Ordinance 1969-52 9
M 201ANCE authorising and providing for
the issue or =165,000 Mater Revenue Bonds
of the United City of the Village of
Yorkville, Kendall County, Illinois, for
the purpose of defraying the cost of
constructing necessary iaprovements and
extensions to the waterworks system of said
United City, prescribing all the details
of said bonds, and providing for the
collection, segregation and distribution
of the revenue of the waterworks system
or said United City for the purpose of
paying the cost of the operation and
maintenance thereof, providing an adequate
depreciation fund therefor, and paying
the principal and interest of said
Water Revenue Bonds.
WHEHM, it is deemed advisable, necessary and in the
best interest of the United City of the Village of Yorkville,
Kendall County, Illinois, in order to protect, promote and safe-
guard the public health of the inhabitants of said United City
that the waterworks system of said fasted City be improved and
extended by constructing water soft ertensisoas In Washington Street,
Russbeth 81s"ts Modes Suvets Rolmon Streets Mafn suwt, Mali etreets
sal certain other areas of the City, tossiber with easements and a 3000,000
Fal I as eLsataPA steel metres sterew umk
together with all necessary valves, connections, equipment and
appurtenances incident thereto to make the asnee an integral part
of the existing waterworks system of said United ri.ty, in
accordance with the detailed plans and specifications therefor
heretofore approved by the City Council and now on file for
public inspeetion in the office of the City Clerk; and
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WHEREAS, the total estimated cost of constructing said
improvements and extensions to the waterworks system of said
United City, as prepared by the Engineer for said United City
employed for that purpose, including engineering, legal fees and
contingencies, is the sum of $185,000, and said United City does
not have funds available therefor, and in order to raise the funds
required to construct the said improvements and extensions to the
waterworks system of said United City, it will be necessary for said
United City to borrow the sum of $185,000, and in evidence thereof
Issue its Water Revenue Bonds in the principal amount of $185,000;
and
WHEREAS, pursuant to the provisions of Division 129 of
Article 11 of the Illinois Municipal Code, approved May 29, 1961,
as amended, this United City is authorized to issue Water Revenue
Bonds in an amount sufficient to pay the cost of constructing such
improvements and extensions to the waterworks system of said
United City; and
WHEREAS, the United City of the Village of Yorkville
has heretofore pursuant to an ordinance duly adopted by the City
Council on the day of j ` / , 1969, been
authorized to issue its five per cent Water Refunding Revenue Bonds
in the aggregate amount of $ 85,000, which said bonds are
dated May 1, 1969, mature serially on May 1 of each of the years
1971 to 1981, inclusive; and
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WHEREAS, under the terms of said ordinance authorizing
the issuance of said dater Refunding Revenue Bonds hereinabove
referred to, it was specifically provided that additional water
revenue bonds in ar. amount not exceeding $185,000 ,could be issued
on a parity with and to share ratably and equally in the earnings
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to be derived from the operation of the waterworks system with the
water refunding revenue bonds therein authorised, said additional
water revenue bonds to be issued for the purpose of paying the
cost of constructing necessary improvements and extension& to the
waterworks system of said United City; and
WHZFdM 8 the City Council of the United City of the
Village of Yorkville does hereby find and determine that the proposed
$165,000 Water Revenue Bonds of said United City may be issued
within the terms of the ordinance heretofore adopted on .41,4 `4 ,
1969, and that such additional water revenue bonds herein
authorized in the aggregate amount of $185,000 shall be issued on
a parity and to share ratably and equally in the earnings to be
derived from the operation of the waterworks system with the
water refunding revenue bonds dated May 19 1969, authorized to be
Issued by said United City under the terms of said ordinance
hereinabove referred to:
NOW, THEREFORE, Be It Ordained by the City Council
of the United City of the Villag! of Yorkville, Kendall County,
Illinois, as follows:
Section 1. That the City Council of the united City
of the Village of Yorkville, in the County of Kendall and State
of Illinois, has caused to be made an estimate of the cost of
constructing necessary .improvements and extensions to the existing
waterworks system of said gaited City, such improvements and
extensions to said waterworks system bring described hereinabove
in the preamble of this ordinence, and all in accordance with the
detailed plans and specifications therefor heretofcre approved
by the City Council on t , 14 and now on file in
the office of the City Clerk for public inspection and has heretofore
estimated and does hereby estimate that the cost of the construction
of said improvements and extensions to said waterworks system
is the sus of $1850000.
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etion 2. ?hat the City Council of she United City
of the Village of Yorkville, Kendall County, Illinois, does Hereby
deteraine the period of usefulness of said existing waterworks
system and the improvements and extensions to be made thereto as
herein proposed, to be forty years.
