O-60-02z
AN ORDINANCE creating an issue of $125,000
Water Revenue Bonds, Series of 1960, of the
Village of Deerfield, Lake and Cook Counties,
Illinois.
WHEREAS, the Village of Deerfield, Lake and Cook Counties,
Illinois has heretofore acquired, and now owns and operates a municipal
waterworks 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 "system "), serving the needs of said Village and has issued
$545,000 Water Revenue Bonds, Series of 1959, pursuant to an Ordinance
adopted March 18, 1959, to provide funds for the construction of im-
provements-and-extensions to said system in accordance with the en-
gineering report of Baxter & Woodman, Civil and Sanitary Engineers,
Crystal Lake, Illinois, together with the plans, maps and supporting.
data for the construction of such necessary improvements and exten-
sions to said system, and
WHEREAS, It is now determined that said Village will need to
borrow the additional sum of $125,000 as provided'4nd permitted'by
said Ordinance adopted March 18, 1959, as aforesaid, to provide the
funds required for the cost of said improvements and extensions, as
aforesaid, 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'.,Counti,es,,. 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 & Woodman, Civil and
Sanitary Engineers, Crystal Lake, Illinois, together with the plans,
maps and supporting data therefor heretofore submitted too and approved
by this President and Board of Trustees at a cost estimate of $125,000
r i
to include the following:
The completion of the construction and installa-
tion of new water main extensions, complete in place,
including all necessary fittings, gate valves, valve
vaults, hydrants, connections to existing mains and
hydrants at a construction cost estimate of not to ex-
ceed $25,000; and the completion of the construction
and installation of increased water storage facilities
from 500,000 to 1,000,000 gallon capacity, complete in
place, at a construction cost estimate of $74.710;
together with all engineering, legal, fiscal and
supervisory expenses in the sum of $25,290, as permitted
by said Ordinance adopted March 18, 1959, as aforesaid,
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 1960 ", in the principal sum
of $125,000, the proceeds from the sale thereof being hereby deter-
mined adequate to pay the cost estimate of said improvements and ex-
tensions hereinabove described in the aggregate sum of $125,000. The
said bonds shall bear date of January 1, 1960, shall be of $1,000 de-
nomination, numbered from 1 through 125, and said bonds shall mature
(subject to the right of prior redemption hereinafter described) seri-
ally in numerical order on May 1 in each of the years and amounts as
follows:
$ 5,000 - 1969 through 1985
lo,000 - 1986 through 1989
wtw
Said Village reserves the right to call said bonds for re-
demption prior to maturity at par and unpaid accrued interest to the
date fixed for prior redemption, as a whole, or in part in their in-
verse numerical order, on any interest payment date on or after May 1,
1975.
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 (6f) 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 (6 %) annually computed to maturity, accord-
ing to standard tables of bond values, and said interest to be payable
May 1, 1960, 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 oi'
said President and said Village Clerk, and said officials, by the
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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 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 Vil-
lage Treasurer, such registration to be noted on the reverse side of
the bonds by said Treasurer, and thereafter the principal of such regis-
tered bonds shall be payable only to the registered holder, his legal
representatives or assigns. Such registered bonds may be transferable
to another registered holder or back to bearer only upon presentation
to said Treasurer, with a legal assignment duly acknowledged or
approved. Registration of any of such bonds shall not affect the nego-
tiability 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 differ-
ences in maturity dates, rates of interest, 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 DEERFIELD
WATER REVENUE BOND, SERIES OF 196o
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 l'e
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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, pay-
able May 1, 1960, and semiannually thereafter on the first days of May
and November in each year, and until the maturity of this bond such in-
terest shall be payable upon presentation and surrender of the interest
coupons hereto 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 One Hundred Twenty -
five Thousand Dollars ($125,000) issued under authority of Article 78
of the Revised Cities and Villages Act, and all laws amendatory there-
of 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.
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 maintaining the
several accounts established by the Ordinance authorizing the issue of
bonds of which this bond is one.
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Said Village reserves the right to call said bonds for re-
demption prior to maturity at par and unpaid accrued interest to the
date fixed for prior redemption, as a whole, or in part in their inverse
numerical order, on any interest payment date on or after May 1, 1975.
