S-268 - 11/14/1972 - BOND - Ordinances . R
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ORDINANCE NO. �� 0".
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AN ORDINANCE authorizing and providing for the i�®. S f
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a ,300,004 Waterworks Revenue Bonds,
Series 1973, of the Village of oak Brook, Dupage � 7
County, Illinois, for the purpose of defraying
the cost of purchasing a waterworks system and
constructing improvements and extensions to said
system, proscribing a13 the details of said bonds,
and providing for the collection, segregation and
distribution of the revenues of the waterworks
system of said Village for the purpose of paying
the coat of the operation and maintenance whereof,
providing an adequate depreciatic--� fund therefor
and paying the principa . and interest of said
waterworks revenue bondo,
WHEREAS, the Village of Oak Brook, AuPage County, Illinois,
has heretofore found it advisable and for the best interest of
said Village to purchase the waterworks system presently operating
within and in the environs of the Villlage of Oak Brook and now
awned by the Oak Brook Utility Company, said waterworks to include
the water supply facilities consisting of wells, a combined capacity
of approximately 3,780 gallons per minute, two (2) 250,000 gallon
elevated steel water storage tanks, a waterworks distribution system
consisting of more than 38 miles of water distribution mains, varying in
diameter from 4 inches to 16 inches, appurtenant fire hydrants,
house services and water meters; together with the land, sawasents,
and interests in land in connection with sail, waterworks 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 thereoft and
WHEREAS, said Village of Oak Brook has determined that it is
desirable to provide for the continuation of said waterworks system
and for the operation of the *me* all in accordance with the provisi.ossi
of Oivisi.on 129 of Article 11 of the Illinois Municipal Code, approved.
May 29, 1961, as amended# and
SRBAB, it is deemed advisable, necessary and in the inter-
eats of public health of the Village of Oak Brook that said waterworks
system be Improved and extended by the voinstruction and lnStall,ation
of additional water eosins to ptrovlds► serview to areas of the Vil
not presently serviod, and to Improve the fire fighting oapobility
of safd syx tomf 0n+4
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WHEREAS, the total estimated cost of purchasing said water-
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works system and constructing such improvements and extensions,
including all engineering costs, legal fees, bond discount, con-
sultant fees, cost of acquiring necessary land, and contingencies,
as prepared by the engineers employed for that purpose, is the sum
of $3,300,000; and
WHEREAS, the Village of Oak Brook does not have funds available
for said purpose and it will be necessary for the Village to borrow
the sum of $3,300,000 and in evidence thereof issue its Waterworks
Revenue Bonds in said amount for the purpose of paying the cost
of purchasing said waterworks and constructing said improvements
and extensions to said system, all in accordance with the provisions
of r"Ivision 129 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 Villaar. of Oak Brook, DuPage County,
Illinois, as ,follows:
Section 1. That it in considered for the best interests of
the Village of Oak Brook, DuPage County, Illinois, that said Village
purchase the waterworks system presently operating within and in the
environs of said Village and now owned by the Oak Brook utility
Company and construct improvements and extensions to said system,
and that said waterworks system continue to be operated as a single
utility, in accordance with the provisions of Division 129 of Article
11 of the Illinois Municipal Code, as amended.
Section 2. That the President and Board of Trusts** have
heretofore estimated and do hereby estimate that the cost of purehasina3
said waterworks system and constructing said improvements and extensions,
as not out, in the preambles of this ordinance, is the sum of $3,300,000.
• t on 3. That the Village doss not have sufficient funds
available to pay the cost of purchasing said wat*nmrks systm and
constructinq such improvements and extensions, and that it will
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require the issuance by said Village of waterworks Revenue bonds
in the principal amount of $3,300,000.
