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HomeMy WebLinkAboutOrdinances - 97 - 12/03/1934 - Sewer Bonds3 Section S. That the peried of use- Any of said bonds may be register - ORDINANCE NO. 97 h mess .of; said sewerage system,; ed as to principal at any time prior AN ORDINANCE AUTHORIZING _as, .improved`or'`extended as herein 'pro- to naturit'y,in the name of `the holder Y THE IMPROVEMENT AND. EX- posed, is hereby determined to be ; on the books;of said City in the office ° TENSION OF THE SEWERAGE forty (40):7ears. of ;the Cit reasurer, such reg•istra- SYSTEM OF i`IIE CITY OF Mc- Section 4. That to pay the cost of tion to be ted on the reverse side � f HENRY, PROVIDING FOR THE improving ;and extending the sewer- � of the bon _ by the City Treasurer, LSSUE OF $20;000 SEWERAGE age systern- of said City in the manner aforesaid, the said City must issue and.,, therea r the principal of such registered bonds shall be payable only ENUE BONDS 0 AID I r Y FOR Twenty .'.thousand' ($20,000) dolIars'to the reestered holder, his legal ' THE PURPOSE OF 11. THE C O'ST OF of its sewerage revenue bond : representative or assigns. Such regis- .RAYING C�STRUCTING SUCH I M - Section:,t. That for the purpose of def raying the cost of spch improve. bonds shall be transferable to er registered holder or back to it P VEMENTS AND EXTEN- ments and .extensions td_he sewerage r only on presentation to the SI(;NS, PRESCRIBING ALL DE- s3atem of the.City of McHenry there City Treasurer, with a legal assign - TAILS OF SAID BONDS,.AND be issued- and sold sewerage revenue ment duly acknowledged or approved. PRQ'hDING FOR THE COLLEC- bonds of said City, to= be desi eted Registration of any such bonds shall TION, SEGREGATION AND DIS- "Sewerage 'Revenue Donis,',!w the not affect the negotiability of the TR14tUTI0N OF THE REVENUES principal amount of Twentiousand coupons thereto attached, but: such OF THE SEWERAGE SYS°r'EM dollars ($20,0W), which 1o%s shall coupons shall be negotiable by deliv- OF SAID VILLAGE FOR THE Mbar• date of August 15, 1934, be of ery merely. r PURPOSE OF PAYING ;THE the' denomination of $1,000 each, be Section 7. The said bonds and cou- COST OF TH OPER'ATIONriAND ninnbered consecutively from 1 to 20. pons attached thereto shall be in sub- MAINTENAN�d THEREOF,. PRO- inqjusive, beat+ in'teregt at the rate of stantially the following form: VIDING AN ADEQUATE;+,DE- four. per centum '(4%) per annum, (Form of Bond) ° PRECIATION FUND THEREFOR payable semi-a'r►nuaIly;"'n the Vf- UNITED .STATES OF AMERICA AND PAYING THE PRINCIPAL teenth day of February�nd of August STATE OF ILLINOIS, COU', iY AND INTEREST OF THE SEWER- in each year, and l matur, in OF M4cHIENRY AGE REVENUE BONDS �- numperital order on st 15 ir. each CITY C',F "ricHEN'RY WHEREAS it is deemed advisable for the best interests of the years and in 'the amounts as SEWERAGE RF°'ENUE BOND No...................$1 . necessary and follows: '000 "N of the City of McHenry, McHenry i Numbers Amount 5 ._,, I KTTOW ALL M BY 'I 'ABBE County, Illinois, to improve and ex-1 1 $1,000 19'. PRESENT8 toot ti =_ City o Me - tend its sewerage system by the con- : 2 E000 19 Henry, McHenry Cu sty, Illinois, for struAion of a sewage treatment plant, 3 1 000 1939 value; received, here` y _ promises . to pay to bearer, `or if tt i _. be-regis- connecting sewers and outfall sewer I including landscaping of plant site; y 4 1,000 1940 5 1,000 1941 -bond tered, as hereinafter provided, then and 6 1,000 1942 to the registered holder hereof, solely - WHEREAS, the total cost of such 7 1,000 1943' from the Sewerage Fund of the City proposed improvements and exten- . 8 1,000 1944, of Miclfenry as hereinafter mentioned sions to the sewerage system of the ` 9 1,000 1945 , and not otherwise, the sum of One Thousand Dollars ($1,0W) on August - said City has been estimated by en- gineers employed for that purpose to 10 1,000 1946 ' 11 1,000 1947 15, 19......... together with interest on tw be $25,W0; and 12 1,000 194R said sum from date thereof until paid WHEREAS, the City does not have 13 1,000 1949 at the rate of four per cent (4�Ja) per sufficient funds available for the pur- ? 