HomeMy WebLinkAboutORDINANCES-1988-060-O-88•
ORDINANCE NO. 60-0-88
AN ORDINANCE authorizing and providing for the
issue of $1,000,000 Water Revenue Bonds, Series
1988, of the City of Evanston, Cook County,
Illinois, for the purpose of defraying the cost of
improving and extending the present waterworks
system of said. City,. prescribing all the details of
said bonds, and providing for the collection,
segregation and distribution of the revenue of the
waterworks system of said City.
WEEREAS it is deemed advisable, necessary and for the
best interests of the City of Evanston, Cook County, Illinois
(the "City") that improvements and extensions to its municipally -
owned waterworks system be constructed and installed, including
• the following:
together with all necessary pipes, valves, fittings, connections,
• ancillary facilities and appurtenances, costs of engineering,
legal and financing services, and contingencies, and the total
•
estimated cost of such project (the "Project") is the sum of
$ , all in accordance with the preliminary report and
estimate of cost prepared by
consulting engineers employed by the .City, and heretofore
approved by the City Council and now on file in the office of the
City Clerk for public inspection; and
W EREAS the City does not have funds available for the
purpose of paying the cost of the Project, and it will be neces-
sary for the City to borrow the principal sum of $1,000,000 and
• in evidence thereof issue its revenue bonds therefor; and
WHEREAS pursuant to the provisions of Division 129 of
Article 11 of the Illinois Municipal Code, as amended, and its
powers as a home rule unit, the City is authorized to issue water
revenue bonds for the purpose of paying the cost of said
improvements and extensions; and
WHEREAS the City Council (the "City Council") of the
City has heretofore, pursuant to Ordinance adopted on April 13,
1964, authorized and issued $4,080,000 Water Revenue Bonds, dated
May 1, 1964, of which bonds in the amount of $1,540,000 are
presently outstanding, and pursuant to Ordinance No. 76-0-72,
adopted on November 6, 1972, authorized and issued $1,400,000
Water Revenue Bonds, Series 1973, dated May 1, 1974, of which
• bonds in the amount of $625,000 are presently outstanding, and
pursuant to Ordinance No. 25-0-80, adopted on April 8, 1980,
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authorized and issued $5,000,000 Water Revenue Bonds, Series
1980, dated May 1,- 1980, of which bonds in the amount of
$4,750,000 are presently outstanding, and pursuant to Ordinance
No. 99-0-82, adopted on October 4, 1982, authorized and issued
$5,000,000 Water Revenue Bonds, Series 1982, dated October 1,
1982, of which bonds in the amount of $4,750,000 are presently
outstanding, and pursuant. to Ordinance No. 119-0-84, adopted on
October 22, 1984, authorized and issued $3,300,000 Water Revenue
Bonds, Series 1984, of which bonds in the amount of $3,075,000
are presently outstanding, all which said outstanding bonds (the
• "Currently Outstanding Bonds") aggregate the principal amount of
$14,740,000; and
WHEREAS pursuant to the provisions of said. ordinances
(the "Currently Outstanding Bond Ordinances") adopted by the City
Council authorizing the Currently Outstanding Bonds, while the
Currently Outstanding Bonds are outstanding, no additional bonds
shall be issued to share ratably and equally in the income
derived from the operation of the waterworks system (as
hereinafter more specifically defined, the "System") of the City
unless the revenues for the fiscal year then next preceding were
sufficient to comply with the specific restrictions set forth in
each of the Currently Outstanding Bond Ordinances; and
WHEREAS the City Council has caused an audit of the
•
earnings of the System to be
made for the
last preceding fiscal
year, and the City Council
has heretofore
determined and does
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hereby determine that the earnings of the System for the last
preceding fiscal year comply with the covenants and restrictions.
provided for in and by each of the Currently Outstanding Bond.
Ordinances, and that the earnings for such last preceding fiscal
year, are sufficient to permit the issuance of the $1,000,000
additional Water Revenue Bonds, Series 1988, herein provided for,
to share ratably and equally in the income derived from the
operation of the System with the Currently Outstanding Bonds;
NOW,. TEEREFORE, Be I.t Ordained by the City Council of
the City of Evanston, Cook County, Illinois, in the exercise of
• its home rule powers, as follows:
Section 1. Definitions
The following words and terms used in this ordinance
shall have the following meanings unless the context or use
clearly indicates another or different meaning is intended:
"Act" means the Illinois Municipal Code, as supple-
mented and amended, and the home rule powers of the City under
Section 6 of Article VII of the Illinois Constitution of 1970.
In the event of conflict between the provisions of said code and
home rule powers, the home rule powers shall be deemed to
supersede the provisions of said code.
"Bond" or "Bonds" means one or more, as applicable, of
the $1,000,000 Waterworks Revenue Bonds, Series 1988, authorized
• to be issued by this Ordinance.
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"Bond Register" means the Books of the City kept by the
Bond Registrar to evidence the registration and transfer of the
Bonds.
"Bond Registrar" means American National Bank and Trust
Company of Chicago, a national banking association, with princi-
pal corporate trust offices located in Chicago, Illinois, in its
capacity as bond registrar and paying agent hereunder, or
successor thereto or designated hereunder.
"City" means the City of Evanston, Cook. County, Illi-
nois.
•
"City
Council" means the
City Council
of
the City.
"Code"
means the Internal
Revenue Code
of
1986.
"Currently Outstanding Bonds" means the bonds described
and defined as such in the preambles hereto.
"Currently Outstanding Bond Ordinances" means the
ordinances described and defined as such in the preambles hereto.
"Fiscal Year" means a twelve-month period beginning
January 1 of the calendar year and ending on December 31 of such
year or such other fiscal year as the City may select in accord-
ance with the limitations herein set forth.
"Maximum Annual Debt Service" means an amount of money
equal to the highest future principal and interest requirement of
all Outstanding Bonds required to be deposited into the Bond and
• Inte.rest Account created by this ordinance in any Fiscal Year,
including and subsequent to the Fiscal Year in which the compu-
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tation is made. Any Outstanding Bonds required to be redeemed
pursuant to mandatory redemption from said Bond and Interest
Account shall be treated as falling due on the date required to
be redeemed (except in the case of failure to make any such man-
datory redemption) and. not on the stated_ maturity date of such
Outstanding Bonds.
"Net Revenues" means Revenues minus Operation and Main-
tenance Costs.
"Operation and Maintenance Costs" means all costs of
operating, maintaining and routine repair of the System, includ-
ing wages, salaries, costs- of materials and supplies, taxes,
power, fuel, insurance, purchase of water or sewage treatment
services (including all payments by the City pursuant to long
term contracts for such services to the extent provided in such
contracts); but excluding debt service, depreciation, or any
reserve requirements; and otherwise determined in accordance with
generally accepted accounting principles for municipal enterprise
funds.
"Outstanding Bonds" means Currently Outstanding Bonds,
Bonds and Parity Bonds which are outstanding and unpaid;
provided, however, such term shall not include Bonds or Parity
Bonds (i) which have matured and for which moneys are on deposit
with proper
paying
agents, or are otherwise
properly
available,
•
sufficient
to pay
all principal thereof and
interest
thereon, or
(ii) the provision for payment of which has been made by the City
•
by the deposit in an irrevocable trust or escrow of funds, which
may be invested in direct, full faith and credit obligations of
the United States of America, the principal of and interest on
which will be sufficient, with any funds left uninvested, to pay
at. maturity or as called for redemption all the principal of and
interest on such Bonds or Parity Bonds.
"Parity Bonds means bonds or any other obligation to
be issued subsequent in time to the Bonds and which will share
ratably and equally in the earnings of the System with the
Currently Outstanding Bonds and the Bonds.
• "Project" means. the project described and defined as
such in the preambles hereto.
"Revenues"' means all gross revenues or income from
whatever, source derived from the System, including (i) investment
income; (ii) connection, permit and inspection fees and the like;
(iii) penalties and delinquency charges; (iv) capital develop-
ment, reimbursement, or recovery charges and the like; (v)
annexation or pre -annexation charges insofar as designated by the
City Council as paid for System connection or service; but
excluding expressly (a) non -recurring income from the sale of
property of the System; (b) governmental or other grants; (c)
advances or grants made from the City; and as otherwise de-
termined in accordance with generally accepted accounting prin-
ciples for municipalenterprise funds.
