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HomeMy WebLinkAboutOrd 907 05/14/1963 ,.i'i, ORDINANCE NO. j~7 AN ORDINANCE authorizing and providing for the issue of $1,450,000 Waterworks and Sewerage Revenue Bonds, Series 1963, of the Village of Mount Prospect, Cook County, Illinois, and providing for pay- ing the principal and interest of said bonds and the operation and maintenance of the waterworks and sewerage system and providing reserves therefor. .. .. .. 'it WHEREAS the Village of Mount Prospect deems it advisable and necessary to make certain improvements to and extensions of its existing waterworks system, consisting of rehabilitation of two wells, the drilling of an additional well, replacement of certain water treatment equipment, and the extension of certain mains, in- eluding all the necessary controls, equipment and appurtenances therefor, all in accordance with the engineers' report therefor heretofore approved by the President and Board of Trustees and presently on file in the office of the Village Clerk for public in- spection1 and WHEREAS the Village of Mount Prospect has heretofore entered into a contract with the Cook County Water Corporation, an Illinois Public Utility Corporation, whereby the Village will purchase and the Company will sell its entire existing waterworks and sewerage systems now being operated in said Village and in areas immediately contiguous thereto by said Company, consisting of all of the proper- ties, real, personal and mixed, which comprise or form a part of the waterworks system and sewerage system owned and operated by said Cook County Water Corporation as of April 2, 1963, together with all additions and improvements made and contracted for after April 2, 1963 and prior to the ClOSing date, including any work in progress . as of the closing date} and . . WHEREAS the Village of Mount Prospect deems it advisable, necessary and in the interests of the inhabitants of the Village that upon acquisition of the waterworks system from the Cook County Water Corporat ion, certain improvements and extens ions be made to said waterworks system consisting of improvements to the well drilled to and drawing water from the Mt. Simon sandstone formation, necessary pumps and other appurtenances, and certain main exten- sions necessary to connect said system so it will become an integral part of the waterworks system of said Village, all in accordance with the engineers' report therefor heretofore approved by the President and Board of Trustees and now on file in the office of the Village Clerk for public inspection: and WHEREAS it is deemed advisable, necessary and in the best interests of public health and safety of the Village of Mount Prospect that the existing waterworks and sewerage systems, above described, be acquired and that the improvements to the waterworks system being acquired, as above described, be made, and that the improvements and extensions to the existing waterworks system be made, at a total cost of $990,000 for such acquisition and improve- ments above referred to, including all legal, engineering, admini- strative costs and bond discount: and WHEREAS it will be necessary to pay and refund certain out- standing Water Revenue Bonds of the Village designated (a) $30,000 Water Revenue BondS, dated January 1, 1949, due serially January 1 of each of the years 1964 through 1978, bearing interest at the rate of 3~% per annum. (b) $40,000 Water Revenue Bonds, dated August l, 1953, due serially August 1 of each of the years 1963 through 1968, bearing interest at the rate of 3~% per annum. -2- (c) $330,000 Water Revenue Bonds, dated April 1, 1955, maturing serially October 1 in each of the years 1964 through 1979, bearing interest at the rate of 3% per annum for bonds maturing in the years 1965-70, inclus- ive and 1973-79, inclusive, and 2-3/4% per annum for bonds maturing in the years 1963, 1964, 1971 and 1972. (d) ~~lOO,OOO Water Revenue Bonds, dated May 1, 1960, maturing serially May 1 in each of the years 1964 through 1980, bearing interest at the rate of 4~% per annum.. In order to accomplish the financing of the aforementioned acquisi- tion of the waterworks and sewerage system owned by the Cook County Water Corporation and the improvement of said waterworks system and the improvements to the existing waterworks system of the Village, in accordance with the provisions of Division 139 of Article 11 of the Illinois Municipal Code, approved May 29, 1961 and all laws thereunto enabling; and WHEREAS the Village of Mount Prospect has heretofore by Ordinance Number 9' ('.) , adopted ~ Cb:J / i 1963 authorized the combination of its existing waterworks system and the waterworks system being acquired from the Cook County Water Corporation with the sewerage system being acquired from the Cook County Water Corporation; and WHEREAS the Village does not have sufficient funds available for the purpose of improving its existing waterworks system, acquiring the waterworks and sewerage systems of the Cook County Water Corporation, improving said waterworks system, and refunding the aforementioned outstanding Water Revenue Bonds, it will be nec- essary for the Village to borrow #1,450,000 and, in evidence there- of, to issue its waterworks and sewerage revenue bonds therefor; and .. . - 3 - WHEREAS the Village of Mount Prospect is authorized pursuant to the provisions of Division 139 of Article 11 of the Illinois Municipal Code to operate a waterworks system and a sewerage system as a combined waterworks and sewerage system, and to issue its waterworks and sewerage revenue bonds payable from the revenues of said system in an amount sufficient to pay the cost of acquiring the existing waterworks and sewerage systems, above described, and to pay the cost of constructing the improvements above described, and to refund outstanding water revenue bonds; NuW, THEREFORE, Be It Ordained by the President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois as follows: Section 1. That said Village of Mount Prospect has caused an estimate to be made of the cost of acquiring said waterworks and sewerage systems owned and operated by the Cook County \vater Corpor- ation and upon acquisition, to make certain improvements to said waterworks system, and to improve and extend the existing water- works system of said Village, including the extensions necessary to connect that system to the system to be acquired, and to refund the outstanding Nater Revenue Bonds, all as described in the preambles of this Ordinance, and all in accordance with the plans and report of the engineers for said Village heretofore approved by the Presi- dent and Board of Trustees and now on file with the Village Clerk for public inspection, and does hereby determine that the