HomeMy WebLinkAboutORDINANCES-1982-099-O-8299=0-32'
AN ORDINANCE authorizing and providing for the
issue of $5,000,000 Water Revenue Bonds, Series
1982, of the City of Evanston, Cook County,
Illinois, for the purpose of defraying the cost
of improving and extending the present water-
works 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.
WHEREAS, it is deemed advisable, necessary and for the
best interest of the City of Evanston, Cook County, Illinois „that
improvements and extensions to its munic.ipally-owned waterworks
system be constructed and installed, including the following:
providing additional funds for the distribution main improvement
program initiated in 1980, installing a new instrumentation control
• system, and providing funds to pay part of the cost of the storage
tank replacement program, 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 is the sum of $5,000,000,
all in accordance with the preliminary report and estimate of cost
prepared by Alvord, Burdick & Howson, 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
WHEREAS, the City does not have funds available for the
purpose of paying the cost of said project, and it will be necessary
for the City to borrow the principal sum of $5,000,000 and in evi-
dence thereof issue its revenue bonds therefor; and
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WHEREAS, pursuant to the provisions of Division 129 of
Article II of the Illinois Municipal Code, approved May 29, 1961, as
amended, and its powers as a home rule unit, said 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 has heretofore, pursuant to
Ordinance No. 38-0-55, adopted on November 7, 1955, authorized and
issued $1,450,000 Water Revenue Bonds, dated.July 1, 1955, of which
bonds in the amount of $120,000 are presently outstanding, and pur-
suant 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 $2,780,000 are presently outstanding, and pursuant to
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Ordinance No.
76-0-.72, adopted on
November
6, 1972, authorized and
issued Water
Revenue Bonds in the
aggregate
principalamount of
$2,000,000, being Series 1972 in the amount of $600,000, of which
bonds in the amount of $150,000 are presently outstanding, and Series
1973 in the amount of $1,400,000, of which bonds in the amount of
$1,120,000 are presently outstanding, and pursuant to Ordinance No.
25-0-80, adopted on April 8, 1980, authorized and issued $5,000,000
Water Revenue Bonds, Series 1980, dated May 1, 1980, all of which
are presently outstanding, which said outstanding bonds aggregate
the principal amount of,$9,170,000; and
WHEREAS, pursuant to the provisions of said ordinances
adopted by the City Council of said City of Evanston authorizing the
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outstanding Water Revenue Bonds of said City, while said Water Revenue .
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 of said City unless the revenues for the fiscal
year then next preceding were sufficient to comply with the specific
restrictions set forth in each of said ordinances; and
WHEREAS, this City Council has caused an audit of the
earnings of the waterworks system to be made for the last preceding
fiscal year, and this City Council has heretofore determined and
does hereby determine that the earnings of the waterworks system
for the last preceding fiscal year comply with the covenants and
restrictions provided for in and by each of the ordinances author—
izing the
outstanding Water Revenue
Bonds, and that
the earnings
for such
last preceding fiscal year
are sufficient
to permit the
issuance of the $5,000,000 additional Water Revenue Bonds herein
provided for, to share ratably and equally in the income derived
from the operation of the waterworks system with the outstanding
Water Revenue Bonds of said City:
NOW, THEREFORE, Be It Ordained by the City Council of the
City of Evanston, Cook County, Illinois, as follows:
Section 1. The City Council has caused.an estimate to be
made of the cost of making improvements and extensions to the water—
works system of said City, as described in .the preambles hereof, and
all in accordance with the preliminary report therefor heretofore
approved and now on file in the office of the City Clerk for public
inspection, and has heretofore determined and does hereby determine
and estimate that the total estimated cost of such improvements and
extensions is the sum of $5,000,000.'
Section 2. The City Council does hereby determine the
period of usefulness of said waterworks system, including the im-
provements and extensions hereby proposed, to be forty (40) years
from the date of the Water Revenue Bonds, Series 1982, herein,au-
thorized to be issued.
Section 3. For the purpose of paying the cost of con-
structing and installing.necessary improvements and extensions to
the waterworks system of the City of Evanston, as referred to and
• described hereinabove in the preambles of this ordinance, there
shall be issued revenue bonds of said City in the principal amount
of $5,000,000, each to be designated "Water Revenue Bond, Series
1982," which bonds shall be dated October 1, 1982, be of the de-
nomination of $5,000 each, be numbered from 1 to 1000, inclusive,
to bear interest at such rate or rates to be determined at the time
of sale, such interest to be payable semiannually on the first day
of January and July in each year, beginning on July 1, 1983, and to
mature serially on January 1 of the years and in the amounts as
follows (subject to the right of prior redemption hereinafter re-
cited):
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Serial
Numbers,
Principal
Year of
Both Inclusive
Amount
Maturity
1
to
10
$ 503000
1985
11
to
20
501000
1986
21
to
35
75,000
1987
36
to
50
75,000
1988 .
