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HomeMy WebLinkAboutOrd 171 11/07/1934 ~9\~ I AN ORDINANCE AUTHORIZING THE CONSTRUCTION OF IMPROVE- MENTS AND EXTENSIONS TO THE WATERWORKS SYSTEM OF THE VILLAGE OF MOUNT PROSPECT, PROVIDING FOR THE ISSUE OF $14,500 WATER REVENUE BONDS OF SAID VILLAGE FOR THE PURPOSE OF DEFHAYING THE COST OF CONSTRUCTION OF SUCH IMPROVEMENTS AND EXTENSIONS TO THE SAID WATERWORKS SYSTEM, PRESCRIBING ALL DETAILS OF SAID BONDS AND PROVIDING FOR THE COLLECTION, SEGREGATION AND DISTRIBUTION 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 DEPRECIATION FUND THEREFOR Ah~ PAYING THE PRINCIPAL OF AND INTEREST ON SAID WATER REVENUE BONDS. WHEREAS it is deemed advisable, necessary and for the best interests of the Village of Mount Prospect that improvements and extensions to the waterworks system consisting of the con- struction of a 250,000 gallon concrete, covered reservoir and an addition to existing pumping station, including the installation of additional pumping equipment, be constructed all in accordance with plans and specifications therefor prepared for that purpose and now on file in the office of the Village Clerk and open for public inspection; and WHEREAS the total estimated cost of such improvements and extensions to the said waterworks system of the said Village, prepared by the engineers is the sum of Eighteen Thousand Dollars ($18,000); and, WHEREAS the Village of Mount Prospect does not have sufficient funds available for the purpose of constructing said improvements and extens~ons to the said waterworks system and it will be necessary that it borrow the sum of Fourteen Thousand Five Hundred Dollars ($14,500), and in evidence thereof issue water revenue bonds therefor, and WHEREAS under the provisions of "An Act authorizing any city, village or incorporated town having a population of less than 500,000 to build or purchase and to operate a waterworks or water supi)ly system either wi thin or without the corporate limits thereof and to improve and extend a waterworks system or water supply for public and domestic use, and to provide for the cost thereof by the issue of revenue bonds payable solely from the revenues derived from the operation thereof", approved April 22, 1899, as amended by Acts approved July 2, 1931, and May 10, 1934, respectively, said Village is authorized to issue water revenue bonds for the purpose of paying the cost of the con- struction of the said improvements and extensions to said water- works system; and, WHEREAS the Village of Mount Prospect has entered into an agreement with the United States of America, acting through the Federal Emergency Administration of Public Works, whereby the United States of America has agreed to buy said water revenue bonds and to make a grant to the Village of part of the cost of the project; NOW, THEREFORE BE IT ORDAINED by the President and Board of Trustees of the Village of Mount Prospect, Cook County Illinois; SECTION 1. That the Village of Mount Prospect con- struct improvements and extensions to its waterworks system, comprising and consisting of the construction of a 250,000 gallon concrete, covered reservoir and an addition to existing pumping station, including the installation of additional pumping equipment, all in accordance with said plans and specifi- cations therefor prepared for that purpose and now on file in the office of the Village Clerk. SECTION 2. That the cost of constructing said improve .ents and extensions to the said waterworks system has been estimated by the engineers employed for that purpose and is now found by the President and the Board of Trustees of the said Village to be the sum of Eighteen Thousand Dollars ($18,000). SECTION 3. That the period of usefulness of said -2- , I I i ;-If '<"i /i' '\J improvements and extensions is hereby determined to be forty (40) years. SECTION 4. That the cost of the construction of such improvements and extensions to said waterworks system of the said Village be paid by means of a loan and grant from the United States of America, through its agency, the Federal Emergency Administration of Public Works, and that as security for said loan from the United States of America it is necessary that the said Village issue its water revenue bonds in the aggregate principal amount of Fourteen Thousand Five Hundred Dollars ($14,500). SECTION 5. That for the purpose of defraying the cost of such improvements to said waterworks system there be issued and sold water revenue bonds of the said Village of Mount Prospect to be designated "Water Revenue Bonds", in the principal sum of $14,500, which bonds shall be dated August 1, 1934, be numbered consecutively from 1 to 17, inclusive, bonds numbered 1 to 5, inclusive, being of the denomination of $500 