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HomeMy WebLinkAboutT1-89 ORDINANCE NO. T1-89 AN ORDINANCE providing for the issue of $3 ,240 ,000 General Obligation Bonds, Series 1989 of the City of Elgin, Kane and Cook Counties, Illinois , and for the levy of a direct annual tax sufficient to pay the principal and interest on said bonds. WHEREAS , the City of Elgin, Kane and Cook Counties, Illinois, pursuant to the provisions of the 1970 Constitution of the State of Illinois, and particularly Article VII , Section 6 (a) thereof, 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 of Elgin 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, it is deemed to be necessary, essential and for the best interests of the inhabitants of the City of Elgin that the City construct two new fire stations and make various street improvements, said construction and improvements and the amounts estimated to be needed to Pay said City' s costs therefor being $3 , 240 ,000 ; and WHEREAS, there are insufficient funds on hand and available to pay the costs estimated for the purposes as hereinabove stated; and WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois , is authorized by the provisions of the Constitution of the State of Illinois, above referred to, and pursuant to the procedures set forth in Ordinance No. G22-75 adopted on April 23 , 1975 , to incur indebtedness payable from ad valorem tax receipts maturing within forty (40) years from the time of incurring the same without prior referendum approval; and WHEREAS , it is necessary that the said construction and improvements be made in order to provide governmental services to the inhabitants of said City and it is necessary for the welfare of the government and affairs of the City, is a proper public purpose and is in the public interest of the City that the sum of $3 ,240 , 000 be borrowed at—this time, and in evidence of such indebtedness full faith and credit bonds in the aggregate principal amount of $3 , 240, 000 be issued, and that such indebtedness be incurred without submitting the question of incurring such indebtedness to the electors of said 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 . Authorization. It is hereby found and determined that the City Council of said City has been authorized by the provisions of the Constitution of the State of Illinois, above referred to, and pursuant to the procedures set forth in Ordinance No. G22-75 adopted on April 23 , 1975 , to issue bonds of said City in the aggregate amount of $3 ,240 ,000 for the purpose of paying part of the cost of constructing two new fire stations and making various street improvements in said City to serve the -2- inhabitants of the City of Elgin and such borrowing of money is rnecessary for the welfare of the government and affairs of the City, is a proper public purpose and is in the public interest. Section 2 . Bond Details . There be borrowed on the credit of and for and on behalf of the City of Elgin, Kane and Cook Counties , Illinois , the sum of $3 ,240 , 000 for the purposes aforesaid; that bonds of the City (the "Bonds" ) shall be issued in said amount and shall be designated "General Obligation Bonds, Series 1989 , " the Bonds initially shall be dated June 1 , 1989 , and shall also bear the date of authentication, shall be in fully registered form, shall be in denominations of $5 ,000 each and multiples thereof, shall be numbered 1 and upward, and the Bonds shall become due and payable serially on January 1 of each of the years , in the amounts and bearing interest per annum as follows: Year of Principal Rate of Maturity Amount Interest 1992 $ 190 , 000 6 . 40% 1993 200 , 000 6 . 40% 1994 200 ,000 6 .40% 1995 1 ,650 ,000 6.40% 1996 1 ,000 ,000 6.50% 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 days of January and July of each year, commencing on July 1 , 1990 . Interest on each Bond shall be paid by check or draft of the American National Bank and Trust Company of Chicago, Chicago, Illinois (the "Paying Agent") , payable in lawful money of the -3- United States of America, mailed to the person in whose name such Bond is registered at the close of business on the 15th day of the calendar month next preceding the interest payment date. The principal of the Bonds shall be payable in lawful money of the United States of America at the principal office of the Paying Agent. The bonds are not subject to redemption prior to maturity. The Bonds shall be signed by the manual or facsimile signatures of the Mayor and City Clerk of the City, and the seal of the City shall be affixed thereto or printed thereon, 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 American National Bank and Trust Company of Chicago, Chicago, Illinois (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 -4- 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. 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 office of the Bond Registrar, 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 surre=nder for transfer of any Bond at the office • by the Bond Registrar, duly endorsed by, or accompanied by a (0". 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. The date of the new fully registered Bond or Bonds shall be as of the interest payment date next preceding its or their issuance or if issued on an interest payment date shall be as of such payment date. 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 -5- 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 at the close of business on the fifteen (15th) day of the month next preceding any interest payment date on such Bond and ending on 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 oek 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 by any appropriate governmental agency other than the City in connection with any transfer or exchange of Bonds. Section 4 . Form of Bondi. 