S-214 - 03/02/1971 - BOND - Ordinances WAFER 1 r1,,
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ORDINANCE N AL '
AN ORDINANCE authorizing and providing for the
issue of ,000,000 Waterworks and Sewerage
Revenue Bonds, Series 1971, of the Village of
Oak Brook, DuPage County, Illinois, for the
purpose of defraying part of the cost of pur-
chasing a combined waterworks and sewerage
system and constructing improvements and ex-
tensions toIsaid system, prescribing all the
details of paid bonds, and providing for the
collection," segregation and distribution of
the revenues of the combined waterworks and
sewerage system of said Village for the pur-
pose of paying the cost of the operation and
maintenance thereof, providing an adequate de
preciation fund therefor and paying the prin-
cipal and interest of said Waterworks and
Sewerage Revenue Bonds.
WHEREAS, the Village of Oak Brook, DuPage County,
Illinois, has heretofore found it advisable and for the best inter-
est of said Village to purchase the combined waterworks and sewer-
age system presently operating within the Village of Oak Brook and
_ now citiried by the Oak Brook Utility Company, said waterworks to in-
clude the water supply facilities consisting of three wells, having
a combined capacity of approximately 35000 gallons per minute, two
250,000 gallon elevated steel water storage tanks, a waterworks
distribution system consisting of more than 33 miles of water dis-
tribution mains, varying in diameter from 4 inches to 16 inches,
appurtenant fire hydrants, house services and water meters; and
sanitary sewerage facilities to include the sewage collection sys-
tem consisting of more than 34 miles of sanitary sewers varying in
diameter from 4 inches to 21 inches, eleven sewage lift stations,
and a sewage treatment plant with a design capacity of 2 .15 million
gallons per day, manholes and house services; together with the
land, easements and interests in land in connection with said com-
bined waterworks and sewerage system, and all buildings, equipment,
wiring, controls, and connections appurtenant thereto, which are
part of the system to be acquired and necessary to the operation
thereof; and
WHEREAS, said Village of Oak Brook has determined that
it is desirable to provide for the continuation of said waterworks
and sewerage system as a combined waterworks and sewerage system
and for the operation of the same as a single utility, all in ac-
cordance with the provisions of Division 139 of Article 11 of the
Illinois Municipal Code, approved May 29, 1961, as amended; and
WHEREAS, it is deemed advisable, necessary and in the
interests of public health of the Village of Oak Brook that said
combined waterworks and sewerage system be improved and extended
by the construction and installation of water reservoir capacity
of at least one million gallons, two new wells with emergency power
supply, and additional water mains to provide service to areas of
the Village not presently served, and to improve the fire fighting
capability of said system, and to provide for necessary inspection
and repairs to the sanitary sewers to reduce storm water infiltra-
tion, together with all necessary connections and appurtenances
required to make said improvements and extensions an integral part
of the combined waterworks and sewerage system of said Village,
all in accordance with the preliminary plans and specifications
therefor heretofore approved by the President and Board of Trustees
of said Village and now on file in the office of the Village Clerk
for public inspection; and
WHEREAS, the total estimated cost of purchasing said
existing combined waterworks and sewerage system and constructing
such improvements and extensions, including all engineering costs,
legal fees, bond discount, interest during the period of construc-
tion of the improvements and extensions, cost of acquiring necessary
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land, and contingencies, as prepared by the engineers employed for
that purpose, is the sum of $6,000,0009 and
WHEREAS, the Village of Oak Brook does not have funds
available for said purpose and proposes to issue general obligation
bonds to pay a portion of the cost, and in order to raise the bal-
ance of the funds required, it will be necessary for the Village to
borrow the sum of $4,000,000 and in evidence thereof issue its
Waterworks and Sewerage Revenue Bonds in said amount for the purpose
of paying the cost of purchasing said combined waterworks and sewer-
age system and constructing said improvements and extensions to
said system, all in accordance with the provisions of Division 139
of Article 11 of the Illinois Municipal Code, as amended:
NOW, THEREFORE, Be It and It Is Hereby Ordained by the
President and Board of Trustees of the Village of Oak Brook, DuPage
County, Illinois, as follows:
Section 1. That it is considered for the best interests
of the Village of Oak Brook, DuPage County, Illinois, that said
Village purchase the combined waterworks and sewerage system pres-
ently operating within said Village and now owned by the Oak Brook
Utility Company and construct improvements and extensions to said
combined system, all as described in the preambles of this ordinance,
and all in accordance with the preliminary plans and specifications
therefor heretofore approved by the President and Board of Trustees
of said Village and now on file in the office of the Village Clerk
for public inspection, and that said combined waterworks and sewer-
age system continue to be operated as a single utility, in accord-
ance with the provisions of Division 139 of Article 11 of the
Illinois Municipal Code, as amended.
Section 2. That this President and Board of Trustees has
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heretofore estimated and does hereby estimate that the cost of pur-
chasing said combined waterworks and sewerage system and construct-
ing said improvements and extensions, as set out in the preambles
of this ordinance, is the sum of $6,000,000.