Notice of redemption of ariy 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 so 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 itis 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 estab-
lished 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 c�
the holder on the books of said Village in the office of the Village
Treasurer, such registration to be evidenced by notation of said
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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 registration by being transferred to bearer, after
which it shall be transferable by delivery, but it may be again regis-
tered as before. The registration of this 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 signatures of said President and said Village
Clerk, which officials, by the execution of this bond, do adopt as and
for their own proper signatures their respective facsimile signatures
appearing on said coupons, and this bond to be dated as of the first
day of January, 1960.
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 pay-
ment 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
1960, dated January 1, 1960, numbered
(facsimile signature) _
President;
(facsimile signature)
.i� Village Clerk)
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(Form of Registration Certificate)
Date of
Registration In Whose Name Registered
Signature of
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
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 rev-
enues derived from the operation of said system shall be collected and
shall be set aside, as collected, in a separate fund which was created
by the Ordinance adopted March 18, 1959 authorizing $545,000 Water
Revenue Bonds, Series of 1959, and shall be maintained for the bonds
issued under this Ordinance and shall 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 segre-
gated and apart from all other moneys of said Village, and shall be
used only to create and maintain the said Accounts hereinafter speci-
fied, to pay the cost of operating and maintaining said system, to pro-
vide an adequate depreciation reserve and to pay the principal of and
interest on the Water Revenue Bonds issued under the terms of this Ordi-
nance, 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 appropriated therefor.
Section 5. That there shall be established separate accounts
in said Water Fund, as aforesaid, to be designated severally "Opera:.'.; -c--i
and Maintenance Account ", "Principal and Interest Account ", "Deprec-.a-
tion Account ", "Bond Reserve Account" and "Surplus Account ", into
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which there shall be credited in the order in which said Accounts are
hereinaboae mentioned all moneys in said Water Fund and all in accord-
ance 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
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 inci-
dental 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 (1/12) thereof shall be charged and accumulated each month.
(B) There next shall be credited to the Principal and Inter-
est Account the entire balance of the revenues on the first business
day in each month prior to May 1, 1960, until the amount of interest due
May 1, 1960 is on hand, and (i) on the first business day in each month
thereafter commencing May 1, 1960, an amount at least equal to one -sixth
(1/6) of the interest becoming due and payable on the next succeeding
interest payment date on all of the outstanding bonds authorized pursu-
ant 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, 1968, an amount at least
equal to one- twelfth (1/12) 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 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 authorization 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, re-
spectively.
(C) In addition to the requirements of Section 5(C) of the
Ordinance adopted March 18, 1959 authorizing $545,000 Water Revenue
Bonds, Series of 1959, beginning November 1, 1960, there shall be
credited to the Depreciation Account on the first business day in each
month the additional sum of Fifty Dollars ($50) until a maximum of
Fifteen Thousand Dollars ($15,000) 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 exten-
sions as are necessary to preserve the efficient operation of the
system. 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) In addition to the requirements of Section 5(D) of the
Ordinance adopted March 18, 1959 authorizing $545,000 Water Revenue
Bonds, Series of 1959, beginning May 1, 1960, there shall be credited
to the Bond Reserve Account the additional sum of Two Hundred Dollars
($200) on the first business day of each month until such Account aggre-
gates the sum of Fifty -two Thousand Dollars ($52,000), and thereafter
no further funds shall be credited to said Account, except as herein-
after provided. The moneys in said Account shall be withdrawn from
time to time only for the purpose of paying the principal of or
=Tom
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 in-
sufficient 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 Fifty -two Thousand Dollars ($52,000).
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 and on a parity
therewith 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 ex-
tensions 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
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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
are not then subject to prior redemption, and all bonds so redeemed or
purchased shall be cancelled; or (b) used to accelerate the accumula-
tion 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
obligations 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 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 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 expendi-
ture.
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
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.
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(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 avail-
able 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 herein -
above 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 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 carried by private parties operating similar properties,
including 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 engineer employed for the purpose of making such recommenda-
tions, 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 re-
pairing the property damaged or replacing the property destroyed, and
provision for making good such loss or damage shall be made within
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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.
