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HomeMy WebLinkAboutOrdinance #90.:� ' ,y� ...� . • a �. � • . . • ' "� �+ � � �' ...� � • . • � l ORDINANCE NUMBER _�O "y ' AN ORDI}lT�NCE authorizing $1,825�000 Waterworks and Sewerage Revenue Bonds, Series o� �963 0� t1h� Ctt�* of Canton, �'ul.�ou County� Illinois� and providing for the payment� sale and delivery thereof� and makin� certain covenants in that eonnection. � � * � � � a� WIiEREAS� the City of Canton (hereinafter sometimes re�erred to as the "municipal3ty" } hae for meny years long past owned and operated a waterworke system including a source of water supply serving the needs of said municipality� and has heretofore combined its sanitary sewerage syatem end its waterworks system into a combined waterworks and sewer- age system (which combined waterworks and sewerage system� ineluding sll properties� �acilities and equipment now or hereaf'ter owned by the municipality� whether lying within or without its baundariea� and in- cluding all real estate and real and personal property of every kind and nature compriaing any part of or uaed or useful or convenient in the operation of the combined waterworks and sewerage system of the munici- pality� ia sometimes hereinafter referred to ae the "system"�; and WHEREA3� the municipality has heretof'ore issued and currently has outstanding two issues of bonds which en�oy prior claim on the revenues of the syetem and in order to construct needful improvements and exten�- aiona to the system, it is required that said outstanding bonds be re- Punded and retired as hereina�t�r provided� which outstanding obliga- tions are more particularly described and have �he apecifications as follows : $53,000 2-3/�y6 Waterworka and Sewerage Revenue Bonds� dated May l� 19�+6� maturing November 1� 1969 through 1971 and currently callable Por redemption on any interest payment date; and $135�000 3-l/2� Waterworks and Sewerage Revenue Bonds, dated May l, 1938, maturing May l, 1964 through 1968, which bonds are not currently callable for redemption; and WHEREAB� the municipality has funds on hand adequa�e to pay interest on said isaues of bonds to maturity and anticipates the payment of principal of said outstanding obligations out o� the proceeds oP the bonda hereinaPter authorized; and � b 1 i • V � ' � t` y .. • • . WHEREAS� the governing body of said municipality Y�as heretofore , approved plans� specificationa and an est3mate of cost for �the contruc- tion of needed improvementa and extensions to said combined aystem in the amount of $1,825�000, 3ncluding legal, engineering� bond discount and cost of refunding� and said municip�,lity does not have funds avail- ab].e to pay the cost o� said improvements and extenaions and it will be necessary for said municipality to borrow $1�825�000 and in evidence thereof issue its Waterworks and Sewera�e Revenue Bonds� Series o� �963, as hereinafter provided; and WHEREAS� the revenues of the system have not been pledged or hypothecated in whole or in par� in any manner or for any purpose excep� for the payment of the described above outatanding bonds which are to be refunded as hereint�fter provided; and WHEREAS, pursu�,nt to the provisions of the Illinois Municipal Code, effective July l� 1.961, th3s municipr�lity is authorized to issue Water- worka and Sewerage Revenue Bonda in an amount sufficient to pay the cost of constructimg euch improvements and extensions and the income and revenue derived� and to be derivedt from the operation of �he system will be fully adequate to provide for the payment of the new bonds so proposed to be issued. NOW� THEREFORE� Be It Ordained by th� City Council of the City of Canton� Fulton County, Illinoiai as follows : Section 1. That the existing combined waterworks and sewerage system of this municipality shall be improved and extended in aecordance with the en�ineering xeporta heretofore submitted to and approved by this City Council including sanitary main and lateral. sewers to provide service for areas with3.n the C3.ty limits not now served; �runk sewer mains to provide for further growth of the City; improvement of stream channel down stream from outlet of present combined sewer; water treat- ment plant improvements including ta,dditional fil.ters and appurtenanees� together with such additional water treatment plant improvements as necessary to make t� complete unit; a water storage tank to aerve the water distribution system; water mains connecting the water storage tank to the distribution system as may be needed to improve pressure -2- . ' ` ° a • , ' •• conditions and to provide more adequate fire protectior�� together with . . � al1 excavations� backfill� pavement repairs, manholes� valves� fire hydrants, pumpiug facilities� force mains, sewa�e treatment facilities and other appurtenant items necessary to integrate the improvementa into the existing combined waterworks and sewert��e system; all as more fully set forth in itemized deta3l in the plans, files� maps� specifica- tions and coat estimate heretofor� approved by the City Council and now on file �or public inspection 3.n the o�fice of the City C1erk; and thia City Council does hereby determine the period of usefulne$s of said system� including said described improvements and extensions, to be forty years from the date oP the bonds herein authorized to be isaued. Section 2. That for the purpoae of accomplishing the needful improvements and extensions to the system of this municipality as here- inabove described� including the refunding of the outstanding Waterworks and Sewerage Revenue Bonds deacribed in the preamble as aforesaid� there be issued and sold the negotiable bonds ofl the City of Canton to be designated "Waterworks and Sewerage Revenue Bonds, Series of 1963" (hereinafter sometimes referred to o,s the "bonds") in the principal amount o�' $1�825�000� the proceeds from the eale thereof� being hereby determined adequate to pay the cost es�imate oP the improvements and extenaions described hereinabove. The bonda ehall bear date of May l� 1963, be o� $1�000 denomination ea,ch� numbered from 1 through 1825, and sha11 bea,r interest at the rates and mature serially 3n numerical order on May l� in each oP the years And in amounts as follows : Amount Coupon Bond Numbers Maturity $25�000 3 1/2fo 1 - 25� inclusive M�,y I.� �96�+ 25,000 3 1/2% 26 - 50, " May 1, 1965 25,000 3 1/2� 51 - 75, „ May i, 1966 30,000 3 i/2� 76 - io5, '� M�y i, i967 30,000 3 1/2� a.o6 - 135, " r�,y 1, 1968 30,000 3� l36 - 165, " May 1, 1969 30,000 3� 166 - 1�� , " May 1, 1970 25,000 4� i96 - 220, 11 May i, 197i 25,000 �+� 221 - 245, " M�,y 1, 1972 25,000 �+� 2�6 .. 