HomeMy WebLinkAboutORDINANCES-1980-025-O-8025-0-80
AN ORDINANCE authorizing and providing for the
• issue of $5,000,000 'dater Revenue Bonds, Series
1980, 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
its present municipally -owned waterworks system be improved and
extended, including -the following: installation of approximately
4.9 miles of water mains, two new raw water pumps, reconditioning
two settling basins, repairing clear well and filter roof, upgrad-
ing electrical system, replacing generator, replacing heating
boilers and instrumentation, together with all necessary pipes,
valves, fittings, connections, ancillary facilities and appurten-
ances, costs of engineering, legal and financing services, and
contingencies, and the total estimated cost thereof 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 neces-
sary for the City to borrow the principal sum of $5,000,000* 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, approved May 29, 1961,
as amended, and its powers as a home rule unit, said City is au-
arized 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, 1953, authorized and
issued $1,450,000 Water Revenue Bonds, dated July 1, 1955, of
which bonds in the amount of $350,000 are presently outstanding,
and 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 $3,060,000 are presently outstanding,
and pursuant to Ordinance No. 76-0-72, adopted on November 6, 1972,
authorized and issued Water Revenue Bonds in the aggregate prin-
cipal amount of $2,000,000, being Series 1972 in the amount of
$600,000, of which bonds in the amount of $250,000 are presently
outstanding, and Series 1973 in the amount of $1,400,000, of which
0 ds in the amount of $1,225,000 are presently outstanding, which
said outstanding bonds aggregate the principal amount of $418850,000;
and
WHEREAS, pursuant to the provisions of said ordinances
adopted by the City Council of said City of Evanston authorizing
the 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 opera-
tion 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
•
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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
waterworks system of said City, as described in the preambles
06reof, 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
improvements and extensions hereby proposed, to be forty (40) years
from the date of the Water Revenue Bonds, Series 1980, herein au-
thorized to be issued.
Section 3. For the purpose of paying the cost of the
necessary improvements and extensions to the water filtration
facilities of the City of Evanston, as referred to and described
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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 1980,"
which bonds shall be dated May 1, 1980, be of the denomination of
$5,000 each, be.numbered from 1 to 1000, inclusive, to bear inter-
est at such rate or rates to be determined at the time of sale,
such interest to be payable semiannually on the first day of Janu-
ary and July in each year, beginning on January 1, 1981, and to
mature serially on January 1 of the years and in the amounts as
follows (subject to the right of prior redemption hereinafter
recited):
Principal
Amount
Maturity
$ 50,000
1985
to 1987, inclusive
100,000
1988
to 1992, inclusive
150,000
1993
200,000
1994
and 1995
300,000
1996
and 1997
350,000
1998
to 2005, inclusive
400,000
•
2006
provided, however, that of said bonds, bonds numbered 161 to 1000,
inclusive, maturing on January 1 of each of the years 1994 to 2006,
inclusive, shall be subject to redemption and payment prior to
their maturity at the option of the City, in whole on any date, or
in part on any interest payment date, on or after January 1, 1993,
at par and accrued interest to the date of redemption, plus a
premium of one-half of one per cent of par for'each subsequent in-
terest payment date up to and including the maturity date of the
bond, provided, however, that such premium shall not exceed five
per cent. If less than all of said bonds are called for redemption
at any time, they shall be called in the inverse order of their ma-
turity and by lot within a maturity if less than a whole maturity
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is redeemed. 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 published and of general circula-
tion 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 the date of redemption coincides with an interest
payment date. When said redemption date is a date other than an
interest payment date, an additional notice shall be so published
once not less than fifteen (15) nor more than thirty (30) days
prior to the date of 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 principal 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
0rincipal 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 1980, 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.
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
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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 acknowl-
edged or approved. Registration of any of such bonds shall not
affect the negotiability of the coupons thereto attached, but such
coupons shall be transferable by delivery merely.
Section 5. Said bonds and coupons attached thereto shall
be in substantially the following form:
E
(Form of Bond)
• UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF COOK
Number
CITY OF EVANSTON
WATER REVENUE BOND, SERIES 1980
$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 January 1, 1981, upon presentation and surrender of the
interest coupons hereto attached as they severally 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 pay-
able solely from revenues derived from the operation of the water-
works system of said City and not otherwise, and is issued under au-
thority of Division 129 of Article 11 of the Illinois Municipal Code,
approved May 29, 1961, and all laws amendatory thereof and supple-
mentary thereto, for the purpose of paying the cost of constructing
improvements and extensions to the waterworks system of said City,
and this bond does not constitute an indebtedness of said City with-
in any constitutional or statutory limitation.
