HomeMy WebLinkAboutORDINANCES-2006-073-O-06ORDINANCE NUMBER 73-0-06
ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $11,000,000 GENERAL OBLIGATION BONDS,
SERIES 2006, OF THE CITY OF EVANSTON, ILLINOIS
•
Adopted by the City Council on
June 26, 2006
Published in Pamphlet Form by
the authority of the City Council
on June 27, 2006.
•
ORDINANCE NUMBER 73-0-06 •
ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
$11,000,000 GENERAL OBLIGATION BONDS, SERIES 2006, OF THE
CITY OF EVANSTON, ILLINOIS
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON,
ILLINOIS, AS FOLLOWS:
Section 1. Authority, Purposes and Findings. This ordinance is adopted
pursuant to the provisions of Section 6 of Article VII of the Illinois Constitution of 1970,
and authorizes the issuance of not to exceed $11,000,000 principal amount of General
Obligation Bonds, Series 2006 (the "2006 Bonds") of the City of Evanston, Illinois (the
"City")
The City Council has heretofore and does hereby determine to undertake the
capital improvement program described in the current Capital Improvement Plan of the •
City. The portion of the capital improvement program to be funded by the application of
the proceeds of sale of the 2006 Bonds (the "2006 Projects") includes the following
capital improvement projects, which are more particularly described in the current
Capital Improvement Plan, approved by this City Council and on file in the office of the
City Clerk:
Project Category Estimated Cost
Alley Improvements .............................................. $ 950,000
Water Main Projects ............................................. 2,000,000
General Capital Improvement Fund Projects........ 7,550,000
Section 2. Approval of Financing Plan. The City Council determines to is
proceed with the financing of the 2006 Projects by the issuance and sale of the 2006
Bonds. The 2006 Bonds shall be sold pursuant to a negotiated sale to William Blair &
• Company LLC, as underwriter (the "Underwriter").
In order to accommodate current market practices and the provisions of federal
income tax law and to provide the opportunity to sell the 2006 Bonds under the most
favorable terms, the City Council hereby delegates to the City Manager the authority to
sell the 2006 Bonds to the Underwriter, to sign a bond purchase agreement with respect
to the 2006 Bonds and to determine certain details of the 2006 Bonds. All
determinations delegated to the City Manager pursuant to this ordinance shall be made
by the City Manager by the execution of a written bond order (the "Bond Order"). The
delegated authority granted to the City Manager pursuant to this Section shall expire on
October 31, 2006.
Section 3. Authorization and Terms of 2006 Bonds. The sum of
• $11,000,000 is appropriated to meet part of the estimated costs of the 2006 Projects.
Said appropriation includes provisions for capitalizing interest on the 2006 Bonds and
the payment of the costs of issuance of the 2006 Bonds. Pursuant to the home rule
powers of the City to incur debt payable from ad valorem property tax receipts and for
the purpose of financing said appropriation, the 2006 Bonds are authorized to be issued
and sold in an aggregate principal amount of not to exceed $11,000,000. The 2006
Bonds shall be general obligation bonds of the City, shall be issued in such principal
amount as shall be determined in the Bond Order and shall be designated "General
Obligation Bonds, Series 2006."
The 2006 Bonds shall be issuable in the denominations of $5,000 or any integral
multiple thereof and may bear such identifying numbers or letters as shall be useful to
facilitate the registration, transfer and exchange of the 2006 Bonds. Each 2006 Bond
-2-
delivered upon the original issuance of the 2006 Bonds shall be dated as of the date
specified in the Bond Order. Each 2006 Bond thereafter issued upon any transfer, •
exchange or replacement of 2006 Bonds shall be dated so that no gain or loss of
interest shall result from such transfer, exchange or replacement.
The 2006 Bonds shall mature, and 2006 Bonds of certain maturities may be
subject to mandatory sinking fund redemption, on December 1 in such years and in
such principal amounts as shall be specified in the Bond Order, provided that no 2006
Bond shall mature later than December 1, 2026.
Each 2006 Bond shall bear interest from its date, computed on the basis of a 360
day year consisting of twelve 30 day months and payable in lawful money of the United
States of America on an initial interest payment date of December 1, 2006 and
semiannually thereafter on each June 1 and December 1 at the rates per annum as
shall be specified in the Bond Order, provided that (i) no 2006 Bond shall bear interest •
at a rate exceeding 6.00% per annum and (ii) the true interest cost of the 2006 Bonds
shall not exceed 5.50%.
Section 4. Payment Provisions. The principal of the 2006 Bonds shall be
payable in lawful money of the United States of America upon presentation and
surrender thereof at the corporate trust office of Wells Fargo Bank, N.A., in the City of
Chicago, Illinois which is hereby appointed to act as bond registrar and paying agent for
the 2006 Bonds. Interest on the 2006 Bonds shall be payable on each interest payment
date to the registered owners of record thereof appearing on the registration books
maintained by the City for such purpose at the corporate trust office of the bond
registrar, as of the close of business on the 15th day of the calendar month next
preceding the applicable interest payment date. Interest on the 2006 Bonds shall be
-3-
paid by check or draft mailed .to such registered owners at their addresses appearing on
• the registration books or by wire transfer pursuant to an agreement by and between the
City and the registered owner.
