Ordinance 1960-18 AN ORDINANCE AUTHORIZING AND PROVIDING FOR
THE ISSUE OF $90,000 WATER REVENUE BONDS
OF THE UNITED CITY OF THE VILLAGE OF YORKVILLE,
KENDALL COUNTY, ILLINOIS, FOR THE PURPOSE OF
DEFRAYING THE COST OF CONSTRUCTING NECESSARY
IMPROVEMENTS AND EXTENSIONS TO THE EXISTING
WATERWORKS SYSTEM OF SAID CITY, PRESCRIBING
ALL THE DETAILS OF SAID BONDS AND PROVIDING FOR
THE COLLECTION, SEGREGATION AND DISTRIBUTION OF
THE REVENUE OF THE WATERWORKS SYSTEM OF SAID
CITY 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.
WHEREAS, the United City of the Village of Yorkville, Kendall
County, Illinois, is now, and has for many years, operated a water-
works system in and for said United City; and
WHEREAS, it is deemed advisable, necessary and in the best
interest of the public health and safety of the inhabitants of the
United City of the Village of Yorkville, Kendall County, Illinois,
that necessary improvements and extensions be made to the waterworks
system of said United City, such improvements and extensions to con-
sist of the construction of a new deep well equipped with a turbine
type pump, motor and control, service pumping equipment and necessary
piping, electrical work and appurtenant construction to make the same
an integral part of the existing waterworks system; and the extension
of the distribution system with 10-inch, 8-inch and 6-inch water mains
with valves, hydrants and all appurtenant work necessary and inci-
dent thereto in order to make the same an integral part of the exist-
ing waterworks system of said United City, all of such improvements
and extensions as above described being in accordance with the de-
tailed plans and specifications and estimates of cost therefor here-
tofore approved by the Council of said United City and now on file in
the office of the City Clerk for public inspection; and
WHEREAS, the total estimated cost of the construction of such
improvements and extensions to the waterworks system, as prepared by
the engineer of said United City employed for that purpose, is the
sum of Ninety-two Thousand Five Hundred Dollars ($92,500.00) ; and
WHEREAS , said United City of the Village of Yorkville does
not have on hand and available sufficient moneys to apply toward
the payment of the cost of the construction of said improvements and
extensions above referred to and in order to raise the funds re-
quired; namely, $92, 500, it will be necessary for the United City
to borrow the sum of Ninety Thousand Dollars ($90,000.00) , and in
evidence thereof issue its Revenue Bonds in the principal amount of
Ninety Thousand Dollars ($90,000.00) for the purpose of paying part
of the cost of the construction of said improvements and extensions
to the existing waterworks system; and
WHEREAS, pursuant to the provisions of the "Revised Cities
and Villages Act" , effective January 1 , 1942, as amended, this United
City is authorized to issue Water Revenue Bonds in an amount suffi-
cient to pay the cost of constructing said improvements and exten-
sions to the existing waterworks system of said United City:
NOW, THEREFORE, Be It Ordained by the City Council of the
United City of the Village 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 neces-
sary improvements and extensions to the existing waterworks system
of said United City, such improvements and extensions to said exist-
ing waterworks system being described hereinabove in the preamble of
this ordinance, and all in accordance with the detailei plans and
specifications therefor heretofore approved by the City Council and
now on file inthe 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 existing
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waterworks system is the sum of Ninety-two Thousand Five Hundred
Dollars ($92 , 500.00) .
Section 2. That the City Council does hereby determine the
period of usefulness of said existing waterworks system and the im-
provements and extensions to be made thereto as herein proposed, to
be forty years.
Section 3. That the United City does not have sufficient funds
available for the purpose of paying the entire cost of constructing
said improvements and extensions to the existing waterworks system
and for the purpose of paying part of the cost thereof it will re-
quire the issuance by said City of $90 ,000.00 Water Revenue Bonds of
said United City , bearing interest at the rate of four and six-tenths
per cent (4.6%) per annum, such interest to be payable on November 1,
1960 and semi-annually thereafter.
