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HomeMy WebLinkAboutOrd 435 04/05/1955 \ . I Ordt.nance No~ 4-35 AN ORDINANCE authorizing and provid- ing for the issue of $370,000 Water Revenue Bonds of the Village of Mount Prospect, Cook County, Illinois, for the purpos'e of defraying the cost of improving and extending the present waterworks system of said Village, prescribing all of the details of said bonds and providing for the collection, 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 depre- ciation fund, therefor, and paying the principal and interest of said Water ~nue BQBds. _______ *v * * * * * * * WHEREA~, 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 in- terest of said Village that improvements and ext'enslons be constructed to said existing municipal waterworks system, such improvements and ex- tensions to consist of the construction of a steel reservoir and found- ation, booster pump station including I - 1400 G.P.M., I - 1000 G.P.M., and 1 - 750 G.P.M., pump, chlorinator and building, all on the property owned by the Village and located at Highland Avenue and Emmerson Street; and an elevated storage tank of 750,000 gallons capacity at a height of 125 feet on a site owned by the Village and located at 203 East Evergreen street; including all needful and necessary pipes, valves, fittings and appurtenances, 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 for public inspection; and WHEREA2, the total estimated cost of such improvements and ex- tensions as prepared by the Village Engineers is the sum of Three Hundred Seventy Thousand Dollars ($370,000.00); and -1- -------- j-- WHEREAS, in order to raise the funds required to construct said improvements and extensions to said municipal waterworks system, it will be necessary that the Village borrow the sum of Three Hundred i::leventy Thousand Dollars ($370,000.00) and in evidence thereof issue its Water Revenue Bonds in the principal amount of Three Hundred Seventy Thousand Dollars C$370,OOO.00}, said Water Revenue Bonds to be PGWable solely and only out of the earnings to be derived from the operation of the mu- nicipal waterworks system; and WHEREAS, under the provisions of Article 78 of "An Act concern- ing cities, villages and incorporated towns, and to repeal certain acts herein named,tT effective January 1, 1942, and all laws amendatory there- of and supplemental thereto, said Village is authorized to issue water revenue bonds for the purpose of paying the cost of such improvements and extensions; 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 1st day of November, 1944, issued and sold its Water Revenue Bonds dated August 1, 1944, in the aggregate amount of $27,000.00, of which said Water Revenue Bonds, $25,000.00 being pre- sently outstanding; and under the terms of said ordinance, it was co- venanted 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 main- tenance, provide an adequate depreciation fund and leave a balance equal to at least one hundred five per cen t (105%) of (a) the principal and interest requirements for such year on all bonds then outstanding, pay- able from the revenues of the waterworks system, (b) one year's inte- rest on the total issue of such additional bonds then proposed to be is- sued, 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 -2- WHERE!2, 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 ~th day of February, 1949, issued and sold its ad- ditional Water Revenue Bonds, dated January 1, 1949, in the aggregate amount of $50,000.00, of which said Water Revenue Bonds, $44,000.00 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 operationd maintenance, provide an adequate depreciation fund and leave a balance , equal to at least one hundred ten per cent (110%) of (a) the principal and interest requirements or such year on all bonds then outstanding, payable from the revenues of the waterworks system, (b) one year's in- terest 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 maturi~ 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 ad- ditional Water Rev'enue Bonds, dated August 1, 1953, in t;he aggregate amount of $140,000.00, all of said Water Revenue Bonds being presently outstanding; and under the terms of said ardinance it was covenanted that additional water revenue bonds would not be issued unless the re- venues 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 (a) the principal and interest requirements for such year on all bonds then outstanding, payable from the revenues of the waterworks system, (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 -3- 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 July 31, 1954 have been examined by the President and Board of Trustees have heretofore found and do hereby find and determine that the revenues of said waterworks system for the fiscal year ending July 31, 1954 are of such an amount that additional water revenue bonds of the Village in the amount of $370,000 may be issued within the provisions of the re- strictive covenants contained in said ordinances adopted November 1, 1944, February 8, 1949 and August 11, 1953 hereinabove referred to, such additional water revenue bonds to share ratably and equally in the revenues to be derived from the operation of said waterworks ~stem with the revenue bonds of said Village now outstanding which are pay- able both as to