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HomeMy WebLinkAboutRes 14-63 05/28/1963 RESOLUTION NO. 14-63 A RESOLUTION APPROVING THE OFFICIAL NOTICE OF SALE, THE OFFICIAL BID FORM, THE OFFICIAL STATEMENT AND AUTHORIZING THE CIRCULATION OF SAME AS WELL AS APPROVING THE COMMUNICATION DIRECTED TO THE AMERICAN NATIONAL BANK OF CHICAGO APPROVING THE EXCHANGE OF BONDS. I I II Ii I I I NOW, THEREFORE BE IT RESOLVED by the President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois: Section 1 - That the attached official Notice of Sale, official bid form and official statement is hereby approved as well as the time, place and terms of sale provided for in the afore mentioned official notice of sale. Approval is also given to the circulation of the foregoing documents. Section 2 - That the President and Village Clerk are hereby authorized to sign and execute the attached communication directed to the American National Bank ot Chicago relative to the exchange of outstanding Revenue Bonds and related matters as set forth thereby. Section 3 - This resolution shall be in full force and effect fram and after its passage and approval accord- ing to law. I I II PASSED this 28 day of APPROVED this 28 day of May ,1963 May , 1963 ~~~~.~~ President . Attest: I -I~ ,. ',/ I" I ' vl11;;geU6i:r~"'r-'~ i 'I II II ;1 OFFICIAL NOTICE OF SALE $1,128,000 Village of Mount Prospect Cook County, Illinois Waterworks and Sewerage Revenue Bonds, Series 1963 The Village of Mount Prospect, Illinois will receive sealed bids for its $1,128,000 Waterworks and Sewerage Revenue Bonds, Series 1963, (being part of a total authorized issue of $1,450,000) on an all or none basis in Room 1282, First National Bank Building, Chicago, Illinois, (mailed bids should be sent c/o Paul D. Speer), until noon CDST June 11, 1963, at which time the bids will be publicly opened and read. Award will be made, or all bids rejected, at the regular meeting of the President and Board of Trustees in Mount Prospect that evening. These bonds are being issued to refund $500,000 Water Revenue Bonds of the Village of Mount Prospect, presently outstanding, to purchase a waterworks and sewerage system in a recently annexed area, and to pay the cost of improv- ing and extending the municipal waterworks system in accordance with the engineering report therefor now on file. They are payable, both principal and interest, solely from the revenues to be derived from the waterworks and sewerage system of the Village of Mount Prospect in the manner set forth in the ordinance authorizing them, and in no event shall constitute an indebtedness of the Village within the meaning of any constitutional or statutory limitation. No tax funds of the Village can or will be used for the payment of either principal or interest. Bonds will be coupon bonds registerable as to principal only in the denomination of $1,000. Principal and semi- annual interest (May 1 and November 1) will be payable at such bank in New York or Chicago as may be mutually agreed upon between the purchaser and the Village. Bonds are dated May 1, 1963. First coupon due November 1, 1963. MATURITIES-May 1 $10,000 ............. 1964 $50,000 ............. 1972 $60,000 ............. 1980 10,000 ............. 1965 50,000 ............. 1973 75,000 ............. 1981 15,000 ............. 1966 55,000 ............. 1974 75,000 ............. 1982 10,000 ............. 1967 55,000 ............. 1975 75,000 ............. 1983 5,000 ............. 1968 55,000 ............. 1976 75,000 ............. 1984 8,000 ............. 1969 55,000 ............. 1977 75,000 ............. 1985 15,000 ............. 1970 50,000 ............. 1978 75,000 ............. 1986 45,000 ............. 1971 55,000 ............. 1979 75,000 ............. 1987 Bonds due May 1, 1964 through May 1, 1974, inclusive, are not callable prior to maturity. Bonds due May 1, 1975 through May 1, 1987, inclusive, are callable in whole or in part, at par and accrued interest, from revenues of the system only, on any interest paying date on or after May 1, 1974 in the inverse order of their maturity and by lot within a maturity. Bonds are also callable at par and accrued interest in whole or in part, on any date on or after May 1, 1978 from any funds. Notice of redemption of any or all of said bonds shall be given by publication at least once, not less than thirty days prior to the date of redemption if redemption is on an interest payment date; if otherwise, once again not more than thirty days nor less than fifteen days prior to redemption, in the Bond Buyer in New York City, or in the event it ceases to be published, then in a financial newspaper published in New York, New York, or Chicago, Illinois. The bonds will be awarded to the best bidder, determined upon the basis of the lowest total interest at the rate or rates designated in said bid from May 1, 1963 to the respective maturity dates and deducting therefrom the premium bid or adding the discount. Each bidder shall name a rate or rates of interest which the bonds are to bear and each rate must be a multiple of one-quarter or one-tenth of one per cent (114 or 1/10 of 1%) and no more than three interest rates nor more than one for a single maturity shall be specified. Each interest payment will be evidenced by a single coupon on each bond. Repeating a rate shall not be considered adding a rate. No rate shall exceed five per cent (5%). Bids must be for all or none of the bonds, must be for not less than par for $178,000 of the bonds set out separately on the Bid Form, and not less than $935,000 for the remainder of the bonds, plus accrued interest to date of delivery and must be made upon the Official Bid Form and delivered in a sealed envelope marked "Bid for Bonds" at the time set out above. The Village reserves the right to reject any or all bids and to determine the best bid in its sole discretion and to waive any informality in any bid. In any event, the terms of the Waterworks and Sewerage Revenue Bond Ordinance adopted May 14, 1963 shall prevail over any conflict in this Notice. Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust company for $25,000 payable to the Village Treasurer of the Village of Mount Prospect, Illinois as evidence of good faith of the bidder. The check of the successful bidder will be retained uncashed by the Village pending delivery of the bonds. All other checks will be returned promptly. No interest will be allowed on any checks. Should the successful bidder fail to take up and pay for the bonds when tendered in accordance with his bid and this notice, his check shall be cashed by the Village and the proceeds retained as full and liquidated damages to the Village caused by failure of the bidder to carry out his offer of purchase. Otherwise his check will be applied on the purchase price of the bonds, when delivered, or returned uncashed at delivery. The bonds will be delivered to the successful purchaser against full payment as soon as they can be printed and executed which is expected to be July 1, 1963. Should delivery of these bonds be delayed beyond 60 days from the date of award for any reason except failure of performance by the successful bidder, then the bidder may cancel his agreement to purchase the bonds and receive back his check and thereafter his interest in and liability for the bonds will cease. The Village will deliver the bonds without expense to the purchaser in Chicago, Illinois and will pay for the printing of the bonds and the bond attorneys' opinion. At the time of delivery, the Village will furnish to the purchaser the writ- ten approving opinion of Messrs. Chapman and Cutler, Attorneys, Chicago, Illinois, evidencing the legality of the bonds, which opinion may be printed on the reverse of each bond. Said opinion will state that the bonds are subject to prior payment of various Water Revenue Bonds of the Village dated respectively January 1, 1949, August 1, 1953, October 1, 1955 and May 1, 1960, and that sufficient funds have been placed in trust with the American National Bank and Trust Company of Chicago, Chicago, Illinois, solely to pay any of said Water Revenue Bonds not presented for payment or exchanged