14 1,000 1950 annum, payable semi-annually on the pose of making such improvements • 15 1,000 1951 fifteenth day of February and of and extensions to its sewerage system, 16 1000 1952 August in each year upon resenta-' p and it will be necessary for it to bor- 17 1�000 1953 tion and surrender of the annexed in - row for that purpose the sum of 18 1,000 1954 terescoupons as they severally be - twenty thousand ($20,0001) dollars and in evidence thereof to issue its bonds 19 and 20 2,000 1955 come - come -due. Bath principal and interest of this therefor; and and, Section 6. That both principal and �,� are, hereby made payable in any WHor; under the provisions of „ interest of said, sewerage revenue bonds be payable in any coin or cur- coin or currency which, on the respec- tive dates of payment of the said An Act authorizing cities, villages, incorporated towns and sanitary dis- ran. which on the res ective dates �' p principal and interest, is legal tender i tricts, !a population of less of payment of the principal of and is for the payment of public and private ,having j „ than 500,000 to construct or acquire, interest on the bonds, legal tender for the a of and debts, at the office of the City Tress - improve and extend a sewerage-a payment yment public private debts, at the office of the City Treas-' urer in the City of McHenry, Illinois. This bond is payable solely from item, impose and collect charges and rates for the use thereof, issue reve_ urer of the City of WI- enry, Illinois. revenues derived from the sewerage nue bonds payable solely, from the That said bonds be signed by the Mayor City, the system4 including all future improve - revenue derived from the operation of of said sealed with ments and extensions thereof not con - such system or improvement or ex- corporate seal of said City and at- strutted or acquired through the is- tension in paympent thereof, . to pro- tested by the City Clerk, and that the suance of sewerage revenue bonds vide for the operation of such sewer- interest cd coupons ons attached to said bo s p rl. payable solely out of the revenues of age system, and contract in relation be executed by the facsimile signa- such impravements,or_ extensions, of thereto," filed July 13, 1933 and in : tures of said Mayor and said City said City and not otherwisg, and is forge July 13, 1933, as amended , Clerk, and said officials, by the exe- issued undpr authority, of "An Act i n Act approved May 4, 1934 and n cution of said bonds', shall adopt as authorizing cities, villages, incorp forat- o force July 1, 1934, said City is surf_ and for their own ro r si proper signatures p -sanitary districts, hav- ed towns and �sanita to issue their respective facsimile signatures ing a population of less than 500,000 orized sewerage revenue bonds for the purpose a paying the appearing on said coupons. to construct or acquire, improve and cost of such improvements and ex- Said bonds,,together with interest extend a sewerage system, impose and tensions; thereon, shall be payable solely from collect charges and rates for the use NOW, THEREFORE, BE IT OR reyen.ue derived from the sewer- thereof, issue revenue bonds payable -'the D'AINE'D By the City Council of the 4 age system, including all future im- solely from the revenue derived from City of McHenry, McHenry County, provments and •extensions thereof not the operation of such system or im- in Illinois: constructed or acquired through the Proverruent or extension payment. Section 1. That the City of Mc- issuance of sewerage revenue bonds thereof, to provide for the operation Henry, eatery County, Illinois, im- payable solely out of the revenues of p of such sewerage systems, and con - tract in relation thereto," filed July prove and extend its present sewerage by the such improvements or extensions, of said City and said bonds shall not, in 113, 1933 and in force July 13, 1933, system construction of a sew- age treatment plant, connecting any event, constitute an indebtedness' as amended by an act approved May 1934 in force 1, 1934, for sewers and outfall sewer including of the City of McHenry within the meaning of any constitutional 1 4, and .July j the purpose of paying the cost of landscaping of plant site. 