HomeMy WebLinkAboutORDINANCES-1992-039-O-92ORDINANCE NO. 39-0-92
AN ORDINANCE authorizing and providing for the issue of
$3,600,000 Water Revenue Bonds, Series 1992, of the City of
Evanston, Cook County, Illinois, for the purpose of defraying the
cost of improving and extending the present waterworks system of
said City, prescribing all the details of said bonds, and providing
for the collection, segregation and distribution of the revenue of
the waterworks system of said City.
WHEREAS 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, accordingly, pursuant to the
provisions of the 1970 Constitution of the State of Illinois and particularly Article VII,
Section 6(a) thereof, the City is a home rule unit and as such may exercise any power or
perform any function pertaining to its government and affairs, including, but not limited to,
the power to tax and to incur debt; and
WHEREAS the City has adopted an updated Capital Improvement Plan for the years
• 1992 through 1996, and it is deemed by the City Council to be necessary and advisable and
in the best interests of the inhabitants of the City to obtain funds to pay a portion of the costs
of certain capital projects for the waterworks system of the City set forth in the Plan as
hereinafter noted and subject to amendment for such other waterworks system purposes as
the City Council may determine as hereinafter provided; and
WHEREAS it is deemed advisable, necessary and for the best interests of the City that
the improvements and extensions to its municipally -owned waterworks system be
constructed and installed, as shown in the Plan, together with all necessary pipes, valves,
fittings, connections, ancillary facilities and appurtenances, costs of engineering, legal and
financing services, and contingencies, and the total estimated cost of such project (the
"Project") is the sum of $3,600,000, plus the estimated amount of investment earnings
available prior to expenditure of said sum of $3,600,000, all in accordance with the Plan,
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heretofore approved by the City Council and now on file in the office of the City Clerk for
public inspection; and
WHEREAS the City does not have funds available for the purpose of paying the cost of
the Project, and it will be necessary for the City to borrow the principal sum of $3,600,000
and in evidence thereof issue its revenue bonds therefor; and
WHEREAS pursuant to the provisions of Division 129 of Article 11 of the Illinois
Municipal Code, as amended, and its powers as a home rule unit (collectively, such code and
constitutional powers being the "Act"), the City is authorized to issue water revenue bonds
for the purpose of paying the cost of said improvements and extensions; and
WHEREAS the City Council (the "City Council") of the City has heretofore issued
water revenue bonds, as follows:
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NAME AND
ORIGINAL
PURSUANT TO
CURRENTLY
DATE DATE
AMOUNT ($)
ORDINANCE
OUTSTANDING ($)
Water Revenue Bonds
May 1, 1964
4,080,000
40-0-64
660,000
Water Revenue Bonds,
Series 1973
May 1, 1974
1,400,000
76-0-72
125,000
Water Revenue Bonds,
Series 1980
May 1, 1980
5,000,000
25-0-80
4,350,000
Water Revenue Bonds,
Series 1982
October 1, 1982
5,000,000
99-0-82
4,300,000
Water Revenue Bonds,
Series 1984
December 1, 1984
3,300,000
119-0-84
2,700,000
• Water Revenue Bonds,
Series 1988
October 1, 1988
1,000,000
60-0-88
925,000
Water Revenue Bonds,
Series 1990
11,055,000
92-0-90
11,055,000
all which said currently
outstanding bonds aggregate the principal amount of $24,115,000
(such bonds being the "Currently
Outstanding Bonds"); and
WHEREAS pursuant to the provisions of said ordinances (the "Currently
Outstanding
Bond Ordinances") adopted by the City Council authorizing the Currently Outstanding
Bonds, while the Currently Outstanding Bonds are outstanding, no additional bonds shall be
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issued to share ratably and equally in the income derived from the operation of the water-
works system (as hereinafter more specifically defined, the "System") of the City unless the
revenues for the fiscal year then next preceding were sufficient to comply with the specific
restrictions set forth in each of the Currently Outstanding Bond Ordinances; and
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WHEREAS the City Council has caused an audit of the earnings of the System to be 0.
made for the last preceding fiscal year, and the City Council has heretofore determined and
does hereby determine that the earnings of the System for the last preceding fiscal year
comply with the covenants and restrictions provided for in and by each of the Currently
Outstanding Bond Ordinances, and that the earnings for such last preceding fiscal year are
sufficient to permit the issuance of $3,600,000 additional Water Revenue Bonds, Series
1992, herein provided for, to share ratably and equally in the income derived from the
operation of the System with the Currently Outstanding Bonds;
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. Definitions. The following words and terms used in this Ordinance
shall have the following meanings unless the context or use clearly indicates another or
different meaning is intended: •
"Act" means the Illinois Municipal Code, as supplemented and amended, and the home
rule powers of the City under Section 6 of Article VII of the Illinois Constitution of 1970.
In the event of conflict between the provisions of said code and home rule powers, the home
rule powers shall be deemed to supersede the provisions of said code.
"Bond" or "Bonds" means one or more, as applicable, of the $3,600,000 Waterworks
Revenue Bonds, Series 1992, authorized to be issued by this Ordinance.
"Bond Order" means the Bond Order as authorized to be executed by the Designated
Officials of the City as set forth in Section 16 of this Ordinance and by which the final terms
of the Bonds will be established.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence
the registration and transfer of the Bonds.
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"Bond Registrar" means American National Bank and Trust Company of Chicago, a
national banking association, with principal corporate trust offices located in Chicago,
Illinois, in its capacity as bond registrar and paying agent hereunder, or successor thereto or
designated hereunder.
"City" means the City of Evanston, Cook County, Illinois.
"City Council" means the City Council of the City.
"Code" means the Internal Revenue Code of 1986.
"Currently Outstanding Bonds" means the bonds described and defined as such in the
preambles hereto.
"Currently Outstanding Bond Ordinances" means the ordinances described and defined
as such in the preambles hereto.
"Designated Officials" means the City Manager and Finance Director of the City,
• acting together.
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"Financial Advisor" means R.V. Norene & Associates, Inc., the financial advisor to
the City for the sale of the Bonds.
"Fiscal Year" means a twelve-month period beginning January 1 of the calendar year
and ending on December 31 of such year or such other fiscal year as the City may select in
accordance with the limitations herein set forth.
