The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Pw 19-PHINDKAl .KK HKRAI .D . WKDNKSIM* . DKOKMI IKK S . 1W4 Legal notice PUBLIC NOTICE 044 350 A N O R D I N A N C E authorizing an issue of rks and i Bonds, 1984, of the City of 4enry, McHenry Coun tyjIllinois, and providing fott the payment and delivery thereof. T WHEREAS, the City of McHfiry, McHenry County, II- llnoli (the "City"), has for manWyearslong past owned and operfted In Its governmental capacity a waterworks system and ajsanltary sewerage system serving the needs of said City and Ihs combined said systems into ^combined waterworks and sewejtage system (said combin­ ed waterworks and sewerage systefn hereinafter, together with the extensions authorized by thjs ordinance, and all future improvements and extensions theneof, or replacements thereto, herein called the "syqpm"); and # WHEREAS, the governing of said City has heretofore j>ved a contract providing of the water best! healf ?ltyj and j be( bod appi for tie acquisition distribution system of the LakMand Park Water Company whiJi it has heretofore found and |oes hereby find to be in the interests of the public i and welfare of the said Ci I has determined that said vill need to borrow funds to cost of said acquisition inccme-and revenue to rived from the operation of saidfeystem is determined ade quatl to provide for the payment of bands herein proposed to be Issued; and WHEREAS, the total estimated cost of such acquis! tion,'Including necessary legal and financial costs, is the sum of $500,1000, and the City does not have sufficient funds on hand to pay i the cost thereof and, in order to raise the funds to ac quirk said addition to the ex istire waterworks portion of the syslim, it will be necessary for the pity to borrow money and issue revenue bonds in the prin­ cipal amount of $500,000; and WHEREAS, the City Council did i adopt an ordinance on March 19, 1956, authorizing and providing for the issue of $179,000 Waterworks and Sewerage Revenue Bonds, Series of 1956, of which bonds in the amount of $30,000 are now outstanding; and WHEREAS, the City Council d!d{ adopt an ordinance on August 20, 1979, authorizing and pro riding for the issue of $i, 50,000 Waterworks and Se' erage Revenue Bonds, Sei tes of 1979, dated September 1, ! 979, of which bonds in the am »unt of $770,000 are now outstanding, and 1 HE RE AS, the terms of said or< nances adopted on March 19, 956 and August 20,1979, pro- vi< that additional bonds on a pa ty with the outstanding re rnue bonds may be issued if th gross cash operating revenues of the system earned to# the last fiscal year ending April 30 immediately preceding thi authorization of any such ad­ ditional bonds, as shown by an audIt of an independent certified public accountant, were suffi­ cient to pay all costs of operation artti maintenance of satd system, to make the annual payments to the tM>i Account and to tne Bond Reserve Account, and to make up any and all deficiencies then existing and leave a balance equal to one and one tenth (1- 1/10) times the maximum amount of principal and interest that will become due In any fiscal year subsequent to the is suance of additional bonds on the then outstanding revenue bonds, and on the additional bonds then proposed to be Issued; and WHEREAS, the revenues of the system for the last fiscal year computed in the manner provided in the above paragraph were sufficient for the issuance of the additional parity bonds hereinafter proposed to be Issued; and WHEREAS, the revenues of the system have not been pledg ed or hypothecated in whole or in pert In any manner or for any purpose except for the payment of the outstanding bonds >uthorlzed by said ordinances adopted on March 19, 1956 and on August 20,1979, respectively; and WHEREAS, pursuant to the provisions of the Illinois Municipal Code, approved May 29, 1961, as amended, this City is authorized to issue Waterworks and Sewerage Revenue Bonds in an amount sufficient to pay the cost of acquiring such addition to the existing waterworks por tion of the system, and the in come and revenue derived and to be derived from the operation of said combined waterworks and sewerage system of said Ci ty will be fully adequate to pro­ vide for the payment of the outstanding bonds and the new bonds feproposed to be issued: NOW, THEREFORE, Be It Ordained by the City Council of the City of McHenry, McHenry County, Illinois, as follows: lection 1. That the existing combined waterworks and sewerage system of this City shall be expanded in accordance with the contract providing for the purchase of the distribution sy$tcm of the Lakeland Park Water Company and approved by tnis Council on November 16, 1914, hereinabove referred to and now on file for public inspec tion in the office of the City Clerk, and the period of usefulness of said combined waterworks and sewerage system, including said describ ed expansion is hereby deter Alined by this City Council to be forty (40) years from the date of the bonds herein authorizeo to be issued Section 2. That for the purpose el accomplishing said needful expansion of said system as hereinabove described, there be Ittyed and sold the bonds of