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O-59-22]4 ORDINANCE 0 -59 -22 AN ORDINANCE creating an issue of $545,000 Water Revenue Bonds, Series of 1959, of the Village of Deerfield, ,Lake ,and Cook Counties, Illinois. WHEREAS the Village of Deerfield, Lake and Cook Counties, Illinois has heretofore acquired, owned and operated a municipal waterworks system (hereinafter, together with the improvements and extensions authorized by this Ordinance and all further improvements and extensions thereof, or re- placements thereto, collectively called the "system ") serving the needs of said Village and in the interests of the public health and safety, it is necessary that said system be improved and extended, and WHEREAS-the President and Board of Trustees of said Village have approved the engineering report of Baxeter & Woodman, Civil and Sanitary Engineers, Crystal Lake, Illinois, together with the plans, maps and supporting data for the construction of such necessary improvements and extensions to said system, and has determined that said Village will need to borrow $545,000 to provide funds required for the cost thereof, and has determined that the income and revenue to be derived from the operation of said system will be fully adequate to provide for the payment of the new bonds so proposed to be issued. ' L NOW, THEREFORE, Be It Ordained by the President and Board of Trustees of the Vi 1 lage of Deerfield, Lake and Cook Counties, I l l i not s, as follows: Section 1. That it is hereby determined to be in the public interest for the health and safety of the inhabitants of this Village that the existing system of this Village be improved and extended in accordance with the engineering report of Baxter & Woodman, Civil and Sanitary Engineers, Crystal Lake, Illinois, together with the plans, maps and supporting data therefor heretofore submitted to and approved by this President and Board of Trustees at a cost estimate (including engineering, legal, fiscal and supervisory' expenses) hereby determined to be $545,000, said improvements and extensions to include the following: The construction and installation of new water main extensions, complete in place, including all necessary fittings, gate values, valve vaults, hydrants, connections to existing mains and hydrants, and the 1 ;i, and 1 14.7 construction and installation of new water storage facilities,of at least 500;000 gallon capacity, complete in place; the acquisition of all necessary real estate-and-rights in land, together with all appurtenances, connections and equipment necessary for the integration of said improvements and extensions to the existing properties compri)s- ing the waterworks system of said Village, all as more fully described in said engineering report, and this President e and Board of Trustees does hereby determine the period of usefulness of said IN system, including said described improvements and extensions, to be forty years from .the date of the bonds herein authorized to be issued. et Section 2. That for the purpose of providing funds to pay the cost of said needful improvements and extensions to said system, as aforesaid, there be issued and sold bonds of said Village to be designated "Water Revenue Bonds, Series of 1959 ", in the principal sum of $545,000, the proceeds from the sale thereof being hereby determined adequate to pay the cost estimate of said improvements and extensions hereinabove described in the aggregate sum of $545,000. The said bonds shall bear date of April 1, 1959, shall be of $1,000 denomination, numbered from 1 through 545, and said bonds shall mature (subject to the right of prior redemption hereinafter described) serially in numerical order on May 1 in each of the years and amounts as follows: $ 5,000 - 1962 through 1964 10,000 - 1965 through 1968 15,000 - 1969 through 1974 20,000 - 1975 through 1978 25,000 - 1979 through 1983 30,000 - 1984 through 1986 35,000 - 1987 through 1989 Said Village reserves the right to call for redemption prior to maturity at par and unpaid accrued interest to the date fixed for prior redemption, the bonds maturing on May 1 inn each of the years 1970 through 1989, being the bonds numbered from 71-through 545, as a whole, or in part,in their inverse numerical order, on any interest payment date on or after May 1, 1969. Notice of redemption of any or all of said bonds shall be given by publi- cation at least once not less than thirty (30) days prior to the date of re- demption in one financial newspaper published and of general circulation in the City of Chicago, Illinois, and such notice of redemption shall designate the date of redemption, the numbers and aggregate principal amount of bonds 148 called for redemption, ,the place of redemption, which shall be the paying agent desi:gnated in said bonds, and shall state that the bonds so specified will be redeemed at a price of par, unpaid accrued interest to the date of redemption, and from and after the designated redemption date interest on all of said bonds so called for redemption shall cease. The said bonds shall.bear interest from the date thereof until paid at the rate of Six Per Cent (6 0/.) per annum, or at such lesser rate or rates as shall be specified by Ordinance for the delivery of said bonds under the terms hereof at an interest cost of not to exceed Six Per Cent (6 %) annually . computed to maturity, according to standard tables of bond values., and said interest to be payable November 1, 1959, and semiannually,thereafter on May 1 and November 1 of each year until paid, and'both the principal,of and interest on said bonds shall be payable in lawful money of .the United States of America at such paying agent as shall be specified by said Ordinance providing for the delivery of said bonds to the purchasers thereof as hereinafter provided: 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 evidencing interest at the rate so specified shall be executed by the facsimile signatures of said President and said ' Village Clerk, and saidc,6fficials, by the execution of said bonds, shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. Said bonds, together with interest,06r-eon, shall be payable solely from the revenues derived from the waterworks system of said V.illage, and such.bonds shall not in any event consti!tute an indebtedness of said Village within the meaning of any constitutional provision,-.or any constitutional or statutory limitation. Any of said bonds may be registered at the option of the holder as to principal only, at any time prior. to maturity, in the 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 said Treasurer, and thereafter the principal of such registered bonds shall be payable ohly to the rggi.stered holder, his legal representatives or assigns. Such registered bonds may be transferable to another registered holder or back to bearer only 1 CN e�± C� °•3 1 1 or back to bearer only upon presentation to said 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 shall be transferable by delivery merely. Section 3. That said bonds and coupons attached thereto (with appro- priate omissions and insertions to give effect to differences in maturity dates, rates of'in'terest, and terms of redemption prior to maturity) shall be in substantially the following form: (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF LAKE AND COOK VILLAGE OF DEERF -IELD WATER REVENUE BOND.; SERIES OF 1959 Number $1,000 KNOW ALL MEN BY THESE PRESENTS, that the Village of Deerfield, Lake and Cook Counties, Illinois, for value received hereby promises to pay to bearer, or if this bond be registered as hereinafter provided, then to the registered holder hereof, solely from the Water Fund of the Village of Deer - fii1d, as hereinafter mentioned and not otherwise, the sum of One Thousand Dollars ($1,000) -on May 1, 19 , (unless this bond is then subject to prior redemption and has been called for payment and funds provided for the payment thereof as hereinafter stated) and to pay interest on such principal sum from the date hereof until paid, at the rate of Per Cent ( %) per annum, payable November 1, 1959, and semi.annually thereafter on the first days of May and November in each year, and until the maturity of this bond such interest shall be payable upon presentation and surrender of the interest coupons hereto as they severally mature. Both principal of and interest on this bond are hereby made payable in lawful money of the United States of America at This bond is payable solely from revenues derived from the waterworks system of said Village and not otherwise, and is one of an authorized issue aggregating the principal sum of Five Hundred Forty -five Thousand Dollars ($545,000) issued under authority of Article 78 of the Revised Cities and 149 150 Villages Act, and all laws amendatory thereof and supplementary thereto, for the purpose of paying the cost of necessary improvements and extensions to the waterworks system of said Village, and this bond does not consitute an. indebtedness of said Village within the meaning of any constitutional pro- vision or statutory limitation. Notice of redemption of any or all of said bonds shall be given by publication at least once not less than thirty (30) days prior to the date of redemption in one financial newspaper published and of general circulation in the City of Chicago, Illinois, and such notice of redemption shall designate the date of redemption, the numbers and aggregate principal amount of bonds called for redemption, the place of redemption, which shall be the paying agent as expressed in this bond, and shall state that the bonds so specified will be redeemed at a price of par and unpaid accrued interest to the date of redemption, and from and after the designated redemption date interest on all of said bonds to-called for redemption shall cease. It is hereby certified and recited that all acts, conditions and, things required by the Constitution and statutes of the State of :Illinois to be done precedent to and in the issuance of-this bond and in raising funds to promptly assure payment thereof, 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 Fund the entire revenues received from the operation of said system, to be applied in the manner as hereinabove set forth; and it is hereby covenanted and agreed that rakes will be charged for the use and service of such system sufficient at al,l times to pay the cost of the operation and maintenance thereof, to pay the principal of and interest upon all bonds issued by said Village which are payable solely from. the revenues of such system, and to cfeate and maintain the several accounts established by the Ordinance authorizing the issue of bonds of which this bond is one. This bond may be registered as to principal in the name of the holder on the books of said Village*in the office of the Village Treasurer, such registration to be evidenced by notation-of said Treasurer on the back here- of, after which no transfer hereof shall be valid unless made on said books and similarly noted hereon, but ut