HomeMy WebLinkAboutOrdinances - O-61-28.10 - 10/16/1961 - ISSUE $40 000 WATER SEWR REVENUE BONDSAN ORDINANCE creating an issue of
$40,000 Waterworks and Sewerage
Revenue Bonds, Series of 1961, of
,,the City of McHenry, McHenry= County,
Illinois, and providing for the pay-
ment and delivery thereof.
WHEREAS, the City of McHenry, McHenry County, Illinois,
has for many years long past owned and operated a waterworks system
and a sanitary sewerage system serving the needs of said City and
has combined said systems into a combined waterworks and sewerage
system (said combined waterworks and sewerage system,
together with improvements, extensions and repairs authorized by this
ordinance, and all further improvements and extensions thereof, or
replacements thereto, herein called the "system"); and
WHEREAS, the governing body of said City has heretofore
approved all plans, maps, files and specifications for the construc-
tion of needed improvements, extensions and repairs to said system
to efficiently collect and dispose of the domestic and industrial
wastes and their products within said City in the best interests of
the public health and sanitation of said City, and has determined
that said City will need to borrow $40,000 to pay, with cash on hand
in the amount of $23,000, the cost of said improvements, extensions
and repairs, and the income and revenue to be derived from the
operation of said system is hereby determined adequate to provide
for the payment of certain outstanding Waterworks and Sewerage
Revenue Bonds, Series of 1956 and the new bonds so proposed to be
issued in the principal amount of $40,000, as aforesaid.
NOW, THEREFORE, Be It Ordained by the City Council of the
City of McHenry, McHenry County, Illinois, as follows:
Section 1. That the existing combined waterworks and
sewerage system of this City shall be improved, extended and repaired
in accordance with the engineering report heretofore submitted to and
approved by this Council by W. A. Rakow & Associates, Consulting
Municipal Engineers, Elgin, Illinois, by the acquisition, construction
and installation of the following described properties, improvements
and equipment, together with all necessary appurtenances and connec-
tions used or useful in connection with the public convenience thereof,
viz:
(a) Construction of approximately 3,000 lineal
feet of 8-inch and 10-inch sanitary sewer, manholes
and appurtenances and a factory -built automatic under-
ground sewage pumping station (2 pumps at 250 9-P.m.
each.
(b) All easements, properties, work equipment and
appurtenances needful to the construction and conversion
of these improvements and to the integration thereof
with the existing waterworks and sewerage system of
said City for the proper and efficient operation thereof
to meet the requirements of the Sanitary Water Board
of the State of Illinois,
all as more fully set forth in itemized detail in said plans, files,
maps and specifications, hereinabove referred to and now on file for
public inspection in the office of the City Clerk, and the period of
usefulness of said combined waterworks and sewerage system, including
said described improvements, extensions and repairs, is hereby de-
termined by this City Council to be forty (40) years from the date of
the bonds herein authorized to be issued.
Section 2. That for the purpose of accomplishing the
needful improvements, extensions and repairs to said system as herein -
above described, there be issued and sold the bonds of said City to
be designated Waterworks and Sewerage Revenue Bonds, Series of 1961,
in the principal sum of $40,000, the proceeds from the sale thereof,
together with the sum of $23,000 to be made available by said City
from cash on hand, being hereby determined adequate to pay the cost
estimate of constructing said improvements, extensions and repairs
as hereinabove described. The bonds shall bear date of November 1,
1961, be of $1,000 denomination each, numbered from 1 through 40,
and shall mature serially in numerical order on May 1 in each of the
years and in amounts as follows:
$5,000 - 1963 through 1970
The bonds shall bear interest at the rate of Five Per Cent
(5%) per annum, to be payable on May 1, 1962, and semi-annually
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thereafter on November 1 and May 1 in each year until paid, and both
the principal and interest on the said bonds shall be payable in
lawful money of the United States of America at the American National
Bank and Trust Company of Chicago, Chicago, Illinois.