Section 3. That the Village does not have sufficient
funds on hand available to pay the cost of purchasing said combined
waterworks and sewerage system and constructing such improvements
and extensions, and that it will require the issuance by said Vil-
lage of Waterworks and Sewerage Revenue Bonds in the principal
amount of $4,000,000.
Section 4. That the President and Board of Trustees do
hereby determine the period of usefulness of such combined water-
works and sewerage system, and the improvements and extensions to
be made thereto, to be forty (40) years from the date of the bonds
herein authorized to be issued.
Section 5. That for the purpose of defraying part of the
cost of purchasing said combined waterworks and sewerage system and
constructing said improvements and extensions referred to above,
there be issued revenue bonds of said Village of Oak Brook in the
principal amount of $4,000,000, each to be designated "Waterworks
and Sewerage Revenue Bond, Series 1971", said bonds to be dated
May 1, 1971, be of the denomination of $5,000 each, be numbered
consecutively from 1 to 800, inclusive, bear interest at the rate
of not to exceed seven per cent (7%) per annum, payable November 1,
1971, and semiannually thereafter on the first days of May and
November in each year until paid, said bonds to mature serially on
May 1 of each of the years and in the amounts as follows (subject
to the right of prior redemption hereinafter recited) .
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Principal
Amount Maturity
$ 50,000 1976 and 1977
753000 1978 and 1979
100,000 1980 to 1983, inclusive
1255000 198+ to 1986, inclusive
150,000 1987 to 1989, inclusive
175,000 1990 and 1991
2003000 1992 and 1993
2253000 1994 and 1995
250,000 1996 and 1997
2753000 1998 to 2000, inclusive
provided, however, that of said bonds, bonds numbered 206 to 800,
inclusive, maturing on May 1 of each of the years 1987 to 2000,
inclusive, shall be subject to redemption and payment prior to
their maturity at the option of the Village, in whole or in part,
from time to time through the use of revenues only, on any interest
payment date on or after May 1, 1986, and redeemable only as a
whole from any funds that may be made available for such purpose
on any date on or after May 1, 1986, at par and 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. Written notice of its option to redeem any
or all of said bonds shall be given by the Village to the holder of
each such bond called for redemption, if known, by registered mail
at least thirty (30) days prior to the date of redemption, or if
the holders of any such bonds are unknown, then notice of redemption
shall be given by publication of such notice at least once not less
than thirty (30) days prior to the date of redemption in The Bond
Buyer, published in the City of New York, New York, or in the event
it ceases publication then in one financial newspaper published and
of general circulation in the City of Chicago, Illinois, or in the
City of New York, New York. Such notice of redemption shall
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designate the date and place of redemption of said bonds, which
shall be at the paying agent to be hereafter designated, shall
designate the serial number and the aggregate principal amount of
the bonds to be redeemed, and shall indicate that on the designated
date of redemption said bonds will be redeemed by payment of the
principal thereof and accrued interest thereon, and that from and
after the designated redemption date interest in respect of said
bonds so called for redemption shall cease.
Section 6. That both principal of and interest on said
Waterworks and Sewerage Revenue Bonds, Series 1971, shall be pay-
able in lawful money of the United States of America at such bank
or trust company as may hereafter be agreed upon between the pur-
chaser of said bonds and the President and Board of Trustees of
said Village . Said bonds shall be signed by the President, sealed
with the corporate seal of said Village, and attested by the Vil-
lage Clerk, and the interest coupons attached to said bonds 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 respec-
tive facsimile signatures appearing on said coupons.
Said bonds, together with interest thereon, shall be
payable solely from the revenues derived from the combined water-
works and sewerage system of said Village, including all improve-
ments and extensions thereto, and such bonds shall not in any event
constitute an indebtedness of said Village within the meaning of
any constitutional provision or any constitutional or statutory
limitation.
Any of said bonds may be registered at the option of the
holder as to principal only, at any time- prior to maturity, in the
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name of the holder, on the books of said Village in the office of
the Village Treasurer, such registration to be noted on the reverse
side of the bonds by the Village Treasurer, and thereafter the
principal of such registered bonds shall be payable only to the
registered holder, his legal representatives or assigns . Such
registered bonds may be transferable to another registered holder
or back to bearer only upon presentation to the Village Treasurer
with a legal assignment duly acknowledged or approved. Registra-
tion of any of such bonds shall not affect the negotiability of the
coupons thereto attached, but such coupons shall be transferable
by delivery merely.
Section 7. That said bonds and coupons attached thereto
shall be in substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF DU PAGE
VILLAGE OF OAK BROOK
WATERWORKS AND SEWERAGE REVENUE BOND, SERIES 1971
Number $5,000
KNOW ALL MEN BY THESE PRESENTS, that the Village of
Oak Brook, DuPage County, Illinois, for value received hereby
promises to pay to bearer, or if this bond be registered as to
principal, as hereinafter provided, then to the registered holder
hereof, solely from the Waterworks and Sewerage Fund of said Vil-
lage of Oak Brook, as hereinafter mentioned and not otherwise, the
sum of FIVE THOUSAND DOLLARS ($5,000) on May 1, 19 , together with
interest on such principal sum from the date hereof until paid at
the rate of per cent ( g6) per annum, payable
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November 1, 1971, and semiannually thereafter on May 1 and November
1 in each year, upon presentation and surrender of the interest
coupons hereto attached as they severally become due.
