O-16477*
ORDINANCE NO. %
AN ORDINANCE authorizing and providing for the
issue of $160,000 Sewerage Revenue Bonds of the
Village of Deerfield, Lake County, Illinois,
for the purpose of defraying part of the cost
of improving and extending the existing sewerage
system of said Village, prescribing all the de-
tails of said bonds, and providing for the col-
lection, segregation and distribution of the
revenue of the sewerage system of said Village
for the purpose of paying the cost of the opera-
tion and maintenance thereof, providing an ade-
quate depreciation fund therefor, and paying the
principal and interest of said Sewerage Revenue
Bonds.
WHEREAS it is deemed advisable and necessary for the public
health and safety of the inhabitants of the Village of Deerfield, and for the
best interests of the Village of Deerfield, that'its sewerage system be im-
proved and extended by constructing the following: a complete sewage treat -
ment plant, including a control building, primary clarifiers, secondary
clarifier, trickling filter, digester, sludge drying beds and sewage lift
station, complete as shown on the plans and described in the specifications,
apporximately 30,000 lineal feet of storm and sanitary sewers of varying
sized, and the construction of approximately 2,000 lineal feet of 6 inch
C.I. wator main, and approximately 5,200 lineal feet of 8 inch C.I. force
main, all as shown by the detailed plans and specifications heretofore
approved by the President and Board of.Trustees and on file in the office
of the Village Clerk and open for public inspection; and
WHEREAS the total estimated cost of the construction of said
improvements and extensions as prepared by the engineers of said Village
employed for that purpose is the sum of $735,000; and
WHEREAS the Village has been authorized to issue general obliga-
tion bonds in the principal amount of $575,000 to pay p.part of the cost of
the construction of said improvements, and it will be necessary in order to
pay the balance of the cost of the construction of said improvements and
extensions to borrow money and issue revenue bonds, and in evidence thereof
issue revenue bonds of the Village in thecprincipal amount of $160,000; and
WHEREAS pursuant to the provisions of Article 60 of The Revised
Cities and Villages Act, of the State of Illinois, this Village is authorized
to issue sewerage revenue bonds in an amount sufficient to pay part of the
cost of the construction of said necessary improvements and extensions to the
sewerage system, as hereinabove described;
NOW, THEREFORE Be it ordained by the President and Board of
Trustees of the Village of Deerfield,.Lake County, Illinois, as follows:
Section'l. That the President and Board of Trustees of the
Village of Deerfield, Lake County, Illinois, has caused an estimate of the
cost of making improvements and extensions to the sewerage system of said
Village, and improvements and extensions being generally described herein -
above in the preambles of this ordinance, and all in accordance with detailed
plans and specifications therefore heretofore prepared and approved and now
on file in the office of the Village Clerk for public inspection, and has here-
tofore determined, and does hereby determine and estimate that the total cost
of the construction of said improvements and extensions is the sum of $735,000.
Section 2. That the President and Board of Trustees does hereby
determine the period of usefulness of said sewerage system of said Village,
including the improvements and extensions to be made thereto, to be forty years.
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Section 3. That the Village does not have sufficient funds
available for the purpose of paying the entire cost of constructing such
improvements and extensions to its sewerage system as described hereinabove
in the preambles of this ordinance, and for said purpose it will-require the
issuance by said Village of $160,000 Sewerage Revenue Bonds.
Section 4. That for the purpose.-of defraying part of the cost
of the construction of such improvements and - extensions to the sewerage
system, all as referred to and described hereinabove in the preambles of
this ordinance, there be issued and sold revenue bonds of said Village, to
be designated "Sewerage Revenue Bonds," in the principal amount of $160,000,
which bonds shall bear date of November 1, 1954, be numbered from 1 to 160,
inclusive, be of the denomination of $1,000 each; that said;bonds shall
bear interest at the rate of three and three - fourths per cent (3 -3/4 %) per
annum, payable November 1, 1955, and semi - annually thereafter on the first
days of May and November in each year, and mature $5,000 on November 1 of
each of the years 1956 to 1960, inclusive, $8,000 on November 1 of each of
the years 1961 to 1965, inclusive, $9,000 on November 1 of each of the years
1966 to 1970, inclusive, and $10,000 on November 1 of each of the years 1971
to 1975, inclusive, provided, however, that bonds numbered 111 to 160, inclusive,
maturing on November 1 of each of the years 1971 to 1975, inclusive, shall be
redeemable as a whole or in part, prior to maturity, at par and accrued interest
to date of redemption on November 1, 1959, or on any interest payment date
thereafter. If less than all of the bonds are redeemed at any time, the bonds
shall be redeemed in the inverse order in which they are numbered; that is to
say, bond numbered 160 shall be called for redemption before bond numbered 159
is called for redemption and payment, and continuing such priority of redemp-
tion as to all bonds and redeemable.