"Maximum Annual Debt Service" means an amount of money equal to the highest
future principal and interest requirement of all Outstanding Bonds required to be deposited
into the Bond and Interest Account continued and maintained by this Ordinance in any Fiscal
Year, including and subsequent to the Fiscal Year in which the computation is made. Any
Outstanding Bonds required to be redeemed pursuant to mandatory redemption from said
Bond and Interest Account shall be treated as falling due on the date required to be
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redeemed (except in the case of failure to make any such mandatory redemption) and not on
the stated maturity date of such Outstanding Bonds.
"Net Revenues" means Revenues minus Operation and Maintenance Costs.
"Operation and Maintenance Costs" means all costs of operating, maintaining and
routine repair of the System, including wages, salaries, costs of materials and supplies, taxes,
power, fuel, insurance, purchase of water or sewage treatment services (including all pay-
ments by the City pursuant to long term contracts for such services to the extent provided in
such contracts); but excluding debt service, depreciation, or any reserve requirements; and
otherwise determined in accordance with generally accepted accounting principles for
municipal enterprise funds.
"Outstanding Bonds" means Currently Outstanding Bonds, Bonds and Parity Bonds
which are outstanding and unpaid; provided, however, such term shall not include, for
purposes of this Ordinance, any such Currently Outstanding Bonds, Bonds or Parity Bonds •
(i) which have matured and for which moneys are on deposit with proper paying agents, or
are otherwise properly available, sufficient to pay all principal thereof and interest thereon,
or (ii) the provision for payment of which has been made by the City by the deposit in an
irrevocable trust or escrow of funds, which may be invested in direct, full faith and credit
obligations of the United States of America, the principal of and interest on which will be
sufficient, with any funds left uninvested, to pay at maturity or. as called for redemption all
the principal of and interest on such Currently Outstanding Bonds, Bonds or Parity Bonds;
subject to, however, and provided, further, that this clause (ii) applies only to such of the
Currently Outstanding Bonds as shall have been authorized by ordinances providing for a
definition of "Outstanding" for such Bonds substantially as is provided herein for the Bonds.
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"Parity Bonds" means a bond or bonds or any other obligation to be issued subsequent
in time to the Bonds and which will share ratably and equally in the earnings of the System
with the Currently Outstanding Bonds and the Outstanding Bonds.
"Project" means the project described and defined as such in the preambles hereto.
"Rebate Fund" means the Rebate Fund authorized to be established and as defined in
Section 19 of this Ordinance.
"Revenues" means all gross revenues or income from whatever source derived from
the System, including (i) investment income; (ii) connection, permit and inspection fees and
the like; (iii) penalties and delinquency charges; (iv) capital development, reimbursement, or
recovery charges and the like; (v) annexation or pre -annexation charges insofar as desig-
nated by the City Council as paid for System connection or service; but excluding expressly
(a) non -recurring income from the sale of property of the System; (b) governmental or
is other grants; (c) advances or grants made from the City; and as otherwise determined in
accordance with generally accepted accounting principles for municipal enterprise funds.
"System" refers to all property, real, personal or otherwise owned or to be owned by
the City or under the control of the City, and used for waterworks purposes, and any and all
further extensions, improvements and additions to the System.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and
received thereon as not includible in the gross income of the owners thereof under the Code
for federal income tax purposes except to the extent that such interest will be taken into
account in computing an adjustment used in determining the alternative minimum tax for
certain corporations, in computing the environmental tax imposed on certain corporations
and in computing the "branch profits tax" imposed on certain foreign corporations.
"Water Fund" means the "Water Revenue Fund of the City of Evanston."
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Section 2. Incorporation of Preambles. The City Council hereby finds that the
recitals contained in the preambles to this Ordinance are true and correct and does
incorporate them into this Ordinance by this reference.
Section 3. Determination To Issue Bonds for Project. It is necessary and in the
best interests of the City to issue the Bonds to acquire and construct the Project for the
public health, safety and welfare.
Section 4. Determination of Use Life. The City Council does hereby determine
the period of usefulness of the System and the Project to be 40 years from the date of the
Bonds.
Section S. Bond Details. For the purpose of paying a part of the costs of the
Project, there shall be issued and sold the Bonds in the principal amount of $3,600,000. The
Bonds shall each be designated "Water Revenue Bond, Series 1992" and be dated as of
July 1, 1992 (the "Dated Date"), and shall also bear the date of authentication thereof. The
Bonds shall be in fully registered form, shall be in denominations of $5,000 and authorized
integral multiples thereof (but no single Bond shall represent principal maturing on more
than one date), shall be numbered in such reasonable fashion as may be selected by the Bond
Registrar, and shall mature serially on January 1 of the years and in the amounts as follows
(subject to the right of prior redemption hereinafter stated):
YEAR
AMOUNT ($)
YEAR
AMOUNT ($)
1995
120,000
2004
195,000
1996
125,000
2005
205,000
1997
135,000
2006
220,000
1998
140,000
2007
230,000
1999
145,000
2008
245,000
2000
155,000
2009
265,000
2001
165,000
2010
280,000
2002
175,000
2011
300,000
2003
185,000
2012
315,000
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Each Bond shall bear interest at a rate not to exceed 9% per annum from the later of
its Dated Date as herein provided or from the most recent interest payment date to which
interest has been paid or duly provided for, until the principal amount of such Bond is paid
or duly provided for, such interest (computed upon the basis of a 360-day year of twelve
30-day months) being payable on July 1, 1993, and semiannually thereafter on January 1
and July 1 of each year. Interest on each Bond shall be paid by check or draft of the Bond
Registrar, payable upon presentation in lawful money of the United States of America, to the
person in whose name such Bond is registered at the close of business on the applicable
record date. The applicable record date is the 15th day of the month preceding any regular
interest payment date and the 15th day preceding any other interest payment date which may
be occasioned by a redemption of Bonds on a day other than a regular interest payment date.
The principal of the Bonds shall be payable upon presentation in lawful money of the United
States of America at the principal corporate trust office of the Bond Registrar in the City of
Chicago, Illinois, or at successor Bond Registrar and locality.