by the holders thereof, plus interest to their respective maturity dates or the date on which they have been called for prior payment and redemption. The holders of $322,000 of the outstanding $500,000 Water Revenue Bonds have consented to exchange their bonds for Series 1963 Waterworks and Sewerage Revenue Bonds on a par for par basis and the holders of $170,000 thereof have agreed to sell their bonds at par and accrued interest. The holders of the remaining $8,000 are unknown. The Village will furnish the transcript of proceedings on which said opinion is based and a certificate of no-litigation then pending or threatened affecting the legality of the bonds or the right of the Village to issue them. Interest on the bonds is exempt, in the opinion of counsel, from Federal Income Taxes under present laws and regulations. The President and Board of Trustees have authorized the preparation of an Official Statement containing pertinent information relative to the Village, the Waterworks and Sewerage System and its finances. For copies of that state- ment or for any additional information, any prospective purchaser is referred to the undersigned at the Village Hall, Mount Prospect, Illinois, or the Municipal Finance Consultant of the Village, Paul D. Speer, 33 South Clark Street, Chi- cago 3, Illinois. Telephone: Financial 6-0858. June 1, 1963 / s/ RUTH C. WILSON Village Clerk OFFICIAL BID FORM Village of Mount Prospect Village Hall Mount Prospect, Illinois June 11, 1963 Gentlemen: For your $1,128,000 Village of .Mount Prospect, Illinois Waterworks and Sewerage Revenue Bonds, Series 1963, as described in the annexed Official Notice of Sale which is made a part of this bid and which bonds are to be obligations of the Village of Mount Prospect, Illinois, payable solely from the revenues derived from the combined waterworks and sewerage system of the Village of Mount Prospect, we hereby submit our bid for all or none of the said bonds as follows: 1. For $178,000 thereof numbered 430 and lower, and due May 1, 1964 through 1973, inclusive, we will pay you. .. .. .. .... ., .. .. ..... . .... . . ....... .... .... .......... .. .. .... ...... .. . $178,000.00 2. For $950,000 thereof maturing May 1, 1973 through 1987, inclusive, and numbered 431 and higher, we will pay you ............................................................... $ $ Total Bid ............................ Interest from May 1, 1963 to be added in each case. Bonds of each designated maturity shall bear interest as follows: $10,000 ........ 1964 % $50,000 ........ 1972 % $60,000 ........ 1980 % 10,000 ........ 1965 % 50,000 ........ 1973 % 75,000 ........ 1981 % 15,000 ........ 1966 % 55,000 ........ 1974 % 75,000 ........ 1982 % 10,000 ........ 1967 % 55,000 ........ 1975 % 75,000 ........ 1983 % 5,000 ........ 1968 % 55,000 ........ 1976 % 75,000 ........ 1984 % 8,000 ........ 1969 % 55,000 ........ 1977 % 75,000 ........ 1985 % 15,000 ........ 1970 % 50,000 ........ 1978 % 75,000 ........ 1986 % 45,000 ........ 1971 % 55,000 ........ 1979 % 75,000 ........ 1987 % We will designate our nomination for paying agent within 5 hours of the opening of the bids and should we fail to do so within that time, then the bonds and coupons may, at your option, be made payable at a bank of your choice. As evidence of our good faith, we enclose herewith a check to the order of the Village Treasurer of the Village of Mount Prospect, Illinois, in the sum of $25,000 under the terms provided in your Official Notice of Sale. Attached hereto is a list of the members of our account on whose behalf this bid is made. Description of Check: Amount: $25,000 Name of Bank Respectfully submitted, Name Account Manager State By Address City State N .B.: Our calculation of interest cost from above is: City Certified (cashier's) Check No. Dated Total Interest ............................. $ Less Premium or Plus Discount ............ $ Net Interest .............................. $ Net Interest Rate ......................... The above check was returned and received for the above named Account Manager By % The foregoing bid was accepted and bonds sold by resolution of the President and Board of Trustees of the Village of Mount Prospect, Illinois, June 11, 1963 and receipt is hereby acknowledged of the good faith check which is being held in accordance with the terms of the annexed Official Notice of Sale. ATTEST: VILLAGE OF MOUNT PROSPECT, ILLINOIS Village Clerk Village President TABLE OF BOND YEARS From May 1, 1963 (For purposes of computation only. Not part of bid.) Bond Cumu- Coupon Bond Cumu- Coupon Year Maturity Years lative Rate Interest Year Maturity Years lative Rate Interest 1964 $10,000 10 10 -% $ 1976 $55,000 715 3,583 -% $ 1965 10,000 20 30 -% $ 1977 55,000 770 4,353 -% $ 1966 15,000 45 75 -% $ 1978 50,000 750 5,103 -% $ 1967 10,000 40 115 -% $ 1979 55,000 880 5,983 -% $ 1968 5,000 25 140 -% $ 1980 60,000 1,020 7,003 -% $ 1969 8,000 48 188 -% $ 1981 75,000 1,350 8,353 -% $ 1970 15,000 105 293 -% $ 1982 75,000 1,425 9,778 -% $ 1971 45,000 360 653 -% $ 1983 75,000 1,500 11,278 -% $ 1972 50,000 450 1,103 -% $ 1984 75,000 1,575 12,853 -% $ 1973 50,000 500 1,603 -% $ 1985 75,000 1,650 14,503 -% $ 1974 55,000 605 2,208 -% $ 1986 75,000 1,725 16,228 -% $ 1975 55,000 660 2,868 -'Yo $ 1987 75,000 1,800 18,028 -% $ Total Bond Years: 18,028 Years Total Interest ............. $ Average Maturity: 15.9823 Years Discount/Premium ..... ... $ (Average maturity from July 1, 1963 is 15.816 years.) Net Interest .............. $ Effective Rate ............ % New Issue Date of Sale: June II, 1963 Noon C.D.S.T. OFFICIAL STATEMENT $1,128,000 VILLAGE OF MOUNT PROSPECT ILLINOIS Waterworks and Sewerage Revenue Bonds, Series 1963 Official Statement Prepared By PAUL D. SPEER Municipal Finance Consultant 33 South Clark Street Chicago 3, Illinois Telephone: FInancial 6.0858 TABLE OF CONTENTS Maturities ........................................................ . Redemption Provisions .............................................. Purpose ........................................................... Legality and Security ............................................... General Information ................................................ Commerce ......................................................... Industry .......................................................... Financial Information ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessed Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax Extensions and Collections .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of Bonded Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \Vaterworks and Sewerage System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refunding ......................................................... Proposed Improvements to Existing System. . . . . . . . . . . . . . . . . . . . . . . . . . . . Acquisition of New System .......................................... Evaluation of System ........................................... Effect of Acquisition ............................................ Costs and Funds to be Provided. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rates ............................................................. Bond Ordinance .................................................... 9 Operation and Maintenance Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Bond and Interest Account ...................................... 9 Bond Reserve Account .......................................... 9 Depreciation, Improvement and Extension Account. . . . . . . . . . . . . . . .. 10 Surplus Revenue Account........................................ 10 Investment of Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10 Parity Bonds .................................................. 