Said bonds shall be signed by the Mayor, sealed with the
corporate seal of said City, and attested by the City Clerk, and the
interest coupons attached to said bonds shall be executed by the
facsimile signatures of said Mayor and said City Clerk, and said of-
ficials, 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 and
sewerage system of said City, and such bonds shall not in any event
constitute an indebtedness of said City within the meaning of any
constitutional provision or any constitutional or statutory limitation.
Any of said bonds may be registered at the option of the
holder as to principal only, at any time prior to maturity, in the
name of the holder, on the books of said 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
transferred to another registered holder or back to bearer only upon
presentation to the City Treasurer, with a legal assignment duly ac-
knowledged 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 3. That said bonds and coupons attached thereto
shall be in substantially the following form:
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Number
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF MC HENRY
CITY OF MC HENRY
WATERWORKS AND SEWERAGE REVENUE BOND, SERIES OF 1961
$1, 000
KNOW ALL MEN BY THESE PRESENTS, that the City of McHenry,
in the County of McHenry and State of 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 Waterworks and Sewerage Fund of the City of McHenry, as
hereinafter mentioned and not otherwise, the sum of One Thousand
Dollars ($1,000) on May 1, 19 , and to pay interest on such
principal sum from the date hereof until paid, at the rate of Five
Per Gent (5%) per annum, payable May 1, 1962, and semi-annually
thereafter on November 1 and May 1 in each year, and until maturity
hereof upon presentation and surrender of the interest coupons hereto
appertaining as they severally mature.
Both principal of and interest on this bond are hereby
made payable in lawful money of the United States of America at the
American National Bank and Trust Company of Chicago, Chicago, Illinois.
This bond is payable solely from revenues derived from
the waterworks and sewerage system of said City and not otherwise, and
is issued under authority of the Illinois Municipal Code, and all laws
amendatory thereof and supplementary thereto, for the purpose of pay-
ing part of the cost, with other funds to be made available therefor,
of necessary improvements, extensions and repairs to the waterworks
and sewerage system of said City, and this bond does not constitute
an indebtedness of said City within the meaning of any constitutional
provision or any constitutional or statutory limitation.
Under said Code and the ordinance adopted pursuant thereto,
the entire revenue derived and to be derived from the operation of
the waterworks and sewerage system of this City shall be deposited
in a separate fund designated as the "Waterworks and Sewerage Fund
of the City of McHenry", which shall be used only for the purpose of
paying the cost of operating and maintaining such system, providing
an adequate depreciation fund, and paying the principal of and inter-
est on certain outstanding revenue bonds and bonds of said City that
are issued under authority of said Code and are payable by their terms
only from the revenue of such system, and creating and maintaining the
several accounts established by the ordinance authorizing the issue
of bonds of which this bond is one.
It is hereby certified and recited that all acts, condi-
tions 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 and in raising funds to promptly assure payment thereof, have
been done and have happened and have been performed in regular and
due form of law; that provision has been made for depositing in said
Waterworks and Sewerage Fund the entire revenues received from the
operation of said system, to be applied in the manner as hereinabove
set forth; and it is hereby covenanted and agreed that rates will be
charged for the use and service of such system sufficient at all times
to create and maintain the several accounts established by the ordi-
nance authorizing the issue of bonds of which this bond is one.
This bond may be registered as to principal in the name
of the holder, on the books of said City in the office of the City
Treasurer, such registration to be evidenced by notation of said
Treasurer on the back hereof, and 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 City of McHenry, McHenry 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
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the City Clerk, and the coupons hereto attached to be signed by the
facsimile signatures of said Mayor and said City Clerk, which of-
ficials, 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
November 1, 1961.
