HomeMy WebLinkAboutS4-03 ORDINANCE NO. S4-03
AN ORDINANCE authorizing the execution and delivery of an
Intergovernmental Cooperation Agreement and certain documents
in connection therewith; and related matters.
WHEREAS, pursuant to Section 6(a) of Article VII of the 1970 Constitution of the State of
Illinois, the City of Elgin, Cook and Kane Counties, Illinois, is a municipality and a home rule
unit of government duly organized and validly existing under the Constitution and the laws of the
State of Illinois (the "Municipality"); and
WHEREAS, pursuant to the Constitution and the laws of the State of Illinois, and
particularly Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois, the
Municipality is authorized to issue its revenue bonds in order to aid in providing an adequate
supply of safe, decent and sanitary residential housing for low and moderate income persons and
families within the Municipality, which such persons and families can afford, which constitutes a
valid public purpose for the issuance of revenue bonds by the Municipality; and
WHEREAS, the Municipality has now determined that it is necessary, desirable and in the
public interest to issue revenue bonds to provide an adequate supply of safe, decent and sanitary
residential housing for low and moderate income persons and families within the Municipality,
which such persons and families can afford; and
WHEREAS, pursuant to Section 10 of Article VII of the 1970 Constitution of the State of
Illinois and the Intergovernmental Cooperation Act (5 Illinois Compiled Statutes 2000, 220/1 et
seq., as supplemented and amended), public agencies may exercise and enjoy with any other
public agency in the State of Illinois any power, privilege or authority which may be exercised by
such public agency individually, and, accordingly, it is now determined that it is necessary,
desirable and in the public interest for the Municipality to enter into an Intergovernmental
Cooperation Agreement (the "Cooperation Agreement") dated as of March 1, 2003, by and
among the Municipality and certain other units of local government named therein (the "Units"),
to provide for the joint issuance of such revenue bonds to aid in providing an adequate supply of
residential housing in such Units (the "Program"); and
WHEREAS, to provide for the Program, the City of Aurora, Kane, DuPage, Will and
Kendall Counties, Illinois, and the City of Springfield, Sangamon County, Illinois, jointly (the
"Issuers"), propose to issue, sell and deliver their Collateralized Single Family Mortgage
Revenue Bonds, Series 2003 in an aggregate principal amount not to exceed $300,000,000 (the
"Bonds") in one or more series to obtain funds to finance the acquisition of mortgage-backed
securities (the "GNMA Securities") of the Government National Mortgage Association
("GNMA"), evidencing a guarantee by GNMA of timely payment, the acquisition of mortgage-
backed securities (the "FNMA Securities") of the Federal National Mortgage Association
("FNMA"), evidencing a guarantee by FNMA of timely payment, and the acquisition of
mortgage-backed securities (the "FHLMC Securities") of the Federal Home Loan Mortgage
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Corporation ("FHLMC"), evidencing a guarantee by FHLMC of timely payment, of monthly
principal of and interest on certain qualified mortgage loans under the Program (the "Mortgage
Loans"), on behalf of the Municipality and the other Units all under and in accordance with the
Constitution and the laws of the State of Illinois; and
WHEREAS, a notice of combined public hearing with respect to the plan of finance of the
costs of the Program through the issuance of the Bonds has been published in the Courier News,
a newspaper of general circulation in the Municipality, pursuant to Section 147(f) of the Internal
Revenue Code of 1986, as amended (the "Code"), on January 22, 2003, and appropriately
designated hearing officers of the City of Aurora, Kane, DuPage, Will and Kendall Counties,
Illinois, the City of Champaign, Champaign County, Illinois, the City of East Moline, Rock
Island County, Illinois, and The County of St. Clair, Illinois, have conducted said combined
public hearing on February 7, 2003; and
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WHEREAS, a form of the Cooperation Agreement has been presented to and is before this
meeting;
NOW, THEREFORE, Be It Ordained by the City Council of the City of Elgin, Cook and
Kane Counties, Illinois, as follows:
Section 1. That it is the finding and declaration of the City Council of the Municipality
that the issuance of the Bonds by the Issuers is advantageous to the Municipality, as set forth in
the preamble to this authorizing ordinance, and therefore serves a valid public purpose; that this
authorizing ordinance is adopted pursuant to the Constitution and the laws of the State of Illinois,
and more particularly Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois,
Section 10 of Article VII of the 1970 Constitution of the State of Illinois and the
Intergovernmental Cooperation Act; and that, by the adoption of this authorizing ordinance, the
City Council of the Municipality hereby approves the issuance of the Bonds for the purposes as
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provided in the preamble hereto, the text hereof and the notice of public hearing referred to in the
preamble hereto, which notice is hereby incorporated herein by reference, and the conduct of the
combined public hearing referred to in the preamble hereto, which public approval shall satisfy
the provisions of Section 147(f) of the Code.
