S3-93 CITY OF ELGIN
ORDINANCE NO. S3-93
AN ORDINANCE
PROVIDING FOR THE ISSUANCE OF $8,280,000 GENERAL
OBLIGATION REFUNDING BONDS, SERIES 1993B, OF THE CITY OF
ELGIN, KANE AND COOK COUNTIES, ILLINOIS, AND PROVIDING
FOR THE LEVY AND COLLECTION OF A DIRECT ANNUAL TAX FOR THE
PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS
ADOPTED BY THE
CITY COUNCIL OF THE
CITY OF ELGIN
ON THIS 26TH DAY OF MAY, 1993
Published in pamphlet form by
authority of the City Council of
the City of Elgin, Kane and Cook
Counties, Illinois, on this
3rd day of June, 1993 .
STATE OF ILLINOIS )
ss .
COUNTY OF KANE )
CERTIFICATE
I, Dolonna Mecum, certify that I am the duly appointed
and acting municipal clerk of the City of Elgin, Cook and Kane
Counties, Illinois .
I further certify that on May 26, 1993, the Corporate
Authorities of such municipality passed and approved Ordinance
No. S3-93, entitled An Ordinance providing for the issuance of
$8,280,000 General Obligation Refunding Bonds, Series 1993B, of
the City of Elgin, Kane and Cook Counties, Illinois, and
providing for the levy and collection of a direct annual tax for
the payment of the principal of and interest on said bonds,
which provided by its terms that it should be published in
pamphlet form.
The pamphlet form of Ordinance No. S3-93, including
the Ordinance and a cover sheet thereof, was prepared, and a
copy of such Ordinance was posted in the municipal building,
commencing on June 3, 1993, and continuing for at least ten
days thereafter. Copies of such Ordinance were also available
for public inspection upon request in the office of the
municipal clerk.
DATED at Elgin, Illinois, on June 3, 1993 .
Municipal Clerk
(SEAL)
ORDINANCE NUMBER S3-93
AN ORDINANCE providing for the issuance of $8,280,000 General
Obligation Refunding Bonds, Series 1993B, of the City of Elgin,
Kane and Cook Counties, Illinois, and providing for the levy and
collection of a direct annual tax for the payment of the principal of
and interest on said bonds.
WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois (the "City") has a
population in excess of 25,000 as determined by the last official census, and pursuant to the
provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the City is a
home rule unit and 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 said Section 6, the City has the power to
incur debt payable from ad valorem property tax receipts or from any other lawful source
and maturing within forty (40) years from the time it is incurred without prior referendum
approval; and
WHEREAS, on the 23rd day of April, 1975, the City Council of the City did adopt an
ordinance determining the procedures to be followed in the borrowing of money for public
purposes of the City and in evidence of such borrowing the issuing of full faith and credit
bonds of the City without referendum approval, such ordinance being entitled:
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
which ordinance was amended by Ordinance No. G14-80 adopted on January 28, 1980, by
Ordinance No. 64-80 adopted on October 8, 1980, by Ordinance No. G39-82 adopted on
July 28, 1982 and by Ordinance No. G31-92 adopted on June 17, 1992 (Ordinance No.
G22-75 as so amended being referred to hereinafter as the "Enabling Ordinance"); and
WHEREAS, the City has heretofore issued its $7,800,000 Water Bonds, Series 1980
maturing on January 1 of the years 1996 to 2000, inclusive, which bonds are presently
outstanding and unpaid ( the "Outstanding Bonds") and which bonds are callable on July 1,
1993 at the price set forth in the ordinance authorizing their issuance; and
WHEREAS, the City Council has heretofore determined and does hereby determine
that it is necessary and advisable for the public health, safety, welfare and convenience of the
residents of the City that the City undertake to refund the Outstanding Bonds (which
refunding, together with all related expenses as hereinafter more specifically enumerated,
may be referred to as the "Refunding"); and
WHEREAS, the estimated cost to the City of the Refunding is the sum of $8,280,000;
and
WHEREAS, there are insufficient funds of the City on hand and lawfully available to
pay the costs of the Refunding; and
WHEREAS, the City Council does hereby determine that it is advisable and in the best
interests of the City to borrow $8,280,000 at this time and, in evidence of such borrowing,
issue its full faith and credit bonds in the principal amount of$8,280,000;
NOW THEREFORE Be It Ordained by the City Council of the City of Elgin, Kane and
Cook Counties, Illinois, in the exercise of its home rule powers and in accordance with the
Enabling Ordinance, as follows:
Section 1. Definitions. The following words and terms used in this Ordinance
shall have the following meanings unless the context or use clearly indicates another or
different meaning is intended:
"Bond" or "Bonds" means one or more, as applicable, of the $8,280,000 General
Obligation Refunding Bonds, Series 1993B, authorized to be issued by this Ordinance.