Section . That the United City does not have sufficient
funds available for the purpose of paying the cost of constructing
said improvements and extensions to the existing waterworks system
and for the purpose of paying the cost thereof it will require
the issuance by said United City $185,000 Water Revenue Bonds.
Section 4. That for the purpose of paying the cost of
the construction of the necessary improvements and extensions to
the existing waterworks system of the United City of the Village
of Iorkville, as referred to and described hereinabove in the
preamble of this ordinance, there be .issued revenue bonds of said
Wilted City in the principal amount of $185,000, to be designated
"mater Revenue Bonds", which bonds shall be dated May 1, 1969,
be of the denomination of $5,000 each, be numbered consecutively
/not to exceed
from 1 to 37, inclusive, bear interest at the rate of six per cent
per annum, such interest payable on November, 1, 1969, and semiannually
thereafter on the first days of May and November in each year,
and mature serially as follows:
A $ 5,000 on May 1 , 1981
k $10,000 on May 1 of each of the years 1962 to 1990, and
$15,000 on May 1 of each of the years 1991 to 1996,
a provided, however, that bonds numbered 16 to 37, inclusive; shall
be redeemable prior to their ma,.urity, at par and accrued interest
to the date of redemption, at the option of the United City on
November 1, 1988, or on any interest date thereafter. All of
said bonds redeemable prior to maturity, as above recited, shall :
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be redeematle in the inverse order in which they are numbered; that
Is to say, bond number 37 shall first h" redeemed before bond
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number 36 is redeeme4, and so one, continuing such priority of
redemption as to all of said bonds. Notice in each instance
specifying the number of the bond and date of redemption shall be
given by registered mail to the holder, if known, and as to any
unknown holder such notice shall be published once in a newspaper ::,
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of general daily circulation printel and published in the City of
Ch±cago and shall be filed at the place of payment of principal and
interest. The date of the mailing and the date of publication and
filing of such notice shall be at least third; nays preceding such
redemption date, and when such bonds have beer called for redemption ,
and payment date or provided for, interest shall cease from and
after the date so specified.
Section 5. That both principal of and interest on said
Water Revenue Bonds shall be payable in lawful money of the United
States of America at •,:. !'r ___ __Said bonds shall be signet by
the Mayor, sealed with the corporate seal of said United City and
attested by the City Clerk, and the interest coupons attached to
said fonds 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 signatures appearing on said coupons.
Said bonds, together with interest thereon, shall be
payable solely from the revenues derived from the waterworks
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system of said United City, and such bonds shall not in any event
constitute an indebtedness of said United City within the meaning
of any constitutional provision or any constitutional or
statutory limitation.-
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Any of said bonds may be registered at the option of the
holder as to z
principal only, at any time prior to maturity, in the
name of the holder, on the books of said United City in the office
of the City Treasurer, such registration to be noted on the reverse
side of the bonds by the City Treasurer, and thereafter the principal
of such registered bonds shall be payable only to the registered
holder, his legal representatives or assigns. Such registered
bonds may be transferable to another registered holder or back to
bearer only upon presentation to the City Treasurer with a legal
assignment duly acknowledged or approved. Registration 'of any of
such bonds shall not affect the negotiability of the coupons
thereto attached, and such coupons shall be transferable by
delivery merely.
Section 6. That said bonds and coupons shall be in
substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
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STATE OF ILLINOIS COUNTY OF KENDALL j
UNITED CITY OF THE VILLAGE OF YORMLLE
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� WATER REVENUE BOND
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Number �_ $5,000
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KNOW ALL MEN BY THESE PRESENTS, that the United City
of the Village of Yorkville, in the County of Kendall and State
i of Illinois, for value received, hereby promises to pay to
bearer, or if this bond be registered, as hereinafter provided, 4
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then to the registered holder hereof, solely from the Water Fund
of the United City of the Village of Yorkville, as hereinafter
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mentioned and not otherwise, the sum of FIVE THOUSAND DOLLARS
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(;5,000) on May 1, 19_, and to pay interest on said principal
s= from date hereof until paid at the rate of
R per cent per annum, pAyable November 1, 1969, and
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semiannually thereafter on the first days of PAW and November in
each year, upon presentation and surrender of the annexed interest
coupons as they severally became due.
Both principal and interest of 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 is
payable solely from revenues derived from the waterworks system
of said United City and not otherwise, and is issued under authority
of the provisions of Division 129 of Article 11 of the Illinois
Municipal Code, effective July 1, 1961, and all laws amendatory
thereof and supplementary thereto, for the purpose of defraying
the cost of constructing necessary improvements and extensions
to the waterworks system of said United City, and this bond does
not constitute an indebtedness of said United City within the
meaning of any constitutional provision or any constitutional or
statutory limitation.