on
Section 4. That they President and BOArd of Trustees do
hereby determine the period of usefulness of such waterworks sys°
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. That for the purpose of defraying the cost of
purchasing said waterworks 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 $3,300,000,
each to be designated "Waterworks Revenue Band, Series 19730,
said bonds to be dated February , 1973, be of the denomination
of $5,000 each, be numbered consecutively from 1 to 660, inclusive,
bear interest at the rate of not to exceed six percent (60) per
annum, payable November 1, 1973, and semi-annually thereafter
on the first days of May and November in each year until paid,
said bonds to mature aerially on May 1 of each of the years and
in the amounts as follows (subject to the right of prior reemmption
hereinafter recited) :
Principal
Amount Maturity
$ 50,000 1976
75,000 1977
10010x ` 1978 - 1980, inclusive
125,000 1981 - 1984, inclusive
150,000 1985 w 1987, inclusive
175,000 1988 and 1989
200,000 1990 - 1992, inclusive
225,000 1993 and 1994
250,000 1995
275,000 1956
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provided, however, that of said brands► bonds numbered 246 to
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■9s 660, inclusive, maturing on May 1 of each of the years 1987 to
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1996, inclusive, shall be subject to redemption and payment prior
to their maturity 3t 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, provided further,
that of said bonds, bonds numbered 346 to 660, inclusive, maturing
on May 1 of each of the years 1990 to 1996, inclusive, shall be
subject to redemption and payment prior to their maturity at the
option of the Village, 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, 1989, 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
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registered mail at least thirty (30) days prior to the date
of redemption, or if the holders of any such bonds are unknown,
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then notice of redemption shall be given by publication of such j
notice at least once not less than thirty (30) days prior to
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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 Now York,
New York. Such notice of redemption shall designate the date
and place of redemption of said bonds, which shall be at the
paying agent to be hereafter eosignated, shall designate the
serial number and the a9grogato principal amount of the bonds
to no redeemed, and shall indicate that on the designated date
of redomption said bonds will be redeemed by payment of the principal
thereof and accrued interest thereon, and that from and after
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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 Revenue Bonds, Series 1973, shall be payable in lawful
money of the united States of America at such bank or trust
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company as may hereafter be agreed upon between the purchaser of
said bonds and the President and Board of Trustees of said Vil-
lage. Said bonds shall be signed by the President, sealed with
the corporate seal of said Village, and attested by the Village
Clerk, and the interest coupons attached to said bonds sball 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 siqnatures appearing on said coupons.
Said bonds, together with interest thereon, shall be payable
solely from the revenues derived from the waterworks system of
said Village, including all improvements and extensions thereto, {I
and such bonds shall not in any event constitute an indebtedness
of said Village w ithin the meaning of any constitutional provi-
sion
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 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 pay-
able only to the registered holder, his legal ropresentativws
or assigns. Such registered bonds may be transferable tG 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 coupons thereto attached, but such coupons
.shah, be transferable by delivery merely,
Section Z. That said bonds and coupon* attached thereto
shall be in substantially the following formt
S_A49
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(Form of Bond)
UNITED STATES OF AMERICA
no
STATE OF ILLINOIS COUNTY OF DU PAGE
VILLAGE OF OAK BROOK
WATERWORKS REVENUE BOND, SERIES 1973
Number $5,000
KNOW ALL -MEN BY THESE PRESENTS, that the Village of Oak
Brock, DuPage County, Illinois, for value received hereby pro-
mises to pay to bearer, or if this bond be registered as to prin-
cipal, 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 19 together with
interest on such principal sum from tha date hereof until paid
at the rate of percent per annum,
payable November 1, 1973, and semiannually thereafter on May I
and November 1 in each year, upon presentation and surrender
of the interest coupons hereto attached as they severally be-
come due.
Both principal of and interest on this bond are hereby made
payable in lawful money of the United States of America at
Thit bond and the series of which it forms a part in pay-
able solely from revenues derived from the waterworks system Of
said village and not otherwise, and is issued under authority of
Di0xion 129 of Article 11 of the Illinois Municipal Code, ap-
proved May 29, 1961, and all laws amendatory thereof and supple
mpritary thereto, for the purpose of paying the cost mf pur-
ckuw,jinq A wntorworks system and constructing necessary improve-
iopntn And ext(tnalons to said ftyMtOffl, and this bond does not Con-
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stitute an indebtedness of said Village within any constitutional
or statutory limitation.
AN This bond is one of an authorized issue of $3,300,000,
numbered from 1 to 660, 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 246 to 660, inclusive, maturing on
May 1 of each of the years 1987 to 1996, inclusive, are redeem-
able 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, provided further,
that of said bonds, bonds numbered 346 to 660, inclusive, maturing
on May 1 of each of the years 1990 to 1996, inclusive, shall be
subject to redemption and payment prior to their maturity at the
option of the Village, 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, 1989, 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. 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.
Whon any or all of said bonds which by their terms have become
sub-ec t,. to redemption and payment prior to their maturity shall
have been called for redemption, and payment mode or provided
for, tntereat thereon shall cease from and aft�r the elate no
a eciffed.