27p, " r�,y i, 1973 25�000 k� 271 - 2959 " Mt�y 1., 197�+ 25,000 �+� 296 - 320, " May 1, 1975 30,000 4� 321 - 350, " May l, ].976 30,000 �+� 35l - 380, " May 1, 1977 30,000 �+� 381 - �+lo, t� May i, i978 35,000 �+°� �+11 - �-�+5, " May 1, 1979 35,o00 �+� �+�+6 - �+80, " May l, 1980 -3- . . _ , � Amoun� Coupon Bond Numbers • Maturi�y �35�000 �+� �+81 - 515, inclusive May l, 1981 �+O,000 �+� 5�6 - 555, " May 2, 1982 1+0,000 �+� 556 - 595, " Mr�y 1, 1g83 �+5,000 �+� 596 - 6�0, ,� May 1, �.J8�+ 50,o00 �+� 6�+1 - 6go, " May 7., 1985 50,000 4� 69� - 7�+0, " May l, 1986 So,o00 �+� 7�+z - 790, " May l, 1987 55,000 �+� 791 - 8�+5, " M�y 1, 1988 55,000 �+� 8�+6 - 900, " May l, i9S9 55,000 �+� 901 - 955, " May 1, 1990 60 000 �+� 956 - �015, " May �, 1991 60,000 �+� 1016 - 1075, " May 1, 1992 60,000 �+ �./�+� 1076 - 1135, t' May 1, 1993 60,000 �+ 1/�+� i�.36 - z�,95, " May l, 199�+ 60,000 �+ i/�+� llg6 - 1255, " May 1, 1995 60,000 � �/�+� 12g6 - 1315, " M�y 1, lgg6 65,000 � i/�+� 13i6 - 1380, " May a., 1997 70,000 �+ i/�+� 1381 - z�+5o, " May 1, 1998 70,o0o t� 1/�+� 1�+5i - i52o, " May 1, 1999 75,000 �+ 1/�+% 1521 - 1595, " May 1, 2000 75,000 � 1/�+� i596 - i67o, " M�y a., 2001 75,000 � 1/1+� 1671 - 1.7�+5, " May 1, 2002 80,o00 �+ 1/�+% 17�+6 - 1825, " May 1, 200 3 Bonds numbered 596 to 1825, inclusive� in the ta,ggregate �,mount o� �l'?_30�000� shall be subject to redemption and payment prior to their maturity, at the option of the City, at par and accrued interest to da�e of redemption on May l, 1983, or on any interest payment da�e therea�ter. A1.1 of said bonds numbered sg6 to 1825, inclusi.ve, sha11 be redeemable in the inverse order in which they are numbered; that is to say bond number 1825 shall first be redeemed before bond number 182�+ is redeemed� and so on� continuing such priority of redemption as '�o t�ll said bonds sub�ect to redemption prior to ma,turity. Written notice of its option to redeem �nd p�y prior to their maturity any or all of said bonds which by their terms sha,ll have become sub,ject to redemption and payment shall be given by the City to the holder of each such bond called for redempt�.on, iP kno�an, by registered mail at least thirty ( 30) days prior to the date of redemption or if �he holders of eny sueh bonds are unknown, then notice of auch redemption shall. be given by publication of such notice at least once in a newspaper published and. ofl general circul.ation in the City of Chicagot I1linois� and the date of the publica,tion of such notice shall be not less than thtrty ( 30) days priar to such redemption date� and �,ny such notice shall deaignate the d�te and pla�ee of redemption of s�,id bonds� which shall be the American National Bank and Trust Company of Chicago, -�+- � ; , . , � in the City of Chicago, Illinois, shall designate the serial number and the aggregate principal. amount of the bonda to be redeemed, and sha11 indicate that on the designated date of redemption said bonda will be redeemed by payment of the principal thereof and accrued intereat there- on up to and including the date oP redemption and that from and after the desi�nated redemption date in�erest in respect of said bonds so called for redemption shall cease. The bonda shall bear interest at the rates hereinbePore set out, which interest shall be payable May l� 196�+, and semi-annually there- after on November 1 and May 1 in each year until paid� and both prin- cipal of and interest on said bonds shall be payable in lawful money o� the United States of America at the American National Bank & 'I`rust Company of �hicago, in t e i y o icago, inois. The bonds shall be signed by the Mayor of said City, sealed with the corporate seal of said municipality, and attested by the City Clerk, and the interest coupons attached to said bonds sha11 be executed by the �acsimile aignatures of said Mayor and s�,id City Clerk, a.nd said o�ficiala� by the execution of said bonds� shall adopt as and for their own proper signatures their respective facsimile signaturea appearing on said coupons . The bonds� together with interest thereon, shall be payable solely from the revenues derived from the operation of the combined waterworks and sewerage system o� said municipality, and shall not in any event constitute and indebtedness of s�id municipa,lity within the meanin� o� any constitutional provision or any constitutional or statutory limitation. Any of the 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 s�,id municipali�y in the o�fice of the City Treasurer as Registrar, such registration to be noted on the reverse side of the bonds by the City Treasurer, and thereafter the principal of such regis�ered bonds shall be payable only to the registerefl holder� his legal representative or assigns . Such registered bonds may be transferable to another registered holder or back to bearer only upon presentation to the City Treasurer, with a legal assignment duly -5- acknowledged or approved. Registration of any of such, bonds shall not affect the negotiability of the coupons thereto attached� but sueh coupons sha11 be tranaferable by delivery merely. Section 3• That said bonda and coupons attached thereto and the endorsement to appear on the back thereof shall be in substantially •the Yollowing �orm: (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF FULTON CITY OF CANTON WATERWORKS AND SEWERAGE REVENUE BOND, SERIES OF 1963 Number $1�000 KIJOW ALL MEN BY THESE PRESENTS, that the City of Can�;on, Fulton County� Illinois� for vaJ.ue received, hereby promises to pay to bearer� or if this bond be reg3stered as hereinafter provided, then to the re- �istered holder hereof� solely from the Waterworks and Sewerage Fund ofl said City� as hereina�ter mentioned and not otherwise� the sum of ONE THOUSAND DOLLARS ($1,000} on May 1, (unless this bond i� then. sub�ect to prior redemption and has been called for payment and funds provided �or the payment thereof as hereina�ter stated) and to pay infierest on such principal sum fram the date hereof until paid� at the rate of per cent ( o) per annum, payable May l, �96�+ � and semi-annually thereafter on Nnvember 1 and May 1 in each year� upon presentation and surrender of the 3nterest coupons hereto appeartaining as they severally mature. Both principal o� and interest an t�iis bond are hereby made payable in l�w�ul money o� tYie United States of America at the American National Bank and 'I�ust Company of Chica�o, in the Cit� of Chicago, Illinois. This bond, together with such additional parity obligations as may be herea�ter issued under the provisions o� the ordinance authorizing said bonds� is payable solely from revenues derived from the waterworks and sewerage sys�,em oP �Lhe City and not otherwise� and is one of an authorized i�sue aggregating the principal sum of $i,825.000� issued under authority o� the I1linois Municipal Code� and a11 laws amendatory -6- thereo� and supplementary thereto� and an ordinance