said Off to be designated "Water works and Sewerage Revenue Bonds, Series 1984", in the prin cipet sum of $500,000, the pro ceeds from the sale thereof be ing hereby determined adequate to pay Rie estimated costs of ac quirMg' said addition to the waterworks portion of the system. The bonds shall be dated December 1, 1984, and shall also bear the date of authentication, shall be in fully registered form, shall be in denominations of $5,000 each and authorized integral multiples thereof (but no single borid shall represent In stallments of principal maturing on (pore than one date), shall be numbered 1 and upward, and the Bonds shall become due and payable serially (without option of prior redemption) on May 1 of each *f the years and In the amounts and bearing Interest at the per annum as follows: "Year of Maturity ;, ' 1916 1917 1988 1989 1990 1991 1992 1993 Principal Amount $45,000 50,000 50,000 60,000 65,000 65,000 75,000 90,000 Interest Rate 9.00% 9.00% 9.00% 9.00% 9.20% 9.20% . »•»% „ 9.40% The bonds shall bear Interest from their date or from the most recent Interest payment datfe to which interest has been paid or duly provided for, until the prin­ cipal amount of the bonds is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day ronths) being payable on the fI - f/s of May and November oi each year, commencing on November 1, 1985. Interest on each bond shall be paid by check or draft of the City Treasurer as bond registrar and paying agent (the "Bond Registrar'), payable upon presentation In lawful money of me United States of America, to the person in whose name such bond is registered at the close of business on the 15th day next preceding the interest payment date. The principal of and premium (if any) on the bonds shall be payable in lawful money of the United States of America at the Bond Registrar. The bonds shall be signed by the manual or facsimile signature of the Mayor, and the corporate seal of the City shall be Imprinted thereon or affixed thereto, attested by the manual or facsimile signature of the Ci­ ty Clerk, and in case any officer whose signature shall appear on any bond shall cease to be such officer before the delivery of such bond, such signature shall nevertheless be valid and suffi­ cient for all purposes, the same as If such officer had remained in office until delivery. All bonds shall have thereon a certificate of authentication substantially in the form hereinafter set forth duly ex­ ecuted by the Bond Registrar as authenticating agent of the City and showing the date of authen ticatlon. No bond shall be valid or obligatory for any purpose or be entitled »o any security or benefit under this ordinance unless and until such certificate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of authen­ tication upon any such bond shall be conclusive evidence that such bond has been authen­ ticated and delivered under this resolution. The certificate of authentication on any bond shall be deemed to have been ex­ ecuted by the Bond Registrar if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the bonds issued hereunder. Said bonds, together with in­ terest thereon, snail be payable solely from the revenues deriv­ ed from the waterworks and tS» event constitute an Indebtedness of said City within the meaning of any constitutional provision or any constitutional or statutory limitation. Section 3. The City shall cause books (the "Bond Register") for the registration and for the transfer of the Bonds as provid­ ed in this ordinance to be kept at the office of the Bond Registrar, which is hereby constituted and appointed the registrar of the Ci­ ty. The City is authorized to prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the Ci­ ty for use in the transfer and ex­ change of bonds. Upon surrender for transfer of any bond at the office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly ex­ ecuted by, the registered owner or his attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered bond or bonds of the same maturity of authorized denominations, for a like ag­ gregate principal amount. Any fully registered bond or bonds may be exchanged at said office of tne Bond Registrar for a like aggregate principal amount of bond or bonds of the same maturity of other authorized denominations. The execution by the City of any fully registered bond shall constitute full and due authorization of such bond and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such bond, provided, however, the principal amount of outstanding bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of bonds for such maturity less previous retirements. The Bond Registrar shall not be required to transfer or ex­ change any bond during the period of fifteen (15) days next preceding any Interest payment date on such bond, nor to transfer or exchange any bond after notice calling such bond for redempton has been mailed, nor during a period of fifteen (15) days next preceding mail ing of a notice of redemption of any bonds. The person in whose name any bond snail be registered shall be deemed and regarded as the ab solute owner thereof for all pur­ poses, and payment of the prin cipal of, premium (if any) or