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HomeMy WebLinkAboutT1-86 i 1 ORDINANCE NO. T1-86 AN ORDINANCE providing for borrowing money and issuing bonds of the City of Elgin, Kane and Cook Counties, Illinois, to the amount of $2,150,000 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 interest of the bonds. 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 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 and credit bonds of the City without referendum approval, such ordinance being entitled: 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. 64-80 adopted on October 8, 1980 and by Ordinance No. G39-82 adopted on July 28, 1982 (Ordinance No. G22-75 as so amended being referred to hereinafter as the "Enabling Ordinance" ) ; and All WHEREAS, it is deemed to be necessary, essential and in the best interests of the inhabitants of the City that certain street and sewer improvements be constructed in the City and that the City construct, acquire or improve the Tyler Creek detention basin and other storm water drainage facilities, all in accord with plans and specifications therefor to be prepared by the Illinois Department of Transportation and John Guillou, Engineer and to be placed on file in the office of the City Clerk and made available for public inspection . ( the "Project" ) , all at an estimated cost to the City of $2,150,000, which estimate includes the City' s share of the cost of constructing and acquiring such improvements, legal fees, engineering, administrative and other expenses incidental thereto; and -2- WHEREAS, it is necessary that the Project be con- structed in order to meet the needs of the inhabitants of the City, and it is necessary for that purpose that the sum of $2,150,000 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 $2,150, 000 and that such indebtedness be 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: eft. Section 1. Findings. That the City Council of the City hereby finds and determines that the borrowing of $2,150,000 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 . Authorization. That in order to raise the sum of $2,150,000 needed for the purpose of paying the cost of the Project, there be borrowed by, for and on behalf of the City the sum of $2,150,000 and to evidence said loan the bonds of the City be issued. Each of the Bonds shall be designated "General Obligation Corporate Purpose Bond, Series 1986, " and become due eft' serially on January 1 of each of the years, in the amounts and bear interest annually at the rates as follows: -3- I Year of Principal Rate of Maturity Amount Interest 1992 $ 75,000 8 .75% 1993 75,000 8.80% 1994 100,000 8.80% 1995 150,000 6.80% 1996 250,000 6.80% 1997 250,000 6 .90% 1998 250,000 7 .00% 1999 250 ,000 7 .10% 2000 250,000 7. 20% 2001 250,000 7. 30% 2002 250,000 7 .40% The Bonds shall be dated June 1, 1986, 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 Bond shall represent install- ments of principal maturing on more than one date) and shall be numbered 1 and upward. The Bonds shall bear interest from their date or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of the Bonds is paid, such interest (computed upon the basis of a 360- day year of twelve 30-day months) being payable on the first day of July, 1987 and semi-annually thereafter on each January 1 and July 1. Interest on each Bond ,shall be paid by check or draft of The First Commercial Bank, Chicago, Illinois (the "Bond Reg- istrar" ) , payable upon presentation in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the 15th day of the month -4- next preceding the interest payment date. The principal of the Bonds shall be payable in lawful money of the United States of America upon presentation at the corporate trust office of the Bond Registrar in Chicago, Illinois. The Bonds shall be signed by the facsimile signatures of the Mayor and Clerk of the City, and shall have affixed thereto or imprinted thereon the seal of the City 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 sufficient for all purposes, the same as if such officer had remained in office until delivery. All Bonds shall have thereon a certificate of authen- tication substantially in the form hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the City and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to 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 authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this ordinance. The certificate of authentication on any Bond shall be deemed to have been executed 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. -5- Section 3 . Registration of Bonds; Persons Treated as Owners. The City shall cause books (the "Bond Register" ) for the registration and for the transfer of the Bonds as provided in this ordinance to be kept at the corporate trust office of the Bond Registrar in Chicago, Illinois, which is hereby constituted and appointed' the registrar of the City. The City is authorized to prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and exchange of Bonds. Upon surrender for transfer of any Bond at the cor- porate trust office of the Bond Registrar in Chicago, Illinois, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed 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 aggregate principal amount . Any fully registered Bond or Bonds may be exchanged at said office of the 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, -6- 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 exchange any Bond during the period beginning on the sixteenth (16th) day of the month next preceding any interest payment date on such Bond to and including the day preceding such interest payment date. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest 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 effectual 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 exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds. Section 4. Redemption. Bonds due on or after January 1, 1997 are redeemable prior to maturity at the option of the ruk City, in whole or in part, on July 1, 1996 or on any interest -7- • payment date thereafter, and if less than all of the outstanding Bonds are to be redeemed, the Bonds to be called shall be redeemed from the maturity or maturities selected by the City and if less than all of a single maturity is so redeemed then by lot within a maturity in the manner hereinafter provided, the Bonds to be redeemed at par plus accrued interest to the date fixed for redemption. The Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof. In the event of the redemption of less than all the Bonds of like maturity the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof and the Bond 410 Registrar shall assign to each Bond of such maturity a distinctive number for each $5,000 principal amount of such Bond and shall select by lot from the numbers so assigned as many numbers as, allocating $5,000 to each number , shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. The City shall, at least forty- five (45) days prior to the redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar ) , notify the Bond Registrar of such redemption date and of the principal amount of Bonds to be redeemed. For purposes of any redemption of less than all of the outstanding Bonds of a single maturity, the -8- particular Bonds or portions of Bonds to be redeemed shall be selected not more than sixty ( 60) days prior to the redemption date by the Bond Registrar . The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed. Unless waived by any holder of Bonds to be redeemed, notice of the call for any such redemption shall be given by the Bond Registrar on behalf of the City by mailing the redemption notice by registered or certified mail at least thirty ( 30) days rand not more than sixty (60) days prior to the date fixed for redemption to the registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar . All notices of redemption shall state: (1) the redemption date, ( 2) the redemption price, (3) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemp- tion, the respective principal amounts) of the Bonds to be redeemed, (4) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and -9- (5) the place where such bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal corporate trust office of the Bond Registrar. Prior to any redemption date, the City shall deposit . with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds 410 or portions of Bonds shall cease to bear interest . Upon sur- render of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bonds, there shall be prepared for the registered holder a new Bond or Bonds of the same rate of interest and maturity in the amount of the unpaid principal. If any Bond or portion of Bond called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear interest from the redemption date at the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been redeemed shall be -10- cancelled and destroyed by the Bond Registrar and shall not be reissued. Section 5. Form of Bond. The Bonds shall be prepared in compliance with the National Standard Specifications for Fully Registered Municipal Securities prepared by the American National Standards Institute and shall be in substantially the following form; provided, 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 for Additional Provisions" , shall be omitted and paragraphs [ 6 ] through [12] rikshall be inserted immediately after paragraph [1 ] : -11- Al, (Form of Bond - Front Side) REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION CORPORATE PURPOSE BOND, SERIES 1986 :See Reverse Side: :for Additional :Provisions • Interest Maturity Dated Rate: % Date: January 1, Date: June 1, 1986 CUSIP Registered Owner : Principal Amount: [1] 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 the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above (unless redeemed earlier as hereinafter provided) , the Principal Amount identified above and to pay interest (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 -12- recent interest payment date to which interest has been paid at the Interest Rate per annum set forth above on July 1, 1987 and semi-annually thereafter on each January 1 and July 1 until said Principal Amount is paid. The principal of this Bond is payable in lawful money of the United States of America at the corporate trust office of The First Commercial Bank, Chicago, 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 maintained by the Bond Registrar at the close of business on the 15th day of the month next preceding each interest payment date rk and shall be paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of the United States of America, mailed 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. For the prompt payment of this Bond, both