Under this Act and the ordinance adopted pursuant
thereto, the entire revenues derived and to be derived from the
operation of the waterworks system of this United City shall
be deposited in a separate fund designated as the "Water Fund"
of said United City, which shall be used only for the purpose of
paying the cost of operation and maintenance of such system,
providing an adequate depreciation fund, and paying the principal
of and interest on the bonds of said United City that are issued
under authority of said Act and are payable by their terms only
from the revenue of said system, and creating and maintaining the
several accounts establiahed by the ordinance autborising the issue
of bonds of which this bond is one.
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It is hereby certified and recited that all acts,
conditions and things required by the Constitution and Statutes
of the State of Illinois to be done[ precedent to and in the issuance
of this bond, have been done and have happened and have beenP` a
performed in regular and due form of law, and that provision has
been made for depositing in said Water Fund the entire revenues
received from the operation of said waterworks system to be applied
In the manner as set forth in the ordinance pursuant to which this
bond is issued; and it is hereby covenanted and agreed that rates
will be charged :or the use and service of such waterworks system
sufficient at all times to pay the cost of the operation and
mIntenance of such system, to provide an adequate depreciation
fund, and to pay the principal of and interest upon all bonds issued
by said Village which are payable solely from the revenues of such
waterworks system, and to create and maintain the several accounts
established by the ordinance authorizing the issue of which
this bond is one,
This bond is one of an authorized issue of One Hundred
Eighty-Five Thousand Dollars (=185,000) , numbered 1 to 37,
inclusive, of the denomination of Five Thousand Dollars (=5,000)
interest rate
each, all of like date, tenor and effect, except as to number, maturity/,c
and redemption privilege and the United City of the Village of
Yorkville reserves the right to call and redeem bonds numbered
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16 to 37, inclusive, in inverse order of their number, at par
and accrued interest to date of redemption, at the option of the
United City on November 1, 1988, or on any interest date there-
after. Notice in each instance specifying the number of the bond
or bonds and date of redemption shall be given by registered sail to
the holder, if known, and as to any unknown holder such notice
shall be published once in s newspaper of general daily p#,roulation
printed and published in the City of Chlaago and shall be filed at
the place of payment of principal and interest. The date of the
mailing and the date of publication and filing of such notice
shall be at least thirty (34) days preceding such redemption date
and when such bonds have been called for redoWtion and payment
made or provided for, interest shall cease from and after tha._date
so specified.
This bond may be registered as to principal in the names
of the holder, on the books of said United City in the office of the
City Treasurer, such registration to be evidenced by notation of
said Treasurer on the back hereof, after which no transfer hereof
shall be valid unless made on said books and similarly noted hereon, j
but it may be discharged from such registration by being transferred
to bearer, after which it shall be transferable by delivery, but it
may be again registered as before. The registration of this bond
shall not restrict the negotiability of the coupons by delivery
merely.
IN WITNESS WHEREOF, said United City of the Village of
Yorkville, Kendall County, Illinois, by its City Council, has
caused this bond to be signed by its Mayor, its corporate seal
to be hereto affixed and attested by the City Clerk, and the `
coupons hereto attached to be signed by the facsimile signatures of
said Mayor and 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, 1969.
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Attest:
City Cleric
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(Form of Coupon)
Number
On the first day cf 19� *(unless
the bond to which this coupon is attached has been called for
prior redemption as therein recited) , t'.ie United City of the Village
of Yorkville, Kendall County, Illinois, will pay to bearer, out
of the Water Fund of said United City,
Dollars ($ j, in lawful
money of the United States of America, at
being interest then due on its mater Revenue Bond, dated May 1,
1969, numbered
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Mayor -- ----___..
City Clerk
*(The clause within the parenthesea shall be inserted on all
coupons attached to bonds numbered 16 to 37, inclusive, representing
interest maturing after the optional date of the bond to which
it is attached. )
(Form of Registration Certificate)
Signature of
Date In Whose Name Registered City Treasurer
Section T. That upon the issuance of any of the Water
Revenue Bonds herein provided for, the entire waterworks system
of said United City for the purpose of this ordinance shall be
operated on a fiscal year basis, commencing the first day of
May and ending the last day of April of each succeeding year, and
from and after the issuance of the bonds herein provided for and so
long as any of the bonds herein authorized to be issued are
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outstanding, the entire revenues derived from the operation of the
entire waterworks system of said United City of the Village of
Yorkville, including all future improvements and extensions thereof,
shall be collected and shall be set aside as collected and be
deposited in a separate fund designated as the "Water Fund" of
the United City of t?,e Village of Yorkville, which shall be kept
apart and segregated from all other moneys of said United City
and shall be used only to establish and maintain the several
accounts specified in Section 8 hereof for the purpose of paying
the cost of operation and maintenance of said system, providing
an adequate depreciation fund and paying the principal of and
interest upon all revenue bonds of said United City that are payable
by their terms only from such revenues and such Water Fund shall
be used only for such purpose and is hereby pledged therefor.