Section 2. That the form, terms and provisions of the proposed Cooperation
Agreement be, and they are hereby, in all respects approved; that the Mayor of the Municipality
be, and is hereby, authorized, empowered and directed to execute, and the City Clerk of the
Municipality be, and is hereby, authorized, empowered and directed to attest and to affix the
official seal of the Municipality to, the Cooperation Agreement in the name and on behalf of the
Municipality, and thereupon to cause the Cooperation Agreement to be delivered to the other
Units; that the Cooperation Agreement is to be in substantially the form presented to and before
this meeting and hereby approved or with such changes therein as shall be approved by the
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officer of the Municipality executing the Cooperation Agreement, his or her execution thereof to
constitute conclusive evidence of his or her approval of any and all changes or revisions therein
from the form of Cooperation Agreement before this meeting; that from and after the execution
and delivery of the Cooperation Agreement, the officers, officials, agents and employees of the
Municipality are hereby authorized, empowered and directed to do all such acts and things and to
execute all such documents as may be necessary to carry out and comply with the provisions of
the Cooperation Agreement as executed; and that the Cooperation Agreement shall constitute and
is hereby made a part of this authorizing ordinance, and a copy of the Cooperation Agreement
shall be placed in the official records of the Municipality, and shall be available for public
inspection at the principal office of the Municipality.
Section 3. That the Mayor, the City Clerk and the proper officers, officials, agents and
employees of the Municipality are hereby authorized, empowered and directed to do all such acts
and things and to execute all such documents and certificates as may be necessary to carry out
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and comply with the provisions of the Cooperation Agreement and to further the purposes and
intent of this authorizing ordinance, including the preamble to this authorizing ordinance.
Section 4. That all acts of the officers, officials, agents and employees of the
Municipality heretofore or hereafter taken, which are in conformity with the purposes and intent
of this authorizing ordinance and in furtherance of the issuance and sale of the Bonds, be, and the
same hereby are, in all respects, ratified, confirmed and approved, including without limitation
the publication of the notice of public hearing.
Section 5. That the Municipality hereby transfers a portion its 2003 unified volume cap
in the amount of$1,000,000 to the Issuers, together with all unified Volume Cap to be received
by the Municipality from the Office of the Governor in 2003 for the Bonds, if any, which is
hereby allocated by the Municipality to the issuance of the Bonds; and that the Municipality, by
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adoption of this authorizing ordinance, hereby represents and certifies that such volume cap has
not been allocated to any other bond issue or transferred to any other party.
Section 6. That the amount of its 2003 unified volume cap allocated and transferred by
the Municipality as set forth herein shall be utilized solely for individuals participating in the
Program who are purchasing residential housing within the corporate limits of the City of Elgin,
Illinois, unless the City Council of the Municipality shall otherwise determine. Such restriction
shall be inserted in the Origination and Servicing Agreement for the Program.
Section 7. That after the Cooperation Agreement is executed by the Municipality, this
authorizing ordinance shall be and remain irrepealable until the Bonds and the interest thereon
shall have been fully paid, cancelled and discharged.
Section 8. That the provisions of this authorizing ordinance are hereby declared to be
separable, and if any section, phrase or provision of this authorizing ordinance shall for any
reason be declared to be invalid, such declaration shall not affect the validity of the remainder of
the sections, phrases and provisions of this authorizing ordinance.
Section 9. That all ordinances, resolutions and orders, or parts thereof, in conflict with
the provisions of this authorizing ordinance are, to the extent of such conflict, hereby superseded;
and that this authorizing ordinance shall be in full force and effect upon its adoption and approval
as provided by law.
Presented, passed, approved and recorded by the City Council of the City of Elgin, Cook
and Kane Counties, Illinois, this 26th day of February, 2003.
Approved:
Mayor
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[SEAL]
Attest:
City Clerk
Ayes: Councilmembers Figueroa, Gilliam, Walters,
Wasilowsk. Yearman and Mayor Schock
Nays: None
Absent or Not Voting: None
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