operation expense. Any proceeds received by the Village from policies covering public liability shall be paid into the Revenue Fund and thereafter credited to the Operation and Maintenance Account and be used in paying the claims on account of which they were received. Section 14. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the "bonds or any of them remain out- standing and unpaid, either as to principal or interest, that proper books and records and accounts will be kept and main- tained by said Village separate and apart from all other records and accounts of said Village showing correct and com- plete entries of all transactions relating to the system, and that the holders of any of said bonds or any duly authorized agent or agents of such holders shall have the right at any and all reasonable times to inspect the records, accqunts and audit report relating thereto, and to inspect the system and, all property comprising the system.," Said Village further covenants and agrees that i.t wi.ll within not more than ninety days following the close of each fiscal year cause an audit of such books and accounts to be made by an independent public accountant, and that such audit report will be available for inspection by the holders of any of the bonds. Each such audit report in addition to whatever matters may be thought proper by the accountant to be included therein, shall without limiting the generality of the foregoing, include the following: -27- ., (a) A statement in detail of the revenues and costs of operation and maintenance of the system for such fiscal year, and including credits to the various accounts provided hereunder. (b) The accountant's comment regarding the compliance by the Village with the accoun-ting requirements of this Ordinance, and the accountant's recommendations for any changes or improvements, of the manner in which such records are kept. (c) A list of all the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the poli6y. (d) The number of sewer customers served by the system at the end of the year, the number of metered water customers at the end of the year and the quantity of water pumped. All expense incurred in the ma~ing of the audit re- quired by this Section shall be regarded and paid as a main- tenance and operation expense, and it is further covenanted and agreed that a summary of such audit report shall be furnished to the holder of any of the bonds at his request. Statements of revenues and expenses of the system shall be furnished by the person in charge thereof to the President and Board of Trustees at least quarterly and copies of the s~me shall be mailed to the original purchaser of the bonds / authorized by this Ordinance and shall be furnished to any bondholder upon request. A copy of each such annual audit report shall be mailed promptly upon completion to the original purchaser of the bonds authorized by this Ordi- nance, and such original purchaser of said bonds herein authorized shall have the right to discuss with the accountant making the audit the contents of the audit report and to ask for any reasonable explanation of the contents thereof. -28- ,-,. .~ , , Section 15. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain outstanding and unpaid, either as to principal or interest, that it will punctually perform all duties with reference to said system required by the Constitution and laws of the State of Illinois, including the making and collecting of sufficient rates for water and sewerage service, segregating the revenues of said system and the application thereof to the respective Accounts created by this Ordinance, and it hereby covenants and agrees not to sell, lease, loan, mortggge, encumber or in any manner dispose of said system, including any and all ex- tensions and improvements that may be made thereto, except as in this Ordinance recited (provided, however, that the covenant in this- Section shall not prevent the said Village from.dis- posing of any property which in the judgment of the President and Board of Trustees is no longer useful or profitable in the operation of said system nor essential to the continued operation of said system without a reduction in the revenues '. to' be derived therefrom and the proceeds from the sale of any such property is credited to the Depreciation, Improvement and Replacement Account hereinabove referred to in Section 9 of this Ordinance), and that the Village shall take no action in relation to said system which would unfavorably affect the security of the bonds herein authorized or the prompt paYment of the principal of and interest thereon, until all of the bonds herein authorized to be issued shall have been paid in full, both principal and interest, or unless and until pro- vision shall have been made for the payment of all such bonds and interest thereon in full; and the Village fur-ther covenants and agrees with the holders of said bonds to maintain in good -29- ~ -- ,- . condition and continously operate said system. Section 16. That the provisions of this Ordi- nance shall constitute a contract between the Village and the holders of the bonds herein authorized to be issued, and after the issuance of said bonds, no changes, additions or alterations or any kind shall be made therein, except as hereinbefore provided, until such time as all of said bonds issued hereunder and the interest thereon shall be paid in full or unless and until provision shall have been made for the.paYffient of all such bonds and interest thereon in full. Section 17. That as soon after this Ordinance becomes effective as may be, the Series 1969 Bonds herein authorized shall be sold by the President and Board of Trustees of said Village in such manner as it may here- after determine and an award of the sale of said bonds shall be made to the acceptable bidder upon the basis of the lowest interest cost to the Village, provided, that the price for the total authorized issue shall be such that the interest cost to the Village for the money received by the Village from the sale of such bonds shall \. not exceed seven per cent (7%) annually computed to maturity according to standard tables of bond values and in the event of a discount, then at such a price as to produce for the Village not less than ninety eight per- cent (98%) of the par value of said bonds. If the acceptable bidder offers to purchase any of said bonds bearing interest at a lower rate or rates than herein provided, then the President and Board of Trustees shall adopt a resolution fixing the interest rate or rates on such bonds in accordance with the terms of the acceptable offer to purchase the same and directing the officers of the Village to execute and deliver said bonds to such purchaser bearing interest at -30- .. Ii' - ,..