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HomeMy WebLinkAboutT5-82 ORDINANCE NO. T5-82 AN ORDINANCE providing for borrowing money and issuing bonds of the City of Elgins Kane and Cook Counties, Illinois, to the amount of $2,950,000 for paying the cost of constructing public improvements in the City, and providing for the levy and collection of a direct annual tax for the payment of the principal and in- terest of the bonds. e f s WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois (the "City") , has a population in excess of 25 ,000 as determined by the last official census, and accordingly pursuant to the provisions of the 1970 Constitution of the State of Illinois, and particularly Article VII, Section 6(a) thereof, the fib. City is a home rule unit and as such may exercise any power or perform any function pertaining to its government and affairs, including, but not limited to, the power to tax and to incur debt; and WHEREAS, pursuant to the provisions of Sections 6(d) and 6(k) of said Article VII of said 1970 Constitution, the City has the power to incur debt payable from ad valorem tax receipts maturing within forty (40) years from the time it is incurred and without prior referendum approval; and WHEREAS, on the 23rd day of April, 1975, the City Council of the City did adopt an ordinance determining the procedures to ' be followed in the borrowing of money for public purposes of the City and in evidence of such borrowing the issuing of full faith r"'" and credit bonds of the City without referendum approval, such ordinance being entitled: • , M_ ORDINANCE NO. G22-75 AN ORDINANCE establishing procedures to be followed by the City of Elgin, Kane and Cook Counties, Illinois, in issuing non-referendum general obligation bonds which ordinance was amended by Ordinance No. G14-80 adopted on January 28, 1980, by Ordinance No.G64-80 adopted on October 8, 1980 and by Ordinance No. G39-82 adopted on July 30 , 1982 (Ordinance No. G22-75 as so amended being referred to hereinafter as the "Enabling Ordinance") ; and WHEREAS, it is deemed to be necessary, essential 'and in the best interests of the inhabitants of the City that the City renovate and improve a building owned by the City and make ow other public improvements incidental thereto, all in accord with the plans and specifications therefor prepared by Burnidge, Cassell and Associates, P.C. and now -on file in the office of the City Clerk and available for public inspection (the "Project") , all at an estimated cost of $2,950,000 , which estimate includes the cost of constructing and acquiring such improvements, legal fees, engineering, administrative and other expenses incidental thereto; and WHEREAS, it is necessary that the Project be constructed in order to meet the needs of the inhabitants of the City, and it is necessary for that purpose that the sum of $2,950,000 be borrowed at this time and in evidence of such indebtedness full faith and credit bonds of the City -(the "Bonds") be issued in the principal amount of $2,950,000 and that such indebtedness be -2- incurred without submitting the question of incurring such indebtedness to the electors of the City for their approval: NOW, THEREFORE, Be It Ordained by the City Council of -the City of Elgin, Kane and Cook Counties, Illinois, as follows : Section 1. That the City Council of the City hereby finds and determines that the borrowing of $2,950,000 for the purpose of paying the cost of the Project is necessary for the welfare of the government and affairs of the City and that such borrowing is for a proper public purpose and is in the public interest. Section 2. That in order to raise the sum of $2,950,000 needed for the purpose of paying the cost of the Project, there rk be borrowed by, for and on behalf of the City the sum of $2,950,000 and to evidence said loan negotiable coupon bonds of the City be issued. Each of the Bonds shall be designated "Corporate Purpose Bond, Series 1982," be dated August 1, 1982, be numbered consecutively from 1 to 590, inclusive, be of the denomination of $5,000 each and become due serially on January 1 of each of the years, in the amounts and bear interest annually at the rates as follows : -3- Year of Principal Rate of Maturity Amount Interest 1985 $150,000 11.00% 1986 200,000 9. 75% 1987 250,000 9. 50% 1988 300,000 9. 50% 1989 350,000 9. 50% 1990 350,000 9.50% 1991 450,000 9. 