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"System" refers to all property, real, personal or
otherwise owned or to be owned by the City or under the control
of the City, and used for waterworks purposes, and any and all
further extensions, improvements and additions to the System.
"Water Fund" means the "Water Fund of the City of
Evanston."
Section 2. Incorporation of Preambles
The City Council hereby finds that all of the recitals
contained in the preambles to this ordinance are full, true and
correct and does incorporate them into this ordinance by this
• reference.
Section 3. Determination To Issue Bonds for Project
It is necessary and in the best interests of the City -
to issue the Bonds to acquire and construct the Project for the
public health, safety and welfare.
Section 4. Determination of Useful Life
The City Council does hereby determine the period of
usefulness of the System and the Project to be 40 years from the
date of the Bonds.
Section 5. Bond Details
For the purpose of paying a part of the costs of the
Project, there shall be issued and sold the Bonds in the princi-
pal amount of $1,000,000. The Bonds shall each be designated
• "Water Revenue Bond, Series 1988" and be dated as of September 1,
1988 (the "Dated Date"), and shall also bear the date of
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authentication thereof. The Bonds shall be in fully registered
form, shall be in denominations of $5,000 and authorized integral
multiples thereof (but no single Bond shall represent principal
maturing on more than one date), shall be numbered in such
reasonable fashion as may be selected by the Bond Registrar,
shall bear interest at a rate or rates not to exceed the maximum
interest rate provided by law at the time of the sale of Bonds,
and shall mature serially on January 1 of the years and in the
amounts as follows (subject to the right of prior redemption
hereinafter stated):
• Year Amount ($) Year Amount ($)
Each Bond shall bear interest from the later of its
Dated Date as herein provided or from the most recent interest
payment date to which interest has been paid or duly provided
for, until the principal amount of such Bond is paid or duly pro-
vided for, such interest (computed upon the basis of a 360-day
year of twelve 30-day months) being payable on January 1, 1989,
• and semiannually thereafter on July 1 and January 1 of each
year. Interest on each Bond shall be paid by check or draft of
•
the Bond Registrar, payable upon presentation in lawful money of
the United States of America, to the person in whose name such
Bond is registered at the close of business on the 15th day of
the month next preceding the interest payment date. The princi-
pal of and premium (if any) on the Bonds shall be payable upon
presentation in lawful money of the United States of America at
the principal corporate trust office of the Bond Registrar or at
successor Bond Registrar and locality.
Section 6. Redemption
Those of the Bonds due on or after January 1, , are
subject to redemption and payment prior to their maturity, at the
option of the City, in whole or in part, from any available
funds, on any interest payment date on or after January 1, ,
and if in part, in integral multiples of $5,000, in inverse order
of maturity and within any maturity selected by lot by the Bond
Registrar as hereinafter provided, at a redemption price of par
plus a premium, expressed as a percentage of principal amount
redeemed, plus accrued interest to the date fixed for redemption,
as follows:
Period (Dates inclusive) Premium M
Unless waived by the Bond Registrar, the City shall
. notify the Bond Registrar of the redemption of Bonds (by maturity
and amount per maturity, if less than all Bonds of a maturity are
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to be redeemed) not less than 45 days prior to the date of
redemption. In the event of a partial redemption of Bonds of a
given maturity, the particular Bonds or portions thereof to be
redeemed shall be selected. by lot not more than 60 days prior to
the redemption date by the Bond Registrar.. With respect to par-
tial redemptions, the- Bond Registrar shall select the Bonds or
portion thereof to be redeemed by such method of lottery as the
Bond Registrar shall deem fair and appropriate; provided that
such lottery shall provide for the selection for redemption of
Bonds or portions thereof so that any $5,000 Bond or $5,000 por-
tion of a Bond shall be as likely to be called for redemption as
any other such $5,000 Bond or $5,000 portion.
The Bond Registrar shall promptly notify the City in
writing of the Bonds or portions of Bonds selected for redemption
and, in the case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
Unless waived by the registered owner of Bonds to be
redeemed, official notice of any such redemption shall be given
by the Bond Registrar on behalf of the City by mailing the
redemption notice by registered or certified mail not less than
30 days and not more than 60 days prior to the date fixed for
redemption to each registered owner of the Bond or Bonds to be
redeemed at the address shown on the Bond Register or at such
• other address as is furnished in writing by such registered
owners to the Bond Registrar.
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All official notices of redemption shall include at
least the information as follows:
(1) the redemption date;
(2) the redemption price;
(3) if less than all of the Bonds of a single maturity are
to be redeemed, the identification (and, in the case of partial
redemption of any Bonds, the respective principal amounts) of the
Bonds to be redeemed;
(4) a statement that. on the redemption date the redemption
price will become due and payable upon each such Bond or portion
• thereof called for redemption and that interest thereon shall
cease to accrue from and after said date; and
(5) the place where such Bonds are to be surrendered for
payment of the redemption price, which place of payment shall be
the principal corporate trust office of the Bond Registrar.
Prior to any redemption date, the City shall deposit
with the Bond Registrar an amount of money sufficient to pay the
redemption price of all the Bonds or portions of Bonds which are
to be redeemed on that date.
Official notice of redemption having been given as
aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date
(unless the City shall default in the payment of the redemption
•
price) such Bonds or portions of Bonds shall cease to bear inter-
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est. Neither the failure to mail such redemption notice, nor any
defect in any- notice so mailed, to any particular registered
owner, shall. affect the sufficiency of such notice with respect
to other Bonds. Notice having been properly given, failure of a
Bondholder to receive -such notice shall not be deemed to invali-
date, limit or -delay the effect of the notice or redemption
action described in the notice. Such notice may be waived in
writing by the registered owner entitled to receive such notice,
either before or after the event, and such waiver shall be the
equivalent of such. notice. Waivers of notice by registered
owners shall be filed with the Bond Registrar, but such filing
shall. not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
Upon surrender of such Bonds for redemption in accor-
dance with said notice, such Bonds shall be paid by the Bond
Registrar at the redemption price. The procedure for payment of
interest due on or prior to the redemption date shall be as
herein provided for payment of interest otherwise due. Upon sur-
render for any partial redemption of any Bond, there shall be
prepared for the registered owner a new Bond or Bonds of like
tenor, of authorized denominations, of the same maturity and
bearing the same rate of interest in the amount of the unpaid
principal. If any Bond or portion of Bond called for redemption
• shall not be so paid upon surrender thereof for redemption, the
principal shall, until paid or duly provided for, bear interest
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from the redemption date at the rate borne by the Bond or portion
of Bond so called for redemption. All Bonds which have been
redeemed shall be cancelled and destroyed by the Bond Registrar
andshall not be reissued.
In addition to the foregoing notice, further notice
shall be given by the Bond Registrar on behalf of the City as set
out below, but no defect in said further notice nor any failure
to give all or any portion of such further notice shall in any
manner invalidate, limit or delay the redemption action if notice
thereof is given as above prescribed.
0 Each further notice of redemption given hereunder shall
contain the information required above for an official notice of
redemption plus (a) the CUSIP numbers of all Bonds being re-
deemed; (b) the date of issue of the Bonds as originally issued;
(c)
the rate
of interest
borne
by each Bond being
redeemed; (d)
the
maturity
date of each
Bond
being redeemed; and
(e) any other
descriptive information needed to identify accurately the Bonds
being redeemed.
Each further notice of redemption shall be sent at
least 35 days before the redemption date by registered or certi-
fied mail or overnight delivery service to all registered secu-
rities depositories then in the business of holding substantial
amounts of obligations of types comprising the Bonds (such depos-
itories now being Depository Trust Company of New York, New York,
• and Midwest Securities Trust Company of Chicago, Illinois) and to
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one or more national information services, chosen in the,
discretion of the Bond Registrar, that disseminate notice of
redemption of obligations.such as the Bonds.