'Section- 2. That the cast of said o,. statutory limitation. constructing *nprovement4 ;and ex-' tensions to the sewerage system of improvement and extension of the said City McHenry, andthis bond said sewerage system has been es�ti- does not constitute an in-debtedness mated by engineers employed for that of said City within any constitutional purpose, and is now found by the City or statutory limitation. Council of the City to be the sum of Twenty-five Thousand ($25,000) Dol- lar's. 444 Hinder said Act and the ordinance Section 8. That upon the issuance Section 11. That any surplus in the adopted pursuant thereto, the entfre of any of the sewerage revenue bonds : Operation and Maintenance Account revenue derived from the operation of herein provided for, the entire sewer- may be transferred to either the Bond the sewerage system, including all age system of said City of McHenry, I Account or the Depreciation Account future improvements and extensions for the purpose of this ordinance, shall as the C'iy Council of the said City, thereof not constructed or acquired be operated on a fiscal year basis may. direct, and any moneys in the through the issuance of sewerage commencing the fifteenth day of Depreciation Account in excess of the revenue bonds payable solely out of August and ending the fourteenth day amount necessary for probable re - the revenues of such improvements or of August of each succeeding year. placements to be needed during the extensions, shall be deposited in a From and after the delivery of any then current fiscal year and the next separate fund designed as the "Sewer- (bonds issued under the provisions of ensuing fiscal year, as determined by age Fund" of said City which shall this ordinance, the entire revenues de- the City Council of the City of Mc- u be used_ only for_ tbx purpose of pay- rived from the operation of the sewer- Henry shall at o; ce be transferred ing the cost of operating and. main- age system, including all future im- from the Depreciation Account to the -. taining such system, providing an prove-ments and extensions thereof Bond Account, provided, however,-,, adequate depreciation fund and pay- not constructed or acquired through I that such transfers from the Opera- J,',, ing the .principal of and interest on the issuance of sewerage revenue I tion and Maintenance Account or the bonds payable,. out -of the reve-' Depreciation Account to the Bond Ae- the bonds of said City and that are . dx of such`:: improvements` or ex - issued under authority of said Act pue� count shall not operate as an abate - tensions, of the City of McHenry shall. nient of the Bond Account require - and are payable by their terms only be set aside as collected and be de- ments herein set forth. from the revenue of such system. posited in a separate fund which is Section 12. If on the first business' It is hereby certified and recited hereby created, designated as the day of any month the amounts held that all acts, conditions and things re -`Sewerage Fund" of the City of Me- in the Sewerage Fund are not suf quired to be done precedent to and Henry, which shall be used only in ficient to provide for all of the pay - in the issuance of this bond have been paying the cost of operation and main- ments into the Bond Account herein done and have happened and have tenance of said sewerage system, pro- required, then the amount of any de - been performed in regular and due viding an adequate depreciation fund, ficiency in such payments shall be - form of law and that provision has and paying the principal of and in- added to the amounts required to be been made for depositing in said terest upon the sewerage revenue paid into the Bond Account on the Sewerage Fund the entire revenues bonds of said City -that are payable first business day of the next ensuing received from the operation of said 1by their terms only from such reve- month. sewerage system to be applied in the IInue, and such fund shall be used only ,after enough of said bonds have manner as hereinabove -set forth. for* such purposes and is hereby been retired so that all amounts held This bond may be registered as to pledged therefor. . in the Bond Account, from whatever principal in the name of the holder Section 9. That there shall be es- source received, shall be equal to the on the books of said City in the of- tablished separate accounts in the aggregate principal amount of all of fice of the City Treasurer, such re. -is- Sewerage Fund, to be designated sev. said bonds remaining outstanding to- tration to be evidenced by notation of erally the "Operation and Mainte.n- g.ether with interest thereon to ma - said Treasurer, on the back hereof,ante