estimated total cost thereof, including all legal, engineering, administrative costs and bond discount, is the sum of $1,490,000. Section 2. That the President and Board of Trustees does -- hereby determine that it is in the best interests of the Village of Mount Prospect that the aforementioned improvements be made to the - 4 - existing waterworks system, and that the aforementioned waterworks and sewerage system be acquired together with said improvements to the waterworks system being acquired, and that thereafter said system and the existing system of the Village of Mount Prospect be operated as a combined waterworks and sewerage system, and does hereby determine the period of usefulness of said combined water- works and sewerage system, including the proposed improvements and extensions to be made thereto, to be forty (40) years. Section 1. That the Village of Mount Prospect does not have sufficient funds available for the purpose of acquiring said water- works and sewerage systems, including the improvements and exten- sions to said waterworks system, and to pay for the improvement and extension of the existing waterworks system 8nd the refunding of the outstanding \Jater Revenue Bonds as aforesaid and, for that pur- pose, it will require the issue by said Village of $1,450,000 Waterworks and Sewerage Revenue Bonds which are hereby authorized under the provisions of Division 139 of Article 11 of the Illinois Municipal Code, approved May 29, 1961, and all laws thereunto enabling. Said bonds shall be designated "Waterworks and Sewerage Revenue Bonds, Series 1963u, shall be in the principal amount of $1,450,000, in the form of negotiable coupon bonds, dated May 1, 1963, numbered 1 and upwards in consecutive order ending with number 1450, of ~1,000 denomination, and shall be expressed to mature on May 1st in each of the years and amounts as follows, subject to the right of redemption prior to maturity as hereinafter provided: - 5 - 1964 1965 1966 1967 1968 1969 1970 1971 $40,000 40,000 45,000 45,000 45,000 50,000 50,000 50,000 1972 1973 1974 1975 1976 1977 1978 1979 $55,000 55,000 60,000 60,000 60,000 65,000 65,000 70,000 1980 1981 1982 1983 1984 1985 1986 1987 $70,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Bonds maturing on and prior to May 1, 1974, shall not be callable for redemption prior to their maturity, but the bonds maturing on and after May 1, 1975, shall be redeemable prior to their maturity at the option of the Village, either in whole or in part, on any interest payment date on or after May 1, 1974, through the use of revenues only and in whole or in part from any moneys that may be made available for such purpose other than the revenues on any date on and after May 1, 1978, at the par value thereof plus accrued interest to date of redemption. If less than all of said bonds are called for redemption at any time, they shall be called in the inverse order of their maturity and by lot within a maturity if less than a whole maturity is redeemed. Notice of redemption of any bonds that are redeemable prior to their maturity shall be given by registered mail to the registered holder at the address shown on the Registrar's books and as to all other holders by one publication in The Bond Buyer, published in the City of New York, New York, or in the event it ceases publication, then in a financial newspaper published in the City of Chicago, Illinois, at least thirty (30) days prior to the date fixed for redemption thereof when the date of redemption coincides with an interest payment date. and an additional notice shall be published not more than thirty (30) nor less than fifteen (15) days prior to the date of redemption when said redemption date is a date other than an interest payment date, and by filing such notice with the paying agent of said bonds at least thirty -6- (30) days prior to the date fixed for redemption thereof. Such notice shall designate the date fixed for redemption, the amount and numbers of the bonds called for redemption, the terms of re- demption, and upon the giving of such notice and providing funds for the redemption of said bonds, interest shall cease on the bonds called for redemption from and after the redemption date so specified. Section 4. (A) Said bonds shall bear interest from date thereof until paid at such rate or rates, not exceeding Five Per " Cent (5%) per annum, as shall be specified in the Resolution pro- viding for the delivery of said bonds as hereinafter provided, and both the principal of and interest on said bonds shall be payable in lawful money of the United States of America at such bank or trust company as shall be mutually agreeable to the Village and the purchaser of said bonds and as specified in the Resolution provid- ing for the delivery of the bonds. (B) The interest on said bonds falling due on and prior to the maturity of said bonds shall be evidenced by appropriate interest coupons to be attached to said bonds, and such interest shall be payable November 1, 1963 and semiannually there- after on May 1 and November 1 of each year until paid. (C) Said bonds shall be signed by the Presi- dent and attested by the Village Clerk, with the seal of said Village affixed, and the interest coupons attached to said bonds evidencing the rate or rates of interest said bonds will bear shall be executed 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 respec- tive facsimile Signatures appearing on said coupons. -7- (D) Said bonds, together with interest there- on, shall be payable solely from the revenues derived from the com- bined waterworks and sewerage system of said Village in the manner hereinafter described, and such bonds shall not in any event consti- tute an indebtedness of said Village within the meaning of any con- stitutional or statutory limitation and shall b~ coequal as to the pledge of said revenues securing the payment thereof and share ratably and equally without any preference, priority or distinction of one over another as to the source or method of payment and security of said bonds. Section~. Any of said bonds may be registered as to principal at any time, prior to maturity, in the name of the holder on the books of said Village in the office of the Village Treasurer, such registration to be noted on the back of the bonds by the said Treasurer of said Village, and thereafter the principal of such registered bonds shall be payable only to the registered holder, his legal representatives or assigns. Such registered bonds shall be transferable to another registered holder or back to bearer only upon presentation to the Treasurer, with a legal assignment duly acknowledged or approved. Registration of any such bonds shall not affect negotiability of the coupons thereto attached, but such coupons