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HomeMy WebLinkAboutORDINANCES-1975-003-O-75r 1� U ORDINANCE NC. 3-0-75 AN ORDINANCE providing for borrowing money and issuing bonds of the City of Evanston, Cook County, Illinois, to the amount of $800,00.0 for the purpose of paying part of the cost of constructing municipal improvements and providing for the levy • and collection of*a direct annual -tax for the payment of the principal and interest of said bonds. WHEREAS, the City of Evanston, Cook County, Illinois, has a population in excess of 25,000 as determined by the last official census, and accordingly pursuant to the provisions of the 1970 Constitution.of the State of Illinois, and particularly Article VII, Section 6(a) thereof, said City is a home rule unit and as such may excercise 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 ,Evanston 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, on the 27th day of August, 1973, the City Council of said City did adopt Ordinance 78-0-73 establishing the procedures to be followed in the borrowing of money for public corporate purposes of said City and the issuing of full faith and credit bonds of said City without referendum approval, such ordinance being entitled: "AN ORDINANCE ESTABLISHING PROCEDURES TO BE FOLLOWED IN INCURRING INDEBTEDNESS FOR CORPORATE PURPOSES, ISSUING NON -REFERENDUM BONDS TO EVIDENCE SUCH INDEBTEDNESS AND AUTHORIZING AND DIRECTING THE BUYING OF A TAX FOR THE PURPOSE OF PAYING PRINCIPAL.ON SUCH•BONDS AND•INTEREST-THEREON AS THE SAME BECOME DUE." and which said ordinance is now in full force and effect; and WHEREAS it is deemed to be necessary, essential and in the best interests of the inhabitants of the City of Evanston that municipal improvements be constructed in and for said City, to include necessary construction of streets, storm water drainage facilities and sanitary sewer facilities, together with all appurtenances incidental thereto, in accordance with preliminary plans, reports and estimates of cost now on file in the office of the City Clerk; and WHEREAS, it is necessary that improvements above referred to be made in order to meet the needs of the inhabitants of the City, and it is necessary for that purpose that the sum.of $800,000 be borrowed at this time and in evidence of such indebtedness full faith and credit bonds of the City be issued in the principal amount of $800,000 and that such indebtedness be incurred in accordance with the procedures established in Ordinance 78-0-73 and 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 Evanston, Cook County, Illinois, as follows: Section 1. In order to raise the sum of $800,000 presently needed for the purpose of constructing municipal improvements in and for said City, including necessary construction of streets, storm water drainage facilities and sanitary sewer facilities, together with all appurtenances incidental thereto, there be borrowed by, for and on behalf of the City of Evanston, Cook County, Illinois, the sum of $800,000 and to evidence said loan negotiable coupon bonds of said City be issued. Said bonds shall each be designated "Corporate Purpose Bond, Series 1975", be dated January 1, 1975, be numbered consecutively from 1 to 160, inclusive, be of the denomination of $5,000 each and become due serially on January 1 • -2- of eacii of t:hc yc.ar.; an6l -.1n tL: bc-ar as follows: • Serial Idumbers, Principal Year of Rate of both inclusive Amount Maturity Interest 1 to 15 $ 75,000 1.977 4.9o% .16 to 30 75,000 1978 4.9o% 31 to �45 75,000 1979 4.90% 46 to 6o 75,000 1980 4.9o% 61 to 75 75,000 1981 4.9o% 76 to 90 75,000 1982 4.9o% 91 to 105 75,000 1983 4.90% 106 to 120 75, 000 1984 5.00% 121 to 140 100,000 1985 5.20°% 1141 to 160 100,000 1986 5.20% Interest on said bonds shall be payable initially on July 1, 1975, and semiannually thereafter on the first days of January and July in each year, which said interest payments to date of maturity of principal shall be evidenced by proper interest coupons attached to each bond and maturing on the dates herein • provided. Both principal and interest shall be payable in lawful .money of the United States of America at HARRIS TRUST and SAVINGS BANK , in th•e City of CH I CAGO , ILLINOIS The seal of said City shall be affixed to each of. said bonds and said bonds shall be signed by the Mayor and be attested by the Clerk of said City, and said coupons shall be signed and attested by said officials, respectively, by their respective facsimile signatures, and said officials, by the execution of said bonds, shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. Section 2. The bonds hereby authorized shall be payable to bearer, provided, however, that such bonds may be subject to registration as to principal in the name of the holder on the books of the Treasurer of said City, .such registration, o be'evi-di�nced•by' • notation of said Treas.urer on the back * of such bonds' so registered. No bond so registered shall be subject to transfer, except upon such books and similarly noted,on the hick thereof, unless the last registration shall have been to bearer. ,Such registration of any of • said bonds shall not, however, affect the negotiability of the coupons attached to said bonds, but such coupons shall continue transferable by delivery merely. Section 3. Each of said bonds and'the interest coupons to be thereto attached shall be in substantially the following form: (Form of Bond) 5 UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK CITY OF EVANSTON CORPORATE PURPOSE BOND, SERIES 1975 Number $5,000 KNOW ALL MEN BY THESE PRESENTS, that the City of Evanston, • Cook County, Illinois, hereby acknowledges itself to owe and for value received promises to pay to bearer