S-360 - 04/27/1976 - BOND - Ordinances _.. .
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ORDINANCE NO. Q *" #%Lso 0"1,4t'T1IATY
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AN ORDINANCE authorizing the issue of W prT%,p
T',bUU_,M%"Vaterworks Revenue Bonds, Series MtA?RVmjVT&+
1976, of the Village of Oak Brook, DuPage RtVEliyE 13ob-
County, Illinois, for the purpose of defray-
ing the cost of constructing improvements
and extensions to the waterworks system of
said Village, prescribing all the details
of-said bonds, and providing for the collec-
tion, segregation and distribution of the
revenues of such waterworks system.
WHEREAS, it is deemed advisable, necessary and for the
best interests of the Village of Oak Brook, Dupage County, Illinois,
to construct improvements and extensions• to its municipally-owned
waterworks system to serve the needs of the Village (which water-
works system, including all properties, facilities and equipment
now or hereafter owned by the Village, whether lying within' or with-
out its boundaries, and including all real estate and real and per-
sonal property of every kind and nature comprising any part or used
or useful or convenient in the operation of the waterworks system
of the Village, is sometimes hereinafter designated the "system");
and
WHEREAS, the President and Board of Trustees of the Vil-
lage have heretofore approved preliminary plans and specifications
and an estimate of cost for the construction of improvements and
extensions to the system in the amount of $3,110,000, including
necessary costs of engineering and supervision, legal and financial
services, bond discount and contingencies, and in order to provide
the funds necessary to pay such cost it will be necessary for the
Village to borrow money and in evidence thereof issue its Waterworks
Revenue Bonds in the amount of $3,000,000; and
WHEREAS, pursuant to Ordinance No. S-268, adopted Novem-
ber III, 1972, the Village has heretofore authorized the issuance of
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$3,300,000 Waterworks Revenue Bonds, Series 1973,
of whict: issue
bonds in the amount of $3,250,000 are now outstanding, and in Sec-
tion Ll(a) of said ordinance the Village reserved the right to
issue additional bonds on a parity with the bonds authorized by
said ordinance for the purpose of constructing improvements, re-
placements and extensions of the system upon compliance with the
following requirements:
"(1) The amounts required to have been credited
to the respective accounts (a) to (d), in-
clusive, of Section 9 of this ordinance (No.
S-268), up to the date of authorization of
said additional 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 year, 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,
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(i) All bonds then outstanding payable from
the revenues to be derived from the op-
eration of the system; and
(ii) On the additional revenue bonds then pro-
posed 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 opera-
tion 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 an audit of
an independent certified public accountant.
Principal and interest requirements shall in-
clude principal and interest due May 1 as a
requirement of the fiscal year ending April
30 immediately preceding such May 1 maturities."
and
WHEREAS, the revenues of the system computed in the -
ner provided in the above paragraph have been determined to be
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sufficient for the issuance of the additional parity bonds now pro-
posed to be issued; and
WHEREAS, the revenues of.the system have not been
pledged or hypothecated in any way or for any purpose except for
the payment of the outstanding bonds authorized by the ordinance
above mentioned; and
WHEREAS, pursuant to the provisions of Division 129 of
Article 11 of the Illinois Municipal Code, approved May 29, 1961,
as amended, the Village is authorized to issue revenue bonds in an
amount sufficient to pay the cost of improving and extending the
waterworks system of the Village, as aforesaid, and the income and
revenue derived and to be derived from the operation of the system
will be fully adequate to provide for the payment of the new bonds
so proposed to be issued:
NOW, THEE, 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. it is considered necessary and for the best
interests of the Village of Oak Brook that said Village construct
improvements and extensions to the waterworks system of said Vil-
lage, including constructing and installing threi new wells,
acquiring the necessary land therefor, constructing a 3j X421i0 _
gallon reservoir, cast iron water mains, installing a telemetering
system, together with all necessary appurtenances, connections and
controls, all as more fully set forth in the preliminary plane,
specifications and estimate of cost heretofore approved by the
President and Board of Trustees of said Village and now on file
for {public inspection in the office of the Village Clerk.
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Section 2. The President and Board of Trustees have
heretofore estimated and do hereby estimate that the coat of con-
structing said improvements and extensions, including necessary
costs of engineering and supervision, legal and financial ser-
vices, bond discount and contingencies, is the sum of $3,110,000.