may be discharged from such registration by being transferred to bearer; after - which it shall be transferable by delivery, but i:t may be again registered as before. The registration of th1i bond shall not restrict the negotiability of the coupons by delivery merely. IN WITNESS WHEREOF, said Village of Deerfield, Lake and Cook Counties, Illinois, by its 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 signa- tures of said President and said Village Clerk , which officials, by the execution of this bond as and for their own �., , do adopt p proper signatures C'M < their respective facsimile signatures appearing on said coupons, and this 1 bond to be dated as of the first day of April, 1959. President Attest: Village Clerk Number (Form of Coupon) On the first day of , 19_, *(unless the bond to which this coupon is attached has theretofore been called for prior payment and payment made of provided for) the Village of Deerfield, Lake and Cook Counties, Illinois, will pay to bearer out of the Water Fund of the Village of Deerfield the Uni ted.S,tates of America, at Dollars ($ ) in lawful money of , Illinois, being interest then due on its Water Revenue Bond, Series of 1959, dated April 1, 1959, numbered (facsimile signature) President (facsimile signature) Village Clerk *(The clause within the parentheses shall be inserted in all . coupons attached to bonds numbered 71 through 545.) M 152 (Form of Registration Certificate) Date'of�` In Whose Name Registered; Signature of Registration Village Treasurer t Q • Section 4. That upon the issuance of any of the Water Revenue Bonds herein provided for, said system of said Village, 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, and during each year ending April 30 so long as any of the bonds herein authorized to be issued are outstanding, the entire revenues derived from the operation i of said system shall be collected and shall be set aside, as collected,-in a separate fund which is hereby created, to be designated the "Water Fund of the Village of Deerfield-" (hereinafter called the "Water Fund') and all moneys or investments in said Water Fund or credited to any Account thereof as hereinafter described in Section 5 hereof, shall be deposited and carried in a bank that is a member of the Federal Deposit Insurance Corporation, as Depositary for said Village, and shall be kept segregated and apart from all other moneys of said Village, and shall be used only to create and main- tain the said Accounts hereinafter specified, to pay the cost of operating and maintaining said system, to provide and adequate depreciation reserve and to pay the principal of and interest on the Water Revenue Bonds issued under the terms of-this Ordinance, including an adequate reserve for that purpose, and all moneys or investments in said Water: Fund shall be used only for such purposes and are hereby i•rrevocab•ly pledged and appropriated therefor. Section 5. That there shall be established separate accounts in said Water Fund, as aforesaid, to beidesignated severally "Operation and Mai:fiten- ance Account ", "Principal and Interest Account ", "Depreciation Account ", "Bond Reserve Account" and "Surplus Account ", into which there shall be • o credited in the order in•which said Accounts are hereinabove mentioned all moneys in said Water Fund and all in-accordance with the following provisions: (A) There shall be credited to the Operation and Maintenance Account on the first business day i)h each month an amount sufficient to pay the 1 M Q 1 15"0` reasonable expenses of operation, maintenance and repair of said system for the next succeeding month, which shall include, without limiting the generality of the foregoing, salaries, wages, expenses of clerical staff, cost -of materials, supplies, purchase of light and power,and an adequate supply of water, insurance and all other incidental expenses of an operating nature, including charges for an annual audit, for consulting engineers and the fees and expenses of the paying agent for the bonds authorized hereunder. Fixed.annual charges such as insurance shall be computed and set up on an annual basis, and one - twelfth (I /12th) thereof shall be charged and accumulated each month. (B) There next shall be credited to the Principal and Interest Account the entire balance of the revenues on the first business day in each month prior to November 1, 1959, until the amount of interest due November 1, 1959 is on hand, and,(i) on the first business day in each month thereafter commencing November 1, 1959, an amount at least equal to one -sixth (1 /6th) of the interest becoming due and payable on the next succeeding interest payment date on all of the outstanding bonds authorized pursuant to this Ordinance until there is on hand in said Account the full amount of the next succeeding interest pay - ment,:and (ii.) on the first business day :inn each month commencing May.], 1961, an amount at least equal- to one - twelfth (1 /12th) of the aggregate principal amount of the said bonds due and payable on the next succeeding principal payment date of-said described bonds; until there is on hand in said Account the full amount of such principal due on the next succeeding principal pay- ment-date, and all the moneys so credited to said Account shall be applied to and made available for the payment of the interest on7and principal of said bonds as the-same mature. It shall be the'continuing duty of the Treasurer of this Village, without further authorization from the President and Board of Trustees thereof, to deposit adequate funds with the paying agent of said bonds "on or before fi.ft6en (15) days prior to the maturity dates of the interest on or principal of said bonds, respectively. "(C) Beginning November 1, 1960, there shall be credited to the Depreciation Account on the first business day 4,n each month the sum of Two Hundred,Dollars ($200) until a maximum of Twleve Thousand Dollars ($12,000) 154 is on deposit in said Account, which is hereby found and determined to be a reasonable amount necessary to accomplish the purpose for which said Account is established. The moneys in said Account shall be used to pay the cost of necessary repairs and replacements to the system and only such extensions as are necessary to preserve the efficient operation of the system. The moneys held in said Account to .the extent necessary to prevent or remedy a default in the payment of the interest on or principal of the bonds herein authorized shall also be used and held for use for that purpose and for that purpose shall be transferred by the Treasurer of this Village, without further authority, to the proper Account hereinabove mentioned, and whenever such a transfer is made, the amount or amounts so transferred shall be added to the next credit to be made to said Depreciation Account, and thereafter, until full reimbursement to said Account has been made. (D) Beginning November 1, 1959, there shall be credited to the Bond Reserve Account the sum of Seven Hundred Fifty Dollars ($750) on the first business day of each mon.th,until such Account aggregates the sum of Forty Thousand Dollars ($40,000) and thereafter no further funds shall be credited to said Account, except as hereinafter. provided. The moneys in said Account shall. be withdrawn from time to time only for the purpose of paying the principal of or interest on the bonds of said Village.which by their terms are payable from the revenues of said system of said Village whenever there are insufficient funds on hand'available for that purpose in any of the other Accounts created in this Ordinance for that purpose. if and when funds are. withdrawn for the purpose for which the Bond Reserve Account has been created, credits to said Account shall be resumed until said Account again aggregates the sum of Forth Thousand Dollars ($40,000). If and when the Bond Reserve Account, together with all other funds available for such purpose, is sufficient to call and redeem all of the outstanding_bonds authorized pursuant to this Ordinance that are subject to redemption prior to their maturity, the said funds shall be applied to the call and redemption of all of said bonds and all of said bonds when redeemed shall be cancelled and not reissued. (E) The entire balance remaining in said Water Fund at the close of 1 v� e-� cc C23 1 J 155 each fiscal year shall be credited to the Surplus Account to be used and held for use as follows: (i) First, for the reimbursement at any time and from time to time of any Account listed in Subparagraphs (A) through (D) hereof that is de- pleted by withdrawals, until each such Account contains the minimum deposits herei nabove - speci-f i -ed; (ii) Second, a sum of money equal to not less than one -half (1/.2) of the amounts so dkpo.sited in said Surplus Account, remaining after each such e,ai.mbursement as aforesaid shall have been made, shall be transferred at the end of each fiscal year by Resolution of the governing body of this Village to an Improvement and Extension Account, which is hereby created, to be accumulated to a maximum amount of $100,000 and to be used for the purpose of making improvements or extensions to said system, including the construction and installation of additional water storage facilities, provided that all expenditures for such purposes shall be approved by an independent consulting engineer or engineers favorably known for skill in such matters before any such expenditures are made; and provided further, that all moneys in said Account may from time to time by Resolution adopted by the governing body of this Village be transferred to the Bond Redenption Account for the purposes described in subparagraph (iii) (a) hereof; and (iii) Third, all moneys then remaining in said Surplus Account at the end of any fiscal year shall be either (a) transferred to a Bond Redemption Account, which is hereby created, to be used to redeem the bonds herein author- ized prior, to -theist maturity or to purchase said bonds in the open market at "not exceeding par, if such bonds are not then subject to prior eedemption, and all bonds so redeemed or purchased shall be cancelled; or (b) used to accelerate the accumulation of the required deposits to be maintained in the Bond Reserve Account and in the Depreciation Account and for that purpose shall be transferred by the Treasurer of this Village to said Accounts; or (c) used for any lawful corporate, ss the governing body of said Village shall determine by Resolution to be filed with the Village Treasurer. (F) The moneys to be cfedited to the said Accounts described in Subparagraphs (C), (D) and (E) of this Section may be invested from time to time in interest bearing bonds or other direct and general obligations of the United States Government; provided, however, that the funds of said respective 156 Accounts shall be so invested as in the judgment of the President and Board of Trustees will not be required for expenditure within a period of ninety (90) days from and after the date of the investment thereof, and provided