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HomeMy WebLinkAboutOrd 715 05/17/1960 ""..... ,- ~ ......, \. O~d. 7/~- AN ORDINANCE authorizing and providing for the issue of $118,000 1tlater Revenue Bonds of the Village of Mount Prospect, Cook County, Illinois, for the purpose of defraying the cost of improving the present waterworks system of said Village, prescribing all of the details of said bonds and providing for the cdlection, segregation and disposition of the revenues of the waterworks system of said Village for the purpose of paying the cost of operation and maintenance thereof, providing an adequate depreciation fund therefor, and paying the principal and interest of said Water Revenue Bonds. * * * WHEREAS the Village of Mount Prospect, Cook County, Illinois, is now and has for many years last past been operating and maintaining a municipal waterworks system in and for said Village; and WHEREAS it is deemed advisable, necessary and for the best interest of said Vil~age that improvements be constructed to said existing municipal waterworks system, such improvements to consist of the drilling and developing of an additional deep well to serve as an additional source of water supply and including all pumps, controls, wiring, valves, connecting mains and appurtenances incident thereto, all in accordance with the detailed plans and specifications therefor heretofore approved by the President and Board of Trustees of the said Village of Mount Prospect and now on file in the office of the Village Clerk f~r public inspection; and WHEREAS the total estimated cost (including bond discount) of such improvements as prepared by the Village Engineers is the sum of One Hundred Eighteen Thousand Dollars ($118,000); and VJHEREAS in order to :c"aise the funds required to construct said improvements to said municipal waterworks system, it will be necessary that the Village borrow the sum of One Hundred Eighteen Thousand Dollars ($118,000) and in evidence thereof issue its Water " .~.....J""'. . U. .1 ~_~........."o...~.,......" \, I"~ r \, Revenue Bonds in the principal amount of One Hundred Eighteen II Thousand Dollars ($118,000), said Water Revenue Bonds to be payablel II solely and only out of the earnings to be derived from the operati,or II I' II of the municipal waterworks system; and I :,', 8" II WHEREAS under the provisions of Article 7 of An Act concerning cities, villages and incorporated towns, and to repeal II certain acts herein named," effective January 1, 1942, and all laws I' II il II amendatory thereof and supplemental thereto, said Village is authorized to issue water revenue bonds for the purpose of paying WHEREAS the Village of Mount Prospect has heretofore I I i I , I i ofl I the cost of such improvements; and Ii pursuant to an ordinance duly adopted by the President and Board t II , I II I i Trustees of said Village on the 1st day of November, 1944, issued and sold its Water Revenue Bonds dated August 1, 1944, in the aggregate amount of $27,000, of which said Water Revenue Bonds, I $20,000 thereof being presently outstanding; and under the terms of! I said ordinance, it was covenanted that additional water revenue bonds would not be issued unless the revenues derived from the ,I waterworks system for the fiscal year then next preceding were ~ sufficient to pay all costs of operation and maintenance, provide I I an adequate depreciation fund and leave a balance equal to at least lone hundred five per cent (105%) of (a) the principal and interest I II requirements for such year on all bonds then outstanding, payable II ~ from the revenues of the waterworks system, (b) one year's interest Ii on the total issue of such additional bonds then proposed to be I[ issued, and (c) an amount of principal of such additional bonds II computed by dividing the total amount of such issue by the number I, !I Ii of years from the date of issue to the final maturity date of such I' :1 additionall~::A~s:::; v:::age of Mount Prospect has heretofore, I " I ii pursuant to an ordinance duly adopted by the President and Board ofl -2- " ~ ~ r- ...; '.. ......... ....,. .......~ Trustees of said Village on the 8th day of February, 1949, issued and sold its additional Water Revenue Bonds, dated January 1, 1949, in the aggregate amount of $50,000, of which said Water Revenue ,I I I I II : II Bonds, $36,000 thereof being presently outstanding; and under the terms of said ordinance, it was covenanted that additional water revenue bonds would not be issued unless the revenues derived from the waterworks system for the fiscal year then next preceding were sufficient to pay all costs of operation and maintenance, provide 1 an adequate depreciation fund and leave a balance equal to at least one hundred ten per cent (110%) of (a) the principal and interest 1.1 requirements fur such year on all bonds then outstanding, payable I from the revenues of the waterworks system, (b) one year's interest' II i( on the total issue of such additional bonds then proposed to be issued, and (c) an amount of principal of such additional bonds computed by dividing the total amount of such issue by the number of years from the date of issue to the final maturity date of such additional bond issue; and WHEREAS the Village of Mount Prospect has heretofore, pursuant to an ordinance duly adopted by the President and Board of Trustees of said Village on the 11th day of August, 1953, issued and sold its additional Water Revenue Bonds, dated August 1, 1953, in the aggregate amount of $lL~O,OOO, of which said Water Revenue Bonds, $67,000 thereof being presently outstanding; and under the terms of said ordinance it was covenanted that additional water revenue bonds would not be issued unless the revenues derived from the waterworks system for the fiscal year then next preceding were sufficient to pay all costs of operation and maintenance, provide an adequate depreciation fund and leave a balance equal to at least one hundred ten per cent (110%) of the aggregate of (a) the I principal and interest requirements for such year on all bonds then , I outstanding, payable from the revenues of the waterworks system, -3- I i ~ ~ ~ . 