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rik "Bond Fund" means the Bond Fund established and defined in Section 11 of this
Ordinance.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence
the registration and transfer of the Bonds.
"Bond Registrar" means American National Bank and Trust Company of Chicago,
Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor
designated as Bond Registrar hereunder.
"City" means the City of Elgin, Kane and Cook Counties, Illinois.
"City Council" means the City Council of the City.
"Code" means the Internal Revenue Code of 1986.
"Ordinance" means this Ordinance, numbered , and passed by the City
Council on the 26th day of May, 1993.
"Outstanding Bonds" means the outstanding and unpaid Water Bonds, Series 1980
described more fully in the preambles hereto and which are being refunded by the
Refunding.
"Paying Agent" means American National Bank and Trust Company of Chicago,
Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor
designated as Paying Agent hereunder.
"Refunding" means the refunding of the Outstanding Bonds on their earliest
redemption dates as more fully set forth herein.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and
received thereon as not includible in the gross income of the owners thereof under the Code
for federal income tax purposes except to the extent that such interest will be taken into
account in computing an adjustment used in determining the alternative minimum tax for
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certain corporations, in computing the environmental tax imposed on certain corporations
and in computing the "branch profits tax" imposed on certain foreign corporations.
Section 2. Incorporation of Preambles. The City Council hereby finds that all of
the recitals contained in the preambles to this Ordinance are true, correct and complete and
does incorporate them into this Ordinance by this reference.
Section 3. Determination To Issue Bonds. It is necessary and in the best interests
of the City to accomplish the Refunding and to pay all related costs and expenses incidental
thereto, and to borrow money and issue the Bonds for such purposes. It is hereby found and
determined that such borrowing of money is necessary for the welfare of the government
and affairs of the City, is for a proper public purpose or purposes and is in the public
interest, and these findings and determinations shall be deemed conclusive.
Section 4. Bond Details. For the purpose of providing for the Refunding and to
pay all related costs and expenses incidental thereto, there shall be issued and sold the Bonds
in the principal amount of $8,280,000. The Bonds shall each be designated "General
Obligation Refunding Bond, Series 1993B"; be dated June 15, 1993; and shall also bear the
date of authentication thereof. The Bonds shall be in fully registered form, shall be in
denominations of $5,000 or integral multiples thereof (but no single Bond shall represent
principal maturing on more than one date), shall be numbered consecutively in such fashion
as shall be determined by the Bond Registrar, and shall become due and payable serially on
December 15 of each of the years and in the amounts (being subject to the right of prior
redemption hereinafter set forth) and bearing interest at the rates percent per annum as
follows:
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YEAR AMOUNT($) RATE(%)
1993 280,000 2.60
1994 100,000 3.15
1995 1,490,000 3.35
1996 1,550,000 3.70
1997 1,615,000 3.95
1998 1,580,000 4.10
1999 1,665,000 4.25
The Bonds shall bear interest from the later of their dated date as herein provided or
from the most recent interest payment date to which interest has been paid or duly provided
for, such interest (computed upon the basis of a 360-day year of twelve 30-day months)
being payable on June 15 and December 15 of each year, commencing on December 15,
1993. Interest on each Bond shall be paid by check or draft of the Paying Agent, payable
upon presentation thereof in lawful money of the United States of America, to the person in
whose name such Bond is registered at the close of business on the 1st day of the month next
preceding the interest payment date and shall be paid by check or draft of the Paying Agent,
payable upon presentation 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. The principal
of the Bonds shall be payable in lawful money of the United States of America upon
presentation thereof at the principal corporate trust office of the Paying Agent in the City of
Chicago, Illinois, or at successor Paying Agent and locality.
Section 5. Execution; Authentication. The Bonds shall be executed on behalf of
the City by the manual or facsimile signature of its Mayor and attested by the manual or
facsimile signature of its City Clerk, as they may determine, and shall have impressed or
imprinted thereon the corporate seal or facsimile thereof of the City. In case any such
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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 authentication, substantially in the form hereinafter set forth,
duly executed by 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 be deemed to have been executed by it 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 6. Registration of Bonds; Persons Treated as Owners; Global Book-Entry
System.
