T1-89 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
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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
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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
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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
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by the Bond Registrar, duly endorsed by, or accompanied by a
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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
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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
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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
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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
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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
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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
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(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.
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(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.
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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
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Principal or interest coming due at any time when there
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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
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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;
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(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)
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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:
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(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
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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
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