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 para- graph (2) and the legend, "See Reverse Side for Additional -6- Provisions" , shall be omitted and paragraphs (6) through (12) shall be inserted immediately after paragraph (1) : (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 BOND, SERIES 1989 • :See Reverse Side: • :for Additional . :Provisions Interest Maturity Dated Rate: % Date: January 1 , Date: June 1 , 1989 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, 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 recent interest payment date to which interest has been paid at the Interest Rate per annum set forth above on January 1 and -7- July 1 of each year commencing July 1 , 1990 , until said Principal Amount is paid. Principal of this Bond is payable in lawful money of the United States of America at the principal office of American National Bank and Trust Company of Chicago, Chicago, Illinois, as paying agent (the "Paying Agent") . 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 American National Bank and Trust Company of Chicago, Chicago, Illinois (the "Bond Registrar" ) , at the close of business on the 15th day of the calendar month next preceding each interest payment date and shall be paid by check or draft of the Paying Agent, payable 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, 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 condi- tions, acts and things required by law to exist or to be done precedent to and in the issuance of this Bond did exist, have happened, been done and performed in regular and due form and time as required by law; that the indebtedness of the City, including the issue of Bonds of which this is one, does not exceed any limitation imposed by law; and that provision has been -8- made for the collection of a direct annual tax sufficient to pay the interest hereon as it 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, said City of Elgin, Kane and Cook Counties, Illinois, by its City Council, has caused this Bond to be signed by the duly authorized facsimile or manual signatures of the Mayor and City Clerk of said City, and has caused the seal of the City to be affixed hereto or printed hereon, all as of the Dated Date identified above. (Signature) Mayor, City of Elgin, Kane and Cook Counties, Illinois (Signature) City Clerk, City of Elgin, Kane and Cook Counties, Illinois Date of Authentication: , CERTIFICATE Bond Registrar and Paying OF Agent: American National AUTHENTICATION Bank and Trust Company of Chicago, This Bond is one of the Chicago, Illinois Bonds described in the within mentioned ordinance and is one of the General Obligation Bonds, Series 1989 of the City of Elgin, Kane and Cook Counties, Illinois. American National Bank and Trust Company of Chicago, as Bond Registrar By Authorized Officer -9- (Form of Bond - Reverse Side) City of Elgin Kane and Cook Counties , Illinois General Obligation Bond, Series 1989 (6) This Bond is one of a series of Bonds issued by the City for the payment of part of the cost of constructing two new fire stations and making various street improvements in said City to serve the inhabitants of the City of Elgin and for the payment of expenses incident thereto, pursuant to and in all respects in full compliance with the provisions of Section 6 of Article VII of the Constitution of the'' State of Illinois, and in compliance with the provisions of Ordinance No. G22-75 adopted by the City Council ork of said City on April 23 , 1975 , establishing the procedures for issuing full faith and credit bonds , and an ordinance authorizing the issuance of this Bond, now in full force and effect. (7) The Bonds are not subject to redemption prior to maturity. (8) This Bond is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the 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 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 aggregate principal amount will be issued to the transferee in exchange therefor. -10- (9) The Bonds are issued in fully registered form in the denomination of $5,000 each or integral multiples thereof. This Bond may be exchanged at the office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity in the denomination of $5 , 000 and integral multiples thereof, upon the terms set forth in the authorizing ordinance. (10) The City, the Paying Agent 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, the Paying Agent nor the Bond Registrar shall be affebted by any notice to the contrary. (11) The City has designated the Bonds as "qualified tax-exempt obligations" pursuant to Section 265 (b) (3) of the Internal Revenue Code of 1986. (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 appoint attorney to transfer the said Bond/ on the books kept for registration thereof with full power of substitution in the premises . Dated: Signature guaranteed: rft. 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. -11- Section 5 . Sale of Bonds. The Bonds hereby authorized shall be executed as in this ordinance provided as soon after the passage hereof as may be , and thereupon be deposited with the Treasurer of the City, and be by said Treasurer delivered to The Northern Trust Bank and Associates, Chicago, Illinois, the purchaser thereof, upon receipt of the purchase price therefor in the amount of $3 , 213 ,730 , plus accrued interest from June 1 , 1989 to the date of delivery; it is hereby found and determined that no person holding any office of the City either by election or appointment, is in any manner interested, either directly or indirectly, in his own name or in the name of any other person, association, trust or corporation, in said purchase of the Bonds . Section 6 : Tax, Levy. In order to provide for the collection of a direct annual tax sufficient to pay the interest on the Bonds as it falls due, and also 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 for each of the years while the Bonds or any of them are outstanding, in amounts sufficient for that purpose, and that there be and there is hereby levied upon all of the taxable property in the City, the following direct annual tax, to-wit: For the Year A Tax Sufficient to Produce the Sum of: 1989 $ 329 ,903. 33 for interest up to and including January 1 , 1991 1990 $ 398 , 360. 00 for interest and principal 1991 $ 396 ,200 .00 for interest and principal 1992 $ 383,400.00 for interest and principal 1993 $1 ,820 ,600. 00 for interest and principal 1994 $1 ,065 ,000.00 for interest and principal r -12- Principal or interest coming due at any time when there eft. are not sufficient funds on hand from the foregoing tax levy to pay the same shall be paid from current funds on hand of the City, and the fund from which such payment was made shall be reimbursed out of the taxes hereby levied when the same shall be collected. 