51
to
65
75,000
1989
66
to
85
1003000.
1990
86
to
110
125,000
1991
ill
to
14o
150,000
1992
141
to
18o
2001000
1993
181
to
220
2003'000
1994
221
to
285
325,000
1995
286
to
36o
375,000
1996
361
to
470
550.1000
1997
471
to
600
650,000
1998
6oi
to'74o
7003000
1999
741
to
900
800,000
2000
901
to
1000
500,000
2001
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provided, however, that of said bonds, bonds numbered 181 to 1000,
inclusive, maturing on January 1 of each of the years 1994 to 2001,
inclusive, shall be subject to redemption and payment prior to
their maturity at the option of the City, in whole or in part on
any interest payment date on or after January 1, 1993, and if less
than all of, said bonds are called for redemption at any time, they
shall be called in the inverse order of their maturity and by lot
within a maturity if less than a whole maturity is redeemed, the
bonds to be redeemed at the redemption prices (being expressed as
a percentage of the principal amount) set forth below, plus accrued
interest to the date fixed for redemption:
Date of Redemption
January 1 and July 1, 1993
January 1 and July 1, 1994
January 1 and July 1, 1995
January 1 and July 1, 1996
January 1 and July 1, 1997
January 1 and July 1, 1998
January 1 and July 1, 1999
January 1 and July 1, 2000
January 1, 2001
Redemption Price
102%
101-3/4%
101-1/2%
101-1/4%
101%
100-3/4%
100-1/2%
100-1/4%
Par
Notice of redemption shall be given by publication of such
notice at least once in The Bond Buyer, published in the City of
New York, New York, or in the event it ceases publication then in
one financial newspaper of general circulation published in the.
City of Chicago, Illinois, or in the City of New York, New York, at
least thirty (30) days prior to the date fixed for redemption. Such
notice of redemption shall designate the date and place of redemption
of said bonds, which shall be at the paying agent to be hereafter
designated, shall designate the serial number and the aggregate prin-
cipal amount of.bonds to be redeemed, and shall indicate that on -the
designated date of redemption said bonds will be redeemed by payment
of the principal thereof and accrued interest thereon, and that from
and after the designated redemption date interest in respect of said
bonds so .called for redemption shall cease.
Section 4. Both principal of and interest on said Water
Revenue Bonds, Series 1982, shall be payable in lawful money of the
United States of America at such bank or trust company as.may here-
after be ,agreed upon between the purchaser of said bonds and the
City Council.
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The facsimile seal of said City shall be printed on each
of said bonds and said bonds shall be signed by the Mayor by his
duly authorized facsimile signature, be attested by the City Clerk,
and the interest coupons attached to said bonds shall be executed
by the facsimile signatures of said Mayor and said City Clerk, and
said officials, by the execution of said bonds, shall adopt as and
for their own proper signatures their respective facsimile signa-
tures appearing on said coupons.
Said bonds, together with interest thereon, shall be pay-
able solely from the revenues derived from the waterworks system
of said City, including all improvements and extensions thereto,
and such bonds shall not in any event constitute an indebtedness
of said City of Evanston within the meaning of any constitutional
•
provision or any constitutional or statutory limitations.
Any of said bonds may be registered as to principal only
at the option of the holder at any time prior to maturity in the
name of the holder on the books of the Comptroller of said City,
such registration to be noted on the reverse side of the bonds by
the Comptroller, and thereafter the principal of such registered
bonds shall be payable only to the registered holder, his legal
representative or assigns. Such registered bonds may be transfer-
able to another registered holder or back to bearer only upon
presentation to the Comptroller with a legal assignment duly
acknowledged or approved. Registration of any of such bonds shall
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not affect the negotiability of the coupons thereto attached, but
such coupons shall be transferable by delivery merely.
Section 5;. µSa d„;bonds, cou.FlonsAKa ta.ched thereto and form
for registration shall be in substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF COOK ,
CITY OF EVANSTON
WATER REVENUE BOND, SERIES 1982
Number
$5,000
KNOW ALL MEN BY THESE PRESENTS, that the City of Evanston,
.Cook County, Illinois, for value received hereby promises to pay to
bearer, or if this bond be registered as to principal, as hereinafter
provided, then to the registered holder hereof, solely from the
Water Revenue Fund of said City of Evanston, as hereinafter mentioned,
and not otherwise, the sum of FIVE THOUSAND DOLLARS ($5,000) on
January 1, , together with interest on such principal sum from
the date hereof until paid at the rate of
per cent per annum, payable semiannually on January 1 and
July 1 in each year, beginning on July. 1, 1983., upon presentation
and surrender of the interest coupons hereto attached as they sev-
erally become due.