adopted on October 15, � ' � 1963, and published as required by law� for the purpose of paying the cost o� construct3ng improvements and extensione to the exieting waterworks and sewerage system in and for the City of Canton� and refunding certain Water and Sewer Revenue Bonds� and this bond does not constitute an indebtedness of said City within any con- s�itutional or statutory limitation. Under said Code ar.d the ordinance adopted pursuant thereto, suf- ficient revenues derived and to be derived from the operation oP the waterworks and aewerage system of the City sha�l be deposited in a sep�,rate fund designated as tne "Waterworks and Sewerage Fund o� the City of Canton" which shal.l be used only f'or the purpose of paying the cost of operating and maintaining th� aystem, providing for an adequate depreciation fund9 and paying the prinuipal o� and interest on the bonds of the City that are iasu�d under authority of said Code, �nd are payable by their terma only from the revenues of sueh system, and creating and main�tainin� the several accounts eatablished by the ordi- nance authorizing the issue of bonds of which this bond is one. For a more complete statement o�' the source of payment a� this bond and the issue o�' which it is a part� the circumstanees under which additional obligations �an be issued� r�nd a statement of �the rights, duties and obligations of the City and the rights of the holders of the bonds, reference is m�,de to the aforeaaid ordinance, to a11 of the provisions of which ordinance the holder hereof by the acceptanae of this bond assents. This bond is one of an authorized issue of One Million Eight Hundred ��r�rx�� Fi�+� T�lousand Do�.l�,ra ($1,825,000) � numbered from l to 1825� inclusive� of the denomination of One Thousand Do11a rs ($1,000) e�ch� of like date and tenor except as to number, rate o� interest� maturity� and privilege of redemption and of said bonds, bonds numbered 596 to 1825� inclusive� in the aggregate amount of $1,230,000, shall be sub�ect to redemp�ion and payment prior to their maturity� at the option of the City� �t par and accrued interest to date o£ redemption on May 1� 1983, or on any interest pa,yment d�,te thereafter. A11 of said bonds -7- numbered 596 to 1825, inclusive� in the a�gregate amount o�� $i, 23o 000 , are redeemable in the invers� order of their number; that is to say, bond number 1825 shall first be redeem�d before bond number 182� is redeemed� and so on� continuing such priority of redemp�ion as to all said bonds so redeemable. Written notice of its aption to redeem and pay prior to their maturity any or all of said bonds which by �heir terms shall have be- come sub�ect to redemption and payment shall be given by the City to the holder o� each such bond c�lled for redemptlon, if known, by regie_ tered mail at le�st thirty ( 30) days prior to the date of redemption or i� the holders of any such bonds are unknown, then notice of such re- demption� shall be given by publication of surh notice at least once in a newspaper published �nd o� general circula.•�ion in the City of Chicago, Illinois� and the date of the pub�3cation o� such notice sha11 be not less than thirty ( 30} days prior �o such redemption da•te, �nd �ny such notice shall design�te the date and place of redemption of said bonds� which shall be the American National Bank and Z`rust Company of Chicago, in the City � . � 9 Illinois� shall deaignate the seria.l number �,nd the r3,ggreg�,te principal amount o� the bonds to be redeemed, and shall indic�,te th�.t on the designated dat� of redemption said bonds will be redeemed by payment af the principal thereo� and accrued interest thereon up to and incl,uding the date o� redemp-tion and that from and after the designated redemption date interest in respect of said bonds so ca,lled for redemption sha11 cea,se . It is hereby certified €znd recited that alI acts, conditions and things required by the Constitution �nd statutes o�' the State of I1linois to be done precedent to and in the issuance o�' this bond and in raising funds to assure prompt payment thereof� have been done� and have happened� �nd have been performed in regular and due form of law, and that provision h�,s been made �or depositing in the Waterworks �,nd Sewerage Fund the entire revenues received from the operation of the combined waterworks a,nd aewerage system� to be appJ.ied in the manner as hereinabove set forth; that it is hereby covenar�ted and agreed that rates will be cha�rged for the use �,nd service of such system sufficient _$_ at all t3me to pay the cost o� the operation and mainte.nance o� such system� and to pay the principal o� and interest upon all bonds issued by said City which are payable solely from the revenues o� auch �ombined waterworks and aewer�ge system. This bond is made negoti�ble by statute and may be registered as to principal in the name of the holder� on the books of the City in the o�Pice of the City Treasurer as Registr�r, such regis�ration to be evidenced by notation of said Treasurer on the back hereo�� aPter which no transfer hereo� sh�ll be valid unless made on said booka and similarly noted hereon� but it may be discharged �rom such registration by being transferred to bearer� a�ter which it shall be trans�erable by delivery merely. IN WITNESS WHEREOF� the City of Canton, Fulton County, I1linois, by its Mayor and City Council has caused this bond to be signed by i�s Mayor� its corporate seal to be hereto afPixed �nd to be attes�ed by the City Clerk, and the coupons hereto attached to be si�ned by the �acaimile si�natures of said Mr�yor 3nd s�id City Clerk� which of�ici�ls, by the execution o� �his bondy do adopt as and for their own proper signatures their respective facsimile signatures appearing on s�id cou- pons� and th3s bond to be dated as of the first day of M�y, 1963. M�yor ATTEST: Ci�y Clerk (SEA.L) (Form of Coupon) Number � On the first day of , � the City of Canton, Fulton County� T1linois� will p&y to ber�rer solely out of the W�,terworks and Sewerage Fund of said City �(unless the bond to which this coupon ia attached has been called for redemption prior to said date �nd payment made or provided Por) Dollars �$ � in -9- lawful money of the United States of America, at the Amexican Natiunal Bank and 'I`rust Company of Chicago, in the City of Chicago � I113nois� being interest to that amount then due on its We,terworks and Sewerage Revenue Bond� Series of 1963, dated May l� 1963, Numbered (Facsimile Signature) Mayor (Facsimile Si�na�ure) City Clerk �(The clause within the pa,renthesis appearing on the form of interest coupon sha11 be inserted in a11 coupons attachecl to bonds numbered 596 to 1825, inclusive,, representing interest maturing after the option datie o� the bond to which it is attached. ) (r'orm of