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HomeMy WebLinkAboutORDINANCE - 263 - 12/20/1962 - REVENUE BONDSAN ORDINANCE authorizing and providing for the issue of $4,000,000 Waterworks and Sewerage Revenue Bonds, Series 1963, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for paying the principal and interest of said bonds and the operation and maintenance of the waterworks and sewerage system and providing other funds therefor. WHEREAS the Village of Elk Grove Village has heretofore entered into a contract with the Elk Grove Water and Sewer Company, Inc., an Illinois Public Utility Corporation, where- by the Village will purchase and the Company will sell its entire existing waterworks and sewerage systems now being operated in said Village and in areas immediately contiguous thereto by said Company, consisting of all of the properties, real, personal and mixed, which comprise or form a part of the waterworks system and sewerage system owned and op- erated by said Elk Grove Water and Sewer Company, Inc, as of August I, 1962, together with all additions and improvements made and contracted for after August 1, 1962 and prior to the closing date, including any work in progress as of the closing date, and WHEREAS the Village of Elk Grove Village deems it advisable, necessary and in the interests of the inhabitants of the Village that upon acquisition of the waterworks system from the Elk Grove Water and Sewer Company, Inc., that certain improvements and extensions be made to the waterworks system consisting of an elevated storage tank of at least 500,000 gallons capacity, a well drilled to and drawing water from the Galesville sandstone form- ation, necessary pumps and other appurtenances and related facilities necessary to make said elevated storage tank an integral part of the combined waterworks and sewerage system of said Village, and that pursuant to the contract entered into by and between the Village and said Elk Grove Water and Sewer Company, Inc., the said company will acquire the real estate for the construction of said elevated storage tank and well in the area bounded by Arlington Heights Road, Biester Field Road, Bisner Road and Cosman Road, and construct the elevated storage tank thereon, drill the well and provide for the necessary pumps and other appurtenances and related facilities necessary to make said elevated storage tank an in- tegral part of the combined waterworks and sewerage system of said Village, and that it is in the best interests of said Village to acquire said facilities upon completion thereof by said company; all in accordance with the engineers' report therefor heretofore approved by this President and Board of Trustees and now on file in the office of the Village Clerk for public inspection; and WHEREAS it is deemed advisable, necessary and in the best interests of public health and safety of the Village of Elk Grove Village that the existing waterworks and sewerage systems, above described, be acquired and that the improvements thereto, above described, be made at a total cost of $4,000,000 for such acquisition and improvements above referred to including all legal, engineering, administrative costs and bond discount;. and WHEREAS the Village does not have sufficient funds available for the purpose of ac- quiring and improving said system and it will be necessary for the Village to borrow $4,000,000 and, in evidence thereof, to issue its waterworks and sewerage revenue bonds therefor; and WHEREAS the Village of Elk Grove Village is authorized pursuant to the provisions of Division 139 of Article 11 of the Illinois Municipal Code to operate a waterworks system and a sewerage system as a combined waterworks and sewerage system, and to issue its waterworks and sewerage revenue bonds payable from the revenues of said system in an amount sufficient to pay the cost of acquiring the existing waterworks and sewerage systems, above described, and to pay the cost of constructing the improvements above described. NOW, THEREFORE, Be It Ordained by the President and Board of Trustees of the Village of Elk Grove Village, Cook and Dupage Counties, Illinois as follows: Section 1. That said Village of Elk Grove Village has caused an estimate to be made of the cost of acquiring said existing waterworks and sewerage systems and upon acqusisition, to acquire the improvements and extensions to the said combined waterworks and sewerage system of said Village, all as described in the preambles of this Ordinance, and all in accordance with the plans and report of the engineers for said Village heretofore approved by the Board of Trustees and now on file with the Village Clerk for public inspection, and does hereby determine that the estimated total cost thereof, including all legal, engineer- ing, administrative costs and bond discount, is the sum of $4,000,000. Section 2. That the Board of Trustees does hereby determine that it is in the best interests of the Village of Elk Grove Village; that said waterworks and sewerage systems be acquired together with said improvements and that thereafter said systems be operated as a combined waterworks and sewerage system, and does hereby determine the period of usefulness of said combined waterworks and sewerage system, including the proposed improvements and extensions to be made thereto, to be forty (40) years. Section .j. That the Village of Elk Grove Village does not have sufficient funds available for the purpose of acquiring said waterworks and sewerage systems and including the improvements and extensions to said combined waterworks and sewerage system, as afore- said, and for that purpose, it will require the issue by said Village of $4,000,000 Water- works and Sewerage Revenue Bonds which are hereby authorized under the provisions of Division 139 of Article 11 of the Illinois Municipal Code, approved May 29, 1961, and all laws thereunto enabling. Said bonds shall be designated Waterworks and Sewerage Revenue Bonds, Series 1963, shall be in the principal amount of $4,000,000, in the form of negotiable coupon bonds, -2- 0 dated February 1, 1963, numbered I and upwards in consecutive order ending with number 800, of $5,000 denomination, and shall be expressed to mature on May Ist in each of the years and amounts as follows, subject to the right of redemption prior to maturity as hereinafter provided: 1966.....