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Under said Code and the ordinance adopted pursuant thereto,
authorizing the issuance of this bond and the series of which it
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forms a part, the revenues from the operation, of the waterworks
system of said Village shall be deposited in a separate fund
designated as the "Waterworks Fund of the Village of Oak Brook",
which shall be used only and is hereby pledged for paying the
cost of operation and maintenance of said system, providing an
adequate depreciation fund and paying the principal of and in-
terest 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 pay-
ments 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
Trustees with the written consent of the holders of not less
than two-thirds (2/3rds) of the principal amount of all 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 of ,arwise a'.tor 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 rata and
in the currency provided therein of any bond herein authorised
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 modifi-
cation or amendment.
it is hereby certified and recited that all acts, conditions
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and things required to be done precedent to and in the issuance
of this bond, have been done and have happened and have been
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performed in regular and due form of law, and that provision has
been made for depositing in said Waterworks fund the revenues
received from the operation of said waterworks system to be ap-
plied in the manner as hereinabove net forth, and said village
hereby covenants and agrees that it will fix and maintain rates
for the use and service of said waterworks system, and collect
and account for the revenues from said waterworks system, suffi-
cient at all times to pay the cost of maintenance and operation
of said 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 waterworks 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 notation
of said Treasurer on the back hereof, after which no transfer here-
of 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
delivery, but �,4 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 WjTNEHS WHEREOF, the Village of Oak Brook, DuPage County,
Illinois, by its President and Board of Trustees, has caused this
band to be signed by its President, its corporate seal to be here-
to affixed and attested by the Village Clerk, and the coupons here-
to attached to be signed by the facsimile signatures of said
President and said Village Clerk, which offioislit by the exeQu-
tion of this bond, do adopt as and for their own proper signatures
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their respective facsimile signatures appearing on said coupons,
I�IM and this bond to be dated as of the first day of February, 1973.
President, 'Village o Oa Broo
DuPage County, Illinois
Attest:
Village Clerk, Village of Oak Brook
DuPage County, Illinois
(Form of Coupon)
Ninnber $
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 Fund of said Village
Dollars ($ ) in lawful money of
the United States of America, at
in the
being interest then due on its Waterworks Revenue Bond, Series
1973, dated February 1, 1973, Number
P�r-6-iiident,-V'illage of Oak Brook
DuPage County, Illinois
Attest:
V11lage er , Vrilage of a roo
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 296 to 660, inclusive, representing interest maturing
after the optional date of the bond to which it is attached.)
NOW4
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(Form for Registration)
Date of Signature of
Registration In Whose' Name Regi`8ter`ed Vi'llaso Treasurer
A., ._
Section 8. That upon the issuance of any of the Waterworks
Revenue Bonds, Series 1973, herein provided for, the entire muni-
cipal waterworks system (sometimes 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 delivery of any bonds
issued under the provisions of this ordinance, all the revenues
from any source whatsoever derived from the operation of the water-
works system of said Village of Oak Brook, including all future
improvements and extensions thereof, shall be set aside as col-
lected and be deposited in a separate fund which is hereby created
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to be 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 ordi-
nance, 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 revenues derived from
the waterworks system of said Village, and for the creation and
expenditure of the respective accounts hereinafter provided for.
5ac� Lion 9. That there be and there are hereby created and
established separate special accounts to be designated severally
"Operation and Maintenance Account", "Bond and interest Account",
"Bond Reserve Account", "Depreciation, Improvement and Extension
Account", and "Surplus Revenue Account", into Which thmrs shall
be set aside on the first business day of each month Without anY
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further official action or direction all monies held in the
Waterworks Fund of said Village, in accordance with the follow-
ing 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 water-
works system for the next succeeding month, includ-
ing, without limiting the generality of the fore-
going, 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, 1973,
has neen deposited in said account, and from and
after November 1, 1973, 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
hereafter 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
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 monies
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 here-
after 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 Rccoun,,*.,..
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 interesti provided
that all fiscal agency too* shall be paid from the
Operation and Maintenance Account.
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(c) Beginning on the first day of the month following
delivery of the bonds herein authorized, there
to 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.
Monies 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 author-
ized pursuant to this ordinance and including such
bonds as may be hereafter issu6d 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 principal of or
interest on such bonds as the same become due.
Provided, however, that whenevs_ the balance in
said account is equal to the maximum principal and
interest requirements or 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 Account, 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 accrued 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 redeemed shall be can-
celled.
(d) Beginning on May 1, 1973, there shall next
be credited to the Depreciation, Improvement and
Extension 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 monies in said account shall be used first to
provide an adequate allowance for depreciation as
shall be determined from time to time by the Presi-
dent 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 othar funds available to pay the samet 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.