in­ terest on any bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and ef­ fectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or ex change of bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other govern­ mental charge that may be Im posed in connection with any transfer or exchange of bonds except in the case of the is­ suance of a bond or bonds for the unredeemed portion of a bond surrendered for redemption. Section 4. The bonds shall be prepared in compliance with the National Standard Specifica­ tions for Fully Registered Municipal Securities prepared by the American National Stan­ dards Institute (except that such bonds may be either typed or printed) and shall be in t ubstan tially the following form, pro vided, however, that if the text ) of the bond is to be printed In its entirety on the front side of the Bond, then paragraph (2) and the legend, "See Reverse Side tor Additional Provisions", shall be omitted and paragraphs (5) through (9) shall be Inserted im­ mediately after paragraph (1). (Formof Bond • Freitt SMe) REGISTERED No. REGISTERED $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF MCHENRY CITY OF MCHENRY WATERWORKS AND SEWERAGE REVENUE BOND, SERIES 1984 : See Reverse Side: : for Additional : Provisions Interest Rate: % Maturity Date: May l, Dated Date: December 1,1984 Registered Owner: Principal Amount: (1) KNOW ALL MEN BY THESE PRESENTS, that the City of McHenry, in the County of McHenry and State of Illinois, for value received hereby pro­ mises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, solely from the Waterworks and Sewerage Fund of the City of McHenry, as hereinafter men­ tioned and not otherwise, the Principal Amount identified above on the Maturity Date identified above and to pay in­ terest (computed on the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the date of this bond or from the most recent In­ terest payment date to which in­ terest has been paid at the In­ terest Rate per annum Identifed above, payable November 1, 1985, and semiannually thereafter on the first days of November and May in each year, until said Principal Amount is paid. Both principal of and premium (if any) on this bond are payable in lawful money of the United States of America at the office of the City Treasurer, in McHenry, Illinois, as bond registrar and paying agent (the Bond Registrar"). Payment of the installments of interest shall be made to the Registered Owner hereof as shown on the registration books of the City of McHenry main­ tained by the Bond Registrar at the close of business on the 15th day next preceding each interest payment date ana shall be paid by check or dratt of-the Bond Registrar, payable upon presen­ tation in lawful money of the United States of America, mail­ ed to the address of such Registered Owner as it appears on such registration books or at such other address furnished in writing by such Registered Owner to the Bond Registrar. (2) Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof and such further provi­ sions shall for all purposes have the same effect as if set forth at this place. (3) It is hereby certified and recited that all acts, conditions and things required by the Con­ stitution and statutes of the State of Illinois to be done prece­ dent H> arid In 'the issuance of this bond and In raising funds to promptly assure payment thereof, nave 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 totes will be charged for the use and service of sucn system suffl dent at all times to create and maintain the several Accounts established by the ordinance authorizing the issue of bonds of which this bond Is one. (4) IN WITNESS WHEREOF, said City of McHenry, McHenry County, Illinois, by its City Council, has caused this bond to be signed by the (manual/fac­ simile) signature of its Mayor, its corporate seal to bejhereto af­ fixed and attested by the (manual/facsimile) signature of the City Clerk, and this bond to be dated as of the first day of December, 1984. \T Attest Mayor (j> City Clerk Date of Authentication: , Bond Registrar and Paying Agent: City Treasurer City of McHenry, Illinois CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within mention­ ed ordinance and is one of the Waterworks and Sewerage Revenue Bonds, Series 1984 of the City of McHenry, McHenry County, Illinois. City Treasuerer of the City of McHenry, Illinois, as Bond Registrar By -- City Treasurer (Form of Bond - Reverse Side) City of McHenry McHenry County, Illinois Waterworks and Sewerage Revenue Bond, Series 1984 (5) 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 Division 139 of Arti­ cle 11 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 funas to be made available therefor, of necessary expansion of the waterworks portion of the combined waterworks and sewerage system of said City, and this bond does not constitute an indebtedness of said City within the meaning of any con­ stitutional provision or any con­ stitutional or statutory limita tion. (6) 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 Ci­ ty 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 interest on the 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 ac