11 General Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-12 Historical Operations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Table 1 Flow of Funds .................................................. Table 2 Page 1 1 1 1 2 2 3 4 4 4 4 4 5 5 6 7 8 8 8 9 New Issue Date of Sale: June 11, 1963 Noon C.D.S. T. OFFICIAL STATEMENT Interest Exempt From All Present Federal Income Taxes $1,128,000 VILLAGE OF MOUNT PROSPECT, ILLINOIS Waterworks and Sewerage Revenue Bonds, Series 1963 (Total Authorized Issue-$1,450,000) Dated May 1, 1963 Coupon Bonds Due Serially May 1, 1964.87, inclusive Registerable As To Principal Only Denomination $1,000 Principal and semi-annual interest (May 1 and November 1) will be payable at such bank in the City of New York, New York, or Chicago, Illinois, as may be mutually agreed upon by the purchaser and the Village. First coupon due November 1, 1963. MATURITIES-May 1 $10,000 .................. 1964 $50,000. . . . . . . . . . . . . . . . .. 1972 $60,000. . . . . . . . . . . . . . . . .. 1980 10,000 .................. 1965 50,000 .................. 1973 75,000 .................. 1981 15,000 .................. 1966 55,000 .................. 1974 75,000 .................. 1982 10,000 .................. 1967 55,000 .................. 1975 75,000 .................. 1983 5,000 .................. 1968 55,000 .................. 1976 75,000 .................. 1984 8,000 .................. 1969 55,000 .................. 1977 75,000 .................. 1985 15,000 .................. 1970 50,000 .................. 1978 75,000 .................. 1986 45,000 .................. 1971 55,000 .................. 1979 75,000 .................. 1987 Bonds due May 1, 1964 through May 1, 1974, inclusive, are not callable prior to maturity. Bonds due May 1, 1975-87, inclusive, are callable at the option of the Village in whole or in part, at par and accrued interest, from the revenues of the system only, on any interest payment date on or after May 1, 1974, and in whole or in part from any funds other than revenues on any date on or after May 1, 1978. If fewer than all bonds issued are called for redemption at any time, the bonds shall be redeemed in the inverse order of their maturity and by lot within a maturity. Notice of redemption shall be given by publication at least once, not less than 30 days prior to the date of redemption, in the Bond Buyer, or in the event it ceases to be published, then in a financial newspaper published in New York, New York, or in Chicago, Illinois, and should redemption be on other than an interest payment date, once again not more than 30 days nor less than 15 days prior to redemption. PURPOSE The proceeds of these bonds will be used to refund all of the outstanding $500,000 Water Revenue Bonds of four different issues; to improve and extend the existing waterworks system of the Village of Mount Prospect; and to acquire the existing waterworks and sewerage system operated in the Village as a private utility by the Cook County Water Corporation, as provided in a purchase contract by and be- tween said utility and the Village, all more fully described herein, and in accordance with the plans and specifications therefore prepared by Consoer, Townsend & Associates, Chicago, Illinois and now on file. The following Series 1963 bonds, aggregating $322,000, will be exchanged for $322,000 Water Revenue Bonds of various series, according to an agreement with the holders thereof: $30,000 each 1964-66; $35,000 1967; $40,000 1968; $42,000 1969; $35,000 1970; $5,000 each 1971-76; $10,000 1977; $15,000 each 1978-79; $10,000 1980. The above listed bonds are not being offered for sale. LEGALITY AND SEOURITY These bonds, in the opinion of bond counsel, Messrs. Chapman and Cutler, Attorneys, Chicago, Illi- nois, will constitute valid and legally binding obligations of the Village of Mount Prospect payable solely from the revenues of the waterworks and sewerage system of the Village in the manner set forth in the ordinance authorizing them and in no event shall constitute an indebtedness of the Village within the meaning of any constitutional or statutory limitation. The Village will furnish the written approving opinion of said bond attorneys evidencing legality of the bonds and that the interest thereon is exempt from Federal Income Taxes under existing laws and regulations. The information in this statement has been compiled from sources believed to be reliable, but is not guaranteed as far as any statements herein involve matters of opinion, whether or not so stated. Opinions are intended merely as such and not as representations of fact. This Official Statement has been prepared under authority of the President and Board of Trustees of the Village of Mount Prospect, Illinois. Additional copies may be secured from Ruth C. Wilson, Village Clerk, Village Hall, Mount Prospect, Illinois, or from the Financial Consultant of the Village: PAUL D. SPEER 33 South Clark Street Chicago 3, Illinois Telephone: FInancial 6.0858 ~1I7 r f' /,1 VILLAGE OF MOUNT PROSPECT, ILLINOIS Clarence O. Schlaver, President Board of Trustees Village Officials Frank R. Bergen John Bickley, Jr. Harry R. Bruhl William G. Casterline Parker Ekren William L. Phillips Harold G. Appleby, Manager James C. King, Finance Director Ruth C. Wilson, Clerk Edward C. Hofert, Attorney David L. Creamer, Superintendent, Water and Sewer Department PURPOSE OF ISSUE These bonds are being issued by the Village of Mount Prospect for the purpose of refunding four out- standing issues of Water Revenue Bonds in the total principal amount of $500,000; paying the cost of certain additions to and extensions of the existing waterworks system, including: a new well, pump and controls, rehabilitation of existing wells and a pumping station, replacement of chlorination equipment, reinforcement of the distribution system of mains; the purchase of an existing water and sewer system operated as a private utility in a recently annexed area, all more fully described herein and in accordance with the plans and specifications therefor prepared for the Village by Consoer, Townsend and Associates, Consulting Engineers, Chicago, Illinois, previously approved and now on file. GENERAL INFORMATION Mount Prospect lies approximately 25 miles northwest of the Chicago Loop and is primarily a resi- dential suburb. The Village was first settled in the early 1870's. The Chicago and North Western Rail- way erected a station in 1875. Incorporation was effected on February 3, 1917, five years prior to the installation of the waterworks system. The Village is within two townships, Elk Grove and Wheeling. The Village government consists of a president and six trustees, who together form the Village Board. Administrative duties are handled by a Village Manager and a Finance Director. COMMUNITY FACILITIES The police department is staffed by 24 officers, one policewoman, and a radio clerk. There are six radio equipped cars and a police photo lab is under construction. The staff regularly attends the police classes conducted by the Federal Bureau of Investigation and members have attended the Northwestern University Traffic Institute. The Fire Department is manned by 13 full time and 24 volunteer firemen, who operate two 1,000 gallon pumpers, one 1,500 gallon pumper, one 1,000 gallon tank truck and an aerial ladder truck, all of which are radio equipped. The Village Library has a current circulation of approxi- mately 179,350, including books, pamphlets, films and recordings. The :Mount Prospect Park District operates several parks including two with swimming pools and one with an 18-hole golf course. Three school districts overlap the Village. Elementary School District Number 57 had an enrollment of 4,400 pupils in the fall of 1962, attending seven grade schools. An eighth school is now under construction. School District Number 59 overlaps a very small portion of the Village. In High School District Number 214 there are three high schools serving students from Mount Prospect, Arlington Heights, Wheeling and Elk Grove Village. In addition, there are two parochial grade schools in Mount Prospect with a com- bined enrollment of approximately 1,500 students. COMMERCE The development of Mount Prospect as a residential suburb has given rise to an increase in the number of stores and shopping areas within the Village. There are three main shopping areas, namely downtown Mount Prospect, Mount Prospect Plaza, and Randhurst. The three areas combined contain approximately 215 stores. An estimated business