Section 8. That there be and there are hereby created
and established separate accounts of said Water Fund to be
designated severally "Operation and Maintenance Account%
"Depreciation and Contingencies Account", "Bond and Interest
Account", "Bond and Interest Reserve Account" and "Surplus Account"
and "Bond Redemption Account", into which there shall be paid
on the first business day of each month without any further official
action or direction all moneys held in the Water Fund of said
United City, in accordance with the following provisions:
(a) There shall be paid into the Operation and
!Maintenance Account on the first business
day of each month an amount sufficient to
pay the reasonable expense of the operation
and maintenance and repair of said water-
works system for the current month, includ-
ing without limiting the generality of the
foregoing, salaries, wages, taxes, costs of
materials and supplies, insurance, power,
fuel, reasonable repairs and extensions neces-
sary to render efficient service, one-twelfth
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(1/12th) of all costs which ars paid on an
annual basis, and all other necessary inciden-
tal expenses which under recognized accounting
principles are properly chargeable to the opera-
tion and maintenance of the waterworks system.
(b) There shall be paid into the Depreciation and
Contingencies Account on the first business
day of each month after the required payments
have been made into the account above referred
to the sum of $ each month until
and then the sum-_Z77 until such account
aggregates the sum of thereafter no
additional payments sha a made into said
account except that when any money is paid ou :
of such account payments into such account shall
be resumed and continued until such account has
been restored to the aggregate amount of $
The moneys in said Account shall be used to pay
the cost of such replacements and repairs to the
system as may be necessary from time to time for
the continued effective and efficient operation
of the system, except that the funds held in said
Account to the extent necessary to prevent or
remedy a default in the payment of the interest
on or principal of any bonds of said United City
which by their terms are payable from the revenues
of said waterworks system, shall be used for that
purpose and shall be transferred to the Bond and
Interest Account, hereinafter provided for, and
whenever such an amount is withdrawn from said
account and so transferred to said Bond and In-
te:est Account, the amount so transferred shall
be added to the amount to be next and thereafter
paid into said Depreciation and Contingencies Ac-
count until full reimbursement to said Account
has been made. Each expenditure to be made from
the Depreciation and Contingencies Account to pay
the cost of necessary replacements and repairs to
the system, as above provided for, shall be made
only after a consulting engineer employed for
that purpose has certified that such expenditure
is necessary to the continued effective and ef-
ficient operation of the waterworks system of
said United City.
The above specified amount of the monthly payment
to be made into the Depreciation and Contingencies
Account and the amount above specified as the aggre-
gate amount of said Account are inclusive of and
not in addition to the amounts required to be paid
into said Account under the provisions of the Or-
dinance heretofore adopted on C
and authorizing the issuance of th Water Refunding
,. Revenue Bonds of said United City, dated May 1,
1969.
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(c) There shall be paid into the Bond and Interest
Account on the first business day of each month,
after the required payments have been made into
the Accounts above established, an amount equal
to one-sixth of the interest becoming due on the
next succeeding interest payment date on all bonds
then outstanding which are payable from the
revenues of the waVarworks system and there
shall be paid into the Bond and Ynterest Account
on the first business day of each month an amount
equal to one-twelfth of the principal becoming
due on the next succeeding principal maturity date
of all of said bonds.
Funds to pay said principal and interest as pro-
vided by this ordinance, together with sums
sufficient to pay the fees and expenses of the
paying agent herein designated, or its successors,
shall be transmitted to such paying agent from
time to time at least fifteen days prior to the
due date of any principal and interest.
Any and all sums received from the purchaser of
the bonds as accrued interest thereon to date of
delivery shall be paid into said Bond and Interest
Account.
(d) There shall be paid into the Bond and Interest Re-
serve Account on the first business day of each
month after the required payments have been made
into the above accounts, the sum of $ each
month until and then the sum of ; 'r
each month „pn sucFi-account aggregates the sum
of $ r ' , and thereafter no additional pay-
ments ahaIl e made into such account except that
whenever any money is paid out of said account,
payments into said account shall be resumed and
continued until such account has been restored
to the aggregate amount of $ i r -=a ; and the
United City covenants and agrees- to maintain said
Bond and Interest Reserve Account throughout the
life of said bonds authorised to be issued under
the terms of this ordinance, and until such time
as the moneys deposited in said Account are equal
to the aggregate amount of all interest and principal
requirements to maturity of the then outstanding
bonds under the terms of the ordinance heretofore
adopted on ,t " and authorizing
the Issuance o3 a .e naming Revenue Bonds
dated May 1, 1969, and authorized under the
terms of this ordinance and thereafter no further
payments shall be made into said Account and the
moneys in said Account shall be used for the pay-
ment of the principal and interest of the then
balance of the outstanding bonds as the principal
and interest of said bonds mature,
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Moneys in said Bond and Interest Reserve Account
shall be retained and used only for the payment
of principal of or interest on all bonds of said
United City payable from the revenues of the
waterworks system of said United City and the
principal thereof and the interest thereon be-
coming due 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.