A. Registration of Bonds . The City shall cause the Bond Register to be kept at the
principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois; and
the same is hereby constituted and appointed the registrar of the City for the Bonds. The
City is authorized to prepare, and the Bond Registrar or such other agent as the City may
designate shall keep custody of, multiple Bond blanks executed by the City for use in the
transfer and exchange of Bonds.
Any fully registered Bond or Bonds may be exchanged upon presentation at the
principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, duly
�r► endorsed by, or accompanied by a written instrument or instruments authorizing such
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exchange in form satisfactory to the Bond Registrar and duly executed by, the registered
owner or his attorney duly authorized in writing, for a like aggregate principal amount of
Bond or Bonds of the same maturity, of other authorized denominations and of the same
interest rate.
Upon surrender for transfer of any Bond at the principal corporate trust office of the
Bond Registrar in the City of Chicago, Illinois, duly endorsed by, or accompanied by a
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 and interest rate.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the 1st day of the month next preceding an interest payment date to such
interest 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 Bonds
of each maturity authenticated by the Bond Registrar shall not at any one time exceed the
authorized principal amount of Bonds for such maturity less the amount of such Bonds
which have been paid.
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
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legal representative. All such payments shall be valid and effectual to satisfy and discharge
the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any such 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 in connection with any such transfer or
exchange of Bonds.
B. Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
described in Section 4 hereof. Upon initial issuance, the ownership of each such Bond shall
be registered in the Bond Register in the name of Kray & Co., or any successor thereto, as
nominee of the Midwest Securities Trust Company, Chicago, Illinois, and its successors and
assigns ("MSTC"). All of the outstanding Bonds shall be registered in the Bond Register in
the name of Kray & Co., as nominee of MSTC, except as hereinafter provided. The Mayor,
City Clerk and City Treasurer are each authorized to execute and deliver on behalf of the
City such letters to or agreements with MSTC and the Bond Registrar as shall be necessary
to effectuate such book-entry system (any such letter or agreement being referred to herein
as the "Representation Letter"), which Representation Letter may provide for the payment
of principal of or interest on the Bonds by wire transfer.
With respect to Bonds registered in the Bond Register in the name of Kray & Co., as
nominee of MSTC, the City and the Bond Registrar shall have no responsibility or obligation
to any broker-dealer, bank or other financial institution for which MSTC holds Bonds from
time to time as securities depository (each such broker-dealer, bank or other financial
institution being referred to herein as a "MSTC Participant") or to any person on behalf of
whom such a MSTC Participant holds an interest in the Bonds. Without limiting the
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immediately preceding sentence, the City and the Bond Registrar shall have no responsibility
or obligation with respect to (i) the accuracy of the records of MSTC, Kray & Co. or any
MSTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to
any MSTC Participant or any other person, other than a registered owner of a Bond as
shown in the Bond Register, of any notice with respect to the Bonds, including any notice of
redemption, or (iii) the payment to any MSTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register, of any amount with respect to
the principal of or interest on the Bonds. The City and the Bond Registrar may treat and
consider the person in whose name each Bond is registered in the Bond Register as the
holder and absolute owner of such Bond for the purpose of payment of principal and interest
with respect to such Bond, for the purpose of giving notices of redemption and other matters
with respect to such Bond, for the purpose of registering transfers with respect to such
Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of
and interest on the Bonds only to or upon the order of the respective registered owners of
the Bonds, as shown in the Bond Register, or their respective attorneys duly authorized in
writing, and all such payments shall be valid and effective to fully satisfy and discharge the
City's obligations with respect to payment of the principal of and interest on the Bonds to the
extent of the sum or sums so paid. No person other than a registered owner of a Bond as
shown in the Bond Register shall receive a Bond certificate evidencing the obligation of the
City to make payments of principal and interest with respect to any Bond. Upon delivery by
MSTC to the Bond Registrar of written notice to the effect that MSTC has determined to
substitute a new nominee in place of Kray & Co., and subject to the provisions in Section 5
hereof with respect to the payment of interest to the registered owners of Bonds at the close
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of business on the 1st day of the month next preceding the applicable interest payment date,
the name "Kray & Co." in this Ordinance shall refer to such new nominee of MSTC.