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 Re-
serve 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 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.
Said Village covenants not to provide any free service of
said system, and to pay promptly for the use of all facilities con-
nected, 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, addi-
tions and improvements thereto, whether acquired through purchase, con-
tract or otherwise.
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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.
Section 9. (A) Said Village covenants and agrees with the
holders of the bonds herein authorized that, except for the issue of
the bonds described in Subparagraph (B) 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:
(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
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 pro-
posed 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 re-
quirements due in any future fiscal year on all bonds authorized here-
under 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 revenuer
received from, less,the actual operation and maintenance expense of,
said system at the close of said fiscal year.
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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
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 accountant, and (b) the average
annual increase in the experienced net revenues by reason of any im-
provements or extensions to the system for payment of which such addi-
tional bonds are to be issued for the five (5) year period next succeed-
ing the estimated completion date of such improvements or extensions,
as shown by a certificate of an independent consulting engineer
employed for that purpose; provided that prior to the issuance of such
additional parity bonds contracts for the immediate construction of
said improvements or extensions have been entered into.
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
improvements or extensions to the system, and that the need thereof
shall be evidenced by a certificate of a responsible independent con-
sulting 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 financing with a reference to
then existing rates, or proposed rates, or new improvements or exten-
sions, and anticipated 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.
(B) In addition to the foregoing, if, prior to the payment
of all the bonds hereby authorized, it shall be found desirable to re-
fund part of the bonds hereby authorized, said bonds may be refunded
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notwithstanding the restrictions as to the issuance of additional bonds
set forth in this Section (with the consent of the holders thereof un-
less 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 sys-
tem 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 refunding bonds shall
not share ratably and equally in the revenues of said system with the
portion of the bonds remaining outstanding authorized under this Ordi-
nance.
(C) Said Village further covenants that any additional bonds
so issued under Subparagraphs (A) or (B) hereof, shall mature serially
on May 1 of each year and bear interest payable semiannually May 1 and
November 1 of each year.
(D) 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 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, de-
livered and negotiated simultaneously as one proceeding.
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Section 10. That the Village of Deerfield hereby covenants
and agrees with the holder 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 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
maintaining the Water Fund of the Village of Deerfield and the applica-
tion of the respective Accounts created by this Ordinance, and it here-
by covenants and agrees not to sell, lease, loan, mortgage, or in any
manner dispose of or encumber said system, including any and all exten-
sions and improvements that may 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 provi-
sion 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
efficient management and proper maintenance and protection 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 ful-
fillment 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
MOM E
1
of unmetered customers; number of properties connected to the system;
number of hydrants, and (f) Gallons of water passing through master
meter and gallons of water billed, and copies of such audit report
shall be furnished the original purchasers of the bonds herein author-
ized, 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 authorized to be issued, and after the issuance of
said bonds no changes, additions or alterations of any kind shall be
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
purchase which is hereby accepted and approved (being at an interest
cost to said Village of less than Six Per Cent (6f) per annum computed
to maturity, according to standard tables of bond values), and all pro-
ceeds 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 Vil-
lage to be known and designated as the "Waterworks System Bond Con-
struction Fund Account" which shall be in the depositary for said
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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 extensions to the said system of said Village as here -
inabove described in this Ordinance, and the beneficial interest to all
moneys held in said Construction Fund Account at the time of the ori-
ginal deposit therein and from time to time thereafter shall he 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 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
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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 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 Construc-
tion Fund Account a sum sufficient to pay the balance of the construc-
tion cost remaining unpaid as shown by said Certificate of Completion,
including any items then in 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 de-
liver to the paying agent of the bonds and to each depositary, as afore-
said, such certificates, proceedings, and agreements as may be neces-
sary 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 herewith 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 pro-
visions 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 Review, a
newspaper published and having a general circulation in the Village
of Deerfield, and shall be in full force and effect after such
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i
publication in the manner, form and time as provided by the laws of the
State of Illinois thereunto enabling.
Passed and approved x 1960.
fires ent V
Attest:
Village Clerk
Published 5arAmTy 1 1960.
Attest:
Village'Clerk
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