and bonds numbered 6 to 17, inclusive, being of the den~mination of $1,000, bear interest at the rate of four percent (4%) per annum, payable on February 1, 1935 and semiannually thereafter on August 1 and February 1 in each year, and mature in numerical order on August 1 in each of the years and in amounts as follows: NUMBERS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 AMOUNTS DATES $ 500.00 1936 500.00 1937 500.00 1958 500.00 1939 500.00 1940 1000.00 1941 1000.00 1942 1000.00 1943 1000.00 1944 1000.00 1945 1000.00 1946 1000.00 1947 1000.00 1948 1000.00 1949 1000.00 1950 1000.00 1951 1000.00 1952 ) SECTION 6. That both principal and interest of said -3- jll 11 I" \ - bonds be payable in such funds as are on the respective dates of payment of principal of. and interest on said bonds legal tender for the payment of public and private debts, at the office of the Village Treasurer of the Village of Mount Prospect in Mount Prospect, Cook County, Illinois. That said bonds be signed by the President of the Village, sealed with the corporate seal of said Village and attested by the Village Clerk, and that the interest coupons attached to said bonds be executed with the facsimile signatures of the said President and the said Village Clerk and said officials, by the execution of said bonds, shall adopt as and for their own proper signatures their respective facsimile signa- tures appearing on said coupons. Said bonds, together with interest thereon, shall be payable solely from the revenues derived from the waterworks syste of said Village, including all future improvements thereof and extensions thereto, and said bonds shall not, in any event, constitute an indebtedness of the Village of Mount Prospect within the meaning of any constitutional or statutory limitations. 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 another registered holder or back to bearer only upon presentation to the Village Treasurer, with a legal assign- ment duly acknowledged or approved. The registration of any of said bonds shall not affect the negotiability of the coupons thereto attached, but such coupons shall be negotiable by delivery merely. -4- II SECTION 7. That said bonds and coupons shall be in substantially the following form: (FORM OF BOND) UNITED STATES OF AMERICA STATE OF ILLINOIS, COUNTY OF COOK THE VILLAGE OF MOUNT PROSPECT WATER REVENUE BOND No. $ KNOW ALL MEN BY 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 here- inafter provided, then to the registered holder hereof, solely from the Water Fund of The Village of Mount Prospect as herein- after set forth and not otherwise, the sum of DOLLARS ($ ) on August 1, 19___, together with interest on said sum from date hereof until paid at the rate of four per centum (4%) per annum, payable on February 1,1935, and semiannually thereafter on August 1 and February 1 in each year 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 such funds as are, on the respective dates of payment of principal of and interest on this bond, legal tender for the payment of public and private debts at the offi.ce of the Village Treasurer of The Village of Mount Prospect in Mount Prospect, Cook County, Illinois. This bond is payable solely from revenues derived from the waterworks system of said Village, including all future improvements thereof and extensions thereto, and not otherwise, and is issued under authority of "An Act authorizing any city, -5- \ \ village or incorporated town having a population of less than 500,000 to build or purchase and to operate a waterworks or water supply system either within or without the corporate limits thereof, and to improve and extend a waterworks system or water supply for public and domestic use, and to provide for the cost thereof by the issue of revenue bonds payable solely from the revenues derived from the operation thereof", approved April 22, 1899, as amended by Acts approved July 2, 1931 and May 10, 1934, respectively, for the purpose of paying the cost of constructing improvements and extensions to the waterworks system of said Village and this bond does not constitute an indebtedness of said Village of Mount Prospect within any constitutional or statutory limitation. Onder said Act and the ordinances adopted pursuant thereto, said Village of Mount Prospect shall establish and maintain such rates and charges for the use of the facilities of said waterworks system as will provide revenues sufficient at all times to pay the cost of operation and maintenan ce of said waterworks system, to provide and adequate depreciation fund and to pay the interest on and principal of the bonds of said Village which are issued under authority of said Act and are payable by their terms only from the revenues of said waterworks system, and the entire revenues derived from the operation of said waterworks system, including all fufure improvements thereof and extensions thereto, shall be deposited in a separate fund designated as the "Water Fund" of said Village of Mount Prospect and used only for the foregoing purposes. 