Each such further notice shall be published one time in
The Bond Buyer, New York, New York or, if such publication is
impractical or unlikely to reach a substantial number of the reg-
istered owners of the Bonds, in some other financial newspaper or
journal which regularly carries notices of redemption of other
obligations similar to the Bonds, such publication to be made at
least 30 days prior to the date fixed for redemption.
. Upom the payment of the redemption price of Bonds being
redeemed, each check or other transfer of funds issued for such
purpose shall bear the CUSIP number identifying, by issue and
maturity, the Bonds being redeemed with the proceeds of such
check or other transfer.
Parity Bonds hereinafter issued pursuant to the terms
hereof may be redeemable at such times and upon such terms as may
be determined at the time of authorization thereof.
Section 7. Amendment
The rights and obligations of the City and of the reg-
istered owners of. Outstanding Bonds may from time to time be
modified or amended by a supplemental ordinance adopted by the
City Council with the written consent of the holders and regis-
tered owners of not less than two-thirds of the principal amount
of all Outstanding Bonds (excluding any of said bonds owned by or
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under the control of the City); provided, however, that no such
modification or amendment may become effective until all of the
outstanding Water Revenue Bonds, dated May 1, 1964, of the City
have been paid in full, both as to principal and interest, or
provision made for the payment thereof; and, provided further,
that no such modification or amendment shall extend or change the
maturity of or date of redemption prior to maturity, or reduce
the. interest rate on, or permit the creation of a preference or
priority of any Outstanding Bond or Outstanding Bonds over any
other Outstanding Bond or Outstanding Bonds, or otherwise alter
• or impair the obligation of the City to pay the principal of,
interest on and redemption premium (if any) on any of the
Outstanding Bonds at the time, place, rate, and in the currency
provided therein, or alter or impair the obligations of the City
with respect to registration, transfer, exchange or notice of
redemption of Bonds, without the express consent of the holders
and registered owners of all the Outstanding Bonds affected; nor
shall any such modification or amendment reduce the percentage of
the holders and registered owners of Outstanding Bonds required
for the written consent of such modification or amendment without
the consent of the holders and owners of all of the Outstanding
Bonds.
Ownership of Bonds for purposes of consent by the reg-
• istered owners thereof shall be conclusively proved by the Bond
Register. In obtaining or receiving the consents of registered
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owners, the City may establish reasonable rules of procedure
including, without limitation, rules relating to (i) a record
date to fix the registered owners who are entitled to vote-,
(ii) solicitation of proxies and (iii) a meeting of the regis-
tered owners for the taking of actions. The registered owners of
Bonds may vote their Bond interest in fractional shares. In the
event that Bonds are registered in the name or names of nominees
or depositories, consent of such owners by proxy in accordance
with the applicable customs of the securities industry or rules
of the Securities Exchange Commission, Municipal Securities Rule
making Board or other association or agency having jurisdiction
shall be sufficient.
Section 8. Execution; Authentication
The Bonds shall be executed on behalf of the City with
the manual or facsimile signature of the Mayor and attested with
the manual or facsimile signature of the City Clerk, as they may
determine, and shall have impressed or imprinted thereon the cor-
porate seal or facsimile thereof of the City. In case any offi-
cer whose signature shall appear on any Bond shall cease to be
such officer before the delivery of such Bond, such signature
shall nevertheless be valid and sufficient for all purposes, the
same as if such officer had remained in office until delivery.
All Bonds shall have thereon a certificate of authenti-
cation substantially in the form hereinafter set forth duly exe-
cuted by the Bond Registrar as authenticating agent of the City
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and showing the date of authentication. No Bond shall be valid
or obligatory for any purpose or be entitled to any security or
benefit under this ordinance unless and until such certificate of
authentication shall have been duly executed by the Bond Regis-
trar by manual signature, and such certificate of authentication
upon any such Bond shall be conclusive evidence that such Bond
has been authenticated and delivered under this ordinance. The
certificate of authentication on any Bond shall be deemed to have
been executed by it if signed by an authorized officer of the
Bond Registrar, but it shall not be necessary that the same
. officer sign the certificate of authentication on all of the
Bonds issued. hereunder.
Owners
Section 9. Registration of Bonds; Persons Treated as
The City shall cause books (the Bond Register) for the
registration and for the transfer of the Bonds as provided in
this ordinance to be kept at the principal corporate trust office
of the Bond Registrar, which is hereby constituted and appointed
the registrar of the City for the Bonds. The City is authorized
to prepare, and the Bond Registrar or such other agent as the
City may designate shall keep custody of, multiple Bond blanks
executed by the City for use in the transfer and exchange of
Bonds.
Any Bond may be transferred or exchanged, but only in
• the manner, subject to the limitations, and upon payment of the
charges as set forth in this ordinance. Upon surrender for
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transfer or exchange of any Bond at the principal corporate trust
office of the Bond. Registrar, duly endorsed by or accompanied by
a. written instrument or instruments of transfer or exchange in
form satisfactory to the Bond Registrar and duly executed by the
registered owner or an attorney for such owner duly authorized in
writing, the City shall execute and the Bond Registrar shall
authenticate, date and deliver in the name of the transferee or
transferees or, in the case of an exchange, the registered owner,
a new fully registered Bond or Bonds' of like tenor, of the same
maturity, bearing the same interest rate., of authorized denomina-
tions, for a like aggregate principal amount.
The Bond.Registrar shall not be required to transfer -or
exchange any Bond during the period from the close of business on
the 15th day of the calendar month preceding an interest payment
date on the Bonds to the opening of business on such interest
payment date or during the period of 15 days preceding the giving
of notice of redemption of Bonds or to transfer or exchange any
Bond all or a portion of which has been called for redemption.
The execution by the City of any fully registered Bond
sha_Il constitute full and due authorization of such Bond, and the
Bond Registrar shall thereby be authorized to authenticate, date
and deliver such Bond; provided, however, the principal amount of
Bonds of each maturity authenticated by the Bond Registrar shall
not at any one time exceed the authorized principal amount of
Bonds for such maturity less the amount of such Bonds which have
been paid.
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The person in whose name any Bond shall be registered
shall be deemed and regarded as the absolute owner thereof for
all purposes, and payment of the principal of or interest on or
premium on any Bond shall be made only to or upon the order of
the registered owner thereof or said owner's legal represen-
tative. All such payments shall be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent
of the sum or sums so paid.
No service charge shall be made for any transfer or
exchange of Bonds,but the City or the Bond Registrar may require
• payment of a sum sufficient to cover any tax or other govern-
mental charge that may be imposed in connection with any transfer
or exchange of Bonds except in the case of the issuance of a Bond
or Bonds for the unredeemed portion of a Bond surrendered for
redemption.
Section 10. Form of Bond
The Bonds shall be in substantially the form herein-
after set forth; provided, however, that if the text of the Bonds
is to be printed in its entirety on the front side of the Bonds,
then the second paragraph on the front side and the legend "See
Reverse Side for Additional Provisions" shall be omitted and the
text of paragraphs set forth for the reverse side shall be
inserted immediately after the first paragraph.
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[Form of Bond - Front Side]
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
A.Y OF COOK
CITY OF EVANSTON
WATER REVENUE BOND
SERIES 1988
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate: Date: Date: CUSIP
Registered Owner:
Principal Amount:
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Evanston, Cook County, Illinois, a municipality and political
subdivision of the State of Illinois (the "City") hereby acknow-
ledges itself to owe and for value received promises to pay to
the Registered Owner identified above, or registered assigns as
hereinafter provided, on the Maturity Date identified above, the
• Principal Amount identified above and to pay interest (computed
on the basis of a 360-day year of twelve 30-day months) on such
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Principal Amount from the later of the Dated Date of this Bond
identified above or fromthe most recent interest payment date to
which interest has been paid or duly provided for at the Interest
Rate per annum identified above, such interest to be payable on
January 1, 1989, and semiannually thereafter on July 1 and
January 1 of each year until said Principal Amount is paid or
duly provided for, and except as the provisions hereinafter set
forth with respect to redemption prior to maturity may be and
become -applicable hereto. Principal of and premium (if any) on
this Bond are payable in lawful money of the United States of
America.upon presentation hereof at the principal corporate trust
• office of American National Bank and Trust Company of Chicago,
Chicago, Illinois, as bond registrar and paying agent (the "Bond
Registrar"). Payment of interest shall be made to the Registered
Owner hereof as appearing on the registration books of the City
maintained by the Bond Registrar at the close of business on the
15th day of the month next preceding the interest payment date
and shall be paid by check or draft of the Bond Registrar,
payable upon presentation in lawful money of the United States of
America, mailed to the address of such Registered Owner as it
appears on such registration books or at such other address
furnished in writing by such Registered Owner to the Bond Regis-
trar.