75% 1992 450,000 10.00% 1993 450,000 10.00% Interest on the Bonds shall be payable on July 1, 1983 and semiannually thereafter on the first days of January and July in each year, which said interest payments to date of maturity of principal shall be evidenced by proper interest coupons attached to each Bond and maturing on the dates herein provided. Both rk principal and interest shall be payable in lawful money of the United States of America at The Parkway Bank and Trust Company s Harwood Heights Illinois . The seal of the City shall be affixed to each of the Bonds and the Bonds shall be signed by the Mayor by his facsimile signature and by the City Clerk by his manual signature, and said coupons shall be signed by said, officials, respectively, by their respective facsimile signatures, and said officials, by the execution of the Bonds, shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. Section 2. That the Bonds shall be payable to bearer, provided, however, that they may be subject to registration as to principal in the name of the holder on the books of the Treasurer '" of the City, such registration to be evidenced by notation of the -4- Treasurer on the back of any Bonds so registered. No Bond so registered shall be subject to transfer except upon such books and similarly noted on the back thereof unless the last registration shall have been to bearer. Such registration of any of the Bonds shall not, however, affect the negotiability of the coupons attached to the Bonds, but such coupons shall continue trans- ferable by delivery merely. Section 4. That each of the Bonds and the interest coupons to be thereto attached shall be in substantially the • • following form: -5- (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN CORPORATE PURPOSE BOND, SERIES 1982 Number $5,000 KNOW ALL MEN BY THESE PRESENTS, that the City of Elgin, Kane and Cook Counties, Illinois (the "City") , hereby acknowledges itself to owe and for value received promises to pay to bearer or, if this bond be registered, to the registered holder hereof, the sum of FIVE THOUSAND DOLLARS ($5,000) on the first day of rJanuary, 19_, together with interest on said sum from the date hereof until paid at the rate of per cent ( %) per annum, payable July 1, 1983, and semiannually thereafter on January 1 and July 1, on presentation and surrender of the respective interest coupons hereto attached as they severally become due and payable. Both principal and interest are payable in lawful money of the United States of America at For the prompt payment of this bond, both principal and interest, as aforesaid, at maturity, and the levy of taxes sufficient for that purpose, the full faith, credit and resources of the City are hereby irrevocably pledged. -6- • • This bond is one of a series of bonds issued by the City for the purpose of paying the cost of renovating and improving a building owned by the City, pursuant to and in all respects in compliance with the provisions of an ordinance adopted by the City Council of the City establishing the procedures for issuing full faith and credit non-referendum bonds, and an ordinance authorizing the issuance of this bond and the series of which it forms a part, duly published and now in full force and effect. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of the State of Illinois, and including the procedures established by the City ordinance for the exercise of its home rule powers conferred by Section 6 of Article VII of said Constitution of the State of Illinois in issuing its full faith and credit bonds payable from ad valorem property tax receipts without prior referendum approval, to exist or to be done precedent to and in the issuance of this bond, .have existed and have been properly done, happened and been performed in regular and due form and time as required by law; that the indebtedness of the City, how- soever evidenced and incurred, does not exceed any constitutional or statutory limitation, and that provision has been made for the collection of a direct annual tax, in addition to all other taxes, on all of the taxable property in the City sufficient to pay the interest hereon as the same falls due and also to pay and discharge the principal hereof at maturity. eft -7- 1 This bond is subject to registration as to principal in the name of the holder on the books of the City Treasurer, such registration to be evidenced by notation of such Treasurer on the back hereof, and after such registration no transfer hereof, except upon such books and similarly noted hereon, shall be valid unless the last registration shall have been to bearer. Registration hereof shall not affect the negotiability of the coupons hereto attached, which shall continue negotiable by delivery merely, not- withstanding registration hereof. IN WITNESS WHEREOF, the City of Elgin, Kane and Cook Counties, Illinois, by its City Council, has caused its corporate seal to be hereunto affixed, and this bond to be signed by the eilk Mayor of the City by his facsimile signature and by its City Clerk, and the coupons hereto attached to be signed by said officials, respectively, by their facsimile signatures, and said officials, by the execution hereof, do adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons, all as of the first day of August, 1982. (Facsimile Signature) Mayor, City of Elgin, Kane and Cook Counties, Illinois City Clerk, City of Elgin, Kane and Cook Counties, Illinois ESEAL] -8- (Form of Coupon) Number $ On the first day of , 19 , the City of Elgin, Kane and Cook Counties, Illinois, will pay to bearer Dollars ($ ) in lawful money of the United States of America at , for interest due that day on its