Section 5. Redemption Provisions. The 2006 Bonds may be subject to
redemption prior to maturity at the option of the City, as determined by the City Manager
in the Bond Order, and upon notice as herein provided, in such principal amounts and
from such maturities as the City Manager shall determine in the Bond Order and by lot
within a single maturity, at such redemption prices (not exceeding 102% of par) and for
such periods of redemption as shall be determined in the Bond Order.
Pursuant to the Bond Order, the City may designate one or more maturities of
the 2006 Bonds as term bonds subject to mandatory redemption by the application of
annual sinking fund installments. All 2006 Bonds subject to mandatory sinking fund
• redemption shall be redeemed at a redemption price equal to the principal amount
thereof to be redeemed. The bond registrar is hereby authorized and directed to mail
notice of the mandatory sinking fund redemption of the 2006 Bonds in the manner
herein provided.
Whenever 2006 Bonds subject to mandatory sinking fund redemption are
redeemed at the option of the City, the principal amount thereof so redeemed shall be
credited against the unsatisfied balance of future sinking fund installments or final
maturity amount established with respect to such 2006 Bonds, in such amounts and
against such installments or final maturity amount as shall be determined by the City in
the proceedings authorizing such optional redemption or, in the absence of such
• determination, shall be credited pro-rata against the unsatisfied balance of the
applicable sinking fund installments and final maturity amount.
-4-
On or prior to the 60th day preceding any sinking fund installment date, the City
may purchase 2006 Bonds, which are subject to mandatory redemption on such sinking •
fund installment date, at such prices (not exceeding par plus accrued interest) as the
City shall determine. Any 2006 Bond so purchased shall be cancelled and the principal
amount thereof so purchased shall be credited against the unsatisfied balance of the
next ensuing sinking fund installment of the 2006 Bonds of the same maturity as the
2006 Bond so purchased.
In the event of the redemption of less than all the 2006 Bonds of like maturity, the
aggregate principal amount thereof to be redeemed shall be $5,000 or an integral
multiple thereof and the bond registrar shall assign to each 2006 Bond of such maturity
a distinctive number for each $5,000 principal amount of such 2006 Bond and shall
select by lot from the numbers so assigned as many numbers as, at $5,000 for each
number, shall equal the principal amount of such 2006 Bonds to be redeemed. The •
2006 Bonds to be redeemed shall be the 2006 Bonds to which were assigned numbers
so selected; provided that only so much of the principal amount of each 2006 Bond shall
be redeemed as shall equal $5,000 for each number assigned to it and so selected.
Notice of the redemption of 2006 Bonds shall be mailed not less than 30 days
nor more than 60 days prior to the date fixed for such redemption to the registered
owners of 2006 Bonds to be redeemed at their last addresses appearing on said
registration books. The 2006 Bonds or portions thereof specified in said notice shall
become due and payable at the applicable redemption price on the redemption date
therein designated, and if, on the redemption date, moneys for payment of the
redemption price of all the 2006 Bonds or portions thereof to be redeemed, together
with interest to the redemption date, shall be available for such payment on said date,
-5-
and if notice of redemption shall have been mailed as aforesaid (and notwithstanding
• any defect therein or the -lack of actual receipt thereof by any registered owner) then
from and after the redemption date interest on such 2006 Bonds or portions thereof
shall cease to accrue and become payable. If there shall be drawn for redemption less
than all of a 2006 Bond, the City shall execute and the bond registrar shall authenticate
and deliver, upon surrender of such 2006 Bond, without charge to the owner thereof, in
exchange for the unredeemed balance of the 2006 Bond so surrendered, 2006 Bonds
of like maturity and of the denomination of $5,000 or any integral multiple thereof.
The bond registrar shall not be required to transfer or exchange any 2006 Bond
after notice of the redemption of all or a portion thereof has been mailed. The bond
registrar shall not be required to transfer or exchange any 2006 Bond during a period of
15 days next preceding the mailing of a notice of redemption that could designate for
• redemption all or a portion of such 2006 Bond.
Section 6. Approval of Documents. The form of Bond Purchase Agreement
by and between the City and the Underwriter with respect to the sale of the 2006 Bonds,
on file in the office of the City Clerk, is hereby approved. In connection with the sale of
the 2006 Bonds, the City Manager is authorized and directed to execute and deliver a
Bond Purchase Agreement in substantially the form of the Bond Purchase Agreement
on file in the office of the City Clerk, with such changes and completions as may be
approved by the City Manager, subject to the limitations of this ordinance. The
execution and delivery of the Bond Purchase Agreement shall constitute conclusive
evidence of the approval of such changes and completions.