Both principal of and interest on this bond are hereby
made payable in lawful money of the United States of America at
This bond and the series of which it forms a part is pay-
able solely from revenues derived from the combined waterworks and
sewerage system of said Village and not otherwise, and is issued
under authority of Division 139 of Article 11 of the Illinois Munic-
ipal Code, approved May 29, 1961, and all laws amendatory thereof
and supplementary thereto, for the purpose of paying part of the
cost of purchasing a combined waterworks and sewerage system and
constructing necessary improvements and extensions to said system,
and this bond does not constitute an indebtedness of said Village
within any constitutional or statutory limitation.
This bond is one of an authorized issue of Four Million
Dollars ($4,000,000), numbered from 1 to 800, inclusive, of the
denomination of Five Thousand Dollars ($5,000) each, of like date
and tenor except as to maturity, rate of interest and privilege of
redemption, and of said bonds, bonds numbered 206 to 800, inclusive,
maturing on May 1 of each of the years 1987 to 2000, inclusive, are
redeemable prior to maturity at the option of the Village, in whole
or in part, from time to time through the use of revenues only, on
any interest payment date on or after May 1, 1986, and redeemable
only as a whole from any funds that may be made available for such
purpose on any date on or after May 1, 1986, at par and accrued in-
terest to date of redemption. If less than all of said bonds are
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called for redemption at any time, they shall be called in the in-
verse order of their maturity and by lot within a maturity if less
than a whole maturity is redeemed. Notice of the redemption of any
or all of said bonds which by their terms shall have become subject
to redemption shall be given by the Village to the holder thereof,
if known, by registered mail at least thirty (30) days prior to the
date of redemption, or if the holder thereof be unknown, such notice
shall be published at least once not less than thirty (30) days
prior to the date of redemption in The Bond Buyer, published in the
City of New York, New York, or in the event it ceases publication
then in one financial newspaper published and of general circulation
in the City of Chicago, Illinois, or in the City of New York, New
York. When any or all of said bonds which by their terms have be-
come subject to redemption and payment prior to their maturity shall
have been called for redemption, and payment made or provided for,
interest thereon shall cease from and after the date so specified.
Under said Code and the ordinance adopted pursuant there-
to, authorizing the issuance of this bond and the series of which
it forms a part, the revenues from the operation of the combined
waterworks and sewerage system of said Village shall be deposited
in a separate fund designated as the "Waterworks and Sewerage Fund
of the Village of Oak Brook", which shall be used only and is here-
by pledged for paying the cost of operation and maintenance of said
combined system, providing an adequate depreciation fund and paying
the principal of and interest on the bonds of said Village that are
issued under the authority of said Code and are payable by their
terms only from the revenues of said combined waterworks and sewer-
age system, and in making all payments required to maintain the
accounts created under the terms of the ordinance pursuant to which
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this bond is issued.
The rights and obligations of the Village and of the
holders of the bonds may from time to time be modified or amended
by a supplemental ordinance adopted by the President and Board of
Trustees with the written consent of the holders of not less than
two-thirds (2/3rds) of the principal amount of all the bonds auth-
orized by this ordinance and all bonds hereafter issued on a parity
therewith, then outstanding (excluding any of said bonds owned by
or under the control of the Village) ; provided, however, that no
such modification or amendment shall extend or change the maturity
of, or date of redemption prior to maturity, or reduce the interest
rate on, or otherwise alter or impair the obligation of the Village
to pay the principal of and interest on the bonds herein authorized
at the time, place and at the rate and in the currency provided
therein of any bond herein authorized then outstanding, without the
express consent of the holder of such bond , nor shall any such
modification or amendment permit the creation of a preference or
priority of any bond or bonds over any other bond or bonds, nor
reduce the percentage of the holders of outstanding bonds required
for the written consent to such modification or amendment.
It is hereby certified and recited that all acts, condi-
tions and things required to be done precedent to and in the issu-
ance of this bond, have been done and have happened and have been
performed in regular and due form of law, and that provision has
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 said Village hereby covenants and agrees that it will
fix and maintain rates for the use and service of said combined
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waterworks and sewerage system, and collect and account for the
revenues from said combined waterworks and sewerage system, suffi-
cient at all times to pay the cost of maintenance and operation
of said combined system, provide an adequate depreciation fund,
and to promptly pay principal of and interest on all bonds issued
by said Village which by their terms are payable solely from the
revenues of said combined waterworks and sewerage system, and to
comply with all of the covenants of the ordinance under which this
bond and the series of which it forms a part were issued.
This bond may be registered as to principal only in the
name of the holder on the books of said Village in the office of
the Village Treasurer, such registration to be evidenced by nota-
tion of said Treasurer on the back hereof, after which no transfer
hereof shall be valid unless made on said books and similarly noted
hereon, but it may be discharged from such registration by being
transferred to bearer, after which it shall be transferable by de-
livery, but it may be again registered as before. The registra-
tion of this bond shall not restrict the negotiability of the cou-
pons by delivery merely.