In the event that (i) the City determines that MSTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among
the City, the Bond Registrar and MSTC evidenced by the Representation Letter shall be
terminated for any reason or (iii) the City determines that it is in the best interests of the
beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall
notify MSTC and MSTC Participants of the availability through MSTC of Bond certificates
and the Bonds shall no longer be restricted to being registered in the Bond Register in the
name of Kray & Co., as nominee of MSTC. At that time, the City may determine that the
Bonds shall be registered in the name of and deposited with such other depository operating
a universal book-entry system, as may be acceptable to the City, or such depository's agent
or designee, and if the City does not select such alternate universal book-entry system, then
the Bonds may be registered in whatever name or names the registered owners of Bonds
transferring or exchanging Bonds shall designate, in accordance with the provisions of
Section 6 hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Kray & Co., as nominee of MSTC, all payments with
respect to principal of and interest on such Bond and all notices with respect to such Bond
shall be made and given, respectively, in the manner provided in the Representation Letter.
Section 7. Form of Bond. The Bonds shall be in substantially the form hereinafter
set forth; provided, however, that if the text of the Bond is to be printed in its entirety on
the front side of the Bond, then paragraph [2] and the legend "See Reverse Side for
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Additional Provisions" shall be omitted and paragraphs [6] through [9] shall be inserted
immediately after paragraph [1]:
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eft
[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
REFUNDING BOND, SERIES 1993B
See Reverse Side
for Additional
Provisions
Interest Maturity Dated
Rate: % Date: December 15, Date: June 15, 1993 [CUSIP]
Registered Owner:
Principal Amount:
[1] KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook
Counties, Illinois, a municipality and political subdivision of the State of 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 later
of the Dated Date of this Bond identified above or from the most recent interest payment
date to which interest has been paid or duly provided for, except as the provisions
hereinafter set forth with respect to redemption prior to maturity may be and become
applicable, at the Interest Rate per annum identified above, such interest to be payable on
June 15 and December 15 of each year, commencing December 15, 1993, until said
Principal Amount is paid. The principal of this Bond is payable in lawful money of the
United States of America upon presentation hereof at the principal corporate trust office of
American National Bank and Trust Company of Chicago, Chicago, Illinois, as paying agent
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(the "Paying Agent"). Payment 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 1st day of the month next preceding the interest payment date and shall be paid by
check or draft of the Paying Agent, payable upon presentation 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.
[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 conditions, acts and things required by the
Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the
issuance of this Bond have existed and have been properly done, happened and been
performed in regular and due form and time as required by law; that the indebtedness of the
City, represented by the Bonds, and including all other indebtedness of the City, howsoever
evidenced or incurred, does not exceed any constitutional or statutory or other lawful
limitation; and that provision has been made for the collection of a direct annual tax, in
addition to all other taxes, on all of the taxable property in the City sufficient to pay the
interest hereon as the same 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.
•
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[5] IN WITNESS WHEREOF the City of Elgin, Kane and Cook Counties, Illinois, by its
City Council, has caused this Bond to be executed by the manual or duly authorized facsimile
signature of its Mayor and attested by the manual or duly authorized facsimile signature of
its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced
hereon, all as appearing hereon and as of the Dated Date identified above.
[Facsimile Signature].
Mayor, City of Elgin
Kane and Cook Counties, Illinois
Attest:
[Facsimile Signature].
City Clerk, City of Elgin
Kane and Cook Counties, Illinois
(SEAL)
Date of Authentication:
emk
CERTIFICATE OF Bond Registrar and Paying Agent:
AUTHENTICATION American National Bank and Trust
Company of Chicago
Chicago, Illinois
This Bond is one of the Bonds
described in the within mentioned
Ordinance and is one of the $8,280,000
General Obligation Refunding Bonds,
Series 1993B, having a Dated Date of June
15, 1993, of the City of Elgin, Kane and
Cook Counties, Illinois.
AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO
as Bond Registrar
By
Authorized Signer
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en-
[Form of Bond - Reverse Side]
City of Elgin, Kane and Cook Counties, Illinois
General Obligation Refunding Bond
Series 1993B
[6] This bond is one of a series of bonds (the "Bonds") in the aggregate principal
amount of $8,280,000 issued by the City for the purpose of paying the costs of refunding
certain outstanding general obligation bonds of the City and of paying expenses incidental
thereto, all as described and defined in the ordinance authorizing the Bonds (the
"Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of
Section 6 of Article VII of the Constitution of the State of Illinois, with the Procedural
Ordinances of the City adopted in the exercise of its home rule powers in issuing bonds
without referendum, and with the Ordinance, which has been duly passed by the City
Council and published, in all respects as by law required.