Both principal of and interest on this bond are hereby
made payable in lawful money of the United States of America at
This bond and the series of which it forms a part are
payable solely from revenues derived from the operation of the
waterworks system of said City and not otherwise, and are issued
under authority of Division 129 of Article 11 of the Illinois
Municipal Code, approved May 29, 1961, and all laws amendatory
thereof and supplementary thereto, and the home rule powers of the
City, for the purpose of paying the cost of constructing and in-
stalling improvements and extensions to the waterworks system of
said City, and this bond does not constitute an indebtedness of
• said City within any constitutional or statutory limitation.
This bond is one of an authorized issue of $5,000,000,
numbered from 1 to 1000, inclusive, of the denomination of $5,000
each, of like date and tenor except as to maturity, (rate of
interest) and privilege of redemption, and of said bonds, bonds
numbered 181 to 1000, inclusive, maturing on January 1 of each of
the years 1994 to 2001, inclusive, are redeemable prior to maturity
at the option of the:City, in whole or in part on any interest
payment date on or after January 1, 1993; and if less than all of
said bonds are called for redemption at any time, they shall be
called in inverse order of their maturity and by lot within a ma-
turity if less than a whole maturity is redeemed, the bonds to be
•
redeemed at the redemption prices (being expressed as a percentage
of -the principal amount) set forth below, plus accrued interest to
the date fixed for redemption:
Date of Redemption
Redemption Price
January
1
and July
1,
1993
102%
January
1
and July
1,
1994
101-3/4%
January
1
and July
1,
1995
101-1/2%
January
1
and July
1,
1996
101-1/4%
January
1
and July
1,
1997
101%
January
1
and July
1,
1998
100-3/4%
January
1
and July
1,
1999
.100-1/2%
January
1
and July
1,
2000
100-1/4% `
January
1,
2001
Par
Notice
of the
redemption
of any or all of said bonds
which by their
terms shall
have become
subject to redemption shall
be.given by
the
City to
the
holder
thereof by publication at least
•
once in The
Bond
Buyer,
published
in the City of New York, New York,
or in the event it ceases publication then in one financial news-
paper of general circulation published in the City of Chicago,
Illinois, or in the City of New York, New York, at least thirty (30)
days prior to the'date fixed for redemption. When any or all of
said bonds which by their terms have become subject to redemption
and payment prior to their maturity shall have been called for re-
demption, and payment made or provided for, interest thereon shall,
cease from and after the date so specified.
Under said Code and the ordinance adopted pursuant there-
to, authorizing the issuance of this bond and the, series of which
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it forms a part, the revenues from the operation of the waterworks
system of said City shall be deposited in a separate fund desig-
nated as the "Water Revenue Fund of the City of Evanston," which
shall be used only and is hereby pledged for paying the cost of
operation and maintenance of said system, providing an adequate
depreciation fund and paying the principal of and interest on the
bonds of said City that are issued under the authority of said Code
and are payable by their terms only from the revenues of said water-
works system, and in making all payments required to maintain the
accounts created under the terms of the ordinance pursuant to which.
this bond is issued.
The rights and obligations of the City and of the holders
of the bonds may from time
to
time*be
modified
or amended by a sup-
plemental ordinance adopted
by
the
City Council
with the written
consent of the holders of not less than two-thirds (2/3rds) of the
principal amount of all the bonds authorized by this ordinance and
all bonds heretofore issued and hereafter issued on a parity there-
with then outstanding (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 outstand-
ing Water Revenue Bonds of said City dated July 1, 1955 and May 1,
1964 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 ma-
turity of, or date of redemption prior to maturity, or reduce the
interest rate on, or otherwise alter or impair the obligation of
the City to pay the principal of and interest on the bonds herein
authorized at the time, place and at the rate and in the currency
provided therein of any bond herein authorized then outstanding,
without the express consent of the holder of such bond, nor shall
any such modification or amendment permit the creation of a
preference or priority of any bond or bonds over any other bond
or bonds, nor reduce the percentage of the holders of outstanding
bonds required for the written consent to such modification or
amendment.
It is hereby certified and recited that all acts, condi-
tions and things required to be done precedent to and in the issu-
ance 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 in said Water Revenue Fund the revenues
received from the operation of said waterworks system to be applied
in the manner as hereinabove set forth, and said City hereby cov-
enants and agrees that it will fix and maintain rates for the use
and service of said waterworks system, and collect and account for
the revenues from said waterworks system, sufficient at all times
to pay the cost of maintenance and operation of said system, pro-
vide an adequate depreciation fund, and to promptly pay principal
of and interest on all bonds issued by said City which by their
terms are payable solely from the revenues.of said waterworks
system, and to comply with all of the covenants of the ordinance
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under which this bond and the series of, which it forms a part were
issued.
This bond may be registered as to principal only i.n_the
name'of the holder on the books of the City Comptroller, such
registration to be evidenced by notation of said Comptroller, on the
back hereof, after which no transfer hereof shall be valid unless
noted 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 again
be registered as before. The registration of this bond shall not
restrict the negotiability of the coupons by delivery merely.