IN WITNESS WHEREOF, the Village of Oak Brook, DuPage
County, Illinois, by its President and Board of Trustees, has
caused this bond to be signed by its President, its corporate seal
to be hereto affixed and attested by the Village Clerk, and the
coupons hereto attached to be signed by the 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 as of the first day of
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May, 1971.
President, Village of Oak Brook,
DuPage County, Illinois .
Attest :
Village Clerk, Village of Oak Brook,
DuPage County, Illinois .
(Form of Coupon)
Number $
On the first day of , 19 , *(unless the bond
to which this coupon is attached has been called for payment prior
to said date as therein provided for and payment made or provided
for) , the Village of Oak Brook, DuPage County, 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
, in the ,
being interest then due on its Waterworks and Sewerage Revenue Bond,
Series 1971, dated May 1, 1971, Number
President, Village of ak Brook,
DuPage County, Illinois.
Attest :
Village Clerk., Village of Oak Brook,
DuPage County, Illinois .
*(The clause within the parenthesis appearing in the form of in-
terest coupon shall be inserted in all coupons attached to bonds
numbered 206 to 800, inclusive, representing interest maturing
after the optional date of the bond to which it is attached. )
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(Form for Registration)
Date of Signature of
Registration In Whose Name Registered Village Treasurer
Section 8. That upon the issuance of any of the Water-
works and Sewerage Revenue Bonds, Series 1971, herein provided for,
the entire combined municipal waterworks and sewerage system (some-
times hereinafter referred to as the "system") of said Village of
Oak Brook, for the purpose of this ordinance, shall be operated on
a fiscal year basis commencing the first day of May and ending the
last day of April of each succeeding year. From and after the de-
livery of any bonds issued under the provisions of this ordinance,
all the revenues from any source whatsoever derived from the opera-
tion of the combined waterworks and sewerage system of said Village
of Oak Brook, including all future improvements and extensions
thereof, shall be set aside as collected and be deposited in a
separate fund which is hereby created to be designated as the
"Waterworks and Sewerage Fund of the Village of Oak Brook", which
shall constitute a trust fund for the sole purpose of carrying out
the covenants, terms and conditions of this ordinance, and shall
be used only in paying the reasonable cost of operation and main-
tenance of said combined waterworks and sewerage system, providing
an adequate depreciation fund, and paying the principal of and
interest upon all revenue bonds of said Village of Oak Brook which
by their terms are payable solely from the revenues derived from
the combined waterworks and sewerage system of said Village, and
for the creation and expenditure of the respective accounts here-
inafter provided for.
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Section 9. That there be and there are hereby created
and established separate special accounts to be designated sev-
erally "Operation and Maintenance Account", "Bond and Interest
Account", "Bond Reserve Account", "Depreciation, Improvement and
Extension Account", and "Surplus Revenue Account", into which
there shall be set aside on the first business day of each month
without any further official action or direction all moneys held
in the Waterworks and Sewerage Fund of said Village, in accordance
with the following priority:
(a) There shall be credited to the Operation and Main-
tenance Account on the first business day of each
month an amount sufficient to pay the reasonable
expense of operation and maintenance of said com-
bined waterworks and sewerage system 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 on the first day of the month following
delivery of the bonds herein authorized, there
next shall be deposited in the Bond and Interest
Account the entire balance of the revenues until
the amount of interest due up to November 1, 1971
has been deposited in said account, and from and
after November 1, 1971, on the first business day
of each month, there shall be deposited in the
Bond and Interest Account an amount at least equal
to one-fifth of the interest becoming due on all
outstanding bonds authorized pursuant to this ordi-
nance and including the interest to become due on
all bonds hereafter issued and on a parity with
the bonds herein authorized, until there is on hand
in said account the full amount of the interest
payable on the next succeeding interest payment
date, and beginning on May 1, 1975 there shall be
deposited in the Bond and Interest Account on the
first business day of each month an amount at least
equal to one-tenth of the principal of all of said
bonds authorized herein and including bonds here-
after issued and on a parity with the bonds herein
authorized until there is on hand in said account
the full amount of the principal becoming due on
the next succeeding principal maturity date.
Payments into the Bond and Interest Account may be
suspended in any fiscal year at such time as there
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shall be. sufficient money in said account to pay
principal and interest due on the next payment
date, but such payments shall again be resumed at
the beginning of the new fiscal year. All moneys
in said account shall be used only for the purpose
of paying interest and principal on the bonds
hereby authorized, and including such bonds as may
be hereafter issued and on a parity with the bonds
herein authorized. Any and all sums received from
the purchaser of the bonds as accrued interest
thereon to date of delivery, shall be paid into
said Bond and Interest Account, and in addition
thereto, from the proceeds derived from the sale
of said bonds, there shall be paid into said account
the amount of $58,550 to pay interest on said bonds
herein authorized during the time estimated to be
necessary to complete the construction of the im-
provements and extensions to the combined water-
works and sewerage system.
Funds to pay all of said principal and interest,
together with the fees and expenses of the paying
agent for said bonds, shall be remitted to said
paying agent at least fifteen (15) days prior to
the date of said principal or interest; provided
that all fiscal agency fees shall be paid from the
Operation and Maintenance Account .