principal thereof and interest thereon solely and only from the revenues of said waterworks system; NOW, THEREFO~, Be It Ordained by the president and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, as follows: Section 1. That the President and Board of Trustees have here- ..4>- tofore caused to be made an estimate of the cost of constructing necessary improvements and extensions to the existing municipal water- works system of said Village of Mount Prospect as described in the preamble of this Ordinance, and all in accordance with the plans and specifications therefor heretofore prepared and approved by this Pre- sident 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 of the construction of said improvements and extensions is the sum of $370,000.00. Section 2. That the President and Board of Trustees do hereby determine the period of usefulness of said waterworks ~stem and the improvements and extensions to be made thereto to be forty years. Section 3. That to pay the cost of constructing such improve- ments and extensions to the existing waterworks system it will require -4- -f- - the issuance of $370,000 Water Revenue Bonds bearing interest at the rate of three and one-quarter per cent (3!) per annum. Section 4. That for the purpose of defraying the cost of improv- ing and extending the present municipally owned waterworks system of said Village of Mount Prospect as hereinabove described in the preamble of this ordinance, there be issued and sold water revenue bonds of said Village, to be designated "Water Revenue Bonds," in the principal amount of $370,000.00, which bonds shall bear date of April 1, 1955, be numbered consecutively from 1 to 370, inclusive, be of the denomi- nation of $1,000.00 each, bearing interest at the rate of three and one-quarter per cent (3!), payable on October 1, 1955 and semi-annually thereafter on the first days of April and October in each year and be- come due serially, in numerical or~er $5,000 on October 1 of each of the years 1958 to 1960, inclusive, $10,000 on October 1, 1961, $15,000 on October 1 of each of the years 1962 to 1966, inclusive, $20,000 on October 1 of each of the years 1967 to 1970, inclusive, $30,000 on October 1, 1971, $35,000 on October 1 of each of the years 1972 and 1973, $30,000 on October 1, 1974, $20,000 on October 1, 1975, and $10,000 on October 1 of each of the years 1976 to 1979, inclusive; provided, however, that said bonds numbered 181 to 370, inclusive, maturing October 1 of each of the years 1971 to 1979, inclusive, shall be subject to redemption prior to their maturity, at the option of the Village, at par and accrued interest on any interest payment date on or after October 1, 1970, in the inverse order in which they are num- bered; that is to say, bond number 370 shall first be redeemed before bond numbered 369 is redeemed, and so on, continuing such priority of redemption as to all said bonds subject to redemption prior to matu- rity. Written notice of its option to redeem any or all of said bones in accordance with their terms shall be given by the Village to the holder of each such bond called for redemption, if known, by register- ed mail at least thirty days prior to the date of redemption, or if the holders of any such bonds are unknown then notice shall be publish- ed once at least thirty days prior to the date of redemption in one newspaper published and of general circulation in the City of Chicago, -5- 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. .e!ctio~ 5. Both principal and interest of said water revenue bonds shall be payable in lawful money of the United states of America at such bank or trust company in the City of Chicago, Illinois, as may hereafter be agreed upon between the Village and the purchaser. · Said bonds shall be signed by the President of the Village, sealed with the corporate seal of said Village, and attested by the Village Clerk, and the interest coupons attached to said bonds shall be ex- ecuted by the facsimile signatures 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 sig- natures appearing on said coupons. Said bonds, together with interest thereon, shall be payable solely from the revenues derived from the waterworks system of said Village and such bonds shall not in any event constitute an 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 bonds shall be transferable to the registered holder or back to bearer only upon presentation to the Village Treasurer, with a legal assignment duly 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: -6- (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK VILLAGE OF MOUNT PROSPECT WATER REVENUE BOND NUMBER $ KNOW ~ ~ ~ THESE PRESENTS that the Village of 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 water fund of the Village of Mount prospect, as hereinafter mentioned and not otherwise, the sum of Dollars ($ ), in lawful money of the United States of America, on the first day of October, 19___, together with interest thereon from the date hereof un- til paid, at the rate of ____ per cent ( %) per annum, payable October 1, 1955 and semi-annually thereafter on the fU'st day s of April and October in each year upon presentation and sur- render of the annexed interest coupons as they severally become due. Both principal of and interest upon this bond are hereb,( made payable at , 