volume of $100,000,000 annually is expected when the new areas are fully developed. The Randhurst shopping center is expected to provide a substantial increase in sales tax revenue for the Village. The increase has already been noticed, the Village portion of sales tax receipts from all retail units within the Village having risen from $12,229 for July 1962 to $29,975 in January 1963. Randhurst was opened August 15, 1962. The latter project, valued at $21,500,000 is jointly owned by three major Chicago department stores, Carson Pirie Scott & Co., Montgomery Ward & Co., and Wieboldt Stores, Inc., each of which has a store 2 in the shopping center. In addition to those three stores, there are 66 other stores, offices and meeting rooms. It covers 100 acres, of which the commercial area of 1,250,000 square feet is all under one roof and is centrally heated and air conditioned. Parking is provided for 7,500 cars in asphalt paved lots covering 60 acres. There are presently employed in the project 1,750 persons. Water consumption of the project is quite high, 28,722,000 gallons having been billed from June 1, 1962 through April 1, 1963. In order to provide adequate storage for use and fire protection, the Randhurst Corporation has erected a 150,000 gallon elevated tank, connected to the Mount Prospect Water System by a lO-inch main. The annual Village sales tax receipts, figured at the rate of % of 1% of retail sales, indicate a sub- stantial increase in sales. Retailers' Occupation (Sales) Tax Receipts (January I-December 31) 1958 ....................................... 1959 ....................................... 1960 ....................................... 1961 ....................................... 1962 .............. ...... ................... 1963 January and February................. $ 61,220 77,039 87,917 127,310 223,229 52,790 Postal Beceipts (Year Ending June 30) 1959 1960 1961 1962 $226,835 255,725 304,419 355,118 Three banks and one savings and loan association report the following figures at the latest reporting dates: Name nlount Prospect State Bank ........................... Prospect Plaza Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Randhurst Bank ..................................... nlount Prospect Federal Savings and Loan Association .. Deposits $23,513,359 2,341,649 1,568,728 7,323,654 Assets $25,344,345 2,899,736 2,154,316 8,393,561 Date nlarch 8, 1963 nlarch 8, 1963 nlarch 8, 1963 Dec. 31, 1962 INDUSTRY A recently planned industrial park containing 100 acres is expected to add grea1l1y to the 13 industries presently located within the Village. The following are some of the larger employers and their products: Name Product Charles Bruning Co., Inc. ......................... Photocopy machines J. O. Ross Engineering .......................... .Processing system designs Illinois Range Company .......................... Commercial food service equipment Buhrke Tool & Engineering ....................... Food packaging molds Weber Addressing nlachine Co. ................... . Stencils and label printing machinery Kartridg Pak Company .......................... .Food packaging machinery In addition to those companies listed above, Public Service Company and Illinois Bell Telephone Com- pany have facilities in the Village which together employ approximately 315 people. The goods produced in Mount Prospect are shipped via the Chicago and Northwestern Railway, which serves the Village and by truck over an excellent system of roads, as U. S. Highways 14 and 12, as well as Illinois Route 83 pass through the Village. The Illinois Tri-State Tollway is within three miles and the Northwest Tollway is within four miles. 0 'Hare International Airport is within a 15 minute drive. Building Permits New Industrial New & Total Year Residential Value Commercial Value Permits Total Value 1958 ............. ........... 532 $7,695,975 14 $ 716,250 793 $10,616,260 1959 .. .................. .... 401 5,864,527 16 1,324,645 659 10,695,468 1960 .. ......... ..... ... ... 273 4,217,882 17 341,600 501 5,597,556 1961 ..... .................... 257 3,661,143 12 9,125,650 518 13,424,683 1962 . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 245 6,125,493 65 2,593,754 523 9,780,732 1963 (4 months) ........... .. 58 1,433,900 4 120,000 140 2,032,254 3 r" ~. -~ - FINANCIAL INFORMATION Assessed Valuation (Approximately 55% of Actual Value) Real Personal Railroad Property Property Property Total Value $41,418,808 46,780,544 57,363,841 62,995,768 68,196,686 73,498,521 1957 ... ........ ....... $38,549,788 $2,609,986 $259,034 1958 . ...... .... ....... 43,625,825 2,895,454 259,265 1959 ..... .... .... ... IO. 53,299,306 3,812,540 251,995 1960. ........... ....... 57,999,405 4,744,318 252,045 1961 ................. . 62,775,937 5,176,084 244,665 1962 ... ..... IO...... ... 67,167,378 6,100,500 230,643 Tax Rates-Per $100 Assessed Valuation 1958 1959 1960 1961 1962 Cook County (Including T. B. Sanitarium) ... ..........0.. ... $ .344 $ .318 $ .364 $ .296 $ .370 Wheeling Township (Including Road & Bridge) ... ........... .092 .084 .086 .088 .088 Metropolitan Sanitary District . .............. ......... ..... .394 .350 .340 .438 .408 Mosquito Abatement District ...................... IO.... ... .026 .022 .026 .026 .026 Forest Preserve District .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .048 .046 .046 .042 .054 Mount Prospect Park District .............................. .184 .144 .154 .330 .264 High School District No. 214 .... ............,....... IO..... 1.518 1.286 1.324 1.490 1.464 School District No. 57 ..................................... 1.946 1.730 1.878 1.924 1.866 Village of Mount Prospect ......... . . . . . . . . . . . . . . . . . . . . . . . . .462 .432 .482 .570 .502 $5.014 $4.412 $4.700 $5.204 $5.042 NOTE: A portion of the Village lies within Elk Grove Township, for which area tax rates vary slightly from those shown above; Current and Levy Collection Taxes Current % Current Delinquent % Total Year Year Extended Collections Collections Collections Collections 1957 . .... .... . .... ...... IO. ... 1958 $158,220 $151,516 95.7% $156,727 99.0% 1958 . .................. ....-. 1959 216,126 206,367 95.4% 210,752 97.5% 1959 ......... ............ ... 1960 247,812 234,103 94.5% 237,506 95.8% 1960 ........... ...... ....... 1961 303,315 284,480 93.8% 2~4,612 97.1% 1961 . .......... ..... ........ 1962 388,721 369,431 95.0% 369,431 95.0% 1962 . .... .......... .... ..... 1963 368,963 (In Collection) Tax Extensions and Collections (Village Purposes Only) STATEMENT OF BONDED INDEBTEDNESS (May 1, 1963) Assessed Valuation, 1962 ........................................................................ Direct Bonded Debt: General Obligation Bonds: Municipal Building ............................................................. $ 220,000 Public Library ..............................................................:.. 207,000 Fire Equipment ................................................................ 60,000 TOTAL ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overlapping Bonded Debt: (Amount applicable to Mount Prospect) Cook County (exclusive of motor fuel tax bonds) .................................. $ 160,820 Cook County Forest Preserve District ............................................ 50,600 Metropolitan Sanitary District ................................................... 258,273 Mount Prospect Park District. . .......... ..... .. ...... . . .... .... . . .. .. .. .... .. .. . 1,204,797 High School District No. 214 .................................................... 1,998,808 School District No. 57 ........................................................... 2,626,200 TOTAL .................................................................................... Total Direct and Overlapping Debt .............................................................. $73,498,521 487,000 6,299,498 $ 6,786,498 1950 U. S. Census 1960 U. S. Census 1963 Special Census Ratio of Bonded Debt to Assessed Valuation: Population ............................ 4,009 . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18,906 . . . . . . . . . . . . . . . . . . . . . . . . . .. 