Attest:
City Clerk
(Form of Coupon)
Mayor
Number $
On the first day of 19 the City
of McHenry, McHenry County, Illinois, will pay to bearer out of the
Waterworks and Sewerage Fund of said City
Dollars ($ ) in lawful money of
the United States of America at the American National Bank and Trust
Company of Chicago, Chicago, Illinois, being interest then due on its
Waterworks and Sewerage Revenue Bond, Series of 1961, dated
November 1, 1961, numbered
Date of
Registration
(facsimile signature)
Mayor
(facsimile signature)
-' Ulty Clerk
(Form of Registration Certificate)
Signature of
In Whose Name Registered City Treasurer
Section 4. That upon the issuance of any of the Water-
works and Sewerage Revenue Bonds herein provided for, the entire
waterworks and sewerage system of said City, for the purpose of this
ordinance, shall continue to 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 during each year ending April 30, so long
as any of the outstanding Waterworks and Sewerage Revenue Bonds,
Series of 1956 and the bonds herein authorized to be issued are out-
standing, the entire revenues derived from the operation of said
system of said City shall continue to be collected and shall be set
aside as collected, and shall be deposited in accordance with the laws
of the State of Illinois governing the deposit of public moneys, in a
separate fund, which is hereby created, to be designated as the
"Waterworks and Sewerage Fund of the City of McHenry", which shall be
kept apart and segregated from all other moneys of said City and shall
be used only to create and maintain the several accounts hereinafter
specified for the purpose of paying the cost of the operation and
maintenance of said system, providing an adequate depreciation reserve,
and paying the principal of and interest upon all revenue bonds of
said City which by their terms are payable solely from the revenues
derived from the operation of said system, and such Waterworks and
Sewerage Fund shall be used only for such purposes and is hereby
pledged therefor.
Section 5. That for the accounting of all moneys and assets
of said Waterworks and Sewerage Fund at any time and from time to time
while any bonds herein authorized are outstanding and unpaid, there
are hereby created and established separate accounts to be designated
(a) the Operation and Maintenance Account, (b) the Depreciation
Account, (c) the Bond Account, (d) the Bond Reserve Account, (e) the
Surplus Account, and all deposits made to and all funds held in each
of said Accounts, respectively, shall be continuously secured as pro-
vided by the laws of the State of Illinois governing the deposit of
public moneys and into which there shall be paid on the first business
day of each month all moneys held in said Waterworks and Sewerage
Fund in accordance with the following provisions and in the priority
of said Accounts so created and established as follows:
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(a) Operation and Maintenance Account: There first shall
be set apart and paid out of said Waterworks and Sewerage Fund into
an Operation and Maintenance Account an amount considered necessary
and sufficient to pay the reasonable current expenses of operating,
repairing and maintaining said system for the current month.
(b) Depreciation Account: There next shall be deposited
in the Depreciation Account a sum sufficient to aggregate $600,00
each year (including the deposit and accumulation required under
the ordinance authorizing the outstanding Waterworks and Sewerage
Revenue Bonds, Series of 1956) until a maximum sum of $1200,00 is
on deposit in said Account, which is hereby found and determined to
be a reasonable amount necessary to accomplish the purpose for which
said Depreciation Account is established, and at which figure said
Account, notwithstanding any transfer therefrom as herein permitted,
shall thereafter be continuously maintained. The moneys in said
Account shall be used to pay the cost of necessary replacements to
the system, and shall not be used for extensions to said system,
except that the funds held in said Depreciation Account to the extent
necessary to prevent or remedy a default in the payment of the
interest on or principal of the outstanding Waterworks and Sewerage
Revenue Bonds, Series of 1956 and the bonds herein authorized,
including such bonds as may be hereafter issued and on a parity with
the bonds herein authorized,shall be used and held for use for that
purpose, and shall be transferred to the Bond Account, and whenever
such a transfer is made, the amount so transferred shall be added to
the next deposit to be made, and thereafter until full reimbursement
to said Depreciation Account has been made.
The moneys in said Depreciation Account may be invested
and reinvested in bonds or other obligations of the United States
Government maturing within five (5) years from the date of purchase
as may be authorized from time to time by resolution of the Mayor and
City Council of said City.