The above specified amount of the monthly payment
to be made into the Bond and Interest Reserve
Account and the amount above specified as the
aggregate amount of said Account are inclusive of
and not in addition to the amounts required to be
paid into said Account under the provisions of the
Ordinance heretofore adopted on _ " , <11 , , 1969,
and authorizing the issuance of the Walter Refunding
Revenue Bonds of said United City, dated May 1, 1909.
(e) All moneys remaining in the Water Fund of said
United City, as established by this ordinance,
after all payments into the respective accounts
hereinabove in sub-paragraphs (a) to (d), inclu-
sive, of this section, required to have been made,
shall have been made, including any deficiencies
as hereinabove provided, shall be paid into the
Surplus Account and at the end of each fiscal year
shall be withdrawn from such Surplus Account and
not less than 50% paid into a further account to be
designated Bond Redemption Account and all moneys
so deposited in said Bond Redemption Account shall
be held and used only for the purpose of calling
and redeeming prior to their maturity any outstand-
ing bonds of said United City which by their terms
are payable from the revenues derived from the
operation of the waterworks system of said United
City and as such bonds become redeemable. Such
payments from the Surplus Account into the Bond
Redemption Account as above provided for, shall j
continue until such time as there shall have been
paid into said Bond Redemption Account the aggre-
gate amount of $ ► plus accrued interest to J
date of redemption and thereafter no further
payments need be made into said Bond Redemption
Account. Said amount is inclusive of and not in
addition to the amount required to be paid into
said AceoL.nt under the provisions of the
ordinance heretofore adopted on i.'' , 1969,
and authorizing the issuance of the a ereKnding
Revenue Bonds of said United City, dated May 12 1969.
After paying into said Depreciation and Contin-
gencies Account, said Bond and Interest Reserve
Account and said Bond Redemption Account at the
end of each fiscal year the amounts herein pro-
vided for, the balance of such funds in said
Surplus Account may be used or accumulated for
the repair, improvement, enlargement or exten-
sion of the waterworks system of said United
City, or for any other proper corporate purpose,
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Including the payment or the purchase, prior
to their maturity, on the open market, at a price
of not more than par of any of the outstanding
bor.. a of the United City payable from the revenues
of the waterworks system; provided, however, that
this sub-paragraph shall not be construed to pro-
hibit the United City from ordering and directing
that all further available funds in said Surplus
Account, or any portion in excess of fifty per cent
(50x) thereof be paid into the Bond Redemption
Account above created and established.
(f) The moneys in any of the accounts created by sub-
paragraphs (b) , (d) and (e), as hereinabove created
and set forth in this section, may by resolution
adopted by the City Council be invested from time
to time by the Treasurer of said United City in
interest bearing bonds of other direct and general
obligations of the United States Government and
maturing in not more than five (5) years after the
purchase date thereof, and such securities shall
be sold from time to time by said Treasurer pur-
suant to a resolution of the City Council as funds
may be needed for the purpose for which said accounts
have been created. All accrued interest on any funds
so Invented shall be credited to and deposited in the
account for which the investment was made.
That moneys in each of the above created accounts shall
be kept separate and apart from all other funds and moneys of the
United City and moneys In the Operation and Maintenance Account,
the Depreciation and Contingencies Account, the Surplus Account
and in the Bond Redemption Account, all as above established and
described shall be deposited with such bank or banks located and
doing business in the State of Illinois, as may from time to time
be determined by the City Council of the United City of the
Village of Yorkville, Illinois, and such bank or banks to be
organised under the laws of the State of Illinois or of the Unites
States of America, and whose deposits are insured under the
provisions of the Federal Deposit Insurance Act, and moneys in the
Bond and Interest Account and in the Bond and Interest Reserve
Account, all as above established and described, shall be
deposited in separate accounts with `p
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Section Q. That it is bareby covenanted and agreed that
the revenues of the waterworks system are to be paid intc the
various special accounts hereinabove established and created in
the order in which Said accounts have been listed, and if within
any period of time, the revenues are insufficient to place the
required amounts in all of said accounts, then first there shall
be paid the full requirements of the Bond and Interest Account,
thereafter there shall be paid the requirements of the Derreciation
and Contingencies Account, and thereafter there shall be paid the
requirements of the Bond and Interest Reserve Account. Deficiencies
in any of said accounts shall be made up from the first funds
available.