Section 4. That for the purpose of defraying part of the
cost of the construction of the necessary improvements and extensions
to the existing waterworks system of the United City of the Village
of YOrkville as referred to and described hereinabove inthe preamble
of this ordinance, there be issued and sold Water Revenue Bonds of
said United City , in the principal amount of $90,000.00, which bonds
shall be designated "Water Revenue Bonds" , be dated November 1 , 1959,
be numbered consecutively from 1 to 90, inclusive , be of the de-
nomination of $1,000 each, bear interest at the rate of four and six-
tenths per cent (4.6%) per annum, payable on November 1, 1960 and
semi-annually thereafter on the first days of May and November in
each year , and mature serially on May 1 of each of the years and in
the amounts as follows: (subject to the right of said United City
to call bonds numbered 46 to 90, inclusive, for prior redemption, as
hereinafter provided.)
Due on May 1 of each of
Amount the following years
$ 3,000.00 1965 to 1969, inclusive
5,000.00 1970 to 1984, inclusive
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provided, however, that of said bonds , bonds numbered 46 to 90, in-
clusive, in the aggregate amount of $45,000, shall be subject to re-
demption and payment prior to their maturity , at the option of the
United City, at par and accrued interest to date of redemption, in
the inverse order of their number , on any interest payment date on
or after May 1 , 1975; that is to say , bond number 90 shall first be
redeemed before bond number 89 is redeemed, and so on, continuing
such priority of redemption as to all said bonds subject to redemption
prior to maturity. Written notice of its option to redeem and pay
prior to their maturity any or all of said bonds , which by their
terms shall have become subject to redemption and payment shall be
given by the United Cityto the holder of each such bond called for
redemption, if known, by registered mail at least thirty (30) days
prior to the date of redemption or if the holders of any such bonds
are unknown, then notice of such redWtion shall be given by publi-
cation of such notice at least once in a newspaper published and of
general circulation in the City of Chicago, Illincis, and the date
of the publication of such notice shall be not less than thirty (30)
days prior to such redemption date, and any such notice shall desig-
nate the date and place of redemption of said bonds, which shall be
at National Boulevard Bank of Chicago , in the
City of Chicago, Illinois , shall designate the serial numbers and
the aggregate principal amount of the bonds to be redeemed, and shall
indicate that on the designated date of redemption said bonds will
be redeemed by payment of the principal thereof and accrued interest
thereon up to and including the date of redemption, and when such
bonds have been called for redemption and payment made or provided
for , interest shall cease from and after the date so specified.
Section 5. That both principal and interest of said Water
Revenue Bonds shall be payable in lawful money of the United States
of America at National Boulevard Bank of Chicago
in the City of Chicago, Illinois; that said bonds shall be signed by
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the Mayor of said United City , sealed withthe corporate seal of said
United City and attested by the City Clerk, and the interest coupons
attached to said bonds shall be signed by the facsimile signatures
of said Mayor and said City Clerk , and said officials , by the execu-
tion of said bonds, shall adopt as and for their own proper signa-
tures their respective facsimile signatures , appearing on said coupons.
Said bonds, together with the interest thereon, shall be pay-
able solely from the revenues derived from the waterworks system of
said United City and said bonds shall not, in any event, constitute
an indebtedness of the United City of the Village of Yorkville within
the meaning of any constitutional or statutory limitation.
Any of said bonds may be registered as to principal 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 registra-
tion 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 represen-
tatives or assigns. Such registered bonds shall 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 but such coupons shall
be negotiable by delivery merely.
Section 6. That said bonds and coupons shall be in substantially
the following form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF KENDALL
UNITED CITY OF THE
VILLAGE OF YORKVILLE
WATER REVENUE BOND
Number $1,000.00
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KNOW ALL MEN BY THESE PRESENTS , that the United City of the
Village of Yorkville , Kendall County, Illinois , for value received,
hereby promises to pay to bearer , or , if this bond be registered, as
hereinafter provided, then to the registered holder hereof , solely
from the Water Fund of the United City of the Village of Yorkville,
as hereinafter mentioned and not otherwise, the sum of One Thousand
Dollars ($1 ,000.00) on May 1 , 19 , together with interest on said
sum from date hereof until paid, at the rate of four and six tenths
per cent (4.60) per annum, payable on November 1, 1960 and semi-
annually thereafter on the first days of May and November in each
year upon presentation and surrender of the annexed interest coupons
as they severally become due.