principal and interest at maturity, the full faith, credit and resources of the City are hereby irrevocably pledged. ( 2] Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof and such further provisions 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 Constitution and laws of -13- 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. [ 4 ] This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Bond Registrar . [ 5] IN WITNESS WHEREOF, the City of Elgin, Kane and Cook Counties, Illinois, by its City Council, has caused the City seal to be affixed hereto or imprinted hereon and this Bond to be -14- signed by the duly authorized facsimile signatures of the Mayor and Clerk of the City, all as of the Dated Date identified above. (Facsimile Signature) Mayor (Facsimile Signature) City Clerk (SEAL) elk -15- Date of Authentication: , CERTIFICATE Bond Registrar and Paying Agent: OF The First Commercial Bank, AUTHENTICATION Chicago, Illinois This Bond is one of the Bonds described in the Bond Ordinance and is one of the General Obligation Corporate Purpose Bonds, Series 1986 of the City of Elgin, Kane and Cook Counties, Illinois. The First Commercial Bank, Chicago, Illinois as Bond Registrar By (Manual Signature) '" Authorized Officer [Form of Bond - Reverse Side) City of Elgin Kane and Cook Counties, Illinois General Obligation Corporate Purpose Bond, Series 1986 [6] This Bond is one of a series of Bonds issued by the City for the purpose of paying the cost of acquiring and con- structing public improvements in and for 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 -16- the series of which it forms a part, duly published and now in full force and effect (the "Bond Ordinance" ) . [7 ] This Bond is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the corporate trust office of the Bond Registrar in Chicago, Illinois, but only in the manner, subject to the limitations and • upon payment of the charges provided in the Bond 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 aggregate principal amount will be issued to the transferee in exchange therefor. [8] Bonds maturing on or after January 1, 1997 are redeemable prior to maturity at the option of the City, in whole or in part on July 1, 1996 or on any interest payment date thereafter , and if less than all of the outstanding Bonds are to be redeemed, the Bonds to be called shall be redeemed from the maturity or maturities selected by the City and if less than all of a single maturity is so redeemed, then by lot within a maturity in the manner hereinafter provided, the Bonds to be redeemed at par plus accrued interest to the date fixed for redemption. [ 9] Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof. In the event of the redemption of less than all of the Bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof and the Bond -17- Registrar shall assign to each Bond of such maturity a distinctive number for each $5,000 principal amount of such Bond and shall select by lot from the numbers so assigned as many numbers as, allocating $5,000 to each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. [10] Notice of any such redemption shall be sent by registered or certified mail not less than thirty ( 30) days nor more than sixty (60) days prior to the date fixed for redemption to the Registered Owner of each Bond to be redeemed at the address shown on the registration books of the City maintained by the Bond Registrar or at such other address as is furnished in writing by such Registered Owner to the Bond Registrar . When so called for redemption, this Bond will cease to bear interest on the specified redemption date, provided funds for redemption are on deposit at the place of payment at that time. [11] The Bonds are issued in fully registered form in the denomination of $5, 000 each or authorized integral multiples thereof. This Bond may be exchanged at the corporate trust office of the Bond Registrar in Chicago, Illinois for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations, upon the terms set forth in the Bond Ordinance. -18- (12) The City and the Bond Registrar may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof 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 tt appoint attorney to transfer the said Bond on the books kept for regis- tration 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 appears upon the face of the within Bond in every particular , without alteration or enlargement or any change whatever. Section 6. Tax Levy. 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 eft annual tax sufficient for that purpose, and that there be and there is hereby levied on all the taxable property in the City, -19- in addition to all other taxes, the following direct annual tax, to-wit: For the Year A Tax Sufficient to Produce the Sum of 1986 $247,653 .13 for interest up to and including January 1, 1988 1987 $156, 412. 50 for interest 1988 $156,412. 50 for interest 1989 $156, 412. 50 for interest 1990 $231,412. 50 for interest and principal 1991 $224,850 .00 for interest and principal 1992 $243, 250.00 for interest and principal 1993 $284,450 .00 for interest and principal 1994 $374,250.00 for interest and principal 1995 $357 ,250.00 for interest and principal 1996 $340,000.00 for interest and principal 1997 $322,500 .00 for interest and principal 1998 $304,750. 