Section 3. The Village does not have sufficient funds
available to pay the cost of constructing such improvements and
extensions, and it will require the issuance by said Village of
Waterworks Revenue Bonds in the principal amount of #3000,000.
Section 4. The President and Board of Trustees do
hereby determine the period of usefulness of such waterworks eye-
tem, 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. For the purpose of defraying the cost of
constructing said improvements and extensions referred to above,
there shall be issued revenue bonds of said Village of flak Brook
in the principal amount of $3,000,000, each to be designated
"Waterworks Revenue Bond, Series 1976," to be dated August 1,
1976, of the denomination of $5,000 each, numbered consecutively
from 1 to 600, inclusive, bear interest at the rate of not to ex-
ceed eight per cent (8x) per annum, payable November 1, 1.976 and
semiannually thereafter on the first days of May and November in
each year until paid, and said bonds to mature aerially on May 1
of each of the years and in the amounts as f0110w$t
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Principal
Amount Maturity
$100,000 1978
125,000 1979 to 1981, inclusive
150,000 1982
175,000 196
200,000 198? to 1986, inclusive
225,000 1987 and 1988
250,000 1989
275,000 1990
300,000 1991
325,000 1992
Section 6. Both principal of and interest on said Water-
works Revenue Bonds, Series 1976, shall be payable in lawful money
of the United States of America at such bank or trust company as
may hereafter be agreed upon between the purchaser of said bands
and the President and Board of Trustees of said Village. Said
bonds shall be signed by the President, sealed with the corporate
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seal of said Village, and attested by the Village Clerk, and the
interest coupons attached to said bonds shall be executed by the
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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 signa-
tures appearing on said coupons.
Said bonds, together with interest thereon, shall be pay-
able solely frnm the revenues derived from the waterworks system
of said Village, inel"ding all improvements and extensions thereto,
and such bonds shall not in any event constitute an indebtedn*as
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 pr1or to maturity, in the
name of the holder, on the books of said Village ire the office of
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'J ' 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 ar assigns. Such
registerew 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. Registration
of any of such bonds shall not affect the negotiability of the
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coupons thereto attached, but such coupons shall be transferable
by delivery merely.
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 of the bonds
authorized by this ordinance, and all bonds heretofore or 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 crea-
tion 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 modif eg-•
Lion 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,
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and each such consent and proof of ownership must be on file with
the Village Clerk prior to the adoption of such modifying or amend-
ator:* ordnance.
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Section 7. Said bonds and coupons atta^hed thereto shall
be in substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS • COUNTY OR DU PAGE
VILLAGE OF OAK BROOK
WATERWORKS REVENUE BOND, SERIES 1976
Number $! ,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 Fund of said Village of
Oak Brook, as hereinafter mentioned and not otherwise, the sum of
FIVE THOUSAND DOLLARS ($5,000) on May 1, 19,^,, together with inter-
est on such principal sum from the date hereof until paid at the
rate of per cent ( x) per annum, payable
November 1, 1976 and semiannually thereafter on May l 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
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5-340
This bond is one of an authorized issue of $3,000,000,
numbered from 1 to 600, inclusive, of the denomination of Five
Thousand Dollars ($5,000) each, due serially on May 1 of each of
the years 1978 to 1992, inclusive. This bond and each Mond of
the :cries of ;which it forms a part is payable solely from rev-
enues derived from the operation of the waterworks system of said
Village and not otherwise, and is issued under authority of Divi-
sion 129 of Article 11 of the Illinois Municipal Code, approved
May 29, 1961, and all laws amendatory thereof and supplementary
thereto, for the purpose of paying the cost of constructing neces-
sary improvements and extensions to the waterworks system of said
Village, and this bond does not constitute an indebtedness of said
Village within any constitutional or statutory limitation.
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 waterworks
system of said Village shall be deposited in a separate fund desig-
nated as the "Waterworks Fund of the Village of Oak Brook", which
shall be used only and is hereby pl,°dged for paying the cost of
operation and maintenance of said eystem, 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
waterworks system, and in making all payments required to maintain
the accounts created under the terms of the ordinance pursuant to
which 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
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Trustees with the written consent of the holders of not less than
two-thirds (2/3rds) of the principal amount of all the bonds au-
thorized by this ordinance and all bonds heretofore or 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 mod-
ification 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 Fund the revenues re-
ceiind from the Dperation of said waterworks 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 aced service of said waterworks oyster, and collect and account
for the revenues from said waterworks system, sufficient at all
times to pay the cost of maintenance and operation or said system,
provldq an ndeqiiate depreciation fund, and to promptly pay prin-
ctpal or and Interest on all bonds issued by said Village which by
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their terms are payable solely from the revenues of said water-
works system, and to comply with all of the covenants of the or-
dinance 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 bonds 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 registration
of this bond shall not restrict the negotiability of the coupons
by delivery merely.