Both principal of and interest on this bond are hereby made
payable in lawful money of the United States of America at the
National Boulevard Bank of Chicago ,
in the City of Chicago, Illinois.
This bond and the series of which it forms a part is payable
solely from revenues derived from the operation of the waterworks
system of said United City and not otherwise, and is issued under
the authority of the provisions of the "Revised Cities and Villages
Act" of the State of Illinois , and all laws amendatory thereof and
supplemental thereto, for the purpose of paying the cost of con-
structing necessary improvements and extensions to the existing
municipal waterworks system of said United City of the Villago6f
Yorkville, and this bond does not constitute an indebtedness of said
United City within any constitutional or statutory limitation.
This bond is one of an authorized issue of Ninety Thousand
Dollars ($90,000.00) , numbered from 1 to 90, inclusive, of the de-
nomination of One Thousand Dollars ($1,000) each, (bonds numbered
to , inclusive) , bearing interest at the rate of four and
six-tenths per cent (4.6%) per annum, of like date and tenor except
as to maturity and privilege of redemption and of said bonds, bonds
numbered 46 to 90, inclusive , in the aggregate amount of Forty-five
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Thousand Dollars ($45,000.00) are subject to redemption and payment
prior to their maturity, at the option of the United City, at par
and accrued interest to date of redemption, in the inverse order of
their number , on any interest payment date on or after May 1, 1975.
That is to say, bond number 90 shall first be redeemed before bond
number 89 is redeemed, and so on, continuing such priority of re-
demption as to all bonds so redeemable. Notice of the redemption
of any or all of said bonds which by their terms shall have become
subject to redemption shall be given by the United City to the
holder thereof , if known, by registered mail at least thirty (30)
days prior to the date of redemption, or if the holder thereof be
unknown, such notice shall be published at least once in a newspaper
published and of general circulation in the City of Chicago, Illi-
nois, the date of the publication of such notice to be not less
than thirty (30) days prior to such redemption date , and when any
or all of said bonds which by their terms have become subject to
redemption and payment prior to their maturity shall have been
called for redemption, and payment made or provided for , interest
thereon shall cease from and after the date so specified.
Under said Act and the ordinance adopted pursuant thereto
authorizing the issuance of this bond and the series of which it
forms a part, the entire revenues from the operation of the water-
works system of said City shall be deposited in a separate fund de-
signated as the "Water Fund" of said United City, which shall be used
only and is hereby pledged for paying the cost of operation and
maintenance of said system, providing an aabquate depreciation fund
and paying the principal of and interest on the bonds of said United
City that are issued under the authority of said Act and are payable
by their terms only from the revenues of said waterworks system, and
in making all payments required to maintain the several special ac-
counts established and created under the terms of the ordinance pur-
suant to which this bond is issued.
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It is hereby certified and recited that all acts , conditions
and things required to be done precedent to and in the issuance of
this bond have been done and have happened and have been performed
in regular and due form of law and that provision has been made for
depositing in said Water Fund the entire revenues received from the
operation of said waterworks system which said revenues are to be
applied in the manner as hereinabove set forth; and said United City
hereby cmnants and agrees that it will fix and maintain rates for
the use and service of said waterworks system and collect and account
for revenues from said waterworks system sufficient at all times to
pay the cost of maintenance and operation of said system, to provide
an adequate depreciation fund, to promptly pay principal of and in-
terest on all bonds issued by said United City which by their terms
are payable solely from the revenues of said waterworks system, and
to comply with all the covenants of and to maintain the several
special accounts created. and established by the ordinance pursuant
to which this bond and the series of which it forms a part were
issued.