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 I 'I' i'l -6- I'....... '.'. -- I provision has been made for depositing in said Water Fund the entire revenues 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 of Mount Prospect 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 shall be valid unless made on said books and similarly noted hereon, but it may be discharged from such regis- tration by being transferred to bearer, after which it shall be transferable by delivery, but it may again be registered as before The registration of this bond shall not restrict the negotiability of the coupons by delivery merely. IN WITNESS WHEREOF, The Village of Mount Prospect, Cook County, Illinois, by its President and the Board of Trustee, has caused this bond to be signed by its President, its corporate seal to be hereto affixed and attested by the Village Clerk and the coupons hereto attached to be signed by the f~csimile signa- tures of the 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 August, 1934. President. (CORPORATE SEAL) ATTEST: Village Clerk. -7- ) I ----....----. (FORM OF COOPON) No._ $ On the first day of ,19 , The Village of Mount Prospect, Cook County, Illinois, will pay to bearer out of the Water Fund of said Village DOLLARS ($ ), in such funds as are on the date of payment hereof, legal tender for the payment of public and private debts, at the office of the Village Treasurer of the Village of Mount Prospect in Mount Prospect, Cook County, Illinois, being the semiannual interest then due on its Water Revenue Bond, dated August 1, 1934. No. Village Clerk. President. Date of Registration In \Vhose Name Registered Signature of Treasurer SECTION 8. 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, for the purpose of this ordinance shall be operated on a fiscal year basis,commencing on the first day of July and ending on the thirtieth day of June of each succeeding year. From and after delivery of any bonds issued under the provisions of this ordinance, the entire revenues derived from the operation of such waterworks system of -8- said Village of Mount Prospect, including all future improvements and extensions thereof, shall be set aside as collected and be deposited in a separate fund which is hereby created to be designated as the "Water Fund" of The Village of Mount Prospect, i which shall be used only in paying the cost of operation and " " maintenance of said waterworks system, providing an adequate depreciation fund, and paying the principal of and interest upon the water revenue bonds of said Village of Mount Prospect that are payable by their terms only from such revenues, and such Water Fund shall be used only for such purposes. SECTION 9. That there shall be established separate accounts in the Water Fund, to be designated severally the "Operation and Maintenance AccountfT, the fTDepreciation Account", and the "Bond Account", into wh5.ch there shall be paid on the first business day of each month, all moneys held in the Water Fund, in accordance with the following provisions, and in the order the accounts referred to are hereinafter mentioned: (a) There shall be paid into the Operation and Maintenance Account an amount sufficient to pay the reason~le expenses of operation and maintenance of said waterworks system for the period of one month; (b) There shall be paid into the Depreciation Account a reasonable depreciation reserve, not exceeding an amount equal to one twenty-fifth of one, per centum (1/25%) of the value of said waterworks system; (c) There shall be paid into the Bond Account an amount at least equal to one sixth (1/6) of the interest becoming due on said bonds on the next succeeding interest payment date plus an amount at least equal to one twelfth (1/12) of the principal of said bonds becoming due on -9- ,/ ;~-- the next succeeding bond maturity date. SECTION 10. That, until such time as and unless the aggregate of all moneys held in the Bond Account, from whatever' source received, shall be eaual to the aggregate interest and principal requirements of sc:dd bonds for the twenty-four (24) months then next ensuing, there shall be paid on the first business day of each month from the Water Fund into the Bond Account in addition to the amounts required by Sub-section (c) of Section 9, hereof, to be so paid, an amount equal to twenty per centum (20%) of the amount required by said Sub-section (c) to be so paid, such additional amounts to be accumulated and held as a reserve