IN WITNESS WHEREOF, the City of Evanston, Cook County,
Illinois, by its City Council, has caused the facsimile seal of the
City to be printed hereon and this bond to be signed by the Mayor
of said City -by his duly authorized facsimile signature and to be
attested by the City Clerk, and the coupons hereto attached to be.
signed by the facsimile signatures of said Mayor and said City
Clerk, which officials, by the execution of this bond, do adopt as
and for their own proper signatures their respective facsimile
signatures appearing on said coupons, and this bond to be dated as
of the first day of October, 1982.
Attest:
City Clerk, City of Evanston, Mayor, City of Evanston,
Cook County, Illinois. Cook County, Illinois.
[SEAL]
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(Form of Coupon)
Number
On the first day of 19*(unless the bond
to which this coupon is attached has been called for payment prior
to said date as therein provided for and payment made or provided
for), the City of Evanston, Cook County, Illinois, will pay to
bearer out of the Water Revenue Fund of said City
Dollars ($ ) in lawful money of the United States of America,
at ,
in the , being interest then due on its
Wafer Revenue Bond, Series 1982, dated October 1, 1982, Number
Attest:
City Clerk, City of Evanston, Mayor, City of Evanston,
Cook County, Illinois. Cook County, Illinois.
*(The clause within the parentheses appearing in the form of inter-
est coupon shall be inserted only in all coupons attached to
Series 1982 bond's numbered 181 to 1000, inclusive, representing
interest maturing after the optional date of the bond to which it
is attached.)
(Form for Registration)
Date of Signature of
Registration In Whose Name Registered City Comptroller
p -14-
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Section 6. Upon the issuance of any of the Water Revenue
Bonds, Series 1982, herein provided for, the entire municipal water-
works system of said City of Evanston, for the purpose of this or-
dinance and while any of the Water Revenue Bonds heretofore issued
are 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. The City,reserves the right to adopt a new fiscal
year for the waterworks system at such time as the outstanding Water
Revenue Bonds dated July 1, 1955, May 1, 1964, December 1, 1972 and
May 1, 1974 have been paid in full, or provision made for their pay-
ment, both principal and interest.
From and after the delivery of.any bonds issued under the
provisions of this ordinance, all of the gross revenues from any
• source whatsoever derived directly or indirectly from the use and
operation of the waterworks system of said -City, including all future
improvements and extensions thereof, shall be set aside as collected
and be deposited in a bank account separate and apart from all other
City accounts and to be designated and accounted for as a separate
fund designated as the "Water Revenue Fund of the City of Evanston,"
which shall constitute a trust fund for the sole purpose of carry-
ing out the covenants, terms and conditions of this ordinance, and
of the ordinances adopted by the City Council authorizing the issu-
ance of Water Revenue Bonds now outstanding. Said ordinances author-
izing the outstanding bonds did establish, continue and maintain a
separate funddesignated as the "Water Fund of the City of Evanston,"
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into whch sufficient revenues derived from the operation of the
waterworks system were required to be deposited, to be used only
in paying the cost of operation and maintenance of said system,
providing an adequate depreciation fund, and paying the principal
of and interest on all Water Revenue Bonds of said City of Evanston
which are.payable by their terms only from such revenues, and for
the creation of an interest reserve account.
Section 7. The functions and obligations of the Water
Fund of the City of Evanston, heretofore created and established,
shall be continued and maintained by the establishment in the Water
Revenue Fund of separate special accounts designated severally
"Operation and Maintenance Account," "Depreciation Account," "Bond
•
and Interest Account" and "Bond Reserve
Account".
In addition,
there have been created and established
separate
special accounts
designated "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 Revenue
Fund of said City, in accordance with the following priority:
(a) Operation and Maintenance Account:
There shall be credited to the Operation and
Maintenance Account on the first business day of
each month an amount sufficient to pay the reason-
able expenses of operation and maintenance of said
waterworks system for the next succeeding month,
including all of such expenses usual in such a
system, and including one -twelfth of all such ex-
penses computed on an annual basis.
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Money in this account shall be used to pay
all costs reasonably incurred in connection with
the continued operation, use and maintenance of
the system, other than capital improvements, nece;3-
sary to keep the system in efficient and economical
operating condition, including the payment of
premiums for insurance hereinafter required to.be
carried, and generally for all expenses (except
depreciation) which under good accounting practice
are properly chargeable to and are reasonable and
necessary to the efficient maintenance and opera-
tion of the system. Money in this account shall
not be used to pay the costs of.extraordinary or
unusual repairs and maintenance, capital expend-
itures, 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
said City dated July 1, 1955 and May 1, 1964 remain
outstanding and unpaid. Said fund shall be used
from time to time only for the purpose of meeting
any emergency or expense in the replacement of any
of said waterworks properties.