22,945 Direct Only ............................... Direct and Overlapping .................... Direct Only ............................... Direct and Overlapping .................... .66% 9.23% $ 21.17 $295.06 Per Capita Debt: Revenue Bonds (This Issue) $1,450,000 Waterworks and Sewerage Revenue Bonds, Series 1963 4 WATERWORKS AND SEWERAGE SYSTEM Existing System Wells and Pumps The Village presently obtains all its water from five wells, one of which is used only during periods of emergency. Total capacity of those wells at March 1, 1963, based on figures of Consoer, Townsend and Associates, Consulting Engineers, was 5.342 MGD (million gallons per day). The wells are pumped by line shaft pumps, water flowing into reservoirs after aeration. Total ground storage capacity is 2,060,000 gallons with a 1,000,000 gallon tank riding on the system. Water is pumped into the distribution system at three pumping stations containing high service pumps having a total capacity of 12.175 MGD, of which 7.705 MGD is provided by electric pumps and 4.47 MGD by gasoline driven pumps. Pump age has stead- ily increased from 417,054,000 gallons billed during the fiscal year ending April 30, 1959, to 640,139,000 gal- lons billed during the fiscal year ending April 30, 1963. Chlorination equipment is maintained at all three pumping stations. During the fiscal year ending April 30, 1963 the Village initiated phosphate treatment for iron content control. Extensive rehabilitation of one well was recently completed, including a new oil lubricated pump to replace a water lubricated pump, and a new 350 horsepower motor. That well is now rated at 1,350 GPM, the highest rating of the five wells in service. The well was deepened as a part of that project, the pump having been set at 900 feet, which will insure adequate pumpage for at least five years despite the expected water table drop of 25 to 30 feet per year. It is estimated that the rehabilitation will provide 36,000,000 gallons additional capacity annually. Distribution System The system is composed of 61.75 miles of cast iron main in the following sizes and also includes 760 hydrants in addition to gate valves, boxes and valve manholes in various sizes and quantities. Water Mains Size 4 inch 6 inch 8 inch 10 inch 12 inch 14 inch Length 1.453 miles 41.731 miles 9.910 miles 7.042 miles 1.593 miles .021 miles TOTAL ................... .'............. 61.750 miles Sanitary Sewer System The sewer system presently serving the Village consists of mains and interceptors owned and main- tained by the Metropolitan Sanitary District of Greater Chicago. A monthly sewer use charge of $2.50 for residences and $4.00 for commercial users is billed quarterly by the Village and is remitted upon col- lection to the Sanitary District, the Village being reimbursed for clerical expenses. The charge will be the same in the newly annexed areas, but the Village will retain the proceeds. In addition to the waterworks and sewerage system above mentioned, the Village has the option of purchasing, on July 1, 1967, a waterworks and sewerage system owned by the Utility Sewer and Water Corporation, serving an area partly within and partly without the present Village limits. The option agree- ment was entered into December 1, 1962, and provides for purchase of the facilities at the following prices: Water: $350.00 per metered single family residence; $100.00 per apartment unit; industrial and commer- cial unit prices to be negotiated using a formula based upon the $350 single family unit charge. Sewer: $250.00 per single family residence and per commercial user; $100.00 per apartment unit. In the event of the exercise of the option, the water and sewer rates in the area served by Utility Sewer and Water Corporation will be aligned with the rates then in force in the Village of Mount Prospect, and the water- works and sewerage system will be integrated with the Mount Prospect combined waterworks and sewerage system. The cost of such acquisition can be met only through the issuance of bonds according to the par- ity bond provisions of the ordinance passed May 14, 1963 authorizing the issuance of the $1,450,000 Wa- terworks and Sewerage Revenue Bonds herein described. REFUNDING OF OUTSTANDING WATER REVENUE BONDS There are presently outstanding $500,000 Water Revenue Bonds of the Village comprised of $30,000 Series 1949, $40,000 Series 1953, $330,000 Series 1955, and $100,000 Series 1960, which bonds will be 5 r \ refunded as a part of this financing. The above bonds are of varying maturity dates and were issued under separate ordinances, containing different provisions. Those factors, in conjunction with the fact that a sewer system will be acquired as a part of the program, caused the Village to decide to refund the Water Revenue Bonds and to issue Waterworks and Sewerage Revenue Bonds. Of the outstanding Water Revenue Bonds, $322,000 will be exchanged for Waterworks and Sewerage Revenue Bonds, Series 1963, and $178,000 will be paid from the proceeds of the sale of $178,000 bonds of this issue, being a part of the $1,128,000 now being sold, the total comprising the $1,450,000 Waterworks and Sewerage Revenue Bonds, Series 1963. The maturities and debt service of the $322,000 bonds to be exchanged is included in Table No. 2 showing the flow of funds. PROPOSED IMPROVEMENTS Upon the recommendation of Consoer, Townsend and Associates, the Village has maintained a pro- gram of maintenance and rehabilitation of its water facilities, much of which has heretofore been paid for from current funds. A list follows of the improvements to the present system to be financed with the proceeds of this bond issue in conjunction with funds on hand: Wells, Pumps and Treatment Well Number 3 Enlarge well, both in diameter and depth; install new eleven-stage pump, 250 HP motor and 4-speed motor control. Well Number 6 Remove existing submersible pump and motor; install new line shaft pump and vertical hollow shaft motor; adapt existing controls; construct masonry pumphouse including equipment for phosphate treatment. Well Number 7 (New Well) Drill and develop new well approximately 1900 feet deep; install line shaft, vertical turbine pump and motor of 1200 g.p.m. capacity; construct masonry pump house including all necessary piping, meters, valves and motor controls; construct lO-inch well collecting main from this well to existing reservoir. Booster Pump Electrification Install 50 HP combination motor starter, new breaker and necessary wIrmg, including reVISIon of Healy-Ruff control equipment at Waverly Place pumping station. Install necessary control equipment to integrate this station with existing supervisory control system. Pump Replacement Remove No.1 pump at Highland Avenue station. Install new pump and motor, including necessary piping and valves; adjust existing motor controls. Remove pump at Pine Street station and install No.1 pump removed from Highland Avenue station; install new piping, valves, and priming lines; install new starter motor, including wiring and electric service from main breaker at Well No.4. Chlorination Facilities Replace chlorinator at Waverly Place pumping station; replace two chlorinators at Highland Avenue pumping station, together with modernization of pacing system. Distribution System Install an S-inch reinforcing main in Thayer Street from Fairview A venue, a lO-inch reinforcing main in Northwest Highway from Forest to Kenilworth, then south along Chicago and North Western Railway to Prospect Avenue, then to Waverly Place adjacent to Well No.4. Eliminate dead ends and close gaps in system at various points; extend mains where necessary to connect with system to be acquired from Cook County Water Corporation. 