(c) Beginning on the first day of the month following
delivery of the bonds herein authorized, there
shall be deposited in the Bond Reserve Account on
the first business day of each month the sum of
$3,000 each month until all of the bonds herein
authorized have been paid or provision made for
their payment .
Moneys in said Bond Reserve Account shall be re-
tained and used only for the payment of principal
of or interest on all bonds of said Village auth-
orized pursuant to this ordinance and including
such bonds as may be hereafter issued and on a
parity with the bonds herein authorized at any
time when there are insufficient funds available
in the Bond and Interest Account to pay such prin-
cipal of or interest on such bonds as the same
become due. Provided, however, that whenever the
balance in said account is equal to the maximum
principal and interest requirements on all of said
outstanding bonds and parity bonds for any succeed-
ing fiscal year, any surplus over and above said
maximum amount, in the discretion of the President
and Board of Trustees, may be transferred to the
Depreciation, Improvement and Extension Account,
or to the Surplus Revenue Account, or may be used
for calling and redeeming bonds prior to their ma-
turity, or for purchasing on the open market at not
more than par and accrued interest any of the bonds
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which are payable from the revenues of the system.
No bonds shall be purchased within the sixty (60)
days immediately prior to the next succeeding re-
demption date of any bonds, and all such bonds pur-
chased or redeemed shall be cancelled.
(d) Beginning on December 1, 1971, there shall next be
credited to the Depreciation, Improvement and Ex-
tension Account on the first business day of each
month the sum of $4,000 each month, or such greater
amount as may be designated from time to time by
the President and Board of Trustees .
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 Pres-
ident and Board of Trustees, and may be used from
time to time to pay for any extraordinary mainten-
ance, repairs and necessary replacements, or if
not so needed, for improvement or extension of the
system. Said funds shall be used at any time to
pay principal of or interest upon any outstanding
bonds payable from the system whenever there are
no other funds available to pay the same; provided,
however, that from and after such time as said
account aggregates the sum of $400,000, any sums
in excess thereof may be transferred to the Bond
Reserve Account or to the Surplus Revenue Account
at the discretion of the President and Board of
Trustees.
(e) In the event that in any month there are insuffi-
cient moneys in the Waterworks and Sewerage Fund
to make the required monthly credits to any of the
foregoing accounts (a) , (b) , (c) or (d) , then the
amount of such deficiency shall be added to the
requirements for the succeeding month and made up
in the priority in which said funds are herein
listed.
(f) All revenues remaining in the Waterworks and Sewer-
, age Fund, after all credits and payments have been
made to the respective accounts herein provided for,
shall at the end of each fiscal year be credited to
the Surplus Revenue Account and the amount so
credited shall be held and used for the following
purposes :
(1) For making up any deficiency necessary to
credit accounts (a) to (d) , inclusive, with
the required amounts therefor for each fiscal
year as hereinabove provided.
(2) For paying principal of or interest on any
junior lien bonds (subordinate issue) .
(3) For any lawful corporate purpose.
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(g) Moneys remaining in any of the accounts herein-
above created may by resolution of the President
and Board of Trustees be invested from time to
time in 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 five (5) years from the date of such invest-
ment. Such securities shall be sold from time to
time without further authority of the President
and Board of Trustees as moneys may be needed for
the purpose for which said accounts have been
created. All accrued interest on any moneys so
invested shall first be credited to the Waterworks
and Sewerage Fund of said Village and then 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 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 deposited in one or more
separate bank accounts .
Section 10. That the Village of Oak Brook covenants and
agrees with the holders of said bonds and coupons hereby authorized
that, so long as the bonds or any of them remain outstanding and
unpaid, either as to principal or interests
(a) That the Village will maintain said combined water-
works and sewerage system, and all improvements and
extensions thereto, in good repair and working order,
will operate the same efficiently and faithfully,
and will punctually perform all duties with respect
thereto required by the Constitution and laws of the
State of Illinois .
(b) That the Village will establish and maintain at all
times reasonable fees, charges and rates for all
users of the service of said system, and provide
for the collection thereof and for the segregation
and application of the revenues of said system in
the manner provided by this ordinance, and suffi-
cient at all times to pay the reasonable costs of
operation and maintenance, to pay the interest of
and principal on all revenue bonds of said Village
which by their terms are payable from the revenues
of said system, and to provide for the creation and
maintenance of the respective accounts as provided
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in Section 9 of this ordinance, and from time to
time make all needful and proper repairs, re-
placements, additions and betterments thereto, so
that it may at all times be operated properly
and advant&geously, and when any equipment or fa-
cility shall have been worn out, destroyed or
otherwise is insufficient for proper use, it shall
be promptly replaced or repaired so that the value
And efficiency of said system shall be at all
Mmes fully maintained. Charges for service ren-
dered the Village shall be made against the said
Village, and payment for the same from the cor-
porate funds shall be made monthly into the Water-
works and Sewerage Fund created by this ordinance,
as revenues derived from the operation of the
combined waterworks and sewerage system, in the
same manner as other revenues are required to be
deposited; provided, however, that the Village
need not charge itself for water and sewer service
so long as the revenues of the system are other-
wise adequate to meet all the requirements of this
ordinance. No free service of the system shall
be furnished to any persons, firm, organization,
or corporation, public or private, and to the
extent permitted by law it is expressly herein
covenanted that said Village will not grant a
franchise for the operation of any other or com-
peting waterworks system or sewerage system or
combination thereof within the Village of Oak
Brook and that the bonds herein authorized to be
executed shall constitute legally enforceable
liens on the revenues of the combined waterworks
and sewerage system of said Village, including
all further extensions, additions and improvements
thereto, whether acquired through purchase, con-
tract or otherwise .