Account" the "Depreciation Ac- turity, no further payments shall be after which no transfer hereof ,hall count," and the `Bond Account, into made into, the Bond Account from any be valid unless made on said books which there shall be, paid, on the first source. and similarly noted hereon, but it may business day of each month, all All amounts held in the Bond Ac- be discharged from suen registration moneys held in the Sewerage Fund, in count shall be used for the payment by being transferred to bearer, lions and in the order in which said after accordance with the following' provi- of interest on and principal of said which it shall be transferable by de- bonds, and until so used shall be de- livery, but it may be again registeren accounts are hereinafter mentioned: posited in a bank or bunks which are as before. The registration of this (a) There shall be paid into the members of the Federal Reserve Sys - bond •shall not restrict the ne otiabil- . Operation and Maintenance Account tem and the ' Federal Deposit Insur. an amount sufficient to .pay the rea- ity of. the coupons by delivery merely. ante Corporation or mta.y be invested sonable-expenses'°of operation and IN WITNESS WHEREOF said City in direct obligations of the Uhite•1 of McHenry, McHenry County, maihtenarice of said sewerage sys- Illi- States Government. tem for the period of one month; nois, by its City Council has caused (b) There shall be paid into the Section 13. That, while any of. said this bond to be signed by Ale Mayo+• and the City Clerk of said City, its Depreciation Account a reasonable Bonds remain outstanding or unpaid, rates charged for sewerage services corporate seal to be hereto affixed depreciation reserve, not exceeding s an amount equal to one -twenty - hall be sufficient at all times to pay and the coupons hereto attached to be fifth of one per centum (1/25 of the cost of operation and maintenance, signed by the facsimile signatures of 1%) of the value of said sewerage to provide an adequate depreciation said Mayor and said City Clerk, which system; fund and to pay the interest on and officials by the execution of this bond (c) There shall be paid into the principal of said bonds. There shall do adopt as and for their own proper Band Account an amount equal to be charged against all users of the signatures their respective facsimile at least one sixth (1/6) of the In- sewerage system, including the City signatures appearing on said coupons, terest becoming due on said bonds of McHenry, such rates and amounts and this bond to be dated August 15, on the next succeeding interest pay- for sewerage services as shall be ade- 1934, quate to meet the requirements of rent date plus an amount equal to ..........................................." at least one twelfth (1/12) of the this section. Charges for services Mayor of the City of McHenry principal of said bonds becoming rendered the City of McHenry shall Attest: due on the next succeeding bond be made against the said City and Form le Coupon) Sectiony date. Payment for 10. That, until such t i all into the Sewerage shall be from the col- as .and unless the aggregate o the same $20,00 this ordinance made monthly it Clerk Borate funds Fund created by No .................... moneys held in the Bond Account, ce as revenues derived On the ............ day of ......................• from whatever source received, . shall , from the operation of the sewera�•e 19....... the City of McHenry, Me- be equal to the aggregate interest and system in the same manner as other Henry County, Illinois, will pay to 'principal requiTmnents gf said' _bopds revenues are required to be deposited. bearer out of the Sewerage Fund of for the twenty-four (24) months: then i Any holder of any bond issued here - said City Twenty Dollars ($20.00), inext erruing, .there shall be paid onlunder, or, of any coupon representing in any coin or currency which, on the the first business day of each month -accrued interest, may, either in law date of payment hereof, is legal ter.