6 ACQUISITION Part of the proceeds of this bond issue will be used to acquire the properties of the Cook County Water Corporation, as described below, and to make certain necessary improvements thereto. The following excerpts from the report of GREELEY AND HANSEN, ENGINEERS, Chicago, Illinois, dated June 1962, analyzes the facilities of the Cook County Water Corporation, hereinafter referred to as the Corporation. Source of Supply The Cook County Water Corporation maintains two wells which are located on a triangular site at 1818 Bonita Avenue in Hatlen Heights. The main well is approximately 1,800 feet deep, penetrating the Mt. Simon sandstone, and is equipped with a 150 h.p. motor-driven Peerless pump rated at 650 gallons per minute against a total dynamic head of 545 feet. At the present time, the static level in this well is said to be at 466 feet, and the average drawdown is 40 feet. The pump is set at 600 feet. The auxiliary well is about 180 feet deep, penetrating the Niagaran limestone, and is equipped with a 15 h.p. motor-driven Peerless pump rated at 100 gallons per minute against a total dynamic head of 302 feet. Both pumps are equipped for automatic operation, controlled by system pressure. Each pump is housed in a separate concrete block building. Water System Treatment and Storage Water treatment consists of the addition of a mixture of sodium tripolyphosphate and calcium hypo- chlorite for corrosion and iron control. The water is chlorinated. Storage is available in three ground level hydro-pneumatic tanks, having a gross capacity of about 50,000 gallons (2-20,000 gallon tanks and 1-10,000 gallon tank.) Usable storage, assuming an operating pressure range of 30 to 50 psi, would be about 11,000 gallons. Distribution System The distribution system consists of approximately 25,000 lineal feet of 6 inch and 8 inch cast iron pipe, 50 valves and 58 fire hydrants. All water service connections are owned by the utility to the property line, and consists of % inch copper pipe, corporation cocks, curb stops, and buffalo boxes. All customers are reported to be metered by corporation owned meters. The distribution system is adequately sized and valved and has a sufficient number of fire hydrants. Most valve extensions in Hatlen Heights have not been raised to grade and cannot be located readily. Valves in Colonial Heights have been installed in basins and can be readily located. The distribution sys- tem within Hatlen Heights is well looped, as is the distribution system within Colonial Heights, which has only one supply main from Hatlen Heights. In general, static pressures and hydrant flows throughout the system appear to be satisfactory. Fric- tion coefficients are acceptable. Fire flows in the system are limited by pump capacities, because of limited storage. The distribution system is capable of carrying the required flows. In the case of power outage, the system would be completely out of service. The report on Water Works Improvements for Mount Prospect by Consoer, Townsend and Associates estimates fire flow requirements in Mount Prospect at 8.346 MGD, firm pump capacity at 9.685 MGD, and standby engine-driven pump capacity at 8.47 MGD. The addition of the Cook County Water Corporation customers to the Mount Prospect System will probably increase the fire flow requirements to 8.43 MGD, which is still within the capabilities of the existing Mount Prospect facilities. Sanitary Sewer System The system, comprising 95 manholes and 24,300 lineal feet of vitrified clay pipe ranging in size from 8 inch to 12 inch, provides sanitary sewer service to all developed lots or Hatlen Heights, HatIen Estates, and Colonial Heights. Service is also provided to two homes outside of the subdivisions. The sanitary sewage is discharged into intercepting sewers or the Metropolitan Sanitary District of Greater Chicago at Weller Creek and Lincoln and at Estates Drive and Busse Road. The entire system is gravity flow. Separate storm drains which discharge into natural drainage courses are provided in each subdivision. The sanitary sewer system is adequately sized. Over-all construction is satisfactory, as judged from manhole inspections. Estimates of flow calculated from depth of flow measurements in manholes at Bonita and Hatlen, and Lincoln just preceding the Metropolitan Sanitary District of Greater Chicago interceptor indicate infiltration is not excessive. 7 r I Evaluation of System To Be Acquired During 1961, the Corporation delivered 26.1 million gallons of water to an average of about 349 homes. In the quarter ending March 1962, 6.0 MG were delivered to 386 customers, distributed as follows: Total Occupied Area Homes Homes(a) Pumpage Hatlen Heights ................................... 308 Colonial Heights and Hatlen Estates ............... 92 Total ...... ...... ........ .....1 II.... .... I. ........ 400 306 80 386 4.9 MG 1.1 MG 6.0 MG Note: (a) At March 6, 1963, there were 454 homes and one school connected to the system. Thirteen additional homes were under construction. It is anticipated that upon completion in 1965, the area will contain approximately 600 homes. Since the facilities do not include a master meter, the above pumpage is based upon customer meter readings and does not include leakage. The general condition of the water system is satisfactory. Integra- tion of the system into the Mount Prospect water system will be accomplished as a part of the improvement program above. Improvement of the system to be acquired will include rehabilitation of the sandstone well and lowering the pump by adding additional stages, thereby increasing the reserve capacity. '*' '*' '*' '*' '*' '*' Effect of Acquisition and Improvements On Water Supply It is estimated by Greeley and Hansen that maximum demand of Mount Prospect and the newly an- nexed area served by the facilities to be acquired is 5.488 MGD. The total capacity of the Mount Prospect system, including the reserve limestone well and the estimated capacity of the well to be constructed with part of the proceeds of this issue, is 6.782 MGD. The. combined capacity of the two wells to be acquired is .686 MGD, as previously stated. Therefore, total capacity of the combined systems will be 7.468 MGD, or 1.980 MGD in excess of the combined maximum demand. Taking into consideration the engineering maxim that total capacity 'should equal the maximum day demand, the above figures show that the com- bined system has capacity far in excess of the recommended capacity and is in fact 1.36 times the maximum day demand. A breakdown of the well facilities of the combined system is as follows: Cook County Water Corporation Well Capacity No. (MGD) Mount Prospect Well Capacity No. (MGD) Combined 2 3 4 5 6 7 Total .144 (Reserve use only) .840 .978 1.862 1.518 1.440 (estimated) 6.782 1 2 .110 (reserve only) .576 .254 1.416 .978 1.862 1.518 1.440 7.468 MGD .686 Water Consumption: Maximum Day 5.338 .150 Excess capacity over maximum day demand 5.4g8 MGD 1.980 MGD Costs and Funds To Be Provided Costs Improvements to existing system ...................................... $ Engineering ....................................................... Acquisition and Improvement of Cook County Water Corporation. . . .. . . . . Contingency Allowance ............................................... Refunding of Water Revenue Bonds ....... .......... ............ ....... Revenue Bond Discount (Maximum) .................................... Legal, fiscal and administrative costs .................................. TOTAL COSTS ......... "' "' ........ .................. ..... 426,763 33,137 425,000 57,800 500,000 15,000 32,300 $1,490,000 Funds To Be Provided Waterworks and Sewerage Revenue Bonds, Series 1963 .................. Village funds on hand (a) ............................................ $1,450,000 40,000 TOTAL FUNDS ........................................... $1,490,000 Note: (a) In addition, there will be deposited from funds on hand, $20,000 to the Bond Reserve Account and $25,000 to the Depreciation, Improvement and Extension Account. 8 Bates The existing rates for water, as listed below, will continue to be charged and will be uniform through- out the Village. The present sewer rates charged in Mount Prospect are collected by the Village and paid to the Metropolitan Sanitary District, the Village being reimbursed for clerical expenses. Sewer rates in the area heretofore served by the Cook County Water Corporation will be equal to the rates charged in other areas of the Village, but will be retained by the Village. Water Bates per 1,000 gallons Quarterly Minimum ................... 