00 for interest and principal 1999 $286,750 .00 for interest and principal 2000 $268,500 .00 for interest and principal All 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 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 AI and collected as provided herein. -20- Section 7 . Filing of Ordinance. That forthwith as soon as this ordinance becomes effective, a copy hereof certified by the Clerk of the 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 1986 to 2000, 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 collection 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 8. Sale of Bonds. That forthwith after this ordinance has become effective as provided by law, the Bonds shall be executed and delivered to the Treasurer of the City and be by him delivered to The Northern Trust Company, Chicago, Illinois, 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 $303.00 . 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 rft best interests of the City, and that no person holding an office -21- 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. Section 9 . Project Fund; Bond Fund. From the amounts received upon the sale of the Bonds, principal proceeds in the amount of $2,150,000 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, in- cluding 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, 1987 and, to that end, is hereby ordered deposited into the "General Obligation Corporate Purpose Bonds, Series 1986 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 principal or interest on the Bonds on the interest payment 47) date next after such interest is received. -22- Section 10. Non-Arbitrage; Tax Bill . 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 of $1,000,000, such sum being not less than 2-1/2% of that portion of the Project to be financed with proceeds of the Bonds. (b) All of the money derived from the sale of the Bonds and deposited in the Project Fund will be expended on or before August 1, 1988, 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 $ 303.00 premium from the sale of the Bonds. Accrued interest and premium are to be deposited in the Bond Fund to pay interest coming due on the Bonds up to and including July 1, 1987 . (g) Except for the Bond Fund, the City has not tow 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 -23- All 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 then current 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 one year period beginning on the date of receipt . (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 the Bonds and the amount to be spent on or before such dates is based upon consultation with The Illinois Department of Transportation and the engineers named in the preambles hereof and who are 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 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 47) that so long as any of the Bonds remain outstanding, moneys on -24- 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 (the "Code" ) , and any lawful regulations promulgated thereunder , including Treas. Reg. §§1 .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. The City acknowledges that on December 17 , 1985, the United States House of Representatives adopted H.R. 3838 ( in the form so adopted, the "Tax Bill" ) . The City agrees to comply with all provisions of the Internal Revenue Code of 1954, as presently enacted, and with all provisions of the Tax Bill which, in each case, if not complied with by the City, would cause the interest on the Bonds to become subject to federal income taxation. To -25- the extent it may lawfully do so, the City further agrees to comply with any such provisions contained in any other legislation subsequently adopted by either the United States House of Representatives or the United States Senate or subsequently enacted into law. In furtherance of the foregoing provisions, but without limiting their generality, the City agrees: (a) through its officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (b) to comply with all representations, covenants and assurances contained in a Section 103 Certificate or Agreement to be prepared by counsel approving the Bonds; (c) to consult with such counsel and to comply with such advice as may be given; (d) to pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Bonds; (e) to file such forms, statements and supporting documents as may be required and in a timely manner ; and ( f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the City in such compliance. Section 11. Registered Form. The City recognizes that Section 103 ( j ) of the Code requires the Bonds to be issued and to remain in fully registered form in order that interest thereon is exempt from federal income taxation under laws in force at the 4!) time the Bonds are delivered. In this connection, the City -26- agrees that it will not take any action to permit the Bonds to be issued in, or converted into, bearer or coupon form. Section 12. List of 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 Bondholder and eliminate the name and address of the transferor Bondholder . Section 13 . Duties of Bond Registrar . If requested by the Bond Registrar, the Mayor and Clerk of the City are authorized to execute the Bond Registrar ' s standard form of agreement between the City and the Bond Registrar with respect to the obligations and duties of the Bond Registrar hereunder which may include the following: (a) to act as bond registrar , authenticating agent, paying agent and transfer agent as provided herein; (b) to maintain a list of Bondholders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential; (c) to give notice of redemption of Bonds as provided herein; (d) to cancel and/or destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer; (e) to furnish the City at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (f) to furnish the City at least annually an fek audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds. -27- Section 14. Publication. That a full, true and complete copy of this ordinance be published within ten days after passage in the Daily Courier-News being a newspaper published in and of general circulation within the City. Section 15 . Repeal ; Effective Date. 