The form of Preliminary Official Statement of the City with respect to the 2006
Bonds, in substantially the form on file in the office of the City Clerk, with such changes,
ON
omissions, insertions and revisions as the City Manager shall deem advisable, the
distribution thereof to prospective purchasers and the use thereof by the Underwriter in
connection with the offering of the 2006 Bonds is authorized, ratified and approved.
The City Manager may take such actions as may be required so that the Official
Statement will be "deemed final" as of its date for purposes of Securities and Exchange
Commission Rule 15c2-12 promulgated under the Securities Exchange Act of 1934.
The City Manager is authorized to permit the distribution of the final Official Statement
and any supplements to the Official Statement, in each case with such changes,
omissions, insertions and revisions as he shall deem advisable.
Each of the documents approved by this Section may be executed in one or
more counterparts. The corporate seal of the City, or a facsimile thereof may, if
required, be affixed or otherwise reproduced upon each document and attested by the •
manual or authorized facsimile signature of the City Clerk.
Section 7. Sale and Delivery of 2006 Bonds. (A) Subject to the limitations
contained in this ordinance, authority is delegated to the City Manager to sell the 2006
Bonds to the Underwriter, provided that:
(i) the underwriting discount of the Underwriter shall not exceed an
amount equal to one percent (1.00%) of the principal amount of the 2006 Bonds;
(ii) the principal of and interest on the 2006 Bonds payable in each
debt service year shall not be greater than the sum of (a) the debt service taxes
levied for the applicable tax levy year pursuant to paragraph (A) of Section 12 of
this ordinance, provided that for this purpose interest shall not include any
interest that is to be paid from moneys deposited, on the date of issuance of the
-7-
2006 Bonds, into the Capitalized Interest Account of the 2006 Debt Service
Fund;
(B) As used in paragraph (A) of this Section, the term "debt service year"
means the year following the applicable tax levy year.
(C) The sale and award of the 2006 Bonds shall be evidenced by the Bond
Order, which shall be signed by the City Manager. An executed counterpart of the Bond
Order shall be filed in the office of the City Clerk and entered in the records of the City.
(D) The Mayor, the City Manager, the Finance Director, the City Clerk and
other officials of the City are authorized and directed to do and perform, or cause to be
done or performed for or on behalf of the City each and every thing necessary for the
issuance of the 2006 Bonds, including the proper execution and delivery of the 2006
• Bonds, the Bond Purchase Agreement and the Official Statement.
Section 8. Execution and Authentication. Each 2006 Bond shall be
executed in the name of the City by the manual or authorized facsimile signature of its
Mayor. The corporate seal of the City, or a facsimile thereof, shall be thereunto affixed
or otherwise reproduced upon each 2006 Bond and attested by the manual or
authorized facsimile signature of the City Clerk.
In case any officer whose signature, or a facsimile of whose signature, shall
appear on any 2006 Bond shall cease to hold such office before the issuance of the
2006 Bond, such 2006 Bond shall nevertheless be valid and sufficient for all purposes,
the same as if the person whose signature, or a facsimile thereof, appears on such
2006 Bond had not ceased to hold such office. Any 2006 Bond may be signed, sealed
or attested on behalf of the City by any person who, on the date of such act, shall hold
the proper office, notwithstanding that at the date of such 2006 Bond such person may
N
not have held such office. No recourse shall be had for the payment of any 2006 Bonds
against any officer who executes the 2006 Bonds.
Each 2006 Bond shall bear thereon a certificate of authentication executed
manually by the bond registrar. No 2006 Bond shall be entitled to any right or benefit
under this ordinance or shall be valid or obligatory for any purpose until such certificate
of authentication shall have been duly executed by the bond registrar.
Section 9. Transfer, Exchange and Registry. The 2006 Bonds shall be
negotiable, subject to the provisions for registration of transfer contained herein. Each
2006 Bond shall be transferable only upon the registration books maintained by the City
for that purpose at the corporate trust office of the bond registrar, by the registered
owner thereof in person or by his attorney duly authorized in writing, upon surrender
thereof together with a written instrument of transfer satisfactory to the bond registrar
and duly executed by the registered owner or his duly authorized attorney. Upon the
surrender for transfer of any such 2006 Bond, the City shall execute and the bond
registrar shall authenticate and deliver a new 2006 Bond or 2006 Bonds registered in
the name of the transferee, of the same aggregate principal amount, maturity and
interest rate as the surrendered 2006 Bond. 2006 Bonds, upon surrender thereof at the
principal corporate trust office of the bond registrar, with a written instrument satisfactory
to the bond registrar, duly executed by the registered owner or his attorney duly
authorized in writing, may be exchanged for an equal aggregate principal amount of
2006 Bonds of the same maturity and interest rate and of the denominations of $5,000
or any integral multiple thereof.