Corporate Purpose Bond, Series 1982, dated August 1, 1982, Number • (Facsimile Signature) (Facsimile Signature) City Clerk, City of Elgin, Mayor, City of Elgin, Kane and Cook Counties, Kane and Cook Counties, • Illinois Illinois (Form for Registration as to Principal) Date of Name of Signature of Registration Registered Owner City Treasurer Section That for the purpose of providing funds required to pay the interest on the Bonds promptly when and as the same falls due and to pay and discharge the principal thereof at maturity, there be and there is hereby levied upon all the taxable property within the City a direct annual tax sufficient for that purpose, and that there be and there is hereby levied sok -9- etwk on all the taxable property in the City, in addition to all other taxes, the following direct annual tax, to-wit: For the Year A Tax Sufficient to Produce the Sum of 1982 $408,885.42 for interest up to and including January 1, 1984 1983 $438,625. 00 for interest and principal 1984 $472,125. 00 for interest and principal 1985 $502,625. 00 for interest and principal 1986 $528, 875. 00 for interest and principal 1987 $550, 375. 00 for interest and principal 1988 $517,125. 00 for interest and principal 1989 $ 583,875. 00 for interest and principal 1990 $540,000. 00 for interest and principal 1991 $ 495, 000.00 for interest and principal That interest or principal coming due at a time when there are insufficient funds on hand to pay the same be paid promptly when due from current funds on hand in advance of the elm, collection of the taxes herein levied, and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. The City covenants and agrees with the purchasers and the holders of the Bonds that so long as any of the Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to levy and collect the taxes herein levied. The City and its officers will comply with all present and future applicable laws in order to assure that such takes will be levied, extended and collected as provided herein. Section 6. That forthwith as soon as this ordinance becomes effective, a copy hereof certified by the Clerk of the -10- • City, shall be filed with the County Clerks of Kane and Cook Counties, Illinois, and said County Clerks shall, in and for each of the years 1982 to 1991, inclusive, ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in said years, and said County Clerks shall extend the same for collec- tion on the tax books in connection with other taxes levied in said years, in and by the City for general corporate purposes of the City, and in said years such annual tax shall be levied and collected by the City in like manner as taxes for general corporate purposes for said years are levied and. collected, and in addition to and in excess of all other taxes. Section j. That forthwith after this ordinance has e""'' became effective as provided by law, the Bonds herein authorized shall be executed and delivered to the Treasurer of the City and be by him delivered to Clayton Brown $ Associates, Inc. , the purchaser thereof, upon receipt of the purchase price therefor, same to be the par value of the Bonds plus accrued interest to date of delivery, and a premium of $ none That the contract for the sale of the Bonds heretofore entered into, be and is in all respects ratified, approved and confirmed, it being hereby found and determined that said contract is in the best interests of the City, and that no person holding an office of the City, either by election or appointment, is in any manner interested, either directly or indirectly, in his own name or the name of any other person, association, trust or corporation, in said contract ''` for the purchase of the Bonds. -11- Section 8. From the amounts received upon the sale of the Bonds, principal proceeds in the amount of $2,950,000 shall be deposited into the "Project Fund" (the "Project Fund") , hereby created, and disbursements shall be made from the Project Fund only for the purposes for which the Bonds are being issued, as set forth in the preceding text, including expenses of issuance of the Bonds or otherwise incidental to the Bonds or the Project, and for which such principal proceeds are hereby appropriated. Accrued interest, and premium, if any, shall be and are hereby appropriated for the purpose of paying the interest due on the Bonds up to and including July 1, 1983 and, to that end, is hereby ordered deposited into the "Corporate Purpose Bonds, Series 1982 Bond Fund" (the "Bond Fund") , which fund shall be the fund for the payment of principal of and interest on the Bonds. Taxes received for the payment of the Bonds shall be deposited into the Bond Fund and used solely and only for paying the Bonds. Interest received from deposits in the Bond ' Fund shall be retained in the Bond Fund for payment of the Bonds on the interest payment date next after such interest is received. Section 2. The City Council hereby represents and certifies as follows with respect to the Bonds : (a) The City has heretofore incurred, or within six months after delivery of the Bonds expects to incur, substantial binding obligations with respect to the Project to be paid for with money received from the sale of the Bonds, said binding obligations comprising binding contracts for work on the Project in not less than the amount -12- . . of $ 1,253,194. 