Section 6. Redemption: Those of the Bonds due on or after January 1, 2001, are
subject to redemption and payment prior to their maturity, at the option of the City, in
whole or in part, from any available funds, on any date on or after January 1, 2000, and if
in part, in integral multiples of $5,000, in such order of maturity as determined by the City
and within any maturity selected by lot by the Bond Registrar as hereinafter provided, at a
redemption price of par plus accrued interest to the date fixed for redemption.
Unless waived by the Bond Registrar, the City shall notify the Bond Registrar of the
redemption of Bonds (by maturity and amount per maturity, if less than .all Bonds of a
maturity are to be redeemed) not less than 45 days prior to the date of redemption. In the
event of a partial redemption of Bonds of a given maturity, the particular Bonds or portions
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thereof to be redeemed
edee ed shall be selected by lot not more than 60 days prior to the redemp-
tion date by the Bond Registrar. With respect to partial redemptions, the Bond Registrar
shall select the Bonds or portion thereof to be redeemed by such method of lottery as the
Bond Registrar shall deem fair and appropriate; provided that such lottery shall provide for
the selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000
portion of a Bond shall be as likely to be called for redemption as any other such $5,000
Bond or $5,000 portion.
The Bond Registrar shall promptly notify the City in writing of the Bonds or portions
of Bonds selected for redemption and, in the case of any Bond selected for partial
redemption, the principal amount thereof to be redeemed.
Unless waived by the registered owner of Bonds to be redeemed, official notice of any
such redemption shall be given by the Bond Registrar on behalf of the City by mailing the
redemption notice by registered or certified mail not less than 30 days and not more than 60 •
days prior to the date fixed for redemption to each registered owner of the Bond or Bonds
to be redeemed at the address shown on the Bond Register or at such other address as is
furnished in writing by such registered owners to the Bond Registrar.
All official notices of redemption shall include the name of the Bonds and at least the
information as follows:
(1) the redemption date;
(2) the redemption price;
(3) if less than all of the Bonds of a single maturity are to be redeemed, the
identification (and, in the case of partial redemption of any Bonds, the respective
principal amounts) of the Bonds to be redeemed;
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(4) a statement that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption and
that interest thereon shall cease to accrue from and after said date; and
(5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office
of the Bond Registrar.
Prior to any. redemption date, the City shall deposit with the Bond Registrar an
amount of money sufficient to pay the redemption price of all the Bonds or portions of
Bonds which are to be redeemed on that date.
Official notice of redemption having been given as aforesaid, the Bonds or portions of
Bonds so to be redeemed shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date (unless the City shall
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default in the payment of the redemption price) such Bonds or portions of Bonds shall cease
to bear interest. Neither the failure to mail such redemption notice, nor any defect in any
notice so mailed, to any particular registered owner, shall affect the sufficiency of such
notice with respect to other Bonds. Notice having been properly given, failure of a
Bondholder to receive such notice shall not be deemed to invalidate, limit or delay the effect
of the notice or redemption action described in the notice. Such notice may be waived in
writing by the registered owner entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice. Waivers of notice by regis-
tered owners shall be filed with the Bond Registrar, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.
Upon surrender of such Bonds for redemption in accordance with said notice, such
Bonds shall be paid by the Bond Registrar at the redemption price. The procedure for pay-
ment of interest due on or prior to the redemption date shall be as herein provided for pay-
ment of interest otherwise due. Upon surrender for any partial redemption of any Bond,
there shall be prepared for the registered owner a new Bond or Bonds of like tenor, of
authorized denominations, of the same maturity and bearing the same rate of interest in the
amount of the unpaid principal. If any Bond or portion of Bond called for redemption shall
not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the redemption date at the rate borne by the Bond or por-
tion of Bond so called for redemption. All Bonds which have been redeemed shall be
cancelled and destroyed by the Bond Registrar and shall not be reissued.
In addition to the foregoing notice, further notice shall be given by the Bond Registrar
on behalf of the City as set out below, but no defect in said further notice nor any failure to
give all or any portion of such further notice shall in any manner invalidate, limit or delay
the redemption action if notice thereof is given as above prescribed.
Each further notice of redemption given hereunder shall contain the information
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required above for an official notice of redemption plus (a) the CUSIP numbers of all Bonds
being redeemed; (b) the date of issue of the Bonds as originally issued; (c) the rate of inter-
est borne by each Bond being redeemed; (d) the maturity date of each Bond being redeemed;
and (e) any other descriptive information needed to identify accurately the Bonds being
redeemed.
Each further notice of redemption shall be sent at least 35 days before the redemption
date by registered or certified mail or overnight delivery service to all registered securities
depositories then in the business of holding substantial amounts of obligations of types
comprising the Bonds (such depositories now including Depository Trust Company of New
York, New York, Depository Trust Company of Philadelphia, Pennsylvania, and Midwest
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Securities Trust Company of Chicago, Illinois) and to one or more national information
services, chosen in the discretion of the Bond Registrar, that disseminate notice of
redemption of obligations such as the Bonds.
Each such further notice shall be published one time in The Bond Buyer, New York,
New York or, if such publication is impractical or unlikely to reach a substantial number of
the registered owners of the Bonds, in some other financial newspaper or journal which
regularly carries notices of redemption of other obligations similar to the Bonds, such publi-
cation to be made at least 30 days prior to the date fixed for redemption.
Upon the payment of the redemption price of Bonds being redeemed, each check or
other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by
issue and maturity, the Bonds being redeemed with the proceeds of such check or other
transfer.
• As part of its duties hereunder, the Bond Registrar shall prepare and forward to the
City a statement as to notice given with respect to each redemption together with copies of
the notices as mailed and published.
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Parity Bonds hereinafter issued pursuant to the terms hereof may be redeemable at
such times and upon such terms as may be determined at the time of authorization thereof.