or, if this bond be .,registered, to the registered holder hereof, the sum of FIVE THOUSAND DOLLARS ($5,000) on the first day of January, 19`, together with interest on said sum from the date hereof until paid at the rate of per cent ( %) per annum, payable on July 1, 1975, and semiannually thereafter on January 1 and July 1 in each year upon presentation and surrender of the respective interest coupons hereto attached as they severally become due and payable. Both principal and interest are hereby made payable in lawful money of the United States of America at in the City of For the prompt payment of this bond, both principal and interest, as aforesaid, at maturity, and.the levy of taxes sufficient for that purpose, the full faith, credit and resources of said City • are hereby irrevocably pledged. This bond is one of a series of bonds issued by said City for the purpose of paying part of the cost of constructing municipal improvements in and for said City, including necessary construction of streets,' storm water drainage facilities and sanitary sewer facilities, together with all appurtenances incidental thereto, 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, and in compliance with the provisions of an ordinance adopted by the City Council of said City establishing the procedures for issuing full faith and credit non -referendum bonds, and an ordinance authorizing the issuance of this bond and the series of which it forms a part, duly published and now in full force • and effect. It is hereby certified and recited that all acts, con- ditions and things required by the Constitution and Laws of the State of Illinois, and including the procedures established by the City ordinance for the exercise of its home rule powers conferred by Section 6 of Article VII of said Constitution of the State of. Illinois in issuing its full faith and credit bonds payable from ad valorem property tax receipts without prior referendum approval; 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 said City of Evanston, represented by this.bond and the issue of which it forms a part, and including all other r1 U A indebtedness of said City, howsoever evidenced and incurred, does not exceed any constitional or statutory,..limitation, and that provision has been made for the collect;. -on of a direct annual tax, in addition to all other taxes, on all of the taxable property in said City sufficient to pay the interest hereon as the same falls due and also to pay and discharge the principal hereof at maturity. This bond is subject to registration as to principal in the name of the holder on the books of the City Treasurer, such registration to be evidenced by notation of such Treasurer on the back hereof, and after such registration no transfer hereof, except upon such books and similarly noted hereon, shall be valid unless the last registration shall have been to bearer. Registration hereof shall not affect the negotiability of the coupons hereto attached, which shall continue negotiable by delivery merely, notwithstanding registration hereof. • IN WITNESS WHEREOF, said City of Evanston, Cook County, Illinois, by its City Council, has caused its corporate seal to be hereunto affixed, and this bond to be signed by the Mayor of said City and attested by its City Clerk, and the coupons hereto attached to be signed and attested by said officials, respectively, by their facsimile signatures, and said officials, by the execution hereof, do adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons, all as of the first day of January, 1975. Attest: • City Clerk, City of Evanston, Cook County, Illinois (SEAL) Mayor, City of Evanston, Cook County, Illinois -6- (Form of Coupon) Number $ -On the first day of 19_, the City of • Evanston, Cook County, Illinois, will pay to bearer Dollars ($ ) in lawful money of the United States of America at , in the City of , Illinois, for interest due that day on its Corporate Purpose Bond, Series 1975, dated January 1, 1975, Number Attest: City Clerk, Mayor, City of Evanston, City of Evanston, Cook County, Illinois Cook County, Illinois (Form for Registration as to Principal) Date of Signature of Registration Name of Registered Owner City Treasurer C. Section 4. For the purpose of providing funds required to pay the interest on said bonds promptly when and as the same falls due and to pay and discharge the principal thereof at maturity, there be and there is hereby levied upon all the taxable property within said City, in each year while any of said bonds are outstanding, a direct annual tax sufficient for that purpose, and that there be and there is hereby levied on all of the taxable property in said City, in addition to all other taxes, the following direct annual tax, to -wit: • For the Year 1975 • 1976 1977 1978 Y 1979 1980 1981 1982 I A Tax SuffAcient: to Produce the Surx of. $ 154,750 for interest and principal through January 1, 1977 $ 1 1 1 ,200 for interest and principal $ 107,525 for interest and principal $ 103,850 for interest and principal $ 100,175 for interest and principal $ 96,500 for interest and principal $ 92,825 for interest and principal $ 89,150 for interest and principal $ 110,400 for interest and principal $ 105,200 for interest and principal Interest or principal coming due at any time when there are insufficient funds on hand to pay the same 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 thus advanced. Section 5. Forthwith as soon as this ordinance becomes effective, a copy hereof, certified to by the Clerk of said City, which certificate shall recite that this ordinance has been passed by the City Council of said City, and published, shall be filed with the County Clerk of Cook County, Illinois, and said County Clerk