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: 470 s/ Richard L. Verbic Mayor , City of Elgin, Kane and Cook Counties, Illinois Adopted May 19 , 1q86 , 1986 City a Clerk, City of Elgin, Kane and Cook Counties, Illinois 4!) -28- City Council Member Waters moved and Member Van De Voorde seconded the motion that said ordinance as presented and read by the City Clerk be adopted. After a full and complete discussion thereof, the Mayor directed that the roll be called for a vote upon the motion to adopt the ordinance as read. Upon the roll being called, the following voted AYE: Councilmen Andersen, Gilliam, Moylan, Shales, Van DeVoorde, Waters and Mayor Verbic NAY: None. Whereupon the Mayor declared the motion carried and the eft ordinance adopted, and henceforth did approve and sign the same in open meeting and did direct the City Clerk to record the same in full in the records of the City Council of the City of Elgin, Kane and Cook Counties, Illinois . Other business not pertinent to the adoption of said ordinance was duly transacted at said meeting. Upon motion duly made and seconded, the meeting was adjourned. s/ Marie Yearman City Clerk e STATE OF ILLINOIS ) SS COUNTY OF KANE ) I, Marie Yearman , do hereby certify that I am the duly qualified and acting City Clerk of the City of Elgin, Kane and Cook Counties, Illinois, and as such officer I am the keeper of the records and files of the City Council of the City. I do further certify that the foregoing constitutes a full, true and complete transcript of the minutes of the legally convened meeting of the City Council of the City held on the 12th day of May, 1986 , insofar as same relates to the adoption of an ordinance providing for the issuance of $2,150,000 General Obligation Corporate Purpose Bonds, Series 1986 of the City, a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the City Council on the adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given to all newspapers, radio or television stations and other news media requesting such notice; and that said meeting was called and held in strict accordance with the provisions of "AN ACT in relation to meetings, " approved July 11 , 1957 , as amended, and that said City Council has complied with all of the applicable provisions of said Act and its procedural rules in the adoption of said ordinance. IN WITNESS WHEREOF, I have hereunto affixed my official signature and the seal of said City of Elgin, Kane and Cook Counties, Illinois, this 12th day of May , 1986. V Marie Yearman City Clerk, City of Elgin, Kane and Cook Counties, Illinois (SEAL) 47) STATE OF ILLINOIS ) SS COUNTY OF KANE ) I ► , County Clerk of Kane County, Illinois, do hereby certify that on the day of 1986, there was filed in my office a properly certified copy of an ordinance entitled "AN ORDINANCE providing for borrowing money and issuing bonds of the City of Elgin, Kane and Cook Counties, Illinois, to the amount of $2,150,000 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 interest of the bonds, " and that the same has been deposited in the official files and records of my office. GIVEN under my hand and the seal of said Kane County, Illinois, at , Illinois, this day of 1986. County Clerk of Kane County, Illinois (SEAL) 41/ STATE OF ILLINOIS ) SS COUNTY OF COOK ) I , , County Clerk of Cook County, Illinois, do hereby certify that on the day of 1986, there was filed in my office a properly certified copy of an ordinance entitled "AN ORDINANCE providing for borrowing money and issuing bonds of the City of Elgin, Kane and Cook Counties, Illinois, to the amount of $2 ,150,000 for paying the cost of constructing public improvements in the City, and providing for the levy and collection of a direct annual tax for the payment of the principal and interest of the bonds, " and that the same has 47) been deposited in the official files and records of my office. GIVEN under my hand and the seal of said Cook County, Illinois, at , Illinois, this day of 1986 . County Clerk of Cook County, Illinois (SEAL) 4!) August 9, 1991 MEMORANDUM TO: Ralph Ridley, Engineering Supervisor FROM: Erwin W. Jentsch, Corporation Counsel SUBJECT: Ordinance No. T2-86 - Seigle Reimbursement Your memorandum of July 30, 1991 to Judy Prigge indicates that Exhibit C to the ordinance is incorrect and forwards a corrected exhibit. As Exhibit C i$ a part of an ordinance which has been recorded with the Recorder of Deeds, it will be necessary to amend the ordinance and record the amendment. I suggest that you place the matter on the next Committee of the Whole agenda for consideration by the City Council . EWJ nr cc: James Bolerjack ,Loni Mecum Judy Prigge