Section 7. Amendment. The rights and obligations of the City and of the regis-
tered owners of Outstanding Bonds may from time to time be modified or amended by a
supplemental ordinance adopted by the City Council with the written consent of the holders
and registered owners of not less than two-thirds of the principal amount of all Outstanding
Bonds (excluding any of said bonds owned by or under the control of the City); provided,
however, that no such modification or amendment may become effective until all of the
outstanding Water Revenue Bonds, dated May 1, 1964, of the City have been paid in full,
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both as to principal and interest, or provision made for the payment thereof; and, provided
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further, that no such modification or amendment shall extend or change the maturity of or
date of redemption prior to maturity, or reduce the interest rate on, or permit the creation
of a preference or priority of any Outstanding Bond or Outstanding Bonds over any other
Outstanding Bond or Outstanding Bonds, or otherwise alter or impair the obligation of the
City to pay the principal of, interest on and redemption premium (if any) on any of the
Outstanding Bonds at the time, place, rate, and in the currency provided therein, or alter or
impair the obligations of the City with respect to registration, transfer, exchange or notice
of redemption of Bonds, without the express consent of the holders and registered owners of
all the Outstanding Bonds affected; nor shall any such modification or amendment reduce the
percentage of the holders and registered owners of Outstanding Bonds required for the
written consent of such modification or amendment without the consent of the holders and
owners of all of the Outstanding Bonds. 49
Ownership of Bonds for purposes of consent by the registered owners thereof shall be
conclusively proved by the Bond Register. In obtaining or receiving the consents of regis-
tered owners, the City may establish reasonable rules of procedure including, without limi-
tation, rules relating to (i) a record date to fix the registered owners who are entitled to
vote, (ii) solicitation of proxies and (iii) a meeting of the registered owners for the taking of
actions. The registered owners of Bonds may vote their Bond interest in fractional shares.
In the event that Bonds are registered in the name or names of nominees or depositories,
consent of such owners by proxy in accordance with the applicable customs of the securities
industry or rules of the Securities Exchange Commission, Municipal Securities Rulemaking
Board or other association or agency having jurisdiction shall be sufficient.
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• Section 8. Execution; Authentication. The Bonds shall be executed on behalf h if of
•
the City with the manual or duly authorized facsimile signature of the Mayor and attested
with the manual or duly authorized facsimile signature of the City Clerk, as they may
determine, and shall have impressed or imprinted thereon the corporate seal or facsimile
thereof of the City. In case any officer whose signature shall appear on any Bond shall cease
to be such officer before the delivery of such Bond, such signature shall nevertheless be
valid and sufficient for all purposes, the same as if such officer had remained in office until
delivery.
All Bonds shall have thereon a certificate of authentication substantially in the form
hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the City
and showing the date of authentication. No Bond shall be valid or obligatory for any pur-
pose or be entitled to any security or benefit under this ordinance unless and until such
certificate of authentication shall have been duly executed by the Bond Registrar by manual
signature, and such certificate of authentication upon any such Bond shall be conclusive
evidence that such Bond has been authenticated and delivered under this ordinance. The
certificate of authentication on any Bond shall be deemed to have been executed by it if
signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the
same officer sign the certificate of authentication on all of the Bonds issued hereunder.
Section 9. Registration of Bonds; Persons Treated as Owners. The City shall cause
books (the Bond Register) for the registration and for the transfer of the Bonds as provided
in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar,
which is hereby constituted and appointed the registrar of the City for the Bonds. The City
is authorized to prepare, and the Bond Registrar or such other agent as the City may desig-
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nate shall keep custody of, multiple Bond blanks executed by the City for use in the transfer •
and exchange of Bonds.
Any Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender
for transfer or exchange of any Bond at the principal corporate trust office of the Bond
Registrar, duly endorsed by or accompanied by a written instrument or instruments of trans-
fer or exchange in form satisfactory to the Bond Registrar and duly executed by the regis-
tered owner or an attorney for such owner duly authorized in writing, the City shall execute
and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or
transferees or, in the case of an exchange, the registered owner, a new fully registered Bond
or Bonds of like tenor, of the same maturity, bearing the same interest rate, of authorized
denominations, for a like aggregate principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening
•
of business on such interest payment date or during the period of 15 days preceding the
giving of notice of redemption of Bonds or to transfer, or exchange any Bond all or a
portion of which has been called for redemption.
The execution by the City of any fully registered Bond shall constitute full and due
authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenti-
cate, date and deliver such Bond; provided, however, the principal amount of Bonds of each
maturity authenticated by the Bond Registrar shall not at any one time exceed the authorized
principal amount of Bonds for such maturity less the amount of such Bonds which have been
paid.
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The person in whose name any Bond shall be registered shall be deemed and regarded
as the absolute owner thereof for all purposes, and payment of the principal of or interest on
or premium on any Bond shall be made only to or upon the order of the registered owner
thereof or said owner's legal representative. All such payments shall be valid and effectual
to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so
paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City
or the Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of
Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a
Bond surrendered for redemption.
Section 10. Form of Bond. The Bonds shall be in substantially the form hereinafter
• set forth; provided, however, that if the text of the Bonds is to be printed in its entirety on
•
the front side of the Bonds, then the second paragraph on the front side and the legend "See
Reverse Side for Additional Provisions" shall be omitted and the text of paragraphs set forth
for the reverse side shall be inserted immediately after the first paragraph.
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[Form of Bond - Front Side] •
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF COOK
CITY OF EVANSTON
WATER REVENUE BOND
SERIES 1992
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate: Date: Date: July 1, 1992 CUSIP
Registered Owner:
Principal Amount:
KNOW ALL PERSONS BY THESE PRESENTS that the City of Evanston, Cook County,
Illinois, a municipality, home rule unit and political subdivision of the State of Illinois (the
"City") hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, solely
from the Water Revenue Fund of the City as hereinafter provided and not otherwise, on the
Maturity Date identified above, the Principal Amount identified above and to pay interest
(computed on the basis of a 360-day year of twelve 30-day months) on such Principal
Amount from the later of the Dated Date of this Bond identified above or from the most
recent interest payment date to which interest .has been paid or duly provided for at the
Interest Rate per annum identified above, such interest to be payable on July 1, 1993, and
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semiannually thereafter on January 1 and July 1 of each year until said Principal Amount is
paid or duly provided for, and except as the provisions hereinafter set forth with respect to
redemption prior to maturity may be and become applicable hereto. Principal of this Bond
is payable in lawful money of the United States of America upon presentation hereof at the
principal corporate trust office of American National Bank and Trust Company of Chicago,
Chicago, Illinois, as bond registrar and paying agent (the "Bond Registrar"). Payment of
interest shall be made to the Registered Owner hereof as appearing on the registration books
of the City maintained by the Bond Registrar at the close of business on the applicable
Record Date (the "Record Date"). The applicable record date is the 15th day of the month
preceding any regular interest payment date and the 15th day preceding any other interest
payment date which may be occasioned by a redemption of Bonds on a day other than a
regular interest payment date. Interest shall be paid by check or draft of the Bond
• Registrar, payable upon presentation in lawful money of the United States of America,
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mailed to the address of such Registered Owner as it appears on such registration books or at
such other address furnished in writing by such Registered Owner to the Bond Registrar.
