HomeMy WebLinkAboutOrd 435 04/05/1955
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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
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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
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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
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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
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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-
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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
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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,
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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:
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(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-
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.
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.
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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
$---
On the first day of
--
19,__, *(unless the bond to
which this coupon is attached has been called for payment prior to said
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date as therein provided for and payment made or provided for), the
Village of Mount Prospect, Cook County, Illinois, will pay to bearer
_Dollars ($__) 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.
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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
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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.
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(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
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~~_________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-
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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
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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
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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
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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.
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INTRODUCED: IL1bra~ d /2~Z5
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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
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