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