HomeMy WebLinkAboutORDINANCES-2000-068-O-00•
ORDINANCE NUMBER 68-0-00
AN ORDINANCE providing for the issuance of General Obligation
• Variable Rate Demand Bonds, Series 2000A (Maple Street
Project), Taxable Series 2000B (Maple Street Project), Series
2000C (Recreation Center Project), and Series 2000D (Capital
Improvement Projects), 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 of and interest on said bonds.
Adopted by the City Council
on the 26th day of June 2000.
Published in Pamphlet Form by the
Authority of the City Council on the
27th day of June 2000.
ORDINANCE NUMBER 68-0-00
AN ORDINANCE providing for the issuance of General Obligation
Variable Rate Demand Bonds, Series 2000A (Maple Street
Project), Taxable Series 2000B (Maple Street Project), Series
2000C (Recreation Center Project), and Series 2000D (Capital
Improvement Projects), 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 of and interest on said bonds.
WHEREAS
A. The City of Evanston, Cook County, 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.
•
B. 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 40 years from the time it is incurred without prior referendum approval.
C. The City Council (hereinafter, the "Corporate Authorities") of the City has adopted
no ordinance, resolution, order, or motion or provided any City Code provision which restrict or
limit the exercise of the home rule powers of the City in the issuance of general obligation bonds
without referendum for corporate purposes or which provides any special rules or procedures for
the exercise of such power.
D. The City, by its Corporate Authorities, has previously made and does now affirm
the determination that it is desirable and in the public interest of the City to provide funds to pay
the costs of a municipal garage to be located on Maple Street (the "Maple Street Project'), the
relocation and construction of a recreation center serving senior citizens and for other purposes •
(the "Recreation Center Project"), and the acquisition and construction of various municipal
• capital improvements throughout the City in accordance with the 2000-2005 Capital
Improvement Plan previously approved by the Corporate Authorities (the "Capital Improvement
Projects) " (collectively, all of said projects may be referred to as the "Projects ").
E. It is now deemed advisable and necessary that bonds, as hereinafter provided, be
issued for the purpose of financing the Projects (such definition of "Projects" to include all of
the respective costs thereof, and without limitation, costs of the issuance of the Bonds,
capitalized interest, and related expenses).
F. The Corporate Authorities do hereby determine that it is advisable and in the best
interests of the City to borrow $37,100,000 at this time for the purpose of paying the costs of the
Projects and, in evidence of such borrowing, to issue full faith and credit bonds of the City in the
principal amount of $37,100,000.
Now THEREFORE Be It Ordained by the City Council of the City of Evanston, Cook
• County, Illinois, in the exercise of its home rule powers, as follows:
•
Section 1. Documents Effecting the Issuance of the Bonds. In addition to this
Ordinance, the following enumerated documents, substantially in the forms as attached hereto
and as identified by Exhibit designation, relate and are integral to the issuance of the Bonds:
-2-
DOCUMENT HEREIN REFERRED TO EXHIBIT •
Indenture of Trust Indenture A
Standby Bond Purchase Liquidity Facility B
Agreement
(Bond) Purchase Contract Purchase Contract C
Remarketing Agreement Remarketing Agreement D
Official Statement Official Statement E
Tax Exemption Certificate TECA F
and Agreement
(such documents to be referred to, collectively, as the "Basic Bond Documents"). Each of the
Basic Bond Documents, in substantially the form as shown on such exhibits, is hereby in all
respects approved; the officers of the City shown as signatory to each of the Basic Bond •
Documents or, if none are so shown, any of the Authorized Officers as said term is defined in the
Indenture (the "Authorized Officers") is hereby authorized, empowered, and directed to execute,
and the City Clerk of the City is authorized, empowered, and directed to attest and to affix the
official seal of the City to, as called for, each of the Basic Bond Documents in the name of, for
and on behalf of the City, and thereupon to cause the Basic Bond Documents to be delivered to
the other parties thereto, in substantially the same form as presented or with such changes therein
as the signatory officer(s) shall approve, their execution thereof to constitute conclusive evidence
of their approval of any and all changes or revisions therein from the form of the Basic Bond
Documents before the Corporate Authorities; when each of such Basic Bond Documents is
executed, attested, sealed, and delivered on behalf of the City, as applicable and as hereinabove
provided, each of such Basic Bond Documents will be binding on the City; from and after the
execution and delivery of each of such Basic Bond Documents, the officers, employees, and
-3-
E
•
•
agents 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 each of such Basic Bond Documents as executed; and each of such Basic Bond
Documents shall constitute, and hereby is made, a part of this Ordinance, and a copy of each of
such Basic Bond Documents shall be placed in the official records of the City, and shall be
available for public inspection at the office of the City Clerk.