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""..*' i i I (b) one year's interest on the total issue of such additional bondsl I ,i then proposed to be issued, and (c) an amount of principal of such I I additional bonds computed by dividing the total amount of such iSSUr by the number of years from the date of issue to the final maturitYI date of such additional bond issue; and WHEREAS the Village of Mount Prospect has heretofore, pursuant to an ordinance duly adopted by the President and Board orl Trustees of said Village on April 5, 1955 and subsequently amended :1 I I by ordinance adopted on July 5, 1955, issued and sold its additiona Water Revenue Bonds, dated April 1, 1955, in the aggregate amount I of $370,000, of which said Water Revenue Bonds, $360,000 thereof il II !I II are presently outstanding; and under the terms of said ordinance, as amended, it was covenanted that additional water revenue bonds to share ratably and equally in the earnings of the waterworks system would be issued only if it was shown by the earnings of said system for the fiscal year then next preceding that the revenues derived from such system were sufficient to pay the cost of operati n and maintenance, and sufficient to provide certain minimum annual deposits required for the Reserve Bond Account and for the Depreci- 'I ation and Contingencies Account, respectively, as required by said ordinance adopted on April 5, 1955 and as further amended by ordinance adopted on July 5, 1955, and to leave a balance equal to one hundred ten per cent (110%) of the aggregate of (a) the principal and interest requirements for such year on the bonds then outstanding, (b) one year's interest on the total issue of such additional bonds then proposed to be issued, and (c) an amount of principal of such additional bonds computed by dividing the total amount of such issue by the number of years from the date of issue to the final maturity date of such additional bond issue; and WHEREAS the earnings of the municipal waterworks system of said Village of Mount Prospect for the last fiscal year ending -4- - Ij " """".''''"''' ........ ,", '- II II July 31, 1959 have been examined by the President and Board of II Trustees of said Village and said President and Board of Trustees Ii have heretofore found and do hereby find and determine that the i I revenues of said waterworks system for the last fiscal year ending ! July 31, 1959 are of such an amount that additional water revenue 'I bonds of the Village in the amount of $118,000 may be issued within I the provisions of the restrictive covenants contained in said I ordinances adopted November 1, 1944, February 8, 1949, August 11, ,I i 1953 and April 5, 1955 and as subsequently amended on July 5, 1955, I I all as hereinabove referred to, such additional water revenue bonds1 I, when issued, to share ratably and equally in the revenues to be I !derived from the operation of said waterworks system with the I revenue bonds of said Village now outstanding which are payable bot I II as to principal thereof and interest thereon solely and only from II the revenues of said waterworks system; I NOW, THEREFORE, Be It Ordained by the President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois I I as follows: I II Section 1. That the President and Board of Trustees have II heretofore caused to be made an estimate of the cost of constructin II necessary improvements to the existing municipal waterworks system of said Village of Mount Prospect as described in the preamble of I II this ordinance, and all in accordance with the plans and specifica- I tions therefor heretofore prepared and approved by this President and Board of Trustees and now on file in the office of the Village Clerk for public inspection, and have heretofore estimated and do hereby estimate that the total estimated cost (including bond I discount) of the construction of said improvements is the sum of 1$118,000. I Ii I I hereby determine the period of usefulness of said waterworks system Section 2. That the President and Board of Trustees do and the improvements to be made thereto to be forty years. ~- -5- " ~~ .- ........ c """ .....,." , Section 1. That to pay the cost of constructing such I improvements to the existing waterworks system it will require the i II issuance of $118,000 Water Revenue Bonds bearing interest at the II rate of four and one-quarter per eent (4 1/4%) per ~nnum. II Section 4. That for the purpose of defraying the cost ofl improving the present municipally owned waterworks system of the said Village of Mount Prospect as hereinabove described in the II preamble of this ordinance, there be issued and sold water revenue I bonds of said Village, to be designated "Water Revenue Bonds,1I in II the prine ipa1 amount of $118, 000, whi eh bonds shall bear date of I May 1, 1960, be numbered consecutively from 1 to 118, inclusive, be I of the denomination of $1,000 each, bear interest at the rate of I four and one-quarter per cent (4 1/4%) per annum, payable on November 1, 1960 and semi-annually thereafter on the first days of May and November in each year and become due serially $8,000 on May 1, 1961, $5,000 on May 1 of each of the years 1962 to 1977, inclusive, and $10,000 on May 1 of each of the years 1978 to 1980, inclusive; provided, however, that of said bonds, bonds numbered -IlL to 118 , inclusive, maturing on May 1 of each of the years 19~to 1980, inclusive, shall be subject to redemption prior to their maturity, at the option of the Village, at par and accrued interest to date of redemption, on any interest payment date on or I after May 1, 19:m., in the inverse order in which they are numbered; 1,1 that is to say, bond number 118 shall first be redeemed before bond numbered 117 is redeemed, and so on, continuing such priority of redemption as to all said bonds subject to redemption prior to maturity~ Written notice of its option to redeem any or all of said bonds in accordance with their terms shall be given by the Village to the holder of each such bond called for redemption, if known, by registered mail at least thirty days prior to the date ofl I I redemption, or if the holders of any such bonds are unknown then -6- " I I __J. r"'....; ~ '~ ........ '.... notice shall be published once at least thirty days prior to the I date of redemption in one newspaper published and of general I I I I I I II I I I I I il i' II II (i circulation in the City of Chicago~ Illinois~ and upon such notice having been mailed to the holder~ if known~ or by publication if unknown~ all such bonds called for payment and redemption shall cease to bear interest from and after such date of redemption. Section 5. Eoth principal and interest of said water revenue bonds shall be payable in lawful money of the United States of America at the Harris Trust and Savings Bank~ in the City of Chicago~ Illinois. Said bonds shall be signed b;y the President of the Village~ sealed with the corporate seal of said Village, and \1 attested by the Village Clerk~ and the interest coupons attached to I I I I I said bonds shall be executed by the facsimile signatures of said President and said Village Clerk, and said officials~ by the execu- tion of said bonds~ shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. I bonds~ together with interest thereon~ shall be 'I from the revenues derived from the waterworks system Said payable solely I of said Village and such bonds shall not in any event constitute an Ii il I indebtedness of the Village of Mount Prospect within the meaning of any constitutional or statutory limitation. 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 reverse side of the bonds by the Village Treasurer~ and thereafter the principal of such registered bonds shall be payable only to the registered holder, his legal representatives or assigns_ Such registered bohds shall be transferable to the registered holder or back to bearer only upon I presentation to the Village Treasurer~ with a legal assignment dulyl -7- "" .1 .PI.'I"......:"""'_ri"'''_.~."'.,. - /""'. -. c ,- ~ acknowledged or approved. Registration of any of such bonds shall not affect the negotiability of the coupons thereto attached~ but such coupons shall be transferable by delivery merely. Section 6. That said bonds and coupons shall be in substantially the following form: (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK VILLAGE OF MOUNT PROSPECT WATER REVENUE BOND Number $ KNOW ALL MEN BY THESE PRESENTS that the Village of Mount Prospect~ Cook County~ Illinois~ for value received~ hereby promise to pay to. bearer~ or if this bond be registered~ as hereinafter provided~ then to the registered holder hereof~ solely from the water fund of the Village of Mount Prospect~ as hereinafter mentioned and not otherwise the sum of Dollars ($ ), in lawful mone of the United States of America~ on the first day of May~ 19__~ together with interest thereon from the date hereof until paid~ at the rate of four and one-quarter per cent (4 1/4%) per annum~ payable on November l~ 1960 and semi-annually thereafter on the first days of May and November in each year upon presentation and surrender of the annexed interest coupons as they severally become due. Both principal of and interest upon this bond are hereby made payable at the Harris Trust and Savings Bank, in the City of Chicago~ Illinois. This bond is payable solely from the revenues derived from the operation of the waterworks system of said Village and not otherwise~ and is issued under authority of Article 78 of an Act of the General Assembly of the State of Illinois~ entitled, "An Act -8- " , 'Mil"'"':" r- ,~ ...", -..#' I concerning cities, villages and incorporated towns, and to repeal certain Acts herein named," effective January 1, 1942, and all laws amendatory thereof and supplemental thereto, for the purpose of paying the cost of constructing improvements to the existing municipal waterworks system of the Village of Mount Prospect, and this bond does not constitute an indebtedness of said Village Withih any constitutional or statutory limitation. Said Village covenants that it will fix and maintain such rates for water service and collect and account for revenues from said waterworks system sufficient to promptly pay principal of and interest on this bond as the same becomes due. This bond is one of an authorized issue of One Hundred II Eighteen Thousand Dollars ($118,000), numbered 1 to 118, inclusive, II I I I I' I I I II II II II I I I I I I, :1 I I of the denomination of One Thousand Dollars ($1,000) each, due serially $8,000 on May 1, 1961, $5,000 on May 1 of each of the years 1962 to 1977, inclusive, and $10,000 on May 1 of each of the years 1978 to 1980, inclusive, all of said bonds being of like date, tenor and effect except as to number, maturity and redemption privilege, and of said bonds, bonds numbered ~ to 118, inclusive,1 maturing on May 1 of each of the years l~ to 1980, inclusive, are subject to redemption and payment, at the option of the Village, prior to their maturity, at par and accrued interest to date of redemption, on May 1, 19Ii or on any interest payment date there- after, in the inverse order in which they are numbered. That is to say, bond numbered 118 shall first be called for redemption and payment made or provided for before bond numbered 117 is called fori redemption, and so on, continuing such prioritJT of redemption as to all bonds so subject to redemption and payment prior to their maturity. Written notice of its option to redeem any or all of said bonds which by their terms are subject to redemption and payment -9- I I I "..