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HomeMy WebLinkAboutOrd 244 11/01/1944 . . , l . . . \ J .' , - ~44 AN ORDINANCE authorizing and providing tor the lisue of 127,000 Water Revenue Bonds, Series of 1944, of the Village of Mount Prospect, Oook County, Illinois, for the purpose of defraying the oost of improving and extending the present waterworks system of 8aid Village, presoribing all the details ot said bonds, and providing tor the collection, segregation and distribution ot the revenue ot the waterworks system of said Village for the purpose of paying the cost ot operation and maintenance thereof, providing an adequate depreciation fund theretor, and paying the principal and interest of said water revenue bonds. * * * * * * * * * * WHEREAS the existing supply of water for the Village of Mount Prospeot, Cook County, Illinois, consists of two shallow well, the production oapacity of which has been gradually diminishing and at the present time said wells will not produoe sufficient water fo public and domestic use of the inhabitants of said Village, inolud- ing fire protection; and I \ , WHEREAS it is necessary in the interests of pUblic health and safety that an additional water supply be procured for the Village and its inhabitants, and for that purpose the waterworks sys te. of said Village must be improved by the construction of a new well to provide an additional water supply, and that it is advisable that said well be constructed on Pine street near the center of the Village adjacent to the existing reservoir, pumping station, and the existing Pine street well to tap the sandstone tormations at approxi mately 1500 feet, and the installation of a well pump, of deep well turbine type, electrically driven, with neces8;ary controls and the connection of said well with the existing waterworks system, so that it may be made an integral part thereof, all in acoordance with plan and specifications heretofore approved by this President and Board of Trustees of said Village and now on tile in the office of the Village Clerk for public inspection; and ~- -~ ~~ -1- - I A '.., :- ;, ,All\ J WHEREAS the total cost ot making such i.provements has heretotore been determined and is hereby estimated by this presiden and Board ot Trustees to be the sum ot $27,000; and WHEREAS the Village doe. not have sutficient funds avail- able tor the purpose ot constructing said improvements, and tor tha purpose it will be necessary that said Village borrow money and in evidence thereot issue its water revenue bonds in the principal amount ot $27,000; and WHEREAS the Village ot Mount Prospeot has heretofore, and pursuant to an ordinance duly adopted tor that purpose, issued water revenue bonds and there is presently outstanding water revenu bonds ot said Village in the principal amount of $8,000; and WHEREAS in and by the ordinance authorizing the issue ot water revenue bonds presently outstanding this Village has covenant d with the holderstnereot that it will not issue additional bonds un- less and until it 1s shown by the earnings ot the waterworks system tor the tiscal year then next preceding that the revenues derived trom such waterworks system are sutficient to pay the cost ot opera t10n and maintenance, provide an adequate depreciation tund, and leave a balance equal to one hundred twenty per cent (120%), ot (a> the principal and interest requirements tor such year on all bonds / then outstanding payable trom the revenues ot the waterworks system; (b) one year's interest on the total issue ot such additional bonds then proposed to be issued; and (e) ,an amount of principal of such additional bonds computed by dividing the total amount of such issu by the number ot years trom date 'Ot issue to the tinal maturity dat of such additional bond issue; and WHEREAS this President and Board ot Trustees has examined an audit ot the earnings of the waterworks system tor the last pre- ceding tiscal year and has heretotore determined and does hereby determine that the earnings ot the waterworks system are sutficient n -2- "' -- - ~-I----~-- - .. .~ "" " to comply with the covenants and restrictions in the tormer ordi- nance adopted by this President and Board ot mruste.s on the seventh day of November, 1934, under which the water revenue bonds now outstanding were authorized and issued, and that this President and Board ot Trustees has authority to issue additional revenue bonds tor the purpose of making the improvements and extensions hereinabove reterred to, to share equally and ratably in the earn- ings ot the waterworks system; and WHEREAS under the proviSions ot Article 78 of the "Revised Cities and Villages Act,. etfective January 1, 1942, and all laws amendatory thereof and supplemental thereto, said Village is author ized to issue water revenue bonds for the purpose ot paying the cost ot such improvements and extensions; and WHEREAS in order to produce the sums necessary to construe the improvements and extensions hereinabove described, it will be necessary tor said Village to issue water revenue bonds ot said Village in the principal amount ot $27,000, bearing interest and maturing as hereinafter provided; !Q!, THEREFORE, Be It Ordained by the President and Board ot Trustees of the Village of Mount Prospect, Cook Oounty, Illinois as followa: Section 1. That this President and Board of Trustees has caused an estimate ot the cost ot making the improvements and ex- tensions to the waterworks system ot said Village, referred to and described in the preambles of this ordinance, and to be constructed in accordance with the plans and specifications therefor, heretofor