shall be transferable by delivery merely. Section 6. That the form of said bonds shall be substan- tially as follows with appropriate omissions and insertions to give effect to differences of maturity dates, rates of interest, name of paying agent, terms of prior redemption, number and recitals~ - 8 - (Form of Bond) UNITED STATES UF AMERICA STATE uF ILLINUIS CuUNTY uF CuUK VILLAGE uF NuUNT PRuSPECT WATERWURKS hND SEWERhGE REVENUE BuND, SERIES 1963 Number $1,000 KNOW ALL MEN BY THESE rRESENTS, 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 Waterworks and Sewerage Fund of the Village of Mount Prospect, as hereinafter mentioned and not otherwise, the sum of One Thousand Dollars ($1,000) on May 1, 19 (unless this bond is SOoner redeemed as hereinafter provided), together with interest on said sum from date hereof until paid at the rate of per cent ( 11/ \ 70'.' per annum, payable November 1, 1963, and semiannually thereafter on the first days of May and November in each year and until the maturity hereof upon presentation and surrender of the annexed interest coupons as they severally become due. Both principal of and interest on this bond are hereby made payable in lawful money of the United States of America at This bond is one of an authorized issue of ~1,450,OOO in principal amount, issued to provide funds for paying the cost of acquiring a waterworks and sewerage system and providing for improvements and extensions to the combined waterworks and sewerage system of said Village, and refunding certain outstanding Water Revenue Bonds of said Village, all as provided by the Constitut~cn and laws of the State of Illinois, including Division 139 of - 9 - Article II of the Illinois Municipal Code, approved May 29, 1961, and all other laws amendatory thereof or supplementary thereto, all as more fully described in that certain Ordinance adopted by the Board of Trustees of the Village of Mount prospect on the day of , 1963, authorizing the issue of said bonds and does not constitute an indebtedness of said Village within any constitutional or statutory limit9tion. This bond and all other bonds of said total authorized issue of $1,450,000 are payable solely as to principal and inter- est from the revenues to be derived by said Village from the oper- ation of said combined waterworks and sewerage system of said Village and are coequal as to the pledge of said revenues securing the payment thereof and share ratably and equally without any preference, priority or distinction of one over another, as to the source or method of payment and security of said bonds, and for a more complete statement of the revenues from which and conditions under which this bond and interest hereon are payable and a state- ment of the conditions on which obligations may hereafter be issued on a parity herewith and the general covenants and provisions pur- suant to which this bond is issued, reference is hereby made to said Ordinance adopted , 1963. Under said Code and Ordinance adopted pursuant thereto, the revenues from the operation of the combined waterworks and sewerage system shall be deposited in a separate fund designated as the "Waterworks and Sewerage Fund of the Village of Mount prospect", which shall be used only in paying the cost of opera- tion and maintenance of such combined system, providing an ade- quate depreciation allowance, and paying the principal of and in- terest on the bonds of said Village that are issued under author- -10- ity of said Code and are payable by their terms only from the revenues of the combined waterworks and sewerage system and making all payments required to maintain the accounts as created under the terms of the Ordinance pursuant to which this bond is issued. 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 for depositing in said Waterworks and Sewerage Fund the revenues received from the operation of said combined waterworks and sewerage system to be applied in the manner as hereinabove set forth: and it is hereby covenantal and agreed that rates will be charged for the use and service of such combined waterworks and sewerage system sufficient at all times to pay the cost of opera- tion and maintenance of said system, provide an adequate depre- ciation allowance, and pay the principal of and interest upon all bonds issued by said Village, which are payable solely from the revenues of said combined system, and to make all payments re- quired to maintain the accounts created by the Ordinance pursuant to which this bond and the series of which it forms a part is issued. The bonds maturing on and prior to May 1, 1974, shall not be callable for redemption prior to their maturity, but the bonds maturing on and after May l, 1975, shall be redeemable prior to their maturity at the option of the Village, either in whole or in part, on any interest payment date on or after May l, 1974, through the use of revenues only and in whole or in part from any moneys that may be made available for such purpose other than the revenues on any date on and after May 1, 1978, at the par -11- value thereof plus accrued interest thereon to the date of re- demption. If less than all of said bonds are called for redemp- tion at any time, they shall be called in the inverse order of their maturity and by lot within a maturity if less than a whole maturity is redeemed. Notice of redemption of any bonds that are redeemable prior to their maturity shall be given by registered mail to the registered holder at the address shown on the Registrar's books and by publication in The Bond Buyer, published in the City of New York, New York, or in the event it ceases publication, then in a financial newspaper published in the City of Chicago, Illin- ois, at least thirty (30) days prior to the date fixed for re- dem~tion thereof when the date of re~emption coincides with an interest payment date, and an additional notice shall be pUb- lished not more than thirty (30) nor less than fifteen (15) days prior to the date of redemption when said redemption is a date other than an interest payment date, and by filing such notice with the paying agent of said bonds at least thirty (30) days pri- or to the date fixed for redemption thereof. Such notice shall designate the date fixed for redemption, the amount and numbers of the bonds called for redemption, the terms of redemption, and upon the giving of such notice and providing funds for the re- demption of said bonds, interest shall cease on the bonds called for redemption from and after the redemption date so specified. This bond may be registered as to principal in the name of the holder on the books of said Village in the office of the Treasurer of said Village, such registration to be evidenced by notation of said Treasurer upon the back