~~~.~ ,I '" .__.~--- ~ "-....,, ;""'" 1....,"'" - -' prior to their maturity shall be given by the Village to the holder of each such bond called for redemption~ if such holder is known~ by registered mail at least thirty days prior to the date of redemption~ or if the holders of any such bonds are unknown then such notice shall be published once at least thirty days prior to the date of redemption in one newspaper published and of general circulation in the City of Chicago~ Illinois~ and upon such bonds being so called for redemption and payment being made or provided for~ all interest maturing on any of such bonds so called for redemption shall cease from and after such redemption date. Under said Act and the ordinance adopted pursuant thereto the revenues from the operation of the municipal waterworks system shall be deposited in a separate fund designated as the "Water Fund II of said Village which shall be used only in paying the cost of II Ii operation and maintenance of such system, providing an adequate :1 Ii depreciation fund, and paying the principal of and interest on the I i ~ II bonds of such Village that are issued under authority of said Act II II and are payable by their terms only from the revenue of such II II !I waterworks system~ and to maintain the accounts provided for in and II II by the ordinance adopted authorizing the issue of this bond and the II serie s of which it forms a part. I' It is hereby certified and recited that all acts, II conditions and things required to be done precedent to and in the 'I II I, issuance of this bond have been done and have happened and have i ii Ii been performed in regular and due form of law~ and that provision I, !I has been made for depositing in said water fund sufficient revenues I' ,I II received from the operation of said waterworks system to be applied II in the manner as hereinabove set forth, and said Village hereby !I covenants and agrees that it will fix and maintain rates for the II use and service of said waterworks system and collect and account I I i -10- il I, il II II II '" I! ""'.......-"~""""""""!'<"'.--..,..-. ...11 .~ ~\" - -, .... .' ~'" i I i for revenues from said waterworks system sufficient at all times tol Ii !I pay the cost of maintenance and operation of said system, to provid Ii an adequate depreciation fund, to promptly pay principal of and 'I interest on all bonds issued by said Village which by their terms I are payable solely from the revenues of said waterworks system, and II to comply with all the covenants of and to establish, maintain and II continue the several accounts referred to and described in the ordinance heretofore adopted and pursuant to which this bond and the series of which it forms a part were issued. This bond may be registered as to principal only in the name of the holder on the books of said Village in the office of the Village Treasurer, such registration to be evidenced by notatio of said Village Treasurer on the back hereof, after which no ~ transfer hereof shall be valid unless made on said books and Ii II il II n II II !I II i! II II II II Ii II 'I ,I II similarly noted hereon, but it may be discharged from such regis- tration 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 this bond to be signed by the President of said Village, its corporate seal to be hereto affixed, 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 facsimile signatures appearing on said coupons, and this bond to be dated as of the first day of May, 1960. ATTEST: President, Village of Mount Prospect, Cook County, Illinois. Village Clerk, Village of Mount Prospect, Cook County, Illinois. -11- '" "..... "-",,-,,,-,,-~~,-,,,,,,,~,,,,, ._".,..,~-"."",,"" lI. _1 t ..'1: .r~ ~ '" o c r"'", - .' ~ (Form of Coupon) l Number Ii I! I! II lithe bond to which this coupon is attached has been called for payme t Ii Ilprior to said date as therein provided for and payment made or I'provided for)J the Village of Mount ProspectJ Cook CountYJ IllinoisJ $ On the first day of J 19_J *(unless will pay to bearer Dollars ($ ) in lawful money of the United States of America out of the Water Fund of said Village at the Harris Trust and Savings ,Bank in the City of ChicagoJ IllinoisJ being interest then due on its Water Revenue Bond dated May IJ 1960J Number . I I I ATTEST: lVillage ClerkJ I ProspectJ Cook PresidentJ Village of Mount ProspectJ Cook CountYJ Illinois. Village of Mount CountYJ Illinois. I I Date of I Registration (Form for Registration as to Principal) In Who se Name Registered Signature of IJilla e Treasure I II II Ii I I I Revenue *(the clause within the parenthesis appearing in the form of interest coupon shall be inserted in all coupons attached to bonds numbered 74 to IlSJ inclusiveJ representing interest maturing after the optional date of the bond to which it is attached.) Section 7. That upon the issuance of any of the Water Bonds herein provided forJ the entire municipal waterworks system of said Village of Mount Prospect shall be operated on a fiscal year basis commencing the first day of August and ending the -12- '" .1""""'. , ........ "*"" last day of July of each year, and all of the revenues from any source whatsoever derived from the operation of said waterworks system shall be set aside as collected and be deposited in a separate fund which is hereby created to be designated as the "Waterl Fund of the Village of Mount Prospect,1I which shall be used only in paying the reasonable cost of operating and maintaining said system, providing an adequate depreciation fund, paying the principal of and interest upon the revenue bonds of said Village issued and outstanding which by their terms are payable from the revenues of the waterworks system, and for the establishment, maintenance and continuation of the respective accounts hereina~ter described in Section 8 of this ordinance and which said several accounts as so referred to and described shall be continued until all the bonds authorized to be issued under the terms of this ordinance and the interest thereon shall have been paid in full or provisidn made for i: the payment thereof. H Ij II Ii i' Section 8. That the separate accounts of said _"Water i i I, Fund of the Village of Mount Prospect" as such accounts were created II and established in the ordinance heretofore adopted on April 5, Ii Ii 1955 and as subsequently amended on Ju:}.y 5, 1955, and authorizing Ii the issuance of the Water Revenue Bonds of the Village dated 'I I April 1, 1955 and referred to in the premable hereof, such accounts i being designated severalJ:y 1I0peration and Maintenance Account," 1!IIDepreciation and Contingencies Account," IIBond and Interest lill Sinking Fund Account,1l IIReserve Bond Account,lI and itSurplus Account II .1 11'1 be and the same shall be maintained and continued until all the Ii II bonds authorized to be issued under the terms of this ordinance and the interest thereon shall have been paid in full or until I provision has been made for the payment thereof and into which I Ii ! said accounts there shall be credited on the first business day of i I I i II II Ii ..".""__l~._,,,,,....,,,.;____~!IJ~__ . -13- '" - __"""",,rn~"'-r'-""~' ."......-',.'w.f"-"''if'''~'''--"' ~ ".-.." _.~" r . ~,., ~ .......,; i' Ii each month all moneys held in the Water Fund of the Vill~ge of II Mount Prospect, in accordance with the following provisions:' I I (a) There shall be credited to the Operation and Maintenance Account on the first business day of each month, an amount sufficient to pay the reasonable expenses of operation and maintenance and repair of the said waterworks system for the next succeeding month, including, without limiting the generality of the foregoing, salaries, wages, cost of mate~ials, supplies, purchase of power for pumping and insurance. (b) There shall next be credited to the Depreciation and Contingencies Account, in addition to the require- ments for a depreciation reserve as specified in those certain ordinances heretofore adopted on November I, 1944, and February 8, 1949 and August II, 1953 authorizing the bonds hereinabove described in the preambles hereto, and in addition to the amounts required to be credited to said Account under the terms of the ordinance heretofore adopted on April 5, 1955 and as subsequently amended by ordinance adopted on July 5, 1955 and authorizing the issuance of the Water Revenue Bonds of the Village dated April I, 1955, referred to in the preambles hereof, the sum of $100 each month until such account aggregates the sum of $59,000, such amount to be inclusive of but not in addition to the aggregate sum of $36,000 previously required to be credited to said account under the terms of said ordinance adopted on April 5, 1955 and as subsequently amended on July 5, 1955, above referred to, and thereafter no payments shall be made into said Depreciation and Contingencies Account except that whenever any money is paid out of said account payments into said account shall be resumed monthly and continued until such time as the account has again been restored to the aggregate amount of $50,000. The moneys in said account shall be used to pay the cost of necessary repairs or replacements to the system, for the payment of which no other funds are available, except that the funds held in said Depreciation and Contingencies Account to the extent necessary to prevent or remedy a default in the payment of the interest on or principal of all bonds heretofore issued and now outstanding which by their terms are payable from the revenues to be derived from the operation of the waterworks system of the Village, the interest on or principal of the bonds herein authorized and including the interest on or prin- cipal of all bonds which may be hereafter issued by the Village and which are payable from the revenues to be derived from the operation of the waterworks systam of the Village and which said bonds shall share ratably and equally in the earnings of the waterworks system with the water revenue bonds of the Village heretofore issued and now outstanding and including the bonds herein authorized to be issued and such Account shall be used and held for use for that purpose and to the ~xtent necessary shall be transferred to the Bond and Interest Sinking Fund Account, and whenever such a -14- ~ ~ r-'...._ >.J"'"'"' ,-""""". "<. ,,,# transfer is made, the amount so transferred shall be added to the next deposit to be made to said Account and such monthly deposits shall be resumed and continued thereafter until full reimbursement to said account has been made. , , " 11 >1 I il I J I I I Ii 'I i I I \ (c) There shall next be credited to the Bond and Interest Sinking Fund Account monthly amounts sufficient to pay promptly all interest and the principal of all bonds heretofore issued and now outstanding and including the interest and the principal requirements of the bonds herein authorized and also including the interest and the principal requirements of all bonds which may hereafter be issued and be on a parity with and share ratably and equally in the earnings to be derived from the operation of the waterworks system with the bonds herein authorized, as the same matures; and it is hereby determined that the minimum amount to be credited into the Bond and Interest Sinking Fund Account in each fiscal year for the bonds authorized pursuant to this ordinance shall be as follows: Fiscal Year Ending Last Day of July Principal and Interest 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 197L~ 1975 1976 1977 1978 1979 $13,015.00 9,675.00 9,462.50 9,250.00 9,037.50 8,825.00 8,612.50 8,400.00 8,187.50 7,975.00 7,762.50 7,550.00 7,337.50 7,125.00 6,912.50 6,700.00 6,487.50 11,275.00 10,850.00 10, L~25 . 