Each of the other parties to the Basic Bond Documents, to be entitled to the contractual
rights, duties, remedies, and fees or other compensation as indicated thereby, are hereby named
and approved, as follows:
DOCUMENT OTHER PARTY OR PARTIES
Indenture American National Bank and Trust Company of Chicago
Liquidity Facility Bank of America, N.A.
Purchase Contract Banc One Capital Markets, Inc.
Remarketing Agreement Banc One Capital Markets, Inc.
TECA American National Bank and Trust Company of Chicago
(for limited purposes)
Sale of the Bonds pursuant to the Purchase Contract is hereby authorized.
Section 2. Definitions. The terms defined in the form of Indenture shall, for all
purposes of this Ordinance, have the meanings therein specified; and the words and terms used in
this Ordinance shall have the meanings specified herein, unless, in either case, the context or use
clearly indicates another or different meaning is intended. Definitions in the preambles are
incorporated in this Ordinance; further definitions are as follows:
"Ordinance" means this Ordinance, numbered and adopted on the date as set forth on the
title page hereof.
-4-
"Pledged Taxes" means the taxes levied on the taxable property within the City to pay •
principal of and interest on the Bonds as made in Section 6 hereof.
"Tax-exempt" means, with respect to certain of the Bonds, the status of interest paid and
received on such Bonds as not includable 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 certain
corporations and in computing the "branch profits tax" imposed on certain foreign corporations.
Section 3. Incorporation of Preambles. The Corporate Authorities hereby find that the
recitals contained in the preambles to this Ordinance are true, correct, and complete and do
incorporate them into this Ordinance by this reference.
Section 4. Determination To Issue Bonds. It is necessary and in the best interests of the
City to provide for the Projects, 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 for a proper public purpose or purposes and is in the public interest
and is authorized pursuant to the Act; and these findings and determinations shall be deemed
conclusive.
Section S. Bond Details. For the purpose of providing for the payment of the costs of
the Projects and to pay all related costs and expenses incidental thereto, there shall be issued and
sold the Bonds in the principal amount of $37,100,000. The Bonds shall be issued in four series,
all being General Obligation Variable Rate Demand Bonds, as follows:
•
SIB
•
CJ
•
DEFINED
PROJECT NAME
Maple Street Project
Maple Street Project
Recreation Center Project
BONDS
DEFINED BONDS SERIES AMOUNT ($)
Series 2000A 19,000,000
Taxable Series 2000B 2,700,000
Series 2000C 10,400,000
Capital Improvement Projects Series 2000D 5,000,000
The terms and provisions of the Bonds are as contained in the Indenture, or for Bonds in the
event they are "Bank Bonds" as such term is defined in the Liquidity Facility, as further set forth
in the Liquidity Facility.
Section 6. Tax Levy. For the purpose of providing funds required to pay the principal
of and interest on the Bonds, 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 City, in addition to
all other taxes, the direct annual taxes for each series and collectively as follows(collectively, the
"Pledged Taxes"):
��
LEVY
FOR
THE A TAX SUFFICIENT TO PAY INTEREST ON AND
YEAR PRINCIPAL OF THE BONDS SO AS TO PRODUCE THE DOLLAR SUM OF
€
........................
p................................................q................................................q................................................;................................................
SERIES 2000A
SERIES 2000B SERIES 2000C
€
SERIES 2000D
2000
.... ....
-0-
_............................................ ....
-0-
_............................................
...........................................
151608.89
.............................................
464177.89
2001
1,325,777.78
186 900
832 000.00
,
500 000.00
..............p................................................p..............................................p............
2002
.............._................................................_....