This bond may be registered as to principal only in the name
of the holder on the books of 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,
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 York-
ville , Kendall County, Illinois , by its City Council , has caused this
bond to be signed by its Mayor, its corporate seal to be hereto af-
fixed, and attested by the City Clerk, and the coupons hereto attached
to be signed by the facsimile signatures of said Mayor and said City
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Clerk, which officials by the execution of this bond do adopt as
and for their own proper signatures their respective facsimile signa-
tures appearing on said coupons and this bond to be dated as of the
first day of November , 1959.
Mayor , United City of e Village
of Yorkville , Kendall County, Illinois.
Attest:
City Clerk , United i y or e
Village of Yorkville , Kendall
County , Illinois.
(Form of Coupon)
Number $
On the first day of 19 *(unless the bond
to which this coupon is attached has been called for payment prior
to said date as therein provided and payment made or provided for) ,
the United City of the Village of Yorkville, Kendall County , Illi-
nois , will pay to bearer out of the Water Fund of said City
Dollars ($ ) in lawful
money of the United States of America, at the
, in the City of
Chicago , Illinois , being interest then due on its Water Revenue Bonds,
dated November 1, 1959, Number
Mayor , United City ol the Village
of Yorkville, Kendall County, Illinois.
City Clerk, United City of the
Village of Yorkville , Kendal].
Tounty , Illinois.
*(The clause within the parenthesis appearing on the form of interest
coupon shall be inserted in all coupons attached to bonds numbered
46 to 90 , inclusive , representing interest maturing on and after
May 1, 1975.)
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(Form for Registration)
Date of Signature of
Registration In Whose Name Registered City Treasurer
Section 7 . That upon the issuance of any of the Water Revenue
Bonds herein provided for , the entire municipal waterworks system of
said United City of the Village of Yorkville, for the purpose of this
ordnance, 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 . From and after the delivery of any binds issued under the pro-
visions of this ordinance , and so long as any of the bonds herein
authorized to be issued are outstanding, all the revenues from any
source whatsoever derived from the operation of the waterworks system
of said United City of the Village of Yorkville, shall be set aside
as collected and kept separate and apart from all other United City
funds and be deposited in a separate fund in a state or national bank
in the State of Illinois , and which is a member of the Federal Deposit
Insurance Corporation, which separate fund is hereby created and shall
be designated as the "Water Fund of the United City of the Village of
Yorkville" , which shall constitute a trust fund and is hereby ir-
revocably pledged for the sole purpose of carrying out the covenants,
terms and conditions of this ordinance, and shall be used and held
for use only in paying the cost of operation and maintenance of said
waterworks system , providing an adequate depreciation fund, paying
the principal of and interest upon all revenue bonds of said United
City of the Village of Yorkville which by their terms are payable
solely from the revenues derived from the waterworks system of said
City, and for the creation, maintenance and expenditure of the re-
spective special accounts as hereinafter provided for in Section 8
of this ordinance.
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Section 8. That there be and there are hereby created and
established separate accounts of e;id Water Fund to be designated
severally "Operation and Maintenance Account" , "Depreciation and
Contingencies Account" , "Bond and Interest Account" , "Bond and In-
terest 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 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 waterworks
system for the current month, including with-
out limiting the generality of the foregoing,
salaries, wages , taxes, costs of materials and
supplies , insurance, power, fuel, reasonable
repairs and extensions necessary to render
efficient service, one-twelfth (1/12th) of all
costs which are paid on an annual basis, and
all other necessary incidental expenses which
under recognized accounting principles are
properly chargeable to the operation and main-
tenance 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 $40.00 each month until May 1, 1965
and then the sum of $50.00 unti:Ysuch account
aggregates the sum of $10,000.00, and thereafter
no additional payments shall be made into said
account except that when any money is paid out
of such account payments into such account shall
be resumed and continued until such account has
been restored to the aggregate amount of $10,000.00.
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 add 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
wherever such an amount is withdrawn from said
account and so transferred to said Bond and In-
terest Eccount, the amount so transferred shall be
added to the amount to be next and thereafter paid
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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 re-
pairs to the system, as above provided for, shall
be made only after a consulting engineer employed
for that purpose has certified that such expendi-
ture is necessary to the continued effective and
efficient operation of the waterworks system of
said United City.