83 , such sum being not less than 2-1/2% of that portion of the Project to be financed with proceeds of the Bonds. (b) Over $ 2,550,000.00 of the money derived from the sale of the Bonds and deposited in the Project Fund will be expended on or before August 1 , 1985, for the purpose of paying the cost of the Project, said date being within three years following the date of issue of the Bonds. (c) All of the principal proceeds of the Bonds will be used, needed and expended for the purpose of paying the cost of the Project. (d) Work on the Project is expected to proceed with due diligence to completion. (e) No portion of the acquisitions or improve- ments constituting a part ,of the Project has been or is expected to be sold or otherwise disposed of in whole or in material part prior to the last maturity of the Bonds. "Material part" means (i) land, or (ii) any improvement, or (iii) personal property or fixtures in excess of that which is expected to be sold, traded in or discarded upon wearing out or becoming obsolete. (f) The City will receive par plus accrued interest and $ none premium from the sale of the Bonds. Accrued interest and premium are to be are to be deposited in the Bond Fund to pay in- terest coming due on the Bonds up to and including July 1, 1983. (g) Except for the Bond Fund, the City has not created or established, and will not create or establish, any sinking fund, reserve fund or any other similar fund to provide for the payment of the Bonds. The Bond Fund has been established and will be funded in a manner primarily to achieve a proper matching of revenues and debt service, and will be depleted at least annually to an amount not in excess of one-twelfth the particular annual debt service on the Bonds. Money deposited in the Bond Fund will be spent within a 13-month period beginning on the date of deposit, and investment earnings in the Bond Fund will be spent within a 1 year period beginning on the date of receipt. r -13- (h) The foregoing statements of expectation are based upon the following facts and estimates: (1) Amounts shown as to be received will be received pursuant to contract of sale. (2) Amounts paid or to be paid into various funds and accounts have been directed to be paid into said funds and accounts by authority hereof. (3) The anticipated dates of expenditure of money in the Project Fund derived from the sale of Bonds and the amount to be spent on or before such dates is based upon consultation with edge, Cassell and Associates, P.C. , the architects/ engineers charged with responsible supervision of the Project. (i) To the best of the knowledge and belief of the City Council, there are no facts, estimates or circumstances that would materially change the conclusions and representations set out in this few Section and the expectations hereinabove set out are reasonable. (j) The City has not been notified of any listing or proposed listing of it by the Internal Revenue Service as a bond issuer whose arbitrage certifications may not be relied upon. The City also certifies and further covenants with the purchasers and holders of the Bonds from time to time outstanding that so long as any of the Bonds remain outstanding, moneys on deposit in any fund or account in connection with the Bonds, whether or not such moneys were derived from the proceeds of the 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 amended, and any lawful regulations promulgated thereunder, r -14- including Treas. Reg. Scl.103-13, 1.103-14 and 1.103-15 (1979) , as the same presently exist, or may from time to time hereafter be amended, supplemented or revised. The City reserves the right, however, to make any investment of such moneys permitted by state law, if, when and to the extent 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 competent jurisdiction, but only if any investment made by virtue of such repeal, relaxation or decision would not, in the opinion of counsel of recognized competence in such matters, result in making the interest on the Bonds subject to federal income taxation. Section 10. That a full, true and complete copy of this ordinance be published within ten days after passage in Daily Courier News , being a newspaper published in and of general circulation within the City. Section 11. That all ordinances , resolutions and orders, or parts .thereof, in conflict herewith, are to the extent of such conflict, hereby repealed and this ordinance shall be in full force and effect upon its passage, approval and publication thereof as provided by law. Approved: s/Richard L. Verbic Mayor, City of Elgin, Kane August 12 and Cook Counties, Illinois Adopted , 1982 s/ Marie Yearman City Clerk, City of Elgin, Kane and Cook Counties, Illinois -15-