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 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 and extensions to the existing municipal waterworks system of the Village of Mount Prospect, and this bond does not constitute an indebtedness of said Village within any con- stitutional or statutory limitation. Said Village covenants that it wIll fix and maintain such rates for water service and collect and ac- -7- . count 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 Three Hundred Seventy Thousand Dollars ($370,000.00), numbered 1 to 370, inclusive, of the denomination of One Thousand Dollars ($1,000.00) each, all of like date, tenor and effect except as to number, maturity and redemption privilege. Bonds numbered 181 to 370, inclusive, maturing on October 1 of each of the years 1971 to 1979, inclusive, are redeemable at the option of the Village, prior to maturity, at par and accrued interest, on October 1, 1970 or on any interest pqyment date thereafter in the inverse order in which they are numbered. That is to day, bond numbered 370 shall first be redeemed before bond numbered 369 is redeemed, and so on, continuing such priority of redemption as to all bonds so re- deemable. 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 of redemption, or if the holders of any such bonds are unknown then hotice shall be published once at least thirty days prior to the date of redemption in one news- paper published and of general circulation in the City of Chicago, Illinois, an d 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. 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" of said Village which shall be used only inpaying the cost of operation and , maintenance of such system, providing an adequate depreciation fund, and paying the principal of and interest on the bonds of such Village that are issued under authority of said Act and are payable by their terms only from the revenue of such waterworks system, and to maintain the accounts provided for in and ~ the ordinance adopted authorizing the issue of this bond and the series of which it forms a part. -8- It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the 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 in said water fund sufficient revenues received from the operation of said waterworks system to be applied in the manner as hereinabove set forth. 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 Vil- lage Treasurer, such registration to be evidenced by notation of said Village Treasurer on the back hereof, after which no transfer hereof shall be valid unless made on said books and similarly noted hereon, but it may be discharged from such registration by being transferred to bearer, after which it shall be transferable by delivery, but it may be again register,ed 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, b,y 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 Pre- sident and said Village Clerk which officials, by the execution of this bond, do adopt as and for their own proper signatures their re- spective facsimile signatures appearing on said coupons, and tllis bond to be dated the first day of April, 1955. PresIdent;Village of Mount~---- Prospect, Cook County, Illinois ATTEST: Village ~ Clerk; Village of Moun-r prospect, Cook County, Illinois (Form of Coupon) Number $--- On the first day of -- 19,__, *(unless the bond to which this coupon is attached has been called for payment prior to said -9- date as therein provided for and payment made or provided for), the Village of Mount Prospect, Cook County, Illinois, will pay to bearer _Dollars ($__) in lawful money of the United states of America out of the Water Fund of said Village at _ ____________ in the City of Chicago, Illinois, being interest then due on its Water Revenue Bond dated April 1, 1955, Number Attest: President, Village of Mounr----- Prospect, Cook County, Illinois VillageClerk; VilIage of Mount Prospect, Cook County, Illinois (Form for Registration as to principal) nate of Re~istration In Whose Name Registered _________ Signature of Villag~ Treasur~_ ----- * (The clause within the parenthesis appearing in the form of interest roupon shall be inserted in all coupons attached to bonds numbered 181 to 370, inclusive, 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 Revenue Bonds herein provided for, 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 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 col- lected and be deposited in a separate fund which is hereby created to be designated as the Water Fund of the Village of Mount Prospect which shall be used only in paying the reasonable cost of operating and main- taining said system, paying the principal and interest upon all reve- nue bonds of said Village issued and outstanding which by their terms are payable from the revenues of the waterworks sy stem, and for the creation of the accounts hereinafter established and created. -10- Sectiop 8. That there be and there are hereby created and esta- blished separate special accounts to be designated severally "Operation and Maintenance Account," "Bond and Interest Sinking Fund Account," "Reserve Bond Account," "Depreciation and Contingencies Account," "Surplus Account" and "Bond Redemption Account," into which there shall be credited on the first business day of each month all mon~s held in the Water Fund of the Village