For every such exchange or registration of transfer of 2006 Bonds, the City or the
bond registrar may make a charge sufficient for the reimbursement of any tax, fee or
•
•
•
M
other governmental charge required to be paid with respect to such exchange or
• transfer, which sum or sums shall be paid by the person requesting such exchange or
q 9 9
transfer as a condition precedent to the exercise of the privilege of making such
exchange or transfer. No other charge shall be made for the privilege of making such
transfer or exchange. The provisions of the Illinois Bond Replacement Act, 30 Illinois
Compiled Statutes 315, shall govern the replacement of lost, destroyed or defaced 2006
Bonds.
The City and the bond registrar may deem and treat the person in whose name
any 2006 Bond shall be registered upon the registration books as the absolute owner of
such 2006 Bond, whether such 2006 Bond shall be overdue or not, for the purpose of
receiving payment of, or on account of, the principal of, redemption premium, if any, or
• interest thereon and for all other purposes whatsoever, and all such payments so made
to any such registered owner or upon his order shall be valid and effectual to satisfy and
0
discharge the liability upon such 2006 Bond to the extent of the sum or sums so paid,
and neither the City nor the bond registrar shall be affected by any notice to the
contrary.
Section 10. General Obligations. The full faith and credit of the City are
hereby irrevocably pledged to the punctual payment of the principal of and interest on
the 2006 Bonds. The 2006 Bonds shall be direct and general obligations of the City,
and the City shall be obligated to levy ad valorem taxes upon all the taxable property in
the City for the payment of the 2006 Bonds and the interest thereon, without limitation
as to rate or amount.
-10-
Section 11. Form of Bonds. The 2006 Bonds shall be issued as fully 0
registered bonds and shall be in substantially the following form, the blanks to be
appropriately completed when the 2006 Bonds are.printed:
No.
United States of America
State of Illinois
County of Cook
CITY OF EVANSTON
GENERAL OBLIGATION BOND,
SERIES 2006
INTEREST RATE MATURITY DATE DATED DATE CUSIP
. % December 1, , 2006
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT:
The CITY OF EVANSTON, a municipal corporation and a home rule unit of the 0
State of Illinois situate in the County of Cook, acknowledges itself indebted and for
value received hereby promises to pay to the registered owner of this bond, or
registered assigns, the principal amount specified above on the maturity date specified
above, and to pay interest on such principal amount from the date hereof at the interest
rate per annum specified above, computed on the basis of a 360 day year consisting of
twelve 30 day months and payable in lawful money of the United States of America on
December 1, 2006 and semiannually thereafter on June 1 and December 1 in each year
until the principal amount shall have been paid, to the registered owner of record hereof
as of the 15th day of the calendar month next preceding such interest payment date, by
wire transfer pursuant to an agreement by and between the City and the registered
owner, or otherwise by check or draft mailed to the registered owner at the address of
such owner appearing on the registration books maintained by the City for such purpose
-11-
•
•
by Wells Fargo Bank, N.A., Chicago, Illinois, as bond registrar or its successor (the
"Bond Registrar"). This bond, as to principal and premium, if any, when due, will be
payable in lawful money of the United States of America upon presentation and
surrender of this bond at the office of the Bond Registrar. The full faith and credit of the
City are irrevocably pledged for the punctual payment of the principal of and interest on
this bond according to its terms.
This bond is one of a series of bonds issued in the aggregate principal amount of
$ 000, which are authorized and issued under and pursuant to Section 6 of
Article VII of the Illinois Constitution of 1970 and an ordinance adopted by the City
Council of the City on June 26, 2006 and entitled: "Ordinance Authorizing the Issuance
of Not to Exceed $11,000,000 General Obligation Bonds, Series 2006, of the City of
Evanston, Illinois."
The bonds of such series maturing on or after December 1, 20_ are subject to
redemption prior to maturity at the option of the City and upon notice as herein provided,
in such principal amounts and from such maturities as the City shall determine and by
lot within a single maturity, on , 20_ and on any date thereafter, at a
redemption price equal to the principal amount thereof to be redeemed plus, if such
bond is to be redeemed during any period (both dates inclusive) shown in the following
table, the applicable redemption premium, expressed as a percentage of such principal
amount, set forth opposite such period:
Redemption Period Redemption Premium
-12-
The bonds of such series maturing in the years 20_, 20_ and 20, (the "Term
Bonds") are subject to mandatory redemption, in part and by lot, on December 1 of the
years and in the respective principal amounts set forth in the following tables, by the
application of sinking fund installments, at a redemption price equal to the principal
amount thereof to be redeemed:
20_ Term Bonds
Year Principal Amount
20, Term Bonds
Year Principal Amount
20 Term Bonds
Year Principal Amount
20 $ - ,000 20 $ ,000 20 $ ,000
20 ,000 20 ,000 20 1000
20 ,000 20 ,000 20 000
Notice of the redemption of bonds will be mailed not less than 30 days nor more
than 60 days prior to the date fixed for such redemption to the registered owners of
bonds to be redeemed at their last addresses appearing on such registration books.