(c) Bond Account: There next shall be deposited in
the Bond Account, which shall be maintained at the American National
Bank and Trust Company of Chicago, Chicago, Illinois, for the purpose
of paying the maturing principal of and the interest accruing on the
Waterworks and Sewerage Revenue Bonds issued under the terms of this
ordinance, an amount at least equal to one -sixth (1/6th) of the inter-
est becoming due on all outstanding Waterworks and Sewerage Revenue
Bonds on the next- succeeding interest payment date, and beginning
with the fiscal year commencing May 1, 1962, and for each fiscal year
thereafter, an amount equal. to one -twelfth (1/12th) of the principal
becoming due on the next succeeding principal payment date, such equal_
monthly installments to produce not less than the following minimum
amounts in each f-scal year:
Fiscal Year Ending
April 30
1963
1964
1965
1966
1967
1968
1969
1970
Principal
and Interest
$ 82000
69750
69500
69250
69000
59750
51,500
59250
(d) Bond Reserve Account: There shall next be deposited
in the Bond Reserve Account a sum sufficient to aggregate $ 19000.00
each year (including the deposit and accumulation required under the
ordinance authorizing the outstanding Waterworks and Sewerage Revenue
Bonds, Series of 1956) until a maximum of $7,000.00 is on deposit in
said Account, and at which figure said Account, notwithstanding any
transfer therefrom as herein permitted, shall thereafter be continu-
ously maintained, and all moneys therein shall be only used by the
Treasurer hereof as may be needed from time to time in the payment of
the interest on or principal of the bonds herein authorized whenever
there exists a deficiency in the Bond Account hereinabove established,
and all withdrawals therefrom for that purpose shall be reimbursed
from the next revenues available therefor as provided therein.
The moneys in said Bond Reserve Account shall be deposited
with the American National Bank and Trust Company of Chicago, Chicago,
Illinois, and may be invested and reinvested in bonds or other obliga-
tions of the United States Government maturing within five (5) years
from date of purchase as may be authorized from time to time by
resolution of the Mayor and City Council of said City.
(e) Surplus Account: Any surplus funds remaining at the
end of any fiscal year after providing for all of the deposits herein -
above listed in subparagraphs (a) through (d), and after the reimburse-
ment of any account that is depleted by withdrawals, shall be
deposited in the Surplus Account. The moneys in said Surplus Account
shall be used or held for use exclusively (a) for the purpose of
making improvements and extensions to the system or (b) for any lawful
purpose.
Section 6. That the City of McHenry hereby agrees to
carry insurance on said system of the kinds and in the amounts which
are usually carried by private parties operating similar properties,
including without limiting the generality of the foregoing, fire,
windstorm insurance, public liability, and any additional insurance
covering such risks as shall be recommended by a competent independent
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engineer employed for the purpose of making such recommendations, and
all moneys received for losses under such insurance policies as insure
against physical damage to or loss of the system shall be deposited in
the Depreciation Account and shall be used in making good the loss or
damage in respect of which they were paid, either by repairing the
property damaged or replacing the property destroyed, and provision
for making good such loss or damage shall be made within ninety (90)
days from the date of the loss. 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 were
received.
The payment of premiums for all insurance policies re-
quired under the provisions of this section shall be considered an
operation and maintenance expense.
Section 7. That while any of the bonds issued pursuant to
this ordinance remain outstanding or unpaid, rates charged for water
and sewerage services shall be sufficient at all times to pay all
costs of operation and maintenance of the system, to make the payments
and maintain the balance as required in the Depreciation Account, to
pay the principal of and interest on all bonds authorized hereunder,
and to make the payments and maintain the balance as required in the
Bond Reserve Account, as is hereinabove provided for. There shall be
charged against all users of the system, including the City of McHenry,
such rates and amounts for water and sewerage services as shall be
adequate to meet the requirements of this section. Charges for
services rendered the City shall be made against the said City, and
payment for the same from the corporate funds shall be made monthly
into the Waterworks and Sewerage Fund created by this ordinance in
the same manner as other revenues of the system are so required to be
deposited.
In addition to the foregoing said City covenants not to
provide any free service of said system and to pay promptly for the
use of all facilities connected, and to be connected, with said
system.
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It is expressly herein covenanted to the extent permitted
by law that said City will not grant a franchise for the operation
of any competing waterworks system or sewer system within the City
of McHenry, and that the bonds herein authorized to be executed shall
constitute legally enforceable liens upon the earnings of the combined
waterworks and sewerage system of said City, including all further
extensions, additions, and improvements thereto, whether acquired
through purchase, contract, or otherwise.
