2-32-780 Issuance – Ordinance and public hearing required.

   The city council shall adopt an ordinance (hereinafter designated the "water revenue bond ordinance"), which shall set forth the amount of money necessary to be borrowed and the amount of the water revenue bonds to be issued in evidence of such borrowing, shall describe in a general way the improvements, extensions, or both, necessary to be made and the estimated cost thereof. It shall not be necessary that such water revenue bond ordinance refer to or incorporate therein by reference detailed plans and specifications of such improvements, extensions, or both.

   Prior to the adoption of any such water revenue bond ordinance, a public hearing shall be held thereon by the finance committee of the city council, provided that no approval of projects to be permanently financed thereby shall be necessary if such projects have been theretofore approved by the finance committee and the city council, and financed through the issuance of interim notes pursuant to Sections 2-32-850 through 2-32-890 of this chapter, pursuant to a notice given of such public hearing, such notice to refer generally to the subject matter of the water revenue bond ordinance and to be published at least once in a newspaper published in and having a general circulation within the City of Chicago, the date of such publication to be not less than ten days prior to the date of the public hearing.

(Prior code § 7-68)

2-32-790 Contents of ordinance.

   The water revenue bond ordinance shall fix the details of the bonds to be issued, including their date, number, denomination and maturity, which cannot exceed 40 years from their date and their maximum rate of interest which shall not exceed eight percent per annum. The bonds shall be sold in such manner as may be determined in the water revenue bond ordinance and they shall be sold at a price of not less than par. The water revenue bond ordinance shall further provide that it will be plainly stated on the face of each water revenue bond that the same has been issued under and pursuant to the provisions of this ordinance and that such water revenue bond does not constitute an indebtedness of the City of Chicago within any constitutional or statutory provision or limitation as to debt. The water revenue bond ordinance shall further set forth and contain such provisions and covenants as may be deemed necessary or advisable for the assurance of the prompt payment of the water revenue bonds thereby authorized and as may be thereafter authorized and including the prompt payment of water revenue bonds or certificates theretofore issued and which by their terms are payable from the revenues of the Chicago Water System and may be then outstanding.

(Prior code § 7-69)

2-32-800 Repayment from water system funds – Water rates.

   Whenever water revenue bonds are issued pursuant to the provisions of this ordinance, the entire revenue received from the operation of the Chicago Water System shall be deposited in a separate fund designated as the "Water Fund of the Municipality of Chicago". This fund shall be used only in paying (1) the cost of maintenance and operation of the Chicago Water System; (2) obligations of the City of Chicago heretofore issued that are payable by their terms from the revenues of the system, whether such obligations were heretofore issued in the form of certificates, bonds or otherwise; (3) Water revenue bonds issued pursuant to the provisions of this Code; and (4) establishing and maintaining all reserve funds or accounts as may be covenanted for in the bond ordinances adopted authorizing such water revenue bonds. Provided, however, that any funds available after or not necessary for satisfying the above requirements may be used for any lawful purpose of the Chicago Water System.

   Rates charged by the city for water used shall be sufficient to pay the cost of maintenance and operation of the Chicago Water System and to pay promptly when due the principal of and interest upon all the obligations of the city heretofore issued that are payable by their terms only from such revenues of the water system and the payment of water revenue bonds issued pursuant to the provisions of the water revenue bond sections of this chapter, and to establish and maintain all reserve funds or accounts as may be covenanted for in bond ordinances adopted and authorizing the issuance of such water revenue bonds. These rates charged shall not be reduced while any of such certificates or bonds or obligations are unpaid.

(Prior code § 7-70)