further, that all such securities so purchased shall mature and be redeem- able on a date or dates prior to the time when, in the judgment of the President and Board of Trustees, the funds so invested will be required for expenditure. It shall be the continuing duty of the officials of this Village, with- out further authorization from the President and Boardof Trustees thereof, to sell any of such investments for any of said Accounts when necessary to meet any payment due from such Accounts, Any income received from, or losses realized by the sale of, any such investments shall be credited to, or charged to, the Account for which such investments were made. (G) No further payments need to be made into said Principal and Interest Account when and so long as such amount of bonds of said Village payable therefrom shall have been retired that the amount then held in said Account, together with 'the amount then on deposit in the Bond Reserve Account, is equal to the entire amount of all interest and principal that will be payable at the time of redemption or maturity on all of said bonds then remaining outstanding; provided that if there are not, sufficient :funds in the Principal and Interest Account available to pay all of the maturing principal of and interest on all of said bonds of said Village that are pay- able therefrom, such deficiency shall be made up first, by the transfer of funds from the Bond Reserve Account and next, by the transfer of funds from the Depreciation Account and next, by the transfer of funds from the Surplus Account; and provided further that if any fiscal year said Village shall for any reason fail to credit to each Account the full amount,hereinabove specified,; then an amount equal to such deficiency shall be set apart and credited to said Account from the first available revenue of the next following fiscal year'or years and shall be in addition to the amount otherwise herein provided to be so set apart and credited during each succeeding fiscal year or years. Section 6. That the Village of Deerfield hereby agrees to carry insurance'on the system of the kinds and in the amounts which are usually 157' by private parties operating similar properties, including without limiting the generality of the foregoing, .fire, wi ndstorm. i nsurance, public liability, and any additional insurance covering such risks as shall be recommended by a competent independent.consulting engineer employed for the purpose of making such recommendatii,ons, and all moneys received for losses under such insurance policies as insure against physical damage to or loss of the system shall be deposited in the Depreciation Account and shall be 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) days from date of the loss.. The proceeds of any and a 1 1 policies for public liability shal-1 be paid into the Operation and Maintenance Account and used in paying the claims on account.of which they were received. The payment of premiums for all insurance policies required under the provisions of this Section shall be considered an operation and maintenance expense. Section 7. That while any of the Water Revenue Bonds issued pursuant to this Ordinance remain outstanding or unpaid,.rates charged for water service shall be sufficient at all times to pay all costs of operation and maintenance of the .system. to make the payments and maintain the balance as required in the Depreciation Account,, to pay the principal and interest on all bonds author- ized hereunder, and to make the payments and maintain the balances as required in the-:Bond Reserve Account, as hereinabove provided for. There shall be charged against all users of said system, including the Village of Deerfield, such rates and amounts for water.se,rvices as shall be adequate.to meet the requirements of this Section. Charges for services rendered said Village shall be made against said Village and payment for the same from the corporate funds shall be made monthly, and all such payments shall be deposited into the Water Fund created by this Ordinance, in the same.manner as other revenues are required to be deposited. t Said Village covenants not to prov,i de. any free service of sadid system, and to pay promptly for the use of all facilities connected, and to be connected, to said system.. 158 It is expressly herein covenanted that said Village will not grant a franchise for the operation of any competing waterwoks system within said Village, and that the bonds herein authorized to be executed shall consti- tute legally enforceable liens upon the earnings of said system of said Village, including all further extensions, additions, and improvements thereto, whether acquired through purchase, contract, or,otherwise. Section 8. In the event said Village defaults in complying with any covenant contei;ned in this Ordinance, any holder of any bond issued hereunder, or of any coupon representing interest accrued thereto, may, either in law or in equity, by proper suit, compel the offic1a.1s of said Village to perform all duties required by law and by this Ordinance, including the making and collecting of sufficient rates for water services for that. purpose and the application and segregation of all income and revenue there- from in accordance with the requirements of this Ordinance. Section 9. (A) It is hereby covenanted and agreed while any of the bonds issued under the terms of this Ordinance are outstanding, said Village reserves the right to issue at one time or from time to time as shall be found by the governing body of said Village necessary for the best interests of said Village, additional bonds in a total aggregate principal cmount of. $125,000 payable from the income and revenue to be derived.from.said system for the sole purpose of paying the cost of the construction and installation of add i t,i,ona 1 water stor age f a c i l i t i e s or the comp 1 et i on of the improvements and extensions for which the said $545,000 principal amount of bonds are authorized herein and on a parity therewith; - provided that the amount of bonds within said aggregate amount of $125,000 to be issued for completion of such improvements and extensions shall not exceed $25,000. The need of financing such work shall be evidenced by a certificate of the independent consulting engineer in.responsible charge thereof (i) giving a reasonably detailed description thereof, an estimate of the cost and of the time of completion thereof, (ii) stating in reasonably itemized detail all expenditures made from the proceeds o� -said $545,000 principal cmount of bonds authorized.here- under as to amount and purpose, and (iii) showing the feasibility of such revenue financing with a reference to then existing rates., and anticipated earnings based thereon, which certificate shall be approved by the govern- 1 1 1 159 ing body of said Village, and shall be made of record in the proceedings of said governing body prior to the authorization of any such additional bonds. (Q) Said Village covenants and agrees with the holders of the bonds- herein authorized,that; except for the issue of the bonds described in Sub- paragraphs (A) abd (C) of this Section, no additional parity bonds shall be issued, unless at the close of the fiscal year immediately preceding the issue of said additional bonds, the following conditions have been met: C9 M Each Account created under Section 5 contains the minimum C'r amount to be credited thereto as specified in said Section 5, and (ii) The experienced net revenues of said system at the close CZ of said fiscal year as shown by an audit of an independent certified public accountant have been at least equal to One Hundred Per Cent (1303' /0) 'of the maximum principal and interest requirements due in any future fiscal year on all bonds authorized hereunder and on a parity therewith, then outstanding, and on all of the new bonds so proposed to be issued, or (iii): The adjusted net revenues of said system at the close of said fiscal year according to said audit will be at least equal to One Hundred Fifty Per Cent (1503 /o) of the maximum principal and interest require- ments due in any future fiscal year on all bonds authorized hereunder and on a parity therewith, then outstanding, and on all of the new bonds so proposed to be issued. The phrase "adjusted net revenues" for the calculation hereinabove described in subparagraph (iii) shall mean the gross revenues received from, less the actual operation and maintenance expenses of, said system at the close of said fiscal year adjusted to reflect the additional revenue that would have accrued to the system due to (a) any revision in the schedule of rates for water- being charged at the time of issuance of any such additional bonds as shown by a certificate of said independent certified public account- ant, and (b) the average,a.nnual increase in the experienced net revenues by reason of any improvements or extensions to the system for payment of which such additional bonds are to be issued for the five (5) year period next succeeding the estimated-completion date of such improvements or extensions, as shown by a certificate of an independent consulting engineer employed for 160 that purpose; provided that prior to the issuance of such additional parity bonds contracts for the immediate construction of said improvements or ex- tensions have been entered into. Said Village further covenants and agrees with the holders of the bonds herein authqrized that any such additional bonds issued under this Subparagraph shall be issued only for constructing necessary improvements or extensions to the system. and that the need thereof shall be evidenced by a certificate of a responsible independent consulting engineer familiar with the construction of such work (i) giving a reasonably detailed description thereof, an estimate of the cost thereof and an estimate of the time of completion thereof, and (ii) showing the feasibility of such revenue f.inan- cing'with a reference to then existing rates, or proposed rates; or new improvements or extensions, and Anticipated revenues based thereon, and shall be made of record in the proceedings of said governing body before any such additional bonds are authorized. (C) In addition to the foregoing, if, prior to the payment of all the bonds hereby authorized, it shall be found desirable to refund part of the bonds hereby authorized, said bonds may be refunded notwithstanding the restrictions as to the issuance of additional bonds set forth in this Section (with the consent of the holders thereof unless the bonds,to be refunded are subject to redemption and provision for call and redempt.ion thereof is duly made), and any refunding bonds so issued -shall share ratably and equally in the revenues of said system and the pledge thereof under this Ordinance with the portion of the bonds hereby authorized which are not refunded; provided, further, that if any such bonds are refunded in such manner that the interest rate is increased or the refunding bonds mature at a date earlier than the maturity of