for contingencies, to be used for the payment of any portion of interest on or principal of said bonds in the payment of which there would otherwise be default. SECTION 11. That any surplus in the Operation and Maintenance Account may be transferred to either the Bond Account or the Depreciation Account as the governing body of The Village of lJ[ount Prospect may direct, and any moneys in the Depreciation Account in excess of the amount necessary for probable replace- ments to be needed during the then current fiscal year and the next ensuing fiscal year, as determined by the governing body of the Village of Mount Prospect shall at once be transferred from the Depreciation Account to the Bond Account; provided, however, that such transfers from the Operation and Maintenance Account or the Depreciation Account to the Bond Account shall not ouerate as an abatement of the Bond Account requirements herein ~ set forth. bection 12. If on the first business day of any month the amounts held in the Water Fund are not sufficient to provide for all of the payments into the Bond Account herein required, then the amount of any deficiency in such payments s11al -10- be added to the amounts required to be padd into the Bond Account on the first business day of the next ensuing month. When, and so long as, all amounts held in the Bond Account, from whatever source received, shall be eoual to the aggregate principal amount of all of said bonds remaining out- standing together with interest thereon to maturity, no further payments shall be made into the Bond Account from any source. All amounts held in the Bond Account shall be used for the payment of interest on and principal of said bonds, and until so used shall be deposited in a bank or baw{s which are members of the Federal Reserve System and the Federal Deposit Insurance Corporation or may be invested in direct obligations of the United States Government. SECTION 13. That, while any of said bonds remain outstanding or unpaid, rates chaDged for water shall be sufficient at all times to pay the cost of operation and maintenance, to provide an adequate depreciation fund and to pay the interest on and principal of said bonds. There shall be charged against all users of water, including The Village of Mount Prospect, such rates and amounts for water service as shall be adequate to meet the requirements of this section. Compensation for services rendered the Village of Mount Prospect shall be charged against the said Village and payment for the same from the corporate 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. Any holder of a bond or bonds or any of the coupons of any bond or bonds issued hereunder may, either in law or in equity, by suit, action, mandamus or other proceedings, enforce or compel performance of all dut~es . d b ~ requ~re y this ordinance, including the making and collect-lnf! n fPi i ..L '-J 01 su.. cent water rates for -11- that purpose and application of income and revenue therefrom. SECTION 14. That it is hereby covenanted and agreed that while any of said bonds are outstanding no additional water revenue bonds shall be issued unless the revenues derived from the waterworks system, including all future improvements thereof and extensions thereto, 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 -- c.."... at least one hundred twenty per centum (120%) of the aggregate of II (a) the principa.l and interest requirements for such year on all I 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 date of issue to the final maturity date of such additional bond issue. SECTION 15. That the Village of Mount Prospect hereby covenants and agrees with the holder or holders of said bonds that it will punctually perform all duties with reference to said waterworks system required by the constitution and laws of the State of Illinois, including the making and collecting of suffi- cient rates for water and segregating the revenues of said plant and the application of the respective funds created by this ordinance, and it hereby covenants and agrees not to sell, lease, Ipan, mortgage or in any manner dispose of or encumber said waterworks system, including all future improvements thereof and extensions thereto, until all of said bonds shall have been paid in full, both principal and interest, or unless and until provisions shall have been made for the paYment thereof. SECTION 16. That the Village of Mount Prospect hereby covenants and agrees with the holder or holders of said bonds -12- .J that as long as any of said bonds remain outstanding it will maintain in good condition and continuously operate said water- works system, and will, in order to protect the interests of said holders, continuously maintain insurance on said waterworks system