counts established by the or dlnance authorizing the issue of bonds of which this bond is one. (7) This bend is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the of­ fice of the Bond Registrar in McHenry, Illinois, but only In the manner, subject to the limitations and upon payment of the charges provided in the authorizing ordinance, and upon surrender and cancellation of this bond. Upon such transfer a new bond or bonds of authorized denominations of the same maturity and for the same ag­ gregate principal amount will be issued to the transferee In ex­ change therefor. (8) The bonds are Issued In ful­ ly registered form In the denomination of $5,000 each or authorized integral multiples thereof. This bond may be ex changed at the office of the Bond Registrar for a like aggregate principal amount of bonds of the same maturity of other authoriz­ ed denominations, upon the terms set forth In the ordinance pursuant to which this bond is issued. (9) The City and the Bond Registrar may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving pay­ ment of or on account of prin­ cipal hereof, premium, if any, hereon and interest due hereon and for all other purposes and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. (ASSIGNMENT) FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Bond and does hereby irrevocably constitute and ap point • or its successor as Bond Registrar to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this assignment must correspond with the name of the registered owner as it ap­ pears upon the fact of the within Bond in every particular, without alteration or enlarge­ ment or any change whatever. Section S. That upon the is­ suance of any of the Waterworks and Sewerage Revenue Bonds herein provided for, the entire waterworks and sewerage system of said City, for the pur­ pose of th's ordinance, shall con­ tinue to be operated on a fiscal year basis, commencing the first day of May and ending the last day of April of each suc­ ceeding year, and so long as any of the bonds herein authorized to be issued are outstanding, the entire revenues derived from the operation of said system of said City shall be collected and shall be set aside as collected, and shall be deposited in ac­ cordance with the laws of the State of Illinois governing the deposit of public moneys, In a separate fund, which le hereby maintained and continued, to be designated as the "Waterworks and Sewerage Fund of the City of McHenry," which shall be kept apart and segregated from ail other moneys of said City and shall be used only to maintain and continue the several ac counts 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 the Waterworks and Sewerage Revenue Bonds issued under the terms of this or dlnance, and such Waterworks and Sewerage Fund shall be us­ ed only for such purposes and is hereby pledged therefor. Section 6. For the accounting of all moneys and assets of said Waterworks and Sewerage Fund at any time and from time to time while any Waterworks and Sewerage Revenue Bonds herein authorized are outstan ding and unpaid, there are hereby maintained and con tlnued the five separate Ac counts of said Fund 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 ail funds held in each of said Accounts, respectively, shall be con tinuously secured as provided by the laws of the State of Il­ linois governing the deposit of public moneys and into which there shall bit paid on the first business day of each month all moneys held in said Waterworks and Sewerage Fund in ac cordanca with the following pro­ visions and in the priority of said Accounts so created and establ ished as fol lows: (a) Operation and Maintenance Account: There first shall be set apart and'paid out of said Waterworks and Sewerage Fund into an Opera tion 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 (including and not in addition to the amount required to be deposited into said Account by the provisions of the Water­ works and Sewerage Revenue Bond ordinances adopted on March 19, 1956 and August 20, 1979) to aggregate $8,750 each year until a maximum sum of $46,000 is on deposit in said Ac count, which is hereby found and determined to be a reasonable amount necessary to ac­ complish 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 Ac count to the extent necessary to prevent or remedy a default in the payment of the interest on or principal of 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 Deprecia tion 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 City Council of said City. (c) Bond Account: There next shall be deposited in the Bond Account, which shall be main tained at a depositary to be designated from time to time by the City Council, 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 (l/6th) of the Interest becoming due on all outstanding Waterworks and Sewerage Revenue Bonds on the next sue ceeding interest payment date and amount equal to one-twelfth (l/12th) of the principal becom Ing due on the next succeeding principal payment date, sucn equal monthly installments for principal and interest to produce not less than the following minimum amounts in each fiscal year: Fiscal Year Ending April 