Reference is hereby made to the further provisions of this Bond set forth on the
reverse hereof, and such further provisions shall for all purposes have the same effect as if
set forth at this place.
It is hereby certified and recited that all acts, conditions and things required to be
done precedent to and in the issuance of this Bond have been done and have happened and
have been performed in regular and due form of law and that provision has been made for
depositing into the Water Fund the entire Revenues received from the operation of the
System to be applied in the manner as herein set forth; and the City hereby covenants and
agrees that it will fix and maintain rates for the use and service of the System and collect and
IMT
account for the Revenues derived therefrom sufficient at all times to pay Operation and •
Maintenance Costs, to promptly pay principal of and interest on all bonds issued by the City
which are payable solely from the Revenues of the System, and to provide an adequate
depreciation fund, and to comply with all the covenants of and to maintain the accounts
created by the Ordinance. The City covenants that in each Fiscal Year the Net Revenues
shall be adequate to produce an amount sufficient to provide not less than 125% of the prin-
cipal and interest requirements of all Outstanding Bonds for such Fiscal Year.
This Bond shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been signed by the Bond Registrar.
IN WITNESS WHEREOF the City of Evanston, Cook County, Illinois, by its City
Council, has caused this Bond to. be executed with the manual or duly authorized facsimile
signature of its Mayor and attested by the manual or duly authorized facsimile signature of
its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced •
hereon, all as appearing hereon and as of the Dated Date identified above.
ATTEST:
City Clerk, City of Evanston
Cook County, Illinois
[SEAL]
M or, City of Evanston
Cook County, Illinois
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•
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Date of Authentication:
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described
in the within mentioned Ordinance and is one
of the Water Revenue Bonds, Series 1992,
having a Dated Date of July 1, 1992, of the
City of Evanston, Cook County, Illinois.
American National Bank and
Trust Company of Chicago
as Bond Registrar
Lo
Authorized Officer
Bond Registrar and Paying Agent:
American National Bank and Trust
Company of Chicago
Chicago, Illinois
[Form of Bond - Reverse Side]
City of Evanston, Cook County, Illinois
Water Revenue Bond, Series 1992
This bond and the bonds of the series of which it forms a part ( "Bond" and "Bonds"
respectively) are of an authorized issue of Three Million Six Hundred Thousand Dollars
($3,600,000) of like Dated Date and tenor except as to maturity, rate of interest and
privilege of redemption. The Bonds are payable solely from the Revenues derived from the
operation of the waterworks system of the City (the "System") after payment of Operation
and Maintenance Costs, and not otherwise, and are issued under authority of the provisions
of Division 129 of Article 11 of the Illinois Municipal Code, as supplemented and amended,
and as further supplemented and, where necessary, superseded, by the powers of the City as
a home rule unit under the provisions of Section 6 of Article VII of the Illinois Constitution
of 1970 (such code and powers being the "Act"), for the purpose of paying a part of the cost
of a Project for the improvement and extension of the System as more fully described in the
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Ordinance herein defined. The Bonds are issued pursuant to Ordinance Number 39-0-92,
passed by the City Council of the City on the 18th day of May 1992 (the "Ordinance"), to
which reference is hereby expressly made for further definitions and terms and to all the
provisions of which the holder and registered owner by the acceptance of this Bond assents.
This Bond does not constitute an indebtedness of the City within the meaning of any
constitutional or statutory provision or limitation.
Under the Act and the Ordinance, the Revenues from the operation of the System shall
be deposited into the Water Fund, which shall be used only and is hereby pledged for paying
Operation and Maintenance Costs, paying the principal of and interest on all bonds of the
City that are payable by their terms only from the Revenues of the System, providing an
adequate depreciation fund, and in making all payments required to maintain the accounts
established under the terms of the Ordinance. Parity Bonds may be issued pursuant to the
terms of the Ordinance. •
Outstanding Bonds issued and authenticated pursuant to the Ordinance are coequal as
to the lien on the Revenues of the System for their payment and share ratably, without any
preference, priority, or distinction, the one over the other, as to the source or method of
payment and security of the Outstanding Bonds.
The rights and obligations of the City and of the holders and registered owners of the
Bonds may from time to time be modified or amended by a supplemental ordinance adopted
by the City Council with the written consent of the holders and registered owners of not less
than two-thirds of the principal amount of all Outstanding Bonds (excluding any of said
bonds owned by or under the control of the City); provided, however, that no such modifi-
cation or amendment may become effective until all of the outstanding Water Revenue
Bonds, dated May 1, 1964, of the City have been paid in full, both as to principal and inter -
is
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est, or provision made for the payment thereof; and, provided further, that no such modifi-
cation or amendment shall extend or change the maturity of or date of redemption prior to
maturity, or reduce the interest rate or premium on, or permit the creation of a preference
or priority of any Outstanding Bond or Outstanding Bonds over any other Outstanding Bond
or Outstanding Bonds, or otherwise alter or impair the obligation of the City to pay the
principal of, interest on and redemption premium (if any) on any of the Outstanding Bonds
at the time, place, rate and in the currency provided therein or alter or impair the obliga-
tions of the City with respect to registration, transfer, exchange or notice of redemption of
Bonds, without the express consent of the holders and registered owners of all the
Outstanding Bonds affected; nor shall any such modification or amendment reduce the
percentage of the holders and registered owners of Outstanding Bonds required for the
written consent to such modification or amendment without the consent of the holders and
• owners of all of the Outstanding Bonds.
•
Those of the Bonds due on or after January 1, 2001, are subject to redemption at the
option of the City, in whole or in part, on any date on or after January 1, 2000, in integral
multiples of $5,000, in such order of maturity as determined by the City and within any
maturity selected by lot by the Bond Registrar in the manner provided in the Ordinance, at a
redemption price of par plus accrued interest to the date fixed for redemption.