IN WITNESS WHEREOF, the Village of Oak Brook, AuPage
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 August, 1976.
P—rca4efft,
Village of Oak Brook,
[SEAL] AuPage County, Illinois.
Attest:
age er +
Village of Oak Brook,
DuPage County, Illinois.
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JA (Form of Coupon)
Number $
On the first day of , 19,_,_, the Village of
Oak Brook, DuPage County, Illinois, will pay to bearer out of the
Waterworks Fund of said Village
Dollars ($ ) in lawful money of the United States of America
at ,
in the , being interest
then due o:1 its Waterworks Revenue Bond, Series 1976, dated August
1, 1976, Number
PresidenE,
Village of Oak Brook,
Attest: DuPage County, Illinois.
age er ,
Village of Oak Brook,
DuPage County, Illinois.
(Form for Registration)
Date of Signature of
Registration In Whose Name Registered Village Treasurer
Section 8. Upon the issuance of any of the Waterworks
Revenue Bonds, Series 1976, herein provided for, the entire manic-
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1pal waterworks system of said Village of Oak Brook, for the pur-
pose of thI s ordinance;, shall continue to be operated on a fiscal 1
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year basis commencing the first day of May and ending the last day
of April of each succeeding year. From and after the delivery of
any bonds issued under the provisions of this ordinance, all the
revenues from any source whatsoever derived from the operation of
the waterworks 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 has heretofore
been created and is hereby continued, designated as the "Waterworks
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 maintenance of said waterworks
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 rev-
enues derived from the waterworks system of said Village, and for
the creation, maintenance and expenditure of the respective ac-
counts hereinafter provided for.
Section 9. The several special accounts heretofore
created and established by the provisions of Ordinance No. S-268
within the Waterworks Fund shall be continued and maintained,
such accounts being designated severally "Operation and Maintenance
Account", "Bond and Interest Accaant", "Bond Reserve Account",
"Depreolation, Improvement and Extension Account", and "Surplus
Revenue Account", into which there shall be not aside on the first
business day of each month without any further official action or
direction all moneys held in the Waterworks 'Fund of said Villap,
In accordance with the following priority:
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(a) OPERATION AND MAINTENANCE ACCOUNT:
There shall be credited to the Operation and
Maintenance Account on the first business day of
each month an amount sufficient to pay the rea-
sonable expense of operation and maintenance of
said waterworks system for the next succeeding
month, including, without limiting the generality
of the foregoing, salaries, wages, costs of ma-
terials, supplies, insurance and power, and in-
cluding one-twelfth of all such expenses computed
on an annual basis.
(b) BOND AND INTEREST ACCOUNT:
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 10 1976
has been deposited in said account. From and
after November 1, 1976, 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 bonde authorized pursuant to this or-
dinance and including the interest to become due
on all bonds heretofore issued and outstanding
and 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 there shall also 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 au-
thorized herein and including bonds heretofore
issued and outstanding and on all bonds hereafter
Issued and on a parity with the bonds herein au-
thorized 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 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 :,.s,,d only for
the purpose of paying interest and ,,�ipal on
the bonds hereby authorized, and inch. Ing such
bonds as may be 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.
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S-360
A,# 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) BONA RESERVE ACCOUNT:
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
$4,500 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 au-
thorized pursuant to this ordinance and including
such bonds as may be heretofore or hereafter
issued and on a parity with the bonds herein au-
thorized at any time when there are insufficient
funds available in the Bond and Interest Account
to pay such principal 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 succeeding 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 Ac- i
count, or may be used for calling and redeeming
bonds prior to their maturity, or for purchasing
on the open market at not more than par and ac-
crued interest any of the bonds 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 redemption date of
any bonds, and all such bonds purchased or re-
deemed shall be cancelled.
The amount above specified to be credited each
month to said account is inclusive of, and not in
addition to, the requirements of Ordinance No.
S-268, which authorized the outstanding Series
1973 Bonds, which by their terms are payable from
the revenues of the waterworks system of the Vil-
lage.