(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 out-
standing bonds authorized to be issued under the
terms of this ordinance and commencing with the
fiscal year beginning May 1 , 1964, there shall be
paid into the Bond and Interest Account on the
first business day of each month an amount equal
to one-twelfth of the principal becoming due on
the next succedding principal maturity date of
all of said bonds authorized to be issued under
the terms of this ordinance.
It is hereby determined that the minimum amounts
to be set aside in the "Bond and Interest Account"
in each fiscal year to be used for the purpose of
paying the maturing principal of and interest
accruing on the Revenue Bonds issued under the
provisions of this ordinance shall be as follows:
Fiscal year ending Principal and
last day of April Interest
1960 $2,070.00
1961 4, 140.00
1962 4, 140.00
1963 4, 140.00
1964 4, 140.00
1965 71140.00
1966 7 ,002.00
1967 6,864.00
1968 61726.00
1969 6$ 88.00
1970 8,450.00
1971 8,220.00
1972 7 ,990.00
1973 71760.00
1974 7 , 530.00
1975 7,300.00
1976 7 ,070.00
1977 6, 840.00
1978 6,610.00
1979 6,380.00
1980 62150.00
1981 5,920.00
1982 5,690.00
1983 5, 460.00
1984 5,230.00
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All moneys in said account shall be used only for
the purpose of paying interest and principal on
the bonds hereby authorized as the same shall be-
come due.
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 $40.00 each
month until May 1, 1965 and then the sum of $50 .00
each month until such account aggregates the sum
of $8,000.00 , and thereafter no additional payments
shall be made into such account except that when-
ever any money is paid out of said account, pay-
ments into said account shall be resumed and con-
tinued until such account has been restored to the
aggregate amount of $8,000.00; and the United City
covenants and agrees to maintain said Bond and
Interest Reserve Account throughout the life of
said bonds authorized to be issued under the terms
of this ordinance.
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 prin-
cipal thereof and the interest thereon becoming
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.
(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) , inclusive, of this
section, required to have been made, shall have been
made , including any deficiencies as hereinabove pro-
vided, 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 50go paid
into a further account to be designated Bond Redemp-
tion 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 outstanding bonds of said United
City authorized to be issued under the terms of this
ordinance and which by their terms are payable from
the revenues derived from the operation of the water-
works system of said United City and as such bonds
become redeemable. Such payments from the Surplus
Account into the Bond Redemption Account as above pro-
vided for , shall continue until such time as there
shall have been paid into said Bond Redemption Ac-
count the aggregate amount of $45,000 plus accrued in-
terest to date of maturity or until all the revenue
bonds authorized to be issued under the terms of this
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ordinance which by their terms are redeemable
prior to their maturity; namely, bonds numbered
46 to 90, inclusive, in the aggregate amount of
$45,000 shall have been called for payment as pro-
vided in this ordinance and payment made or pro-
vided for and thereafter no further payments need
be made into said Bond Redemption Account.
After paying into said Depreciation and Contingencies
Account, said Bond and Interest Reserve Account and
said Bond Redemption Account at the end of each
fiscal year the amounts herein provided for , the
balance of such funds in said Surplus Account may
be used or accumulated for the repair , improvement ,
enlargement or extension of the waterworks system
of said United City , or for the redemption of
bonds of said United City authorized to be issued
under the terms of this ordinance and which by their
terms are payable from the revenues of the waterworks
system of said United City or for any other proper
corporate purpose, including the payment or the pur-
chase , prior to their maturity, on the open market,
at a price of not more than par of any of the out-
standing bonds of the United City payable from the
revenues of the waterworks system; provided, how-
ever , that this sub-paragraph shall not be con-
strued to prohibit 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 (50%) 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 pursuant
to a resolution of the City Council as funds may be
needed for the purpose for which said accounts hav e
been created. All accrued interest on any funds so
invested 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 De-
preciation and Contingencies Account, the Surplus Account and in
the Bond Redemption Account , all as above dstablished and described
shall be deposited with such bank or banks located and doing busi-
ness in the State of Illinois , as may from time to time be determined
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by the City Council of the United City of the Village of Yorkville ,
Illinois, and such bank or banks to be organized under the laws
of the State of Illinois or of the United States of America, and
whose deposits are insured under the provisions of the Federal De-
posit Insurance Act, and moneys irythe 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
National Boulevard Bank of Chicago , in the City of
Chicago, Illinois.