(c) That the Village will establish such rules and
regulations for the control and operation of said
system necessary for the efficient and economical
operation thereof, and rates and charges shall be
fixed and revised from time to time as may be
necessary to produce funds sufficient for all pur-
poses herein provided until all of the bonds auth-
orized by this ordinance have been paid in full,
both as to principal and interest.
(d) That the Village will make and keep proper books
and accounts (separate and apart from all other
records and accounts of said Village) in which
complete entries shall be made of all transactions
relating to said system, and hereby covenants that
within ninety (90) days following the close of each
fiscal year it will cause the books and accounts
of said system to be audited annually by independent
certified public accountants showing the receipts
and disbursements on account of said system, and
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that said 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 accountants to be included
therein, shall, without limiting the generality
of the foregoing, include the following:
(1) A statement in detail of the income and ex-
penditures of the system for such fiscal
year, and including credits to the various
accounts provided herein.
(2) A balance sheet as of the end of such fiscal
year.
(3) The accountant's comment regarding the mariner
in which the Village has carried out the
accounting requirements of this ordinance,
and the accountant 's recommendations for any
changes or improvements in the operation of
the system.
(4) 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.
(5) 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 expenses incurred in the making of the audit
required by this section shall be regarded and
paid as an operation and maintenance expense, and
it is further covenanted and agreed that a copy
of each such audit shall be furnished upon comple-
tion to the original purchaser of the bonds herein
authorized, and a summary thereof shall be furnished
to any bondholder on request . In addition, state-
ments of revenues and expenditures of the system
shall be furnished to the President and Board of
Trustees at least quarterly during each fiscal year,
and a copy of such statement shall be furnished to
the original purchaser of the bonds herein author-
ized, and shall also be furnished to any bondholder
upon request.
(e) That so long as any of the bonds authorized here-
under are outstanding the Village will not sell,
lease, loan, mortgage, or in any manner dispose of
or encumber said system (subject to the reserved
right of said Village to issue additional obliga-
tions as provided in Section 11 hereof) , or any
improvements and extensions thereto, until all of
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said bends hereby authorized shall be paid in
full, Both principal and interest, or unless
and un'�il provision shall have been made for the
payment thereof; provided, however, that this
covenant shall not prevent said Village from
dispo,.ing 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 op-
eration of said system. Provided, further, that
this covenant shall not prevent said Village
from disposing of its sewage treatment facilities
in the event that adequate sewage treatment can
be provided by another municipal corporation,
and if the earnings of the remaining system will
continue to be adequate to meet the requirements
of this ordinance, as determined from the audit
for the last completed fiscal year adjusted by
an independent consulting engineer to reflect the
change in operations and the rates then in effect.
The proceeds from the sale of any property shall
be credited to the Depreciation, Improvement and
Extension Account hereinabove established in Sec-
tion 9 of this ordinance.
(f) That the provisions of this ordinance shall con-
stitute a contract between the Village and the
holders of the bonds authorized to be issued, and
any holder of a bond or bonds, or any of the coupons
of any bond or bonds, issued hereunder, may either
in law or equity, by suit, action, mandamus or
other proceedings, enforce or compel performance
by the officials of said Village of all duties re-
quired by law and by this ordinance, including the
making and collecting of sufficient charges and
rates for the water and sewerage services supplied
by said system, and the application of the income
and revenue therefrom.
(g) That the Village will carry insurance on said sys-
tem of the kinds and in the amounts which are
usually carried by private parties operating sim-
ilar properties, including, without limiting the
generality of the foregoing, fire, windstorm insur-
ance, public liability, and all additional insurance
covering such risks as shall be recommended by a
competent consulting engineer employed for the pur-
pose of making such recommendation, and all moneys
received for loss under such insurance policies
shall be deposited in the Depreciation, Improvement
and Extension Account, and used in making good the
loss or damage in respect of which they were paid,
either by repairing the property damaged or replac-
ing the property destroyed and provision for making
good such loss or damage shall be made within ninety
(90) days from date of loss . The payment of premiums
-20-
for all insurance policies required under the
prov1sions of this covenant shall be considered
an oleration and maintenance expense .
The proceeds derived from any and all policies
for public liability shall be credited to the
Operation and Maintenance Account and used in
paying the claims on account of which they were
received.