$ 10,000 1967..... 30,000 1968..... 40,000 1969..... 5o,000 1970..... 6o,000 1971..... 70,000 1972..... 80,000 1973..... 90,000 1974..... 100,000 1975..... 110,000 1976..... 120,000 1977..... 130,000 1978..... 14o,000 1979.....$150,000 1980..... 16o,000 1981..... 170,000 1982..... 180,000 1983..... 190,000 1984..... 200,000 1985..... 210,000 1986..... 220,000 1987..... 230,000 1988..... 24o,000 1989..... 250,000 1990..... 250,000 1991..... 260,000 1992..... 260,000 Bonds maturing on and prior to May 1, 1973, shall not be callable for redemption prior to their maturity, but the bonds maturing on and after May I, 1974, shall be redeem- able prior to their maturity at the option of the Village, either in whole or in part, on any interest payment date on or after May 1, 1973, through the use of revenues only and in whole from any moneys that may be made available for such purpose other than the revenues on any date on and after May I, 1983, at the per value thereof plus accrued interest to date of redemption. If less than all of said bonds are called for redemption at any time, they shall be called in the inverse order of their maturity and by lot within a maturity if less than a whole maturity is redeemed. Notice of redemption of any bonds that are redeemable prior to their maturity shall be given by registered mail to the registered holder at the address shown on the Registrar's books and as to all other holders by one publication in The Bond Buyer, published in the City of New York, New York, or in the event it ceases publication, then in a financial newspaper published in the City of Chicago, Illinois, at least thirty (30) days prior to the date fixed for reder,ption thereof when the date of redemption coincides with an inter- est payment date, and an additional notice shall be published not more than thirty (30) nor less than fifteen (15) days prior to the date of redemption when said redemption date is a date other than an interest payment date, and by filing such notice with the paying agent of said bonds at least thirty (30) days prior to the date fixed for redemption there- of. Such notice shall designate the date fixed for redemption, the amount and numbers of the bonds called for redemption, the terms of redemption, and upon the giving of such -3- notica and providing funds for the redemption of said bonds, interest shall cease on the bonds called for redemption from and after the redemption(dmte so specified. Section 4. (A) Said bonds shall bear interest from date thereof until paid at such rate or rates, not exceeding Five Per Cent (5%) per annum, as shall be specified in the Ordinance providing for the delivery of said bonds as hereinafter provided, and both the principal of and interest on said bonds shall be payable in lawful money of the United States of America at such bank or trust company as shall be mutually agreeable to the Village and the purchaser of said bonds and as specified in the Ordinance providing for the delivery of said bonds. (6) The interest on said bonds falling due on and prior to the maturity of said bonds shall be evidenced by appropriate interest coupons to be attached to said bonds, and such interest shall be payable May 1, 1963 and semiannually thereafter on May I and November i of each year until paid. (C) Said bonds shall be signed by the President and attested by the Village Clerk, with the real of said Village affixed, and the interest coupons attached to said bonds evidencing the rate or rates of interest said bonds will bear shall be executed by the facsimile signatures of said President and said Village Clerk, and said officials by the execution of said bonds shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. (D) Said bonds, together with interest thereon, shall be payable solely from the revenues derived from the combined wnterworks and sewerage system of said Village in the manner hereinafter desr.ribed, and such bonds shall not in any event constitute an indebtedness of said Villag,; within the moaning of any constitutional or statutory limit- ation and shall be coequal as to the pledge of said revenues securing the payment thereof and share ratably and equally without any preference, priority or distinction of one over another as to the source or method of payment and security of said bonds. Section 5. Any of said bonds may be registered as to principal at any time, prior to maturity, in the name of the holder on the books of said Village in the office of the Village Treasurer, such registration to be noted on the back of the bonds by the said Treasurer of said Village, and thereafter the principal of such registered bonds shall be payable only to the registered holder, his legal representatives or assigns. Such regis- tered bonds shall be transferable to another registered holder or back to bearer only upon presentation to the Treasurer, with a legal assignment duly acknowledged or approved. Registration of any such bonds shall not affect negotiability of the coupons thereto attach- ed, but such coupons shall be transferable by delivery merely. Section 6. That f_he form of said bonds shall be substantially as follows with appropriate omissions and in,ortiors to give; effect to differences of maturity dates, rates of interest, name of paying agent, terms of prior redemption, number and recitals: -4- Number (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF COOK AND DUPAGE VILLAGE OF ELK GROVE VILLAGE WATERWORKS AND SEWERAGE REVENUE BOND, SERIES 1963 $5,000 KNOW ALL MEN BY THESE PRESENTS, that the Village of Elk Grove Village, Cook and Du Page Counties, Illinois, for value received, hereby promises to pay to bearer, or if this bond be registered, as hereinafter provided, then to the registered holder hereof, solely from the Waterworks and Seweraga Fund of the Village of Elk Grovc Village, as here- inafter mentioned and not otherwise, the sum of Five Thousand Dollars ($5,000) on May 1, 19 (unless this bond is sooner redeemed as hereinafter provided), together with interest un said sum from date hereof until paid at