30 1986 1987 1988 1989 1990 1991 1992 1993 Principal and Interest , $275,240.83 259,820.00 242,420.00 250,120 00 251,320.00 86.340.00 90,360.00 98,460.00 It is the express intent and determination of this City Coun­ cil that the amount of said in­ come and revenue so to be set aside and deposited into said Bond Account shall be in any event always sufficient to pay the interest on said bonds as the same becomes due and the prin cipal thereof as the same matures, and there shall be deposited out of such Income and revenue received from the operation of said system from month to month during each such fiscal year, without further authorization from this City Council, sufficient moneys in said Bond Account to pay pro mptly such principal and in terest. No further payments need 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 amount then on deposit in the Bond Reserve Account, is equal to the entire amount of all principal and interest that will be payable at the time of maturi ty on all of said bonds then re­ maining outstanding. If there are not sufficient funds in the Bond Account available to pay maturing prin cipal of and interest on the bonds herein authorized, such deficien­ cy shall be made up first by the transfer of funds from the Bond Reserve Account, next from the transfer of funds from the Depreciation Account, and next from the transfer of funds from the Surplus Account. (d) Bond Reserve Account: There shall next be deposited in the Bond Reserve Account a sum sufficient (including and not in addition to the amount re­ quired to be deposited into said accoiint by the provisions of the Waterworks and Sewerage Revenue Bond ordinances adopted on March 19, 1956 and August 20, 1979) to aggregate $24,900 each year until a max­ imum of $127,000 is on deposit in said Account, and at which figure said Account, not withstanding any transfer therefrom as herein permitted, shall thereafter be continuously 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 ex­ ists a deficiency in the Bond Ac­ count hereinabove established, and all withdrawals therefrom for that purpose shall be reim­ bursed from the next revenues available therefor as provided therein The moneys in said Bond Reserve Account shall be deposited with a depositary to be designated from time to time by the City Council, and may be In vested and reinvested in bonds or other obligations 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 pro­ viding for all of the deposits hereinabove listed in sub paragraphs (a) through (d), and after the reimbursement of any account th3t is depleted by withdrawals, shall be deposited in the Surplus Account. The moneys in said Surplus Account shall be used or held for use ex dusively (a) for the purpose of making improvements and ex tensions to the system, or (b) for the prior redemption of the bonds herein authorized prior to their maturity in accordance with all the terms, provisions and conditions to accomplish such prior redemption, and any bonds so redeemed shall be cancelled, or (c) for any lawful purpose Section 7. 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 cover ing sui.i risks as shall be recom mended by a competent in dependent engineer employed for the purpose of making such recommendations, and all moneys received for losses under such insurance policies as insure against physical damaoe 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 pro perty damaged or replacing the property destroyed, and provi sion 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 liabili­ ty shall be paid Into the Opera tion and Maintenance Account and used in paying the claims on account of which* they were received. The payment of premiums for all insurance policies required under the provisions of this sec tion shall be considered an operation and maintenance ex pense Section 8. That while any of the Waterworks and Sewerage Revenue Bonds issued pursuant to this ordinance remain outstanding or unpaid, rates charged for water and seweraqe service shall be sufficient at all times to pay all costs of opera­ tion and maintenance of the system, to make the payments and maintain the balance as re­ quired in the Depreciation Ac count, 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 City of McHenry, such rates at amounts for water and sewerage services as shall be adequate to meet the re­ quirements 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 in­ to the Waterworks and Sewerage Fund created by this ordinance as other revenues derived from the operation of the system and in the same man­ ner as other revenues are so re quired to be deposited. In addition to the foregoing said City covenants not to pro­ vide any free service of said system and to pay promptly for the use of all facilities con nected, and to be connected, with said system. It is expressly herein covenanted mat, to the extent permitted by law, 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 en­ forceable liens upon the earn ings of the combined water works and sewerage system of said City, including all further extensions, additions, and im provements thereto, whether ac­ quired through purchase, con tract, or otherwise. Section 