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This bond is one of an authorized issue of $5,000,000, num-
41ered 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 161 to
1000, inclusive, maturing on January 1 of each of the years 1994 to
2006, inclusive, are redeemable prior to maturity at the option of
the City, in whole on any date, or in part on any interest payment
date, on or after January 1, 1993, at par and accrued interest to the
date of redemption, plus a premium of one-half of one per cent of par
for each subsequent interest payment date up to and including the
maturity date of the bond, provided, however, that such premium shall
not exceed five per cent. 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 maturity if less than a whole ma-
turity is redeemed. Notice of the redemption of any or all of said.
bonds which by their terms shall have become subject to redemption
Wall 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 published and of general circulation 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 the date of redemp-
tion coincides with an interest payment date. When said redemption
date is a date other than an interest payment date, an additional no-
tice shall be so published once not less than fifteen (15) nor more
than thirty (30) days prior to the date of redemption. When any or
all of said bonds which by their terms have become subject to redemp-
tion and payment prior to their maturity shall have been called for
redemption, and payment made or provided for, interest thereon shall
cease from and after the date so specified.
• v 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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0
it forms a part, the revenues from the operation of the waterworks
• system of said City shall be deposited in a separate fund designated
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 waterworks 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 (2J3rds) 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 modifica-
tion or amendment may become effective until all outstanding 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 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 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
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bond or bonds over any other bond or bonds, nor reduce the percent-
age of the holders of outstanding bonds required for the written
is 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, provide
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 under which this
bond and the series of which it forms a part were issued.
This bond may be registered as to principal only in the
name of the holder on the books of the City Comptroller, such regis-
tration 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,
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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 May, 1980.
Attest:
City Clerk, City of Evanston, Mayor, City of Evanston,
Cook County, Illinois. Cook County, Illinois.
(SEAL]
•
(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 1 ,
being interest then due on its Water Revenue Bond, Series 1980,
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•
a
•
dated May 1, 1980, Number
Attest:
City Clerk, City of Evanston,
Cook County, Illinois.
Mayor, City of Evanston,
Cook County, Illinois.
*(The clause within the parenthesis appearing in the form of in-
terest coupon shall be inserted only in all coupons attached to
Series 1980 bonds numbered 161 to 1000, inclusive, representing
interest maturing after the optional date of the bond to which
it is attached.)
(Form for Registration)
Date of
Registration In Whose Name Registered City Comptroller
Section 6. Upon the issuance of any of the Water Revenue
Bonds, Series 1980, 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 commenc-
ing 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 outstand-
ing 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 payment, both principal and interest.
From and after the delivery of any bonds issued under the
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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 carrying out the covenants, terms and conditions of this
ordinance, and of the ordinances adopted by the City Council author-
izing the issuance of Water Revenue Bonds now outstanding. Said
ordinances authorizing the outstanding bonds did establish, continue
and maintain a separate fund designated as the "Water Fund of the
City of Evanston," into which 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
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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.
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, neces-
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 out-
standing 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 and interest of the
outstanding bonds dated July 1, 1955 and May 1,
1964, as provided in Section 6 of the respective
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 Ordinance No. 76-0-72 and this or-
dinance, 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 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 Ordinance
No. 76-0-72 and this ordinance, and including 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 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
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.
Funds to pay all of said principal and inter-
est, together with the fees and expenses of the
paying agent for said bonds, shall be remitted to
the paying agent at least fifteen (15) days prior
to the date of payment of said principal or inter-
est; provided that all paying agency fees shall be
paid from the Operation and Maintenance Account.
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(d) Bond Reserve Account:
The interest reserve fund created and estab-
lished by the ordinance authorizing the issue of
bonds dated May 1, 1964 shall continue to be
accumulated at an annual rate of $40,000 per year
until all of the bonds herein authorized have been
paid or provision shall have been made for their
payment, and shall be credited to the Bond Re-
serve Account.
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
Revenue Bonds of said City, on all bonds author-
ized 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 prin-
cipal of or interest on such bonds as the same
become due; provided, however, that whenever the
balance in said account is equal to the maximum
principal and interest requirements on all of said
outstanding bonds and parity bonds for any succeed-
ing fiscal year, any surplus over and above said
maximum amount, in the discretion of the City
Council, may be transferred to any other account
within the Water Revenue Fund of said City, or may
be used for calling and.redeeming bonds prior to
their maturity, or for purchasing on the open mar-
ket at not more than par and accrued interest any
of the bonds which are payable from the revenues
of the waterworks system. No bonds shall be pur-
chased within the sixty (60) days immediately
prior to the next succeeding redemption date of
any bonds, and all such bonds purchased or re-
deemed shall be cancelled.
(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 follow-
ing 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.
t
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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.
(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 necessary
to credit accounts (a) to (e), inclusive,
with the required amounts therefor for
each month as hereinabove provided.
(2) For paying principal of or 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 extra-
ordinary costs of operation and mainten-
ance of the system not otherwise provided
for, or any authorized payments in lieu
of taxes, general supervision and admin-
istrative charges by the City.
(4) For any lawful corporate purpose, in the
discretion of the City Council.
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(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 guar-
anteed 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 Revenue 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
Revenue Fund may be deposited in a single bank ac-
count, 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
lag as the bonds or any of them remain outstanding and unpaid,
either as to principal or interest:
•
(a) The City will maintain said waterworks system
and all improvements and extensions thereto in good
repair and working order, will operate the same
efficiently and faithfully, and will punctually per-
form all duties with respect thereto 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 segregation
and application of the revenues of said system in
the manner provided by this ordinance, and suffi-
cient at all times to pay the reasonable costs of
operation and maintenance, to pay the interest of
and principal 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 pro-
vided in Section 7 of this ordinance, and from time
to time make all needful and proper repairs, re-
placements, additions and betterments thereto, so
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that the system may at all times be operated properly
• and advantageously, and when any equipment or facil-
ity 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.