Reference is hereby made to the further provisions of
• this Bond set forth on the reverse hereof, and such further pro-
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visions shall for all purposes have the same effect as if set
forth at this place.
It is hereby certified and recited that all acts,
conditions and things 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 of law and that provision
has been made for depositing into the Water Fund the entire
Revenues received from the operation of the System to be applied
in the manner as hereinabove set. forth; and the City hereby
covenants and agrees that it will fix and maintain rates for the
use and service of the System and collect and account for the
• Revenues derived therefrom sufficient at all time to pay
Operation and Maintenance Costs, to promptly pay principal of and
interest on all bonds issued by the City which are payable solely
from the Revenues of the System, and to provide an adequate
depreciation fund, and to comply with all the covenants of and to
maintain the accounts created by the Ordinance. The City
covenants that in each Fiscal Year the Net Revenues shall be
adequate to produce an amount sufficient to provide not less than
125% of the principal and interest requirements of all Outstand-
ing Bonds for such Fiscal Year.
This Bond shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall
have been signed by the Bond Registrar.
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The City has properly designated this Bond as a "quali-
fied tax-exempt obligation" under Section 265(b)(3) of the
Internal Revenue Code of 1986.
IN WITNESS WHEREOF the City of Evanston, Cook County,
Illinois, by its City Council, has caused. this Bond to be
executed with the duly authorized manual or facsimile signature
of its Mayor and attested by the duly authorized manual or facsi-
mile signature of its City Clerk and its corporate seal or a fac-
simile thereof to be impressed or reproduced hereon, all. as
appearing hereon and asof the Dated Date identified above.
•
Attest:
City Clerk, City of Evanston
Cook County, Illinois
(SEAL)
.7
Mayor, City of Evanston
Cook County, Illinois
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Date of Authentication:.
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds
described in the within mentioned
Ordinance and is one of the
Water Revenue Bonds., Series 1988,
having a. Dated Date of September 1,
1988, of the City of Evanston,
Cook County, Illinois.
American National Bank and
Trust Company of Chicago
as Bond Registrar
By
Authorized Officer
Bond Registrar and
Paying Agent:.
American National Bank and
Trust Company of Chicago
Chicago, Illinois
[Form of Bond - Reverse Side]
City of Evanston, Cook County, Illinois
Water Revenue Bond, Series 1988
This bond and the bonds of the series of which it forms
a part ("Bond" and "Bonds" respectively) are of an authorized
issue of One Million Dollars ($1,000,000) of like Dated Date and
tenor except as to maturity, rate of interest and privilege of
redemption. The Bonds are payable solely from the Revenues
derived from the operation of the waterworks system of the City
(the "System") after payment of Operation and Maintenance Costs,
and not otherwise, and are issued under authority of the
provisions of Division 129 of Article 11 of the Illinois Munici-
pal Code, as supplemented and amended, and as further
• supplemented and, where necessary, superseded, by the powers of
the City as a home rule unit under the provisions of Section 6 of
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•
Article VII of the Illinois Constitution of 1970 (such code and
powers being the "Act"), for the purpose of paying a part of the
cost of a Project for- the improvement and extension of the System
as more fully described in the Ordinance herein defined. The
Bonds are issued pursuant to Ordinance Number , passed by
the City Council of the City on the day of 1988 (the
"Ordinance"), to which reference is hereby expressly made for
further definitions and terms and to all the provisions of which
the holder and registered owner by the acceptance of this Bond
assents. This Bond does not constitute an indebtedness of the
• City within the meaning of any constitutional or statutory
provision or limitation.
Under the Act and the Ordinance, the Revenues from the
i
operation of the- System shall be deposited into the Water Fund,
which shall be used only and is hereby pledged for paying
Operation and Maintenance Costs, paying the principal of and
interest on all bonds of the City that are payable by their terms
only from the Revenues of the System, providing an adequate
depreciation fund, and in making all payments required to main-
tain the accounts established under the terms of the Ordinance.
Parity Bonds may be issued pursuant to the terms of the
Ordinance.
Outstanding Bonds issued and authenticated pursuant to
the Ordinance are coequal as to the lien on the Revenues of the
• System for their payment and share ratably, without any prefer-
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•
ence, priority, or distinction, the one over the other, as to the
source or method of payment and security of the Outstanding
Bonds.
The rights and obligations of the City and of the
holders and registered owners of the Bonds may from time to time
be modified or amended by a supplemental ordinance adopted by the
City Council with the written consent of the holders and regis-
tered owners of not less than two-thirds of the principal amount.
of all Outstanding Bonds (excluding any of said bonds owned by or
under, the control of the City); provided, however, that no such.
• modification or amendment may become effective until all of the
outstanding Water Revenue Bonds, dated May 1, 1964, of the City
have been paid in full, both as to principal and interest, or
provision made for the payment thereof; and, provided further,
that no such modification or amendment shall extend or change the
maturity of or date of redemption prior to maturity, or reduce
the interest rate or premium on, or permit the creation of a
preference or priority of any Outstanding Bond or Outstanding
Bonds over any other Outstanding Bond or Outstanding Bonds, or
otherwise alter or impair the obligation of the City to pay the
principal of, interest on and redemption premium (if any) on any
of the Outstanding Bonds at the time, place, rate and in the
currency provided therein or alter or impair the obligations of
the City with respect to registration, transfer, exchange or
• notice of redemption of Bonds, without the express consent of the
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holders andregistered owners of all the Outstanding Bonds
affected; nor shall. any such modification or amendment reduce the
percentage of the holders and registered owners of Outstanding
Bonds required for the written consent to such modification or
amendment without the consent of. the holders and owners of all of
the Outstanding Bonds-.
Those of the Bonds due on or after January 1, are
subject to redemption .at the option of the City, in whole or in
part, on any interest payment date on or after January 1, ,
in integral multiples of $5,000, in inverse order of maturity and
within any maturity selected by lot by the Bond Registrar in the
• manner provided in the Ordinance, at a redemption price of par
plus a premium, expressed as a percentage of principal amount
redeemed, plus accrued interest to the date fixed for redemption,
as follows:
Period (Dates inclusive) Premium M
Unless waived by the Registered Owner of Bonds to be
redeemed, notice of any such redemption shall be given by the
Bcnd Registrar on behalf of the City by mailing the redemption
notice by registered or certified mail not less than 30 days and
• not more than 60 days prior to the date fixed for redemption to
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each Registered Owner of the Bond or Bonds to be redeemed at the
address shown on the Bond Register or at such other address as is
furnished in writing by such Registered Owner to the Bond Regis-
trar. Neither the failure to mail such redemption notice, nor
any defect in any notice so mailed, to any particular Registered
Owner of a Bond, shall affect the sufficiency of such notice with
respect to other Registered Owners. Notice having been properly
given, failure of' a Registered Owner of a Bond to receive such
notice shall not be deemed to invalidate, limit or delay the
effect of the notice or redemption action described in the
• notice. Such notice may be waived in writing by a Registered
Owner of a Bond entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such
notice. Notice of redemption having been given as aforesaid, the
Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price
therein specified, and from and after such date (unless the City
shall default in the payment of the redemption price) such Bonds
or portions of Bonds shall cease to bear interest. Upon surren-
der of such Bonds for redemption in accordance with said notice,
such Bonds shall be paid by the Bond Registrar at the redemption
price. The procedure for the payment of interest due on or prior
to the redemption date shall be as herein provided for payment of
• interest otherwise due. Upon surrender for any partial redemp-
tion of any Bond, there shall be prepared for the Registered
MM
•
Owner a, new Bond or Bonds of like tenor, of authorized denomina-
tions, of the same maturity, and bearing the same rate of
interest in the amount of the unpaid principal.