At such time as all of the outstanding bonds
dated July 1, 1955 shall have been retired, said
depreciation fund may be reduced to $300,000, and
no further transfers into the depreciation fund
shall be required while the bonds dated May 1, 1964
are outstanding, 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 outstanding bonds dated May 1,
1964 shall have been retired, any amount remaining
in said Depreciation Account shall.be 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.discon-
tinued..
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(c) Bond and Interest Account:
All amounts required to be set aside.for the
purpose of paying principal of and interest on
the outstanding bonds dated July 1, 1955 and May
1, 1964, as provided in Section 6 of the respec-
tive ordinances authorizing the issuance of said
bonds, shall be set aside monthly as directed.
In addition, 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 Ordinances No. 76-0-72, No. 25-0-80
and this ordinance, and including the interest
to become due on all bonds hereafter issued and
on a parity with the bonds herein authorized,
until there is on hand in said account the full
amount of the interest payable on the next suc-
ceeding 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 pur-
suant to Ordinances No. 76-0-72, No. 25-0-80 and
this ordinance, and including all bonds hereafter
issued and on a parity with the bonds herein au-
thorized, until there is on hand in said account
the full amount of the principal becoming due on
the next succeeding principal maturity date:
Credits to the Bond and Interest Account may
be suspended in any fiscal year at such time as
there shall be sufficient money in said account
to pay principal and interest due on the, next pay-
ment date, but such credits shall again be resumed
at the beginning of the new fiscal year.
All moneys in said Bond and Interest Account
shall be used only for the purpose of paying in-
terest and principal on outstanding bonds, the
bonds hereby authorized, and including such bonds
as may hereafter be issued and on a parity with
the bonds herein authorized. Any and all sums re-
ceived from the purchaser of the bonds as accrued
interest thereon to the date of delivery shall be
credited to said Bond and Interest Account.
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Funds to pay all of said principal and in-
terest, together with the fees and expenses of
the paying agent for said bonds, shall be re-
mitted to the paying agent at least fifteen (15)
days prior to the date of payment of said prin-
cipal or interest; provided that all paying
agency fees shall be paid from the Operation
and Maintenance Account.
(d) Bond Reserve Account:
Beginning on the first business day of the
month following the delivery of the bonds herein
authorized, the sum of $12,150 is to be credited
each month to the interest reserve fund hereto-
fore 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 herein authorized have been paid or
provision shall have been made for their payment.
Moneys in said Bond Reserve Account shall'be
retained and used only for the payment of prin-
cipal of or interest on all outstanding Water Rev-
enue Bonds of said City, on all bonds authorized
• pursuant to this ordinance,'and including such
bonds as may hereafter be issued and on a parity
with the bonds herein authorized, at any time when
there are insufficient funds available in the Bond
and Interest Account to pay such principal of or
interest on such bonds as the same become due; pro-
vided, however, that whenever the balance in said
account is equal to the maximum principal and in-
terest requirements on all of said outstanding bonds
and parity bonds for any succeeding fiscal year,
any surplus over and above said maximum amount, in
the _discretion of the City Council, may be trans-
ferred to any other account within the Water Rev-
enue Fund of said City, or may be used fo.r calling
and redeeming bonds prior to their maturity, or for
purchasing on the open market at not more than par
and accrued interest any of the bonds which are pay-
able from the revenues of the waterworks system.
No bonds shall be purchased within the sixty (60)
days immediately prior to the next succeeding re-
demption date of any bonds, and all such bonds pur-
chased or redeemed shall be cancelled.
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(e) Depreciation, Improvement and Extension Account:
There shall be credited to the Depreciation,
Improvement and Extension Account, after distribu-
tion has been made to accounts (a) to (d), inclu-
sive, the sum of at least $3,000 each month while
any of the Water Revenue Bonds of said City dated
July 1, 1955 and May 1, 1964 are outstanding. At
such time as said outstanding bonds have been paid
in full, both principal and interest, the amount
remaining in the 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 fol-
lowing.the payment of said outstanding bonds, 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 payable from
the waterworks system whenever there are no other
funds available to pay the same; provided, however,
that from and after such time as said account aggre-
gates the sum of $400,000, any sums in excess there-
of may be transferred to any other account within
the Water Revenue Fund of said City, at the discre-
tion.of the City Council.
All proceeds received from the disposition of
any property of the waterworks system shall be
credited to this account, and may be used to pay
the cost of improvements or extensions to the sys-
tem remaining, or transferred to the Bond Reserve
Account and used for calling and redeeming bonds
prior to their maturity, or for purchasing on the
open market at not more than par and accrued inter-
est any of the bonds which are payable from the
revenues of the waterworks system..
• -20-
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•
(f) Surplus Revenue Account:
All revenues remaining in the Water Revenue
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 neces-
sary to credit accounts (a) to (e),
inclusive, with the required amounts
therefor for each month as herein -
above 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 opera-
tion 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) Moneys remaining in any of the accounts above
may by resolution of the City Council be invested
from time to time in direct obligations of the
United States Government, or investments fully
guaranteed by the United States Government, matur-
ing 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 Revenue Fund of said City and then credited
to the account for which the investment was made.