Unless waived by the Registered Owner of Bonds to be redeemed, notice of any such
redemption shall be given by the Bond Registrar on behalf of the City by mailing the
redemption notice by registered or certified mail not less than 30 days and not more than 60
days prior to the date fixed for redemption to each Registered Owner of the Bond or Bonds
to be redeemed at the address shown on the Bond Register or at such other address as is
furnished in writing by such Registered Owner to the Bond Registrar. Neither the failure to
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mail such redemption notice, nor any defect in any notice so mailed, to any particular
Registered Owner of a Bond, shall affect the sufficiency of such notice with respect to other
Registered Owners. Notice having been properly given, failure of a Registered Owner of a
Bond to receive such notice shall not be deemed to invalidate, limit or delay the effect of the
notice or redemption action described in the notice. Such notice may be waived in writing
by a Registered Owner of a Bond entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice. Notice of redemption having
been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price therein specified, and .
from and after such date (unless the City shall default in the payment of the redemption
price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such
Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond
Registrar at the redemption price. The procedure for the payment of interest due on or •
prior to the redemption date shall be as herein provided for payment of interest otherwise
due. Upon surrender for any partial redemption of any Bond, there shall be prepared for
the Registered Owner a new Bond or Bonds of like tenor, of authorized denominations, of
the same maturity, and bearing the same rate of interest in the amount of the unpaid
principal.
This Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in the Ordinance. Upon surrender
for transfer or exchange of this Bond at the principal corporate trust office of the Bond
Registrar in the City of Chicago, Illinois, duly endorsed by or accompanied by a written
instrument or instruments of transfer or exchange in form satisfactory to the Bond Registrar
and duly executed by the Registered Owner or an attorney for such owner duly authorized
•
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in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver
in the name of the transferee or transferees or, in the case of an exchange, the Registered
Owner, a new fully registered Bond or Bonds of like tenor, of the same maturity, bearing
the same interest rate, of authorized denominations, for a like aggregate principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening
of business on such interest payment date or during the period of 15 days preceding the
giving of notice of redemption of Bonds or to transfer or exchange any Bond all or a
portion of which has been called for redemption.
The City and the Bond Registrar may deem and treat the Registered Owner hereof as
the absolute owner hereof for the purpose of receiving payment of or on account of princi-
pal hereof, premium, if any, hereon and interest due hereon and for all other purposes, and
• neither the City nor the Bond Registrar shall be affected by any notice to the contrary.
c
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
as attorney to transfer the said Bond on the books kept for registration thereof with full
power of substitution in the premises.
Dated:
Signature Guaranteed:
•
NOTICE: The signature to this assignment must correspond with the name of the
Registered Owner as it appears upon the face of the within Bond in every
particular, without alteration or enlargement or any change whatever.
Section 11. Bonds Limited Obligations. The Bonds shall be.payable solely from the
Net Revenues as derived from the operation of the System, and shall not constitute an
indebtedness of the City within the meaning of any constitutional or statutory limitation.
Section 12. Fiscal Year and Deposit of Revenues. Upon the issuance of any of the
Bonds the entire System, for the purpose of this Ordinance and while any of the Bonds
remain Outstanding, shall be operated on a Fiscal Year basis commencing the first day of
January and ending the last day of December of each succeeding year; provided, however,
that the City reserves the right to adopt a new Fiscal Year for the System at such time as the
outstanding Water Revenue Bonds, dated May 1, 1964, and dated May 1, 1974 (Series
•
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1973) have been paid in full, or provision made for their payment, both as to principal and
interest.
From and after the delivery of any of the Bonds, all of the Revenues shall be set aside
as collected and be deposited into a bank account separate and apart from all other City
accounts and heretofore designated, accounted for and defined herein as the "Water Fund."
The Water Fund shall constitute a trust fund for the sole purpose of carrying out the
covenants, terms and conditions of this Ordinance and of the Currently Outstanding Bond
Ordinances. Said ordinances did establish, continue and maintain such fund; sufficient
revenues derived from the operation of the System were thereby and are hereby required to
be deposited to be used only in paying the cost of operation and maintenance of the System,
providing an adequate depreciation fund, and paying the principal of and interest on all
bonds of the City which are payable by their terms only from the Revenues, and for the
. creation of and maintenance of the several respective accounts hereinafter named.
Section 13. Accounts and Flow of Funds. The functions and obligations of the
•
Water Fund shall be continued and maintained by the maintenance in the Water Fund of
separate special accounts designated severally the "Operation and Maintenance Account,"
"Depreciation Account," "Bond and Interest Account" and "Bond Reserve Account". In
addition, there have been created and established and are hereby maintained separate special
accounts designated the "Depreciation, Improvement and Extension Account" and "Surplus
Revenue Account". Into said accounts, there shall be set aside on the first business day of
each month without any further official action or direction all moneys held in the Water
Fund of the City, in accordance with provisions of Ordinance Number 92-0-90 of the City
(the "Series 1990 Bond Ordinance"), being the most recently adopted of the Currently
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Outstanding Bond Ordinances to incorporate all covenants for the Outstanding Bonds, and
such provisions are hereby incorporated by reference herein.
Section 14. General Covenants. The covenants and agreements of the City with the
holders and registered owners of the Outstanding Bonds contained in the Series 1990 Bond
Ordinance are hereby made for and incorporated by reference herein as to the holders and
registered owners of the Bonds.
Section 15. Parity Bonds. It is hereby covenanted and agreed that, while any of the
Bonds issued hereunder are outstanding, the City will not issue any other bonds or obliga-
tions of any kind or nature having a pledge on the Revenues which is prior to the lien on the
Revenues of the Bonds herein authorized.
As long as there are any Outstanding Bonds, no obligations or bonds of any kind shall
be issued which are payable from the Revenues except upon compliance with the provisions
as set forth in the Series 1990 Bond Ordinance, which are incorporated herein by reference. •
Section 16. Sale of Bonds; Bond Order. The Designated Officials are hereby
authorized to proceed, without any further authorization or direction whatsoever from the
City Council, to sell and deliver the Bonds upon the terms as prescribed in this Ordinance.