Registration Cert3ficate) Date o�' Signa�ure of Tr. easurer Registration In Whose Name Registered �,s Registrr�r Section �+. Tha�t upon the issuance of any of the bonds herein pro- vided for� the system� for the purpose af th3s ordinance� shall be operated on a fisc�.l year basis� commencing on the first day of May and ending on the last day of April of each succeed3ng ye�,r� and during each year ending April 30� so long as any of the bonds herein authorized to be issued are outstanding, the entire revenues derived from the opera- tion of the system sha,ll be collected and shall be set aside as collected and shall be deposited in a separate fund, which is hereby created, to be designated as the "tidaterworks and Sewerage Fund of the City of Can�on" (hereinafter sometimes referred to as the "Fund") which ah,all be kept �,part and segregated from a11 other moneys of the municipality and shall be used only to create and to maintain the several accounts hereinafter specified for the purposes of paying the cost of the operation and main- tenance of s�,id ayatem� providing an adequate depreciation reserve� and paying the princip�l of and interest upon all revenue bonds issued r�,nd outstanding which by their terms are payable from the revenue of the system� and such Fund sh�.11 be used only for such purposes and is hereby -10- pled�ed therefor. � A� the time of deliverJ of the bonds (except to the extend modified by Section 5 (c) hereof) there shal� be transferred to said Waterworks and Sewerage Fund all assets� credits and moneys est�blished for the bene�it of the W�terworks and Sewerage Revenue Bonds herein authorized to be refunded. Section 5. That for the accounting of all moneys and assets of sa3d Fund �t any time and f rom time to time while any bonds herein auth- orized are outstanding and unpaid, there are hereby created and estab- lished separate accounts to be designated (a) Oper�tion and Maintenance Account� (b) Depreciation Account� (c) Bond Account� (d) Bond Reserve Account and (� ) Surplus Account. All depoaits made to and all funds held in each of said accounts, respectively shall be con�inuously aecured as provided by the laws of the State of Tllinois �overning public bodies. There ahall be p�id on th� first busin�ss day of each mon�h all moneys held in said Fund in accordance with the following provisions and in the priority of said accounts so created and established as �ollows : (a) Oper�tion and M�inten�nce Account; There first shall be set apart and paid out of said Fund into the Operation and M�intenance Account an amount considered necessary and sufficient to pay �h� reason- able current expenses of operating� repairing and maint�ining said system for the current month� includin� without limiting the generality of the foregoing, s�l�ries� wages� taxes, costs o� materials, suppliea, insur- ance� power� ��ael� reasonable rep�irs and extensions necessary to render ef�icient service, and �11 other necessary incidental expenses whieh under recognized �ecounting principles are properly charge�ble to the syatem� and costs of administration. (b) Depreciation Account; After �11 payments required to be made in the Oper�tion and Maintenance Account have been �ade, there next shall be deposited in the Depreciation Account the sum of $1, 500.00 each month until � m�ximum o� $100i000.00 is on deposi� in said Account� which is hereby found and determined to be a re�sonable amount necessary to ac- complish the purpose for which s�id Depreciation Aceount is established. The moneys in said Account shall be used to pay the cost of necessary -11- replacements to the system� but shall not be used to pa� the cost of extensions to said, system �nd all expenditures for such necess�ry re- placements shall be approved by an independent consulting engineer or engineers favorably known for skill in such matters, before �ny such ex- penditures are made. To the extent necessary to prevent or to remedy a default in the p�yment of the principal or interest on the bonds herein authorized� or on such �dditional parity bonds as m�y be hereafter author- ized, the moneys in said Depreciation Account shall be transferred to the Bond Account� and� whenever such a transfer is made, the amount so tr�ns- ferred shall be added to the next deposit to be made into the Deprecia- tion Account� and thereafter until s�id Depreci�tion Account has been fully reimbursed. The moneys in said Depreciation Account m�y be invested and re- invested in bonds or other direct obligations of the United States of America with fixed redemption value maturing within �ive ( 5) years from date o� purchase or in such securities permitted by the �aws of I1linois governing the depoeit of public funds� as may be authorized from time to time by resolution of the governing body of the municipality. ( c) Bond Account: After all payments required to be made into the foregoing accounts have been made and all deficits in said accounts have been fu11y remedied, there next shall be deposited in the Bond Account for the purpose of p�ying the maturing principal of and the interest �c- curing on the bonds issued under the terms of this ordin�nce such amount o� said income and revenue as will be suf�icient and adequate at any time to pay the principal of and interest on s�id bonds �s the same respect- ively mature� which amount is hereby irrevocably pledged for the payment of the bonda authorized hereunder and for payment of principal o� and interest on such addition�l parity bonds �s may be bereafter authorized and shall be used solely for that purpose. It is hereby covenanted and agreed that �here sha11 be set aside monthly in said Bond Account an amount at least equal to 1�6th of the princip�l and interest becoming due on al1 said outstanding bonds on the next succeeding interest p�y- ment date and commencing on November 1, �963, �n amount at least equal to 1�12th of the principal becoming due on the next succeeding principal -12- � payment da�ei plus 1�6th o�' �he interest due on the succeed�.ng interes� date. At the time of' �the delivery of the bonds herein authorizedJ all moneys 3n the s3nking fund account establiahed for payment of principal of and interest on the bonds refunded hereby shall be transferred to Bond Account herein created and such moneys sh�zll be used to pay intereat and principal falling due on the bonds herein authorized oz� _Qc#�ob er �5,� 1�6� • It is the express intent and determination of the governing body of this municipality that the amount of said income and revenue so to be set aside and deposited into said Bond Account shall be in any even� always sufficient to pay the interest upon said bonds as the same be- comes due and the principal thereof as the same matures and there shall be deposited out of such income t�,nd revenue received