9. In the event said Ci­ ty defaults in complying with any covenant contained in this ordinance, any owner of any bond issued hereunder may app­ ly for the appointment of a receiver, or may, either In law or in equity, by proper suit, com pel the officials of said City to perform all duties required by law and by this ordinance, in­ cluding the making and collec ting of sufficient rates for water and sewerage services for that purpose and the application and segregation of all income and revenue therefrom in ac­ cordance with the requirements of this ordinance. Section 10. That it is hereby covenanted and agrees with the owners of the bonds herein authorized that said City will not issue any other or additional bonds or other evidences of obligations 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, ex tensions, repairs and rehabilita tions to the properties comprls Ing said system as shall be determined necessary for the continued efficient operation of said system by a certificate filed of an independent engineer In responsible charge of such fur ther improvements, extensions, repairs and rehabilitations, ,(i) giving a reasonably detailed description., of .such work.en Mlimate of the cost thereof, and an estimate of the time of completion thereof; and (ii) showing the feasibility of such revenue financing with reference to then existing rates and anticipated earnings bas­ ed thereon, which cer­ tificate shall be approved by and shall be made of public record In the pro ceedings of the governing body of said City before any sucb additional bonds Ized, ver, that no such s for such pur s shall be issued unless and until the gross cash operating revenues of said system earned for the last fiscal year ending April 30 immediate ly preceding the authorization of any such additional bonds, as shown by an audit of an indepen dent certified public accountant, were sufficient to pay all costs of the operation and maintenance of said system, to make the an nual payments to the Deprecia­ tion 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 or dinance, and leave a balance equal to one and one-tenth (1 l/10th) times the maximum amount of interest and principal that will become due in any fiscal year subsequent to the is­ suance of such additional bonds on the bonds of all issues then outstanding and on a parity with this issue of bonds and on the ad ditional 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 Account shall be increased in the proportion to the principal amount of any ad ditional bonds so issued. (B) Said City reserves the right to issue bonds to refund the Waterworks and Sewerage Revenue Bonds herein authorlz ed, or any portion thereof, with the consent of the holders thereof, from time to time as may be determined necessary or expedient and for the best in­ terests 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 operation of said system on a parity with any of the said prin­ cipal amount Waterworks and Sewerage Revenue Bonds 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 either paragraphs A or B of this section for the issue of additional bonds for the con struction 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 dlstinc tion as to participation 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 and delivery or negotiation thereof, or by reason of the date or dates of said bonds, or the date or dates of maturity areaut provided, pose or pur thereof, or for any other reason , coeds of the safe of the bonds whatsoever, the intent hereof ! shall be devoted to and used with being that each and all of said i due diligence for the acquisition bonds, as aforesaid, . and of coupons evidencing interest thereon, shall have the same right and pledge as to payment y with the same legal and security effect as If each and all of said bonds and coupons had been ex- ecuted,/Issued, delivered and simultaneously as eeding. 11. That the City of hereby covenants and with the holder, or holders of said bonds that It will punctually perform all duties with reference to said system, including the making and collec ting of sufficient rates for the use and service of said system, all as required by the Constitu tion and laws of the State of Il­ linois, and segregating the revenues of said system and maintaining the Waterworks and Sewerage Fund and the ap plication of the respective Ac­ counts created by this or­ dinance, and it hereby covenants and agrees not to sell, lease, loan, mortgage, or in any manner dispose of or encumber said system, including any and all extensions and im , provements that ma/ be made thereto, or the income and revenue derived therefrom, ex cept as permitted In Section 10 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. And said City further covenants and agrees with the holders of said Waterworks and Sewerage Revenue Bonds authorized hereunder to main tain in good condition and con tinuously 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 12. Said Waterworks and Sewerage Fund and the Ac counts created under Section i hereof, shall be audited within sixty (60) days after the close of each fiscal year by an indepen dent firm of certified public ac countants, and such audit and Accounts shall be open for in­ spection 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 or­ dinance provisions and the man ner in which the system has been operated and any recom mendation for improving the operation of the system, (d) In surance 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 pur­ chasers of the bonds herein authorized, and shall also be fur­ nished to any bondholder upon request. Section 13. 