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(a) in the event that in any month there are insuffi-
cient monies in the Waterworks Fund to make the
required monthly credits to any of the foregoing j
'" accounts (a) , (b) , (c) or (d) , then the amount of
such deficiency shall be added to the requirements
for the succeeding month and Yaade up in the prior- {
ity in which said funds are herein listed.
(f) All revenues remaining in the Waterworks Fund,
after all credits and payments have been made to j
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.
(g) Monies 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 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 monies in said accounts
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 mr,nies may be needed for
the purpose for which said accounts have been
created. All accrued interest on any monies 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 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 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 authorised j
that, no long as the bonds or any of them remain outstanding and j
unpaid, either as to principal or interest:
(a) That the Village will maintain said waterworks j
system, and all improvements and extensions thereto,
In good repair and working order, will grate the
same eltiai;entl and faithfully, and will punctually
perform all dutyes with respect thereto required by
the Conetitution and laws Of the Rate of Illinois.
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(b) That the Village will establish and maintain at all
times reasonable fees, charges and rates for all
users of the service of said systesa, and provide
on for the collection thereof and for the segregation
'04 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
in Section 9 of this ordinance, and from time to
time make all needful and proper repairs, replace-
ments, additions and betterments thereto, so that
it may at all times be operated properly and ad-
vantageously, and when any equipment or facility
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 effi-
ciency of said system shall be at all times fully
maintained. Charges for service rendered the
Village shall be made against the said Village,
and payment for the same from the corporate funds
shall be made monthly into the waterworks Fund
created by this ordinance, as revenues derived from
the operation of the waterworks system, in the same
manner as other revenues are required to be depositedi
provided, however, that the Village need not charge
itself for water service so long as the revenues of
the systeua 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 corporation, pu`,lic or private,
and to the extent permitted by law it in expressly
herein covenanted that said Village w .li not grant a
franchise for the operation of any otqer or compet-
ing waterworks system within the Village of Oak. Brook
and that the bonds herein authorized to ,ae executed
shall constitute legally enforceable liens on the
revenues of the waterworks system of said Village,
including all further extensions, additions and im-
provements thereto, whether acquired through pur-
chase, contract 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 econtmicul
operation thereof, and rates and charges shah be
fixed and revised from time to time as maay be
necessary to produce funds sufficient for all pur-
poses herein provided until all of the bonds suth_
orised by this ordinance have been paid in full.,
both as to principal and interest.
I
(d) That the Village will make and keep proper books
and accounts (separat* and apart from all other
records and accounts of said Village) in which
complete entries shall be made of all transaotione
relating to said system, and hereby covenants that
within ninety (90) days following the close of eaeoh
fiscal year it will cause the bookie and acocunts
of said systems to be audited onnuollt by independent
certified public accountants show.i the r"4I pt$
and disbursements on account of said %ystem. and
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that said audit will be available for insnection
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 manner
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 cover-ad, the name of the insurer,
and the expiration date of the policy.
(5) The number of water customers served by the
system at the end of the year, the number of
metered water customers and the number of
linmetered 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-
tioe to the original purchaser of the bonds herein
authorized, and 4 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.
That so long as any of the bonds authorized here-
under are outstanding the Village will not 9011,
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
qa1d bonds hereby authorized shall be paid in
fey) t, both principal and Interest, or unless and
tintil orovision shall: have been made for the pay-
mont thereof provided, however, that this covenant
"hAll not, provant said Village from Oispoming of any
#)ropprty which in the judgment of the President and
Hoard of Trimtoom In no Intigor useful r profitable
In the operation of PAJd SY01toM, "Or 000011tiftl to
!,ho eontl.nkood operation of $Aid *Y"tOm-
-17-
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 authorised to be issued., and
any holder of a bond or bonds, or any of the cou-
pons of any bond or bonds, issued hereunder, may
either in law or equity, by suit, action, mandamus
or other proceedings, enforce or compel performance
key 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 services supplied by said
system, and the application of the income and
revenue therefrom.
(g) That the Village will carry insurance on said
system of the kinds and in the amounts which area
usually carried by private parties operating sim-
ilar properties, including, without limiting the
generality of the foregoing, fire, windstorm insur-
az.-e, public liability, and all additional insur-
ance covering such risks as shall be recommended
by a competent consulting engineer employed for the
purpose of making such recommendation, and all
monies 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 replacing the property destroyed and
provision for making. good such loss or damage
shall be made within ninety (90) Zays from date
of loss. The payment of premiums for all insur-
ance policies 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
Operation and Maintenance Account and used in
paying the claims on account of which they wore
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 than .lien on much revenues of the bonds herein authorized.