This Bond may be transferred or exchanged, but only in
the manner, subject to the limitations, and upon payment of the
charges as set forth in the Ordinance. Upon surrender for trans-
fer or exchange of this Bond at the principalcorporate trust
office of the Bond Registrar in the City of Chicago, Illinois,
duly endorsed by or accompanied by a written instrument or
instruments of transfer or exchange in form satisfactory to the
Bond Registrar and duly executed by the Registered Owner or an
• attorney for such owner duly authorized in writing, the City
shall execute and the Bond Registrar shall authenticate, date and
deliver in the name of the transferee or transferees or, in the
case of an exchange, the Registered Owner, a new fully registered
Bond or Bonds of like tenor, of the same maturity, bearing the
same interest rate, of authorized denominations, for a like
aggregate principal amount.
The Bond Registrar shall not be required to transfer or
exchange any Bond during the period from the close of business on
the 15th day of the calendar month preceding an interest payment
date on the Bonds to the opening of business on such interest
payment date or during the period of 15 days preceding the giving
of notice of redemption of Bonds or to transfer or exchange any
• Bond all or a portion of which has been called for redemption.
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•
The City- and. the Bond Registrar may deem and treat the
Registered Owner hereof as the absolute owner hereof for the pur-
pose of receiving payment of or on account of principal hereof,
premium, if any, hereon and interest due hereon and for all other
purposes, and neither the City nor. the Bond Registrar shall be
affected by any notice -to the contrary..
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers
unto
• (Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and
•
appoint
as attorney to transfer the said Bond on the books kept for
registration thereof with full power of substitution in the
premises.
Dated:
Signature Guaranteed:
NOTICE: The signature to this assignment must correspond with
the name of the Registered Owner as it appears upon the
face of the within Bond in every particular,. without
alteration or enlargement or any change whatever.
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Section 11. Bonds Limited Obligations
The Bonds shall be payable solely from the Net Revenues
as derived from the operation of the System, and shall not con-
stitute an indebtedness of the City within the meaning of any
constitutional or statutory limitation.
Section 12. Fiscal Year and Deposit of Revenues
Upon the issuance of any of the Bonds the entire
System, for the purpose of this ordinance and while any of the
Bonds remain outstanding, shall be operated on a fiscal year
basis commencing the first day of January and ending the last day
• of December of each succeeding year; provided, however, that the
City reserves the right to adopt a new Fiscal Year for the System
at such time as the outstanding Water Revenue Bonds, dated May 1,
1964, dated December 1, 1972 (Series 1972) and dated May 1, 1974
(Series 1973) have been paid in full, or provision made for their
payment, both as to principal and interest.
From and after the delivery of any of the Bonds, all of
the Revenues shall be set aside as collected and be deposited
into a bank account separate and apart from all other City
accounts and heretofore designated, accounted for and known as
the "Water Revenue Fund of the City of Evanston." The fund shall
constitute a trust fund for the sole purpose of carrying out the
covenants, terms and conditions of this ordinance, and of cne
Currently Outstanding Bond Ordinances. Said ordinances did
establish, continue and maintain such fund; sufficient revenues
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•
derived from the operation of the System were thereby and are
hereby required to be deposited to be used only in paying the
cost of operation and maintenance of the System, providing an
adequate depreciation fund, and paying the principal of and
interest on all bonds of the City which are payable by their
terms only from the Revenues, and for the creation of and
maintenance of the several respective accounts hereinafter named.
Section 13. Accounts and Flow of Funds
The functions and. obligations of the Water Fund shall
be continued and maintained by the- maintenance in the Water Fund
of separate special accounts designated severally the "Operation
• and Maintenance Account," "Depreciation Account," "Bond and
Interest Account" and "Bond Reserve Account". In addition, there
have been created and established and are hereby maintained
separate special accounts designated the "Depreciation,
Improvement and Extension Account" and "Surplus Revenue
Account". Into said accounts, there shall be set aside on the
first business day of each month without any further official
action or direction all moneys held in the Water Fund of the
City, in accordance with the following priority:
A. Operation and Maintenance Account
There shall be credited to the Operation and Main-
tenance F-_count on the first business day of each month an amount
sufficient to pay the reasonable Operation and Maintenance Costs
• of the System for the next succeeding month.
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Money in this account shall be used to pay Operation
and Maintenance Costs. Money in this account shall not be used
to pay the costs of extraordinary or unusual repairs and
maintenance, capital expenditures, or to provide for any transfer
in lieu of corporate taxes, or general supervision or admin-
istrative charges by the City.
B. Depreciation Account
The Depreciation Fund heretofore created shall continue
to be: accumulated at an annual rate of $25,000 while any of the
Water Revenue Bonds of the City, dated May 1, 1964 (which herein-
after may- be referred to as the "1964 Bonds") remain outstanding
and. unpaid, or until provision has been made for the payment
thereof, as to both principal and interest. Said fund shall be
used from time to time only for the purpose of meeting any
emergency or expense in the replacement of any portion of the
System.
Said Depreciation Fund shall be maintained in the
amount of $300,000, and no further transfers into the
Depreciation Fund shall be required while any of the 1964 Bonds
are outstanding, as aforesaid, except that any moneys used from
the Depreciation Fund shall be restored from the first moneys
available for that purpose. At such time as all of the 1964
Bonds shall have been paid, or until provision has been made for
the payment thereof, as to both principal and interest, any
• amount remaining in said Depreciation Account shall be
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n
transferred to the Depreciation, Improvement and Extension
Account as hereinafter established and maintained pursuant to
paragraph (E) of this section,. and said Depreciation Account
shall thereafter be discontinued.
C. Bond and Interest Account
All amounts required to be set aside for the purpose of
paying principal of and interest on the 1964 Bonds as provided in
Section 6 of the ordinance authorizing the issuance of said
bonds, shall be set. aside monthly as directed.
Beginning on the first day of the month following
delivery of the Bonds herein authorized, there next shall be
• credited to the Bond and Interest Account an amount at least
equal to one -fifth of the interest becoming due on all
Outstanding Bonds authorized and issued pursuant to the Currently
Outstanding Bond Ordinances and this ordinance (except said
ordinance for the 1964 Bonds, which shall have been provided for
under the first paragraph hereof), and including the interest to
become due on all Parity Bonds herein authorized, until there is
on hand in said account the full amount of the interest payable
on the next succeeding interest payment date; and there shall be
credited to the Bond and Interest Account on the first business
day of each month an amount at least equal to one -tenth of the
principal of all Outstanding Bonds authorized and issued pursuant
to the Currently Outstanding Bond Ordinances (except said ordi-
nance for the 1964 Bonds, which shall have been provided for
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•
under the first paragraph hereof) and this ordinance, and includ-
ing all Parity Bonds herein authorized, until there is on hand in
said account the full amount of the principal becoming due (or
subject to mandatory redemption) on the next succeeding principal
payment date.
Credits to the Bond and Interest Account may be
suspended at such time as there shall be sufficient money in said
account to pay principal and interest due on the next payment
date, but such credits shall again be resumed at the time of such
payment date.
All moneys in the Bond and Interest Account shall be
used only for the purpose of paying interest on and principal of
Outstanding Bonds. Any and all sums received from the purchaser
of the Bonds as accrued interest thereon to the date of delivery
shall be credited to said Bond and Interest Account and applied
to pay interest on the Bonds.
Funds to pay all of said principal and interest,
together with the fees and expenses of any paying agent or bond
registrar for Outstanding Bonds (including the Bond Registrar
hereunder), shall be remitted to any such paying agent or bond
registrar at least fifteen (15) days prior to the date of payment
of such principal or interest; provided that all fees therefor
shall be paid from the Operation and Maintenance Account.