- from the Sewerage Fund into the I or in • equity, by proper suit, compel der for the payment of public or Bond Account in addition to the the officials of the City of McHenry (private debts, at the office of the amounts equired by Sub -section (c) of to perform all duties required by law City Treasurer in the City of Mc- &_ctiO j s he;aof, to be so paid, an and by this ordinance, including the Henry, Illinois, being interest then � Rmount c. ual to twenty per centum, making. and collection of sufficient due on its Sewerage Revenue Bond t rates for sewerage services for that ! F. ; of %ae amount required iry sai�� g dated August 15, 1934, No .............. `Sub-sact:or (c) to bet so paid, such purpose and application of income and ........................................................: . , _. revenue therefrom. Mayor of the City of McHenry ;nxticb�ama tnts to b reserve Ted - contingen- ...................City Clerk '••t'-`s, to be used for the paymtent of In Whose Signatures any portion of interest on or principal Date of Name of City of said bonds in the payment of which Registration Registered Treasurer there would otherw-A be default. ........... ........ .................. ....I............... 445 Section 14. That it is hereby cov- E f business type o: provided that the motion 21. That any accrued in. enanted and agreed that while any of'! said bonds are outstanding no addi- City of McHenry shall not be required to the cost of such insurance frog. terest received from the sale of the bonds he' ein authorized 'shall be de-I tronal sewerage revenue bonds shall pay any source other than .from moneys Posited in the Bond- Account and ap- be issued unless the revenues derived in the Operation and Maintenance Plied toward the payment of interest from the sewerage system, including Account of said Sewerage Fund. coupons, next becoming due and pay.; all future improvements and exten- sions thereof not constructed or ac- Section 17. That the City of Me- ff Henry hereby able after delivery of said bonds• shall be. deposited in the Sewer- quired through- the issuance of sewer- i covenants and agrees with the holder or holders of said age Fund, out of the first proceeds age revenue lionds%payable,„�oiely c!vt bonds that it will: from the sale of said bonds, a sum of the revenues of such irnpravements (a). Keep proper .books of records! sufficient to pay interest thereon dun orextensions, for the fiscal year then ants accounts (separate from all ing the period of construction of said next preceding were sufficient to pay other records and accounts), in improvements and extensions to said all casts of operation and mainten- which complete and correct entries sewerage system, said sum to be in an ante, provide an adequate deprecia- tion fund and leave a balance equal shall be made of all transactions amount equal to the interest require• ment of said bonds for not exceeding .� to at least. one hundred twenty per relating to said sewerage system, and furnish to any holder of any nine months computed from the date ceniiuni (120o'n) of the aggregate of i of said bonds, upon written request of delivery thereof to the purchaser, (a) the principal and interest re- not more than thirty (30) days af- ryhich sum shall be used solely for quirements for such year on all bonds ter the close of each semi-annual theof paying the interest due then outstanding payable from the fiscal period, complete operating on said bonds during said period. revenues of the sewerage system, (h) i and income statements of said- Section 22. All ordinances, resolu- one year's interest on the total issue bonds than sewerage system, in reasonable de- tions or orders, or parts thereof, in the this of such additional propos-I� tail, covering such semi-annual conflict with provisions of or - ed to be issue,, :. ' e) an amount -of and not more than sixty dinance are to the extent of such cop - principal principal of such additional bonds i (60) days after the close of each flict hereby repealed. computed by dividing the total, amount of such issue the number, ' fiscal year, complete financial Section 23. This ordinance 4fter its Passage by the City Council and of years from date of issus to the j statements of said System covet_ ing such fiscal year, certified by approval by the Mayor shall be pub - final maturity date of such additional„ - the auditors of the City of Mc lished once in the McHenry Plain:- bond issue. However, this section Henry.ealer, y' a newspaper published . and shall not be construed as limiting in! (b) Permit any holder or holders, having -a general circulation in the ,any way, the City's power to issue' , y or any purchaser or anof said City of