shall, in and for each of the years 1975 to 1984, both years included, ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in said year, and said ordinance shall constitute authority.for said County Clerk to extend the same for collection on the tax books in connection with other taxes levied in each of said years, respectively, in and by said City for general corporate purposes of said City, and in each of said years, such annual tax shall be levied and collected by said City in like manner -8- as taxes for general corporate purposes for each of said years are levied and -.collected, and in addition to and in excess of all, • other taxes, and when collected such taxes shall be used solely for the purpose of paying principal and interest upon the bonds herein authorized -when same mature. Section 6. The funds derived from such levy be and the same are hereby appropriated and set aside for the sole and only purpose of paying principal of and interest on said bonds when and as the same become due. That the funds derived from the sale of said bonds be and they are hereby appropriated and set aside for the pur- pose hereinbefore set out. The proceeds of sale of the bonds will be used and devoted with due diligence for the purposes as provided herein, and said City covenants and agrees with the purchasers and holders of the bonds herein authorized as.follows: (a) That within six months after the delivery of • said bonds said City expects to incur substantial binding obligations in connection with the construction program herein authorized, said obligations being in an aggregate amount not less than 2-1/2% of the estimated cost of construction; (b) That the City Council expects more than 85% of the spendable proceeds of the bonds,, including in- vestment proceeds, will be expended on or before December 1, 1977, said date being within three years following the date of issue of said bonds; (c) That the construction work is expected to proceed with due diligence to completion; (d) That the property, both real and personal, to • be acquired and constructed with bond proceeds is not M ....... _. __ .... . __. .. - - --.. expected to be sold or otherwise disposed of, in whole or in part, prior to the. last maturity of said bonds; (e) That all'of the principal proceeds of the • bonds are needed for the purpose of the construction program herein authorized, including expenses incidental to such purpose and to the issuance of the bonds; and .(f) 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. The City Council also certifies and further covenants with the purchasers and holders of said bonds from time to time outstand- ing that, so long as any of said bonds remain outstanding, moneys on deposit in any fund or account in connection with said bonds, whether or not such moneys were derived from the proceeds of the sale of said bonds or from any other sources, will not be used in a manner which • will cause such bonds to be "arbitrage bonds within the meaning of g g Sections 103(d) of,the Internal Revenue Code of 1954, as amended, and any lawful regulations promulgated or proposed thereunder, in- cluding Section 1.103-13 and 1.103-14 of the Income Tax Regulations [26 CFR Part 11, 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 state law if, when and to the extent that said Section 103(d) or regulations promulgated thereunder shall be repealed or relaxed 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 said bonds subject to federal income taxation. -10- Section 7. Forthwith after ti,is ordinance has become . • effective as provided by law, the bonds herein authorized shall be executed and delivered by the Treasurer of said City and by him delivered to Harri c Tr,iGt and Ravingc Rank Mi rara g � the purchaser thereof, upon receipt of the purchase price therefor, same to be not less than the par value of said bonds plus accrued interest to date of delivery and a premium of $ ttii,nr) , and the contract for the sale of said bonds to said purchaser, heretofore entered into, be and the same is hereby in all respects ratified, approved and confirmed. Section 8. That all ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby repealed, and this ordinance shall be in full force and effect upon its passage, approval and the publication thereof • as provided by law. APPROVED: /s/ EAQar Vanneman. Jr. Mayor, City of Evanston, Cook County, Illinois ADOPTED: January 13, 1975. Alderman Harris, Lange, Lyons, Kneafsey, Staples, Vote: Lytle, Wyandt, Summers, Geraghty, Fitzsimons, Neems, Brinkmann, Winfield, Pittsford, and Hoover AYE: NAY: Finn ATTEST: . /s/ Maim CP F. Rrnwn City Clerk, City of Evanston, Cook County, Illinois -11- • STATE OF ILLINOIS ) SS COUNTY OF COOK } I, the undersigned, do hereby certify that I am the duly qualified and acting Clerk of the City of Evanston, Cook County, Illinois, and as such Clerk I am the keeper of the official journal, records and files of the City Council of said City. I do further certify that the attached and foregoing is a true, full and correct copy of an ordinance providing for the borrowing of money and the issuance of $800,000 Corporate Purpose Bonds, Series 1975, of the City of Evanston, Cook County, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal and interest on the same as it. matures, as adopted by the City Council of said City at its legally convened meeting held on Sr-wuhir I3 , 1975, and as approved by the Mayor of said City, all as appears from the official records of • said City in my care and custody. IN WITNESS WHEREOF, I have hereunto affixed my official signature and the corporate seal of said City at Evanston, Illinois, this day of 'SX*4V%V f 1975. (CITY SEAL) 0 City Clerk, City of Evanston, Cook County, Illinois