The Bonds shall be sold and delivered to the best bidder at public sale (the
"Underwriter") at the price of not less than 98% of the par value of 'the principal amount
thereof plus accrued interest to the date of delivery. Such sale shall be made upon the advice
(in the form of a written certificate or report) of the Financial Advisor that the terms of the
Bonds are fair and reasonable in view of current conditions in the bond markets.
Nothing in this Section shall require the Designated Officials to sell the Bonds if in
their judgment, aided by the Financial Advisor, the conditions in the bond markets shall have
markedly deteriorated from the time of adoption thereof, but the Designated Officials shall
0
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have the authority to sell the Bonds in any event so long as the limitations set forth in this
Ordinance and the conditions of this Section shall have been met.
Upon the sale of the Bonds, the Designated Officials, and ariy other officers of the
City as shall be appropriate, shall be and are hereby authorized and directed to approve or
execute, or both, such documents of sale of the Bonds as may be necessary, including,
without limitation, the Bond Order, Preliminary Official Statement, Official Statement,
Bond Purchase Contract (as hereinafter defined), and closing documents. Prior to the
execution and delivery of any such Bond Purchase Contract, the Designated Officials shall
find and determine that no person holding any office of the City, either by election or
appointment, is in any manner interested either directly or indirectly, in his own name or in
the name of any other person, association, trust or corporation in said contract with the
Underwriter for the purchase of the Bonds,
• The distribution of the Preliminary Official Statement relating to the Bonds presented
before this meeting is hereby in all respects authorized and approved, and the proposed use
by the Underwriter of an Official Statement (in substantially the form of the Preliminary
Official Statement but with appropriate variations to reflect the final terms of the Bonds) is
hereby approved.
•
A bond purchase contract for the sale of the Bonds to the Underwriter (the "Bond
Purchase Contract"), as comprised of the Official Notice of Sale and Official Bid Form, is
hereby in all respects authorized and approved.
Upon the sale of the Bonds, the Designated Officials shall prepare a Bond Order,
which shall include the pertinent details of sale as provided herein, and such shall be entered
into the records of the City and made available to all City Council members at the next
public meeting thereof.
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Section 17. Application of Proceeds to Funds. The proceeds derived from the sale
of the Bonds shall be used as follows:
A. Accrued interest shall be credited to the Bond and Interest Account.
B. The remaining proceeds of the Bonds shall be deposited into the "Waterworks
Construction Fund Account (1992)" of the City, hereby created.
The money in the Construction Fund Account shall be held for the benefit of the City
for the purposes of the Project (and including therein all incidental costs, including costs of
issuance of the Bonds) as herein provided, and for the benefit of the registered owners of the
Bonds hereby authorized as their interests may appear, and such money shall be withdrawn
from the depository from time to time by the Comptroller of the City only upon submission
to him of the following:
(a) An order signed by the Mayor and City Clerk, or any such other officers
that may from time to time be by law or ordinance authorized to sign and countersign •
orders on the Comptroller of the City, staring specifically the purpose for which the
order is issued and indicating that the payment for which the order is issued has been
approved by the City Council; and
(b) For each order for withdrawal of funds by the Comptroller for payment
to a contractor or contractors for work done in connection with the construction of
the Project, an accompanying certificate executed by the engineer in charge of the
construction, stating the nature of the work completed and the amount due and payable
thereon.
The moneys deposited into the Construction Fund Account may be temporarily
invested from time to time in accordance with the City's investment guidelines and having a
maturity date not later than the date or dates on which such funds will be needed. All pay-
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ments received as principal or interest derived from such investment shall be credited to the
Construction Fund Account.
Upon completion of the Project or full depletion of the Construction Fund Account,
such account may be closed. Any excess funds in the Construction Fund Account shall be
transferred to such other fund or account of the Water Fund as the City Council may
determine, upon advice of bond counsel for the Bonds or other recognized bond counsel.
The costs of engineering, legal and financing services, the costs of surveys, designs,
soundings, borings, rights -of -way, and all other necessary and incidental expenses, shall be
deemed items of cost of construction of the Project.
Section 18. Not Private Activity Bonds. None of the Bonds is a "private activity
bond" as defined in Section 141(a) of the Code. In support of such conclusion, the City
certifies, represents and covenants as follows:
is A. Not more than 5% of the proceeds of the Bonds is to be used, and not more than
5% of either the Project or the System is to be used, directly or indirectly, in any trade or
business carried on by any person other than a state or local governmental unit.
B. No direct or indirect payments are to be made on any Bond with respect to any
private business use by any person other than a state or local governmental unit.
C. None of the proceeds of the Bonds are to be used, directly or indirectly, to
make or finance loans to persons other than a state or local governmental unit.
D. No user of the Project or the System other than the City or another local
governmental unit will use the same on any basis other than the same basis as the general
public; and no person other than the City or another local governmental unit will be a user
of the Project or the System as a result of (i) ownership or (ii) actual or beneficial use
pursuant to a lease, a management or incentive payment contract, or (iii) any other similar
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arrangement including a take or pay contract for use of service from the System (other than
from another local government unit).
Section 19. General Arbitrage Covenants. The City represents and certifies as
follows with respect to the Bonds:
A. The City has heretofore incurred, or within six months after delivery of the
Bonds expects to incur, substantial binding obligations to be paid for with money received
from the sale of the Bonds, said binding obligations comprising binding contracts for the
Project in not less than the amount of $100,000.
B. More than $3,060,000 of the proceeds of the Bonds are expected to be expended
on or before July 1, 1995, for the purpose of paying the costs of the Project, said date being
within three years following the date of issue of the Bonds.
C. All of the principal proceeds of the Bonds, and investment earnings thereon, are
expected to be used, needed and expended for the purpose of paying the costs of the Project, •
including expenses incidental thereto.
D. Work on the Project is expected to proceed with due diligence to completion.
E. Except for the Bond and Interest Account of the Water Fund (the "Bond Fund")
and the Bond Reserve Account of the Water Fund, the City has not created or established
and will not create or establish any sinking fund, reserve fund or any other similar fund to
provide for the payment of the Bonds. The Bond Fund has been established and will be
funded in a manner primarily to achieve a proper matching of revenues and debt service,
and will be depleted at least annually to an amount not in excess of 1/12th the particular
annual debt service on the Bonds. Money deposited into the Bond Fund will be spent within
a 13-month period beginning on the date of deposit, and investment earnings in the Bond
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Fund will be spent or withdrawn from the Bond Fund within a one-year period beginning on
the date of receipt.