thereof, after which no transfer hereof shall be valid unless made on said books and -12- 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 registered as before. The registration of this bond shall not restrict the negotiability of the coupons by delivery merely. IN WITNESS ~HEREGF, said Village of Mount Prospect, Cook County, Illinois, by its President and Board of Trustees, has caused its corporate seal to be hereunto affixed and this bond to be signed by its President, and attested by the Village Clerk, and the coupons hereto attached to be signed by the facsimile signatures of said President and said Village Clerk, which officials by the execution of this bond do adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons, and this bond to be dated the first day of May, 1963. President, Village of Mount Prospect, Cook County, Illinois Attest: Village Clerk. - 13 - (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 :'date, as herein provided, and payment made or provided for), the Village of Mount Prospect, Cook County, Illinois will pay to bearer out of the Waterworks and Sewerage Fund of said Village Dollars ($ ) in lawful money of the United States of America at being interest then due on its Waterworks and Sewerage Revenue Bond, Series 1963, dated May l, 1963, number . President, Village of Mount Prospect, Cook County, Illinois Village Clerk *(The clause within the parenthesis shall be inserted in all coupons due on and after November 1, 1974&) Date (Form of Registration Certificate) Signature of In Whose Name Reqistered . villaqe Treasurer -l4- Section 1~ For the purpose of this Ordinance, the follow- ing words, terms an4 phrases ahll have the following meanings: (A) Village of Mount Prospect is hereinafter designated the "Village". (B) The governing body of said Village is hereinafter designated the "President and Board of Trustees". (C) The word "systemll shall include all of the properties and facilities of the combined waterworks and sewerage system of said Village presently existing and now being acquired whether lying within or without the boundaries of said Village, as now existing or under construction and as they may hereafter be improved or ex- tended while any of the bonds herein authorized or additional bonds herein permitted to be issued on a parity therewith remain out- standing: including all improvements, additions a..1'1d extensions thereto or replacements thereof hereafter constructed or acquired by purchase, contract or otherwise: and all contracts, rights, agree- ments, leases and franchises of every nature owned by said Village and used or useful or held for use in the operation of the system or any part or portion thereof. (D) The word "revenues II shall mean gross revenues and shall include all receipts received directly or indirectly from the initial and contined use and operation of the system. (E) The term "net revenues" shall mean that portion of the revenues received from the continued use and operation of the system remaining after providing sufficient funds for the reason- able and necessary cost of maintenance and operation of the system as defined in Section 7(F) hereof, and prior to any provisions for depreciation or payment of principal or interest. (F) The phrase "cost of maintenance and operation" shall -15- mean all costs reasonably incurred in connection with continued operation, use and maintenance of the system, other than capital improvements, necessary to keep the system in efficient and econom- ical operating condition, including the payment of premiums for insurance hereinafter required to be carried on the system and generally all expenses (exclusive of depreciation) which under good accounting practice are properly chargeable to and are reasonable and necessary to the efficient maintenance and operation of the system, and shall not include any transfer in lieu of taxes or gen- eral supervisi~n or administration charges by the Village. (G) The term "fiscal year" shall mean the period com- mencing May 1 and ending the last day of April of each succeed- ing calendar year and said system shall be operated, and all revenues shall be accounted for, on said fiscal year basis. (H) The word "bonds" shall mean and include each of the bonds in the principal amount of $1,450,000 authorized under the terms of this Ordinance. (I) The phrase "parity bonds" shall mean bonds hereafter issued on a parity with the $1,450,000 principal amount of bonds herein authorized under the provisions of Section lO of this ordinance. (J) The words "connection charge" shall mean any fee paid for connecting users of the combined waterworks and sewerage system to said system. Section 8. That the net revenues are hereby pledged to the payment of the principal of and the interest on the bonds and the parity bonds, and the bonds and the parity bonds shall be secured by a prior and paramount pledge of the net revenues. All of the bonds and parity bonds shall be equally and ratably secured -16- by said pledge without priority of one over the other by reason of date of sale or delivery or Series designation or purpose or otherwise. Section 9. So long as any of the bonds or parity bonds remain outstanding, all of the revenues shall from day to day as collected be deposited in a bank account separate and apart from all other Village bank accounts, and shall thereafter be accounted for in a separate accounting fund, which shall be known as the "Waterworks and Sewerage Fund of the Village of Mount Prospect", (sometimes hereinafter referred to as the "Revenue Fundu). All monies and investments therein shall be used solely for maintaining the following accounts, which are hereby created within said sep- arate accounting fund and to which there shall be credited as of the first business day of each month, except as otherwise herein- after provided, all such revenues so deposited in said Revenue Fund, in accordance with the following priorityf (a) There shall be credited to the Operation and Maintenance Account as of the first business day of each month an amount sufficient to pay the reasonable and necessary cost of main- tenance and operation of said system under economical manage- ment for the next succeeding month, including, without limiting the generality of the foregoing, salaries, wages, costs of materials, supplies, insurance and power, and including one- twelfth of all such expenses paid on an annualized basis. (b) Beginning May 1, 1963, there shall be credited each month to the Bond and Interest Account an amount equal to not less than one-fifth of the interest becoming due on all bonds and parity bonds on the next succeeding interest payment date; and an amount equal to not less than one-tenth of the principal - 17 - becoming due on the next succeeding