the bonds not refunded, then such re- funding bonds shall not share ratably and equally in the revenues of said system with the portion of the bonds remaining outstanding authorized under , this Ordinance. (D) Said Village further covenants that any additional bonds so issued under Subparagraphs (BI or (C) hereof, shall mature serially on May 1 of each year and bear interest payable semiannually May 1 and November l; and that any additional bonds so issued under Subparagraph (A) hereof that mature prior to May 1, 1989 shall be expressed to mature serially in installments 161 of principal of not more than $5,000 on May 1 in each of the years 1969 through 1985 and not more than $10,000 on May 1 in each of the years 1986 through 1989, and shall bear interest payable semiannually May I and November 1. (E) When the conditions herein specified for the issue of additional bonds have been met, then upon the issue thereof any such additional bonds, when issued, shall be entitled to the equal and proportionate benefit and X security of the pledge of the revenue and income derived and to be derived from the operation of said system with the bonds - herein authorized, without p.reference, priority or distinction as to participation of such pledge of < revenue or in the benefit of one bond or coupon of each of said issues over Q or from any other .i ssue by reason of, priori ty i,n execution, i ssue, del ivery or negotiation thereof, or by reason of the date or dates of said bonds, or the date or dates of maturity thereof, or for any other reason whatsoever, the intent hereof being that each and all of said bonds, as aforesaid, and the coupons evidencing interest thereon, shall have the same right and pledge as to payment and security, with the same legal effect as if each and all of said bonds and coupons had been issued, executed, delivered and negotiated simultaneously as one proceeding. f Section 10. That the Village of Deerfield hereby covenants and agrees with the'hol.der or holders of said bonds that it will punctually perform all duties with reference to said system, including the making and collecting of sufficient rates fot the use and services of said system, all as required a by the.Constitution and laws of the State of Illinois, and segregating the r revenue of said system and maintaining the Water Fund of the Village of Deer- field and,the application of the respective Accounts created by this Ordinance, and.it hereby covenants and agrees not to sell, lease, mortgage, or in any payment thereof. And said Village further covenants and agrees with the holders of said Water Revenue Bonds authorized hereunder to maintain in good condition manner dispose of or encumber said system, including any and all extensions and improvements that. ma.y be made thereto., or the income and revenue derived therefrom, except as permitted in Section 9 hereof, until all of the bonds herein authorized to be issued shall have been paid in full, both principal and interest, or unless and until . provision -shall have been made for the payment thereof. And said Village further covenants and agrees with the holders of said Water Revenue Bonds authorized hereunder to maintain in good condition 162 and continuously operate said system, and to make, enact and enforce all needful rules and regulations and ordinances for the efficient manage- . , ment and proper maintenance thereof, and for the use and services thereof. r Section 11. Said Village covenants that the Water Fund of the Village of Deerfield and the Accounts created under Section 5 hereof, shall be audited within ninety (90) days after the close of each fiscal year by an independent firm of certified public accountants,,and such audit and Accounts shall be open for inspection at all proper times to any holder of bonds issued under the provisions of this Ordinance, or any one acting for or on behlf of such bondholder. Such audit report shall. include the following items: (a) Balance sheet, (b) Operating statement, (c) Comments of the auditor relative -to the fulfillment of Ordinance provisions and the manner in which the system has been operated and any recommendations for improving the operation thereofi, (d) Insurance data, (e) Number of metered customers; number of unmetered customers; number of properties connected to the system; number of hydrants, and (f) Gallons of water passing thrbugh master meter and gallongs of water billed, and copies of such audit report shall be furnished the original purchasers of the bonds herein authorized, and shall also be furnished to any bondholder upon request in writing. Section 12. That the provisions of this Ordinance shall constitute a contract between the Village of Deerfield and the holders of the bonds herein authozied to be issued, and after the issuance of said bonds no changes, additions or alterationsof any kind shall be made hereto, except as herein- before provided, until all of said bonds and the interest thereon shall have been paid in full, or unless and until provision shall have been made for the payment thereof. . Section 13. .That as soon as may be after this Ordinance becomes effective, the governing body of said Village by Ordinance shall designate the'rate or rates of interest said bonds shall bear and the-paying agent therefor and shall direct the delivery of said bonds by said Treasurer to A. C. Allyn and Company, Incorporate, and Scott & Kegley, Inc., Chicago, Illinois, the purchasers thereof, upon receipt of the purchase price..there- for in accordance with their contract or purchase which is hereby accepted and approved (being at an interest cost to said Village of less than Six Per Cent (6%) per armum computed to maturity, according,�to standard tables 163 of bond values):, and all proceeds rece -i,ved at the delivery thereof shall be accounted for as follows: (i) All accrued interest from the date of the bonds to the date of delivery and payment, shall be credited by said Treasurer to the Principal and Interest Account, as aforesaid, to be used and held for use solely to pay the interest on said bonds. (ii) The Treasurer shall deposit all the remaining proceeds received as principal in a separate and special account of said Village to be known �+ and designated as the ':'Waterworks System Bond Construction Fund Account" c < which shall be in the depositary for said Village selected for that purpose, - yet to be secured in the manner, form and time as by law required, and all proceeds held in said Construction Fund Account shall be used and held solely to con- struct the improvements and extensions to the said system of said Village as hereinabove described in this Ordinance, and the beneficial interest to all moneys held in said Constructi,on Fund Account at the time of the original deposit therein and from time to time thereafter shall be in the holder or holders of the bonds herein'authorized; and all disbursements therefrom for payment of the costs of constructing said improvements and extensions shall be made by the Treasurer hereof from time to time but only upon submission to him and said depositary of: (a) a certificate'by the engineer in responsible charge of the con- struction of said improvements and extensions stating the nature of the'work completed and the amount due and payable thereon, and that sufficient funds remain to complete the construction thereof, bearing the endorsement and approval of the-President of said Village and accompanied by; (b) an order for payment upon said Treasurer signed -by the President and the Village Clerk, which order shall state specifically the purpose for which said order is issued. Within the sixty (60) days after completion of the construction of the improvements and extensions herein authorized, said Village agrees to said depositary an original counterpart-of a certificate (herein called the "Certifi- cate of Completion ") signed by the President and by the Village Treasurer, and having endorsed thereon the approval of the engineer in charge of such construc- tion, stating that said improvements and extensions have been full constructed 164 completed in accordance with the plans, maps, files and specifications there- for as recited in this Ordinance, and that the same has been fully paid for, or that funds sufficient so to pay for the same remain in said Construction Fund Account, giving the date of final completion and the total cost of construction, and the amount, if any,, of such construction cost then re- maining unpaid, together with an original counterpart of the opinion of counsel for said Village to the effect that all property, real, personal, and mixed, connected with or forming a part of, or necessary to,the operation of said system as completed, is owned by said Village and covered by the lien of this Ordinance, and upon receipt of such Certificate of Completion and opinion'of counsel as mentioned, said depositary, after retaining in said Construction Fund Account a sum sufficient to pay the balance of the construction cost remaining unpaid as shwon by said Certificate of Comple- tion, including any items then in, controversy, shall deposit all moneys then remaining in the Principal and Interest Account hereinabove created. Section 14. The President, Village Clerk, and the Village Treasurer are each hereby authorized and directed to execute and deliver to the paying agent of the bonds and to each depositary, as aforesaid, such certificates, proceedings, and agreements as may be necessary or convenient to establish the 'Mater Fund of the Village of Deerfield" and'each Account herein created in Section 5 and Section 13 hereof, and to properly secure all proceeds there- of, and to evidence compliance herewith in the making of-; any withdrawals therefrom. Section U. 