approved by this President and Board ot Trustees and now on tile with the Village Clerk for public inspection, and has heretofore and does hereby determine the total estimated cost of such improve- ments and extensions to be the sum of $27,000. ,-, -3- A .. , ..: ",~, "" ,I Section~. That this President and Board of Trustees does hereby determine the period of usefulness of said waterworks system and ot such improvement and extensions to the waterworks system to be forty years. Section!. That said Village does not have sufficient tunds on hand to pay the cost of such improvements and extensions, and for that purpose it will require the issuance of $27,000 Water Revenue Bonds bearing interest at the rate of three per cent (3%) per annum, payable semi-annually. Section!. That for the purpose ot defraying the cost of such improvements and extensions there be issued and sold water revenue bonds of said Village, to be designated .Water Revenue Bond, Series of 1944," in the principal amount of $27,000, which bonds shall bear date of August 1, 1944, be of the denomination of $1,000 each, be numbered consecutively from 1 to 27, inclusive, bear in- terest at the rate of three per cent (3%) per annum, payable semi- annually on the first days of February and August in each year and mature $1,000 on August 1 of each of the years 1953 to 1979, in- clusive; provided, however, the Village shall have the right to call and redeem said bonds in their numerical order, prior to maturity, at par and accrued interest on August 1, 1955, or on any interest payment date thereafter. Notice of its option to redeem Ii and pay any or all of said bonds shall be given by registered mail I! II to the holder thereof, if known, and as to any unknown holder such II,;,' notice shall be published at least once in a newspaper published . I! and of general daily circulation in the City of Chicago, Illinois. II II The mailing of such notice shall be at least fifteen days precedingii Ii such redemption datef and the publication of such notice shall be II II I at least fifteen days preceding such redemption date, and when any II of such bonds shall have been called for redemption, and payment Ii made or provided for, interest thereon shall cease from and after 11. date so specified. B -4- At .. - "-'~'.~ ..', .' . ~# i i revenue bonds shall be payable in lawtul money of the United states Section !_ Both principal and interest ot said water of America at the Mount Prospect state Bank in the Village of Moun Prospect, Illinois. Said bonds shall be signed by the President, sealed with the corporate seal ot said Village, and attested by the Village Clerk, and the interest coupons attached to said bonds shall be executed by the tacsimile signatures ot said President and said Village Clerk, and said otficials, by the execution of sai bonds, shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. Said bonds, together with interest thereon, shall be pay- able solely trom the revenues derived from the waterworks system 0 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 ot said bonds may be registered aw to principal at any time prior to maturity in the name ot the holder on the books ot said Village, in the ottice of the Village Treasurer, such registration to be noted on the reverse side ot 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 asaisas. Such registered bonds shall be transw ferable to another 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 negotiability of the coupons thereto attached, but such coupons shall be transterable by delivery merely. Section!. That said bonds and coupons shall be in sub- stantially the following torms: w5- II . . JI .. ..., , : '" , (Porm ot Bond) UNI TED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK VILLAGE OF MOUNT PROSPECT WATER REVENUE BOND. SERIES OF 1944 Number - $1,000. KNOW ~ ~ !I THESE PRESENTS, that the Village ot Mount Prospect, Cook County, Illinois, tor value received, herebf promise to pay to bearer, or it this bond be registered, as hereinatter provided, then to the registered holder hereot, solely from the water fund ot the Village ot Mount Prospect, as hereinafter men- tioned and not otherwise, the sum ot One Thousand Dollars ($1,000) on August 1, 19 , together with interest on said sum from date - hereof until paid at the rate of three per cent (3~) per annum, payable semi-annually on the first days ot February and August in each year upon presentation and surrender of the annexed in- tarest coupons as they severally become due. Both principal and interest of this bond are hereby made payable in lawful money of the United States ot America at the Mount Prospect Stat. Bank, in the Village ot Mount Prospect,Illinoi . The Village of Mount Prospect reserves the right to call and redeem this bond, prior to maturity, at par and accrued interes on August 1, 1955, or on any interest payment date thereafter, upon notice specifying the number of the bond and date ot redemption, given by registered mail to the holder if known, and as to any un- known holder such notice shall be published at least once in a news paper of general daily circulation, printed and published in the City of Chicago, Illinois. The mailing of such notice shall be at least tifteen days preceding such redemption date; the pUblication of such notice shall be not less than fifteen days preceding such redemption date, and when this bond shall have been called tor re- demption and payment made or provided for, interest thereon shall p " "i'l; -6- ... " ,"tr. " cease from and after the date so specified. This bond is payable solely from revenue. derived f'ro~ the waterworks system