Written notice of its option to redeem any or all of said bonds, in accordance
with their terms, shall be given by the Village to the holder of each of such
bonds called for redemption, if known, by registered mail at least thirty (30)
days prior to the date of redemption, or if the holders of any such bonds are
unknown, then such notice shall be published once at least thirty (30) days
prior to the date of redemption in one newspaper published and of- general
circulation in the City of Chicago, Illinois, All such bonds called for
payment and redemption shall cease to bear interest from and after the date
of redemption.
Section 5. Both principal and interest of said Sewerage Revenue
Bonds shall be payable in lawful money of the United States of America at
such bank or trust company in the State of Illinois as may hereafter be agreed
upon by the Village and the purchaser.of said bonds. Said bonds shall be signed
by the President, sealed with the corporate seal of said Village, and be
attested by the Village Clerk, and the interest coupons attached to said bonds
shall be executed by the facsimile signatures of said President and-said
Village Clerk, and said officials, by the execution of said bonds, shall adopt
as and for their own proper signatures their facsimile signatures appearing
on said coupons.
Said bonds, together with interest thereon, shall be
payable solely from the revenues derived from the sewerage system of said
Village, and such bonds shall not in any event constitute an indebtedness of
the Village of Deerfield within the meaning of any constitutional or statutory
limitation.
Any of said bonds may be registered as to principal
at any time, prior to maturity, in the name of the holder on the books of said
Village, in the office of the Village Treasurer, such registration to be noted
on the reverse side of the bonds by the Village Treasurer and thereafter the
principal of such registered bonds shall be payable only to the registered
holder, his legal representative or assigns, Such registered bonds shall be
transferable to another registered holder or back to bearer only upon presenta-
tion to the Village Treasurer, with a legal assignment duly acknowledged or
approved. Registration of any of such bonds shall not affect negotiability
of the coupons thereto attached, but such coupons shall be transferable by
delivery merely.
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Section 6. That said bonds and coupons shall be in substantially
the following form:
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF LAKE
SEWERAGE REVENUE BOND
NUMBER $1,000
KNOW ALL MEN BY THESE PRESENTS, that the Village of'Deerfield, Lake County,
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 Sewerage Fund of the Village of Deerfield, as hereinafter mentioned, and
not otherwise, the sum of ONE THOUSAND DOLLARS ($1,000) on November 1, 19_,
together with interest on said sum from date hereof until paid at the rate of
three and three - fourths per cent (3'3/40 per annum, payable November 1, 1955,
and semi - annually thereafter on the first days of May and November of each year,
upon presentation and surrender of the annexed interest coupons as they severally
become due.
Both principal and interest of this bond are hereby made payable in lawful
eC money of the'United States of America at ,
in the of , Illinois.
This bond is payable solely from revenues derived from the sewerage system
of said Village and not otherwise, and is-issued under authority of Article 60
of The Revised Cities and Villages Act of the State of Illinois, and all laws
amendatory thereof and supplemental thereto, for the purpose of paying the cost
of contructing improvements and extensions to the sewerage system of said Village
of Deerfield, and this bond does not constitute an indebtedness of said Village
within any constitutional or statutory limitation.
Under said Act and the ordinance adopted pursuant thereto, sufficient
revenues from the operation of the sewerage system of said Village shall be
deposited in a separate fund designated as the "Sewerage Fund " of said Village,
which shall be used only in paying the cost of operation and maintenance of
said system, providing a reasonable depreciation fund, and paying the principal
of and interest on all bonds of such Village that are issued under authority of
said Act, and are payable by their terms only from the revenue of such sewerage
system.
It is hereby certified and recited that all acts, conditions, and thiggs
required to be done precedent to and in the issuance of this bond have been done
and have happened and have been performed in regular and due form 6f law, and
that provision has been made for depositing in said Sewerage Fund sufficient
revenues received from the operation of said sewerage 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 said sewerage system
sufficient at all times to pay the cost of operation and maintenance of such
system. provide a reasonable depreciation fund, -and pay the principal of and
interest on all bonds issued by said Village which are payable solely from the
revenues of such system.
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 regis-
tration 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 negotiability of the coupons by delivery merely.
IN WITNESS WHEREOF, said Village of Deerfield, Lake County, Illinois, by
its President and Board of Trustees, has caused this bond to be.-signed by its
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President, its corporate seal to be hereto affixed, and to be attested by
the Village Clerk, and the coupons hereto attached to be signed by the fac-
simile 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 the first day of November, 1954.