The City covenants that the City will establish
and maintain fees, charges and rates that will be
adequate to produce net revenues, as hereinafter de-
fined 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 rev-
enues derived from the operation of the waterworks
system, in -the same manner as other revenues are re-
quired 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 said
City will not grant a franchise for the operation of
any other or competing waterworks system within the
City of Evanston, and that the bonds herein authorized
to be executed 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 pur-
chase, 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 operation
thereof, and rates and charges shall be fixed and
revised from time to time as may be necessary to pro-
duce funds sufficient for all purposes herein pro-
vided until all of the bonds authorized by this or-
dinance 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 certified public
accountants showing the receipts and disbursements on
account of said system, and that said audit will be
available for inspection by the holders 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 in-
cluded therein, shall, without limiting the general-
ity of the foregoing, include the following:
(1) A statement in detail of the income and
expenditures of the system for such fis-
cal year, and including credits to the
various accounts provided herein.
(2) A balance sheet as of the end of such fis-
cal 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.
is
(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 obligations as 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 disposing
of any property which in the judgment of the City
Council is no longer useful or profitable in the op-
eration of said system, nor essential to the con-
tinued operation of said system.
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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 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 mak-
ing such recommendation, and all. -moneys received
for loss under such insurance policies shall be de-
posited in the Depreciation, Improvement and Exten-
sion 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 cov-
enant shall be considered an operation and mainten-
ance expense.
The proceeds derived from any and all policies
for public liability shall be credited to the Opera-
tion 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
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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, additional
revenue bonds to share ratably and equally in the
income derived from the operation of said water-
works system shall not be issued unless the rev-
enues derived from the waterworks system for the
fiscal year then next preceding were sufficient to
pay all costs of operation and maintenance, provide
the required depreciation 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 the bonds then outstand-
ing;
(2) One year's interest on the total issue of
such additional bonds then proposed to be
issued; and
(3) An amount of principal of such additional
bonds computed by dividing the total
amount of such issue by the number 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 com-
plied with the following requirements:
(1) The amounts required to have been credited
to the respective accounts (a) to -(e), in-
clusive, of Section 7 of this ordinance,
up to the date of authorization of said
additional bonds shall have been credited
to said respective accounts; and
(2) The net revenues of the system for the fis-
cal 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
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principal and interest requirements for
• any succeeding fiscal year during the
life of the then outstanding bonds, of -
(i) all bonds then outstanding pay-
able from the revenues to be
derived from the operation 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 rev-
enues of the system less the actual costs
of operation and maintenance before making
provision for depreciation or other ac-
counts 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 De-
cember 31 immediately preceding such Jan-
uary 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 addi-
tional bonds, then the net revenues as
provided in this subparagraph (2) shall be
adjusted to reflect 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 rev-
enues shall be 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
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, provided
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 ma-
turity thereof.
(d) Any additional bonds issued as parity bonds shall
be on an equal basis in all respects with the bonds here-
in 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.
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Section 10. At such time as all of the Water Revenue Bonds
• of said City dated July 1, 1935 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 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
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
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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 said bonds to such bidder, adopt a
resolution confirming the sale, fixing the interest rate or rates
on such bonds in accordance with the terms of the acceptable bid,
and designating 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 accord-
ance 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 "Construction Fund Account of the City
•
of Evanston".. The accrued interest shall be credited to the Bond
and Interest Account herein established. The funds in said Con-
struction Fund Account shall be held for the benefit of said City
for the purposes herein provided, and for the benefit 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
-25-
(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
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.
Within sixty (60) days after completion of the work in
accordance with the plans and specification therefor, as approved
by the City Council, and after all costs have been paid in connec-
tion with the construction thereof, the engineers shall certify to
the City Council the fact that the work has been completed accord-
0 ing 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 certificate 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 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 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.
-26-
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
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
Evanston Review, being a newspaper published in and having a general
•
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circulation in the City of Evanston, Illinois, and shall be in full
• force and effect, as provided by law.
PASSED: April 8 1980.
AYES: Aldermen Gerson, Borah, Papangelis, Burden, Wyandt,
Summers, Alexander, Korshak, Lauterbach, Neems, Heaston,
Laycock, and Hoover.
NAYS: NONE
ABSENT: Aldermen Allen, Nelson, Fitzsimons, Barr, and Romain
Attest:
i!.-,tc�l.Q- /4 '
City Clerk
•
APPROVED:
l
!' Ma
RWS:rd -28-
i
W
STATE OF ILLINOIS )
• ) SS
COUNTY OF COOK )
•
RWS:rd
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
1980, 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 , 1980, and as adopted by the City
Council of the City of Evanston at its legally convened meeting held
on 1980, and as approved by the Mayor on the
day of 1980, 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 said City of Evanston, Cook
County, Illinois, this day of , 1980.
[CITY SEAL]
City Clerk