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•
All uninvested money on hand shall be de-
posited in banks selected as depositories by the
City Council from time to time so as to be avail-
able when needed. Such bank accounts shall be
separate from all other City accounts, provided
that all money in the Water Revenue Fund may be.
deposited in a single _bank account, except money
in accounts (c) and (d) thereof, which shall be
deposited in one or more separate bank accounts.
Section 8. The City of Evanston covenants and agrees with
the holders of said bonds and coupons hereby authorized that, so long
as the bonds or any of them remain outstanding and unpaid, either as
to principal or interest:
(a). The City will maintain said waterworks sys-
tem 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 there-
to required by the Constitution and laws of. the
State of Illinois.
(b) The City will establish and maintain at all
times reasonable.fees, charges and rates for all
users of the service of said system, and provide
for the collection thereof and for the segrega-
tion and application of the revenues of said sys-
tem in the manner provided by this ordinance, and
sufficient at all times to pay the reasonable
costs of operation and maintenance, to pay the
principal of and interest on all revenue bonds of
said City which by their terms are payable from
the revenues of said system, and to provide for
the creation and maintenance of the respective
accounts as provided in Section 7 of this ordi-
nance, 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 said
system shall be at all times fully maintained.
• e
-22-
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. 1 1
'The City covenants that the City will esta-
blish and maintain fees, charges and rates that
will be adequate to produce net revenues, as
hereinafter defined in Section 9(b), in an amount
not less than 125% of the principal and interest
requirements for the then current fiscal year. .
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 Revenue Fund created by
this ordinance, as revenues derived from the op-
eration of the waterworks system, in the same
manner as other revenues are required to be de-
posited.
No free service of the system shall be fur-
nished to any person, firm, organization or cor-
poration, public or private, and to the extent
permitted by law it is expressly herein covenanted
and agreed that said City will not grant a fran=
chise for the operation of any other or competing
waterworks system within the City of Evanston,
and that the bonds herein authorized to be ex-
ecuted shall constitute legally enforceable liens
on the revenues of the waterworks system of said
City, including all further extensions, additions
and improvements thereto, whether acquired through
purchase, contract or otherwise.
(c) The City will establish such rules and regula-
tions for the control and operation of said system
necessary for the efficient and economical opera-
tion thereof, and rates and charges shall be fixed
and revised from time to time as may benecessary
to produce funds sufficient for all purposes here-
in provided until all of the bonds authorized by
this ordinance have been paid in full, both as to
principal and interest.
(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 said system, and hereby covenants that within
ninety (90) days following the close of each fiscal
year it will cause the books and accounts of said
system to be audited annually by independent cer-
tified public accountants showing the receipts and
—23—
0
disbursements on account of said system, and that
said audit will be available for inspection by the
holders of any of the bonds.
Each such audit, in addition to whatever
matters may be thought proper by the accountants to
be included therein, shall, without limiting the
generality of the foregoing, include the following:
(1.) A statement in detail of the income and
expenditures 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 or-
dinance, and the accountant's recommenda-
tions 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.
All expenses incurred in the making of the audit
required by this section shall be regarded and paid
as an operation and maintenance expense, and it is
further covenanted and agreed that a copy of each such
audit shall be furnished upon completion to the orig-
inal purchaser of the bonds herein authorized, and a
summary thereof shall be furnished to any bondholder
upon request. In addition, statements of revenues and
expenditures of the system shall be furnished to the
City Council at least quarterly during each fiscal
year, and a copy of such statement shall be furnished
to the original purchaser of the bonds herein author-
ized, and shall also be furnished to any bondholder
` upon request. -
9
(e) The City will not sell, lease, loan, mortgage,
or in any manner dispose of or encumber said system
(subject to the reserved right of said City to
.issue additional obligationsas provided in Section
9 hereof), until all of the bonds herein authorized
shall be paid in full, both principal and interest,
or unless and until provision shall have been made
for the payment thereof; provided, however, that
this covenant shall not prevent said City from dis-
posing of any property which in the judgment of the
City Council is no longer useful or profitable in
the operation of said system, nor essential to the
continued operation of said system.
The proceeds from the sale of any property
shall be credited to the Depreciation, Improve-
ment and Extension Account.
(f) The provisions of this ordinance shall consti-
tute a contract between the City and the holders
of the bonds authorized to be issued, and after the
issuance of said bonds no changes, additions or,
alterations of any kind shall be made hereto, ex-
cept as hereinafter provided in Section 10, until
all of said bonds and the interest thereon shall
have been paid in full, or unless and until provi-
sion shall have been made for the payment thereof.
Any holder of a bond or bonds, or any of the
coupons of any bond or bonds, issued hereunder, may
proceed by civil action, mandamus, or other proceed-
ing to enforce or compel performance by the officials
of said City of all duties required by law and this
ordinance, including the making and collecting of
sufficient charges and rates for the water services
supplied by said system, and the application of the
income and revenue therefrom.