from the operation of said sysi;em �rom month to month during each such fiscal year� without further authorization from the governin� body of this municipality, suf- ficient moneys in said Bond Account to pay promptly such principal and interest. No further p�,ymen�ts n�ed to be made into said Bond Account when and so long as such amount of bonds shall have been retired that the amount then held in said Account� together with the a�mount then on deposit in the Bond Reserve Account, is equal to the entire amount of a11 interest and principal that will be payable at the time of redemption or maturity on all of said bonds then remaining outatanding. If in any fiscal yerzr said municipality sha,ll for �,ny reason fail to pay into said �ond Account the �ull amount above speciPied, then an amount equivalent to such deficiency shall be set apart and p�,id into sr�.id Account from the first availa,ble revenue of the nex� following fiscaJ. ye�,r or years and shall be in addition to �he amount otherwiae herein provided to be so set apart and deposited during each succeeding �iscal year or yer�rs . If there are not sufficient funds in the Bond Account avail�,ble to pay maturing principa,l of �,nd interest on the bonds herein authorized, such deficiency sha,ll be made up (1) by thc transfer of Punds from the Bond Reserve Account� (2) by the transfer of funds from the Depreciation -13- Account� a�d (3) by the transfer o� �unds from the Surplus Account. The Bond Account shall be carried as a separate deposit at the p�y- ing agent� attd the moneys in said Account may be invested and reinvested in bonde or other direct obligations of the United States of America havin� a fixed maturity o� not exceeding ninety-one (91) d�ys from date of each inveatment� �s may be authorized from time to time by resolution of the governing body of the municip�lity. Funds to pay principal and interest� together with the fees and ex- penaes of the p�ying agent, shall be delivered to the p�ying �gent �t le�st fifteen (15) d�ys prior to the due date of princip�l or interest. (d) Bond Reserve Account: After a11 p�yments required to be made into the �oregoin� �ccounts h�ve been m�de �nd all de�icits in said ac- counts have been fully remedied� there sh�ll next be deposited in the Bond Reserve Account the sum o� $1� 500.00 each month until � �aximu� of $100,000.00 is on deposit in said account, and at whieh fi�ure s�id Account, notwithstanding any transfer therefro� �s herein permitted, shall thereafter be continously maint�ined� and �11 �oneys therein sh�ll be only used by the Treasurer hereof as may be needed from time to time in the payment of the interest on or princip�I of the bonds herein auth- orized or the intereat an �nd principal of such �ddition�l p�rity bonds as may be herea�ter �uthorized whenever there exists a deficiency in the Bond Account� and all withdrawals therefrom �or th�t purpose shall be re- imbursed from the next revenues availuble therefor �s provided herein. Whenever the �mount on deposit in said Account� together with the amount on deposit in the Bond Account� is equa1 to or gre�ter than the inter- est on and prineipal of all the bonds herein �uthorized that �re out- standing� then no further deposits need be m�de in s�id Bond Reserve Account. The Bond Reserve Account shall be carried �s a separate deposit at the paying �gent� and the moneys in said Bond Reserve Aceount may be in- vested and reinvested in bonds or other direct obligations of the United 8t�tes of A�erica with fixed rede�ption v�lue �aturing within five (5) years �ro� date oP purchase� or in such securities permitted by the l�ws of Illinois governing the deposit a� public �unds, as m�y be authorized from time to t3me by resolution of the �overning body of s�id �unicipal- ity. -11+- (e) Surplus Account: Any surplus funds then remmining after providing for all of the deposits hereinabove listed in subpar�graphs (a� �hrou�h (d) sh�ll be deposited in the Surplus Account to be used and held for use as follows : (1) �or the reimbursement at �ny time and �rom time to time of any �ccount listed in subparagraphs (a) through (d) hereof that is dep�eted by withdrawals; and (2) for the purpose o� making improvements and extensions to the system or for the purpose of retiring the bonds herein authorized, and any such �dditional parity obligat3ons as m�y be issued and outstanding under the conditions of Section 9 hereof, prior to m�turity by purchase on the open market at not more than par and �ccrued interest, and all such bonds so purchased shall be cancelled, or �or the purpose of paying obligations �unior or subordin�te in all respects in their claim on the revenues herein pledged and issued for the purpose o� m�king improvementa and extensions to the system, or for any corporate purpose. The money in the Surplus Aecount shall be carried as a separate de- posit in a bank or trust company which is a member of the Federal Reserve �ystem� and the moneys therein may be invested �nd reinvested in bonds or other direct obligations of the United St�tes of America maturing _ within five (5) years from d�te of purchase� or in such securities pro- vided by the laws of the State of Tllinois governing the deposit of pub- lic funds as may be authorized from time to time by resolution of the governing body of said municipality. Section 6. That the municipality hereby agrees to carry insurance on the system of the kinds and in the amounts which �re usually carried by private parties operating similar properties, including without limit- ing the �enerality o� the foregoing� fire, windstorm insurance� public liability� and any additional inauranc� covering such risks as ah�ll be recommended by a competent independent engineer employed for the purpose of makin� such recommendations, and all moneys received for losses under such insurance policies as insure �gainst physical dama�e to or loss of the system shall be deposited in the Depreciation Account �nd ahall be used in making good the loss or damage in respect of which they were -15- pa3d� either by repairing the property dam�ge or replacing �the property destroyed� and provision for making good such loss or damage shall be made within ninety (90) days from date of the loss . The proceeds of any and all policies for public liability shall be paid in to the Operation and Maintenance Account and used in payin� the cla3ms on account of whic�� they were received. The payment of premiums for all insurance policiea required ;under I the provisions of this section ah�11 be coneidered an operation and maintenance expense. Section 7. Th�t while �ny o� the bonds issued pursuant to this or- dinance rem�in outst�nding or unpaid� ratea and ch�rges for water and sewer services shall be sufficient at all times to pay all costs of