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 foregoing tax levy and the City and its officers will comply with all present and future applicable laws in order to assure that the foregoing taxes will be levied, extended and collected as provided herein and deposited in the fund established to pay the principal of and interest on the Bonds. Section 7 . Filing of Ordinance. Forthwith upon this ordinance becoming effective, the Clerk of the City is hereby directed to file a certified copy of this ordinance, which certificate shall recite that this ordinance has been passed by the City Council of said City and published, with the County Clerks , respectively, of Kane and Cook Counties , Illinois , and it shall be the duty of each of said County Clerks to annually in and for each of the years 1989 to 1994 , inclusive, ascertain the rate necessary to produce the tax herein levied, and extend the same for collection on the tax books against all of the taxable property within the City in connection with other taxes levied in each of said years, in order to raise the respective amounts -13- aforesaid and in each of said years such annual tax shall be computed, extended and collected in the same manner as now or hereafter provided by law for the computation, extension and collection of taxes for general corporate purposes of the City, and when collected, the taxes hereby levied shall be used only for the purpose of paying the principal of and interest on the Bonds. Section 8 . Non-Arbitrage. The principal proceeds from the sale of the Bonds shall be devoted to and used with due diligence for the payment of part of the cost of acquiring and constructing two new fire stations and making street improvements in said City. The City council represents and certifies that: (1) That the City has incurred, or within six (6) months after the delivery of the Bonds expects to incur, substantial binding obligations with respect to the Project, said binding obligations comprising contracts for the construction and improvements of the Project in the amount of not less than 2i% of that portion of the cost of the Project to be financed with the proceeds of the Bonds; (2) That the City expects that all of the money derived from the sale of the Bonds and all of the investment earnings on said money, will be expended on or before - June 1 , 1992 , for the purpose of paying the cost of the Project, said date being within three (3) years following the date of issue of the Bonds; (3) That the foregoing is based upon consultation with the engineers employed by the City to supervise the completion of the Project; (4) That work on the Project is expected to proceed with due diligence to completion; (5) That the Project has not been and is not expected to be sold or otherwise disposed of in whole or in part prior to the last maturity of the Bonds; (6) That all of the proceeds of sale of and investment earnings on the Bonds are needed for the purpose for which the Bonds are issued, including expenses incidental to such purpose and to the issuance of the Bonds; -14- (7) That accrued interest received upon the sale of the Bonds will be applied to the first interest due thereon and that the balance of the proceeds of sale of the Bonds will be applied to the costs of the Project and of issuing the Bonds; (8) That the City has not accumulated and does not expect to accumulate amounts of money in a fund to pay or to be held as security for the payment of principal and interest on the Bonds , other than (a) amounts expected to be spent within thirteen (13) months from the date of deposit thereof into such fund and (b) interest earned by such fund is to be spent within twelve (12) months from date of receipt; and (9) That 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 set out in this Section are reasonable. The City Council 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 rft 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 sources, will not be used in a manner which will cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 (a) of the Internal Revenue Code of 1986 , as amended (the "Code") , and any lawful regulations promulgated or proposed thereunder, including Treas. Reg. Sections 1 . 148-0T through 1 . 148-9T, 1 . 149 (d) -1T and 1 . 150-0T and 1 . 150-1T, as the same presently exist, or may from time to time hereafter be amended, supplemented or revised. The City Council reserves the right, however, to make any investment of such moneys permitted by Illinois law if, when and to the extent that said Section 148 (a) r -15- or regulations promulgated thereunder shall be repealed or relaxed frk 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 9 . Registered Form. The City recognizes that Section 149 (a) 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 time the Bonds are delivered. In this connection, the City agrees that it will not take any action to permit the Bonds to be issued in, or converted into, bearer or coupon form. Section 10 . 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 11 . 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: -16- (a) to act as bond registrar, authenticating agent, emk 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 audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds. Section 12 . Severability. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 13 . Designation. The City hereby designates the Bonds to be qualified tax exempt obligations pursuant to Section 265 (b) (3) (B) (ii) of the Code. Section 14 . Repeal. All ordinances , resolutions or parts thereof in conflict herewith be and the same are hereby repealed. Section 15 . Effective Date. Upon the adoption of this ordinance by the City Council and its approval by the Mayor, this ordinance shall be published in the Elgin Daily Courier-News , a newspaper published and of general circulation in the City, and -17- this ordinance shall become effective ten (10) days after the date /• of such publication. ( AYES: Councilmen Fox, Gilliam, Moylan, Popple, Shales , Walters and Mayor VanDeVoorde. NAYS: None ABSENT stone PASSED May 25 , 1989 APPROVED May 25 , 1989 s/ George VanDeVoorde ATTEST: Mayor s/ Marie Yearman City Clerk r -18-