President I.
Attest:
Village Clerk
(FORM OF COUPON)
NUMBER $
On the first day of _
Lake County, Illinois, will
Village Dollars
of America at
Illinois, being interest th
19 1954, Number
, 19_, the Village of Deerfield,
pay to bearer out of the Sewerage Fund of said
( ) in lawful money of the United States
_ in the of ,
an due on its Sewerage Revenue Bond, dated November
President
Village Clerk
a
(Form for Registration)
DATE OF IN WHOSE NAME SIGNATURE OF
REGISTRATION REGISTERED VILLAGE TREASURER
r.
Section 7. That upon the issuance of any of the Sewerage Revenue Bonds
herein provided for, the municipal sewerage system of said Village of Deerfield
for the purpose of this ordinance, shall be operated on a fiscal year basis
commencing the first day of November and ending on the last day of October of
each succeeding year. From and after the delivery of any bonds issued under the
provisions of this ordinance sufficient revenues derived from the operation of
the sewerage system of said Village of Deerfield ah411 be set aside as collected
and be deposited in a separate fund which is hereby created to be designated
as the Sewerage Fund of the Village of Deerfield, which shall be used only in
paying the cost of operation and maintenance of said system, providing a
reasonable depreciation fund, paying the principal of and interest upon the
sewerage revenue bonds of said Village of Deerfield that are payable by their
terms only from such revenues, and such sewerage fund shall be used only for
such purposes.
It is hereby determined that the amounts to be set aside in the said
Sewerage Fund to be used f®t the purpose of paying principal and interest of
ae Sewerage Revenue Bonds issued under the provisions of this ordinance shall
be as follows:
s�
a
Said Bond and Interest Reserve Fund may be invested in United States
Government Bonds of'stated redemption value if available, or otherwise in
any government bonds maturing not more than five years-from date of invest-
ment, and any such securities so purchased may be sold from time to time as
funds are needed for the purpose for which said account has been created.
Distribution of amounts in said sewerage fund sufficient to cover the
above required s-um sfor principal and interest of said Swwerage Revenue Bonds,
and also for the purpose of paying the cost of operation, maintenance and a
reasonable depreciation fund, shall be made monthly on the first day of each
month, except that when the first day of any month shall be a Sunday or a
legal holiday, then such distribution shall be made on the next succeeding sec-
ular day. Said sewerage,fund, as hereinabove provided for., shall be used solely :
and only, and is'hereby pledged for the purpose of paying the principal and
interest of the bonds herein authorized to be issued, to pay the cost of
operation and maintenance, and provide a reasonable depreciation fund, which
depreciation fund,shall be accumulated at an annual rate of $1,000 per year,
and such funds shall be used only for the purpose of meeting any unusual
' emergency or expense or in the renewal of replacement of any of such properties,
provided that the moneys in the Depreciation Fund not needed for such purpose
may be used to pay interest or principal on bonds where there would otherwise
be a default on the payment thereof.
Whenever there has been set aside in the sewerage fund a sum sufficient to
pay the principal and interest to maturity of all bonds outstanding of this
authorized issue, then said Village shall not be required to set aside any
further sums for said purpose.
Fiscal Year Ending the
Principal and
Last Day of October
Interest
1955
$ 6,000.00
1956
111000.00
1957
10,812.50
1958
10,625.00
1959
10,437.50
1960
10,250.00
1961
13,062'.50
1962.
12,762.50
1963
12,462.50
1964
121162.50
1965
11,862.50
1966
12,562.50
1967
121225.00
1968
11,887.50
1969
11,550.00
C.
1970
11,112.50
1n
1971
111875.00
CD
1972
11,500.00
1973
11,125.00
1974
10,750.00
1975
10,375.00
In addition to the sums hereinabove set out
to be set aside for the
payment of principal and interest on the bonds hereby authorized, there
shall be set aside each year, beginning with the
fiscal period ending the
last day of October 1955, a sum equal to one per
cent (1 %) of the principal
and interest requirements for each fiscal period
hereinabove set out. All
such sums shall be set aside in a separate gccount and designated "Bond and
Interest Reserve Fund" for the payment of principal and interest on any bonds
of the Village, which by their terms are paya':le
from the revenue derived from
the operatiori of the sewerage system at any time
exists a deficiency in the
amounts available for the purpose of paying principal ofr..and interest on any
of said bonds of said Village which by their terms are payable from the
revenues of the sewerage system.