The bonds or portions thereof specified in said notice shall become due and payable at
the applicable redemption price on the redemption date therein designated, and if, on
the redemption date, moneys for payment of the redemption price of all the bonds or
portions thereof to be redeemed, together with interest to the redemption date, shall be
available for such payment on said date, and if notice of redemption shall have been
mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt
thereof by any registered owner) then from and after the redemption date interest on
such bonds or portions thereof shall cease to accrue and become payable.
This bond is transferable only upon such registration books by the registered
owner hereof in person, or by his attorney duly authorized in writing, upon surrender
hereof at the office of the Bond Registrar together with a written instrument of transfer
satisfactory to the Bond Registrar duly executed by the registered owner or by his duly
•
•
•
-13-
authorized attorney, and thereupon a new registered bond or bonds, in the authorized
denominations of $5,000 or any integral multiple thereof and of the same aggregate
principal amount, maturity and interest rate as this bond shall be issued to the
transferee in exchange therefor. In like manner, this bond may be exchanged for an
equal aggregate principal amount of bonds of the same maturity and interest rate and of
any of such authorized denominations. The City or the Bond Registrar may make a
charge sufficient for the reimbursement of any tax, fee or other governmental charge
required to be paid with respect to the transfer or exchange of this bond. No other
charge shall be made for the privilege of making such transfer or exchange. The City
and the Bond Registrar may treat and consider the person in whose name this bond is
registered as the absolute owner hereof for the purpose of receiving payment of, or on
40 account of, the principal, premium, if any, and interest due hereon and for all other
purposes whatsoever.
E
This bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been duly executed by the Bond
Registrar.
It is hereby certified, recited and declared that all acts, conditions and things
required to be done, exist and be performed precedent to and in the issuance of this
bond in order to make it a legal, valid and binding obligation of the City have been done,
exist and have been performed in regular and due time, form and manner as required
by law, and that the series of bonds of which this bond is one, together with all other
indebtedness of the City, is within every debt or other limit prescribed by law.
-14-
IN WITNESS WHEREOF, the City of Evanston has caused this bond to be
executed in its name and on its behalf by the manual or facsimile signature of its Mayor,
and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise
reproduced hereon and attested by the manual or facsimile signature of its City Clerk.
Dated:
CERTIFICATE OF AUTHENTICATION
This bond is one of the General
Obligation Bonds, Series 2006,
described in the within mentioned
Ordinance.
WELLS FARGO BANK, N.A., as Bond
Registrar
Authorized Signer
CITY OF EVANSTON
Mayor
Attest:
City
•
•
-15-
ASSIGNMENT
• For value received the undersigned sells, assigns and transfers unto
the within bond and hereby irrevocably constitutes and appoints
attorney to transfer the said bond on the books kept for registration thereof, with full
power of substitution in the premises.
Dated
Signature Guarantee:
•
•
-16-
Section 12. Levy and Extension of Taxes. (A) For the purpose of providing
the money required to pay the interest on the 2006 Bonds when and as the same falls
due and to pay and discharge the principal thereof (including sinking fund installments)
as the same shall mature, there is hereby levied upon all the taxable property in the
City, in each year while any of the 2006 Bonds shall be outstanding, a direct annual tax
sufficient for that purpose in addition to all other taxes, as follows:
Tax Levy Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
A Tax Sufficient to Produce
$1,250,000_
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
1,250,000
(B) Interest or principal coming due at any time when there shall be
insufficient funds on hand to pay the same shall be paid promptly when due from current
funds on hand in advance of the collection of the taxes herein levied; and when said
taxes shall have been collected, reimbursement shall be made to the said funds in the
amounts thus advanced.
•
•
•
-17- -
(C) After the sale of the 2006 Bonds and the execution of the Bond Order, an
is executed copy of the Bond Order and a copy of this ordinance, certified by the City
Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be
filed. with the County Clerk of Cook County, Illinois, who is hereby directed to ascertain
the rate per cent required to produce the aggregate tax hereinbefore provided to be
levied in the years 2006 to 2025, inclusive, and subject to adjustment as provided in
paragraph (D) of this Section, to 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
purposes of the City, and in said years such annual tax shall be levied and collected in
like manner as taxes for general corporate purposes for said years are levied and
collected and, when collected, such taxes shall be used for the purpose of paying the
principal of and interest on the 2006 Bonds as the same become due and payable.
(D) In the event that 2006 Bonds are to be issued in principal amounts and
bearing interest such that for any tax levy year an amount less than that set forth in
paragraph (A) of this Section is required to be produced to pay when due the principal of
and interest on the 2006 Bonds, then the Finance Director is authorized and directed to
file with the aforesaid County Clerk, on or prior to the date of delivery of the 2006
Bonds, a direction for abatement of taxes specifying the exact amount of taxes to be
levied to produce the required amounts for each of the various tax levy years.