Section 9. That it is hereby covenanted and agreed that the
revenues of the waterworks system are to be paid into 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 Depreciation and Contingencies
Account, and therefter there shall be paid the requirements of the
Bond and Interest Reserve Account. Deficiencies in any of said ac-
counts shall be made up from the first funds available.
Section 10. While the bonds authorized hereunder or any
of them remain outstanding or unpaid, rates charged for the use and
service of the waterworks system shall�be sufficient at all times to
pay 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 authorized
to be issued under the terms of this ordinance , 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
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Ir
shall be adequate to meet the requirements of this section. Com-
pensation 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 Water-
works Fund created by this ordinance, in the same manner as other
revenues are required to be deposited. No free service of the system
shall be supplied the United City or to any other person, firm, organi-
zation or 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 City.
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 any 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 said waterworks system and the aRiication 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 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 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 foregoing, fire, windstorm insurance,
public liability and all additional insurance covering such risks as
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shall be recommended by a competent independent engineer employed
for the purpose of making such recommendations , and all moneys re-
ceived for losses 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 re-
pairing 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 premiums for all
insurance policies required under the provisions of this section
shall be considered a maintenance and operation expense.
The proceeds of any and all policies for public liability
shall be paid into the Operation and Maintenance Account and used
in paying the claims on account of which they vwe received.
Section 13. That the United City of the Villagebf 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 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 ac-
count of the waterworks system, and that such audit will be available
for inspection by the holders of any of the bonds. Each such audit,
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in addition to whatever matters may be thought proper by the ac-
countant 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 requirements
of this ordinance, and the accountant 's recommendations
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 & 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 system
at the end 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 authorized
under this ordinance shall have the right to discuss with the ac-
countant making the audit the contents of the audit and to ask for
any additional information he may reasonably require. Monthly
statements of receipts and disbursements of the system shall be
furnished the City Council , and copies of the same shall be fur-
1 shed to any bondholder upon request. A copy of each such annual
audit and monthly report shall be mailed each month to the original
purchasers of the bonds authorized by this ordinance if request is
made therefor .
Section 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
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revenues of said waterworks sytem 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 next preceding
were sufficient to pay all costs of operation and maintenance, to
pay all sums required under the terms of this ordinance to be de-
posited 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 Interest Reserve Account, and
to pay all bonds theretofore called for prior redemption but not yet
redeemed, and leave a balance equal to at least one hundred
forty per cent (1401) 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 water-
works system, (b) one year 's interest on the total issue of such
additional bonds then proposed to be issued, and (c) an amount of
principal of such additional bonds computed by dividing the total
amount of such issue by the number of years from date of such issue
to the final maturity date of such additional bonds .
Notwithstanding the above restrictions , additional bonds in
`9 J
an amount not to exceed $ Q, D p J , , and to share ratably
and equally in the income and revenues of the waterworks system
with the revenue bonds authorized to be issued under the tams of
ordinance may be issued at any time after the passage of this ordi-
nance for the purpose of completing the construction of the improve-
ments and extensions , authorized and provided for by this ordinance ,
but only upon certificate to the City Council by the consulting
engineer then in the employ of said United City that additional
funds are necessary for the purpose of completing the construction
of said improvements and extensions in accordance with the plans
and specifications therefor heretofore approved by the City Council
19 -
and now on file in the office of the City Clerk for public inspection
and said certificate shall show the total amount of work completed,
the cost thereof , the work remaining to be completed and the estimated
cost thereof and said certificate shall be approved by the City
Council of the United City and filed in the office of the City Clerk
for public inspection preliminary to the adoption of any ordinance
providing for the issuance of any additional revenue bonds.