0- 10,000 gallons .................. next 10,000 gallons .................. next 10,000 gallons .................. next 20,000 gallons .................. next 60,000 gallons .................. over 100,000 gallons .................. $3.00 @ .45 @ .43 @ .40 @ .38 @ .35 @ .32 Sewer Bates Quarterly Flat Rates: Residential ......................... Industrial ............ . . . . . . . . . . . . . . $ 7.60 12.00 A rate ordinance putting into effect the above rate schedule will be passed prior to the sale of the bonds herein described. BOND OBDINANOE An ordinance authorizing the issuance of these bonds has heretofore been adopted and published, and will be in full force and effect prior to the date of sale of the bonds. This ordinance sets forth a brief description of the improvements to be made to the existing. waterworks system; the facilities to be acquired and the improvements to be added thereto; the bonds to be refunded; and a complete description of these bonds and provisions for the issuance of additional bonds and the use of the revenues of the system, based upon fiscal years ending April 30. Upon the sale of the bonds, a resolution will be adopted setting the interest coupon rates and place of payment. Reference should be made to the bond ordinance for exact details, the pertinent sections of which appear below. FLOW OF FUNDS From and after the delivery of these bonds all revenue of the system from every source shall be de- posited in a bank account separate and apart from all other Village bank accounts to be designated and accounted for as a separate accounting fund known as the "Waterworks and Sewerage Fund of the Village of Mount Prospect." Money in this revenue fund is required to be set aside each month into each of the several accounts created by the ordinance. Those accounts together with the amount to be credited thereto are respectively set out hereinafter in the order in which the credits are to be made. All credits shall be as of the first business day of each month and shall include all receipts to the end of the immediately preceding month. Operation and Maintenance Account-Section 9(1.) This account shall be credited with an amount sufficient to pay the reasonable expenses of maintenance and operation of the system for the next succeeding month including all of such expenses usual in such a system and one-twelfth of expenses computed on an annual basis, such as insurance. Bond and Interest Account-Section 9(b) Beginning May 1, 1963, this account is to be credited each month with not less than one-fifth of the amount of the next maturing interest coupon on all outstanding bonds and an amount equal to one-tenth of the amount of principal due on the following May 1 until the full amounts of such interest and prin- cipal are on hand for each payment. Money in this account, together with the required amount of fiscal agency fees from the Operation and Maintenance Account shall be transmitted to the paying agent not less than fifteen days prior to the due date of any interest or principal. This account shall receive all ac- crued interest derived from the sale of the bonds. Bond Beserve Account-Section 9(c) Beginning May 1, 1963 this account will be credited with the sum of $12,000 each year in equal monthly installments until all bonds have been paid or provided for. This account is to be used to pay maturing interest or principal whenever funds are not available for that purpose in the Bond and Interest Account. In addition, whenever the balance in this account equals the maximum principal and interest requirements 9 r" ~ on all outstanding bonds and parity bonds of the system for any future fiscal year, the surplus above such amount shall be used for calling and redeeming those bonds that are callable prior to maturity, or pur- chasing by tender or on the open market, at not more than par and accrued interest, any of the bonds which are payable from the revenues of the system. No bonds shall be purchased within the 60 days im- mediately prior to the next succeeding redemption date of any bonds, but available money must then be used to call and redeem bonds. Depreciation, Improvement and Extension Account-Section 9(4) Beginning May 1, 1963 the annual credit in equal monthly installments to this account shall be $12,000 for the fiscal years ending April 30, 1964 through April 30, 1968, $18,000 for the fiscal years ending April 30, 1969 through April 30, 1973, and $24,000 for each fiscal year thereafter. Money in such account shall first be used to provide an adequate allowance for depreciation, the amount thereof to be determined from time to time by the President and Board of Trustees, or for extraordinary repair or replacements, or for improvements and extensions of the system, and shall be used to pay maturing principal or interest of any bonds of the system when no other funds are available for that purpose. Whenever the account ag- gregates the sum of $100,000, any sums in excess thereof may be transferred to the Bond Reserve Account, or to the Surplus Revenue Account in the discretion of the President and Board of Trustees. Surplus Revenue Account-Section 9(f) This account shall be credited at the end of each fiscal year with all money in the Waterworks and Sewerage Fund not otherwise transferred and shall be used first to make up any deficiencies in any of the other accounts of the system. After the foregoing credits are made, any sums remaining in said account may be transferred at the discretion of the President and Board of Trustees, to be used for any lawful pur- pose, including general administration of the combined system for which purpose the annual transfer shall equal 10% of the annual gross revenues, or such other percentage as the President and Board of Trustees may establish. Investment of Funds-Section 9 (g) Any money in the Waterworks and Sewerage Fund may be invested in direct obligations of the United States maturing not later than the earliest date on which the moneys in the respective accounts will be needed, but in no event later than two years from the date of any investment. Such securities shall be sold whenever funds are needed. Earnings of any funds invested, as well as profits or losses on any such investments shall be credited to the account for which such investment was made. Uninvested money on hand shall at all times be deposited in banks selected by the President and Board of Trustees as deposi- taries, in bank accounts separate from all other Village moneys. Money in the Waterworks and Sewerage Fund may be deposited in a single bank account except the Bond and Interest Account and the Bond Reserve Account which shall be deposited in one or more separate bank accounts. Acquisition and Construction Fund Account-Section 18 The proceeds of the bonds, exclusive of accrued interest from the purchaser, which shall be transferred to the Bond and Interest Account, shall be placed in the "Acquisition and Construction Fund Account of the Village of Mount Prospect" and kept separate and apart from all other funds of the Village. This Account shall be deposited in a bank or banks designated as depositaries by the President and Board of Trustees or may be invested from time to time in direct obligations of the United States having a maturity date not later than the date or dates on which such funds will be needed, as determined from time to time by the President and Board of Trustees. The proceeds of those bonds sold and delivered for refunding purposes shall be applied to the payment of the outstanding Water Revenue Bonds. Funds shall be dis- bursed upon orders signed by the President and Clerk or such other officer or officers authorized to sign or countersign orders on the Treasurer, which orders shall specifically state the purpose for which issued, that the payment has been approved by the President and Board of Trustees and, if made to a contractor for work done in connection with construction, shall be accompanied by a certificate executed by the engi- neer in charge of construction stating the nature of the work completed and that the amount thereof is due and payable. Cost of engineering, legal, fiscal and other services incidental to the improvements and acquisition herein described are deemed items of cost of acquisition and construction. Within sixty days after com- pletion of the acquisition and improvements provided for herein, unexpended money in the Acquisition and Construction Fund Account shall be transferred to the Depreciation, Improvement and Extension Account. 