Section 11. 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 Vil-
lage by the President and Board of Trustees,
additional bonds on a parity with the bonds auth-
orized hereunder for the purpose of constructing
improvements, replacements and extensions of the
combined system, or for the acquisition of addi-
tional waterworks and sewerage systems, or any
combination thereof, or for the purpose of re-
funding any of the Waterworks and Sewerage Rev-
enue Bonds of the Village, or for any combination
of such purposes, but only provided the Village
shall have complied with the following require-
ments :
(1) The amounts required to have been credited
to the respective accounts (a) to (d), in-
clusive, of Section 9 of this ordinance, up
to the date of authorization of said addi-
tional bonds shall have been credited to
said respective accounts; and
(2) The net revenues of the system for the fiscal
year then next preceding, or the adjusted net
revenues of the system for the next preceding
fiscal years, if such revenues are adjusted
as herein provided, have been equal to not
less than one hundred thirty-five per cent
(135 ) of the maximum combined principal 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
-21-
operation of the system, and
(ii) on the additional revenue bonds then
proposed to be issued.
Net revenues for the purpose of this sub-
paragraph (2) shall mean the gross revenues
of the system less the actual costs of op-
eration and maintenance before making pro-
vision for depreciation or other accounts
as required by this ordinance for such fiscal
year or years, and shall be evidenced by an
audit of an independent certified public ac-
countant . Principal and interest requirements
shall include principal and interest due May
1 as a requirement of the fiscal year ending
April 30 immediately preceding such May 1 ma-
turities .
In the event there shall have been a change
in the rates of the system from the rates
in effect for the immediately preceding fiscal
year, which change is in effect at the time
of the issuance of any such additional bonds,
then the net revenues as provided in this sub-
paragraph (2) shall be adjusted to reflect the
net revenues of the system for the immediately
preceding fiscal year as they would have been
had said then existing rates been in effect
during all of said year. Any such adjusted
net revenues shall be evidenced by the cer-
tificate of a certified public accountant or
an independent consulting engineer employed
for that purpose, which certificate shall be
approved by the President and Board of Trustees
prior to issuance 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 (3) months of the date of refunding and for the
Payment of which no other funds are or will be avail-
able at the maturity thereof.
(c) 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 1
and November 1.
Section 12. The rights and obligations of the Village and
of the holders of the bonds may from time to time be modified or
-22-
amended by a supplemental ordinance adopted by the President and
Board of Trustees with the written consent of the holders of not
less than two-thirds (2/3rds) of the principal amount of all of the
bonds authorized by this ordinance, and all bonds hereafter issued
on a parity therewith, then outstanding (excluding any of said bonds
owned by or under the control of the Village) ; provided, however,
that no such modification or amendment shall extend or change the
maturity of or date of redemption prior to maturity, or reduce the
interest rate on, or otherwise alter or impair the obligation of
the Village to pay the principal of and interest on the bonds here-
in authorized, at the time, place and at the rate, and in the cur-
rency, provided therein of any bond herein authorized then outstand-
ing, without the express consent of the holder of such bond, nor
shall any such modification or amendment permit the creation of a
preference or priority of any bond or bonds over any other bond or
bonds, nor reduce the percentage of the holders of outstanding bonds
required for the written consent of such modification or amendment .
Each such consent must be accompanied by proof of ownership of the
bonds for which consent is given, which proof must be in a form
approved by the President and Board of Trustees, and each such con-
sent and proof of ownership must be on file with the Village Clerk
prior to the adoption of such modifying or amendatory ordinance.
Section 13. 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 in such manner as they may here-
after determine; provided, however, that if the acceptable bidder
offers to purchase said bonds bearing interest at a lesser rate than
the maximum interest rate hereinabove prescribed in this ordinance,
then the President and Board of Trustees shall, upon making the
-23-
award of sale of said bonds to such bidder, adopt a resolution re-
ducing the interest rates on such bonds in accordance with the terms
of the acceptable bid, and such rate or rates being less than the
rate hereinabove prescribed in this ordinance, and such bonds shall
thereafter be prepared bearing interest at such reduced interest
rates in accordance with the resolution confirming sale thereof,
and after the execution of said bonds in the manner as herein pro-
vided, the same shall then be delivered to the Treasurer of the
Village and be by him delivered to the purchaser thereof upon re-
ceipt of the purchase price therefor. The resolution to be adopted,
and awarding the contract for the sale of said bonds to the pur-
chaser thereof, shall also designate the bank at which the bonds
and interest coupons will be payable.
Section 14. The proceeds received as principal from the
sale of the Waterworks and Sewerage Revenue Bonds, Series 1971,
authorized by the terms of this ordinance, together with the pro-
ceeds of sale of the $2,000,000 general obligation bonds to be auth-
orized, shall be placed in a separate bank account to be designated
the "Waterworks and Sewerage System Acquisition and Construction
Fund Account of the Village of Oak Brook", and shall be deposited
in a bank or banks to be hereafter designated by the President and
Board of Trustees of the Village of Oak Brook as depository ,
for the funds of said account
XXXXXXXXXXXXXXXXXR�T�dI� XX �1dXT�3�X� �X�XL1tX$1�X�IdX�g'X � 7dXE�$R
Simultaneously
with the delivery of said bonds, the sum of $ 5,163 ,851.00 shall be
disbursed for the purpose of acquiring the combined waterworks and
sewerage system now owned by the Oak Brook Utility Company and the
necessary land. The accrued interest and the sum of $5$,550, repre-
senting interest on said bonds for the estimated period of con-
struction of the proposed improvements and extensions, shall be
-24-
deposited in the Bond and Interest Account herein established, and
the balance of said funds shall be held and used solely to construct
the improvements and extensions to the combined waterworks and sewer-
age system of said Village, all as herein provided for in the pre-
ambles of this ordinance . The funds in said account shall be held
for the benefit of said Village for the purposes herein provided,
and for the benefit of the holder or holders of the bonds hereby
authorized as their interest may appear, and said funds shall be
withdrawn from said Depositary from time to time by the Treasurer
of the Village only upon submission by him to said Depositary of the
following:
(a) A duplicate copy of the order signed by the Pres-
ident and 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;
and
(b) Each withdrawal of funds by the Treasurer for pay-
ment to a contractor or contractors for work done
in connection with the construction of said project
shall also be accompanied by a certificate executed
by the engineer in charge of the construction of
such improvements and extensions, stating the nature
of the work completed and the amount due and payable
thereon.