Section 8. In the event said City defaults in complying
with any covenant contained in this ordinance, any holder of any bond
issued hereunder, or of any coupon representing interest accrued there-
on, may apply for the appointment of a receiver, or may, either in law
or in equity, by proper suit, compel the officials of said City to
perform all duties required by law and by this ordinance, including
the making and collecting of sufficient rates for water and sewerage
services for that purpose and the application and segregation of all
income and revenue therefrom in accordance with the requirements of
this ordinance.
Section 9. That it is hereby covenanted and agreed
with the holders of the bonds herein authorized that said City will
not issue any other or additional bonds or other evidences of obliga-
tions of said City payable from or in any way creating a charge upon
the income and revenue to be derived from the operation of said
system, except as herein provided:
(A) Said City reserves the right to issue additional
bonds for constructing further necessary improvements, extensions,
repairs and rehabilitations to the properties comprising said system
as shall be determined necessary for the continued and efficient
operation of said system by a certificate filed of an independent
engineer in responsible charge of such further improvements, exten-
sions, repairs and rehabilitations,
(i) giving a reasonably detailed description of such
work, an estimate of the cost thereof, and an estimate of
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the time of completion thereof; and
(ii) showing the feasibility of such revenue financing
with reference to then existing rates and anticipated
earnings based thereon, which certificate shall be approved
by and shall be made of public record in the proceedings
of the governing body of said City before any such addi-
tional bonds are authorized
provided, however, that no such additional bonds for such purpose shall
be issued unless and until the gross cash operating revenues of said
system earned for the last fiscal year ending April 30 immediately
preceding the authorization of any such additional bonds, as shown
by an audit of an independent certified public accountant, were
sufficient to pay all costs of the operation and maintenance of said
system, to make the annual payments to the Depreciation Account and
to the Bond Reserve Account, respectively, as hereinabove required,
and to make up any and all deficiencies then existing as hereinabove
specified in Section 5 of this ordinance, and leave a balance equal
to one and one -tenth (1-1/10) times the maximum amount of interest
and principal that will become due in any fiscal year subsequent to
the issuance of such additional bonds on the bonds of this issue then
outstanding and on the additional bonds then proposed to be issued.
Said City further covenants that if any additional bonds
are so issued as permitted by this paragraph, the maximum amounts
to be deposited in the Bond Reserve Account and the Depreciation Ac-
count shall be increased in the proportion to the principal amount of
any additional bonds so issued.
(B) Said City reserves the right to issue bonds to refund
the $40,000 principal amount of Waterworks and Sewerage Revenue
Bonds, Series of 1961, herein authorized, or any portion thereof, with
the consent of the holders thereof, from time to time as may be deter-
mined necessary or expedient and for the best interests of this City,
and all such refunding bonds so authorized and issued shall be payable
from the income and revenue derived and to be derived from the
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operation of said system on a parity with any of the said $40,000
principal amount Waterworks and Sewerage Revenue Bonds, Series of
1961, herein authorized to be issued as may not be refunded and as
may be outstanding at the time of the issue and delivery of any of
said refunding bonds, as aforesaid.
(C) When the conditions specified in paragraphs A and B
of this section for the issue of additional bonds for the construc-
tion of further necessary improvements, extensions, repairs and
rehabilitations, or for the refunding of the bonds herein authorized,
have been met, then upon the issue thereof any such additional bonds
when issued shall be entitled to the equal and proportionate benefit
and security of the pledge of the revenue and income derived and to
be derived from the operation of said system with the bonds herein
authorized without preference, priority or distinction as to partici-
pation of such pledge of revenue, or in the preference of one bond
or coupon of each of said issues over or from any other issue, by
reason of priority in execution, issue, delivery or negotiation
thereof, or by reason of the date or dates of said bonds, or the date
or dates of maturity thereof, or for any other reason whatsoever,
the intent hereof being that each and all of said bonds, as aforesaid,
and of coupons evidencing interest thereon, shall have the same right
and pledge as to payment and security with the same legal effect as
if each and all of said bonds and coupons had been executed, issued,
delivered and negotiated simultaneously as one proceeding.