of Mount Prospect, in accordance with the following provisions: (a) There shall be credited to the Operation and Maintenance Account on the first business day of each month, an amount suf- ficient to pay the reasonable expenses of operation and mainte- nance an d repair of the said waterworks ~stem for the next succeeding month, including, without limiting the generality of the foregoing, salaries, wages, cost of materials, supplies, purchase of power for pumping and insurance. (b) There shall be credited to the Bond and Interest Sinking Fund Account monthly amounts sufficient to pay promptly all in- terest due October 1 and April 1 of each year, and the principal of all bonds as the same ma.tures; and it is hereby determined that the minimum amount to be credited into the .bond and Interest Sink- ing Fund Account in each fiscal year for bonds authorized pur- sua.nt to this ordinance shall be as follows: Fiscal Year Ending Last Da~ of JulI-- 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Principal and Interest .. $ 4,008.34 12,025.00 12,025.00 17,025.00 16,862.50 16,700.00 21,537.50 26,212.50 25,725.00 25,237.50 24,750.00 24,262.50 28,775.00 28,125.00 27,475.00 26,825.00 36,175.00 40,200.00 39,063.50 32,925.00 21,950.00 11,300.00 10,975.00 10,650.00 10,325.00 After crediting the Bond and Interest Sinking Fund Account with the minimum amount required for the fiscal year ending the last day of July, 1955, all subsequent amounts credited to said Bond and Interest Sinking Fund Account of said above minimum amounts shall be credited to said Bond and Interest Sinking Fund Account for each of the subsequent fiscal years at jihe rate each -11- month of not less than one-fifth of the interest becoming due on the next succeeding interest payment date and at the rate each month of not less than one-tenth of the principal becoming due on the next succeeding principal maturity date. Any and all sums re- ceived from the purchasers of the bonds as accrued interest there- on to date of delivery shall also be placed in said Bond and In- terest Sinking Fund Account. (c) There shall be credited to the Reserve Bond Account the sum of $400.00 each month until said account aggregates the sum of $40,000 and thereafter 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 re- stored to the aggregate amount of $40,000. Said account sha.ll be used solely for the purpose of paying principal of and interest on any bonds which by their terms are payable for the revenues of the waterworks system of said Village falling due at any time for the payment of which there is no money availa.ble in the Bond and Interest Sinking Fund Account. (d) There shall be credited to the Depreciation and Contin- genCies Account, after the required payments have been made into all of the above accounts, the sum oftoOO each month until such aggregates the sum of $30,000, and thereafter no payments shall va 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 $30,000. The moneys in said account shall be used to pay the cost of necessary repairs or replacements to the system, for the paymeht of which no other funds are available, except that the funds held in said Depreciation and Contingencies Ac- coUnt to the extent necessary to prevent or remeqy a default in the payment of the interest on or principal of the bonds herein authorized, shall be used and held for use for that purpose and shall be transferred to the Bond and Int,erest Sinking Fund Ac- count, and whenever such a transfer is made, the amount so trans- ferred shall be added to the next deposit to be made, and there- after, until full reimbursement to said account has been made. (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 rtedemption Account, and all funds credited to said Bond Redemption Account shall be held and used only for the purpose of calling and redeeming any outstanding bonds of said Village which by their terms are pay- able from the revenues of the waterworks s,rstem of said Village as said bonds become redeemable. After crediting said Bond Redemption Account at the end of each fiscal year with the minimum aaounts herein provided for, the balance of said funds in said 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 pur- pose; 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 Redemption Redemption Account. -12- (f) The moneys to the credit of the accounts created ~ sub- paragraphs (c) to (e), inclusive, hereinabove set forth in this section, may 1 " by resolution adopted by the President and Board of Trustees of said Villa.ge be invested from time to time in di- rect obligations of the United States Government maturing in not more than ten 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 create~. All accrued interest in any funds so invested shall be credited to the accounts for which the in- vestment was made. Section 9. It is hereby covenanted and agreed that the revenues of the waterworks system are to be credited to the various special ac- counts hereinabove established and created in the order in which said accounts have been listed, and if wi thin 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. 