Section 13. Application of Proceeds. The proceeds of sale of the 2006 Bonds
shall be applied as follows:
1. To the Capitalized Interest Account of the 2006 Debt Service Fund,
• the amount of such proceeds to be applied for the payment of interest on the
2006 Bonds (the "Capitalized Interest Deposit").
M
2. To the 2006 Construction Fund established by this ordinance, the •
amount of such proceeds of sale remaining after making the foregoing payments.
Section 14. Debt Service Fund. Moneys derived from taxes levied pursuant to
paragraph (A) of Section 12 of this ordinance are appropriated and set aside for the sole
purpose of paying principal of and interest on the 2006 Bonds when and as the same
come due. All of such moneys, and all other moneys to be used for the payment of the
principal of and interest on the 2006 Bonds, shall be deposited in the "2006 Debt
Service Fund," which is hereby established as a special fund of the City and shall be
administered as a bona fide debt service fund under the Internal Revenue Code of
1986. The Capitalized Interest Deposit and any accrued interest received upon the
issuance of the 2006 Bonds shall be deposited in the Capitalized Interest Account of the
2006 Debt Service Fund. On the date of issuance of the 2006 Bonds, the City shall 40
deposit into the 2006 Debt Service Fund such additional amount, if any, as shall be
required so that the aggregate sum held therein shall be sufficient to pay the principal, if
any, of and interest on the 2006 Bonds that will become due and payable on
December 1, 2006.
Section 15. Pledges Securing 2006 Bonds. The moneys deposited or to be
deposited into the 2006 Debt Service Fund, including the tax receipts derived from the
taxes levied pursuant to paragraph (A) of Section 12 of this ordinance, are pledged as
security for the payment of the principal of and interest on the 2006 Bonds. This pledge
is made pursuant to Section 13 of the Local Government Debt Reform Act and shall be
valid and binding from the date of issuance of any of the 2006 Bonds. All such tax
receipts and the moneys held in the 2006 Debt Service Fund shall immediately be •
subject to the lien of such pledge without any physical delivery or further act and the lien
-19-
of such pledge shall be valid and binding as against all parties having claims of any kind
in tort, contract or otherwise against the City irrespective of whether such parties have
notice thereof.
Section 16. Construction Fund. The "2006 Construction Fund" is hereby
established as a special fund of the City. Moneys in the 2006 Construction Fund shall
be used for the purpose of paying costs of the 2006 Projects and the payment of costs
of issuance of the 2006 Bonds, but may hereafter be reappropriated and used for other
purposes if such reappropriation is permitted under Illinois law and will not adversely
affect the exclusion from gross income for federal income tax purposes of interest on
the 2006 Bonds.
Section 17. Investment Regulations. No investment shall be made of any
moneys in the 2006 Debt Service Fund or the 2006 Construction Fund except in
• accordance with the tax covenants set forth in Section 18 of this ordinance. All income
derived from such investments in respect of moneys or securities in any Fund shall be
credited in each case to the Fund in which such moneys or securities are held.
Any moneys in any Fund that are subject to investment yield restrictions may be
invested in United States Treasury Securities, State and Local Government Series,
pursuant to the regulations of the United States Treasury Department, Bureau of Public
Debt, or in any tax-exempt bond that is not an "investment property" within the meaning
of Section 148(b)(2) of the Internal Revenue Code of 1986. The Finance Director and
her designated agents are hereby authorized to submit, on behalf of the City,
subscriptions for such United States Treasury Securities and to request redemption of
• such United States Treasury Securities.
-20-
Section 18. Tax Covenants. The City shall not take, or omit to take, any action 0
lawful and within its power to take, which action or omission would cause interest on any
2006 Bond to become subject to federal income taxes in addition to federal income
taxes to which interest on such 2006 Bond is subject on the date of original issuance
thereof.
The City shall not permit any of the proceeds of the 2006 Bonds, or any facilities
financed with such proceeds, to be used in any manner that would cause any 2006
Bond to constitute a "private, activity bond" within the meaning of Section 141 of the
Internal Revenue Code of 1986.
The City shall not permit any of the proceeds of the 2006 Bonds or other moneys
to be invested in any
manner that
would cause
any 2006 Bond to constitute
an
"arbitrage bond" within
the meaning
of Section 148
of the Internal Revenue Code
of
•
1986 or a "hedge bond" within the meaning of Section 149(g) of the Internal Revenue
Code of 1986.
The City shall comply with the provisions of Section 148(f) of the Internal
Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic
intervals to the United States of America.
Section 19. Bond Registrar. The City covenants that it shall at all times retain
a bond registrar with respect to the 2006 Bonds, that it will maintain at the designated
office of such bond registrar a place where 2006 Bonds may be presented for payment
and registration of transfer or exchange and that it shall require that the bond registrar
maintain
proper registration books
and
perform the
other duties and obligations
.
imposed
upon the bond registrar by
this
ordinance in
a manner consistent with the
standards, customs and practices of the municipal securities business.