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 of theLatherrprovi lions of this Ordinance. Section 16. All ordinances, resolutions, or orders, or parts thereof, in conflict with the provisions of this Ordinance, are,, to the.extent of such ""conf 1 i ct, hereby repealed. Section 17. This Ordinance, after its passage and approval by thereunto enabling. Passed and approved March 18, 1959. CrJ L:3 Attest: La��' -6. �Z� Village Clerk Published March 26, 1959. Attest: Village Clerk 1 President 6 �t. the President shall be published once in the Deerfield Review, a news- paper published and having a general circulation in the Village of Deer- field, and shall be in full force and effect after such publication in the manner, form and time as provided by the laws of the State of Illinois thereunto enabling. Passed and approved March 18, 1959. CrJ L:3 Attest: La��' -6. �Z� Village Clerk Published March 26, 1959. Attest: Village Clerk 1 President 6 �t. 66 1 I i olzt Z AN ORDINkNCE creating an issue of X545,000 Water Revenue Bonds, Series of 1959, of the Village of Deerfield, Lake and Cook Counties, Illinois. WHEREAS the Village of Deerfield, Lake and Cook Counties, Illinois has heretofore acquired, owned and operated a municipal water- works system (hereinafter, together with the improvements and extensions authorized by this Ordinance and all further improvements and extensions thereof, or replacements thereto, collectively called the "$ystem ") serving the needs of said Village and in the interests of the public health and safety, it is necessary that said system be improved and ex- tended, and WHEREAS the President and Board of Trustees of.said Village i have approved the engineering report of Baxter & bJoodman, Civil and Sanitary Engineers, Crystal Lake, Illinois, together with the plans, .d maps and supporting data for the construction of such necessary improve- ments and extensions to said system, and has-determined that said Vil- lage will need to borrow $545,000 to provide funds required for the cost thereof, and has determined that the income and revenue to be de- rived from the operation of said system will be fully adequate to pro- vide for the payment of the new bonds so proposed to be issued. NOW, THEREFORE, Be It Ordained by the President and Board of Trustees of the Village of Deerfield, Lake and Cook Counties, Illinois, as follows: Section 1. That it is hereby determined to be in the public interest for the health and safety of the inhabitants of this Village that the existing system of this Village be improved and extended in accordance with the engineering report of Baxter w Woodman, Civil and Sanitary Engineers, Crystal Lake, Illinois, together with.the plans, maps and supporting data therefor heretofore submitted to and-'approved :n ey this President and Board of Trustees at a cost estimate (including 1. engineering, legal, fiscal and supervisory expenses) hereby determined to tie $545,000, said improvements and extensions to include the follow - ing: The construction and installation of new water main extensions, complete in place, including all necessary fittings, gate valves, valve vaults, hydrants, connec- tions to existing mains and hydrants, and the construc- tion and installation of new water storage facilities of at least. 500,000 gallon capacity, complete`in place; the acquisition of all necessary real estate and rights in land, together with all appurtenances, connections and equipment necessary for the integration of said improve- ments and extensions to the existing properties compris- ing the waterworks system of said Village, all as more fully described in said engineering report, and this Presi- dent and Board of Trustees does hereby determine the period of useful- ness of said system, including said described improvements and exten- sions, to be forty years from the date of the bonds herein authorized to be issued. Section 2. That for the purpose of providing funds to pay the cost of said needful improvements and extensions to said system, as aforesaid, there be issued and sold the bonds of said Village to be designated "Water Revenue Bonds, Series of 1959 ", in the principal sum of $545,000, the proceeds from the sale thereof being hereby determined adequate to pay the cost estimate of said improvements and extensions hereinabove described in the aggregate sum of $545,000. The said bonds shall bear date of April 1, 1959, shall be of $1,000 denomination, num- bered from 1 through 545,. and said bonds shall mature (subject to the right of prior redemption hereinafter described) serially in numerical order on May 1 in each of the years and amounts as follows: $ 5,000 - 1962 102000 - 1965 152000 - 1969 20,000 - 1975 25,000 - 1979 30,000 1984 35,060 = 1987 through 1964 through 1968 through .1974 through 1978 through 1983 through 1986 through 1989 - 2 - Said Village reserves the right to call for redemption prior to maturity at par and unpaid accrued interest to the date fixed for prior redemption, the bonds maturing on May 1 in each of the years 1970 through 1985, being the bonds numbered from 71 through 545, as a whole, or in part in their inverse numerical order, on any interest payment date on or after May 1, 1969. Notice of redemption of any or all of said bonds shall be given by publication at least once not less than thirty (30) days prior to the date of redemption in one financial newspaper published and of general circulation in the City of Chicago, Illinois, and such notice of redemption shall designate the date of redemption, the numbers and aggregate principal amount of bonds called for redemption, the place of redemption, which shall be the paying agent designated in said bonds, and shall state that the bonds so specified will be redeemed at a price of.par, unpaid accrued interest to the date of redemption, and from and after the designated redemption date interest on all of said bonds so called for redemption shall cease. The said bonds shall bear interest from the date thereof until paid at the rate of Six Per Cent (6 %) per annum, or at such lesser rate or rates as shall be specified by Ordinance for the de- livery of said bonds under the terms hereof at an interest cost of not to exceed Six Per Cent (670 annually computed to maturity, accord- ing to standard tables of bond values, and said interest to be payable November 1, 1959, and semiannually thereafter on May 1 and November 1 of each year until paid, and both the principal-of and interest on said bonds shall be payable in lawful money of the United States of America at such paying agent as shall be specified by said Ordinance providing for the delivery of said bonds to the purchasers thereof as hereinafter provided. - 3 - 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 evidencing interest at the rate so specified shall be executed by the facsimile signatures of said President and said Village Clerk, and said officials, by the execution of said bonds, shall adopt as and for their own proper sig- natures their respective facsimile signatures 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, and such bonds shall not in any event constitute an indebted- ness of said Village within 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 said Treasurer, and thereafterrthe principal of such registered bonds shall be payable only to the registered holder, his legal representatives or assigns. Such registered bonds may be trans- ferable to another registrere,d_holder!�or back to bearer only upon presentation to said Treasurer, with a legal assignment duly acknow- ledged or approved. Registration of any of such bonds shall not affect the negotiability of the coupons thereto attached, but such coupons shall be transferable by delivery merely. Section 3. That said bonds and coupons attached thereto (with appropriate omissions and insertions to give effect to differences in maturity dates, rates of interest, and terms of redemption prior to maturity) shall be in substantially the following form: - 4 - (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF LAKE AND COOK VILLAGE OF DEERFIELD WATER REVENUE BOND, SERIES OF 1959 Number $1,000 KNOW ALL MEN BY THESE PRESENTS, that the Village of Deerfield, Lake and Cook Counties, Illinois, for value received hereby promises to pay to bearer, or if this bond be registered as hereinafter provided, then to the registered holder hereof, solely from the Water Fund of the Village of Deerfield, as hereinafter mentioned and not otherwise, the sum of One Thousand Dollars ($1,000) on May 1, 19 , (unless this bond is then subject to prior redemption and has been called for payment and funds provided for the payment thereof as hereinafter stated) and to pay interest on such principal sum from the date hereof until paid, at the rate of Per Cent ( %) per annum, payable November 1, 1959, and semiannually thereafter on the first days of May and November in each year, and until the maturity of this bond such interest shall be payable upon presentation and surrender of the interest coupons here- to appertaining as they severally mature. Both principal of and interest on this bond are hereby made payable in lawful money of the United-.States of America at This bond is payable solely from revenues derived from the waterworks system of said Village and not otherwise, and is one of an authorized issue aggregating the principal sum of Five Hundred Forty - five Thousand Dollars ($545,000) issued under authority of Article 78 of the Revised Cities and Villages Act, and all laws amendatory thereof and supplementary thereto, for the purpose of paying the cost of necessary improvements and extensions to the waterworks system of said Village, and this bond does not constitute an indebtedness of said Village within the meaning of any constitutional provision or statutory limitation. - 5 - Under said Act and the Ordinance adopted pursuant thereto, the entire revenue derived and to be derived from the operation of the waterworks system of this Village shall be deposited in a separate fund designated as the "Water Fund of the Village of Deerfield" which shall be used only for the purpose of paying the cost of operating and maintaining such system, providing an adequate depreciation fund, and paying the principal of and interest on the bonds of said Village that are issued under authority of said Act, and are payable by their terms only from the revenue of such system, and creating and maintain- ing the several accounts established by the Ordinance authorizing the issue of bonds of which this bond is one. Said Village reserves the right to call for redemption prior to maturity at par and unpaid accrued interest to the date fixed for prior redemption, the bonds maturing on May 1 in each of the years 1970 through 1989, being the bonds numbered from 71 through 545, as a whole, or in part in their inverse numerical order, on any interest payment date on or after May 1, 1969. Notice of redemption of any or all of said bonds shall be given by publication at least once not less than thirty (30) days prior to the date of redemption in one financial newspaper published and of general circulation in the City of Chicago, Illinois, and such notice of redemption shall designate the date of redemption, the numbers and aggregate principal amount of bonds called for redemption, the place of redemption, which shall be the paying agent as expressed in this bond, and shall state that the bonds so specified will be redeemed at a price of par and unpaid accrued interest to the date of redemption, and from and after the designated redemption date in- terest on all of said bonds so called for redemption shall cease. r It is hereby certified and recited that all acts, conditions and things required by the Constitution and statutes of the State of Illinois.to be done precedent to and in the issuance of this bond and in raising funds to promptly assure payment thereof, 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 Fund the entire revenues received from the operation of said system, to be applied in the manner as hereinabove set forth; and it is hereby covenanted and agreed that rates will be charged for the use and service of such system sufficient at all times to pay the cost of the operation and maintenance thereof, to pay the principal of and interest upon all bonds issued by said Village which