Section 24. While the bonds authorised hereunder or
any of their_ remain outstanding or unpaid, rates charged for the
use and service of the waterworks system shall be sufficient at
all times to _%ay the cost of operation and maintenance, to provide,
establish and maintain the special accounts established by this
ordinance, to pay the interest on and principal of all bonds which
by their terms are payable from the revenues of said waterworks
system and to carry out the covenants of this ordinance. And
there shall be charged against all users of said waterworks system,
including the United City of the Village of Yorkville, such rates
and amounts for water service as shall be adequate to meet the
requirements of this section. Compensation for services rendered
the United City of the Village of Yorkville shall be charged
against the said United City and payment for the same from the
corporate funds shall be made into the Waterworks Rind created by
this ordinance, in the same manner as otber revenues are required
to be deposited. No free service of the system shall be supplied
the United City or to any other person, firs, organisation or
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corporation, public or private, and to the extent permitted by law,
said United City further covenants not to grant any competing
franchise for the operation of a waterworks system in said United
Ci.,y.
Section 11. That the United City of the Village of
Yorkville hereby 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, that any holder of a bond or bonds Issued hereunder,
or of e y of the coupons representing interest accrued thereon,
may, either in law or in equity, by suit, action, mandamus or
other proceedings enforce or compel performance by the officials
of said United City of all duties required -by law and by this
ordinance, including the making the collecting of sufficient rates
for water services and segregating the revenues of acid waterworks
system and the application thereof to the respective accounts
created by this ordinance and in the time and manner as herein
provided.
Section 12. That the United City of the Village of
Yorkville hereby covenants and agrees with the Molders of said
bonds and coupons hereby authorized tnat so long as the bonds or
any of them remain outstanding and unpaid, either as to p=lncipal
or interest, to carry insurance on the waterworks system of the
kinds and in the amounts which are usually carried on similar
properties including, without limiting the generality of the
fore3oing, fire, windstorm insurance, public liability and all
additional insurance covering such risks as shall be recommended
by a competent independent engineer employed for the purpose of
making such recommendations, and all moneys received for losses
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under such insurance policies shall be deposited in the Depreciation
and Contingencies 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
days from date of the loss. The payment of premium for all
insurance policies required under the provisions of this section
shall be considered a maintenance and operation experae,
The proceeds of any and all policies for public liability
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shall be paid into the Operation and Maintenance Account and used
in paying the claims on account of which they were received.
Section 13. That the United City of the Village of
Yorkville hereby covenants and agrees that so long as the bonds
herein authorized remain outstanding and unpaid, either as to
principal or interest, that proper books, records and accounts
shall be kept and maintained by the United City of the Village of
Yorkville, separate and apart from all other records and accounts
of said United City, showing correct and complete entries of all
transactions relating to the waterworks system, and that the
holders of any of said bonds, or any duly authorized agent or
agents of such holders, shall have the right at any and all
reasonable times to inspect the records, accounts and audit relating
thereto, and to inspect the system and all property comprising
the system. Said United City further covenants and agrees that
it will within not more than one hundred and twenty days (120)
following the close of each fiscal year cause an audit of such
books and accounts to be made by an independent firm of certified
public accountants, showing the receipts and disbursements for
and on account of the waterworks system, and that such Audit will
be available for inspo-etion by the holders of any of the bonds.
Bach such audit, in addition to whatever matters may be thought
proper by the accountant to be included therein, shall without
limiting the generality of the foregoing, include the following:
(a) A statement in detail of the income and expenditures
of the waterworks system for such fiscal years, in-
cluding a balance sheet as of the end of such fiscal
year.
(b) The accountant's comment regarding the method in
which the United City has carried out the require-
ments of this ordinance, and the accountant's
recommaendations for any changes or improvements in
the operation of the system.
(c) A list of all the 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.
(d) The number of customers served by the waterworks sys-
tem at the and of the year, the number of metered
customers and the number of unmetered 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 a maintenance and
operation expense, and it is further covenanted and agreed that a
copy of each such audit shall be furnished to the holder of any
of the bonds at his request, and any holder of a bond or bonds
authorised under this ordinance shall have the right to discuss
with the accountant making the audit the contents of the audit
and to ask for any additional information he may reasonably require. �
V.