00 Any and all sums received from the purchasers of the bonds herein authorized as accrued interest thereon to date of delivery shall also be placed in said Bond and Interest Sinking Fund Account. (d) There shall next be credited to the Reserve Bond Account and in addition to the amounts required to be credited to said Account under the terms of the ordinance heretofore adopted on April 5, 1955 and as subsequently amended by ordinance adopted on July 5, 1955 and authorizing the issuance of the Water Revenue Bonds of the Village dated April 1, 1955, referred to in the preambles hereof, the sum of $100 each month until said account aggregates the sum of $50,000, -15- ~ J ~ --~ 1""""'\ .. / c ~ ......, such amount to be inclusive of but not in addition to the aggregate sum of $40,000 previously required to be credited to said account under the terms of said ordinance adopted on April 5, 1955 and as subsequently amended on July 5, 1955, above referred to, and there- after no payments shall be made into said Reserve Bond Account except that whenever any money is paid out from said account, payments into said account shall be resumed monthly and continued until such time as the account has been restored to the aggregate amount of $50,000. Said account shall be used solely for the purpose of paying principal of and interest on any bonds which by their terms are payable from the revenues of the waterworks system of said Village falling due at any time for the payment of which there is no money available in the Bond and Interest Sinking Fund Account. (e) All moneys remaining in the Water Fund of said Village, after all amounts have been credited to the respective accounts hereinabove required to have been credited, shall be credited to the Surplus Account, and at the end of each fiscal year not less than fifty per cent (50%) of the amount credited to such Surplus Account shall be credited to the Bond and Interest Sinking Fund Account, and all funds so credited to said Bond and Interest Sinking Fund Account shall be used and held for use only for the purpose of calling and redeeming any outstanding bonds of said Village which by their terms are payable from the revenues of the waterworks system of said Village as said bonds become redeemable. I II II I I ! After crediting said Bond and Interest Sinking Fund Account at the end of each fiscal year with the minimum amounts herein provided for, the balance of said funds in sa.id Surplus Account may be used or accumulated for the repair, improvement, enlargement or extension of the waterworks system of said Village, or the redemption of bonds of said Village which by their terms are payable from the revenues of the waterworks system, or for any other proper corporate purpose; provided, however, this subparagraph shall not be construed to prohibit the Village from ordering and directing that all funds in said Surplus Account or any portion in excess of fifty per cent (50%) be credited to the Bond and Interest Sinking Fund Account. (f) The moneys to the credit of the accounts created by subparagraphs (b) and (d) hereinabove set forth in this section, may by resolution adopted by the President and Board of Trustees of said Village be invested from time to time in direct obligations of the United States Government maturing in not more than ten (10) years after the purchase date thereof, and be sold from time to time pursuant to a resolution of the President and Board of Trustees as funds may be needed for the purpose for which the accounts have been created. All accrued interest in any funds so invested shall be credited to the accounts for which the investments were made. -16- w IHn !- . "T "' > _ 1 ",- c""' " ~ Section 9. It is hereby covenanted and agreed that the revenues of the waterworks system are to be credited to the various special accounts hereinabove described in the order in which said accounts have been listed, and if within any period of time the revenues are insufficient to place the required amounts in any of said accounts, the deficiencies shall be made up the following period, or periods after payments into all accounts enjoying a prior claim of revenues have been made in full. Section 10. That the Village of Mount Prospect hereby agrees in the amounts which are usually carried on similar properties, I I i including without limiting the generality of the foregoing, fire, I I. il windstorm insurance, public liability, and any additional insurance 'I Ii covering such risks as shall be recommended by a competent I, independent enginee~ employed for the purpose of making such I recommendations, and all moneys received for losses under such I insurance policies shall be deposited in the Depreciation and ,I Contingencies Account and be used in making good the loss or damage I in respect of which they were paid either by repairing the property I damaged or replacing the property destroyed, and provision for I making good such loss or damage 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 II 'I considered a maintenance and operation expense. The proceeds of any and all policies for public liability shall be paid into the Maintenance and Operation Account and used in paying the claims on account of which they were received. Section 11. The Village of Mount Prospect covenants and agrees that as long as any of the bonds herein authorized remain outstanding proper books and records and accounts will be kept by -17- I II . ~ """~""i...,.,...,._."