are payable solely from the revenues of such system, and to create and maintain the several accounts established by the Ordi- nance authorizing the issue of bonds of which this bond is one. This bond may be registered as to principal in the name of the holder on the books of said Village in the office of the Village Trea- surer, such registration to be evidenced by notation of said Treasurer on the back hereof, after which no transfer hereof shall be valid unless made on said -books and similarly noted hereon, but it may be discharged from such registration by being transferred to bearer, after which it shall be transferable by delivery, but it may be again registered as before. The registration of this bond shall not restrict the negotia- bility of the coupons by delivery merely. IN WITNESS WHEREOF, said Village of Deerfield, Lake and Cook Counties, Illinois, by its 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 he signed by the facsimile signatures of said President and said Village - 7 - 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 April, 1959• President Attest: Village Clerk (Form of Coupon) Number $ On the first day of , 19_, *(unless the bond to which this coupon is attached has theretofore been called for prior payment and payment made or provided for) the Village of Deerfield, Lake and Cook Counties, Illinois, will pay to bearer out of the Water Fund of the Village of Deerfield Dollars ($ ) in lawful money of the United States of America, at , Illinois, being interest then due on its Water Revenue Bond, Series of 1959, dated April 1, 1959, numbered (facsimile signature) President (facsimile signature) Village Clerk *(The clause within the parentheses shall be inserted in all coupons.attached to bonds numbered 71 through 545•) (Form of Registration Certificate) Date of Signature of Registration In Whose Name Registered Village Treasurer Section 4. That upon the issuance of any of the Water Revenue Bonds herein provided for, said system of said Village, for the purpose MM 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 succeed- ing year, and during each year ending April 30 so long as any of the bonds herein authorized to be issued are outstanding, the entire revenues derived from the operation of said system shall be collected and shall be set aside, as collected, in a separate fund which is hereby created, to be designated the "Water Fund of the Village of Deerfield" (herein- after-called the "Water Fund ") and all moneys or investments in said Water Fund or credited to any Account thereof as hereinafter described in Section 5 hereof, shall be deposited and carried in a bank that is a member of the Federal Deposit insurance Corporation, as Depositary for said Village, and shall be kept segregated and apart from all other moneys of said Village, and shallybe used only to create and maintain the said Accounts hereinafter specified, to pay the cost of operating and maintaining said system, to provide an adequate depreciation reserve and to pay the principal of and interest on the Water Revenue Bonds issued under the terms of this Ordinance, including an adequate reserve for that purpose, and all moneys or investments in said Water Fund shall be used only for such purposes and are hereby irrevocably pledged and appropri- ated therefor. Section 5. That there shall be established separate accounts in said Water Fund, as aforesaid, to be designated severally "Operation and Maintenance Account ", "Principal and interest !`ccount ", "Depreciation Account ", "Bond Reserve Account" and "Surplus Account ", into which there shall be credited in the order in which said Accounts are hereinabove mentioned all moneys in said Water Fund and all in accordance with the following provisions: (A) There shall be credited to the Operation and Maintenance Account on the first business day in each month an amount sufficient to pay the reasonable expenses of operation, maintenance and repair of said system for the next succeeding month, which shall include, without limit- ing the generality of the foregoing, salaries, wages, expenses of - 9 - clerical staff, cost of materials, supplies, purchase of light and power and an adequate supply of water, insurance and all other incidental ex- penses of an operating nature, including charges for an annual audit, for consulting engineers and the fees and expenses of the paying agent for the bonds authorized hereunder. Fixed annual charges such as insur- ance shall be computed and set up on an annual basis, and one - twelfth (1 /12th) thereof shall be charged and accumulated each month. (B) There next shall be credited to the Principal and Interest Account the entire balance of the revenues on the first business day in each month prior to November 1, 1959, until the amount of interest due November 1, 1959 is on hand, and (i) on the first business day in each month thereafter commencing November 1, 1959, an amount at least equal to one -sixth (1 /6th) of the interest becoming due and payable on the next succeeding interest payment date on all of the outstanding bonds authorized pursuant to this Ordinance until there is on hand in said Account the full amount of the next succeeding interest payment, and (ii) on the first business day in each month commencing May 1, 1961, an amount at least equal to one - twelfth (1 /12th) of the aggregate principal amount of the said bonds due and payable on the next succeeding princi- pal payment date of said described bonds, until there is on hand in said Account the full amount of such principal due on the next succeeding principal payment date, and all the moneys so credited to said Account shall be applied to and made available for the payment of the interest on and principal of said bonds as the same mature. It shall be the continuing duty of the Treasurer of this Village, without further author- ization from the President and Board of Trustees thereof, to deposit adequate funds with the paying agent of said bonds on or before fifteen (15) days prior to the maturity dates of the interest on or principal of said bonds, respectively. (C) Beginning November 1, 1960, there shall be credited to the Depreciation Account on the first business day in each month the sum of Two Hundred Dollars ($200) until a maximum of Twelve Thousand Dollars - 10 - 1 ($12,000) is on deposit in said Account, which is hereby found and de- termined to be a reasonable amount necessary to accomplish the purpose for which said Account is established. The moneys in said Account shall be used to pay the cost of necessary repairs and replacements to the system and only such exten- sions as are necessary to preserve the efficient operation of the sys- tem. The moneys held in said Account to the extent necessary to pre- vent or remedy a default in the payment of the interest on or principal of the bonds herein authorized shall also be used and held for use for that purpose and for that purpose shall be transferred by the Treasurer of this Village, without further authority, to the proper Account here - inabove mentioned, and whenever such a transfer is made, the amount or amounts so transferred shall be added to the next credit to be made to said Depreciation Account, and thereafter, until full reimbursement to said Account has been made. (D) Beginning November 1, 1959, there shall be credited to the Bond Reserve Account the sum of Seven Hundred Fifty Dollars ($?50) on the first business day of each month until such Account - aggregates the sum of Forty Thousand Dollars ($40,000), and thereafter no further funds shall be credited to said Account, except as hereinafter provided. The moneys in said Account shall be withdrawn from time to time only for the purpose of paying the principal of or interest on the bonds of said Village which by their terms are payable from the revenues of said sys- tem of said Village whenever there are insufficient funds on hand avail- able for that purpose in any of the other Accounts created in this Ordi- nance for that purpose. If and when funds are withdrawn forthe purpose for which the Bond Reserve Account has been created, credits to said Account shall be resumed until said Account again aggregates the sum of Forty Thousand Dollars ($40,000). If and when the Bond Reserve Account, together with all other funds available for such purpose, is sufficient to call and redeem all of the outstanding bonds authorized pursuant to - 11 - I 1 this Ordinance that are subject to redemption prior to their maturity, the said funds shall be applied to the call and redemption of all of said bonds and all of said bonds when redeemed shall be cancelled and not reissued. (E) The entire balance remaining in said Water Fund at the close of each fiscal year shall be credited to the Surplus Account to be used and held for use as follows: (i) First, for the reimbursement at any time and from time to time of any Account listed in Subparagraphs (A) through (D) hereof that is depleted by withdrawals, until each such Account contains the minimum deposits hereinabove specified; (ii) Second, a sum of money equal to not less than one -half (1/2) of the amounts so deposited in said Surplus Account, remaining after each such reimbursement as aforesaid shall have been made, shall be transferred at the end of each fiscal year by Resolution of the governing body of this Village to an Improvement and Extension Account, which is hereby created, to be accumulated to a maximum amount of $100,000 and to be used for the purpose of making improvements or exten- sions to said system, including the construction and installation of ad- ditional water storage facilities, provided that all expenditures for such purposes.shall be approved by an independent consulting engineer or engineers favorably known for skill in such matters before any such ex- penditures are made; and provided further, that all moneys in said Account may from time to time by Resolution- adopted by the governing body of this Village be transferred to the Bond Redemption Account for the purposes described in subparagraph (iii)(a) hereof; and (iii) Third, all moneys then remaining in said Surplus Account at the.end of any fiscal year shall be either (a.) transferred to a Bond Redemption Account, which is hereby created, to be used to redeem the bonds herein authorized prior to their maturity or to pur- chase said bonds in the open market at not exceeding par, if such bonds - 12 - are not then subject to prior redemption, and all bonds so redeemed or purchased shall be cancelled; or (b) used to accelerate the accumulation of the required deposits to be maintained in the Bond Reserve Account and in the Depreciation Account and for that purpose shall be transferred by the Treasurer of this Village to-said Accounts; or (c) used for any lawful corporate purpose, as the governing body of said Village shall determine by Resolution, to be filed with the Village Treasurer. (F) The moneys to be credited to the said Accounts described in Subparagraphs (C), (D) and (E) of this Section may be invested from time to time