op- er�tion and maintenanceof the system� to make the payments and to main- tain the balance as required in the Depreciation Account� to pay the pr- incipal of �nd interest on all bonds authorized hereunder and to make thc p�yments and to maintain the b�lance as requirea for the Bond Account anc� �or the Bond Reserve Account. There shall be ch�rged against a11 usera of the system� including the municipality� such rates and amounts for water and sewer services �s sh�ll be adequate to meet the requiremen�s oi this section. Char�es for services rendered the municipality shall be made a��inst the municipality and payment for the same �rom the corpor- ate �unds ahall be m�de monthly into the Fund in the same manner as other revenues derived from the oper�tion o� the system are so required to be deposited. In addition to the fore�oing the municipality covenants not to pro- vide any free service of said system and to p��r promptly for the use of all facilities cpnnected and to be connected to th� system, including w�ter used for fire protection to be computed by the number of fire hy- drants connected� and �o be connected� with said system. It is expressly herein covenanted that to the extent permitted by law the municip�l3ty will not grant a fr�nchise for the operation of any competing waterworks and sewerage aystem within said municipality, and that the bonds herein authorized to be executed shall constitute legally enforceable liens upon the earnin� o� the waterworks attd aewera�e system -16- of s�id municipality� including �11 further extensions� add3tion�, and improvementa thereto� whether �cquired through purchase� contract or otherwise. Section 8. That in the event the municip�lity def�ults in complying with any coven�nt con��ined in the ordinance� �ny holder of any bond is- sued hereunder� or of �ny coupon representing interest aecrued thereon, may either in l�w or in equity, by proper suit� compel the officials of said municip�lity to perform all duties required by law and by this or- dinance, including the mak3ng �nd collecting of su��icient rates for water and sewer services for that purpoae and application of income and revenue therefrom. Section �. That it is hereby covenanted and agreed with the holder of the bonds herein �uthorized th�t said municipality will not issue any other or addition�l bonde or other evidence of obligations of s�id muni- cipality payable �rom or in any w�y creating � charge upon the income and revenue to be derived from the operation of s�id system� until the �ollowing conditions have been met: A. There sh�ll have been filed with the governing body o� the municipality � certi�icate of �n independent engineer in responsible ch�rge of construction such further improvements, extenaions� repairs and rPhabilitations which shall be �pproved by and made of public record iri the proceedings o� �he governing body af the municipality before �ny such additional bonds �re authorized= (a) �3ving a reason�bly de�ailed description of such work, an estimate of the cost thereof, and �n eatimate of the time of completion thereof; and (b) show3ng the �easibility of such additional revenue financing with reference to existing r�tes and anticipated earnings based thereon. (1) the net eurnin�a of the system for the last com- pleted fisc�l year prior to the isauance of such additional bonda sha11 have been at �east equ�1 to 1.25 times the maximum amount of 3nterest and principal that will become due in any fisc�l year subsequent to the issuance of such �dditional bonda on the bonds of this is�ue then outstanding and on the additional bonds -17- then proposed to be issued. The term "net earning�" far the pur- pose of this subparagraph shall be deemed to be the gross revenues �or the next preceding completed f3sc�l year �fter deducting there- from all ma3ntenance and operation expenses o� such preceding completed fiscal year. (2) The amounts required to be credited to the respective S�oounts described in Section 5 (a) through (d) of this ordinance ahall have been credited in full to the date of the proposed additional bonds� and if any additional bonds are so issued the maximum amounts to be deposited in the Depreciation Account and in the Bond Reserve Account sh�ll be increased in proportion to the principal amoun� of any additional bonds so issued. B. In addition to the foregoing, if prior to the payment of the bonds hereby authorized� it shall be found desirable to refund part or all of the bonds hereby authorized and then outstanding, said bonds may be refunded notwithstanding the restrictiona as to the issuance of addi- tional bonds set forth in this section (with the consent oP the holders thereo� unZes� the bonds to be refunded are sub�ect to redemption and provision for call and redemption thereof is duly made), and any re- fundin� bonds so issued shall sh�re ratably and equ�lly in the income and revenue o� said system w3th the portion of the bonds hereby author- ized which are not refunded; provided, further, that if any such bonds are refunded in such manner that the interest rate ia incre�sed or the refunding bonds mature at a date earlier th�n the maturity of any of the bonds not refunded, then such refundin� bonds shall not sh�re r�t�bly and equally in the income and revenue of said system with the portion of the bonds rem�ining outstanding authorized under this ordin�nce� except that if it is found necessary to refund any maturity of the bonds provided for by this ordin�nce at maturity or within one year of maturity thereof in order to prevent default such refunding bonds may be issued to share r�tably and equally in the income and revenue of the system with the portion of the bonds hereby authorized which �re not refunded notwithstanding the fact that the interest rate is increased, provided� however� th�t such refunding bonds sha11 not mature �t a d�te earlier -18- than the m�turity of any of s�id bonds not refunded and, then• outstanding. C. When the conditions specified in p�r�gr�phs A �nd B of this Section have been complied with� then upon the issue thereof any such additional bonds when issued shall be entitled to the equ�l and propor- tionate benefit and security of the pledge of the revenue and 3ncome derived and to be derived from the operation of said system with the bonda herein authorized without preference� priority or distinction as to participation of such pledge of revenue or in the preference of one bond or coupon of e�ch of said iasues over or from �ny other issue, by re�son of priority in execution, issue, delivery or ne�otiation $hereof, or by reason oY the date or da�es of s�id bonds, or the date or d�tes of maturity thereof� or for any other reason whatsoever� the intent hereof being that e�ch and �11 of said bonds, as afores�id, �nd of coupons evi- dencing