Section 10. That the City of McHenry hereby covenants
and agrees with the holder or holders of said bonds that it will
punctually perform all duties with reference to said system, includ-
ing the making and collecting of sufficient rates for the use and
service of said system, all as required by the Constitution and laws
of the State of Illinois, and segregating the revenues of said system
and maintaining the Waterworks and Sewerage Fund and the application
of the respective Accounts created by this ordinance, and it hereby
covenants and agrees not to sell, lease, loan, mortgage, or in any
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manner dispose of or encumber said system, including any and all
extensions and improvements that may be made thereto, or the income
and revenue derived therefrom, except as permitted in Section 9
hereof, 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 thereof.
Said City further covenants and agrees with the holders
of said Waterworks and Sewerage Revenue Bonds authorized hereunder
to maintain in good condition and continuously operate said system,
and to make, enact and enforce all needful rules and regulations and
ordinances for the efficient management and proper maintenance and
protection of such system, and for the use and service thereof.
Section 11. That said Waterworks and Sewerage Fund and
the Accounts created under Section 5 hereof, shall be audited within
sixty (60) days after the close of each fiscal year by an independent
firm of certified public accountants, and such audit and Accounts
shall be open for inspection at all proper times to any holder of
bonds issued under the provisions of this ordinance, or any one acting
for or on behalf of such bondholder. Such audit report shall include
the following items: (a) Balance Sheet, (b) Operating statement,
(c) Comments of the auditor relative to the fulfillment of ordinance
provisions and the manner in which the system has been operated and
any recommendation for improving the operation of the system, (d)
Insurance data, (e) Number of metered customers; number of unmetered
customers; number of properties connected to the system; number of
hydrants, and (f) Gallons of water passing through master meter and
gallons of water billed and copies of such audit report shall be
furnished the original purchasers of the bonds herein authorized, and
shall also be furnished to any bondholder upon request.
Section 12. That the provisions of this ordinance shall
constitute a contract between the City of McHenry 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
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be made hereto, except as hereinbefore provided, until all of said
bonds and the interest thereon shall have been paid in full, or un-
less and until provision shall have been made for the payment thereof.
Section 13. That the proposal of Ballman & Main, of
Chicago, Illinois, to purchase the said bonds herein authorized in
accordance with their contract for the purchase thereof be and the
same is hereby in all respects ratified, approved and confirmed, and
said bonds when duly executed as provided herein shall be delivered
to the Treasurer who shall receipt for the payment of said bonds
against delivery thereof to said purchasers at a price of par
and accrued interest from the date of said bonds to the date of
the delivery and payment thereof, the said purchase price being such
that the interest cost to this City does not exceed Six Per Cent
(6%) annually computed to maturity according to the standard table of
bond values, as provided and permitted by the statutes of the State
of Illinois thereunto enabling. All proceeds derived at the sale
and delivery of the said bonds shall be accounted for by said
Treasurer as follows:
(i) All accrued interest from the date of the
bonds to the date of the delivery and payment thereof
shall be deposited in the Bond Account at the American
National Bank and Trust Company of Chicago, Chicago,
Illinois;
(ii) The proceeds received as principal, together
with the sum of $23,000 cash on hand, shall be deposited
by the Treasurer in a separate and special account of
said City to be known and designated as the "Water-
works and Sewerage System Bond Construction Fund
Account," and such deposits shall be made in the American
National Bank and Trust Company of Chicago, Chicago,
Illinois, as depositary, to be secured in the manner,
form and time as by law required, and all proceeds
held in said Construction Fund Account shall be used
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and held for use solely to construct the improvements,
extensions and repairs to the combined waterworks and
sewerage system of said City, as hereinabove described
in this ordinance, and the beneficial interest to all
moneys held in said Construction Fund Account at the time
of the original deposit therein and from time to time
thereafter shall be in the holder or holders of the bonds
herein authorized, and all disbursements therefrom shall
be made by the Treasurer from time to time but only upon
submission to him and to said depositary of:
(a) a certificate by the engineer in responsible
charge of the construction of said improvements and
extensions stating the nature of the wort completed
and the amount due and payable thereon, and that suf-
ficient funds remain to complete the construction
thereof, bearing the endorsement and approval of the
Mayor of said City and accompanied by;
(b) an order for payment upon said Treasurer signed
by the Mayor of said City and the City Clerk, which
order shall state specifically the purpose for which
said order is issued; and the Mayor of said City,
the City Clerk, and the City Treasurer are each hereby
authorized and directed to execute and deliver to the
American National Bank and Trust Company of Chicago,
Chicago, Illinois, as depositary, such certificates,
proceedings, and agreements as may be necessary or
convenient to establish said Construction Fund Account
herein created and to properly secure all proceeds
thereof, and to evidence compliance herewith in the
making of any withdrawals therefrom.
