G22-75 .
e• 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
WHEREAS, Section 6(a) of Article VII of the 1970 Constitution of
Illinois provides that "any municipality which has a population of more
than 25,000 is a Home Rule Unit", and the City of Elgin, Kane and Cook
Counties, Illinois, with a population in excess of 25,000 is therefore
a Home Rule Unit and may, under the power granted by Section 6(a) of
Article VII exercise any power and perform any function pertaining to its
government and affairs including, but not limited to, the power to tax
and to incur debt; and
WHEREAS, Sections 6(d) and 6(k) of Article VII of the 1970 Constitu-
tion of Illinois grant constitutional authority for the City of Elgin to
incur debt payable from ad valorem tax receipts maturing within 40 years
from the time it is incurred and without prior referendum approval; and
WHEREAS, the establishment of basic procedures for incurring municipal
debt and issuing bonds payable from ad valorem property tax receipts is
both necessary and desirable to provide clarity in law and direction for
subsequent action:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
Section 1. That the City of Elgin, Kane and Cook Counties, Illinois,
acting by its City Council, may, from time to time, borrow money for
proper public purposes and in evidence of such borrowing, issue its full
faith and credit bonds (general obligation) payable from ad valorem taxes
to be levied without limitation as to rate or amount, against all taxable
property situated within the City. Such bonds may be issued without the
submission of the question of their issuance to the electors of the City
for their approval and the procedures for the issuance of such bonds shall
be substantially as herein provided.
Section 2. That the City shall adopt an ordinance (hereinafter
designated the "Bond Ordinance") describing the public purpose or purposes
to be served by such borrowing and in such Bond Ordinance shall make a
finding and determination that such borrowing of money is necessary for the
welfare of the government and affairs of the City, is a proper public purpose
or purposes and is in the public interest, which finding and determination
shall be deemed conclusive.
Section 3. That the Bond Ordinance shall indicate the amount of money
necessary to be borrowed, the amount of bonds to be issued in evidence
thereof, shall fix the details of such bonds, including their date, number,
denomination and maturity, which shall not exceed forty (40) years from the
date of said bonds, and their rate of interest which shall not exceed 8% per
annum. The bonds shall be sold in such manner as may be determined by the
City Council. If the bonds are authorized to bear interest at the maximum
rate, they shall be sold at a price of par and accrued interest to delivery.
If the bonds are authorized to bear interest at a rate less than the maximum
interest rate, they may be sold at a price of less than par, provided the
price shall be such that the interest cost to the City of the money
received by it from proceeds of the sale of said bonds shall not exceed
8% per annum, computed to the average maturity of all bonds sold as a single
issue, according to standard tables of bond value.
A contract for the sale of such bonds may be entered into prior to the
adoption of the Bond Ordinance or the Bond Ordinance may provide for the
subsequent sale of the bonds therein authorized. In the event of such sub-
sequent sale and if the bonds bear interest at a rate or rates less than that
authorized in such Bond Ordinance, prior to the delivery of such bonds the
taxes levied in such Bond Ordinance shall be abated by that amount representing
the savings resulting from the sale of such bonds at a lower rate of interest
than authorized in such Bond Ordinance.
Section 4. That the Bond Ordinance shall authorize the execution of
the bonds therein authorized on behalf of the City by the signatures of the
Mayor and the City Clerk of said City, shall require the seal of the City
to be affixed to such bonds, shall determine whether such bonds shall be
registered in the name of the owner as to principal only or whether the same
shall be fully registered as to both principal and interest, and shall set
forth the form of bond.
Section 5. That the Bond Ordinance shall make provision for the payment
of such bonds, both principal thereof and interest thereon until maturity, by
the levy of a direct annual tax upon all the taxable property within the City
sufficient for such purpose. A copy of such Bond Ordinance, as adopted,
certified to by the City Clerk, shall be filed in the offices of the County
Clerk of the county or counties within which any part of the City may be
situated. Such Bond Ordinance, as so filed, shall constitute the authority
for the County Clerk or County Clerks in and for each of the years for which
taxes are levied in said Bond Ordinance, to extend such taxes for collection
against all the taxable property situated within the City. The taxes so
levied for the payment of principal of and interest on the Bonds shall be
extended annually by the several County Clerks without limitation as to rate
or amount and such taxes shall be in addition to and in excess of all other
taxes levied or authorized to be levied by the City. Except as provided
herein, such taxes so levied shall not be subject to repeal or abatement in
any manner whatsoever until such time as all the bonds authorized under the
terms of said Bond Ordinance and issued shall have been paid in full, both
principal thereof and interest thereon up to and including the date of
maturity, provided, however, that if the City has funds available, it may
appropriate same and order their deposit in trust with the paying agent for
purpose of the payment of any of the maturities of bonds or interest thereon,
in which event the taxes so levied to pay such principal or interest may be
abated by the amount so deposited, such abatement to be by ordinance of the
City duly adopted and placed on file with the respective County Clerks.
Section 6. That the provisions of any Bond Ordinance shall constitute
an appropriation of the amounts required as therein referred to and described
and upon the delivery of the bonds therein authorized, the proceeds thereof
�•► shall be used solely and only for the purposes for which the bonds were
authorized.
k .
Upon the adoption of any Bond Ordinance by the City Council and its
approval by the Mayor, the same shall be published in a newspaper published
and of general circulation in the City, if there be one, and if there is no
such newspaper, then a newspaper published and of general circulation in
the county in which the City or the major portion thereof is situated and
said ordinances shall become effective ten (10) days after the date of such
publication.
Section 7. That pursuant to the authority granted by Section 6 of
Article VII of the Constitution of Illinois 1970, the procedures hereby
established for the issuance of full faith and credit bonds (general obliga-
tion) as herein provided for, shall be controlling and shall be complied with
by the City in the borrowing of money through the issuance of general obliga-
tion bonds of the City notwithstanding anything to the contrary contained in
the provisions of the "Illinois Municipal Code" and all acts amendatory thereof
and supplementary thereto and any other law or laws of the State of Illinois.
Section 8. That the provisions of this ordinance are severable, and if
any of its provisions or any sentence, clause or paragraph shall be held
unconstitutional by any court of competent jurisdiction, the decision of such
court shall not affect or impair any of the remaining provisions.
Section 9. That all ordinances in conflict herewith shall be and the
same are hereby repealed.
Section 10. That within thirty (30) days after adoption, this ordinance
shall be published in full once in the Elgin Daily Courier-News, a newspaper
published within the City, and this ordinance shall not take effect until
ten (10) days after the date of such publication.
s/ W. E. Rauschenberger
W. E. Rauschenberger, Mayor
Presented: April 23, 1975
Passed: April 23, 1975
Vote: Yeas 5 Nays 2
Recorded: April 23, 1975
Published: April 23, 1975
Attest:
s/ Diane Schwartz
Diane Schwartz, Acting City Clerk