-" ... such lesser rate or rates so specified by the acceptable bidder, and at the price designated in said acceptable bide and also by resolution shall designate the bank to act as the paying agent for all of said Series 1969 bondso Section 18. That the proceeds derived from the sale of said bonds, exclusive of accrued interest, shall be by the Treasurer segregated into the IIAcquisition and Con- struction li'und Account of the Village of Mount Prospect II , which is hereby created, which proceeds shall be kept separate and apart from all other monies of the Village and deposited in one or more qualified banks or trust companies in the State of lllinois, which shall be designated from .time to time by the President and Board of Trustees as depositaries for monies of said Acquisition and Construction Fund Account. Said monies shall be held and used solely to acquire the water distribution system and the sanitary sewer system herein pro- vided for the the aforesaid improvements to the said system proposed to be acquired, as provided for by this Ordinance, and shall be held for the benefit of the Village for the pur- p~ses herein provided and for the benefit of the holder or holders of the bonds hereby authorized as their interest may appear. The cost of legal, engineering and financial services and all costs incidental to acquisition of the systems and issuance of the bonds shall be deemed costs of acquisition and constructiono Said monies shall be withdrawn from said de- positary from time to time by the Treasurer of the Village only upon submission to him of the following: (A) A duplicate copy of the order signed by the President and Village Clerk, or such other officers that may from time., to time by law be authorized to sign or countersign orders on the Treasurer of the Village, stating -31- .' Of , ~, .. - , specifically the purpose for which the order is issued; and indicating that the payment for which the order is issued has been approved by the President and Board of Trustees of said Village; (B) In the case of the acquisition tif the existing water works and distribution system and the existing sanitary sewer system owned and oper~ ated by the utility Sewer and Water Company, an Illinois corporation, and which said systems are proposed' to be acquired as improvements and extensions of the combined waterworks and sewer- age system, a duplicate copy of the order signed by the President and Village Clerk stating the purpose of the order and indicating that the pay- ment has been authorized by the President and Board of Trustees of the Village; (C) Each order drawn for payment to a contractor or contractors for work done in connection with the construction of any improvements and extensions shall be accompanied by a certificate executed by the engineers in charge of the construction thereof, stating the nature 'of the work completed and the amount due and pay~ble thereon. Within sixty days after the acquisition of the water distribution system and the sanitary sewer system, and the con- nection and incorporation of the same into the combined water works and sewerage system of the Village, and the installation of a fire flow water meter with check valves and appurtenant fac- ilities on the said water works and water distribution system to be so acquired, any surplus remaining in said Acquisition and, Construction Fund Account shall be transferred to the De- pteciation, Improvement and Extension Account. From the proceeds derived from the sale of the bonds, the sum received as accrued interest on said bonds shall be credited to the Bond and Interest Account. The monies credited to the Acquisition and Construc- tion Fund account may be invested from time to time in direct obligations of the united States of America having a maturity not later than the date or dates wh~n such funds will be needed, such date or dates to be determined from time to time by the President and Board of Trustees, and any such invest- ments shall be promptly sold without further authority of -32- "I' ~ .. ..- ~ .. --- ~ .. the President and Board of Trustees whenever necessary to provide money to carry out the purposes fqr which such Account was created~ Secli.Qn 19. If any section, paragraph, clause or provision of this-Ordirance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. Section 20. Ordinance No. 2000 of the Village, passed and approved April 29, 1967, be and it is hereby repealed and all other ordinances, resolutions or orders, '~..:" or parts thereof in conflict with the provisions of this Ordinance are to the extent of such conflict hereby re- pealed. Section 21. This Ordinance after its passage by the President and Board of Trustees shall be published once in the Prospect Day, a newspaper published in and having a general circula-tion in the Vi llage of Mount Pros- pect, and shall be effective in the manner, form and time as provided by law. PASSED this 1 day of A (; cr1J 5, , 1969, by the following roll call vote: AYES: 6 NAYS: Q ABSENT: 0' It Jl APPROVED this Z-- day of tZ~~" 19.69. ~~& - Village President tJ?. Recorded in the Village Records this 2 day of , 1969. -33-