-21-
The bond registrar shall signify its acceptance of the duties and obligations
• imposed upon it by this ordinance b executing the certificate of authentication on an Y g y
2006 Bond, and by such execution the bond registrar shall be deemed to have certified
to the City that it has all requisite power to accept, and has accepted such duties and
obligations not only with respect to the 2006 Bond so authenticated but with respect to
all the 2006 Bonds. The bond registrar is the agent of the City and shall not be liable in
connection with the performance of its duties except for its own negligence or default.
The bond registrar shall, however, be responsible for any representation in its certificate
of authentication on the 2006 Bonds.
The City may remove the bond registrar at any time. In case at any time the
bond registrar shall resign or shall be removed or shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of
the bond registrar, or of its property, shall be appointed, or if any public officer shall take
charge or control of the bond registrar or of its property or affairs, the City covenants
and agrees that it will thereupon appoint a successor bond registrar. The City shall mail
-notice of any such appointment made by it to each registered owner of 2006 Bonds
within twenty days after such appointment.
Section 20. Book -Entry System. In order to provide for the initial issuance of
the 2006 Bonds in a form that provides for a system of book -entry only transfers, the
ownership of one fully registered 2006 Bond for each maturity, in the aggregate principal
amount of such maturity, shall be registered in the name of Cede & Co., as a nominee
of The Depository Trust Company, as securities depository for the 2006 Bonds. The
Finance Director is authorized to execute and deliver on behalf of the City such letters
-22-
to, or agreements with, the securities depository as shall be necessary to effectuate
such book -entry system.
•
In case at any time the securities depository shall resign or shall become
incapable of acting, then the City shall appoint a successor securities depository to
provide a system of book -entry only transfers for the 2006 Bonds, by written notice to
the predecessor securities depository directing it to notify its participants (those persons
for whom the securities depository holds securities) of the appointment of a successor
securities depository.
If the system of book -entry only transfers for the 2006 Bonds is discontinued,
then the City shall issue and the bond registrar shall authenticate, register and deliver to
the beneficial owners of the 2006 Bonds, bond certificates in replacement of such
beneficial owners' beneficial interests in the 2006 Bonds, all as shown in the records
maintained by the securities depository.
•
Section 21. Continuing Disclosure. For the benefit of the beneficial owners of
the 2006 Bonds, the City covenants and agrees to provide an annual report containing
certain financial information and operating data relating to the City and to provide
notices of the occurrence of certain enumerated events, if material.
The annual report shall be filed with each Nationally Recognized Municipal
Securities Information Repository and with the Illinois state information depository, if
any, within 210 days after the close of the City's fiscal year. The information to be
contained in the annual report shall consist of the annual audited financial statement of
the City and such additional information as noted in the Official Statement under the
caption "Continuing Disclosure." Each annual audited financial statement will conform 0
to generally accepted accounting principles applicable to governmental units and will be
-2 3-
prepared in accordance with standards of the Governmental Accounting Standards
• Board. If the audited financial statement is not available then an unaudited financial
statement shall be included in the annual report and the audited financial statement
shall be filed within 30 days after it becomes available.
The City also covenants and agrees, for the benefit of the beneficial owners of
the 2006 Bonds, to provide timely notice to each Nationally Recognized Municipal
Securities Information Repository and to the Illinois state information depository, if any,
of any failure of the City to file any such annual report within the 210 day period and of
the occurrence of any of the following events with respect to the 2006 Bonds, if material:
(1) principal and interest payment delinquencies; (2) non-payment related defaults;
(3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
•
(5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions or events affecting the tax-exempt status of the 2006 Bonds; (7) modifications
to rights of bondholders; (8) bond calls; (9) defeasances; (10) release, substitution or
sale of property securing repayment of the 2006 Bonds; and (11) rating changes.
It is found and determined that the City has agreed to the undertakings contained
in this Section in order to assist participating underwriters of the 2006 Bonds and
brokers, dealers and municipal securities dealers in complying with Securities and
Exchange Commission Rule 15c2-12(b)(5) promulgated under the Securities Exchange
Act of 1934. The Finance Director is authorized and directed to do and perform, or
cause to be done or performed, for or on behalf of the City, each and every thing
necessary to accomplish the undertakings of the City contained in this Section for so
-24-
long as Rule 15c2-12(b)(5) is applicable to the 2006 Bonds and the City remains an
"obligated person" under the Rule with respect to the 2006 Bonds. •
The undertakings contained in this Section may be amended by the City upon a
change in circumstances that arises from a change in legal requirements, change in
law, or change in the identity, nature or status of the obligated person, or type of
business conducted, provided that (a) the undertaking, as amended, would have
complied with the requirements of Rule 15c2-12(b)(5) at the time of the primary offering,
after taking into account any amendments or interpretations of the Rule, as well as any
change in circumstances and (b) in the opinion of nationally recognized bond counsel
selected by the City, the amendment does not materially impair the interests of the
beneficial owners of the 2006 Bonds.