(d) DEPRECIATION, IMPROVEMENT ANA EXTENSION ACCOUNT:
There shall next be credited to the Depreciation,
Improvement and Extension Account on the first
business day of each month the sum of $8,250 each
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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 then for improvement or extension of
the system. Said funds shall be used at any time
to pay principal of or interest upon any outstand-
ing bonds payable from the system whenever there
are no other funds available to pay the same; pro-
vided, however, that from and after such time as
said account aggregates the sum of $400,000, any
sums in excess thereof may be transferred to the
Bond Reserve Account or to the Surplus Revenue Ac-
count at the discretion of the President and Board
of Trustees.
The amount above specified to be credited each
month to said account is inclusive of, and not in
addition to, the requirements of Ordinance No.
5-25$, which authorized the outstanding Series
1973 Bonds, which by their terms are payable from
the revenues of the waterworks system of the Vil-
lage.
(e) In the event that in any month there are insuffi-
cient moneys in the Waterworks 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 prior-
ity in which said funds are herein listed.
(f) SURPLUS REVENUE ACCOUNT:
All revenues remaining in the Waterworks 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 bt. 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 fis-
cal year as herre ,nabove provided.
(2) For prying principal of or interest on any
junior lion bonds (subordinate issuer).
(3) For any lawful, corporate purpose
(v) Moneys remaining in any of the accounts hereinabove
created may by resolution of the President and
ttonrd of Trustees be invented from time to time in
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direct or fully guaranteed obligations of the
United States Government, or in certificates of
deposit further secured by such eligible invest-
ments, maturing not later than the earliest date
on which it is estimated the moneys in said ac-
counts will be needed, but in no event later than
five (5) 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 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 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 depositories by the ,President
and Hoard 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 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. 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 interest:
(a) The Village will maintain said waterworks system
and all improvements and extensions thereto in
good repair and working order, will operate the
same efficiently and faithfully, and will punc-
tually perform all duties with respect thereto re-
quired by the Constitution and laws of the State
of Illinois.
(b) The Village will establish and maintain at all
times reasonable fees, charges and rates for all
users of the service of said system, provide for
the collection thereof, and provide for the
segregation and application of the revenues of
said system in the manner provided by this or-
dinance, and sufficient at all times to pay the
reasonable costs of operation and maintenance,
to pay the principal and interest 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 in Section 9 of
this ordinance, and from time to time make all
needful and proper repairs, replacements, addi-
tions and betterments to said system so that the
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` system may at all times be operated properly and
advantageously, and when any equipment or facil-
ity shall have been worn out, destroyed or other-
wise 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
times fully maintained.
Charges for service rendered the Village shall be
made against said Village and payment for the same
from the corporate funds shall be made monthly
into the Waterworks Funds created by this ordi-
nance, as revenues derived from the operation of
the waterworks system, in the same manner as
otht._ revenues are required to be deposited; pro-
vided, however, that the Village need not charge
Itself for water service so long as the revenues
of the system are otherwise adequate to meet all
the requirements of this ordinance.
No free service of the system shall be furnished
to any persons, firm, organization, or corpora-
tion, public or private. 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 competing waterworks
system within the Village of Oak Brook, and that
the bonds herein authorized to be executed shall
constitute legally enforceable liens on the rev-
enues of the waterworks system of said Village,
including all further extensions, additions and
improvements thereto, whether acquired through
purchase, contract or otherwise.
(e) The Village will establish such rules and regula -
tions for the control and operation of said sys-
tem 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 au-
thorized by this ordinance have been paid in full,
both as to principal and interest.
(d) The Village will make and koep 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 ac-
counts of said system to be audited annually by
Independent certified public accountants shoving
the receipts and disbursements on account of said
system, and 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
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generality of the foregoing, include the follow-
ing:
(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 fis-
cal year.
(3) The accountant's comment regarding the man-
ner in which the Village has carried out
the accounting requirements of this ordi-
nance, and the accountant's recommendations
for any changes or improvements in the op-
eration 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 pol-
icy, the risks covered, the name of the in-
surer, and the expiration date of the policy.
(5) The number of rater 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.
It is further covenanted and agreed that a copy
of each such audit shall be furnished upon com-
pletion to the original purchaser of the bonds
herein authorized, and a summary thereof shall be
furnished to any bondholder on request. In addi-
tion, statements 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 authorized, and shall also be
furnished to any bondholder upon request.