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•
D. Bond Reserve Account
Beginning on the first business day of the month
following the delivery of the Bonds, the sum of $12,150 is to be
credited each month. to the interest reserve fund heretofore
created and established and now designated as the Bond Reserve
Account, and to be accumulated at an annual rate of $145,800 each
year until all of the Bonds shall have been paid or otherwise are
no longer deemed Outstanding.
Moneys in said Bond Reserve Account shall be retained
and used only for the payment of principal of or interest on
Outstanding Bonds, at any time when there are insufficient. funds
• available in the Bond and Interest Account to pay such principal
of or interest on such bonds as the same become due; provided,
however, that whenever the balance in said account is equal to
Maximum Annual Debt Service, any surplus over and above said
maximum amount shall be transferred to any other account within
the Water Fund as directed by the City Council.
E. Depreciation, Improvement and Extension Account
There shall be credited to the Depreciation, Improve-
ment and Extension Account, after distribution has been made to
accounts enumerated in paragraphs (A) to (D), inclusive, the sum
of at least $3,000 each month while any of the 1964 Bonds are
outstanding; provided, however, that at such time as the 1964
Bonds have been paid in full, both principal and interest, or
• provision made for their payment, the amount remaining in the
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Depreciation Account shall be transferred to the Depreciation,
Improvement and Extension Account as provided in paragraph (B) of
this section.
Beginning. on the first day of the month following the
payment of or provision for payment of the 1964 Bonds, as afore-
said, there shall be credited to the Depreciation, Improvement
and Extension Account on the first business day of each month the
sum of $5,100, or such greater amount as may be designated from
time to time by the City Council.
The moneys in said account shall be used first to
• provide an adequate allowance for depreciation as shall be
determined from time to time by the City Council, and may be used
from time to time to pay for any extraordinary maintenance,
repairs and necessary replacements, or if not so needed then for
improvement or extension of the System. Said funds shall be used
at any time to pay principal of or interest on any Outstanding
Bonds whenever there are no other funds available to pay the
•
same.
From and after such time as said account aggregates the
sum of $400,000, any sums in excess thereof may be transferred to
any other account within the Water Fund of the City, at the
discretion of the City Council.
All prcceeds received from the disposition of any
property of the System shall be credited to this account.
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•
F. Surplus Revenue Account
All revenues remaining in the Water Fund, after all
credits have been made to the respective accounts herein provided
for, shall at the end of each month be credited to the Surplus
Revenue Account, and the amount so credited shall be held and
used for the following purposes:
1. For making up any deficiency necessary to credit accounts
enumerated in paragraphs (A) to (E), inclusive, with the
required amounts therefor for each month as hereinabove
provided.
2. For paying principal of and interest on any junior lien
• bonds (subordinate issue).
3. For transfer to any other account of the fund, or at the
discretion of the City Council for any lawful corporate
purpose, including, but not limited to, any extraordinary,
costs of operation and maintenance of the System not
otherwise provided for, or any authorized payments in lieu
of taxes, general supervision and administrative charges by
the City.
4. For any lawful corporate purpose, in the discretion of the
City Council.
G. Investments
Moneys on deposit in any of the accounts abo a may by
resolution of the City Council be invested from time to time in
• direct obligations of the United States Government, or
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•
investments fully guaranteed by the United States Government,
maturing not later than the earliest date on which it is
estimated the moneys in said account will be needed, but in no
event later than five (5) years from the date of such
investment. Such securities shall be sold from time to time
without further authority of the City Council as moneys may be
needed for the purpose for which said accounts have been
created. All accrued interest on any moneys so invested shall
first be credited to the Water Fund of said. City and then
credited to the account for which the investment was made.
All uninvested. money on hand shall be deposited in
• banks selected as depositories by the City Council from time to
time so as to be available when needed. Such bank accounts shall
be separate from all other City accounts, provided that all money
in the Water Fund may be deposited in a single bank account,
except money in accounts enumerated in paragraphs (C) and (D)
thereof, which shall be deposited in one or more separate bank
accounts.
Section 14. General Covenants
The City covenants and agrees with the holders and
registered owners of the Outstanding Bonds as follows:
A. The City will maintain the System and all
improvements and extensions thereto in good repair and working
order, will operate the same efficiently and faithfully, and will
• punctually perform all duties with respect thereto required by
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0
the Constitution and laws of the State of Illinois and the United
States..
B. The City will establish and maintain at all times
reasonable fees, charges and rates for all users of the service
of the System, and provide for the collection thereof and for the
segregation and application of the Revenues in the manner
provided by this ordinance,_ and sufficient at all times to pay
the reasonable Operation and Maintenance Costs, to pay the
principal of and interest on all revenue bonds of the City which
by their terms are payable from the Revenues, and to provide for
the creation and maintenance of the respective accounts as
• provided in Section 13 of this ordinance, and from time to time
make all needful and. proper repairs, replacements, additions and
betterments thereto, so that the System may at all times be
operated properly and advantageously, and when any equipment or
facility shall have been worn out, destroyed or otherwise is
insufficient for proper use, it shall be promptly replaced or
repaired so that the value and efficiency of the System shall be
at all times fully maintained.
The City covenants that the City will establish and
maintain fees, charges and rates that will be adequate to produce
Net Revenues in an amount not less than 125% of the principal and
interest requirements for all Outstanding Bonds for the then
current Fiscal Year.
•
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Charges for service rendered the City shall be made
against said City, and payment for the same from the corporate
funds shall be made monthly into the Water Fund, as Revenues, in
the same manner as other Revenues are required to be deposited.
No free -service of the. System shall be furnished to any
person, firm, organization or corporation, public or private, and
to the extent permitted by law it is expressly herein covenanted
and agreed that the City will not grant a franchise, for the
operation of any other or competing waterworks system within the
City, and that the Bonds herein authorized to be executed shall
constitute legally enforceable liens on the Revenues.
• C.. The City will establish such rules and regulations
for the control and operation of the System necessary for the
efficient and economical operation thereof, and rates and charges
shall be fixed and revised from time to time as may be necessary
to produce funds sufficient for all purposes herein provided.
D. The City will make and keep proper books and
accounts (separate and apart from all other records and accounts
of said City), in which complete entries shall be made of all
transactions relating to the System, and hereby covenants that
within ninety (90) days following the close of each Fiscal Year
it will cause the books and accounts of the System to be audited
annually by independent certified public accountants showing the
receipts and disbursements on account of the System, and that
• said audit will be available for inspection by the registered
owners of any of the Bonds.
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Each such audit, in addition to whatever matters may be
thought proper by the accountants to be included therein, shall,
without limiting the generality of the foregoing, include the
following:
1.. A statement in detail of the income and expendi-
tures of the system for such Fiscal Year, and including credits
to the various accounts provided herein.
2. A balance sheet as of the end of such Fiscal Year.
3. The accountant's comment regarding the manner in
which the City has carried out the accounting requirements of
this ordinance, and the accountant's recommendations for any
• changes or improvements in the operation of the System.
4. A list of all insurance policies in force at the
end of the fiscal year, setting out as to each policy the amount
of the policy, the risks covered, the name of the insurer, and
the expiration date of the policy.
5. The number of metered water customers and the
number of unmetered water customers at the end of the year, and
the quantity of water pumped and billed.
All expenses incurred in the making of the audit
required by this section shall be regarded and paid as an
Operation and Maintenance Cost. In addition, statements of
revenues and expenditures of- the System shall be furnished to the
City Council at least quarterly during each Fiscal Year. Copies
• of the audits and statements shall be supplied to any registered
owner of a Bond upon request.
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E. The City will not sell, lease, loan, mortgage, or
in any manner dispose of or encumber the System (subject to the
reserved right of the City to issue additional obligations as
provided in Section 15 hereof); provided, however, that this
covenant shall not. prevent said City from disposing of any
property which in the judgment of the City Council is no longer
useful or profitable in the operation of the System, nor essen-
tial to the continued operation of the System.
The proceeds from the sale of any property shall be
credited to the Depreciation, Improvement and Extension Account.