10 Ratea-Section 11 By the ordinance the Village covenants to charge all users of the system, including the Village, such rates as shall be adequate to meet the requirements of the ordinance. The Village has reserved the right to refrain from charging itself for water or sewer services so long as the revenues of the system are ade. quate to provide for the requirements of the Ordinance. The Village covenants that while any of the bonds are outstanding, the rates shall be sufficient to pay the cost of operation and maintenance, to pay matur- ing principal and interest on all outstanding bonds payable from the revenue of the system, and to pro- vide the minimum annual credits to the Bond Reserve Account and the Depreciation, Improvement and Extension Account. Such minimum annual credits are adequate to provide a mandatory coverage of esti- mated maximum annual principal and interest requirements of these bonds of more than 125%. Performance of Duty-Sections 12, 15. and 16 The Village covenants with the bondholders to perform punctually all duties with reference to the sys- tem required by the laws of Illinois and the ordinance, including the making and collecting .of sufficient rates, segregating the revenues and applying the respective accounts in accordance with the ordinance and further covenants not to sell, lease, loan, mortgage or in any manner dispose of the system while any of the bonds are outstanding or until provision has been made for their payment in full including interest provided, however, that the covenants shall not prevent the Village from disposing of property which in the judgment of the President and Board of Trustees is no longer useful or. profitable to the system, nor essential to the continued operation of the system. The Village further covenants to maintain the system in good condition, to operate it continuously and to maintain insurance of the same kind which would normally be maintained by others operating such a system, and to refrain from granting any franchise for a competing waterworks and sewerage system. The ordinance specifically provides that it shall constitute a contract between the Village and the holders of the bonds and recognizes the right of any bondholder to enforce by suit, mandamus or otherwise, any of the duties required by the ordinance, including the making and collecting of sufficient rates to meet the requirements and the proper application of revenues. No changes or modifications in the ordinance can be made until all bonds are paid. Accounting and Insurance-Sections 13 and 14 The books and accounts of the system must be kept separate and apart from all other accounts of the Village and shall be audited within 90 days.of the close of each fiscal year by an independent public account- ant, which audit report shall show among other things the operating statement, comments relative to com- pliance with the accounting requirements of the ordinance and recommendations for improvements therein, a list of insurance policies in force, the number of sewer customers, the number of metered and unmetered water customers, and the quantity of water pumped. Copies of each audit shall be furnished upon com- pletion to the original purchasers of the bonds and a summary on request to any bondholder. In addition, the person in charge thereof shall furnish statements of revenues and expenditures of the system to the President and Board of Trustees at least quarterly during each fiscal year and a copy of each such report shall be mailed to the original purchaser of the bonds and upon request to any bondholder. Parity Bonds-Section 10 The Village will not issue any bonds having a prior lien on the revenues of the system, but reserves the right to issue parity bonds to share ratably and equally in the revenues of the system upon the following conditions: (a) Additional bonds on a parity can be issued for improvements, replacements, and extensions of the system and for the purpose of refunding any of the Waterworks and Sewerage Revenue Bonds of the Village provided all the required credits to the various accounts have been made and further provided that the net revenues of the system for the next immediately preceding fiscal year as shown by the audit, or the average adjusted net revenues of the two next preceding fiscal years, have been equal to not less than 135% of the maximum annual requirements for principal and interest, during the life of such then outstanding bonds, on all bonds then outstanding and on the bonds then proposed to be issued. Net revenues for this purpose shall mean the gross revenue of the system less the reasonable and nec- essary costs of maintenance and operation and before depreciation or reserve account credits as evidenced by the audit. Should there have been a change in the rates of the system from the rates in effect for either of the two preceding fiscal years, which change is in effect at the time of the issuance of such additional bonds, net revenues shall be adjusted as if said then existing rates had been in effect during 11 f"" fi' I ". -~. -~ ,~.~-"'^._~ . '" -,.~.~, -~,,-","-- ,- ~,,~-~ ... ,",-_..-,-_. - all of each said period. Such adjustment shall be made and evidenced by a certificate of an independ- ent consulting engineer employed for that purpose, and approved by the President and Board of Trustees and filed with the Village Clerk. If net revenues are thus adjusted, then the average adjusted net revenues of the two immediately preceding fiscal years shall be substituted for the net revenues of the immediately preceding fiscal year. (b) Additional parity bonds may also be issued for the purpose of acquiring the sanitary relief sewer system in portions of Mount Prospect presently owned and operated by the Metropolitan Sanitary District of Greater Chicago, and for the purpose of refunding any bonds of said District which may be outstanding and having a lien on the revenues thereof. In the event of such an issue, an independ- ent engineer hired by the Village shall examine the reports of the District concerning said sewer sys- tem, and shall determine the net revenues thereof for the next immediately preceding fiscal years, as though the system had then been owned by the Village, which revenues shall be added to the net reve- nues of the combined waterworks and sewerage system of the Village for the purpose of applying the formula in Section (a) above. If the Village establishes new rates for the use of said sewers, net rev- enues shall be adjusted as provided in Section (a) above. (c) Additional bonds issued to refund any of these bonds must come within the formula unless they are issued to refund bonds which are due within three months of the date of refunding and no other funds will be available for payment. All parity bonds are equal in all respects and must mature on Ma.y 1 and have interest payable on May 1 and November 1. AUTHORIZATION The foregoing Official Statement together with the tables appended hereto has been prepared for the Village of Mount Prospect by Paul D. Speer, Municipal Finance Consultant, and has been authorized for distribution to prospective purchasers and underwriters of its $1,450,000 Waterworks and Sewerage Rev- enue Bonds by the President and Board of Trustees. All information and statistics contained herein are believed to be reliable and to the best of knowledge and belief reflect the financial and economic conditions of the Village of Mount Prospect, but are not guaranteed. /s/ CLARENCE O. SCHLAVER President /s/ RUTH C. WILSON V'illage Clerk June 1, 1963 12 co co eN 0) to- eN eN 0 eN eN 8 ..... to- O) to- 00 0) 0:> eN "<I' 0:> 10 d 0 c-i cQ ,..; t-= t-= 0 t-= c6 co X X ..... .... .0 ~ to- to- ~ co 0 0 0) co to- 10 eN ~ eN .... 0:> to- co "<I' .... 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