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 MtdfeoMhrtarchaAdM, Mdittam or alterations of any kind SWWf be made hereto, except as hereinbefore provided, until all of said bonds and the interest thereon shall have been paid In full, or unless and until provision shall have been made for the payment thereof. Section 14. That the proposal of the First National Bank of McHenry and the McHenry State Bank, both of McHenry, II llnois, to purchase the said bonds herein authorized in ac­ cordance with their contract for the purchase thereof be and the same is hereby in all respects ratified, approved and confirm ed, and said bonds when duly ex ecuted as provided herein shall be delivered to the Treasurer who shall receipt for the pay ment of said bonds against delivery thereof to said pur chase* s at a price of par plus ac­ crued interest from the date of said bonds to the date of the delivery and payment thereof Ail proceeds derived at the sale and delivery of the said bonds shall be accounted for by said. Treasurer as follows: / (i) Accrued interest received upon the sale of said bonds will be deposited into the Bond Account hereunder and applied to the payment of the first interest due on said bonds (II) The proceeds received as principal, shall be deposited in a separate and special ac­ count of said City to be known and designated as the "Waterworks and Sewerage System Bond Acquisition Fund Ac count, 1984" (the "Ac quisition Account"), and such deposits shall be made in a depositary to be hereafter designated by the City Council, to be secured in the manner, form and time as by law required, and all proceeds held in said Construction Fund Account shall be us ed and held for use solely to pay or to reimburse the City for the cost of acquisi tion of the water distribu tion system of the Lakeland Park Water Company in accordance with the contract of pur chase therefore approved by the City Council, as hereinabove described in this ordinance, and the beneficial interest to all moneys held in said Ac quisition 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 ony upon submis­ sion to him and to said, depositary of an order for i 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 ex ecute and deliver to the designated depositary such cer tificates, proceedings, and agreements as may be necessary or convenient to establish said Acquisition Ac count herein created and to pro per Iy secure all proceeds thereof, and to evidence torn piiance herewith in the making of any withdrawals therefrom Section 1J. The principal pro of the water distribution system of the Lakeland Park water Company. The Mayor and City Council certify and covenant with the purchasers and holders of the bonds from time to time outstanding that so long as any of the bonds remain unpaid, moneys on deposit in any fond or account in connection with the bonds, whether or not such moneys were derived from the proceeds or sale of the bonds or from any other source, will not be used in a manner which will cause the bonds to be "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amend­ ed, and any lawful regulations promulgated thereunder, in­ cluding Treas. Reg. Sections l 103 13, 1.103-14 and 1.103-15 (1979), as the same presently ex­ ist, or may from time to time hereafter be amended, sup­ plemented, or revised. The City Council reserves the right however, to make any invest ment of such moneys permitted by Illinois law and this or dlnance if, when and to the ex tent that said Section 103(c) or regulations promulgated thereunder shall be repealed or relaxed or shall be held void by final decision of a court of com petent jurisdiction, but only If any investment made by virtue of such repeal, relaxation, or decision in such matters, in the opinion of counsel of recognized competence in such matters, result In making the Interest on the bonds subject to federal in come taxation Concerning the use of pro ceeds of the bonds, the officers of the City are hereby authorlz ed and directed to make such further covenants, estimates, representations, or assurances as may be necessary or ad vlsable to the end that the bonds not be "arbitrage bonds" as aforesaid. Section 16. The City recognizes that Section !03(j) of the Code requires the bonds to be issued and to remain in fully registered form in order that in terest thereon is exempt from federal Income taxation under laws In force at the time the bonds are delivered. In this con nectlon, the City, agrees that it #wlll not take any action to per­ mit the bonds to be Issued In, or converted into, bearer or coupon form. Sect ion 17. Lis t o f Bondholders. The Bond Registrar shall maintain a list of the names and addresses of the holders of all bonds and