In addition to the foregoing, if prior to the payment of any
of the bonds hereby authorized, it shall be found desirable to refund
all or a part of the bonds hereby authorized and then outstanding,
said bonds may be refunded notwithstanding the restrictions as to
the issuance of additional bonds set forth in 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 bonds hereby
authorized which are not refunded; provided, however, that if only a
portion of said outstanding bonds are to be refunded at any time,
such obligations shall not be refunded by bonds bearing interest at
a rate greater than the interest rate born by the particular bonds
being refunded or maturing at a date earlier than the final maturity
of such bonds not refunded.
Section 15. That the United City of -the Village of Yorkville
hereby covenants and agrees faith 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 it
will pundually perform all duties with reference to said waterworks
system required by the Constitution and laws of the State of Illinois ,
including the making and collecting of sufficient rates for water
service , segregating the revenues of said system and the application
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thereof to the respective accounts created by this ordinance, and
it hereby covenants and agrees not to sell , lease, loan, mortgage
encumber or in any manner dispose of said waterworks system in-
cluding any and all extensions and improvements flat may be made
thereto, except for the issue of additional bonds as provided for
in Section 14 hereof , and that the United City willtake no action
in relation to said vvterworks system which would unfavorably affect
the security of the bonds herein authorized or the prompt payment
of the principal and interest thereon, until all of the bonds herein
authorized to be 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 water-
works system.
Section 16. That the provisions of this ordinance shall con-
stitute a contract between the United City of the Village of York-
ville and the holders of the bonds herein authorzied 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 full, 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 ef-
fective as may be, the bonds herein authorized shallbe executed by
the officials of said United City as in this ordinance provided and
be deposited with the Treasurer of said United City, and be by said
Treasurer delivered to Morrissey & Co. , the purchaser thereof , upon
receipt of the purchase price of said bonds ; that said contract for
the sale thereof , heretofore entered into, be and the same is in all
- 21 -
respects ratified and approved, said purchase price being the sum
of $ 87,300.00 , plus accrued interest to date of delivery
thereof , which interest cost to the United City from the proceeds
of such sale does not exceed six per cent (6%) per annum , computed
to maturity according to standard table of bond values.
Section 18. All accrued interest, together with a sum suffi-
cient to pay interest on said bonds up to and including April 1, 1960,
shall be deposited in the Bond and Intaost Account. That the proceeds
of the sale of the bond hereby authorized (being the sum of $ 87,300.00 )
shall be deposited by the City Treasurer with the Yorkville
National Bank , of the City of Yorkville ,
Illinois , which said bank is hereby designated as the depositary of
the Account hereinafter named, in a special account to be designated
the "Waterworks Improvements Constructtn Fund Account of the United
City of the Village of YorMlle, Illinois", which is hereby created
to be applied only for the purpose of paying the cost of the con-
struction of the improvements and extensions to the waterworks
system of said City, as herein provided, all in accordance with the
plans and specifications therefor heretofore 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 en-
gineering, legal and other expense*, including the cost of surveys,
designs, sourdngs , borings , rights of way, interest accruing on
the bonds herein authaized during the period of construction and all
other necessary and incidental expenses shall be deemed items of
construction cost. If the City Council shall determine at any
time that the amount of proceeds in the Waterworks Impromments
Construction Fund Account i*i n excess of the amount necessary to
meet authorized expenditures therefrom durin g the next ensuing
six months, it may by resolution direct the Depositary of said ac-
count to invest such excess in interest bearing bonds or other direct
and general obligations of the United States Government having a
- 22 -
maturity of not more than one year subsequent to the date of such in-
vestment, and all such investments, as well as income therefrom, shall
be carried to the credit of the Waterworks Improvements Construction
Fund Account. As and when such funds are thus needed, the City Council
shall direct the said Depositary, by resolution, to cause a sufficient
amount of such investments to be sold and converted into cash to the
credit of the Waterworks Improvements Donstruction Fund Account.