(a) said Village reserves the right to issue at on*
time, or from time to time, as shall be found
necessary and for the beat interest of said Village
by the president and board of Trustees, additional
bonds on a parity with the bonds authorized hereunder
for the purpose of constructing improvements, ropleoo-
ments and extensions of the system, or for the ac-
quisition of additional waetorworks systems, or for
It
'18-
the purpose of refunding any of the Waterworks
Revenue Bonds of the Village, or for any combina-
tion of such purposes, but only provided the
on Village shall have complied with the following
requirements:
(1) The amounts required to have been credited
to the respective accounts (a) to (d) , in-
clusi�.,e, 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 percent
(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
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 operation and maintenance before
making provision for depreciation or other accounts
as required by this ordinance for such fiscal year
or years, and shall be evidenced by an audit of an
independent certified public accountant. 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 maturities.
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 not revenues as provided
in this sub-paragraph (2) shall be adjusted to re-
flect the not revenues of the system for the immed-
iately preceding fiscal year an they would have been
had said then existing rates boon in effect during
all of said year. Any such adjusted not revenues
shall be evidenced by the certificate 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 Clark upon Its approval.
(b) Notwithstnndinq the foregoing provisions, the Village
reserves the further right to issue bonds to refund
any of then@ bonds, or bonds on a parity therewith,
provided they are issued to refund bonds duo within
thron (3) months of the dot* of refunding and for the
0
payment of which no other funds are or will be avail-
able at the maturity thereof.
Mr
' $ (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 small mature as
to principal on May 1, and as to interest on May l
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 amend-
ed 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, how-
ever, 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 out-
standing, without the express consent of the holder of such bona,
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 parcentaoe of the holders of out-
standing bonds required for the written consent of such "ifi.ca-
tion or amendment. Each such consent must be accompanied by proof
of ownership of the bonds for which consent is given, which proof
musty be in a form approved by the President and Board of Trustees,
and each such consent and proof of ownership must be on file with
that Village Clark prior to the adoption of such modifying or
dat:or:y ordinance.
section 13. That as soon aftez' this ordinance become of
rest i:vs a# may be, the bonds horein authorised shall be sold by
the President and Board of Trustees in such manner as they may
I I
S--a"
-2Q-
hereafter determinei 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
snaking the award of sale of said bonds to such bidder, adopt a
resolution reducing the interest rates on such bonds in accordance
with the terms of the acceptable bid, and such rate or rates be-
ing 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 con-
firming sale thereof, and after the execution of said bonds in the
manner as herein provided, the same shall then be delivered to the
Treasurer of the Village and be by him delivered to the purchaser
thereof upon receipt of the purchase price therefor. The resolu-
tion to be adopted, and awarding the contract for the sale of said
bonds to the purchaser 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 Revenue Bonds, Series 1973, authorised by the
terms of this ordinance, shall be placed in a separate bank ac-
count to be designated the "Waterworks System Acquisition and
I
Construction Fund Account of the Village of Oak brook", and shall �
be deposited in a bank or banks which shall hereafter be designated i
I
as depositories by the Board of Trustees of the Village: of Oak
Brook, Illinois, for the funds of said account. Simultaneously
with the delivery of said bonds, the sum not to exceed $3,200,000
shall be disbursed for the purpose of acquiring the waterworks
system now owied by the Oak Brook Utility Company and tlae necessary ll,
land. The accrued interest shall be deposited in they end and Inter-
e"t Account herein established, and the balance of said funds shall he
-21-
held and used solely to construct the improvements and extensions
to the waterworks system of said Village, all as herein provided
'j for in the preambles 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 depository from time to time
by the Treasurer of the Village only upon submission by him to
said depository of the following: j
(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 speci-
fically 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
i
(b) Each 'withdrawal of funds by the Treasurer for payment
to a contractor or contractors for work done in con-
nection with the construction of said project shall
also be accompanied by a certificate executed by the
engineer in charge of the construction of such L%prove-
ments and extensions, stating the nature of the work
completed and the amount due and payable thereon.
Within sixty (60) days after completion of the w;- in ac-
cordance with 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 comple-
tion 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 execrate a certifi-
cate and file it with the depository certifying that the work has
been completed in accordance with the plans and specifications,
that all costs have been paid, and if at that time any funds remain
in said Waterworks System Acquisition and 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
aeprnaiation, Improvement and Extension Account.