the rate of per cent ( %) per annum, payable May I, 1963, and semiannually thereafter on the first days of May and November in each year and until the maturity hereof upon presentation and surrender of the annexed interest coupons as they severally become due. Both principal of and interest on this bond are hereby math: payable in lawful money of the United States of America at This bond is one of an outhorizecl issue of $4,000,000 in principal amount, issued to provide funds for paying the cost of acquiring and providing for improvements and ex- tensions to the combined waterworks and suwrage system of said Village, all as provided by the Constitution and laws of the State of Illinois, including Division 139 of Article 11 of the Illinois Municipal Code, approved May 29, 1961, and all other laws amendatory thereof or supplementary thereto, all as mor:; fully described in that certain Ordinance adopted by the Board of Trustees of the Village of Elk Grove Village on the day of 19 , authorizing the issue of said bonds and does not constitite an in- debtedness of said Village within any constititional or statutory limitation. This bond and all other bonds of said total authorized issue of $4,000,000 are payable solely as to principal and interest from the revenues to be derived by said Village from the operation of said combined waterworks and sewerage system of said Village and are coequal as to the pledge of said revenues securing the payment thereof and share ratably and equally without any preference, priority or distinction of one over another, as to the source or method of payment and security of said bonds, and for a more complete statement of the revenues from which and conditions under which this bond and interest hereon are payable and a statement of the conditions on which obligations may hereafter be issued on a parity herewith and the general covenants and provisions pursuant to %bich this bond is issued, reference is hereby made to said Ordinance adopted , 196 . -.5- Under said Code and Ordinance adopted pursuant thereto, the revenues from the op- eration of the combined waterworks and sewerage system shall be deposited in a separate fund designated as the "Waterworks and Sewerage Fund of the Village of Elk Grove Village," which shall be used only in paying the cost of operation and maintenance of such combined system, providing an adequate depreciation allowance, and paying the principal of and interest on the bonds of said Village that are issued under authority of said Code and are payable by their terms only from the revenue of the combined waterworks and sewerage system and making all payments required to maintain the accounts as created under the terms of the Ordinance pursuant to which this bond is issued. It is hereby certified and recited that all acts, conditions, and things required to be done precedent to and in the issuance of this bond have been done and have happened and have been performed in regular and due form of law, and that provision has been made for depositing in said Waterworks and Sewerage Fund the revenues received from the operation of said combined waterworks and sewerage system to be applied in the manner as hereinabove set forth; and it is hereby covenanted and agreed that rates will be charged for the use and service of such combined waterworks and sewerage system sufficient at all times to pay the cost of operation and maintenance of said system, provide an adequate depreciation allowance, and pay the principal of and interest upon all bonds issued by said Village, which are payable solely from the revenues of said combined system, and to make all pay- ments required to maintain the accounts created by the Ordinance pursuant to which this bond and the series of whichit forms a part is issued. The bonds maturing on and prior to May 1, 1973, shall not be callable for redempt- ion prior to their maturity, but the bonds maturing on and after May 1, 1974, shall be re- deemable prior to their maturity at the option of the Village, either in whole or in part, on any interest payment date on or after May 1, 1973, through the use of revenues only and in whole from any moneys that may be made available for such purpose other than the revenues on any date on and after May 1, 1983, at the par value thereof plus accrued interest there- on to the date of redemption. If less than all of said bonds are called for redemption at any time, they shall be called in the inverse order of their maturity and by lot within a maturity if less than a whole maturity is redeemed. Notice of redemption of any bonds that are redeemable prior to their maturity shall be given by registered mail to the registered holder at the address shown on the Registrar's books and by publication in The Bond Buyer, published in the City of New York, New York, or in the event it ceases publication, then in a financial newspaper published in the City of Chicago, Illinois, at least thirty (30) days prior to the date fixed for redemption thereof when the date of redemption coincides with an interest payment date, and an add- itional notice shall be published not more than thirty (30) nor less than fifteen (15) I M. days prior to the date of redemption when said redemption is a date other than an interest payment date, and by filing such notice with the paying agent of said bonds at least thirty (30) days prior to the date fixed for redemption thereof. Such notice shall desig- nate the date fixed for redemption, the amount and numbers of the bonds called for redempt- ion, the terms of redemption, and upon the giving of such notice and providing funds for the redemption of said bonds, interest shall cease on the bonds called for redemption from and after the redemption date so specified. This bond may be registered as to principal in the name of the holder on the books of said Village in the office of the Treasurer of said Village, such registration to be evidenced by notation of said Treasurer upon the back thereof, after which no transfer here- of shall be valid unless made on said books and similarly noted hereon, but it may be dis- charged from such registration by being transferred to bearer, after which it shall be trans- ferable by