Monthly stetesents of receipMs and disbursements of the system s
small be furnished the City Council, and copies of the same shall
be furnished to any bond holder upon request. A copy of each ,,; ., ::
such annual audit and monthly report shall be mailed each month
to the original purchasers of the bonds authorised by this
ordinance if request is made theref9re
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Sec_ tion 14. That the United City of the Village of
Yorkville hereby 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, additional water revenue bonds to share ratably
and equally in the revenues of said waterworks system of said
United City with the bonds authorized to be issued under the
terms of this ordinance shall be issued only whenever the revenues
derived from the operation of the waterworks system for the
fiscal year then heart preceding were sufficient to pay all costs
of operation and maintenance, to pay all sum required under the
terms of this ordinance to be deposited up to the date of the
adoption of any ordinance authorizing the issuance of any such
additional bonds tO the Depreciation and Contingencies Account and
the Bond and Inte;vot Reserve Account, and to pay all bonds
theretofore called for prior redemption but not yet redeemed, and
twenty-five per cent (125%)
leave a balance equal to at least one hundred
of the aggregate of (a) an amount constituting the maximum of
the combined principal and interest requirements for any succeeding
twelve month period on all the bonds then outstanding which by their
terms are payable from the revenues of the waterworks system, (b)
one year's interest on the total issue of such additional bonds
then proposed to be issued, and (e) an amount of principal of such
additional bonds computed by dividing the total amount of such
Issue by the numgar of years from date of such issue to the final
maturity date of such additional bonds. j
In addition to the foregoing, if prior to the payment
of any of the bo►:ds hereby authorised, it shall be found desirabl*
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to refund all or a part of the bonds hereby authorised and then
outstanding, said bonds may be refunded notwithstanding the
restrictions as to the issuance of additional beds set forth in
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this section (with the consent of the holders thereof unless the
bonds to be refunded are subject to redemption and provision for
call and redemption thereof is duly made) and any refunding bonds
so issued shall share ratably and equally in the revenues of said
waterworks system and the pledge thereof under this ordinance with
the portion of the bands hereby authorized which are rot refunded;
provided, however, that if "nly a portion of said outstanding
bonds are to be refuii4ed at any time, such obligations shall not
be refunded by bonds bearing interest at a rate greater than the
Interest rate borne by the particular bonds being refunded or
maturing at a date earlier than the final maturity of such bonds
not refunded.
Secs tilt 1,�. That the United City of the Village of
TorkviIle hereby covenants and agrees with the holders of said
bonds and coupons hereby authorized that 9,3 long as the bonds or
ow of them remain outstanding and unpaid, either as to principal
or interest, that it will punctually perforce all duties with
refer* ce to said waterworks system required by the Constitution
i
and laws of the State of Illinois, including the making and collecting 4
of sufficient rates for water service, segregating the revenues
of said systm and the application thereof to the respective
accounts created by this ordinance, and it hereby covenants ands ;s `
agrees not to sell, lease, loan, mortgage encumber or in any ,
manner dispose of said waterworks system including any and all
extensions and improvemmmts that may be Rafe thereto, except for
the issue of additional bonds as provided for in Section lk hereof,
and that the United City will take no action in relation to �{
said waterworks system which would unfavorably affect the security of
the bonds berein authorized or the prompt payment of the principal
and interest thereon, until all of the bonds herein authorised to be
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issued shall have been paid in full, both principal and interest,
or unless and until provision shall have been made for the payment
of all such bonds and interest thereon in full; and the City further
covenants and agrees with the holders of said bonds to maintain in
good condition and continuously operate said waterworks system.
Section 16. That the provisions of this ordinance shall
constitute a contract between the United City of the Village of
Yorkville and the holders of the bonds herein authorized to be
Issued and after the issuance of said bonds, no changes, additions
or alterations of any kind shall be made therein, except as
hereinbefore provided, until such time as all said bonds issued
hereunder and the interest thereon shall be paid in lull, or unless
and until provision shall have been made for the payment of all
such bonds and interest thereon in full.
Section 17. That as soon after this ordinance becomes
effective, the bonds herein authorized shall be sold by the City
Council of said United City in such manner as they may hereafter
determine; provided, however, that the price for such bonds shall
be such that the interest cost to the United City for the money
received by the United City from such bond sale shall not exceed
six per cent (6%) annually computed to maturity according to
standard tables of bond values.
Section 18. All accrued interest shall be deposited in
the Bond and Interest Account. That the proceeds of the sale of
the bonds hereby authorized (being the sum of ;185000) shall be
deposited by the City Treasurer with the Yorkville National Bank,
of the City of Yorkville, Illinois, which said bank is hereby
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designated is the depositary of the Account hereinafter named,
In a special account to be designated the "Waterworks Improvements
Construction Aund Account of the United City of the Village of
Yorkville, Illinois", which is hereby created to be applied only
for the purpose of paying the cost of the construction of the
Improvements and extensions to the waterworks system of said
City, as herein provided, all in accordance with the plans and
specifications therefor her-etofore approved by the City Council
of said United City and now on file in the office of the City
Clerk of Yorkville for public inspection. The cost of engineering,
legal and other expenses, including the cost of surgeys, designs,
soundings, borings, rights of ray, interest accruing on the bonds
herein authorized during the period of construction and al;
other necessary and incidental expenses shall be Aeemed items of
construction cost. If the City Council shall determine at any time
that the amount of proceeds in the Waterworks Improvements Construc-
tion Fund Account is in excess of the amount necessary to meet
authorised expenditures therefrom during the nest ensuing six months,
It may by resolution direct the Depositary of *aid account to invest
such excess in interest bearing bonds or other direct and general
obligations of the United States G6vernment having a maturity of
not more than one year subsequent to the date of such investment,
and all such investments, as well as income therefrom, shall be
carried to this credit of the Waterworks Improvements Construction
Fund Account. As and when such funds are ttus needed, the City
Council shall direct the said Depositary, b7 resolution, to cause
a sufficient amount of such investments to be -old and converted
into cash to the credit of the Waterworks Improvements Construction
Fund Account.