2!ction 10. That the Village of Mount Prospect hereby agrees to carry insurance on the waterworks system of the kinds and in the amounts which are usually carried on similar properties, including without li- miting the generality of the foregoing, fire, windstorm insurance, publiC liability, and any additional insurance covering such risks as shall be recommended by a competant independent engineer employed for the purpose of making such recommendations, and all moneys received for losses under such insurance policies shall be deposited in the Depre- ciation and Contingencies Account and be used in making tood 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 shall be made within.ninety days from date of the loss. The payment of premiums for all insurance poli- cies required under the provisions of this section shall be 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 accOlmt of which they were received. ~ction 11. The Village of Mount Prospect covenants and agrees that as long as any of the bonds herein authorized remain outstanding -13- ~~_________o_o_, ~,_,__+_ ~ proper books and records and accounts will be kept by the Village of Mount Prospect separate and apart from all other records and accounts, showing correct and complete entries of all transactions of the water- works 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, accounts and audit re- lating thereto, and to inspect the system and all property comprising the system. Said Village further covenants and agfees that it will within sixty dalS following the close each fiscal year cause an audit of such books and accounts to be made by an independent firm of certi- fied public accountants, showing the receipts and disbursements for and on account of the s,ystem. A copy of said audit shall be mailed to the original purchaser of the bonds 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 matters may be thought proper by the accountant to be included therein, shall without limiting the generality of the foregoing, include the following: (a) A statement in detail of the income and expenditures of the system for such fiscal year (b) A balance sheet as of the end of such fiscal year (c) The accountant's comment regarding the method in which the City has carried out the requirements of this or- dinance, and tie accountant's recommendations for any changes or improvements in the operation of the system (d) 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 policy (el 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 un- metered water customers at the end of the year. All expense in curred in the making of the audit requir'ed by this section shall be rregarded and paid as a maintenance and operating expense, and it is further covenanted and agreed that a copy of each such audit shall be furnished to the holder of any of the bonds at his request, and any holder of a bond or bonds authorized under this or- dinance shall have the right to discuss with the accountant making the audit the contents of the audit and to request any additional informa- -14- tion that may reasonably be required. Section 12. It is hereby covenanted and agreed that while any Water Revenue Bonds hereunder are outstanding, additional Water Re- venue 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 waterworks system for the fiscal year then next preceding that the revenues derived from such waterworks system were sufficient to pay the cost of operation and maintenance, and sufficient to pro- vide the minimum annaual deposits required for the Reserve Bond Ac- count and for the Depreciati on and Contingencies Account , respectively, as hereinabove specified in Section 8 hereof, and 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 ad- ditional bonds then proposed to be issued, and (c) an amount of prin- cipal of suc~ 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. 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 re- funding bonds so issued shall share ratably and equally in the reve- nues of said waterworks system and the pledge thereof under this or- dinance with the portion of the bonds hereby authorized which are not refunded; provided, however, that if only a portion of said out- standing 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 qy this ordinance, or maturing at a date earlier than the final maturity of such bonds not refunded. Notwithstanding the above restrictions, additional bonds to share ratably and equally in the income and revenues of the waterworks system may be issued at any time after the passage of this ordinance for the purpose of completing the improvements, extensions, bettermEnts and additions authorized and provided for Qy this ordinance, but only -L5- upon certificate to the President and Board of Trustees by the engi- neers then in the employ of said Village that additional funds are nec- essary for the purpose of completing the said improvements and exten- sions as provided b.v the plans and specifications therefor heretofore approved and now on file in the office of the Village l,;lerk for public inspection. ~ction 13. While the bonds authorized hereunder or any of them remain outstanding or unpaid, rates charged for services shall be suf- ficient at all times to pay cost of operation and maintenance, to pro- vide the accounts established b.v 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 require- ments of this section. Section 14. Any holder of a bond or bonds or any of the coupons -- of any bond or bonds issued hereunder mayei ther in law or equity, by suit, action, mandamus or other