-22-
The cost of engineering, legal and financial services, the
Me cast of surveys, designs, soundings, borings, rights-of-wty, and
all other necessary and incidental expenses, shall be deemed
items of cost of construction of the project.
Section 15. The proceeds of sale of the bonds will be used
and devoted with due diligence for the purposes ar provided herein,
and the Village of Oak Brook hereby covenants and agrees that, so
long as any of the bonds hereby authorized remain outstanding, and
j notwithstanding any provisions in this bond ordinance to the con-
trary with respect to investment of monies on deposit in the
various special funds or accounts herein mentioned, whether such
monies were derived from bond proceeds, from revenues of the sys-
tem, or from any other source, it will make no use of such monies
which, if such use could have been reasonably expected on the date
of issue of said bonds would have caused such bonds to be classi-
fied as "arbitrage bonds" within the meaning of Section 103 (d)
of the Internal Revenue Code of 1954, as amended, and regulations
j promulgated or proposed thereunder, and in connection with any
such investments, it will comply with the requirements of said
Section 103 (d) and Sections 1.103-13 and 1.103-14 of the Income
Tax Regulations [26 CPR Part 11 as the same presently exist or
may hereafter from time to time be amended and supplemented.
Section 16. if any section, paragraph, clause or provision
of this ordinance shall be held invalid, the invalidity of such
section, paragraph, clause or provision shall not affect any 0;
the other provisions of this ordinance.
Section 17. All ordinances, resolutions or orders, or parks
thereof, in conflict with the provisions of this ordinance, are
to the extent of such conflict hereby repealed.
Section 18. This ordinance after its passage by the Presl.-
dent 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, 111inois, and if no
petition be ;filed with the Clerk of said Village within twenty-0%
-33-
(21) days after the publication of this ordinance, by tWexty per-
■rli cent (20%) of the voters voting for President of stud Village at
,a
the last preceding general municipal election, req-aiesting the
submission of the proposition of issuing bonds herein provided
tor, then this ordinance shall be in full force and sffect.
PASSED and APPROVED this /�T """ day of
197.7
APPROVED:
President'
Attest:
row
Village Clark
i
AYES:
NAYS: Q
ABSENT: 0 PUSIARM S C311irfillIPICATS
w
THIS IS TO CERTIFY That the nonce,?th*co y of which Is attached to this
certificate,was published in THE OAK BROOK DOINGS ones each weak/ar
...................A.!.................................weeks successively, that the daft,i
of the first publication was the..........lh day d
....NoRSAbsx......A.D., 19.1k. and that the date of the last publicatlus was
the..........................................day of......................................&D., 19....
...,,,
AND IT IS FURTHER CERTIFIED That THE OAK BROOK DOINGS M a
secular newspaper of general circulation, ppuublished weekly in the
of Hinsdale, County of DuPage, State of Illhals, and ctreWatsd
In the Villages of Hinsdale, Clarendon Hills, Oak Brook, 1111'oebauok. Hun
Ridge, adjacent unincorporated and Incorporated areas, ad Is EmPaw and
Cook Ceuntles, Illinois, and In other areas; that saM TUB OAR IMM
DOINGS Is a"newspaper" as defined by the Illinois Statut" Made seed
vkled for such situations, to wit; by Section 1 of "An Act to a+erhs the
In relation to notices", 11174, Feb. id, R.S. 1114,p. 711, 1 R as 1 - sI- lft
July 17, Laws IM, p. 14M. 11; and is also a " p si^" a ddbe6 by.
Section 1 of"An Act concerning the pu1111catlon of,Nampa olio's", Im Jose
1,Laws IM,p.IM,11.as amended IM,Juno 0,Laws IM,p,6M,I&ad
as further amended 1145, April 111, Laws 110, p. 1611, It, ad a to 00
amended In 1157, July /, Laws 1117, p IM, It. o d a to Ow mos lied
141,July 17,Laws IM,p.106,11;abed that said THE OAK BROOK DOOM,
has been continuously pubiidNd at regular Irlsmh of at iO eacs s
week with a minimum of be bow per year fer over one year pslar is*a .
first publication of the attached notice.
IN Wffffln WKWUMP, one of the eoiniblMors d UN TIIH
OAK BROOK WNW has affixed Ida hand W anal ft
day of. 1te'eealnex A.D, 0 !..
367�lg