of said Village and not otherwise, and is issued under authority of Artiele 78 ot the ~evised Cities and Villages Act," eftective January 1, 1942, and all laws amendatory thereof and supplemental thereto, for the purpose ot paying the cos of constructing improvements and extensions to the municipal water- works system ot said Village of Mount Prospect, and this bond does not constitute an indebtedness of' said Village within any constitu- tional or statutory limitation. Said Village covenants that it wil fix and maintain rates for water serTice and collect and account for revenues from said waterworks sufficient to promptly pay prinei of and interest on this bond as the same becomes due. Under said Act and the ordinance adopted pursuant thereto, sutficient revenues from the operation of the municipal waterworks system shall be deposited 10 a separate fund designated as the wate fund of said Village, Which shall be used only in paying the cost of operation and maintenance of such system, providing an adequate depreciation fund, and paying the principal of and interest on all , bonds of such Village that are payable by their term. only from the revenue of such waterworks s.ystem. It is hereby certified and recited that all acts, condi- tions and things required to be done precedent to and in the issu- ance 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 tor depositing in said water fund sufficient revenues re- ceived 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 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 notation of said Treasurer on the back hereof, after which no transfer hereof shall " , IIIld -7- . .. 4 .., be valid unless made on said books and similarly noted hereon. but , it may be discharged from such registration by being transferred to bearer, atter Which it shall be transterable by delivery, but it may be again registered as betore. The registration ot this bond shall not restrict the negotiability of the coupons by delivery merely. !! WITNESS WHEREOF, said Village of Mount Prospect, Cook County, Illinois, by its President and Board of Trustees, has cause this bond to be signed by its President. its corporate seal to be hereto affixed. and attested by the Village Clerk. and the coupons I hereto attached to be signed by the facsimile signatures of said I President and said Village Clerk, which offiCials, by the execution of this bond, do adopt as and tor their own proper signatures their respective facsimile signatures appearing on said coupons and this I bond to be dated the first day of August, 1944. Attest: Village Clerk (Form of Coupon) Number $ On the tirst day of , 19 *(unless the bond - to which this coupon is attached has theretofore been called tor .1 payment and payment made or provided for), the Village of Mount Prospect, Cook County, Illinois, will pay to bearer out of the water fund of said Village, Dollars ($ I the I ), in lawful money ot the United states ot America, at Mount Prospect state Bank. in the Village of Mount Prospect, .. . -8- .. .. .. . ~'1'!,.. ~ ,t. Illinois, be1ng interest then due on its Water Revenue Bond, Serles of 1944, dated August 1, 1944, Number . - Pres Vll1age Clerk ,I I ., the parentheses shall be inserted in all oouponsl after the optional date of the bond to which it I I I (Fo~ for Reglstration) I Signa ture of Villa e Treasure In Whose Ngme Reg1stered *(The clause wi thin mil. turing from and is attached.) Date of Reglstration " I I I i ,I i Section 1- From and after the delivery of any bonds i8sueh under the provisions of this ordinance, sufficient revenues derived ; from the operation ot the waterworks system ot said Village of Mount I I Prospect shell be set aside as collected and be deposited in a .epar~te fund, which shall be used only in paying the cost ot operatlon and I maintenance of said system, providing an adequate depreciation fund, I I and paying the principal of and interest upon all bonds of said Village of Mount Prospect which are payable by their terms only from I such revenues and such water fund shall be used only for such pur- poses. I lin said water fund to be used for the purpose of paying principal i II and interest of water revenue bonds issued under the provisions ot II this ordinance shall be as tollows: I I I It is hereby determined that the amounts to be set aside , . hi -9_i1' .. .. ~ " Fiscal Year Ending the last day of July 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1966 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Principal and Interest $ 810 610 810 610 610 610 610 610 1,810 1,780 1,750 1,720 1,690 1,660 1,630 1,600 1,570 1,540 1,510 1,480 1,450 1,420 1,390 1,360 1,330 1,300 1,270 1,240 1,210 1,180 1,150 1,120 1,090 1,060 1,030 Distribution of amounts in said water fund suffioient to cover the above required sums tor principal and interest of water revenue bonds authorized by this ordinance, tor principal and in- terest on all outstanding water revenue bonds, for the purpose of paying the cost of operation, maintenance and an adequate depre- ciation fund, as hereinafter provided, shall be monthly on the first day of each month, except that when the first day of any month shall be Sunday or a legal holiday, then such distribution shall be made on the next succeeding aecu1ar day. Said water fund as hereinabove provided for shall be used solely and only, and is herebJ pledged for the purpose of paying the principal and interest ~ . k..i!4 -10- .. '. , '. .t of the bonds herein authorized to be issued, and all outstanding water revenue bonds heretofore authorized to be issued, to pay the cost of operation and maintenance, and provide an