May 1 of all bonds and parity bonds, until there shall have been accumulated in said Account on or before thirty days preceding each such current maturity date of principal or interest, or both, an amount sufficient to pay such principal or interest, or both, of all bonds and parity bonds maturing by their terms on such current maturity date. F~ and after the issuance of any of the bonds hereby authorized, and upon receipt of the purchase price therefor, there shall be credited to the Bond and Interest Account all accrued interest derived from the sale of said bonds. All moneys in said Account shall be used only for the purpose of paying interest on and principal of the bonds and parity bonds of said Village. Funds sufficient to pay interest or principal, or both, of said bonds, together with fiscal agency fees, shall be transmitted to the paying agent not less than fifteen days prior to each current maturity date of either principal or interest) or both, provided that all fiscal agency fees shall be paid from the Operation and Maintenance Account. (c) Beginning May 1, 1963, there shall be credited to the Bond Reserve Account in equal monthly installments the annual sum of $12,000 in each fiscal year, while any of the bonds or parity bonds are outstanding. The moneys in said Account shall be used only to pay principal of or interest on the bonds and parity bonds of said Village when there are insufficient funds available at any time to pay such principal or interest from any other source; provided, however, whenever the balance in said Account equals the maximum principal and interest require- ments on all bonds and parity bonds for any fiscal year, any - 18 - surplus over and above said maximum amount shall be used for the retirement of th~ bonds and parity bonds that are subject to redemption prior to maturity; provided, if none of said bonds are subject to redemption prior to maturity or will not become subject to redemption prior to maturity within the next sixty (60) days, then the Village Treasurer shall request tenders for the purchase of said bonds, if available, in the open market. The President and Board of Trustees may direct the acceptance of bonds which, in its opinion, are at the lowest tendered price to the advantage of the Village but shall reserve the right to reject any and all tenders. No tender or purchase at more than the par value and unpaid accrued interest on any of said bonds shall be considered. All such bonds purchased or redeemed shall be cancelled. (d) Beginning May 1, 1963, there shall be credited to the Depreciation, Improvement and Extension Account in equal monthly ihstallments the annual sum of ~12,000 for the fiscal years ending April 30, 1964 through April 30, 1968, and the annual sum of ~18,000 for the fiscal years ending April 30, 1969 through April 30, 1973, and the annual sum of *24,000 in each fiscal year thereafter. The moneys in said account shall be used first to provide an adequate allowance for depreciation as shall be determined from time to time by the President and Board of Trustees, which allowance shall be used from time to time to pay for any extraordinary maintenance, repairs and necessary replacements, or for improvement or extension of the system. Said funds shall be used at any time to pay principal of or interest upon any revenue bonds outstanding whenever there are no other funds available to pay the same; provided, however, - 19 - that from and after such time as said account aggregates the sum of $100,000, any sums in excess thereof may be transferred to the Bond Reserve Account or to the Surplus Revenue Account at the discretion of the President and Board of Trustees. (e) In the event that in any month, there are insufficient moneys in the Revenue Fund to make the required monthly credits to any of the foregoing accounts (a), (b), (c), or (d), then the amount of such deficiency shall be added to the requirements for the succeeding month and made up in the priority in which said funds are herein listed. (f) All revenues deposited in the Waterworks and Sewerage Fund bank account after crediting the required amounts to the re- spective accounts herein provided for, shall, at the end of each fiscal year, be credited to the Surplus Revenue Account and the amount so credited shall be held and used for the purposes and in the priority hereinafter mentioned, to wit: (1) For making up any deficiency necessary to credit accounts (a) to (d), inclusive, with the required amounts there- for for each fiscal year as hereinabove provided. (2) If, after complying with the requirements of sub- paragraph (1) hereof, there remains a balance in the Surplus Revenue Account, it may be transferred out of said account at the discretion of the President and Board of Trustees and used for any lawful purpose, including an annual transfer for general administration of the combined system equal to lOO~ of the annual gross revenues, or such other percentage as may be established from time to time by the President and Board of Trustees. -20- (g) Moneys remaining in any of the Accounts hereinabove created, may by resolution of the President and Board of Trus- tees be invested from time to time but only in direct obliga- tions of the United States GO"\7err.ment, maturing not later than the earliest date on which it is estimated the moneys in said Accounts will be needed, but in no event later than two years from the date of such investment. Such securities shall be sold from time to time without further authority of the Presi- dent and Board of Trustees as moneys may be needed for the pur- pose for which said Accounts have been createdo All accrued interest on any moneys so invested, or any gain or loss on any such investment, shall be credited to the Account for which the investment was made. All uninvested money on hand shall be deposited in banks selected as depositaries by the President and Board of Trustees from time to time so as to be available when needed. Such bank accounts shall be separate from all other Village Accounts provided that all money in the Waterworks and Sewerage Fund may be deposited in a single bank account, except money in Accounts (b) and (c) thereof, which shall be deposited in one or more separate bank accounts. Section 10. It is hereby covenanted and agreed that while any of the bonds issued hereunder are outstanding, the Village will not issue any other bonds or obligations of any kind or nature having a pledge on the revenues of the system which is prior to the lien on such revenues of the bonds herein authorized. (A) Said Village reserves the right to issue at one time, or from time to time, as shall be found necessary and for the best interest of said Village by the President and Board of Trustees, additional bonds