of the same kind or kinds and in the same amount as that which would normally be maintained by a private company engaged in a similar type of business; provided that the said Village shall not be required to pay the cost of such insurance from any source other than from moneys in the Operation and Maintenance Account of said Water Fund. SECTION 17. That the Village of Mount Prospect hereby I I covenants and agrees with the holder or holders of said bonds that II II it will: i!l Keep proper books of records and accounts (separate from all other records and accounts), in which complete and correct entries shall be made of all transactions relating to said water- works system, and furnish to any holder of any of said bonds, upon written request, not more than thirty (30) days after the close of each semiannual fiscal period, complete operating and income state- ments of said waterworks system, in reasonable detail, covering such semiannual period, and not more than sixty (60) days after the close of each fiscal year, complete financial statements of said I system covering such fiscal year, certified by the auditors of The Village of Mount Prospect. v iBl Petmit any holder or holders, or any purchaser, of not less than twenty-five per centum (25%) in principal amount of said bonds then outstanding, to inspect at all reasonable times said waterworks system and all records, accounts and data relating thereto,and -13- iQl Furnish to any holder or holders, or any purchaser, of twenty-five per centum (25) in principal amount of said bonds then outstanding, all data and information relating to said water- works system which may reasonably be requested. SECTION 18. That the provisions of this ordinance shall constitute a contract between the Village of Mount Prospect and the holders of the bonds herein authorized to be issued, and after the issuance of said bonds, no charges, additions or alter- ations of any kind shall be made, until all of said bonds and the interest thereon shall have been paid in full, or unless and until provisions shall have been made for the paYment thereof. SECTION 19. That the proceeds from the sale of said bonds shall be used for the construction of improvements and extensions to the waterworks system of the Village of Mount Prospect consisting of the construction of a 250,000 gallon concrete, covered reservoir and an addition to existing pumping station, including the installation of additional pumping equip- ment, in accordance with plans and specifications therefor, prepared for that purpose, now on file in the office of the Village Clerk and open for the inspection of the public. SECTION 20. If any section, paragraph, f1ause 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 provisions of this ordinance. SECTION 21. That any accrued interest received from the sale of the bonds herein authorized shall be deposited in the Bond Account and applied toward the paYment of interest coupons next becoming due and payable after delivery of said bonds. There shall be deposited in the Water Fund, out of the first proceeds from the sale of said bonds, a sum sufficient to pay the -14- interest thereon during the period of construction of said improv - ments and extensions, said sum to be in an amount equal to the interest requirements of said bonds for not exceeding six months computed from the date of delivery thereof to the purchaser, which sum shall be used solely for the interest due on said bonds during said period. SECTION 22. That upon the execution of the said bonds by the President and Village Clerk, the Village Treasurer shall deliver them to the United States of America, through its agency The Federal Emergency Administration of Public Works, and receive the purchase price therefor. SECTION 23. All ordinances, resolutions or orders, 0 parts thereof in conflict with the provisions of this ordinance are to the extent of such conflict hereby repealed. SECTION 24. This ordinance after its passage and approval shall be published once in the MOUNT PROSPECT HERALD, a newspaper published and having a general circulation in the Village of Mount Prospect, and shall be in full force and effect immediately upon its passage, approval and publication. PASSED by the President and Board of Trustees of the Village of Mount Prospect on the 7th day of November,A.D.1934, and.7~POSited and filed in the office of the Village Clerk this day of November,1934. ...cbn. "'_, ~ G ~ _~~~~ Village ark APPROVED by the President of The Village of Mount Prospect this 7th day of November, A.D.1934. ~~~ Village Clerk. ~~7~~ Presi . Publi shed on the / lRift day Of~~~~934,in the MOUNT PROSPECT HERALD, a newspaper publi h d d sean having a -15- general circulation in the Village of Mount Prospect. Village Clerk. -16-