upon any transfer shall add the name and address of the new bon­ dholder and eliminate the name and address of the transferor bondholder. Section II. If any section, paragraph, clause or provision of this ordinance shall be held In­ valid, the invalidity of such sec tion, paragraph, clause or provi­ sion shall not affect any of the other provisions of this or­ dinance. Section 19. All ordinances, resolutions, or orders, or parts thereof, in conflict with the pro­ visions of this ordinance are, to the extent of such conflict, hereby repealed. Section 20. This ordinance, together with a notice In the form set forth In Section 21 hereof shall be published, within ten (10) days of passage of the ordinance by the City Council, once In The Plaindeeler-Herald, in the City, and if no petition, signed by electors numbering 15% of the number of electors voting for Mayor at the last preceding municipal election at which a Mayor for the City was elected (i.e., 391 electors) and asking that the question of im­ proving the system, as provided In this ordinance, end the is suance of revenue bonds therefor, be submitted to the electors of the City, is filed with the City Clerk within twenty one (21) days after the date of the publication of this ordinance, then this ordinance shall be in full force and effect A petition form as set out In Section 21 hereof shall be provided by the City Clerk to any individual re­ questing one Sertlon '1. The notice to be published pursuant to Section 18 hereof shall be in substantially the following form: (form of notice) NOTICE OF INTENT TO ISSUE BONDS AND RIGHT TO FILE PETITION ^4lotlce is hereby given that &ursuant to Ordinance o. adopted , 1984, the City of McHenry, McHenry County, Illinois (the "City") intends to issue Its Waterworks and Sewerage Revenue Bonds, Series 1984 (the "Bonds") in the amount of $500,000, and bearing interest at not to exceed the rate of for the purpose of defraying the cost of acquiring the water distribution system of the Lakeland Park Water Company. In addition, notice is hereby given that If a petition signed by 391 electors of the City re­ questing that the question of ac­ quiring the Wjater distribution system of the Lakeland Park Water Company and the is­ suance of the Bonds be submit­ ted to the electors of the City Is submitted to the City C.erk within 21 days of the date of publication hereof, the question of acquiring the water distribu tion system of the Lakeland Park Water Company as provld ed In Ordinance No _ and the issuance of the Bonds shall be submitted to the electors of the City. If such a petition is fil­ ed with the City Clerk on or before December 10, 1984, the question will be submitted to said electors at the consolidated . , McHenry, Illinois ., McHenry, llllr „ .McHenry, I (additional signature lines shall be provided) I, . (Insert residence address) McHenry. Illinois, do hereby certify thai I am a registered voter of the City of McHenry, McHenry County, Illinois, and that the signatures on this peti­ tion were signed in my presence within the City of McHenry, McHenry County, Illinois, and are genuine, ana. to the best of my knowledge and belief, the persons so signing were at the time of signing this petition registered voters of said City of McHenry and that their ad dresses are correctly stated herein. t%i _ Subscribed and sworn to before me this day Of _ . . . '984 (SEAL) PASSED this 29th day of November. 1984. AYES: Bolger. Datz. McClat chey, Nolan, Serrltella, Smith, Snell NAY: None ABSENT: None NOT VOTING: Busse (possible conflict of interest) ABSTAINED None APPROVED this 29th day of November, 1984 III Joseph B Stanek Mayor ATTEST III Barbara E Gilpin City Clerk (Published in the Plaindealer Herald, Dec 5.1984) M144 PUBLIC NOTICE The regular monthly Board of Trustees Meeting of the Township of Nunda scheduled for Thursday, December 13, 1984. has been rescheduled to December 6, 1984. at 7 30 P.M. at the Nunda Township Office, 3510 Bay Road, Crystal Lake, II linois Kathleen Harper Nunda Town Clerk Dated: November 13,1984 (Published in the Plaindealer Herald, Nov. 23. 28. Dec 5,1984) M2462 primary election to be held on February 26,1985 If such a peti­ tion Is filed with the City Clerk after December 10. 1984, the question will be submitted to said electors at the consolidated election to be held on April 2, 1985 A form of petition for such purpose is available from the of­ fice of the City Clerk /$/ (insert name) City Clerk, City of McHenry, McHenry Coun­ ty. Illinois Tne form of petition to be pro vided by the Citi Clerk to any In­ dividual requesting one shall be in substantially the following form: (form of petition) - * - PETITION To the City Qerk of the City of McHenry, McHenry County, II linois; We, the undersigned, being electors of the City of McHenry. McHenry County, Illinois, do hereby petition you to cause the question of acquiring the water distribution system of the Lakeland Park Water Company, as provided in Ordinance No of said City, and the Is suance of Waterworks and ige Revenue Bonds, Series lfc as provided in said Ordinance No. to be sub mltted to the eiectors &f saii^Ci •r Notary Public .. -97 , n o P-) o \