G64-80 Ordinance No. G64-80
AN ORDINANCE
AMENDING ORDINANCE G22-75 OF THE CITY OF ELGIN, KANE AND COOK COUNTIES,
ILLINOIS, WHICH ORDINANCE ESTABLISHED PROCEDURES TO BE FOLLOWED
BY THE CITY IN ISSUING NON-REFERENDUM GENERAL OBLIGATION BONDS
WHEREAS, the City Council of the City of Elgin, Kane and Cook Counties,
Illinois, (the "City"), has heretofore adopted Ordinance No. G22-75 on
April 23, 1975, and has heretofore adopted Ordinance No, G14-80 on January 28,
1980, which ordinance amends Ordinance G22-75 (Ordinance No. G22-75 as amended
by Ordinance No. G14-80 being hereinafter referred to as the "Enabling Ordi-
nance"); and
WHEREAS, because of inflationary factors and the generally prevailing
conditions in the market for the City's bonds, it is necessary to amend the
Enabling Ordinance to increase the authorized interest rate at which the City
may issue its bonds; and
WHEREAS, the City Council of the City has therefore determined that it is
necessary and in the best interests of the City that the Enabling Ordinance
be amended to authorize the issuance of the City's bonds at a rate of not to
exceed ten per cent (10%) per annum, all as hereinafter provided.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
KANE AND COOK COUNTIES, ILLINOIS:
Section 1. That Section 3 of the Enabling Ordinance be and is hereby
amended to read as follows:
"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 10% 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 10% 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 subsequent 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 2. That this ordinance shall take effect immediately upon its
adoption and approval by the Mayor of the City.
s/ Richard L. Verbic
Richard L. Verbic, Mayor
Presented: October 8, 1980
Passed: October 8 , 1980
Vote: Yeas 6 Nays 0
Recorded:
Published:
Attest:
s/ Marie Yearman
Marie Yearman, City Clerk
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