on a parity with the bonds authorized hereunder -21- for the purpose of constructing improvements, replacements and ex- tensions of the system of the Village, or for the acquisition of additional waterworks or sewerage systems or any combination thereof or for the purpose of refunding any of the Waterworks and Sewerage Revenue Bonds of the Village, or for any combination of such pur- poses, but only provided the Village shall have complied with the following requirements: (a) The amounts required to have been credited to the re- spective Accounts (a) to (d), inclusive, of Section 9 of this Ordinance up to the date of authorization of said addi- tional bonds shall have been credited to said respective Accounts. (b) The net revenues of the system for the fiscal year then next preceding or the average adjusted net revenues of the system for the two then next preceding fiscal years, if such revenues are adjusted as herein provided, have been equal to not less than one hundred thirty five per cent (135%) of the maximum combined principal and interest requirements for any succeeding fiscal year during the life of the then out- standing bonds, of (i) all bonds then outstanding payable from the revenues to be derived from the operation of the system and (ii) on the additional revenue bonds then proposed to be issued. Net revenues for the purpose of this subparag- raph (b) shall mean the gross revenues of the system less the actual costs of operation and maintenance before making pro- vision for depreciation or other Accounts as required by this Ordinance for such fiscal year or years and shall be evidenced by audit of an independent Certified public accountant. principal and interest requirements shall include principal -22- and interest due May 1 as a requirement of the fiscal year ending April 30 immediately preceding such May 1 maturities. In the event there shall have been a change in the rates of the system from the rates in effect for either of the two immediately preceding fiscal years, which change is in effect at the time of the issuance of any such additional bonds, then the net revenues as provided in this sub-paragraph (b) shall be adjusted to reflect the net revenues of the system for each of the two immediately preceding fiscal years as they would have been had said then existing rates been in effect during all of each of said years. Any. ,!3uch adjusted net revenues shall be evidenced by the certificate of an independ- ent consulting engineer employed for that purpose, which certificate shall be approved by the President and Board of Trustees prior to issuance of the additional bonds and filed with the Village Clerk upon its approval. (B) The Village also reserves the right to issue addi- tional bonds on a parity with the bonds authorized hereunder for the purpose of acquiring the sanitary relief sewer system in por- tions of the Village of Mount prospect presently owned and operated by the Metropolitan~Sanitary District of Greater Chicago, and for the purpose of refunding any bonds of said District which may be outstanding and having a lien on the revenues thereof. In the event of the issuance of parity bonds for such purpose or purposes, the Village shall employ an independent consulting engineer to examine the reports of operation of such sanitary relief sewer system for each of the two immediately preceding fiscal years, and such engineer shall report as to the amount of revenue and expense which would have been attributable to said system for each of said fiscal ...23- years had said system been owned and operated by the Village of Mount prospect, and should the Village then establish new rates for such sewer service, the actual revenues shall be adjusted for such purposes to reflect the revenues of the system as they would have been had such rates been in effect for all of each of said fiscal years. Said adjusted net revenues shall be added to the net reven- ues of the existing combined waterworks and sewerage system of the Village of Mount Prospect for the purpose of making the computa- tions required to be made under sub-paragraph (b) of paragraph (A) of this Section, and any such additional bonds to be issued for the purposes outlined in this paragraph (B) shall be thus subject to the restriction of the aforementioned sub-paragraph (b) of paragraph (A). (c) Notwithstanding the foregoing pro~isions the Village reserves the further right to issue bonds to refund any of these bonds or bonds on a parity therewith provided they are issued to refund bonds due within three months of the date of refunding and for the payment of which no other funds are or will be available at the maturity thereof. (D) Any additional bonds issued as parity bonds shall be on an equal basis in all respects with the bonds herein authorized, shall share ratably and equally in the revenues of said system, and shall mature as to principal on May 1, and as to interest on May 1 and November 1. Section 11. That the Village hereby covenants and agrees said with the holders of/bonds and coupons hereby authorized that so long as the bonds or any of them remain outstanding and unpaid, either as to principal or interest, that rates charged for the use and services of the system shall be sufficient at all times to pay all costs of operation and maintenance, to provide and maintain -24- the Accounts created and established by this Ordinance, to pay the interest on and principal of all bonds which by their terms are pay- able from the revenues of said system that are authorized to be issued under the terms of this Ordinance, to pay interest on and principal of all bonds which by their terms are payable from the revenues of said system that are authorized to be issued under the terms of this Ordinance, and including all bonds hereafter issued and on a ~arity with the bonds herein authorized, and to carry out the covenants of this Ordinance. There shall be charged against all users of said system, inCluding the Village, such rates and amounts for water and sewer services as shall be adequate to meet the requirements of this Ordinance: provided the Village need not charge itself for water and sewer services so long as the revenues of the system are otherwise adequate to meet all the requirements of this Ordinance. To the extent permitted by law said Village further covenants not to grant any competing franchise for the operation of a waterworks system or a sanitary sewerage system or any combination thereof in said Village. Section~. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain outstanding and unpaid, either as to principal or interest, that any holder of a bond or bonds issued hereunder, or of any of the coupons representing interest accrued thereon may, either in law or equity, by suit, action, mendamus or other proceedings, enforce or compel perfor- mance by the officials of said Village of all duties required by law and by this Ordinance, including the making and collecting of sufficient rates for water and sewer services and segregating the revenues of said system and the application thereof to the -25- respective Accounts created by this Ordinance and in the time and manner as herein provided. Section li. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain outstanding and unpaid, either as to principal or interest, to carry insurance on the sys- tem of the kinds and in the amounts which are usually carried by operators of similar properties including, without limiting the generality of the foregoing, fire, windstorm, public liability, and all moneys received for losses under such insurance policies shall be deposited in the Revenue Fund and thereafter credited to the Depreciation, Improvement and Extension Account and be used in making good the loss or damage in respect of which they were paid either by repairing the property damaged or replacing the property destroyed, and provision for making good such loss or damage shall be made within ninety days from date of the loss. The payment of premiums for all insurance policies required under the provisions of this Section shall be considered a maintenance and operation expense. . Any proceeds received by the Village from policies cover- ing public liability shall be paid into the Revenue Fund and there- after credited to the Operation and Maintenance Account and be used in paying the claims on account of which they were received. Section li. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain outstanding and unpaid, either as to principal or interest, that proper books and records and accounts will be kept and maintained by said Village separate and apart from all other records and accounts of said Village, -26- showing correct and complete entries of all transactions relating to the system, and that the holders of any of said bonds or any duly authorized agent or agents of such holders shall have the right at any and all reasonable times to inspect the records, accounts and audit report relating thereto, and to inspect the system and all property comprising the system. Said Village further covenants and agrees that it will within not more than ninety days following the close of each fiscal year cause an audit of such books and accounts to be made by an independent public accountant, and that such audit report will be available for inspection by the holders of any of the bonds. Each such audit report in addition to whatever matters may be thought proper by the accountant to be included therein, shall without limiting the generality of the foregoing, include the following: (a) A statement in detail of the revenues and costs of operation and maintenance of the system for such fiscal year, and including credits to the various account pro- vided hereunder. (b) The accountant's comment regarding the compliance by the Village with the accounting requirements of this Ordinance, and the accountant's recommendations for any changes or improvements, of the manner in which such records are kept. (c) A list of all the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the poliCY. -27- Cd) The number of sewer customers served by the system at the end of the year, the number of metered water cus- tomers and the number of unmetered water customers at the end of the year and the quantity of water pumped. All expense incurred in the making of the audit required by this Section shall be regarded and paid as a maintenance and operation expense, and it is further covenanted and agreed that a summary of such audit report shall be furnished to the holder of any of the bonds at his request. Statements of revenues and ex- penses of the system shall be furnished by the person in charge thereof to the President and Board of Trustees at least quarterly and copies of the same shall be mailed to the original purchaser of the bonds authorized by this Ordinance and shall be furnished to any bondholder upon request.. A copy of each such annual audit report shall be mailed promptly upon completion to the original purchaser of the bonds authorized by this Ordinance q and such original purchaser of said bonds herein authorized shall have the right to discuss with the accountant making the audit the con- tents of the audit report and to ask for any reasonable explana- tion of the contents thereof. Section 12. That the Village hereby covenants and agre~ with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain outstanding and unpaid, either as to principal or interest, that it will punctually perform all duties with reference to said system required by the Constitu- tion and Laws of the State of Illinois, including the making and collecting of sufficient rates for water and sewerage service, segregating the revenues of said system and the application there- of to the respective Accounts created by this Ordinance, and it -28- hereby covenants and agrees not to sell, lease, loan, mortgage, encumber or in any manner dispose of said system, inclUding any and all extensions and improvements that may be made thereto, except as in this Ordinance recited (provided, however, that the covenant in this Section shall not prevent the said Village from disposing of any property which in the judgment of the President and Board of Trustees is no longer useful or profitable in the operation of said system, nor essential to the continued operation of said system without a reduction in the revenues to be derived therefrom and the proceeds from the sale of any such property is credited to the Depreciation, Improvement and Replacement Account hereinabove established in Section 9 of this Urdinance), and that the Village shall take no action in relation to said system which would unfavorably affect the security of the bonds herein author- ized or the prompt payment of the principal of and interest there- on, 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 ~ll such bonds and interest thereon in full; and the Village further cove- nants and agrees with the holders of said bonds to maintain in good condition and continuously operate said system. Section 12. That the provisions of this urdinance shall constitute a contract between the Village and the holders of the bonds herein authorized to be issued, and after the issuance of said bonds, no changes, additions or alterations of any kind shall be made therein, except as hereinbefore provided, until such time as all of said bonds issued hereunder and the interest thereon shall be paid in full or unless and until provision shall have been made for the payment of all such bonds and interest thereon in