(e) So long as any of the bonds authorized hereunder
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
said bonds hereby authorized shall be paid In full,
both principal and interest, or unless and until
provision shall have been made for the payment
thereof; provided, however, that this covenant
shall not prevent said Village from disposing of
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any property which In the judgment of the Prea-
ident and Board of Trustees is no longer useful
or profitable in the operation of said system,
nor essential to the constinued operation of said
system.
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) The provisions of this ordinance shall constitute
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 In
any civil 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 col-
lecting of sufficient charges and rates for the
water services supplied by said system, and the
application of the income and revenue therefrom.
I
(g) The Village will carry insurance on said system
of the kinds and in the amounts which are usually
carried by private parties operating similar prop-
erties, including, without limiting the generality
of the foregoing, fire, windstorm insurance, pub-
lic liability, and all additional :insurance cover-
ing such risks as shall be recommended by a com-
petent consulting engineer employed for the pur-
pose of making such recommendation, and all moneys
received for loss under such insurance policies
shall be deposited i n the Depreciation, Improve-
ment rave-
ment and Extension Account and used in masking good
the loss or damage in respect of which they were
paid, either by repairing the property damaged or
replacing 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 for all insurance pollcles
required under the provisions of this covenant
shall be considered an operation and maintenance
expense.
The proceeds derived from any and all policies
for public liability shall be credited to the Op-
eration and Maintenance Account and used in pay-
ing the claims on account of which they were re-
ceived.
Section 11. 1t Is hereby covenanted and agreed that,
while any of the bonds issued hereunder are outstanding, the Vil-
lage will riot issue any other bonds or obligations or any kind or
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nature having a pledge on the revenues of the system which in 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 au-
thorized hereunder for the purpose of construct-
ing improvements, replacements and extensions of
the system, or for the acquisition of additional
waterworks systems, or for the purpose of refund-
ing any of the Waterworks Revenue Bonds of the
Village, or for any combination of such purposes,
but only provided the Village shall have complied
with the following requirements:
(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 fis-
cal year then next preceding, or the adjusted
net revenues of the system for the next pre-
ceding fiscal year, if such revenues are
adjusted as herein provided, have been equal
to not less than one hundred thirty-five per
cent (135x) of the maximum combined principal
and interest requirements for any succeeding
fiscal year during the life of the then out-
standing bonds, of -
(1) 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 sub-
paragraph (2) shall mean the gross revenues
of the system less the actual costs of op-
eration and maintenance before making provi-
sion 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 require-
ments shall include principal and interest
due May 1 as a requirement of the fiscal
year ending April 30 immediately preceding
such May 1 maturities.
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In the event there shall have been a change
in the rates of the system from the rates
in effect for the immediately preceding fis-
cal 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 subparagraph (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 certificate of a certified public ac-
countant or an independent consulting engineer
employed for that purpose, which certificate
shall be approved by the President and Board
of Trustees prior to the issuance of the addi-
tional bonds and filed with the Village Clerk
upon its approval.
(b) Notwithstanding the foregoing provisions, the Vil-
lage 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 refund-
ing and for the payment of which no other funds are
or will be available 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.
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Section 12. 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 hereafter determine;
provided, however, that after the bonds have been awarded to the
successful bidder, the President and Board of Trustees shall adopt
a resolution fixing the interest rates on such bonds in accordance
with the terms of the acceptable bid, and such bonds shall thereafter
be prepared bearing interest at such interest rates in accordance with
the resolution confirming sale thereof. After the execution of said
bonds in the manner as herein provided, the same shall then be deliv-
ered to the Treasurer of the Village and be by him delivered to the
purchaser thereof upon receipt of the purchase price therefor. The
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a®
resolution to be adopted confirming the contract of sale of said
bonds to the purchaser thereof and fixing the interest rates skull
also designate the bank at which the bonds and interest coupons
will be payable.
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Section 11. The proceeds received as principal from the
sale of the Waterworks Revenue Bonds, Series 1976, authorized by
the terms of this ordinance, shall be placed in a separate bank j
account to be designated the "Waterworks System Construction Fund
Account of the Village of Oak Brook (1976)", and shall be deposited '
in a bank or banks which shall hereafter be designated as depos-
itories by the President and Board of Trustees of the Village of
Oak Brook, Illinois. The accrued interest shall be deposited in
the Bond and Interest Account herein established and maintained,
and the balance of said funds shall be held and used solely to con-
struct the improvements and extensions to the waterworks system of
said Village, all as herein provided for in 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 depository from
time to time by the Treasurer of the Village only upon submission
by him to said depository of the following:
(a) A duplicate copy of the order signed by the
President 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
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shall also be accompanied by a certificate ex-
ecuted by the engineer in charge of the con-
struction 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
accordance with the plans and specifications therefor, and after
all costs have been paid in connection 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, 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 depository certifying that the
work has been completed in accordance with the plans and specifica-
tions, and that all costs have been paid. If at that time any funds
remain in said Waterworks System Construction Fund Account, the same
shall be transmitted by said depository to the Treasurer of said
Village and said Treasurer shall credit said funds to the Deprecia-
tion, Improvement and Extension Account.