~.~."y".^,..t",..~",,,.......,,-~ A.-= ".....". ...."'^ '" the Village of Mount Prospect separate and apart from all other records and accounts, showing correct and complete entries of all ii Ii transactions of the waterworks system, and that the holders of any ,I i' II :1 I i II 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, accounts and audit relating thereto, and to inspect the system and all property comprising the system. Said Village further covenants and agrees that it will within sixty day following the close of each fiscal year cause an audit of such books and accounts to be made by an independent firm of certified public accountants, showing the receipts and disbursements for and on account of the system. A copy of said audit shall be mailed to the original purchaser of the bonds herein authorized and such audit shall be made available for inspection by all other holders of any of the bonds. Each such audit, in addition to whatever i I matters may be thought proper by the accountant to be included II II I I therein, shall without limiting the generality of the foregoing, the following: I (a) A statement in detail of the income and expenditureJ of the system for such fiscal year, i include (b) (c) (d) (e) A balance sheet as of the end of such fiscal year, The accountant's comment regarding the method in which the Village has carried out the requirements of this ordinance, and the accountant's recommenda- tions for any changes or improvements in the operation of the system, A list of all the insurance pOlicies in force at the end of tbe 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 policy, and I The number of properties connected with the waterworks system at the end of the year, the number of meters in operation at the end of the year, and the number of unmetered water customers at the end of the year. All expense incurred in the making of the audit required by this section shall be regarded and paid as a maintenance and -18- ~ ""_. ........,-...'11~'''_'.%., ~..';'I'""'.~.,".~"'I'...,...,.,..,.'._.""'_f,~"..'......"~ ~ ~. c . ' I! il operating expense, and it is further covenanted and agreed that a il copy of each such audit shall be furnished to the holder of any of :1 the bonds at his request, and any holder of a bond or bonds author- il il ized under this ordinance shall have the right to discuss with the i accountant making the audit the contents of the audit and to request any additional information that may reasonably be required. Section 12. It is hereby covenanted and agreed that while any of the Water Revenue Bonds issued under the provisions of this ordinance are outstanding, additional Water Revenue Bonds to share ratably and equally in the earnings of said waterworks system shall be issued only if it is shown by the earnings of said , I waterworks system for the fiscal year then next preceding that the i II II il !I II Ii tj ;I revenues derived from such waterworks system were sufficient to pay the cost of operation and maintenance, and sufficient to provide the minimum annual deposits required for the Reserve Bond Account and for the Depreciation and Contingencies Account, respectively, ; as hereinabove specified in Section 8 hereof, and leave a balance i I i I I I !I II II II Ii Ii q !I II Ii II II II :1 II II I I i II II II 11 II !\ II equal to One Hundred Ten per cent (110%) of the aggregate of (a) the principal and interest requirements for such year on the bonds then outstanding, (b) one year's interest on the total issue of such additional bonds then proposed to be issued, and (c) an amount of principal of such additional bonds computed by dividing the tota amount of such issue by the number of years from the date of issue to the final maturity date of such additional bond issue. The Village reserves the right to issue bonds to refund all or a part of the bonds hereby authorized (with the consent of the holders thereof unless the bonds to be refunded are subject to redemption and provision for call and redemption thereof is duly made) and any refunding bonds so issued shall share ratably and equally in the revenues of said waterworks system and the pledge thereof under this ordinance with the portion of the bonds hereby -19- ~ I k~-~<:iiTll1~ ",~,"_..""..~t"-'1'-t'.~."i"t"""'-~.,_.. 1""". ~, c authorized which are not refunded; provided, however, that if only I a portion of said outstanding bonds are to be refunded at any time, such obligations shall not be refunded bearing interest at a rate greater than the interest rate provided by this ordinance, or maturing at a date earlier than the final maturity of such bonds not refunded. Section 13. While the bonds authorized hereunder or any of them remain outstanding or unpaid, rates charged for services shall be sufficient at all times to pay cost of operation and I maintenance, to maintain, establish and provide the accounts I II I, II il II il !I Ii il II II ;1 I I II \1 II 'I !I II ,I II Ii I I' referred to and described hereinabove in Section 8 of this ordinance, to pay the interest on and principal of all bonds which by their terms are payable from the revenues of said waterworks system, and to carry out the covenants of this ordinance. And there shall be charged against all users such rates and amounts for service as shall be adequate to meet the requirements of this section. Section 14. Any holder of a bond or bonds or any of the coupons of any bond or bonds issued hereunder may either in law or equity, by suit, action, mandamus or other proceedings, enforce or compel performance of all duties required by this ordinance, including