(g) The City will carry insurance on said system
of the kinds and in the amounts which are usually
carried by..private parties operating similar prop-
erties, including, without limiting 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 Ex-
tension Account, and used in making good the loss
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•
•
or damage in respect of which they were paid,
either by repairing the property damaged or re-
placing 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 considered an operation and
maintenance expense.
The proceeds derived from any and all pol-
icies 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.
Section 9. 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 of the waterworks system which is prior to the
• lien on such revenues of the bonds herein authorized.
(a) It is further covenanted and agreed that,
while any of the Water Revenue Bonds dated July
1', 1955 and May 1, 1964 remain outstanding, addi-
tional revenue bonds to share ratably and equally
in the income derived from the operation of said
waterworks system shall not be issued unless the
revenues derived from the waterworks system for
the fiscal year then next preceding were suffi-
cient to pay all costs of operation and mainten-
ance, provide the required depreciation fund and
interest re -serve fund, and leave a balance equal
to at least one hundred ten per cent (110%) of
the aggregate of -
(1) The principal and interest require-
ments for such year on the bonds then
outstanding;
(2) One year's interest on the total issue
of such additional bonds then proposed
to be issued; and
8
• -26-
•
(3) An amount of principal of such addi-
tional bonds computed by dividing the
total amount of such issue by the num-
ber of years to the final maturity date
of such additional bond issue.
(b) The City reserves the right to issue at such.
time as all of said outstanding bonds dated July 1,
1955 and May 1, 1964 have been paid in full, and
from time to time as shall be found necessary and
,for the best interest of said City, additional bonds
on a parity with the bonds authorized herein for the
purpose of constructing or,acquiring improvements,
replacements and extensions of the system, or for the
.purpose of refunding any of the Water Revenue Bonds
of the City, or for any combination of such purposes,
but only provided the City shall have complied with
the following requirements:
(1) The amounts required to have been
credited to the respective accounts (a)
to (e), inclusive, of Section 7 of this
ordinance, up'to the date of authoriza-
tion of said additional bonds shall have
been credited to said respective accounts;
and
(2) The net revenues of the system for the
fiscal year then next preceding, or the
adjusted net revenues of the system for
the next preceding fiscal year, if such
revenues are adjusted as herein provided,
have been equal'to not less than one
hundred thirty per cent (130%) of the
maximum combined principal and interest
requirements for any succeeding fiscal
year during the life of the then out-
standing bonds, of -
(i) all bonds then outstanding
payable from the revenues
to be derived from the op-
eration of the system, and
(ii) on the additional revenue
bonds then proposed to be
issued.
Net revenues for the purpose of this sub-
paragraph (2) shall mean the gross revenues
9
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•
40
of the system less the actual costs of op-
eration and maintenance before making pro-
vision for depreciation or other accounts
as required by this ordinance for such
fiscal year or years, and shall be evidenced
by an audit of an independent certified
public accountant. Principal and interest
requirements shall include principal and
interest due January 1 as a requirement of
the fiscal year ending December 31 imme-
diately preceding such January maturities.
In the event there shall have been a change
in the rates of the system from the rates in
effect for the immediately preceding fiscal
year, which change is'in effect at the time
of the issuance of any such additional bonds,
then the net revenues as provided in this
subparagraph (2) shall be adjusted to reflect
the net revenues.of the system for the imme-
diately 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 shall be evidenced by
the certificate of a certified public account-
ant or an independent consulting engineer
employed for that purpose, which certificate
shall be approved by the City Council prior
to issuance of the additional bonds and filed
with the City Clerk upon its approval.
(c) Notwithstanding the foregoing provisions, the City
reserves the further right to issue bonds to refund any
of these bonds., or bonds on a parity therewith, pro-
vided they are issued to refund 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) Any additional bonds issued as parity bonds shall
be on an equal basis in all respects with the bonds
herein authorized, shall share ratably and equally in
the revenues of said system, and shall mature as to
principal on January 1 and as to interest on January 1
and July 1.
IMM
•
Section 10. At such time as all of the Water Revenue Bonds
of said City dated July 1, 1955 and May 1, 1964 have been paid in
full, both as to principal and interest, or provision made for the
payment thereof, the rights and obligations of the City and of the
holders 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 of not less than two-thirds (2/3rds)
of the principal amount of all of the bonds authorized by this or-
dinance, and all .bonds heretofore issued and hereafter issued on a
parity therewith, then outstanding (excluding any of said bonds owned
by or under the control of the City); provided, however, that no
such modification or amendment shall extend or change the maturity
of or date of redemption prior to maturity, or'reduce the interest
• rate on, or otherwise alter or impair the obligation of the City to
pay the principal of and interest on the bonds herein authorized,
at the time, place, rate, and in the currency provided therein, of
any bond herein authorized then outstanding, without the express
consent of the holder of such bond, nor shall any such modification
or amendment permit the creation of a preference or priority of any
bond or bonds over any other bond or bonds, nor reduce the percent-
age I of the holders of outstanding bonds required for the written
consent of such modification or amendment. Each such consent must
be accompanied by.proof of ownership of the bonds for which consent
is.given, which proof must be in a form approved by the City Council,
and each such consent and proof of ownership must be on file with
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•
the City Clerk prior to the adoption of such modifying or amendatory
ordinance.