Section 22. ®efeasance and Payment of 2006 Bonds. (A) If the City shall
•
pay or cause to be paid to the registered owners of the 2006 Bonds, the principal,
premium, if any, and interest due or to become due thereon, at the times and in the
manner stipulated therein and in this ordinance, then the pledge of tax receipts,
securities and funds hereby pledged and the covenants, agreements and other
obligations of the City to the registered owners and the beneficial owners of the 2006
Bonds shall be discharged and satisfied.
(B) Any 2006 Bonds or interest installments appertaining thereto, whether at
or prior to the maturity or redemption date of such 2006 Bonds, shall be deemed to
have been paid within the meaning of paragraph (A) of this Section if (1) in case any
such 2006 Bonds are to be redeemed prior to the maturity thereof, there shall have
been taken all action necessary to call such 2006 Bonds for redemption and notice of 0
such redemption shall have been duly given or provision shall have been made for the
-25-
giving of such notice, and (2) there shall have been deposited in trust with a bank, trust
• company or national banking association acting as fiduciary for such purpose either
(i) moneys in an amount which shall be sufficient, or (ii) "Federal Obligations" as defined
in paragraph (C) of this Section, the principal of and the interest on which when due will
provide moneys which, together with any moneys on deposit with such fiduciary at the
same time for such purpose, shall be sufficient, to pay when due the principal of,
redemption premium, if any, and interest due and to become due on, such 2006 Bonds
on and prior to the applicable maturity date or redemption date thereof.
(C) As used in this Section, the term "Federal Obligations" means (i) non -
callable, direct obligations of the United States of America, (ii) non -callable and non -
prepayable, direct obligations of any agency of the United States of America, which are
unconditionally guaranteed by the United States of America as to full and timely
• payment of principal and interest, (iii) non -callable, non -prepayable coupons or interest
installments from the securities described in clause (i) or clause (ii) of this paragraph,
which are stripped pursuant to programs of the Department of the Treasury of the
United States of America, or (iv) coupons_ or interest installments stripped from bonds of
the Resolution Funding Corporation.
Section 23. Ordinance to Constitute a Contract. The provisions of this
ordinance shall constitute a contract between the City and the registered owners of the
2006 Bonds. Any pledge made in this ordinance with respect to the 2006 Bonds and
the provisions, covenants and agreements herein set forth to be performed by or on
behalf of the City shall be for the equal benefit, protection and security of the owners of
• any and all of the 2006 Bonds. All of the 2006 Bonds, regardless of the time or times of
their issuance, shall be of equal rank without preference, priority or distinction of any of
-26-
the 2006 Bonds over any other thereof except as expressly provided in or pursuant to
this ordinance. This ordinance shall constitute full authority •
t so Y for the issuance of the 2006
Bonds and to the extent that the provisions of this ordinance, conflict with the provisions
of any other ordinance or resolution of the City, the provisions this ordinance shall
control. 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.
In this ordinance, reference to an officer of the City includes any person holding
such office on an interim basis.
Section 24. Publication. The City Clerk is hereby authorized and directed to
publish this ordinance in pamphlet form and to file copies thereof for public inspection in •
her office.
•
-27-
Section 25. Effective Date. This ordinance shall become effective upon its
• passage and approval.
Passed and adopted this 26th day of June, 2006, by roll call vote as follows:
Ayes:
Nays:
l
Approved: June 26, 2006
Yyor
+/
• Herbert D. Hill, First Assistant
First Assistant Corporation Counsel
Published in pamphlet form: June 27, 2006
(SEAL)
Attest:
KU'{1/ Iv
City Clerk
•
ME
CERTIFICATE
I, Mary P. Morris, City Clerk of the City of Evanston, Illinois, hereby certify that
the foregoing ordinance entitled: "Ordinance Authorizing the Issuance of Not to Exceed
$11,000,000 General Obligation Bonds, Series 2006, of the City of Evanston, Illinois," is
a true copy of an original ordinance that was duly passed and adopted by the recorded
affirmative votes of a majority of the members of the City Council of the City at a
meeting thereof that was duly called and held at 8:30 p.m. on June 26, 2006, in the
Council Chambers at the Municipal Building, 2100 Ridge Avenue, in the City, and at
which a quorum was present and acting throughout, and that said copy has been
compared by me with the original ordinance signed by the Mayor on June 26, 2006, and
thereafter published in pamphlet form on June 27, 2006 and recorded in the Ordinance
Book of the City and that it is a correct transcript thereof and of the whole of said
ordinance, and that said ordinance has not been altered, amended, repealed or
revoked, but is in full force and effect.
I further certify that the agenda for said meeting included the ordinance as a
matter to be considered at the meeting and that said agenda was posted at least
48 hours in advance of the holding of the meeting in the manner required by the Open
Meetings Act, 5 Illinois Compiled Statutes 120.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City, this. `1 day of
a_I
(SEAL)
CH102_60465124 1_335953_00001 5/16/2006 10:58 AM
, 2006.
City CIe[k
•
0
-29-