the making and collecting of sufficient rates for service and segregating the revenues of said system and the application thereof to the respective accounts referred to and described here- inabove in Section 8 of this ordinance, and it hereby covenants and agrees not to sell, lease, loan, mortgage or in any manner dispose I I I I I I I of said waterworks system, including any and all extensions and improvements that may be made thereto (provided the covenant in I this section shall not prevent the said Village from disposing of I I I I Ii I I I I . any property which in the judgment of the President and Board of Trustees is no longer useful or profitable in the operation of said -20- '" {,..,....", ~ c - """,.' system and the proceeds from the sales of any such property is paid into the Bond and Interest Sinking Fund Account referred to and described hereinabove in Section 8 of this ordinance until all of the bonds herein authorized to be issued shall have been paid in full, both principal and interest, or unless and until provision shall have been made for the payment of all such bonds and interest " II thereon in fullj and the Village further covenants and agrees with II the holders of said bonds to maintain in good condition and I II continuously operate said waterworks system. I II Section 15. That as soon after this ordinance becomes I :1 effective as may be, said bonds shall be executed as herein prOVidet II and be deposited with the Treasurer of said Village and be by said II I ! . il Treasurer dellvered to the purchaser thereof, namely, Mullaney, II Wells & Company, of the City of Chicago, Illinois, upon receipt of II the purchase price therefor, namely, the sum of $115,880 plus II accrued interest on said bonds from the date thereof up to and including the date of delivery of said bonds, and such price being such that the interest cost to the Village for the money received does not exceed six per cent (6%) per annum according to standard tables of bond values, all in accordance with the contract of sale heretofore entered into, which said contract of sale be and the same is hereby in all respects ratified, approved and confirmed. Section 16. Provisions of this ordinance shall constitut a contract between the Village of Mount Prospect and the holders of the bonds herein authorized to be issued 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 payment of all bonds and interest thereon in full. Section 17. If any section, paragraph, clause or . provision of this ordinance shall be held invalid, the invalidity -21- '" ~ "...1 , _ .~ ,-.. ,,. of such section, paragraph, clause or provision shall not affect any of the other provisions of this ordinance. Section 18. The proceeds of all bonds hereby authorized exclusive of accrued interest, and except as herein otherwise provided, shall be a Construction Fund, to be applied in carrying out the construction of improvements and betterments and additions tions therefor heretofore approved by this President and Board of all in accordance with the plans and specifica+ I I I I I I herein provided for, Trustees and now on file in the office of the Village Clerk for : public inspection; provided, however, interest accruing on said i ! i ,i construction cost, and to the extent such interest is not paid froml i I I i I i bonds. Costs of surveys, designs, soundings, boring and all other I ,i I II I Ijnecessary and incidental expenses shall be deemed items of I il construction cost. If the President and Board of Trustees shall I II determine at any time that the amount of bond proceeds in the i 'I I II Construction Fund is in excess of the amount necessary to meet I. II! authorized expenditures therefrom during the ensuing six months, i !I it may invest such excess in interest bearing bonds or other direct! II and general obligations of the United States Government, having a I II maturity not more than one year subsequent to the date of such I II I II investment, and all such investments, as well as all income there- I from, shall be carried to the credit of the Construction Fund I ibonds during the construction period may be deemed an item of I i income and revenues it shall be paid from the proceeds of said Account. As and when any such funds are thus needed, the President and Board of Trustees shall cause a sufficient amount of such investment to be sold and converted into cash to the credit of the Construction Fund Account. All accrued interest which may be I II received from the sale of bonds hereby authorized, together with such portion of the proceeds (if any) that the President and Board -22- I I I II " "'-'''"-'~"'''-'~~=''''''",,''''',~-,"'''''.'-'' I. I ~ ",.... 4 .......... -, .... of Trustees determine shall be set aside representing interest during construction as aforesaid shall be transferred into the Water Fund. Section 19. That within ten days after the passage of this ordinance and its approval by the President, the same shall be published once in The Mount Prospect Herald, the same being a newspaper published and of general circulation in said Village, and I I twenty-one days after the publication of this ordinance duly signed I I I I I extending the waterworks system and the issuance of revenue bonds I therefor as provided by this ordinance be submitted to the electorsl I of the Village at an election to be called and held in and for saidl 'II City as provided by law, then this ordinance shall be in full forcel and effect. I I if no petition is filed with the Clerk of said Village within by electors numbering twenty per cent (20%) of the number of electors voting for President at the last preceding general municipal election asking that the question of improving and Adopted May 17 J 1960. I \ II II I APPROVED: ~(d,~ Village P~sident -23- ~ ... ...~ -. ".