F. Amounts of money related to the Bonds required to be invested at a yield not
materially higher than the yield on the Bonds, as determined pursuant to such tax
certifications or agreements as the City officers may make in connection with the issuance of
the Bonds, shall be so invested; and appropriate City officers are hereby authorized to make
such investments.
G. The City has not been notified of any disqualification or proposed
disqualification of it by the Commissioner of the Internal Revenue Service as a bond issuer
which may certify bond issues under Treasury Regulations Section 1.103-13 (a)(2)(ii)
(1979).
The City further certifies and covenants as follows with respect to the requirements of
• Section 148(f) of the Code, relating to the rebate of "excess arbitrage profits" (the "Rebate
Requirement") to the United States:
H. Unless an applicable exception to the Rebate Requirement is available to the
City, the City will meet the Rebate Requirement.
I. Relating to applicable exceptions, either of the Designated Officers is hereby
authorized to make such elections under the Code as either such officer shall deem
reasonable and in the best interests of the City. If such election may result in a "penalty in
lieu of rebate" as provided in the Code, and such penalty is incurred (the "Penalty"), then the
City shall pay such Penalty.
J. The officers of the City shall cause to be established, at such time and in such
manner as they may deem necessary or appropriate hereunder, a "Water Revenue .Bonds,
Series 1992, Rebate Fund" (the "Rebate Fund") for the Bonds, and such officers shall
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further, not less frequently than annually, cause to be transferred to the Rebate Fund the
amount determined to be the accrued liability under the Rebate Requirement or Penalty.
Said officers shall cause to be paid to the U.S., without further order or direction from the
City Council, from time to time as required, amounts sufficient to meet the Rebate
Requirement or to pay the Penalty.
K. Interest earnings in the Construction Fund Account and any amounts on deposit
to the credit of the Surplus Account of the Water Fund are hereby authorized to be
transferred, without further order or direction from the City Council, from time to time as
required, to the Rebate Fund for the purposes herein provided; and proceeds of the Bonds
and other funds of the City are also hereby authorized to be used to meet the Rebate
Requirement or to pay the Penalty, but only if necessary after application of investment
earnings as aforesaid and only as appropriated by the City Council.
The City also certifies and further covenants with the purchasers and registered •
owners of the Bonds from time to time outstanding that moneys on deposit in any fund or
account in connection with the Bonds, whether or not such moneys were derived from the
proceeds of the sale of the Bonds or from any other source, will not be used in a manner
which will cause the Bonds to be "arbitrage bonds" within the meaning of Code Section 148
and any lawful regulations promulgated thereunder, as the same presently exist or may from
time to time hereafter be amended, supplemented or revised.
Section 20. Registered Form. The City recognizes that Section 149 of the Code
requires the Bonds to be issued and to remain in fully registered form in order for the inter-
est thereon to be and remain Tax-exempt. In this connection, the City agrees that it will not
take any action to permit the Bonds to be issued in, or converted into, bearer or coupon
form.
•
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Section 21. Further Tax Covenants. The City agrees to comply with all provisions
of the Code which, if not complied with by the City, would cause the interest on the Bonds
not to be Tax-exempt. In furtherance of the foregoing provisions, but without limiting their
generality, the City agrees: (a) through its officers, to make such further specific
covenants, representations as shall be truthful, and assurances as may be necessary or
advisable; (b) to comply with all representations, covenants and assurances contained in
certificates or agreements as may be prepared by counsel approving the Bonds; (c) to
consult with such counsel and to comply with such advice as may be given; (d) to 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.
Section 22. Opinion of Counsel Exception. The City reserves the right to use or
• invest moneys in connection with the Bonds or operate the System in any manner, notwith-
11
standing the covenants in Sections 18 to 21 herein, provided it shall first have received an
opinion from bond counsel for the Bonds or from an attorney or a firm of attorneys of
nationally recognized standing as municipal bond counsel to the effect that such use or
investment of such moneys or such operation of the System as contemplated will not result in
loss of or otherwise adversely affect the Tax-exempt status of interest on the Bonds.
Section 23. Reimbursement. None of the proceeds of the 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 architectural or engineering costs incurred prior to
commencement of any part of the Project or expenditures for which an intent to reimburse
it as properly declared under Treasury Regulations Section 1.103-18. This Ordinance is in
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itself a declaration of official intent under Treasury Regulations Section 1.103-18 as to all
costs of the Project paid after the date hereof and prior to issuance of the Bonds.
Section 24. Provisions a Contract. The provisions of this Ordinance shall constitute
a contract between the City and the holders and registered owners of the Outstanding Bonds;
and no changes, additions, or alterations of any kind shall be made hereto, except as herein
provided, so long as there are any Outstanding Bonds.
Section 25. Defeasance. Bonds which are no longer Outstanding Bonds as defined
in this Ordinance shall cease to have any lien on or right to receive or be paid from
Revenues and shall no longer have the benefits of any covenant for the holders or registered
owners of Outstanding Bonds as set forth herein.
Section 26. Severability. If any section, paragraph, clause or provision of this
Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision
shall not affect any of the other provisions of this Ordinance. •
Section 27. Superseder. All ordinances, resolutions or orders, or parts thereof, in
conflict with the provisions of this Ordinance are to the extent of such conflict hereby super -
ceded.
•
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Section 28. Publication. This Ordinance within ten (10) days after its passage by
the City Council shall be published once in pamphlet form by authority of the City Council,
and shall thereupon be in full force and effect immediately.
MA
PASSED: May 18, 1992.
AYES: Aldermen Rainey. Lanyon, Feldman,, Warshaw,; Fiske, _Newman.. Paden
Drummer Davis., Brady_. Psch, Heydemann Washington Kent Moran_
Nelson, wollin ana Engelman
NAYS: None
ABSENT: None
APPROVED:
ATTEST:
City Clerk (�� i//-V
1992
Mayor
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