interest thereon� shall h�ve the s�me right and pledge as to p�y- ment and security with the same legal effect as if each and all of e�id bonds and coupons have been executed� issued, delivered �nd negotiated simultaneously �s one proceeding. Section 10. That the municipality hereby coven�nts and agrees with the holder or holders of said bonds th�t it will punetu�lly perform all duties with reference to said system required by the Constitution and laws of the State of Illinois� 3ncluding the making and collecting of suf�icient r�tea for the use and service of s�id system required by the Constitution �nd l�ws of the St�te of Tllinois, segre��ting the revenues oP said �ystem and maintainiiig the Waterworks and Sewerage Fund and the applic�tion of the respective accounts created by this ordinance� and it hereby covenants �nd agrees not to se1l� lease, loan, mortg�ge� or in any manner dispose of or encumber said syatem� ( sub�ect� however� to the right reaerved 3n �ection � to issue �dditional bonds ) including any and all ea- tensions and improvements that may be made thereto� until al1 of the bonds herein authorized to be issued sh�ll have been paid in full� both princi- pal and interest, or unless �nd until provisions ehall have been made for the payment thereof. Said municipality �urther covenants �nd a�rees with the holders of said bonds authorized hereunder to m�intain in good condition and con- -19- tinoualy to� operate said system� and to make� enact and, enforce all need- ful rules �nd regulations and ordinances for the efficient management and proper maintenance and protection of such system� and for the use �nd service thereof. Section 11. Th�t the municipality will maint�in and keep prop�r books of records and accounts (sep�rate from all other records and ac- counta of said municip�lity) in whieh complete entries sh�ll be made of all trans�etions relatin� to the said system, and hereby coven�nts that it will cause the books and �ccounts of s�id aystem to be audited by certified public accountants �nd within not more than sixty days after the c�ose of each �nnu�l fisc�l period will file with the original pur- chasers of said bonds now proposed to be issued complete oper�ting income atatements of s�id system in re�sonable detail aovering such an�u�1 perio�. �nd will furnish upon written request not more than sixty d�ys after the close o� each annual �isc�l period copies of such operation and income statements to any holder of any s�id bonds herein authorized and will permit any holder or holders or any purch�sers of said bonds then out- standing to inspect �t all re�sonable times s�id system and �11 records �nd �ccounts �nd d�t� relating thereto, and to furnish to any holder or holders or �nypurchaser o� said bonda then outstanding �11 d�ta �nd in- formation relttting to said system which may be re�sonably requested. Each audit� in addition to wh�tever matters may be thought proper by the accountant to be included therein, shall without limitin� the genernlity of the foregoing, include the following: (1) A statement in det�il o� the income �nd revenue and expenditures o� the system for such �iscal year. (2) The Accountant�s comment regarding the method in which the muni- • cipality h�s carried out the requirements o� this ordin�nce� and the aceoun�an�= s recommendations .Por any chan�es or improvements in th� financial operation of the system. ( 3) A list of all the insurnace policies in Porce at the end oP the fisc�l ye�r� setting out as to e�ch pol3cy the amount of the policy the risks covered, the name of the insurer and �he expiration d�te of the policy. -20- . ' ' � ' � �. . (4) The number of customers served by the system �t the end of the fiscal year� the number of inetered customers at the end' of such year, the number of unmetered customers at the end of such yer�r and •the quantity of water pumped and supplied. All expenses incured in the m�king of such �,udit shall be regarded and paid as a, maintenr�,nce �,nd opera�ion expense. Section 12. That the provisions of this ordinance shall conatitute a contract between the municipality �,nd the holders of the bonds herein au�horized to be issued and after the issuance of said bonds no changes, additions or alterationa of a�ny kind shall be made hereto, except as here- inbe�ore provided� until c�ll of s�,id bonds a,nd the interest thereon shall have been p�,id in ful7., or unless and until provision shall have been made for the payment thereof. Sect�on 13. That as soon after thia ordinance becomes ef�'ec�ive as may be� said bonds shall be executed �,s herein provided and be deposited with Ben,j�,min Lewis & Company Inveatment Securitie3� of the City of Chicago� T1linois� the purchaser thereof upon receipt of the purehase price therefor� in accordance with the contract of srzle heretofore enter- ed into� whieh s�.id contr�ct of sale be a,nd the sa�me is hereby in �11 res- pects ratified, approved and confirmed. �11,1 proceeds derived at the sale and del.ivery o� s�zid bonds sha11 be accounted for as follows ; (1) A1.1 accrued interest f'rom thc date of the bonds to the date of delivery and przyment shall be deposited by the Treasurer of the municip- ality in the Bond Account hereinabove created with the p�,ying agent. (2) Out of the proceeds receiv�d from the sale of said bands the sum of $188�000, together with the sum representing the a,ggregate inter- eat to maturity on the outst�,nding obligations described in the preamble hereto and being refunded� sha11 be deposited irrevocably in trust with the paying agent bank of sr�ic� bonds to be used so7.ely for the purpose of paying principal and inter�st to maturity on the bonds as they shrzll ma- ture or as they shall be called for redemption. The Mayor, City Clerk and City Treasurer are hereby authorized to execute any �,nd all written instrumentu necessary to accomplisY: such irrevocr�ble deposit. -21- . ' � � , . ( 3) The b�,lance of the proceeds received as prinGipal 'sha7.]