Section 11. As soon as may be after this ordinance becomes
effective, the bonds herein authorized 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 mak-
ing the award of sale of said bonds to such bidder, adopt a resolu-
tion confirming the sale, fixing the interest rate or rates op such
bonds in accordance with the terms of the acceptable bid, and desig--
nating the bank or trust company at which the bonds and interest
coupons will be payable. 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 12. The proceeds of sale of the bonds authorized
herein, 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
(1982) of the City of Evanston". The accrued interest shall be
credited to the Bond and Interest Account herein established. The
funds in said Construction Fund Account shall be held for the benefit
of said City for the purposes herein provided, and for the benefit
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•
of the holder or holders of the bonds hereby authorized as their
interest 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 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 order is
issued and indicating that the payment for which
the order is issued has been approved by the ,
City Council; and
(b) Each order for withdrawal of funds by the
Comptroller for payment to a contractor or con—
tractors for work done in connection with the
construction of said 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 guar—
anteed obligations.of the United States Government having a maturity
date not later than the date or dates on which such funds will be
needed.
Within sixty (60) days after completion of the work 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.
• —31—
v p w
•
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 certificate and file it with the
depository certifying that the work has been completed in accord-
ance 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 transmitted 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 servic.es,
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.
Section 13. The proceeds of sale of the bonds will be
used and devoted with due diligence for the purposes as provided
herein., and the City of Evanston hereby covenants and agrees that,
so long as any of the bonds hereby authorized remain outstanding,
and notwithstanding any provisions in this bond ordinance to the
contrary with respect to investment of moneys on deposit in the
various special funds or accounts herein mentioned, whether such
moneys were derived from bond proceeds, from revenues of the sys-
tem, or from any other source, it will make no use of such moneys
which, if such use could have been reasonably expected on the date
• -32-
•
of issue of said bonds would have caused such bonds to be.classi-
fied as "arbitrage bonds" within the meaning of Section 103(c) of
the Internal Revenue Code of 1954, as amended, and regulations
promulgated or proposed thereunder, and in connection with any such
investments it will comply with the requirements of said Section
and Sections 1.103-13, 1.103-14 and 1.103-15 of the Income Tax
Regulations, as the same presently exist or may hereafter from
time to time be amended and supplemented.
Section 14. If any section, paragraph, clause or provi-
sion 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.
• Section 15. All ordinances,,resolutions or orders, or
parts thereof, in conflict with the provisions of this ordinance,
are, to the extent of such conflict, hereby repealed.
Section 16. This ordinance within ten (10) days after
its passage by the City Council shall be published once in The
x
Evanston Review, being a newspaper published in and having a
general circulation in the City of Evanston, Illinois, and shall
be in full force and effect, as provided by law.
PASSED: September 20 , 19 8 2.
A
• -33-
VOTE:
AYES: Aldermen Gerson, Borah, Papangelis, Romain, Burden, Bleveans, Nelson,
Wyandt, Summers, Morton, Korshak, Raden, Lauterbach, Neems, Juliar,
' and Bradford.
NAYS: Alderman Heaston
1 ,
ABSENT: Alderman Barr
Attest:
i;
City* Clerk
APPROVED:
_34_
r
0
STATE OF ILLINOIS )
SS
COUNTY OF COOK )
I, the undersigned,.do hereby certify that I am the duly
qualified and acting Clerk of the City of Evanston, in the County
and State aforesaid, and as such Clerk I am the keeper of the offi-
cial journal, records and files of the City Council of said City.
I .do further certify that the attached and foregoing is
a full, true and correct copy of an ordinance entitled: .
"AN ORDINANCE authorizing and providing for the
issue of $5,000,000 Water. Revenue Bonds, Series
1982, of the City of Evanston, Cook County,
Illinois, for the purpose of defraying the'cost
of improving and extending the present water-
works 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."
as introduced on /3 , 1982, and as adopted by the City
Council of the City of Evanston at its legally convened meeting
held on Ro , 1982, and as approved by the Mayor on the
,,:P7 day o ' 4¢� �,,��,:, 1982, all as appears from the official
records of said City, in my care and custody.
IN WITNESS WHEREOF, I have hereunto affixed my official
signature and the corporate seal of s,� id City of Evanston, Cook
County, Illinois, this o1� i day of Zk_-.,,G 1982.
[CITY SEAL]
City Clerk
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