adequate depre- ciation fund. If in any fiscal year the said Village shall fail to set aside the full amount herein provided for any of the purposes speci fied, then an amount equivalent to such deficiency shall be set aside for said purposes from the first available revenues of the following fisoal year or years. Seotion~. While the bonds authorized hereunder or any of them remain outstanding or unpaid, rates charged for water shall be sufficient at all times to pay the cost of operation and main- tenance, to provide a depreciation fund, and to pay the interest on and prinoipal of the water revenue bonds issued hereunder, and all outstanding water revenue bonds heretofore authorized. And there shall be charged against all users of said water, including the Village of Mount Prospeot, such rates and amount for water service as shall be adequate to meet the requirements of this section. Com- pensation for services rendered the Village shall be oharged agains the Village and payment for the same from the oorporate funds shall be made monthly into the water fund created by this ordinance as revenues derived from the operation of the waterworks system in the same manner as other revenues are required to be deposited. Section ~. 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, enforoe or oompe1 performance of all duties required by this ordinance, including the making and collecting of suffioient water rates for that purpose and application of income and revenue therefrom. Section 10. It is hereby covenanted and agreed that whi1 any water revenue bonds issued hereunder are outstanding, no addl- p ~ . .. -11- .. .. . . . . " tional water revenue bonds shall be issued unless the revenues de- rived from. the waterworks system for the fiscal year then n.ext pre- ceding were sufficient to pay all costs of operation and maintenane , provide an adequate depreciation fund, and leave a balance equal to at least one hundred five per cent (105%},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'. .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 date of issue to the final maturity date of such additional bond issue. Seotion 11. The Village of Mount Prospect hereby covenan s and agrees wi th the holder or holders of the bonds herein proposed to be issued or any of them that it will punctually perform all duties with reference to said waterworks system required by the Cont stitution and laws of the state of Illinois, including the making II and collecting of suffioient rates for water and segregating the II revenues of said plant and the application of the respective ~ds I II ii !I il II waterworks system, including any and all extensions and improvement, I I created by this ordinance, and it hereby covenants and agrees not to sell, lease, loan, mortgage or in any manner dispose of said that may be made thereto until all of the bonds herein authorized to be issued shall have been paid in full, both principal and in- terest, or unless and until provision shall have been made for the payment of all bonds end interest thereon in full; and the Village further covenants and agrees with the holders of said bonds to maintain in good condition and continuously operate said waterworks system. Section~. 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, and after the issuance of n -12- .. .. . ~ the bonde, no changes, additions or alterations of any kind shall be made in any manner, except in accordance with the provisions of this ordinance, or 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 tor the payment of all bonds and interest thereon in full. Section l~. That the proceeds ot said bonds hereby authorized derived trom the sale thereof shall be used for construe tion of the improvements and extensions to its municipal waterworks system in accordance with plans and specifications therefor, pre- pared for that purpose, now on file in the office of the Village Clerk and open to the inspection ot the public. Section 14. That said bonds be executed as soon as may be after this ordinance becomes effective and delivered to the Treasurer and be by said Treasurer delivered to Deuell & Company, Chicago, Illinois, the purchaser thereof, upon receipt of the pur- chase price therefor, same being par plus accrued interest to date of delivery thereof, all in accordance with the contract for the purchase thereof heretofore entered into by said Village, which contract be and is hereby in all respects ratified and approved. Section~. If any seetion, paragraph, clause or provi- sion of this ordinance 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 12. In the event the amount of bonds issued is less than the aggregate amount herein authorized, the amounts to be set aside in the water fund to be used for the purpose of paying principal and interest of water revenue bondS, as provided in Sec- tion 7 hereof, shall be reduced proportionately. Any accrued in- terest received from the sale of such bonds shall be deposited in " . -13- - . .~ AHW/,a.j "~ I ~ . .. , the bond and interest account ot the water fund and applied toward the payment of interest next maturing atter delivery ot said bonds Section 12. This ordinance atter its passage and approv by the President shall be published once in the a newspaper published and having a general circulation in the Village of Mount Prospect and this ordinance shall be in full torce and effect after its passage and publication in the manner required by law. Passed ''(\ ~'-" .. L \. .....J \~\. I 1944. , Approved ~~"P"L.'\"".u....... \~ , 1944. Recorded ~c"'M_ ...~,....~ \~ , 1944. Attest: If- c: ~~ ....c> I Vi'flage C e rk .. . ...,.. -14-