. be de- posited by the Treasurer of said City in r� sep�,rate and special account of said municip�lity to be known and designt�ted �,s the Waterworks and Sewerage System Bond Construction Fund Account and such deposit shall be in the Canton Sta,te Bank and The National Bank of Ca,nton� Cr�nton� Illinois� �,s depositaries9 to be secured in the manner� form and time as by lt�w required, and all proceeds held in said Construction Fund Account shall be used and helcl �'or use solely to construct the improve- ments and extenaiona to the system as hereina,bove described in this or- dinance� and the benefic3al i.nterest to �11 moneys held in soid Con- struction 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 al1 disbursements therefrom shall be made by the Treasurer of this municip�lity from time to time but only upon submission to him o,nd sa�id depositary of: (a) r� certifioate by the engineer in responsible ch�,rge of the con- struction o� sr�id improvements and extensions str�ting the nature of the work completed and the amount due and p�,yable thereon� r�nd that auffici_ ent funds remain to complete the cons�ruction thereo�� bearing the en- dorsement and approval of the Mayor of said municipality and accompanied by: (b) an order for payment upon said Trera,surer signed by the Mayor of said mun3.cipality and the City C1erk� which order ah�ll state specifi- cr�lly the purpose for which said order is issued; and the M�yor ofl said municipa,lity� the City Clerk� and the Treasurer are each hereby author- ized �,nd directed to execute and deliver to the C�,nton State Bank r�nd�or The National Ba,nk o� Canton� Canton� Illinois, �,s depoaitaries, such certi�'icates� proceedings and �greements as may be necessary or conven- ient to establish said Construction Fund Account herein cret�ted and to properly secure all proceeds thereof� r�nd to evidence compliance here- with in the making of any withdrawt�ls therefrom. Within sixty (60) days r�fter completion of the construction of the improvements and extensions herein �uthorized� the municipality �,grees to deliver to said deposit�,ries �,n original counterpart of a certificate -22- � � . . � � ' , , (herein ca,lled the "Certificate of Conpletion" ) s3gned, by tne Mayor and by the Tre�surer� and having endorsed thereon the r�pproval of the eng3n- eer in char�e o� such construction� st�ting that s�,id improvements and extensions h�,ve been �ully constructed �,nd completed in �ecordance with the plans� maps� files and specifications therefor as recited in this ordinance� and that the s�,me h�,s been flu11y paid for, or that funds suf- �3cient so to pay for the s�,me remt�in in s�,id Construetion Fund Account� giving the d�,te of final completion and the totr�l cost of construction, an� the amount� if a:�y, of such construction cost �hen remr�ining unpaid, to�ether with an original counterpart of the opinion of counsel for said municipality to the effect that all property� real, persont�l and mixed� connected with or �ormin� a part of, or necess�,ry to the opera- tion of said combined wa.terworka and sewerage system as completed, is owned by sa3d municip�,lity and covered by the lien of thie ordinance, and upon rece3pt o� such Certificate o� Completion and opinion of counsel a,s mentioned� said depositr�,ries, after reta�ining in sa,id Conatruction Fund Account a sum sufPicient to pay the b�,lr�nce of the construction cost remaining unp�.id as shown by said Certificate of Conpletion� including a,ny items then in controversy� sh�,ll deposit all moneys then remaining with the p�,ying agent for st�3d bonds, in the Bond Account herein crea,ted. Section 1�+. Th�,t if �iiy section� para�graph, cla,use or provision of this ordinance shr�ll be held invalid� the inv�,lidity o� such section, p�,ragrr�.ph� clause or provisior� shall not affect any oP the other pro- visions of' this ordinance. Section 15. Tha,t all ordinances� resolutions� or orders, or parts, thereof� in conflict with the provis3ons of this ordinance are, to the extent of such conflict� hereby repealed. Section 16. Thr�t this ordinance, after its passa,�e� and approval shall be published once in the Ca�nton Daily Ledger, �, newspr�,per pub- lished in r�nd having a genera,l circulation in the City oP C�,nton� and -23- '�' . . . , ' . shall be in ful�. force r�nd effect after such publication in' the manner9 form and tine as provided by the laws of the State of Illinois there- unto enr�bling. P�ssea cct. �.5, � 1963• AYES: Aldermen Sebrc�e, T;oti•rard. I-�uncan. Nurs�t Z�,Thi-�ehead. Lon�� Gibbons, JerLnings, �ender, an.d Gaor�e. Also voting_ tt .,n n. NAYS: Aldermen Z^jri�h.t akinner and Horton. Approved Oct. 1.K , 1963� Mayor - ATTEST: � City Clerk _21}_ ,ry � �,- -. -.�: , , . /;% . MINUTES of e� 1Leg��ar - ' ' meeting of the City Council of the City o� Canton� Fulton County� Illinois� held at CitV Council Charlber, City �Iall, AT 7:�� o=clock .M. on the _ �� day of October � 1yb 3• �_ � � � � * * � � � The Mayor called the meeting to order, and directed the City Clerk to call the roll. Upon roll call� the �ollowing Aldermen anawered present: Alderrnen Sebree� Howard� T�1ri�ht, 7?uncan� Hu�rst, '�'IYLi-t,ehead, Skinner� :Long, Gibbons Horton Jennings, 13end.er� and G-�orge. and the following were ebgent: Alde.rman I3ender presented and the Clerk read in full an ordina,r.ce entitled: "An ORD:LPSANCr authorizing �1��25'000.00 Z�Jaterrraorl�s and Sewera,ge Revenue T3onds, Series of 19�3 0� the City of Canton, Ful.ton County, Illino:�s� a?�.d providing for the payment, sale a.n.d delivery' thereof� and making cer-tain covenants in that connection'�. •, „i ` J � . • � . . � , • Bender rnoved and Alde��an ���'S� Alderman ._ �econded the motion, that the said ordinance as presented and read by the Cl.erk be passed. After a full discussion thereof the Mayor dixected that the roll be cr�,lled upon the motion to pass the ordinance as read. Upon roll call the folloFring Aldermen voted: AYE ; Aldermen Sebree� Not��,rar'd� I�uncan� �iurst� VThitzhead9 Long� Gibbons� Jennin�s� Bender� and George. A1so voting '►AYI�'�� T�.yor Cook. NAY: Alderm.en 1��dright, Sl��.nner, and Horton. Whereupon the Mayor declared the motion carried and the ordinance passed� ancl the Mayor approved and signed in open meeting said ord- inance as adopted and directed the Clerk to record the same in the recoxds of the meeting of the City Council of the City of Canton, Fulton County� I113nois . Other business not pertinent to the adoption of said ordinance was duly transacted at said meeting. Upon motion duly made and caxried said meeting was ad�ourned. City Clerk ♦ `" ' . , � , , ,� r � . , ' . . STATE OF ILLZNOIS ' ) ) SS COUNTY OF FULTON ) I�te113e Crawford � do hereby certify that I am the duly , quali�ied acting City Clerk of the City of Canton� Fulton County� Illinois� and as such City Clerk that I am the keeper of the records and files of the Mayor and City Council of said City; and I do further cert3fy that the foregoing is a �'ullt true and complete transcript of that portion of the minutes of the meeting of the City Council of said City� held on Oct l� , �963, insafar as same xelates to the reading and adoption of the ordinance herein- before set out; and I do further certify that attached hereto is a true� correct and compared copy of said ordinance� and that a fa3thful and complete record �hereof has been made in the official record books of said Mayor and City Council now in my office remaining. IN WITNESS WHEREOF, I have hereunto affixed my official hand and seal of said City this _ 15th day of Oct. � 1963• ��___/_.� � ! �� City C1.erk (SEAL) ;