The funds in the said "Waterworks Improvement 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 in
the office of the City Clerk, and said funds shall be held for the
benefit of said United City for the purposes herein provided and for
the benefit of the holder or holders of the bonds hereby authorized
as their bnterests may appear , and said funds shall be withdrawn from
said depositary from time to time by the Treasurer of the United City
in acoordance 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 which said depositary agreement shall
provide , among other things , that disbursements from the Waterworks
Improvements Constructirn Fund :account shall be made only upon sub-
mission 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
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 con-
struction of said improvements and extensions to
the waterworks system , stating the nature of the
work completed, the amount due and payable thereon,
that such work performed or material supplied was
within the scope of the contract, that such work
- 23 -
performed was done in an efficient manner or
that such material supplied was of proper quality,
that the amount payable was within the contract
prices, and that sufficient funds remain to com-
plete the construction thereof.
Within sixty days after completion of the constr uction 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 ac-
cordance with said plans and specifications , that all costs have been
paid, and if at that time any funds remain in said combined Waterworks
Improvements Constructkn Fund Account the same shall be transmitted
by said Depositary to the Treasurer of said City and be by said
Treasurer paid into the Bond and Interest Reserve Account.
Section 19. The books of the City Treasurer shall show the
amount of moneys received from the proceeds of said bonds , and the
expenditure of such funds for the purposes set out in this ordinance
upon estimates and bills to be approved by the City Council, except
as herein otherwise provided.
Section 20. If any section, paragraph, clause or provision
of this ordinance shall be held invalid, the invalidity of such
section, paragraph, clause or provision shall not affect any of the
other provisions of this ordinance.
Section 21. All ordinances, resolutions or orders, o r
parts thereof , in conflict with the provisions of this ordinance are
to the extent of such conflict hereby repealed.
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Section 22. That within ten days after the passage of this
ordinance by the City Council and its being signed by the Mayor
this ordinance shallbe 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 nunbering
twenty per cent (20%) of the number of electoass voting for Mayor of
the said United City in the last preceding general municipal election,
requesting the submission to the electors of said United City of
the question of constructing the improvements and extensions to the
Waterworks system of said City and issuing the bonds herein provided
ford, then this ordinance shall be in full force and effect.
PASSED by the City Coun� of he nited City of the
Village of Yorkville on the��ay 0; , 19 liO
I dtroduced:
Recorded, deposited and filed in the of ice of the City
Clerk of said United City, this may of , A. D. 19-610L.
OSigned:
mayor
Attest:
City Clerk
Published on the _�'4 day of lge O
City Clerk
- a
CERTIFICATE .OV PUBLICATION
KENDALL COUNTY RECORD
;
I, arm R. F. MARSHALL, Publishers of the KENDALL
COUNTY RECORD, Yorkville, Illinois, do hereby certify that we are the Publishers of
the KENDALL COUNTY RECORD, a weekly secular newspaper of general circulation
regularly published in the VILLAGE OF YORKVILLE, in the COUNTY OF KENDALL PAGE 10
and STATE OF ILLINOIS; and I hereby further certify that the notice, a copy of which KENDALL COUNTY RECOI
YORKVILLE,ILLINOIS
is attached hereto,in the matter of - .... .... .. .... k/ G
THURSDAY, MAY 18, 19E
0 0... .... .....
was published once each week for . . !� ✓� . ...,�uct:essi a weeks i said newspaper, s ?�` "�" ^A]Zi(Legal
Ordintan
the first insertion being on the ..!..� .. .. . day of . ....l:.a.�..��:t:.... .... .. ., 19.x'. .(. ., t' AN ORDINANCE authorizen
providing for the issue of
Water Revenue Bonds
and the last insertion being on the . ... day of ... . . . .. .. ... .. .... .. .. .... -.. .. ., United City of the Ville
Yorkville, Kendall Count
and I further certify that the said Kendall County Record was regularly published nois, for the purpose of
ing the cost of const
continuously for more than six months in the Village of Yorkville in said County, next necessary improvements i
preceding the first publication of said notice, and that I am duly authorized to make tensions to the existing
works System of said C11
—1hinn all .the details i