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The funds in the said "Waterworks Improvements Construction
Fund Account" shall be held by said bank hereinabove designated as
the depositary of said Account and used solely to construct the
Improvements and extensions to the waterworks system of said City
as provided for by this ordinance and in conformity to the plans
and specifications thereof, heretofore approved by the City Council
and now on file ir, the office of the City Clerks and said funds shall
be held for the benefit of said United City for the purposes herein
provided and for tha benefit of the holder or holders of the bonds
hereby authorized as their interests may appear, and said funds
shall be withdrawn from said depositary from time to time by the
Treasurer of the United City in accordance with a depositary
agreement hereafter to be authorized by resolution of the City
Council of said United City and duly executed on behalf of the
United City %rhich said depositary agreement shall provide, among
other things, that disbursements from the Waterworks Improvements
Construction Fund Account shall be made only upon submission by
him to said depositary of the following:
(a) A duplicate copy of the order of the Mayor
and City Clerk stating specifically the
purposes for which the order is issued and
Indicating that the payment for which the
order was issued has been approved by the
Council of said United City; and
(b) Each withdrawal of funds by the Treasurer for
IL NEI"" payment to a contractor or contractors for
work done in connection with the construction
of said project shall be accompanied by a
certificate executed by the engineers in
charge of the construction of said improve-
ments and extensions to the waterworks system,
[ stating the nature of the work completed,
the Ruount due and payable thereon, that such
work perform*& or material supplied was
within the scope of the contract that such
work performed was done in an 9 414 ient manner
or that such material supplied was of proper
quality, that the amount payable was within the
contract prises, and that sufficient funds
remain to c*MUte the construction thereof,
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Within sixty days after completion of the construction
of the improvements and extensions to the waterworks system in
accordance with the plans and specifications therefor, hereinabove
referred to In this ordinance, and after all costs have been
paid in connection with the construction thereof, the engineers
shall certify to the City Council of the United City the fact
that the Work has been completed according to said plans and
specifications, and upon approval of the completion of the work
based upon the engineer's certificate by the City Council, and
after all costs have been paid, the Mayor, City Clerk and Engineer
shall execute a certificate and file it with the Depositary
certifying that the work has been completed in accordance with
said plans End specifications, that all costs have been paid,
and if at thtt time any funds remain in said combined Waterworks
Improvements ;onstruction Fund Account the same shall be trans-
mitted by Salo Depositary to the Treasurer of said City and be
by said Treasurer paid into the Bland and Interest Reserve Account.
Sects n 19. The books of the City Treasurer shall
show the amount of moneys received from the proceeds of said bonds,
and the expenditlre of such funds for the purposes sat out in
this ordinance u}on estimates and bills to be approved by the City
Council,, except at herein otherwise provided.
Section 20. If any section, paragraph, clause or
provision of this )rdinance shall be held invalid, the invalidity
of such section, paragraph, clause or provision shall not affect
any of the other previsions of this ordinance.
Section 2,s. All ordinances, resolutions or orders,
or parts thereof, it conflict with the provisions of this ordinance
are to the extent of such conflict hereby repealed.
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sect-IM 22. That within tae days after the passage of
this ordinance by the City Council and its being signed by the
Mayor, this ordinance shall be published once in the Kendall
County Record, a newspaper published in and having a general
circulation in the United City of the Village of Yorkville, and
If no petition is filed with the Clerk of said United City within
twenty--one days after the date of the publication of this
ordinance signed by electors numbering twenty per cent (20X) of
the number of electors voting for Mayor of the said United City
in the last precedir:g general municipal election, requesting
the submission to the electors of said United City of the
question of constructing the improv Rents and extensions to the
Waterworks system of said City and issuing the bonds herein
provided for, then this ordinance shall be in full force and
effect.
PASSED by the City Council of the United City of the
Village of Yorkville on the Z' do of i� f' , 1969.
Introduced:
Recorded, deposited and filed in the office of the
City Clerk of said United City, this day of A.Do
1969.
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