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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 �a X 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 ti 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 -2- 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. ,_, y'' >4~; ..but )..: �y �?• f'& -.. - a w� ri 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 : { h KI . > ., V»+1 k + i -j{i,'�. .�'4 Y �`��':1�t A�-•9i�jr a � , f�'�'Siyr d vl+�gt a... � � SF S _r'- 1 �a i i F be redeematle in the inverse order in which they are numbered; that Is to say, bond number 37 shall first h" redeemed before bond i 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 ::, Ik 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 1 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.- i y y � :. ,y 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 i STATE OF ILLINOIS COUNTY OF KENDALL j UNITED CITY OF THE VILLAGE OF YORMLLE i � WATER REVENUE BOND X• ' Number �_ $5,000 i 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 I then to the registered holder hereof, solely from the Water Fund of the United City of the Village of Yorkville, as hereinafter i mentioned and not otherwise, the sum of FIVE THOUSAND DOLLARS i (;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 i -6- f 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. -7- tN r 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 i 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. r Attest: City Cleric -9- p (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 I 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 -10- 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 -11- (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. A y Y'° a.T a • r.,fi� ��_v„ y 'F E NNW .b :ic -�.�lc3n'SA _ .,.. ' L _ t .�` ,�' � �< �^` 'fir:-��c�a'�!;vt"'�• .�? r (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, -13- • r s 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, -14- 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 -1�- 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 —16-- a 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 -17- 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 i 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 T( x :tV 4 r �S zSA v F `ri t.'v }e j Z Z,Sa.� r fir:-. `i .r`-'" t r x ..S• f Y+` .N;t c. 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* e 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 s1A- i V+ .a. 7� x ` 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 . 22w 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 I -22- r' S F 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. -23- 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, u " c"� Z- 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. -25- 0 le s 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. d; 0 a 9 e f z - s.