The cost of engineering, legal and financial services,
the cost of surveys, designs, soundings, borings, real estate,
rights-of-way, and all other necessary and incidental expenses,
shall be deemed items of cost of construction of the project.
The moneys credited to the Construction Fund Account may
be invested from time to time in direct obligations of the United
States of America, or in certificates of deposit secured by such
direct obligations, having a maturity not later than the date or
dates when such funds will be needed, such date or dates to be
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determined from time to time by the President and Board of 'Trustees,
and any such investments shall be promptly soli' without further au-
thority of the President and Board of Trusters whenever necessary
to provide money to carry out the purposes for which such account
was created.
The proceeds of sale of the bonds will be used and de-
voted with due diligence for the purposes as provided herein, and
said Village covenants and agrees with the purchasers and holders
of the bonds herein authorized as follows;
(a) 'Within six (5) months after the delivery of said
bonds, said Village expects to incur substantial
binding obligations in connection with the con-
struction program herein authorized, said obli-
gations being in an aggregate amount not less
than 2-1/2% of the principal amount of the bonds
herein authorized;
(b) The President and Beard of Trustees expects more
than 85% of the spendable proceeds of the bonds,
including investment proceeds, will be expended
on or before July 1, 1979, said date being with-
in three (3) years following the date of issue
of said bonds;
(c) The construction work is expected to proceed with
due diligence to completion;
(d) The property, both real and personal, to be
acquired and .constructed with bond proceeds is
not expected to be sold or otherwise disposed of,
In whole or in part, prior to the last maturity
of said bonds;
(e) All of the principal proceeds of the bonds are
needed for the purpose of the construction pro-
gram herein authorized, including expenses in-
cidental to such purpose and to the issuance of
the bonds; and
(f) To the best of the knowledge and belief of the
President and Board of Trustees, there are no
facts, estimates or circumstances that would ma-
terially change the conclusions and representa-
tions set out in this section.
The President and Board of Trustees also certify and cov-
enant with the purchasers and holders of said bonds from time to
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time outstanding that, so long as any of said bonds remain outstand-
ing, moneys on deposit in any fund or account in connection with
said bonds, whether or not such moneys were derived from the pro-
ceeds of the sale of said bonds or from any other source, will not
be used in a manner which will cause such bonds to be "arbitrage
bonds" within the meaning of Section 103(d) of the Internal Rev-
enue Code of 1954, as amended, and any lawful regulations promul-
gated or proposed thereunder, including Sections 1.103-13 and
1.103-14 of the Income Tax Regulations C26 CPR Fart 11, as the same
presently exist, or may from time to time hereafter be amended,
supplemented or revised. The •President and Board of Trustees re-
serve the right, however, to make any investment of such moneys
permitted by state law if, when and to the extent that said Sec-
tion 103(4) or regulations promulgated thereunder shall be repealed
or relaxed or shall be held void by final decision of a court of
competent jurisdiction, but only if any investment made by virtue
of such repeal, relaxation or decision would not, in the opinion
of counsel of recognized competence in such matters, result in
making the interest on said bonds subject to federal income tax&-
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Lion.
Section 14. 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
i
of the other provisions of this ordinance.
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Section 15. 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 16. This ordinance after its passage by the
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President and Hoard 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 Brock, Illinois, and it no
petition be filed with the Clerk of said Village within twenty-ons
(21) days after the publication of this ordinance, by twenty per
cent (20%) of the voters voting for President of said Village at
the last preceding general municipal election, requesting the sub-
mission to the voters of the proposition of constructing the Im-
provements and extensions and issuing bonds herein provided for,
then this ordinance shall be in full force and effect.
* e e
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AXES: Trustees Cerne, Congreve, Glaves, Philip, Hush and
President Howell.
NAYS: True
ABSENT: None
APPROVED:
a"
Attest:
Village er
A A` 0
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villa a it
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