proceedings, enforce or compel perfor- mance of all duties required by this ordinance, including the making and collecting of sufficient rates for service and segregating the re- venues of said system and the application thereof to the respective ac- counts created by this ordinance, and it hereby covenants and agrees not to sell, lease, loan, mortgage or in any manner dispose of said watefworks system, including any and all extensions and improvements that may be made thereto (provided the covenant in this section shall not prevent the said Village from disposing of any property which in the judgment of the President and Board of Trustees is no longer use- ful or profitable in the operation of said system and the proceeds from the sales of any such property is paid into the Bond and Interest Sinking Fund Account, herein established) until all of the bonds here- in authorized to be issued shall.have been paid in full, both princi- pal and interest, or unless and until provision shall have been made for the payment of all such bonds and interest thereon in full; and the Village further covenants and agrees with the holders of said bonds -16- to maintain in good condition and continuously operate said water- works system. Secti~ 15. That as soon as may be after this ordinance becomes effective said bonds shall be sold by the President and Board of Trustees in such manner as they may hereafter determine, provided, how- ever, that if the acceptable bidder offers to purchase said bonds bear- ing interest at a lesser rate than three and one-quarter per cent (:3~ per annum, as provided by this ordinance, then this President and Board of Trustees shall upon making the award of said bonds to the said purchaser adopt a resolution fixing the place of payment of said bonds and directing the officers of said Village to execute and deliver said bonds to the purchaser to bear interest at such lesser rate of rates specified by the bidder. ~ectiq~ 16. Provisions of this ordinance shall constitute a contract between the Village of Mount prospect and the holders of the bonds herein authoriz'ed 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 pay- ment 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 of such section, paragraph, clause or provision shall not affect any of the other pro- visions of this ordinance. Section 18. The proceeds of all bonds hereby authorized exclu- sive of accrued interest, and except as herein otherwise provided, shall be a Construction Fund, to be applied in carrying out the con- struction of improvements, extensions, betterments and additions herein provided for, in accordance with the plans and specifications therefor heretofore approved by this President and Board of Trustees and now on file in the office of the Village Clerk for public inspect- ion; provided, however, interest accrUing on said bonds during the construction period may be deemed an item of construction cost, and to the extent such interest is not paid from income and revenues it shall be paid from the proceeds of said bonds. Costs of surveys, de- signs, soundings, borings and all other necessary and inci4ental -17- expenses shall be deemed items of construction cost. If the President and Board of Trustees shall determine at any time that the amount of bond proceeds. in the Construction Fund is in excess of the amount nec- essary to meet authorized expenditures therefrom during the ensuing six months, it may invest such excess in interest bearing bonds or other direct and general obligations of the United States Government, having a maturity not more than one year subsequent to the date of such investment, and all such investments, as well as all income therefrom, shall be carried to the credit of the Construction Fund Ac- count. 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 received from the sale of bonds hereby authorized, together with such portion of the proceeds (if any) that the President and Board of Trustees determine shall be set aside representing int,erest during construction as aforesaid shall be transferred into the Water Fund. ~!ctioq_19. All ordinances, resolutions, or orders, or parts thereof, in conflict with the provisions of this ordinance, are to the extent of such conflict hereby repealed. ~ction 20. That this ordinance after its passage and ap- proval by the President shall be published in The Mount Prospect Herald, a newspaper published and of general circulation in said Village, and if no petition is filed with the Clerk of said Village within twenty-one days after publication of this ordinance duly signed 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 extending the waterworks and the issuance of revenue bonds therefor as provided by this ordinance be submitted to the electors of the Village at an election to be called and held in and for said City as provided by law, then this or- dinance shall be in full force and effect. -18- INTRODUCED: IL1bra~ d /2~Z5 -' FILED FOR PUBLIC INSPECTION Marc h / 4-L? 6-'S PASSED: ~:;/ ..~ /.2 5"'5 APPROVED: ~ 0 / '1:r5' _@ktdfJ/U/ l2 President, Village 0 Mo ,A~TB1S':D:,. . Cook County, Illinois ;i \:~,(~,. ~ if" f ~:j.j [" ;:> ,~"f. ~ i',>>~.""<: ".( ".I,' ' "I ;'.......;~.:~.... ,..", '7 ~ . ~. ;~'~~,;:i'-\;/c..j' - C '- '" t!f./" ~llag",c~ CZr t' ~:.:;~' " ;"~" '- ...~ \. ~f ,'..i" ". .".~, ' ...J ~ """ 'f PUBLISHED: fp~/~5 -19-