• F. The provisions of this ordinance shall constitute a
contract between the City and the holders and registered owners
of the Bonds, and after the issuance of the Bonds no changes,
additions or alterations of any kind shall be made hereto, except
as hereinabove provided for amendments hereto. Any holder or
registered owner of a Bond or Bonds issued hereunder may proceed
by civil action, mandamus, or other proceeding to enforce or
compel performance by the officials of said City of all duties
required by law, the Act and this ordinance, including the making
and collecting of sufficient charges and rates for the water
services supplied by the System, and the application of the
income and revenue therefrom.
G. The City will 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
-44-
the generality of the foregoing,fire, windstorm insurance,
public liability, and all additional insurance covering such
risks as shall be recommended by a competent consulting engineer
employed for the purpose of making such recommendation, and all
moneys received for loss: under such insurance policies shall be.
deposited in the Depreciation, Improvement and Extension Account,
and used in making good the loss or damage in respect of which
they were paid, either by repairing the property damaged or
replacing the property destroyed, and provision for making good
such loss or damage shall be made within ninety (90) days from
• date of loss. The payment of premiums for all insurance policies
required under the provisions of this covenant shall be con-
sidered an operation and maintenance expense. The proceeds
derived from any and all policies for public liability shall be
credited to the Operation and Maintenance Account and used in
paying the claims on account of which they were received.
H. The City covenants that it will at all times retain
a Bond Registrar with respect to the Bonds, that it will maintain
at the designated office of such Bond Registrar a place or places
where Bonds may be presented for payment or registration of
transfer or exchange, and that it will require that the Bond
Registrar properly maintain the Bond Register and perform the
other duties and obligations imposed upon it by this ordinance in
• a manner consistent with the standards, customs and practices of
the municipal securities industry.
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•
The Bond Registrar shall signify its acceptance of the
duties and obligations imposed upon it by this ordinance by
executing the certificate of authentication on any Bond, and by
such execution the Bond Registrar shall be deemed to have
certified to the City that it has all requisite power to accept
and has accepted such duties and obligations. The Bond Registrar
is the agent of the City and shall not be liable in connection
with the performance of its duties except for its own negligence
or willful. -wrongdoing. The Bond Registrar shall, however, be
responsible for any representation in its certificate of
authentication on the Bonds.
The City may remove the Bond Registrar at any time. In
case atany time the Bond Registrar shall resign, shall be
removed, shall become incapable of acting, or shall be adjudged
as bankrupt or insolvent, or if a, receiver, liquidator or con-
servator of the Bond Registrar, or of the property thereof, shall
be appointed, or if any public officer shall take charge or
control of the Bond Registrar, or of the property or affairs
thereof, the City covenants and agrees that it will thereupon
appoint a successor Bond Registrar. The City shall mail notice
of any such appointment made by it to each registered owner of
any Bond within twenty (20) days after such appointment. Any
Bond Registrar appointed under the provisions of this Section
shall be a bank, trust company or national banking association.
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•
Section 15. Parity Bonds.
It is hereby covenanted and agreed that, while any of
the Bonds issued hereunder are outstanding, the City will not
issue -any other bonds or obligations of any kind or nature having
a pledge on the Revenues which is prior to the lien on the
Revenues of the Bonds herein authorized.
The City further covenants and agrees as follows:
A.. While any of the 1964 Bonds remain outstanding,
Parity Bonds shall not be issued unless the Revenues for the
Fiscal Year then next preceding were sufficient to pay all
• Operation and Maintenance Costs, provide the required deprecia-
tion fund and interest reserve fund, and leave a balance equal to
at least one hundred ten per cent (110%) of the aggregate of -
1. The principal and interest requirements for such year on all
then Outstanding Bonds;
2. One year's interest on the total issue of Parity Bonds then
proposed to be issued; and
3. An amount of principal of such Parity Bonds computed by
dividing the total amount of such issue by the number of
years to the final maturity date of such issue.
B. At such time as all of the 1964 Bonds, or provision
made for their payment, both as to principal and interest, and
from time to time as shall be found necessary and for the best
• interests of the City, Parity Bonds may be issued for the purpose
-47-
of constructing or acquiring improvements, replacements and
extensions of the System, or for the purpose of refunding any of
the Outstanding Bonds of the City, or for any combination of such
purposes, but only provided the the City shall have complied with
the following requirements:
1. The amounts required to have been credited to the
respective accounts enumerated in paragraphs (A) to (E), inclu-
sive, of Section 13 of this ordinance, up to the date of autho-
rization of said Parity Bonds shall have been credited to said
respective accounts; and
2. The Net Revenues of the System for the Fiscal Year
• then nextpreceding, or the adjusted Net Revenues of the System
for the next preceding Fiscal Year, if such revenues are adjusted
as herein provided, have been equal to not less than one hundred
thirty per cent (130%) of Maximum Annual Debt Service on
(a) all then Outstanding Bonds; and
(b) on the additional Parity Bonds then proposed to be
issued.
Net Revenues shall be evidenced by an audit of an independent
certified public accountant.
In the event there shall have been a change in the
rates of the System from the rates in effect for the immediately
preceding Fiscal Year, which change is in effect at the time of
the issuance of any such Parity Bonds, then the Net Revenues as
• provided in this subparagraph (2) shall be adjusted to reflect
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the Net Revenues of the System for the immediately preceding
Fiscal Year as they would have been had said then existing rates
been in effect during all of said year. Any such adjusted Net
Revenues shallbe evidenced by the certificate of a certified
public accountant or an independent consulting engineer employed
for that purpose, which certificate shall be approved by the City
Council prior to the issuance of the Parity Bonds and filed with
the. City Clerk upon its approval.
C. Notwithstanding the foregoing provisions, the City
reserves the further right to issue Parity Bonds to refund any of
• Outstanding Bonds, provided they are issued to refund such bonds
due within_ three (3) months of the date of refunding and for the
payment of which no other funds are or will be available at the.
maturity thereof.
D. Parity Bonds shall be on an equal basis in all
respects with the Bonds herein authorized, shall share ratably
and equally in the Revenues, and shall mature as to principal on
January 1 and as to interest on January 1 and July 1.
Section 16. Sale of Bonds
As soon as may be after this ordinance becomes effec-
tive, the Bonds shall be sold as a whole or in part, and from
time to time by the City Council in such manner as they may
hereafter determine. The City Council shall, upon making the
award of sale of the Bonds to such bidder, adopt a resolution
• confirming the sale and fixing the interest rate or rates on such
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Bonds in accordance with the terms of the acceptable bid. Such
Bonds shall thereafter be prepared bearing interest at such
interest rate or rates in accordance with the resolution
confirming sale thereof, and after the execution of said Bonds in
the manner as herein provided, the same shall then be delivered
to the purchaser thereof upon receipt of the purchase price
therefor.
Section 17. Application of Proceeds to Funds
The Bond proceeds, exclusive of accrued interest, shall
be placed in a bank or banks designated as depositories by the
• City Council in a separate account to be designated the
"Waterworks Construction Fund Account (1988) of the City of
Evanston." The accrued interest shall be credited to the Bond
and Interest Account herein maintained and applied to pay first
interest due on the Bonds. The money in said Construction Fund
Account shall be held for the benefit of the City for the
purposes herein provided, and for the benefit of the registered
owners of the Bonds hereby authorized as their interests may
appear, and said funds shall be withdrawn from the depository
from time to time by the Comptroller of the City only upon
submission to him of the following:
(a) An order signed by the Mayor and City Clerk, or
such other officers that may from time to time be by law
authorized to sign and countersign orders on the Comptroller
• of the City, stating specifically the purpose for which the
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order is issued and indicating that the payment for which the
order is issued has been approved by the City Council; and
(b) For each order for withdrawal of funds by the
Comptroller for payment to a contractor or contractors for
work done in connection with the construction of the Project
shall also be accompanied by a certificate executed by the
engineer in charge of the construction, stating the nature of
the work completed and the amount due and payable thereon.
The moneys deposited in the Construction Fund Account
• may be temporarily invested from time to time in direct or fully
guaranteed obligations of the United States Government having a
maturity date not later than the date or dates on which such
funds will be needed. All payments received as principal or
interest derived from such investment shall be credited to the
Construction Fund Account.