in interest.bearing bonds or other direct and general obli- gations of the United States Government; provided, however, that the funds of said respective Accounts shall be so invested as in the judgment of the President and Board of Trustees will not be required for expendi- ture within a period of ninety (90) days from and after the date of the investment thereof, and provided further, that all such securities so purchased shall mature and be redeemable on a date or dates prior to the time when, in the judgment of the President and Board of Trustees, the funds so invested will be required for expenditure. It shall be the continuing duty of the officials of this Vil- lage, without further authorization from the President and Board of Trustees thereof, to sell any of such investments for any of said Accosts when necessary to meet any payment due from such Accounts. Any income re- ceived from, or losses realized by the sale of, any such investments shall be credited to, or charged to, the Account for which such invest- ments were made. (G) No further payments need to be made into said Principal and Interest Account when and so long as such amount of bonds of said Village payable therefrom shall have been retired that the amount then held in said Account, together with the amount then on deposit in the Bond Reserve Account, is equal to the entire amount of all interest and principal that will be payable at the time of redemption or maturity on all of said bonds then remaining outstanding; provided that if there are - 13 - not sufficient funds in the Principal and Interest Account available to pay all of the maturing principal of and interest on all of said bonds of said Village that are payable therefrom, such deficiency shall be made up first, by the transfer of funds from the Bond Reserve Account and next, by the transfer of'funds from the Depreciation Account and next, by the transfer of funds from the Surplus Account; and provided further, that if in any fiscal year said Village shall for any reason fail to credit to each Account the full amount hereinabove specified, then an amount equivalent to such deficiency shall be set apart and credited to said Account from the first available revenue of the next following fis- cal year or years and shall be in addition to the amount otherwise here- in provided to be so set apart and credited during each succeeding fiscal year or years. Section 6. That the Village of Deerfield hereby agrees to carry insurance on the system of the kinds and in the amounts which are usually carried by private parties operating similar properties, includ- ing without limiting the generality of the foregoing, ,fire, windstorm insurance, public liability, and any additional insurance covering such risks as shall be recommended by a competent independent consulting en- gineer employed for the purpose of making such recommendations, and all moneys received for losses under such insurance policies as insure against physical damage to or loss of the system shall be deposited in the De- preciation Account and-shall be 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) days from date of the loss. The proceeds of any and all.policies for public liability shall be paid into the Operation and Maintenance Account and used in paying the claims on account of which they were received. The payment of premiums for all insurance policies required under the provisions of this Section shall be considered an operation and maintenance expense. - 14 - Section 7. That while any of the Water Revenue Bonds issued pursuant to this Ordinance remain outstanding or unpaid, rates charged for water service shall be sufficient at all times to pay all costs of operation and maintenance of the system, to make the payments and main- tain the balance as required in the Depreciation Account, to pay the principal of and interest on all bonds authorized hereunder, and to make the payments and maintain the balances as required in the Bond Reserve Account, as hereinabove provided for. There shall be charged against all users of said system, including the Village of Deerfield, such rates and amounts for water services as shall be adequate to meet the require- ments of this Section. Charges for services rendered said Village shall be made against said Village and payment for the same from the corporate funds shall be made monthly, and all such payments shall be deposited into the Water Fund created by this Ordinance, in the same manner as other revenues are required to be deposited. Said Village covenants not to provide any free service of said system, and to pay promptly for the use of all facilities connected, and to be connected, to said system. It is expressly herein covenanted that said Village will not grant a franchise for the operation of any competing waterworks system within said Village, and that the bonds herein authorized to be executed shall constitute legally enforceable liens upon the earnings of said system of said Village, including all further extensions, additions, and Improvements thereto, whether acquired through purchase, contract, or otherwise. Section 8. In the event said Village defaults in complying with any covenant contained in this Ordinance, any holder of any bond issued hereunder, or of any coupon representing interest accrued there- on, may, either in law or in equity, by proper suit, compel the offi- cials.of said Village to perform all duties required by law and by this Ordinance, including the making and collecting of sufficient rates for water services for that purpose and the application and segregation of all income and revenue therefrom in accordance with the requirements of this Ordinance. - 15 - Section (A) It is hereby covenanted and agreed while any of the bonds issued under the terms of this Ordinance are outstanding, said Village reserves the right to issue at one time or from time to time as shall be found by the governing body of said Village necessary for the best interests of said Village, additional bonds in a total aggre- gate principal amount of $125,000 payable from the income and revenue to be derived from said system for the sole purpose of paying the cost of the construction and installation of additional water storage facilities or the completion of the improvements and extensions for which the said $545,000 principal amount of bonds are authorized herein and on a parity therewith; provided that the amount of bonds within said aggregate amount of $125,000 to be issued for completion of such improvements and'exten- sions shall not exceed $25,000. The need of financing such work shall be evidenced by a certificate of the independent consulting engineer in re- sponsible charge thereof (i) giving a reasonably detailed description thereof, an estimate of the cost and of the time of completion thereof, (ii) stating in reasonably itemized detail all expenditures made from the proceeds of said $545,000 principal amount of bonds authorized hereunder as to amount and purpose, and (iii) showing the feasibility of such reve- nue financing with a reference to then existing rates, and anticipated earnings based thereon, which certificate shall be approved by the govern- ing body of said Village, and shall be made of record in the proceedings of said governing body prior to the authorization of any such additional bonds. (B) Said Village covenants and agrees with the holders of the bonds herein authorized that, except for the issue of the bonds described in Subparagraphs (A) and (C) of this Section, no additional parity bonds shall be issued, unless at the close of the fiscal year immediately pre- ceding the issue of said additional bonds, the following conditions have been met: (i) Each Account created under Section 5 contains the minimum amount to be credited thereto as specified in said Section 5, and (ii) The experienced net revenues of said system at the close of said fiscal year as shown by an audit of an independent certified - 16 - public accountant have been at least equal to One Hundred Thirty Per Cent (130 %) of the maximum principal and interest requirements due in any future fiscal year on all bonds authorized hereunder and on a par- ity therewith, then outstanding, and on all of the new bonds so proposed to be issued, or (iii) The adjusted net revenues of said system at the close of said fiscal year according to said audit will be at least equal to One Hundred Fifty Per Cent (1500 of the maximum principal and interest requirements due in any future fiscal year on all bonds authorized hereunder and on a parity therewith, then outstanding, and on all of the new bonds so proposed to be issued. The phrase "experienced net revenues" for the calculation hereinabove described in subparagraph (ii) shall mean the gross reve- nues received from, less the actual operation and maintenance expense of, said system at the close of said fiscal year. The phrase "adjusted net revenues" for the calculation herein- above described in subparagraph (iii) shall mean the gross revenues re- ceived from, less the actual operation and maintenance expenses of, said system at the close of said fiscal year adjusted to reflect the addi- tional revenue that would have accrued to the system due to (a) any re- vision in the schedule of rates for water being charged at the time of issuance of any such additional bonds as shown by a certificate of said independent certified public accountant, and (b) the average annual in- crease in the experienced net revenues by reason of any improvements or extensions to the system for payment of which such additional bonds are to be issued for the five (5) year period next succeeding the esti- mated completion date of such improvements or extensions, as shown by a certificate of an independent consulting engineer employed for that pur- pose; provided that prior to the issuance of such additional parity bonds contracts for the immediate construction of said improvements or exten- sions have been entered into. - 17 - Said Village further covenants and agrees with the holders of the bonds herein authorized that any such additional bonds issued under this Subparagraph shall be issued only for constructing necessary im- provements or extensions to the system, and that the need thereof shall be evidenced by a certificate of a responsible independent consulting engineer familiar with the construction of such work (i) giving a rea- sonably detailed description thereof, an estimate of the cost thereof and an estimate of the time of completion thereof, and (ii) showing the feasibility of such revenue financing with a reference to then existing rates, or proposed rates, or new improvements or extensions, and antici- pated revenues based thereon, which certificate shall be approved by the governing body of said Village, and shall be made of record in the proceedings of said governing body 'before any such additional bonds are authorized. (C) In addition to the foregoing, if, prior to the payment of all the bonds hereby authorized, it shall be found desirable to refund part