delivery, but it may be again registered as before. The registration of this bond shall not restrict the negotiability of the coupons by delivery merely. IN WITNESS WHEREOF, said Village of Elk Grove Village, Cook and DuPage Counties, Illinois, by its President and Board of Trustees, has caused its corporate seal to be hereunto affixed and this bond to be signed by its President, and attested by the Village Clerk, and the coupons hereto attached to be signed by the facsimile signatures of said President and said Village Clerk, which officials by the execution of this bond do adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons, and this bond to be dated the first day of February, 1963. Attest, lage Cler -7- President, W'ollage of Elk Grove Village, Cook and DuPage Counties, Illinois. (Form of Coupon) Number $ On the first day of 19 '(unless the bond to which this coupon is attached has been called for payment prior to said date, as herein provided, and pay- ment made or provided for), the Village of Elk Grove Village, Cook and DuPage Counties, Illinois will pay to bearer out of the Waterworks and Sewerage Fund of said Village Dollars ($ ) in lawful money of the United States of America at being interest then due: on its Waterworks and Sewerage Revenue Bond, Series 1963, dated February 1, 1963, number President, Village of Elk Grove Village, Cook and DuPage Counties, Illinois Village Clerk *(The clause within the parentheses shall be inserted in all coupons due on and after November 1, 1973.) Da to (Form of Registration Certificate) In Whose Name Registered M Signature of Village Treasurer Section 7. For the purpose of this Ordinance, the following words, terms and phrases shall have the following meanings: (A) Village of Elk Grove Village is hereinafter designated the "Village." (B) The governing body of said Village is hereinafter designated the "President and Board of Trustees." (C) The word "system" shall include all of the properties and facilities of the combined waterworks and sewerage system of said Village, now being acquired whether lying within or without the boundaries of said Village, as now existing or under construction and as they may hereafter be improved or extended while any of the bonds herein authorized or additional bonds herein permitted to be issued on a parity therewith remain outstanding; including all improvements, additions and extensions thereto or replacements thereof here- after constructed or acquired by purchase, contract or otherwise; and all contracts, rights, agreements, leases and franchises of every nature owned by said Village and used or useful or held for use in the operation of the system or any part or portion thereof. (D) The word "revenues" shall mean and include all income, revenues and receipts received directly or indirectly from the initial and continued use and operation of the system including, without limiting the generality of the foregoing, interest received on and profits realized from the sale of investments made with revenues of the system. (E) The term "net revenues" shall mean that portion of the revenues received from the continued use and operation of the system remaining after providing sufficient funds for the reasonable and necessary cost of maintenance and operation of the system as defined in Section 7 (F) hereof. (F) The phrase "cost of maintenance and operation" shall mean all costs reasonably incurred in connection with continued operation, use and maintenance of the system, in- cluding repairs (other than capital improvements) necessary to keep the system in efficient and economical operating condition, including the payment of premiums for insurance herein- after required to be carried on the system and generally all expensef(exclusive of depre- ciation) which under good accounting practice are properly chargeable to and are reasonable and necessary to the efficient maintenance and operation of the system. (G) The term "fiscal year" shall mean the period commencing May I and ending the last day of April of each succeeding calendar year and said system shall be operated, and all revenues shall be accounted for, on said fiscal year basis. (H) The word "bonds" shall mean and include each of the bonds in the principal amount of $4,000,000 authorized under the terms of this Ordinance. (1) The phrase "parity bonds" shall mean bonds hereafter issued on a parity with the $4,000,000 principal amount of bonds herein authorized under the provisions of Section 10 of this Ordinance. - 9 - W The words "connection charge" shall mean any fee paid for connecting users of the combined waterworks and sewerage system to said system. Section 8. That the net revenues are hereby pledged to the payment of the principal of and the interest on the bonds and the parity bonds, and the bonds and the parity bonds shall be secured by a prior and paramount pledge of the net revenues. All of the bonds and parity bonds shall be equally and ratably secured by said pledge without priority one over the other by reason of date of sale or delivery or Series designation or purpose or otherwise. Section 2. So long as any of the bonds or parity bonds remain outstanding, all of the revenues shall from day to day as collected be deposited in a fund separate and apart from all other Village funds, which shall be known as the "Waterworks and Sewerage Fund of the Village of Elk Grove Village" (sometimes hereinafter referred to as the "Revenue Fund"), and all moneys and investments therein shall be used solely for maintaining the following Accounts, which are hereby created, into which there shall be credited as of the first business day of each month, except as otherwise hereinafter provided, all moneys held in said Waterworks and Sewerage Fund of said Village, in accordance with the following priority: (a) There shall be credited to the Operation and Maintenance Account as of the first business day of each month an amount sufficient to pay the reasonable and necessary cost of maintenance and operation of said system under economical manage- ment for the next succeeding month, including, without limiting the generality of the foregoing, salaries,wages, costs of materials, supplies, insurance and