[7] The Bonds are issued in fully registered form in the denominations of $5,000 or
authorized integral multiples thereof. This Bond may be exchanged upon presentation and
surrender for cancellation hereof at the principal corporate trust office of the Bond
Registrar in the City of Chicago, Illinois, but only in the manner, subject to the limitations
and upon payment of the charges provided in the Ordinance, for a like aggregate principal
amount of Bonds of the same maturity and interest rate of other authorized denominations.
This Bond is transferable by the Registered Owner hereof in person or by his attorney duly
authorized in writing at the principal corporate trust office of the Bond Registrar in the City
of Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of
the charges provided in the Ordinance, and upon presentation and surrender for cancellation
of this Bond. Upon such transfer a new Bond or Bonds of authorized denomination(s) of the
same maturity and interest rate and for the same aggregate principal amount will be issued
to the transferee in exchange therefor.
[8] The Bond Registrar shall not be required to transfer or exchange any Bond during
the period from the 1st day of the month next preceding an interest payment date to such
interest payment date.
[9] The City, the Bond Registrar and the Paying Agent may deem and treat the
Registered Owner 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
the City, the Bond Registrar and the Paying Agent shall not be affected by any notice to the
contrary.
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rib 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
, as attorney to transfer the said Bond on the
books kept for registration thereof with full power of substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and 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.
Section 8. Tax Levy. For the purpose of providing funds required to pay the
interest on the Bonds promptly when and as the same falls due, and to pay and discharge the
principal thereof at maturity, there is hereby levied upon all of the taxable property within
the City, in the years for which any of the Bonds are outstanding, a direct annual tax
sufficient for that purpose; and there is hereby levied on all of the taxable property in the
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rob. City, in addition to all other taxes, the following direct annual tax, to-wit:
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
1993 $ 409,750.00 for principal and interest to December 15,
1994
1994 $1,796,600.00 for principal and interest
1995 $1,806,685.00 for principal and interest
1996 $1,814,335.00 for principal and interest
1997 $1,715,542.50 for principal and interest
1998 $1,735,762.50 for principal and interest
Interest or principal coming due at any time when there are insufficient funds on hand
from the foregoing tax levy to pay the same shall be paid promptly when due from current
funds on hand in advance of the collection of said taxes herein levied; and when said taxes
shall have been collected, reimbursement shall be made to said funds in the amount so
advanced. The City covenants and agrees with the purchasers and registered owners 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. The City and its officers will comply with all present and
future applicable laws in order to assure that the foregoing taxes may be levied, extended
and collected as provided herein and deposited into the Bond Fund.
Section 9. Filing with the County Clerks. Promptly, as soon as this Ordinance
becomes effective, a copy hereof, certified by the City Clerk of the City, shall be filed with
the County Clerks of The Counties of Kane and Cook, Illinois; and each of said County
Clerks shall in and for each of the years 1994 to 1998, inclusive, ascertain the rate per cent
required to produce the aggregate tax hereinbefore provided to be levied in each of said
years; and each of said County Clerks shall extend the same for collection on the tax books
in connection with other taxes levied in said years in and by the City for general corporate
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purposes of the City; and in said years such annual tax shall be levied and collected by and
for and on behalf of the City in like manner as taxes for general corporate purposes for said
years are levied and collected, and in addition to and in excess of all other taxes.
Section 10. Sale of Bonds. The Bonds shall be executed as in this Ordinance
provided as soon after the passage hereof as may be, shall be deposited with the City
Treasurer, and shall be by the Treasurer delivered to the purchaser thereof, namely, Trust
Company Bank, Atlanta, Georgia, upon payment of the purchase price agreed upon, the
same being $8,271,720 plus accrued interest to date of delivery. The contract for the sale of
the Bonds to the purchaser is hereby in all respects ratified, approved and confirmed, it
being hereby declared 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
the name of any other person, association, trust or corporation, in such contract.