1,520,000.00
270,000
......................................
_............ 832,000.00 5922000.00
.................................
2003
...............
1,520,000.00
q................................................
€ 270?000
q..............................................
€ 832 000.00
p........................................ .......................?......................
576 000.00
.2004
1,520,000.00
_.............................................._....................
270,000
.................
_...........................................
832,000.00
560,000.00
................................
2005
.........0
1,520,000.00
................................................0................................................
€ 270,000
832 000.00
544 000.00
2006
1,520,000.00
270,000
_.............................................
832,000.00
528,000.00
_ 2007
..........................................................p........................
1,520,000.00
270,000 1
......................q............................................
................0............
832 000.00 512,000.00
. .............................................
2008 ....._
1 1,520,000.00
................................................_........
270,000
.....................
832,000.00
496,000.00
2009
...............
1,520,000.00
p................................................
_....................I......................................................
'
1 270 000 1 832 000.00 480 000.00
p................................................
2010
.............._................................................_.........................'.....9...........
1,520,000.00
270,000
p.....................
1
_.........................................
........................................................................
832,000,00
464,000.00
............................
..'..
. -.
2011
........
1,5209000.00
p................................................
's 270 000
1
'..
832 000.00
448 000.00
._....2012
..............1,520?000:00__.._..__.......___.__.270?000
p................................................ p................................................................................................
............ _.....................................
.832?000.00
:...
532 000.00
1....2013.......
1.,520,000.00.......
................ 270,000 1
................q........................................................................
832,000.00
€
................................
08,000.00
.. .........
2014 ....._
1,520,000.00
................................................_......
1 270?000
.................
...........................................
832,000.00
484,000.00
2015
............q
€ 1,520,000.00
................................................q................................................
1 270,000
................................
832 000.00 460 000.00
..............?.. ,
2016
1,520,000.00
_.................................................................................................................................................€.......................................
1 270,000
832,000.00
436,000.00
0.....
1
2017
...............
€ 1,520,000.00
p................................................
270,000
p................................................
1
q............................
832,000.00
0................;.......................................
412,000.00
0.....
2018
..............
1 1,520,000.00
_................................................
1 270,000
_.............. ..............................
832,000.00
388,000.00
2019
............0
1,520,000.00
................................................
€ 270,000 832 000.00
q................................................ q...............................................;...............................................
464 000.00
......2020...........
20,520,000:00..----
_-___-_ _ 2,970,00
1
11,232,000.00
1
432,000.00
........................ 0................................................ 0................................................. ................................................ :................................................
TOTALS . 49,205,777.78 8,016,900 1 27,191,608.89 10,280,177.89
-- -- -- -- -- --- -----------
•
TO AND
INCLUSIVE OF
DEC I OF THE
YEAR
2001
2002
2003
2006
..........
2007
2008
2009
2010.
2011
20121
2013
2014
2015
2016
20.1.7
........
201.8
..........
2019
2020
2021
The Pledged Taxes and other moneys on deposit in the Bond Fund and allocable to the Bonds
shall be applied to pay principal of and interest on the Bonds. Interest or principal coming due at
any time when there are insufficient funds on hand from the Pledged Taxes to pay the same shall
be paid promptly when due from current funds on hand in advance of the collection of the •
-7-
• Pledged Taxes herein levied; and when the Pledged 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 taxes levied in this Section.
The City and its officers will comply with all present and future applicable laws in order to
assure that the Pledged Taxes may be permitted to be levied, extended, and collected as provided
herein and deposited into the Bond Fund.
Section 7. Security for the Bonds; Abatements. The Bonds are a general obligation of
the City, for which the full faith and credit of the City are irrevocably pledged, and are payable
from the levy of the Pledged Taxes on all of the taxable property in the City, without limitation
as to rate or amount. Further, the obligations of the City with respect to the payment of costs,
• fees, expenses, and other amounts due under the Indenture, the Liquidity Facility, the Bond
Purchase Agreement, and the Remarketing Agreement are a general obligation of the City for
which the full faith and credit of the City are irrevocably pledged. In each year, on or before the
deadline for the filing of an abatement of taxes levied by the City for such year, the City by its
Corporate Authorities may adopt an ordinance abating taxes for such year only upon a finding
that sufficient funds of the City will be on hand and available to pay principal of and interest on
the Bonds during the period otherwise provided for from such levy.