Said Bond and Interest Reserve Fund may be invested in United States
Government Bonds of'stated redemption value if available, or otherwise in
any government bonds maturing not more than five years-from date of invest-
ment, and any such securities so purchased may be sold from time to time as
funds are needed for the purpose for which said account has been created.
Distribution of amounts in said sewerage fund sufficient to cover the
above required s-um sfor principal and interest of said Swwerage Revenue Bonds,
and also for the purpose of paying the cost of operation, maintenance and a
reasonable depreciation fund, shall be made monthly on the first day of each
month, except that when the first day of any month shall be a Sunday or a
legal holiday, then such distribution shall be made on the next succeeding sec-
ular day. Said sewerage,fund, as hereinabove provided for., shall be used solely :
and only, and is'hereby pledged for the purpose of paying the principal and
interest of the bonds herein authorized to be issued, to pay the cost of
operation and maintenance, and provide a reasonable depreciation fund, which
depreciation fund,shall be accumulated at an annual rate of $1,000 per year,
and such funds shall be used only for the purpose of meeting any unusual
' emergency or expense or in the renewal of replacement of any of such properties,
provided that the moneys in the Depreciation Fund not needed for such purpose
may be used to pay interest or principal on bonds where there would otherwise
be a default on the payment thereof.
Whenever there has been set aside in the sewerage fund a sum sufficient to
pay the principal and interest to maturity of all bonds outstanding of this
authorized issue, then said Village shall not be required to set aside any
further sums for said purpose.
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Section g. While the bond authorized hereunder or any of
them remain outstanding or unpaid, rates charged for sewerage service shall
be sufficient at all times to pay the cost of operation and maintenance, to
provide a reasonable depreciation fund, and.,to pay the interest of'and�prin =7,
cipal on the Sewerage Revenue Bonds issued hereunder. There shall be charged
against all users of said Sewerage service, including the Village of Deerfield,
such rates and amounts for sewerage service as shall be sufficient 'at all times
to pay the cost of operation and maihtenance of the sewerage system, provide a
reasonable depreciation fund, and pay the principal of and interest upon all
outstanding revenue bonds of said Village which by their terms are payable
from the revenues of said sewerage system. Compensation for services
rendered the Village shall be charged against the Village and payment for the
same from the corporate funds shall be made monthly into the sewerage fund
created by this ordinance, in the same manner as other revenues are required
to be deposited.
Section 9. Any holder of a bond or bonds or any of.the
coupons of any bond or bonds issued hereunder may either in law or equity, by
suit, mandamus, or other proceedings, enforce or compel performance of.all
duties required by this ordinance, including the making and collecting of
sufficient rates for sewerage service and application of income and revenue
therefrom.
Section 10. It is hereby covenanted and agreed that
while any Sewerage Revenue Bonds issued hereunder are outstanding additional
sewerage revenue bonds for improvements and extensions to the sewerage system
of said Village may be issued by the Village to share ratable and equally in
the earnings of the sewerage system without priority or preference with the
sewer revenue bonds authorized to be issued hereunder, regardless of a subse-
quent date of issue or authorization; provided, however, no additional bonds
payable from the revenues of said sewerage system shall be issued to share
ratable and equally in the earnings with the bonds authorized by this ordinance
uhless the President and Board of Trustees shall have had prepared and filed
in the office of the Village Clerk an audit of the receipts and disbursements
of the sewerage system for the last preceding fiscal year as shown by such
audit (net earnings for the purpose of this section shall mean the amount.
remaining after deducting from the income of said sewerage system all mainten-
ande and operation costs and the amount to be set aside for depreciation as
herein provided) are equal to one hundred ten percent (110 %) of the average
annual principal and interest requirements on the bonds then outstanding and
on the bonds then proposed to be issued, waid President and Board of Trustees
shall have the authority to proceed with the issuance of additional sewerage
revenue bonds to share ratably and equally in the earnings to be derived from
the operation of said sewerage system. If the earnings as shown by such
audit are not adequate to comply with the above requirements, then the Presi-
dent and Board of Trustees shall not proceed with the issuance of addit ional
sewerage revenue bonds to share ratably and equally with the bonds authorized
by this ordinance unless and until there has been submitted to said President
and Board of Trustees a report by an independent engineer employed by the
President and Board of Trustees for that purpose to show that the proposed
improvements or extensions to be constructed with the proceeds of any such
additional bonds will increase the revenues annually so that the net earnings
will equal one hundred ten per cent (1100 of the average annual principal and
interest requirements on bonds then outstanding and the bonds then proposed
to be issued, or in lieu thereof, based upon the engineer's report the rates
and charges for the use and service of the sewerage system are increased by
ordinance to produce the net earnings based upon such increased charges and
service as will be sufficient to comply with the requirements herein set forth.