power, and including one -twelfth of all such expenses computed on an annual basis. (b) Beginning not later than May 1, 1963, there shall be credited to the Bond and Interest Account an amount equal to not less than one-fifth of the interest be- coming due on all bonds and parity bonds on the next succeeding interest payment date; and, beginning May 1, 1965, there shall be credited to the Bond and Interest Account an amount eilual to not less than one-tenth of the principal becoming due on the next succeeding May I of all bonds and parity bonds, until there shall have been accumulated in said Account on or before thirty days preceding each such current maturity date of principal or interest, or both, an amount sufficient to pay such principal or interest, or both, of all bonds and parity bonds maturing by their terms on such current maturity date. From and after the issuance of any of the bonds hereby authorized, and upon receipt of the purchase price therefor, there shall be credited to the Bond and Interest Account all accrued interest derived from the sale of said bonds, plus an amount sufficient with current revenues to pay all interest due May 1, 1963 on the bonds. All moneys in said Account shall be used only for the purpose of paying in- terest on and principal of the bonds and parity bonds of said Village. Funds suf- ficient to pay interest or principal, or both, of said bonds, together with fiscal agency fees, shall be transmitted to the paying agent not less than fifteen days prior to each current maturity date of either principal or interest, or both, provided that all fiscal agency fees shall be paid from the Operation and Maintenance Account. (c) Beginning not later than May 1, 1963, there shall be credited to the Bond Reserve Account in equal monthly installments the annual sum of $24,000 in the fiscal year ending April 30, 1964 , and the annual sum of $24,000 in each fiscal year thereafter. The moneys in said Account shall be used only to pay principal of or interest on the bonds and parity bonds of said Village when there are insufficient funds available at any time to pay such principal or interest from any other source; provided, however, whenever the balance in said Account equals the maximum principal and interest requirements on all bonds and parity bonds for any fiscal year, any surplus over and above said maximum amount shall be used for the retirement of the bonds and parity bonds that are subject to redemp- tion prior to maturity; provided, if none of said bonds are subject to redemption prior to maturity or will not become subject to redemption prior to maturity within the next sixty (60) days, then the Village Treasurer shall request tenders for the purchase of said bonds to an amount not in excess of such surplus funds, or shall purchase such bonds, if available, in the open market. The President and Board of Trustees may direct the acceptance of bonds which, in its opinion, are at the lowest tendered price to the advantage of the Village but shall reserve the right to reject at any and all tenders. No tender or purchase/more than the par value and unpaid accrued interest on any of said bonds shall be considered. All such bonds purchased or redeemed shall be cancelled. (d) Beginning not later than May 1, 1963, there shall be credited to the De- preciation and Replacement Account in equal monthly installments the annual sum of $12,000 for the fiscal years ending April 30, 1964 through April 30, 1965, and the annual sum of $24,000 in each fiscal year thereafter. The moneys in said account shall be used first to provide an adequate allowance for depreciation as shall be determined from time to time by the President and Board of Trustees, which allowance shall be used from time to time to pay for any extraordinary maintenance, repairs and necessary replacements. Said funds may be used at any time to pay principal of or interest upon any revenue bonds outstanding whenever there are no other funds available to pay the same; provided, however, that from and after such time as said account aggregates the sume of $50,000, any sums in excess thereof may be transferred to the Bond Reserve Account, or at the discretion of the President and Board of Trustees may be used for the payment: of the cost of any improvements and extensions to the combined waterworks and sewerage system. (e) All moneys remaining in the Waterworks and Sewerage Fund at the end of each fiscal year after crediting the required amounts to the respective accounts herein provided for, shall be credited to the surplus Revenue Account and the funds so cre- dited shall be held and used for thee purposes and in the priority hereinafter men- tioned, to wit: (1) For making up any deficiency necessary to credit accounts (a) to (d), Inclusive, with the required amounts therefor for each fiscal year as herein- above provided. (2) If after crediting the amounts required to be credited to accounts (a) to (d), inclusive, for making up any deficiencies, there remain funds in said account, there shall be transferred to the Depreciation and Replacement Account or the Bond Reserve Account an amount equal to the sums collected for connection fees for that fiscal year. (3) After crediting the amounts required under subparagraphs 1 and 2 hereof, any sums remaining in said account at the end of the fiscal year may be transferred out to a special account to be designated "Improvement and Extension Account" and used for making any improvements or extensions to the system or for making any unusual repairs, replacements or improvements thereto, or for the acquisition of any equipment necessary therefor. (4) If after complying with the requirements of subparagraphs 1 to 3, Revenue inclusive, hereof, there are any funds available in the Surplus/Account, they may be transferred out of said account at the discretion of the President and Board of Trustees and used for any lawful purpose. (f) Moneys in any of the Accounts hereinabove created, may by resolution of the President and Board of Trustees be invested from time to time but only in in- terest bearing bonds or other direct obligations of the United States Government, maturing not later than the earliest date on which