Section & Filing with County Clerk. Promptly, when this Ordinance becomes
effective, a copy hereof, certified by the City Clerk of the City, shall be filed with the County
Clerk of the County of Cook, and the County Clerk shall in and for each of the years 2000 to
2020, inclusive, ascertain the rate percent required to produce the aggregate taxes provided to be
is levied in each of said years and in said County; and the County Clerk shall extend the same for
El
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 in said County, and in said years such annual taxes
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 9. Creation of Funds and Appropriations.
A. The Bond Fund and three Project Funds are created in the Indenture.
B. The Pledged Taxes or other available funds of the City to be used to pay principal of
or interest on the Bonds shall either be deposited into the Bond Fund and used solely and only as
provided in Section 6 of this Ordinance or be used to reimburse a fund or account from which
advances to the Bond Fund may have been made to pay principal of or interest on the Bonds
prior to receipt of Pledged Taxes. The City hereby pledges, as equal and ratable security for the
Bonds, all present and future proceeds of the Pledged Taxes for the sole benefit of the registered •
owners of the Bonds.
C. Proceeds of the Bonds shall be applied as provided in Sections 2.13, 5.01, and 5.02
of the Indenture.
Section 10. Tax Covenants. The provisions of this section shall apply only to the Tax
Exempt Series of Bonds as defined in the Indenture and, further, is limited with respect to the
Series 2000A Bonds to only those bonds of such series as remain Tax-exempt and are not
converted to Taxable Bonds as provided in the Indenture (all of such bonds while Tax-exempt
being the "Series 2000 Tax-exempt Bonds"). The City hereby covenants that it will not take any
action, omit to take any action, or permit the taking or omission of any action within its control
(including, without limitation, making or permitting any use of the proceeds of the Tax-exempt
Bonds) if taking, permitting, or omitting to take such action would cause any of the Tax-exempt •
W
0 to be an arbitrage bond or a private activity bond within the meaning of the Code or would
otherwise cause the interest on such Tax-exempt Bonds to be included in the gross income of the
recipients thereof for federal income tax purposes. The City acknowledges that, in the event of
an examination by the Internal Revenue Service of the exemption from Federal income taxation
for interest paid on the Tax-exempt Bonds, under present rules, the City is treated as the
"taxpayer" in such examination and agrees that it will respond in a commercially reasonable
manner to any inquiries from the Internal Revenue Service in connection with such an
examination. 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 comply with all
representations, covenants, and assurances contained in the certificates or agreements as may be
prepared by counsel approving the Bonds and executed by an official of the City; (c) to consult
• with such counsel and to comply with such advice as may be given, to the extent permitted by
law; (d) to file such forms, statements, and supporting documents as may be required and in a
timely manner; and (e) 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. The
execution and delivery of a tax exemption certificate and agreement is hereby approved.
Section 11. Reimbursement. None of the proceeds of the Tax -Exempt Bonds will be
used to pay, directly or indirectly, in whole or in part, for an expenditure that has been paid by
the City prior to the date hereof except "preliminary expenditures," as set forth in the Tax
Exemption Certificate and Agreement to be delivered by the City in connection with the issuance
of the Tax -Exempt Bonds, incurred prior to commencement of the Projects or expenditures for
which an intent to reimburse has been properly declared under Treasury Regulations
• Section 1.150-2. This Ordinance is in itself a declaration of official intent under Treasury
Regulations Section 1.150-2 as to all costs of the Projects paid after the date falling 60 days prior •
to the date of adoption hereof and prior to issuance of the Tax -Exempt Bonds.
Section 12. Continuing Disclosure.
A. The City shall make all required filings and reports so that all requirements of
Rule 15c2-12(b)(5) of the United States Securities and Exchange Commission, as amended from
time to time, are met with respect to the Bonds.