Within sixty (60) days after completion of the work in ac-
cordance with plans and specifications therefor, as herein referred
to, and as heretofore approved by the President and Board of Trus-
tees of said Village, and after all costs have been paid in connec-
tion with the construction thereof, the engineers shall certify to
the President and Board of Trustees of the Village the fact that the
work has been completed according to said plans and specifications,
-25-
and upon approval of the completion of the work based upon the
engineer' s certificate by the President and Board of Trustees, and
after all costs have been paid, the President, Village Clerk and
Engineer shall execute a certificate and file it with the Depositary
certifying that the work has been completed in accordance with the
said plans and specifications, that all costs have been paid, and
if at that time any funds remain in said Waterworks and Sewerage
System Acquisition and Construction Fund Account the same shall be
transmitted by said Depositary to the Treasurer of said Village and
said Treasurer shall credit said funds to the Depreciation, Improve-
ment and Extension Account .
The cost of engineering, legal and financial services,
the cost of surveys, designs, soundings, borings, rights of way,
and all other necessary and incidental expenses, shall be deemed
items of cost of construction of the project.
Section 15. If any section, paragraph, clause or provi-
sion of this ordinance shall be held invalid, the invalidity of such
section, paragraph, clause or provision shall not affect any of the
other provisions of this ordinance.
Section 16. All ordinances, resolutions or orders, or
parts thereof, in conflict with the provisions of this ordinance,
are to the extent of such conflict hereby repealed.
Section 17. This ordinance after its passage by the
President and Board of Trustees shall be published once in the
Oak Brook Doings, being a newspaper published in and having a gen-
eral circulation in the Village of Oak Brook, Illinois, and if no
petition be filed with the Clerk of said Village within twenty-one
(21) days after the publication of this ordinance, by fifteen per
cent (15%) of the voters voting for President of said Village at the
-26-
last preceding general municipal election, requesting the submission
of the proposition of issuing bonds herein provided for, then this
ordinance shall be in full force and effect .
Introduced: .�- ?_, 1971•
Passed: 1971•
Approved: �G�'�a-- ✓v �iS may, 1971•
S
rest ent
Attest:
L.
Village Cleric
PUBLISHER'S CERTIFICATE
THIS IS TO CERTIFY That the notice, a true copy of which is attached to this
certificate, was published in THE OAK BROOK DOINGS once each week for
---------------------------One------._...__-------- ---------- weeks successively; that the date
of the first publication was the.-----------------------4th-------------------------------day of
March--------------_A.D., 19.-7-1.., and that the date of the last publication was
the-------------------4th-----------------day of---K&rob--------------------- A.D., 19----71--•
AND IT IS FURTHER CERTIFIED That THE OAK BROOK DOINGS is a
secular newspaper of general circulation, published weekly in the Village
of Hinsdale, County of DuPage, State of Illinois, and circulated generally
in the Villages of Hinsdale, Clarendon Hills, Oak Brook, Willowbrook, Burr
Ridge, adjacent unincorporated and incorporated areas, and in DuPage and
Cook Counties, Illinois, and in other areas; that said THE OAK BROOK
DOINGS is a "newspaper" as defined by the Illinois Statutes made and pro-
vided for such situations, to wit; by Section 5 of "An Act to revise the law
in relation to notices", 1874, Feb. 13, R.S. 1874, p. 723, § 5, as amended 1959,
July 17, Laws 1959, p. 1494, § 1; and is also a "newspaper" as defined by
Section 1 of "An Act concerning the publication of legal notices", 1909, June
8, Laws 1909, p. 288, § 1, as amended 1927, June 29, Laws 1927, p. 603, §1, and
as further amended 1945, April 12, Laws 1945, p. 1089, §1, and as further
amended in 1957, July 9, Laws 1957, p. 2270, §1, and as further amended
1959, July 17, Laws 1959, p. 1496, §1; and that said THE OAK BROOK DOINGS
has been continuously published at regular intervals of at least once each
week with a minimum of 50 issues per year for over one year prior to the
first publication of the attached notice.
IN WITNESS WHEREOF, one of the co-publishers of said THE
OAK BROOK DOINGS has affixed his hand and seal this
' ------5th------ day of.--- March-------------- A.D. 19-71---.
Publishers Charge._432.12--------
RWS rd
�` L 4
3/l/71 �7' =
Co-publihher