full. - 29 - Section 11. (A) That the President and Board of Trustees shall by resolution provide for the delivery of a portion of the Series 1963 Bonds by exchange on a basis of par for par with the holders of any of the outstanding Water Revenue Bonds of the Village who may have consented to such an exchange, and shall by said resolution designate the face numbers of the Series 1963 Bonds which shall be exchanged for respectively designated outstanding Water Revenue Bonds and shall specify the rate or rates of inter- est which such portion of the Series 1963 Bonds so exchanged shall bear. (B) That as soon after this Ordinance becomes effective as may be, the balance of the Series 1963 Bonds not desig- nated for exchange as above provided shall be sold by the President and Board of Trustees of said Village in such manner as it may hereafter determine and an award of the sale of said bonds shall be made to the acceptable bidder upon the basis of the lowest interest cost to the Village1 provided, however, that of the bonds sold, the earliest maturing bonds, up to an amount which, together with the face amount of bonds to be exchanged will equal $500,000 total face amount, shall be sold at not less than par and accrued interest, and further provided, that the price for the remaining bonds of the total authorized issue shall be such that the interest cost to the Village for the money received by the Village from the sale of such remaining bonds shall not exceed Five Per Cent (5%) annually computed to maturity according to standard tables of bond values. I f the acceptable bidder offers to purchase any of said bonds bearing interest at a lower rate or rates than herein pro- vided, then the President and Board of Trustees shall adopt a Resolution fixing the interest rate or rates on such bonds in . -30- accordance with the terms of the acceptable offer to purchase the same and directing the officers of the Village to execute and de- liver said bonds to such purchaser bearing interest at such lesser rate or rates so specified by the acceptabla bidder, and at the price designated in said acceptable bid, and also by Resolution shall designate the bank to act as the paying agent for all of said Series 1963 bonds. Section~. That the proceeds derived from the sale of said bonds, exclusive of accrued interest and exclusive of the face amount of said earliest maturing bonds sold for refunding purposes, shall be by the Treasurer segregated into the "Acquisition and Construction Fund Account of the Village of Mount Prospect", which is hereby created, which proceeds shall be kept separate and apart from all other moneys of the Village and deposited in one or more qualified banks or trust companies in the State of Illinois, which shall be designated from time to time by the President and Board of Trustees as depositaries for moneys of said Acquisition and Construction Fund Account. Said moneys shall be held and used solely to acquire the waterworks and sewerage system herein pro- vided for and the improvements to the combined waterworks and sewerage system of said Village, as provided by this Ordinance, and shall be held for the benefit of the Village for the purposes herein provided and for the benefit of the holder or holders of the bonds hereby authorized as their interest may appear. The cost of legal, engineering and financial services and all costs incidental to acquisition of the systems and issuance of the bonds shall be deemed costs of acquisition and construction. Said moneys shall be withdrawn from said depositary from time to time by the Treasurer of the Village only upon submission to him of the following: -3l- (A) A duplicate copy of the order signed by the president and Village Clerk, or such other officers that may from time to time by law be authorized to sign or countersign orders on the Treasurer of the Village, stating specifically the purpose for which the order is issued: and indicating that the payment for which the order is issued has been approved by the President and Board of Trustees of said Village: (B) In the case of the acquisition of the system owned by the Cook County Water Corporation, a duplicate copy of the order signed by the President and Village Clerk stating the purpose of the order and indicating that the payment has been authorized by the President and Board of Trustees of the Village: (C) Each order drawn for payment to a contractor or contractors for work done in connection with the construction of any improvements and extensions shall be accompanied by a certificate executed by the engineers in charge of the construction thereof, stating the nature of the work completed and the amount due and payable thereon. . Within sixty days after the acquisition of the improve- ments herein provided for, any surplus remaining in said Acquisi- tion and Construction Fund Account shall be transferred to the Depreciation, Improvement and Extension Account. From said proceeds derived from the sale of the bonds, the sum received as accrued interest on said bonds shall be credited to the Bond and Interest Account. -32- The proceeds of those bonds sold and delivered for re- funding purposes shall be held separate and apart from all other proceeds of the remaining bonds and applied to pay at face value plus accrued interest to date of payment any of the Water Revenue Bonds of the Village, the accrued interest to be paid from other water funds of the Village. The moneys credited to the Acquisition and Construction Fund Account may be invested from time to time in direct obliga- tions of the United States of America having a maturity not later than the date or dates when such funds will be needed, such date or dates to be determined from time to time by the president and Board of Trustees, and any such investments shall be promptly sold without further authority of the President and Board of Trustees whenever necessary to provide money to carry out the purposes for which such account was created. Section~. If any section, paragraph, clause or pro- vision 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 20. 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. Section 21. This ,prdinance after its passage by ~,.,;:t President and Board of Trustees shall be published once in the Mount Prospect Herald, a newspaper published in and having a general circulation in the Village of Mount prospect, and shall be effective in the manner, form and time as provided by law. ~ -33- Passed this 14th day of May, 1963 by the following roll call vote: Ayes: ~_ ~r U2/Lf/~ i~;,' Nays: Absent: U~~,J-'. ~~~'?...a Approved this 14th day of May, 1963. "^ ~ ~<e-. '. .i_c.J\,4t~ President ~ Recorded in the Village Records this 14th day of May, 1963. Attest~ /~ 0, uJ-Lk~ Village Clerk - 34 -