McHenry, and if no petition bonds to pay the cost of extending or I bonds then outstanding to inspect be filed' with the Clerk of said City improving its sewerage system for the of serving a ewer- at all reasonable times said within ten days (10) after the pub- lishing of this ordinance by fifteen, purpose particular ounts ago system and all records, accounts rocality within the municipality not and data relating thereto, and per cent (15%) of the voters voting theretofore served by its existing j (c) Furnish to any holder or hold - for Mayor of the said. City at the last j sewerage system, payable solely from ers, or any purchaser. of twenty - preceding general election, requesting, the revenue to be derived from the five per centum (25%) in principal the submission of the proposition c: operation of such extensions or im- amount of said bonds then cut- making the improvements and exten- provements. Section 15. That the City of Mc- standing, all data and information sione and issuing the bonds herein provided for, then this ordinance shall Henry hereby covenants and agrees relating to said sewerage system which may reasonably be request- be in full force and effect. with the holder or holders of said Introduced in the City Council and bonds that it will punctually perform Section 18That the provision of passed by the City Council of the City all duties with reference to said ' . this ordinance shall constitute a con - of McHenry on the 3rd day of De - sewerage system required by the con- and laws of the State of Illi- tract between the City of McHenry, I cember, 1934, and deposited and filed in the office of the City Clerk of said �stitutiorr nois, including the making and col- and the holders of the bonds herein City this 3rd day of December, 1934. I letting of sufficient rates for the authorized to be issued, and after the PETER A. NEI�SS, issuance of said bonds, no changes, sewerage system and segregating the revenues of said plant and the applS- j City Clerk. additions or alterations of any kind ' AFPR'OVED by the Mayor of flee cation of the respective funds created, shall be made, except as hereinbefor•e provided, until all of said bonds and City of McHenry this 3rd day of De - by this ordinance, and it hereby cov- enants and a green not to -sell lease cember°, 1934. the interest thereon shall have been PETER J. DOH'ERTY, ;aid , loan, mortgage or in any manner dis- pin full, or unless and until pro - Mayor of the City of MWenry. pose of or encumber said sewerage vision :hall have been made for the Attest: system, including all future improve -PETER thereof payment thzreuf. A. NE,ISS, j Section 19. That the proceeds from City Clerk. rents and extensions not con- strutted or acquired through the is- the sale of said bonds shall be usedf Published on the 6th day of Decem- ; suance of sewerage revenue bonds the or e improvement and extension the er of the sewerage •system of the said ber, 1934, in the McHenry Plaindeal- er, a newspaper puUli•sbed and having payable solely out of revenues of such improvements ar extensions, un- City by the construction of a sewage a general circulation in the City of til. of said bonda shalt have been treatment plant, connecting sewers ! McHenry. all _ paid fudl;: both principal and in- and outfall sewer including landscap- PETER A. NEISS, tereSt, or` unless and until provision ing of plant site in accordance with City Clerk. shall have lean made for the payment plans and specifications s therefor, pre - thereof. that pared for that purpose, now on file Section 16. That the City of Mc. in the office of the City Clerk and Benry hereby covenants and agrees open, to the inspection of the public. with the holder or holders of said Section 20. If any section, para . graph, clause or provision of this or - bonds that as long as any ofsaid bonds remain outstanding it will dinance shall be held invalid, the in - maintain in good condition and con- validity of such section, paragraph, tenuously .operate said sewerage sya•- clause or provision shall not affect any of the other provisions of this or- j ter, and will, in order to protect the dinance. of said holders, continuously . - �interest uWatain insurance on maid sewerage system of the same kind or kinds and ;: # in the- same amount as that which would normally be maintained by a (t private company engaged in a similar r i