Within the sixty (60) days after completion of the
construction of the improvements and extensions herein authorized,
the City of McHenry agrees to deliver to said depositary an original
counterpart of a certificate (herein called the "Certificate of
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Completion") signed by the Mayor and by the City Treasurer, and having
endorsed thereon the approval of the engineer in charge of such
construction, stating that said improvements, extensions and repairs
have been fully constructed and completed in accordance with the
plans, maps, files and specifications therefor as recited in this
ordinance, and that the same have been fully paid for, or that
funds sufficient so to pay for the same remain in said Construction
Fund Account, giving the date of final completion and the total
cost of construction, and the amount, if any, of such construction
cost then remaining unpaid, together with an original counterpart
of the opinion of counsel for said City to the effect that all
property, real, personal and mixed, connected with or forming a part
of, or necessary to the operation of said system as completed, is
owned by said City and covered by the lien of this ordinance, and
upon receipt of such Certificate of Completion and opinion of counsel
as mentioned, said depositary, after retaining in said Construction
Fund Account a sum sufficient to pay the balance of the construction
cost remaining unpaid as shown by said Certificate of Completion,
including any items then in controversy, shall deposit all moneys
then remaining with the American National Bank and Trust Company of
Chicago, Chicago, Illinois, the paying agent for said bonds, in the
Bond Account herein created.
Section 14. That 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 15. That all ordinances, resolutions, or orders,
or parts thereof, in conflict with the provisions of this ordinance
are, to the extent of such conflict, hereby repealed.
Section 16. That this ordinance, after its passage and
approval by the Mayor shall be published once in the McHenry
Plaindealer, a newspaper published and having a general circulation
in the City of McHenry, and shall be in full force and effect after
such publication in the manner, form and time as provided by the laws
of the State of Illinois thereunto enabling.
Passed ��C' 7lJ��c ld /v 1961.
Ayes: �%`�/i�•:�.'�y„ �c rw�r��f,
4g4e
r
Nays:
Approved C61-7-ot',� �; /1961.
At �
CitY Clerk
Published �`l,�'� / 1961.
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10/5/61
STATE OF ILLINOIS
SS
COUNTY OF MC HENRY
do hereby certify that I
f
am the duly qualified and acting City Clerk of the City of McHenry,
McHenry County, Illinois, and as such City Clerk that I am the keeper
of the records and files of the City Council of said City; and
I do further certify that the foregoing is a full, true
and complete treanscript of that portion of the minutes of the meet-
ing of the City Council of said City, held on CCer,' /� 9
1961, insofar as same pertains to the reading and adoption of
an ordinance entitled,
"AN ORDINANCE creating an issue of $4o,000
Waterworks and Sewerage Revenue Bonds, Series
of 1961, of the City of McHenry, McHenry
County, Illinois, and providing for the pay-
ment and delivery thereof."
and that a true and correct copy of said ordinance as so adopted is
attached hereto, all as appears from the official records of said
City Council now on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my official
hand of office at McHenry, Illinois, this __L6 day of CC'
1961.
y
d
City Cie of the City of McHenry,
McHenry upounty, Illinois
(SEAL)
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