it is estimated the moneys in said Accounts will be needed, but in no event later than two years from the date of such investment. Such securities shall be sold from time to time without further authority of the President and Board of Trustees as funds may be needed for the purpose for which said Accounts have been created. All accrued interest on any funds so in- vested, or any gain or loss on any such investment, shall be credited to the Account for which the investment was made. All uninvested money on hand shall be deposited in banks selected as depositaries by the President and Board of Trustees from time to time so as to be available when needed. Such bank accounts shall be separate from - 12 - all other Village Accounts provided that all money in the Waterworks and Sewerage Fund may be deposited in a single bank account, except money in Accounts (b) and (c) thereof, which shall be combined into a single separate bank account. Section 10. It is hereby covenanted and agreed that while any of the bonds issued hereunder are outstanding, the Village will not issue any other bonds or obligations of any kind or nature having a pledge on the revenues of the system which is prior to the lien on such revenues of the bonds herein authorized. (A) Said Village reserves the right to issue at one time, or from time to time, as shall be found necessary and for the best interest of said Village by the President and Board of Trustees, additional bonds on a parity with the bonds authorized hereunder for the purpose of constructing improvements, replacements and extensions of the system of the Village or for the purpose of refunding any of the Waterworks and Sewerage Revenue Bonds of the Village, or for any combination of such purposes, but only provided the Village shall have complied with the following requirements: (a) The amounts required to have been credited to the respective Accounts (a) to (d), inclusive, of Section 9 of this Ordinance up to the date of authorization of . w - said additional bonds shall have been credited to said re- spective Accounts. (b) The net revenues of the system for the fiscal year then next preceding or the average adjusted net revenues of the system for the two then next preceding fiscal years, if such revenues are adjusted as herein provided, have been equal to not less than one hundred forty per cent ( 140% ) of the maximum combined prin- cipal and interest requirements for any succeeding fiscal year during the life of the then outstanding bonds, of (i) all bonds then outstanding payable from the revenues to be derived from the operation of the system and (ii) on the additional revenue bonds then proposed to be issued. Net revenues for the purpose of this subparagraph (b) shall mean the gross revenues of the system less the actual costs of operation and maintenance before making provision for depreciation or other Accounts as required by this Ordinance for such fiscal year or years and shall be evidenced by audit of an independent certified public accountant. In the event there shall have been a change in the rates of the system from the rates in effect for either of the two immediately preceding fiscal years, which change is in effect at the time of the issuance of any such additional bonds, then the net revenues as provided in sub -paragraph (b) above shall be adjusted to reflect the net revenues of the system for each of the two immediately preceding fiscal years as they would have been had said then existing rates been in effect during all of •. 13 - each of said years. Any such adjusted net revenues shall be evidenced by the certificate of an independent consulting engineer employed for that purpose, which certificate shall be approved by the President and Board of Trustees prior to issu- ance of the additional bonds and filed with the Village Clerk upon its approval. (B) Notwithstanding the foregoing provisions the Village reserves the further right to issue bonds to refund any of these bonds or bonds on a parity therewith provided they are issued to refund bonds due within three months of the date of refunding and for the payment of which no other funds are or will be available at the maturity thereof. (C) In addition to the right to issue parity bonds as set forth in paragraphs (A) and (B) of this section, the Village reserves the further right to issue prior to January 1, 1965, additional parity bonds for the purpose of providing funds to pay the cost of con- structing a facility to obtain a supply of Lake Michigan water from or in conjunction with another municipality, including necessary reservoirs, pumps, valves, transmission supply main, and other appurtenances necessary therefor and including all necessary engineering, legal and fiscal costs in connection therewith, provided (a) the amount of such additional bonds so authorized to be issued shall not exceed $ 500,000; and (b) such bonds shall mature on or after May 1, 1993• (D) Any additional bonds issued as parity bonds shall be on an equal basis in all respects with the bonds herein authorized, shall share ratably and equally in the revenues of said system, and shall mature as to principal on May 1, and as to interest on May I and November 1. Section 11. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain out- standing and unpaid, either as to principal or interest, that rates charged for the use and of the system services/shall be sufficient at all times to pay all costs of operation and maintenance, to provide and maintain the Accounts created and established by this Ordinance, to pay the interest on and principal of all bonds which by their terms are payable from the revenues of said system that are authorized to be issued under the terms of this Ordinance, and including all bonds hereafter issued and on a parity with the bonds herein authorized, and to carry out the covenants of this Ordinance:. There shall be charged against the users of said system, including the Village, such rages and amounts for water and sewer services as shall be adequate to meet the requirements of this Ordinance; provided the Village need not charge itself for water and sewer services so long as the revenues of the system are other- wise adequate to meet all the requirements of this Ordinance. To the extent permitted by law said Village further covenants not to grant any competing franchise for the operation of a waterworks system or a sanitary sewerage system or any combination thereof in said Village. - 14 - Section 12. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain out- standing and unpaid, either as to principal or interest, that any holder of a bond or bonds issued hereunder, or of any of the coupons representing interest accrued thereon may, either in law or in equity, by suit, action, mandamus or other proceedings, enforce or compel performance by the officials of said Village of all duties required by law and by this Ordinance, including the making and collecting of sufficient rates for water and sewer services and segregating the revenues of said system and the application thereof to the respective Accounts created by this Ordinance and in the time and manner as herein provided. Section 13. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain out- standing and unpaid, either as to principal or interest, to carry insurance on the system of the kinds and in the amounts which are usually carried by operators of similar properties including, without limiting the generality of the foregoing, fire, windstorm, public lia- bility, including insurance covering such risks as shall be recommended by a competent consulting engineer employed for the purpose of making such recommendations, and all moneys received for losses under such insurance policies shall be deposited in the Revenue Fund and thereafter credited to the Depreciation and Replacement Account and be used in making good the loss or damage in respect of which they were paid either by repairing the property damaged or replacements to the property destroyed, and provision for making good such loss or damage shall be made within ninety days From date of the loss. The payment of premiums for all insurance policies required under the provisions of this Section shall be considered a maintenance and operation expense. The proceeds derived from any and all policies for public liability shall be paid into the Revenue Fund and thereafter credited to the Operation and Maintenance Account and be used in paying the claims on account of which they were received. Section 14. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain out- standing and unpaid, either as to principal or interest, that proper books and records and accounts will be kept and maintained by said Villaga separate and apart from all other re- cords and accounts of said Village, showing correct and complete entries of all transactions relating to the system, and that the holders of any of said bonds or any duly authorized agent or agents of such holders shall have the right at any and all reasonable times to inspect the records, accounts and audit relating thereto, and to inspect the system and all property comprising the system. Said Village further covenants and agrees that it will within not more than ninety days following the close of each fiscal year cause an audit of - 15 - such books and accounts to be made by an independent public accountant, and that such audit will be available for inspection by the holders of any of the bonds. Each such audit, in addition to whatever matters may be thought. proper by the accountant to be included therein, shall without limiting the generality of the foregoing, include the following: (a) A statement in detail of the income and expense of the system for such fiscal year. (b) The accountant's comment regarding the method in which the Village has carried out the requirements of this Ordinance, and the accountant's recommendations for any changes or improvements in the operation of the system. (c) A list of all the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the policy. (d) The number of sewer customers served by the system at the end of the year, the number of metered water customers and the number of unmetered water customers at the end of the year and the quantity of water pumped. All expense incurred in the making of the audit required by this Section shall be regarded and paid as a maintenance and operation expense, and it is further covenanted and agreed that a summary of such audit shall be furnished to the holder of any of the bonds at his request. Statements of revenues and expenses of the system shall be furnished by the person in charge of operating the system to the President and Board of Trustees at least quarterly and copies of the same shall be mailed to the original purchaser of the bonds authorized by this Ordinance and shall be furnished to any bond holder upon request. A copy of each such annual audit shall be mailed promptly upon completion to the original purchaser of the bonds authorized by this Ordinance,and such original purchaser of said bonds herein authorized shall have the right to discuss with the accountant making the audit the contents of the audit and to ask for any additional information he may reasonably require. Section 15. That the Village hereby covenants and agrees with the holders of said bonds and coupons hereby authorized that so long as the bonds or any of them remain out- standing and unpaid, either as to principal or interest, that it will punctually perform all duties with reference to said system required by the Constitution and Laws of the State of Illinois, including the making and collecting of sufficient rates for water and sewerage service, segregating the revenues of said system and the application thereof to the respec- tive Accounts created by this Ordinance, and it hereby covenants and agrees not to sell, lease, loan, mortgage encumber or in any manner dispose of said system, including any and all extensions and improvements that may be made thereto, except as in this Ordinance re- cited (provided, however, that the covenant in this Section shall not prevent the said Village from disposing of any property which in the judgment of the President and Board of Trustees is no longer useful or profitable in the operation of said system, nor essential to the continued operation of said system without a reduction in the revenues to be derived therefrom and