B. Each year, the City shall provide annual financial information concerning the Bonds
to each nationally recognized municipal securities information repository and to any entity
designated by the State of Illinois as a state information depository for purposes of Rule 15c2-
12(b)(5). A copy of the annual financial information shall also be provided to the Trustee under
the Indenture. The annual financial information shall be so provided within 210 days after the
end of the City's fiscal year, beginning with the fiscal year ending the last day of February 2001.
Copies of the annual financial information shall also be made available to any Bondholder or •
Beneficial Owner of the Bonds (as defined in the Indenture) upon request. The annual financial
information shall include the City's audited financial statements, prepared in accordance with
generally accepted accounting principles. The annual financial information shall also include the
financial and operating information of the type set forth in the Official Statement applicable upon
the remarketing of the Bonds with a period, as provided in the Indenture, of greater than nine
months.
The annual financial information may include any or all information by incorporating, by
specific reference, other documents which have been provided to each of those national
information repositories, and the state information depository, if any. If the incorporated
information is in an official statement, it must be available from the Municipal Securities
•
-11-
Rulemaking Board. The annual financial information shall include a notice of any change in the
City's fiscal year.
C. Upon the occurrence of any of the following events with respect to the Bonds, if
material, the City shall report the event in a timely manner to the state information depository, if
any, and either to each of the national information repositories described above or to the
Municipal Securities Rulemaking Board;
(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 tax-exempt status of the Bonds;
• (7) modifications to rights of owners of the Bonds;
(8) calls;
(9) defeasances;
(10) release, substitution, or sale of property securing repayment of the Bonds; or
(11) rating changes;
The City will give a copy of each such report to the Trustee under the Indenture. The City will
give notice in a timely manner to the Trustee under the Indenture, to the state information
depository, if any, and either to each of the national information repositories or to the Municipal
Securities Rulemaking Board of any failure timely to provide the annual financial information as
provided in this paragraph.
D. The undertaking of the City in this Section is a contract between the City and the
• Bondholders or Beneficial Owners of the Bonds. It may be enforced by any of the Bondholders
-12-
or Beneficial Owners of the Bonds. The remedy with respect to the City's compliance with its •
undertaking under this paragraph shall be to require compliance. This Section is for the purpose
of assisting the underwriter or Remarketing Agent in complying with Rule 15c2-12(b)(5) and is
for the benefit of the Bondholders or Beneficial Owners of the Bonds, and shall create no right in
anyone else. No violation by the City of any provision in this Section shall constitute any Event
of Default or a default under this Ordinance, the Indenture, or under the Act.
E. The obligation of the City under this Section shall end upon the Bonds being paid or
treated as paid as provided in the Indenture, except for the obligations to give notice under (C)(6)
and (C)(7) above.
F. The City may by ordinance amend this Section at any time to the extent and in the
manner allowed by Rule 15c2-12(b)(5), as amended from time to time, if the City's undertaking
under this Section, as amended, shall continue to comply with the Rule, the amendment to be
effective upon receipt by the City of an opinion of counsel, selected by the Trustee under the •
Indenture as having significant federal securities law expertise, to that effect. Any such
amendment shall be described in the next annual financial information.
G. The City may, from time to time, appoint or engage a dissemination agent, which
may be the Trustee under the Indenture, to assist it in carrying out its obligations under this
Section, and may discharge any such agent, with or without appointing a successor.
H. The obligations of the City in this Section to provide annual financial information
and reports of events as provided in (B) and (C) above shall not be in effect prior to conversion
of the Bonds to a Mode other than the Weekly Rate Mode, with a period of greater than nine
months, as provided in the Indenture.
•
-13-
iSection 13. Publication of Ordinance. A full, true and complete copy of this Ordinance
shall be published within ten days after passage in pamphlet form by authority of the Corporate
Authorities.
Section 14. 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: Aldermen Wynne, Kent, Moran, Engelman, Rainey, Feldman, Newman
NAYS: None
ABSENT: Aldermen Bernstein, Drummer
ADOPTED: June 26, 2000
APPROVE,w June 27, 2000 _.
Mayor, City of Evanston
Cook County, Illinois
Recorded In City Records: June 27, 2000.
Published in pamphlet form by authority of the Corporate Authorities on June 27, 2000.
ATTEST:
G �43
Cir y f vanston
Cook Co ,
=14-