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HomeMy WebLinkAboutG64-80 Ordinance No. G64-80 AN ORDINANCE AMENDING ORDINANCE G22-75 OF THE CITY OF ELGIN, KANE AND COOK COUNTIES, ILLINOIS, WHICH ORDINANCE ESTABLISHED PROCEDURES TO BE FOLLOWED BY THE CITY IN ISSUING NON-REFERENDUM GENERAL OBLIGATION BONDS WHEREAS, the City Council of the City of Elgin, Kane and Cook Counties, Illinois, (the "City"), has heretofore adopted Ordinance No. G22-75 on April 23, 1975, and has heretofore adopted Ordinance No, G14-80 on January 28, 1980, which ordinance amends Ordinance G22-75 (Ordinance No. G22-75 as amended by Ordinance No. G14-80 being hereinafter referred to as the "Enabling Ordi- nance"); and WHEREAS, because of inflationary factors and the generally prevailing conditions in the market for the City's bonds, it is necessary to amend the Enabling Ordinance to increase the authorized interest rate at which the City may issue its bonds; and WHEREAS, the City Council of the City has therefore determined that it is necessary and in the best interests of the City that the Enabling Ordinance be amended to authorize the issuance of the City's bonds at a rate of not to exceed ten per cent (10%) per annum, all as hereinafter provided. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, KANE AND COOK COUNTIES, ILLINOIS: Section 1. That Section 3 of the Enabling Ordinance be and is hereby amended to read as follows: "Section 3. That the Bond Ordinance shall indicate the amount of money necessary to be borrowed, the amount of bonds to be issued in evidence thereof, shall fix the details of such bonds, including their date, number, denomination and maturity, which shall not exceed forty (40) years from the date of said bonds, and their rate of interest which shall not exceed 10% per annum. The Bonds shall be sold in such manner as may be determined by the City Council. If the bonds are authorized to bear interest at the maximum rate, they shall be sold at a price of par and accrued interest to delivery. If the bonds are authorized to bear interest at a rate less than the maximum interest rate, they may be sold at a price of less than par, provided the price shall be such that the interest cost to the City of the money received by it from proceeds of the sale of said bonds shall not exceed 10% per annum, computed to the average maturity of all bonds sold as a single issue, according to standard tables of bond value. A contract for the sale of such bonds may be entered into prior to the adoption of the Bond Ordinance or the Bond Ordinance may provide for the subsequent sale of the bonds therein authorized. In the event of such subsequent sale and if the bonds bear interest at a rate or rates less than that authorized in such Bond Ordinance, prior to the delivery of such bonds the taxes levied in such Bond Ordinance shall be abated by that amount representing the savings resulting from the sale of such bonds at a lower rate of interest than authorized in such Bond Ordinance." Section 2. That this ordinance shall take effect immediately upon its adoption and approval by the Mayor of the City. s/ Richard L. Verbic Richard L. Verbic, Mayor Presented: October 8, 1980 Passed: October 8 , 1980 Vote: Yeas 6 Nays 0 Recorded: Published: Attest: s/ Marie Yearman Marie Yearman, City Clerk 4)