of the bonds hereby authorized, said bonds may be refunded notwith- standing the restrictions as to the issuance of additional bonds set forth in this Section (with the consent of the holders thereof unless the bonds to be refunded are subject to redemption and provision for call and redemption thereof is duly made), and any refunding bonds so issued shall share ratably and equally in the revenues of said system and the pledge thereof under this Ordinance with the portion of the bonds hereby authorized which are not refunded; provided, further, that if any such bonds are refunded in such manner that the interest rate is increased or the refunding bonds mature at a date earlier than the matur- ity of the bonds not refunded, then such refunding bonds shall not share ratably and equally in the revenues of said system with the por- tion of the bonds remaining outstanding authorized under this Ordinance. (D) Said Village further covenants that any additional bonds so issued under Subparagraphs (B) or (C) hereof, shall mature serially on May 1 of each year and bear interest payable semiannually May 1 and November 1; and that any additional bonds so issued under Subparagraph (A) hereof that mature prior to May 1, 1989 shall be expressed to mature serially in installments of principal of not more than $5,000 on May 1 in each of the years 1969 through 1985 and not more than $10,000 on May 1 in each of the years 198 through 1989, and shall bear interest pay- able semiannually May 1 and November 1. (E) When the conditions herein specified for the issue of additional bonds have been met, then upon the issue thereof any such additional bonds, when issued, shall be entitled to the equal and pro- portionate benefit and security of the pledge of the revenue and income derived and to be derived from the operation of said system with the bonds herein authorized, without preference, priority or distinction as to participation of such pledge of revenue or in the benefit of one bond or coupon of each of said issues over or from any other issue by reason of priority in execution, issue, delivery or negotiation thereof, or by reason of the date or dates of said bonds, or the date or dates of matur- ity thereof, or for any other reason whatsoever, the intent hereof being that each and all of said bonds, as aforesaid, and the coupons evidencing interest thereon, shall have the same right and pledge as to payment and security, with the same legal effect as if each and all of said bonds and coupons had been issued, executed, delivered and negotiated simul- taneously as one proceeding. Section 10. That the Village of Deerfield hereby covenants and agrees with the holder.or holders of said bonds that it will punctu- ally perform all duties with reference to said system, including the making and collecting of sufficient rates for the use and services of said system, all as required by the Constitution and laws of the State of Illinois, and segregating the revenues of said system and maintain- ing the Water Fund of the Village of Deerfield and the application of the respective Accounts created by this Ordinance, and it hereby cove- nants and agrees not to sell, lease, loan, mortgage, or in any manner dispose of or encumber said system, including any and all extensions - 19 - and improvements that may be made thereto, or the income and revenue de- rived therefrom, except as permitted in Section 9 hereof, until all of the bonds herein authorized to be issued shall have been paid in full, both principal and interest, or unless and until provision shall have been made for the payment thereof. And said Village further covenants and agrees with the holders of said Water Revenue Bonds authorized hereunder to maintain in good condition and continuously operate said system, and to make, enact and enforce all needful rules and regulations and ordinances for-'the effi- cient management and proper maintenance and p otection'thereof, and for the use and services thereof. Section 11. Said Village covenants that the Water Fund of the Village of Deerfield and the Accounts created under Section 5 here- of, shall be audited within ninety (90) days after the close of each fiscal year by an independent firm of certified public accountants, and such audit and Accounts shall.be open for inspection at all proper times to any holder of bonds issued under the provisions of this Ordi- nance, or any one acting for or on behalf of such bondholder. Such audit report shall include the following items: (a) Balance sheet, (b) Operating statement, (c) Comments of the auditor relative to the fulfill ment of Ordinance provisions and the manner in which the system has been operated and any recommendations for improving the operation thereof, (d) Insurance data, (e) Number of metered customers; number of unmetered customers; number of properties connected to the system; number of hy- drants, and (f) Gallons of water passing through master meter and gal- lons of water billed, and copies of such audit report shall be furnished the original purchasers of the bonds herein authorized, and shall also be furnished to any bondholder upon request in writing. Section 12. That the provisions of this Ordinance shall con- stitute a contract between the Village of Deerfield and the holders of the bonds herein authorized to be issued, and after the issuance of said bonds no changes, additions or alterations of any kind shall be - 20 - made hereto, except as hereinbefore provided, until all of said bonds and the interest thereon shall have been paid in full, or unless and until provision shall have been made for the payment thereof. Section 13. That as soon as may be after this Ordinance be- comes effective, the governing body of said Village by Ordinance shall designate the rate or rates of interest said bonds shall bear and the paying agent therefor and shall direct the delivery of said bonds by said Treasurer to A. C. Allyn and Company, Incorporated, and Scott & Kegley, Inc., Chicago, Illinois, the purchasers thereof, upon receipt of the purchase price therefor in accordance with their contract of pur- chase which is hereby accepted and approved (being at an interest cost to said Village of less than Six Per Cent (6 %) per annum computed to maturity, according to standard tables of bond values), and all proceeds received at the delivery thereof shall/be accounted for as follows: (i) All accrued interest from the date of the bonds to the date of delivery and payment, shall be credited by said Treasurer to the Principal and Interest Account, as aforesaid, to be used and held for use solely to pay the interest on said bonds. (ii) The Treasurer shall deposit all the remaining proceeds received as principal in a separate and special account of said Village to be known and designated as the "Waterworks System Bond Construction Fund Account" which shall be in the depositary for said Village selected for that purpose, to be secured in the manner, form and time as by law required, and all proceeds held in said Construction Fund Account shall be used and held for use solely to construct the improvements and ex- tensions to the said system of said Village as hereinabove described in this Ordinance, and the beneficial interest to all moneys held in said Construction Fund Account at the time of the original deposit therein and from time to time thereafter shall be in the holder or holders of the bonds herein authorized, and all disbursements therefrom for payment of the costs of constructing said improvements and extensions shall be made by the Treasurer hereof from time to time but only upon submission to him and said depositary of: - 21 - (a) a certificate by the engineer in responsible charge of the construction of said improvements and exten- sions stating the nature of the work completed and the amount due and payable thereon, and that sufficient funds remain to complete the construction thereof, bearing the endorsement and approval of the President of said Village and accompanied by; (b) an order for payment upon said Treasurer signed by the President of said Village and the Village Clerk, which order shall state specifically the purpose for which said order is issued. Within the sixty (60) days after completion of the construc- tion of the improvements and extensions herein authorized, said Village agrees to deliver to said depositary an original counterpart of a cer- tificate (herein called the "Certificate of Completion ") signed by the President and by the Village Treasurer, and having endorsed thereon the approval of the engineer in charge of such construction, stating that said improvements and extensions have been fully constructed and com- pleted in accordance with the plans, maps, files and specifications therefor as recited in this Ordinance, and that the same has been fully paid for, or that funds sufficient so to pay for the same remain in said Construction Fund Account, giving the date of final completion and the total cost of construction, and the amount, if any, of such construction cost then remaining unpaid, together with an original counterpart of the opinion of counsel for said Village to the effect that all property, real, personal, and mixed, connected with or forming a part of, or nec- essary to the operation of said system as completed, is owned by said Village and covered by the lien of this Ordinance, and upon receipt of such Certificate of Completion and opinion of counsel as mentioned, said depositary, after retaining in said Construction Fund Account a sum sufficient to pay the balance of the construction cost remaining unpaid as shown by said Certificate of Completion, including any items then in - 22 - r' controversy, shall deposit all moneys then remaining in the Principal and Interest Account hereinabove created. Section 14. The President, the Village Clerk, and the Village Treasurer are each hereby authorized and directed to execute and deliver to the paying agent of the bonds and to each depositary, as aforesaid, such certificates, proceedings, and agreements as may be necessary or convenient to establish the "Water Fund of the Village of Deerfield" and each Account herein created in Section 5 and Section 13 hereof, and to properly secure all proceeds thereof, and to evidence compliance here- with in the making of any withdrawals therefrom. Section 15. 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 of the other provi- sions of this Ordinance. Section 16. All ordinances, resolutions, or orders, or parts thereof, in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed. Section 17. This Ordinance, after its passage and approval by the President shall be published once in the Deerfield Rete&, a news- paper published and having a general circulation in the Village of Deer- field, and shall be in full force and effect after such publication in the manner, form and time as provided by the laws of the State of Illinois thereunto enabling. Passed and approved March �$, 19, P sident Attest: Village Cl erk Published Marche, 1959. Attest: it age Clerk - 23 -