Within sixty (60) days after completion of the Project
in accordance with the plans and specifications therefor, as
approved by the City Council, and after all costs have been paid
in connection with the construction thereof, the engineers shall
certify to the City Council the fact that the work has been
completed according to said plans and specifications, and upon
approval of the completion of the work based upon the engineer's
certificate by the City Council, and after all costs have been
• paid, the Mayor, City Clerk and Engineer shall execute a certifi-
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sate and file it with the depository certifying that the work has
been completed in accordance with the plans and specifications,
that all costs have been paid, and if at that time any funds
remain in said Construction Fund Account the same shall be trans-
mitted by said depository to the Comptroller of said City, who
shall credit said funds to the Depreciation, Improvement and
Extension Account.
The costs. of engineering, legal and financing services,
the costs of surveys, designs, soundings, borings, rights -of -way,
and all other necessary and incidental expenses, shall be deemed
• items of cost of construction of the Project.
Said fund may also be closed by action of the
Comptroller alone, but only upon its being fully depleted, and
notwithstanding that the Project has not then been completed.
Section 18. Not Private Activity Bonds
None of the Bonds is a "private activity bond" as
defined in Section. 141(a) of the Code. In support of such
conclusion, the City certifies, represents and covenants as
follows:
A. None of the proceeds of the Bonds is to be used and
neither the Project nor the System is to be used, directly or
indirectly, in any trade or business carried on by any person
other than a state or local governmental unit.
B. No direct or indirect payments are to be made on
• any Bond with respect to any private business use by any person
other than a state or local governmental unit.
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C. None of the proceeds of the Bonds are to be used,
directly or indirectly, to make or finance loans to persons other
than a state or local governmental unit.
D. No user of the Project or the System other than the
City or another local government unit will use the same on any
basis other than the same basis asthe general public; and no
person other than the City will be a user of the Project or the
System as a result of (i) ownership or (ii) actual or beneficial
use pursuant to a. lease, a management or incentive payment
contract, or (iii) any other similar arrangement including a take
or pay contract for use of service from the System (other than
• from another local government unit).
Section 19. General Arbitrage Covenants
The City represents and certifies as follows with
respect to the Bonds:
A. The City has not been notified of any disqualifi-
cation or proposed disqualification of it by the Commissioner of
the Internal Revenue Service as a bond issuer which may certify
bond issues under Treasury Regulations Section 1.103-13
(a)(2)(ii) (1979).
B. Moneys on deposit in any fund or account in connec-
tion with the Bonds, whether or not such moneys were derived from
the proceeds of the sale of the Bonds or from any other source,
will not be used in a manner which will cause the Bonds to be
• "arbitrage bonds" within the meaning of Code Section 148 and any
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lawful regulations promulgated thereunder, including Treasury
Regulations Sections 1.103-13, 1.103-14 and 1.103-15 (1979) as
the same presently exist or may from time to time hereafter be
amended, supplemented or revised.
Section 20. Arbitrage Rebate Exemption
The City recognizes that the provisions of Section 148
of the Code require a rebate to the United States in certain
circumstances. An exemption to rebate requirements appears at
Section 148(f)(4)(C) of. the Code and applies to the Bonds. No
rebate is required or planned by the City. In support of this
conclusion, the City covenants, represents and certifies as
• follows:
A. The City is a governmental unit with general taxing
powers.
B. No Bond in this issue, is a "private activity bond"
as defined in Section 141(a) of the Code.
C. All the net proceeds of the Bonds are to be used
for the local government activities of the City described in this
Ordinance (or of a governmental unit the jurisdiction of which is
entirely within the jurisdiction of the City). .
D. The aggregate face amount of all Tax-exempt bonds
(other than "private activity bonds" as defined in the Code)
issued by the City (and all subordinate entities thereof) during
calendar year 1988 is not reasonably expected to exceed
• $5,000,000.
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Section 21. Registered Form
The City recognizes that Section 149 of the Code
requires the Bonds to be issued and to remain in fully registered
form in order for the interest thereon to be and remain• tax-
exempt. In this connection, the City agrees that it will not
take any action to permit the Bonds to be issued in, or converted
into, bearer or coupon form.
Section 22. Further Tax Covenants
The City agrees to comply with all provisions of the
Code which, if not complied with by the City, would cause the
interest on the Bonds not to be Tax-exempt. In furtherance of
the foregoing provisions, but without limiting their generality,
the City agrees: (a) through its officers, to make such further
specific covenants, representations as shall be truthful, and
assurances as may be necessary or advisable; (b) to comply with
all representations, covenants and assurances contained in certi-
ficates or agreements as may be prepared by counsel approving the
Bonds; (c) to consult with such counsel and to comply with such
advice as may be given; (d) to pay to the United States, if
necessary, such sums of money representing required rebates of
excess arbitrage profits relating to the Bonds; (e) to file such
forms, statements and supporting documents as may be required and
in a timely manner; and ;_`) if deemed necessary or advisable by
its officers, to employ and pay fiscal agents, financial advis-
ors, attorneys and other persons to assist the City in such
compliance.
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Section 23. Opinion of Counsel Exception
The City reserves the right to use or invest moneys in
connection with the Bonds or operate the System in any manner,
notwithstanding the covenants in Sections 18 to 22 herein,
provided it shall first have received an opinion from an attorney
or a firm of attorneys of nationally recognized standing as
municipal bond counsel to the effect that such use or investment
of such moneys or such operation of the System as contemplated
will not result in loss of or otherwise adversely affect the Tax-
exempt status of interest on the Bonds.
• Section 24.. Qualified Tax-exempt Obligations
The City recognizes the provisions of Section 265(b)(3)
of the Code which provide that a "qualified tax-exempt obliga-
tion" as therein defined may be treated by certain financial
institutions as if it were acquired on August 7,. 1986, for
certain purposes. The City hereby designates each of the Bonds
as may be from time to time outstanding for purposes of Section
265(b)(3) of the Code as a "qualified tax-exempt obligation" as
provided therein.
In support of such designation, the City certifies,
represents and covenants as follows:
A. None of the Bonds is a "private activity bond" as
defined in Section 141(a) of the Code.
B. Including the Bonds, the City (including any enti-
ties subordinate thereto) has not and does not reasonably expect
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to issue in excess of $10,000,000 in "qualified tax-exempt obli-
gations" during calendar year 1988.
C. Including the Bonds, not more than $10,000,000 of
obligations issued by the City (including any entities subor-
dinate thereto) during the calendar year 1988 have been to date
or will be designated by the City for purposes of said Section
265(b)(3).
Section 25. Provisions a Contract
The provisionsof this ordinance shall constitute a
contract between the City and the holders and registered owners
• of the Outstanding Bonds; and no changes, additions, or altera-
tions of any kind shall be made hereto, except as herein
provided, so long as there are any Outstanding Bonds.
Section 26. Defeasance
Bonds which are no longer- Outstanding Bonds as defined
in this Ordinance shall cease to have any lien on or right to
receive or be paid from Revenues and shall no longer have the
benefits of any covenant for the holders or registered owners of
Outstanding Bonds as set forth herein.
Section.27. Severability
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
provisions of this ordinance.
•
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Section 28. Superseder
All ordinances, resolutions or orders, or parts there-
of, in conflict with the provisions of this ordinance are to the
extent of such conflict hereby superseded.
Section 29.. Publication
This ordinance within ten (10) days after its passage
by the City Council shall be published once in pamphlet form by
authority of the City Council, and shall thereupon be in full
force and.effect immediately.
PASSED: �, 1988.
• VOTE
AYES: Aldermen Rudv. Drummer. Davis. Bradv. Korshak. Raden. Morton.
Summers, Wold, Nelson, Bleveans, Collens, Rainey, Larson,
Warshaw. Felten
NAYS: None
ABSENT: Juliar and Paden
APPROVED: 141, 1988
0
Mayor
Attest:
I 1
City Clerk
proved as o form:
t ,
� 1
Corporion Counsel
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