Section 11. Creation of Funds and Appropriations. The proceeds derived from the
sale of the Bonds shall be used as follows:
A. Accrued interest and premium, if any, on the Bonds shall be and is
hereby appropriated for the purpose of paying the first interest due on the Bonds and
to such end is hereby ordered to be deposited into the "General Obligation Refunding
Bonds, Series 1993B, Bond Fund" (the "Bond Fund"), hereby created, which shall be
the fund for the payment of principal of and interest on the Bonds. Taxes received
for the payment of the Bonds shall be deposited into the Bond Fund and used solely
and only for the purpose of paying the Bonds. Interest received from investments on
deposit in the Bond Fund shall be retained therein as a credit against future deposits or
transferred to such other fund as the City Council may from time to time determine.
B. A sum which, together with other legally available funds, shall be
sufficient to accomplish the Refunding, shall be deposited with American National
Bank and Trust Company of Chicago, Chicago, Illinois and be used to refund the
Outstanding Bonds.
C. The balance of the proceeds of the Bonds shall be set aside in a separate
fund, hereby created, and designated as the "Expense Fund." Money in said Fund
shall be used to pay all costs and expenses incidental to the issuance of the Bonds.
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elk Section 12. Not Private Activity Bonds. None of the Bonds is a "private activity
bond" as defined in Section 141(a) of the Code. In support of such conclusion, the City
certifies, represents and covenants as follows:
A. None of the proceeds of the Bonds are to be used, directly or indirectly,
in any trade or business carried on by any person other than a state or local
governmental unit.
B. The payment of the principal of or the interest on the Bonds will not be,
directly or indirectly (i) secured by any interest in (A) property used or to be used in
any activity carried on by any person other than a state or local governmental unit or
(B) payments in respect of such property, or (ii) derived from payments (whether or
not by or to the City), in respect of property, or borrowed money, used or to be used
in any activity carried on by any person other than a state or local governmental unit.
C. None of the proceeds of the Bonds or the Outstanding Bonds have been or
are to be used, directly or indirectly, to make or finance loans to any persons.
D. No user of the facilities financed, refinanced or reimbursed, directly or
indirectly, in whole or in part, with the proceeds (including investment earnings) of
the Outstanding Bonds (the "Project") other than the City will use the same on any
basis other than the same basis as the general public; and no person will be a user of
the Project as a result of (i) ownership or (ii) actual or beneficial use pursuant to a
lease, a management or incentive payment contract, or (iii) any other arrangement,
agreement or understanding, whether written or oral.
Section 13. General Arbitrage Covenants. The City represents and certifies as
follows with respect to the Bonds:
A. Except for the Bond Fund, the City has not created or established and will not
create or establish any sinking fund, reserve fund or any other similar fund to provide for
the payment of the Bonds. The Bond Fund has been established and will be funded in a
manner primarily to achieve a proper matching of tax revenues and debt service, and will be
depleted at least annually to an amount not in excess of 1/12 the particular annual debt
service on the Bonds. Money deposited in the Bond Fund will be spent within a 12-month
period beginning on the date of deposit, and investment earnings in the Bond Fund will be
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spent or withdrawn from the Bond Fund within a one-year period beginning on the date of
receipt.
B. The foregoing statements of expectation are based upon the following facts and
estimates:
(1) Amounts shown as received will be received pursuant to contract of sale.
(2) Amounts paid or to be paid into various funds and accounts have been
directed to be paid into said funds and accounts by authority hereof or are expected to
be so directed to be paid by further proceedings.
C. To the best of the knowledge and belief of the City Council, and of the
undersigned Mayor and City Clerk who are officers charged with the responsibility of
issuing the Bonds, 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.
D. The City has not been disqualified as, or disqualified as, or notified of any
disqualification or proposed disqualification of it by the Commissioner of the Internal
Revenue Service as a bond issuer which may certify bond issues under Treas. Reg. §1.103-
13 (a)(2)(ii) (1979).
The City also certifies and further covenants with the purchasers and registered
owners of the Bonds from time to time outstanding that moneys on 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 source, will not be used in a manner
which will cause the Bonds to be "arbitrage bonds" within the meaning of the Code Section
148 and any lawful regulations promulgated thereunder, including Treas. Reg. §§1.103-13,
1.103-14 and 1.103-15 (1979), Treas. Reg. §§1.148-0 through 1.148-11 and Temp. Treas.