Section 11. That the Village of Deerfield hereby covenants
and agrees with the holder or holders of the bonds herein proposed to be
issued, or any of them, that it will punctually perform all duties with
reference to said sewerage system required by the Constitution and laws of
the State of Illinois, including the making and collecting of sufficient rates
for service, and segregating the revenues of said system and the application
of the respective funds created by this ordinanee, and it hereby covenants
and agrees not to sell, lease, loan, mortgagee or in any manner dispose of
said sewerage system, including any and all extensions and improvements that
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may be made thereto, except as herein provided, 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 pay-
ment for the payment of all such bonds and interest thereon in full; and
that-said Village further covenants and agrees with the holders of said bonds
to maintain in good condition and continuously operate said sewerage system
until all of said bonds, both principal and interest, have been paid in full.
Section 12. That as soon as may be, after this ordinance
becomes effective, this President and Board of Trustees shall order and direct
that said bonds hereby authorized be advertised for sale by publishing notice
.thereof, as may hereafter be directed by the President and Board of Trustees,
inviting sealed bids for the purchase of said bonds and the award of said
bonds1to the purchaser shall be made by this President and Board of Trustees
to the acceptable bidder on the basis of the lowest interest cost to the
Village, but no bid is to be considered for less than par or for bonds bearing
interest at a rate greater than authorized and provided for in this ordinance,
and in determining the best bid the interest cost to the Village shall be
computed by determining the interest date of bonds to absolute maturity at
the rate or rates specified by the bidder after dedubting therefrom any
M premium offered. Provided, further, that if the acceptable bidder offers to
10 purchase said bonds at not less than par and accrued interest to date of de-
livery bearing interest at a rate less than three and three- fourths per cent
(3 -3/4 %) per annum, as provided by this ordinance, then this President and
Board of Trustees upon making the award of said bonds to the said purchaser
shall by resolution direct the officers of the Village to execute and deliver
the said bonds to the purchaset, to bear interest at the rate or rates, specified
by the bidder of less than three and three - fourths per cent (3- 3/4 %), and in
and by said resolution this President and Board of Trustees shall also designate
the paying agent for said bonds as may be mutually agreeable to the Village
and the successful bidder for said bonds.
Section 13. 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 the bonds, no changes,
additions or alterations of any kind shall be made hereto in any manner except
in accordance with the provisions of this ordinance, or until such time as all
of said bonds issued hereunder and the interest thereon shall be paid in full,
or unless and until provision shall be made-for the payment of all otxah bonds
and interest thereon in full.
Section 14. That the proceeds derived from the sale of
said bonds hereby authorized shall be used solely and only for the purpose
of paying the cost of the construction of the improvements and extensions to
the sewerage system,.in accordance with plans and specifications therefor,
prepared for that purpose, and now on file in the office of the Village Clerk
and open to the inspection of the public.
Section 15. The books of the Village Treasurer shall show
the amount of moneys received from the proceeds of the sale of said bonds and
the expenditure of such funds for the purposes set out in this ordinance shall
be made upon estimates and bills approved by the President and Board of Trustees.
Section.,16. Said Sewerage Fund and accounts, both of the
Collector and Treasurer, shall be audited at least once in each year by a
recognized public accountant, and such audit are a:-c -aunts shall be open for
inspection at all proper times to any taxpayer, or user, of said sewerage
system, or any holder of bonds issued under the provisions of this ordinance,
or any one acting for or on behalf of such taxpayers, user, or bondholcier.'
Reports of the operation of the system shall be furnished the President and `
Board of T`r`ustees monthly, and copies of the same shall be furnished to any
bondholder upon request.
Section 17. If any section, paragraph, clause or provision
of this ordinance shall be held invalid, the invalidity of such section, pare -
graph, clause or provision shall not affect any of the other provisions�of
this ordinance.
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Section 18. In the event the amount of bonds issued is
less than the aggregate amount herein authorized the amounts to be set aside
in the Sewerage Fund to be used for the purpose of paying principal and
interest of said Sewerage Revenue Bonds, as provided in Section 8 hereof,
shall be reduced proportionately.
Section 1 . 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 if no petition is filed with the Clerk of said Village within
ten days after the publication of this ordinance by fifteen per cent of the
number of voters for President at the last preceding g6nera11election requesting
the submission of the proposition of making the improvements and extensions
and issuing the bonds herein provided for to the voters of said Village, then
this ordinance shall be in full force and effect.
ATTEST:
Village Clerk
INTRODUCED: October 18, 1954•
FILED: October 18, 1954.
PASSED: October 26. 195L.
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