the proceeds from the sale of any such property is credited to the Deprecia- tion and Replacement Account hereinabove established in Section y of this Ordinance), and that the Village shall take no action in relation to said system which would unfavorably affect the security of the bonds herein authorized or the prompt payment of the principal of and interest thereon, until all of the bonds herein authorized to be issued shall have been paid in full, both principal and interest, or unless and until provision shall have been made for the payment of all such bonds and interest thereon in full; and the Village further covenants and agrees with the holders of said bonds to maintain in good condition and continuously operate said system. Section 16. That the provisions of this Ordinance shall constitute a contract between the Village and the holders of the bonds herein authorized to be issued and after the issuance of said bonds, no changes, additions or alterations of any kind shall be made therein, except as hereinbefore provided, until such time as all of said bonds issued here- under and the interest thereon shall be paid In full or unless and until provision shall have been made for the payment of all such bonds and interest thereon in full. Section 17. That as soon after this Ordinance becomes effective as may be, the bonds herein authorized shall be sold by the President and Board of Trustees of said Village in such manner as it may hereafter determine and an award of the sale of said bonds shall be made to the acceptable; bidder upon the basis of thu lowest interest cost to the Village; provided, however, that the price for such bonds shall be; such that the interest cost to the Village of the money received by the Village from such bond sale shall not exceed Six Per Cent MY annually computed to maturity according to standard tables of bond values. If the acceptable bidder offers to purchase said bonds bearing interest at a lower rate or I�L'SC,�-U % m A rates than herein provided, then the President and Board of Trustees shall adopt nswe-fixing the interest rate or rates on such bonds in accordance with the terms of the acceptable offer to purchase the some and direct the officers of the Village to execute and deliver said bonds to such purchaser bearing interest at such lesser rate or rates so specified by the acceptable bidder, and also by -40,00001 designate the bank to act as the paying agent for said bonds. Section 18. That the proceeds derived from the sale of said bonds, exclusive of accrued interest shall be by the Treasurer placed in the "Acquisition and Construction Fund Account of the Village of Elk Grove Village," which is hereby created, which funds shall be kept separate and apart from all other funds of the Village and deposited in one or more qualified banks or trust companies in the State of Illinois, which shall be designated from time to time by the President and Board of Trustees as depositaries for funds of said - 17 - Construction Fund Account. Said funds shall be held and used solely to acquire the water- works and sewerage systems herein provided for and the improvements to the combined water- works and sewerage system of said. Village, as provided by this Ordinance, and shall be held for the benefit of the Village for the purposes herein providud and for the benefit of the holder or holders of the bonds hereby authorized as their interest may appear. The cost of legal, engineering and financial services and all costs inciduntol to acquisition of the systems and issuance of the bonds shall be Kamen costs of acquisition and construction. Saic funds shall be withdrawn from said depositary from time to time by the Treasurer of the Village only upon submission to him of the following: (a) A duplicate copy of the ardor signed by the President and. Village Clerk, or such other officers that may from time to time be by law authorized to sign and countersign orders on the Treasurer of the Village, stating specifically the purpose for which the order is issued; and indicating that the payment for which the order is issued has been approved by the President and Board of Trustees of said Village; (b) Each order drawn for payment to a contractor or contractors for work done in connection with the construction of any improvements an6 extensions shall be accompanied by a certificate exucuted by the engineers in charge of the construction thereof, stating the nature of the work completed; and the amount due and payable thereon. Within sixty days after the acquisition of the improvements herein provided for, any surplus remaining in said Acquisition and Construction Fund Account shall be transferred to the Depreciation and Uplacemunt Account. From the proceeds derived from the sale of thu bonds, the sum received as accrued interest on said bon6s shall be ercditud to the Boni: and Interest Account together with an nidi taonol amount sufficient with current rev..nuus to pay all interest duo May 1, 063 on the bonds, such additional amount to be restorer: from the first available revenues. The funds credited to the Acquisition and Construction Fund Account may be invested from time to time in direct or fully guaranteed abligations of the United States of America having a maturity not later than the date or dotes when such funds will be needed, such date or dates to be determined from time to time by resolution of the President and Board of Trustees. Section ly. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such suction, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. Section 20. All ordinances, resolutions or orders, or parts thuruof in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed. - 18 - Section 21. This Ordinance after its passage by President and Board of Trustees shall be published once in the Elk Grove Ncrald, a newspaper having a general circulation in the Village of Elk Grovu Village, and shill be uffuctiva in the manner, form and time as provided by law. Passes! this 20th clay of Ducembur, 1962 by the following roll call votu: Ayes: Nays: Approved this 20th day of Deeomber, 11)62. President Recorded in the Village Records this 20th day of Deeembor, 1962. December, 1962 Attest: Village CUrk