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Reg. §§1.148-12T and 1.148-13T as the same presently exist or may from time to time
hereafter be amended, supplemented or revised. The City reserves the right to use or invest
moneys in connection with the Bonds in any manner, notwithstanding the covenants herein,
provided it shall first have received an opinion from an attorney or a firm of attorneys of
nationally recognized standing in matters pertaining to Tax-exempt bonds to the effect that
use or investment of such moneys as contemplated will not result in loss of Tax-exempt
status for the Bonds.
Section 14. Further Tax Covenants. The City agrees to comply with all provisions
of the Code which, if not complied with by the City, would cause the Bonds not to be Tax-
exempt. In furtherance of the foregoing provisions, but without limiting their generality,
the City agrees: (a) through its officers to make such further specific covenants,
representations as shall be truthful, and assurances as may be necessary or advisable; (b) to
ribh comply with all representations, covenants and assurances contained in certificates or
agreements as may be prepared by counsel approving the Bonds; (c) to consult with such
counsel and to comply with such advice as may be given; (d) to pay to the United States, if
necessary, such sums of money representing required rebates of excess arbitrage profits
relating to the Bonds; (e) to file such forms, statements and supporting documents as may be
required and in a timely manner; and (f) if deemed necessary or advisable by its officers, to
employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the
City in such compliance.
Section 15. Taxes Previously Levied. The taxes previously levied to pay principal
of and interest on the Outstanding Bonds, to the extent such taxes are not needed to pay
principal or interest on the Bonds or the Outstanding Bonds or to accomplish the Refunding,
shall be abated. The filing of a certificate of abatement with the County Clerks of the
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• .
en- Counties of Kane and Cook, Illinois, as hereinabove provided shall constitute authority and
direction for said County Clerks to make such abatement.
Section 16. Registered Form. The City recognizes that Section 149 of the Code
requires the Bonds to be issued and to remain in fully registered form in order to be and
remain Tax-exempt. 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 17. Rights and Duties of Bond Registrar. If requested by the Bond
Registrar and Paying Agent, any officer of the City is authorized to execute the Bond
Registrar and Paying Agent's standard form of agreement between the City and the Bond
Registrar and Paying Agent with respect to the obligations and duties of the Bond Registrar
and Paying Agent hereunder. In addition to the terms of such agreement and subject to
modification thereby, the Bond Registrar and Paying Agent by its acceptance of duties
hereunder agrees as follows:
A. to act as bond registrar, paying agent, authenticating 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 to the extent
permitted by law;
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.
The City Clerk of the City is hereby directed to file a certified copy of this Ordinance
with the Bond Registrar and the Paying Agent.
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. .
Section 18. Publication of Ordinance. That a full, true and complete copy of this
ordinance be published in pamphlet form within ten days after passage.
Section 19. Approval of Official Statement. The use of the Official Statement by
Speer Financial, Inc., Chicago, Illinois in connection with the sale of the Bonds is hereby
ratified. The form, terms and provisions of the Official Statement be, and it hereby is, in all
respects approved, and that the Mayor and the City Manager of the City be, and they hereby
are, authorized, empowered and directed to execute, acknowledge and deliver the Official
Statement in the name and on behalf of the City; and that from and after the execution and
delivery of the Official Statement, the officers, agent and employees of the City 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 Official
Statement as executed, and any addenda, supplement, or amendment thereto, are hereby
ruk approved, and the further use thereof in connection with any reoffering of the Bonds is
hereby authorized.
Section 20. Redemption of Outstanding Bonds. The Outstanding Bonds are hereby
called for redemption on July 1, 1993 at par, accrued interest and a premium of 1.5 percent
of par. The appropriate City officials are hereby authorized and directed to provide for the
redemption of the Outstanding Bonds and to give to the holders of the Outstanding Bonds
such notices of redemption as are required by the ordinance authorizing their issuance.
r
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Section 21. Superseder and Effective Date. All ordinances, resolutions and orders,
or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded;
and this Ordinance shall be in full force and effect immediately upon its passage, approval
and publication.
AYES: Councilmembers Fox, Gilliam, Popple,
Schock, Walters . Yearman, and Mayor VanDeVoorde.
NAYS: None.
ABSENT: None .
ADOPTED: May 26, 1993
APPROVED: May 2 6 , 1993
r Mayor, 4,, of Elgin
Kane and Cook Counties,Illinois
Recorded In City Records: May 2 7 , 1993.
Published in pamphlet form by authority of the City Council on June 3 , 1993.
Attest:
City Clerk, City of Elgin
Kane and Cook Counties,Illinois
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