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HomeMy WebLinkAboutORDINANCES-1986-078-O-86• ORDINANCE NUMBER 78-0-86 AN ORDINANCE providing for the issuance of $9,160,000 Corporate Purpose Bonds, Series 1986, of the City of Evanston, Cook County, Illinois, and providing for the levy and collection of a direct an- nual tax for the payment of the principal of and interest on said bonds. 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, pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the City is a home rule unit and may exercise any power • or perform any function pertaining to its government and affairs including, but not limited to, the power to *tax and to incur debt; and WHEREAS pursuant to the provisions of said Section 6, the City has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and matur- ing within forty (40) years from the time it is incurred without prior referendum approval; and WHEREAS on the 27th day of August 1973, the City Coun- cil of the City (the "City Council") did adopt Ordinance 78-0-73 establishing the procedures to be followed in the borrowing of money for public corporate purposes of the City and the issuing of full faith and credit bonds of the City without referendum approval, such ordinance being entitled: • • AN ORDINANCE ESTABLISHING PROCEDURES TO BE FOLLOWED IN INCURRING INDEBTEDNESS FOR CORPORATE PURPOSES, ISSUING NON -REFERENDUM BONDS TO EVIDENCE SUCH IN- DEBTEDNESS AND AUTHORIZING AND DIRECTING THE LEVY- ING OF A TAX FOR THE PURPOSE OF PAYING PRINCIPAL ON SUCH BONDS AND INTEREST THEREON AS THE SAME BECOME DUE. and which Ordinance No. 78-0-73 was amended by Ordinance No. 107-0-80 adopted by the City Council on November 10, 1980, and which said procedural ordinance, as amended (the "Prior Pro- cedural Ordinance"), is now in full force and effect; and WHEREAS the Prior Procedural Ordinance has become out- moded in various ways due to developments in municipal finance and the City Council hereby deems it advisable to repeal the • Prior Procedural Ordinance and issue its general obligation bonds from time to time directly under the authority of the City as a home rule unit; and r� U WHEREAS the bonds to be issued hereunder shall not be subject to the Prior Procedural Ordinance which is repealed here- in; and WHEREAS it is deemed to be necessary, essential and in the best interests of the inhabitants of the City to obtain funds to pay the cost of constructing certain projects set forth in the current Capital Improvement Program of the City, including fire station construction and improvements, street improvements, and relocation of utilities in connection with the Clark Street via- duct construction, which projects now require funds in the amount of $3,000,000; and -2- WHEREAS it is necessary for that purpose that such sum be borrowed at this time and in evidence of such indebtedness general obligation bonds of the City be issued in the principal amount of $3,000,000, and that such indebtedness be incurred without submitting the question of incurring such indebtedness to the electors of the City for their approval; and WHEREAS the City has heretofore issued $3,625,000 Cor- porate Purpose Bonds, Series 1981-A, due January 1 of the years 1993 through 2007 and $1,500,000 Corporate Purpose Bonds, Series 1981-B, due January 1 of the years 1993 through 1995 (the "Out- standing Bonds" collectively); and • WHEREAS the Outstanding Bonds bear interest at rates higher than currently available to the City on its borrowings, and it is therefore deemed advisable and in the -best interests of • the City to refund the Outstanding Bonds in advance of maturity and to call them for redemption at the earliest possible call dates applicable thereto so as to achieve an interest cost savings; and WHEREAS the estimated cost of refunding the Outstanding Bonds, including necessary expenses, is $6,160,000; and WHEREAS it is necessary and advisable to borrow the funds to refund the Outstanding Bonds so as to achieve the inter- est cost savings without submitting the question of issuing said. Bonds to .the electors of the City; and -3- • WHEREAS it is advisable for the City to issue the Bonds for the Capital Improvement Program and for refunding the Out- standing Bonds collectively as one issue in the aggregate prin- cipal amount of $9,160,000; and WHEREAS any variation in the actual cost of the re- funding from the estimate made herein shall 'be added to or sub- tracted from the amount available for the Capital Improvement Program; and WHEREAS the City Council does hereby determine that it is advisable and in the best interests of the City to borrow $9,160,000 at this time pursuant to its home rule powers for the • purpose of paying the costs of current expenditures for the Capital Improvement Program and of refunding the Outstanding Bonds and to evidence such borrowing, issue its full faith and credit bonds in the principal amount of $9,160,000; 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. Definitions The following words and terms used in this Ordinance shall have the following meanings unless the context or use clearly indicates another or different meaning is intended: "Bond" or "Bonds" means one or more, as applicable, of .the $9.,160,000 Corporate Purpose Bonds, Series 1986, authorized to be issued by this Ordinance. "Bond Fund" means the Bond Fund established and defined • in Section 13 of this Ordinance. -4- • "Bond Register" means the books of the City kept by the Bond Registrar to evidence the registration and transfer of the Bonds. "Bond Registrar" means American National Bank and Trust Company of Chicago, Chicago, Illinois, a national banking association, having trust powers, or a successor thereto or a successor designated as Bond Registrar 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 1954, as amended. "Ordinance" means this Ordinance, numbered 78-0-86 , and passed by the City Council on the 28th day of July 1986. "Outstanding Bonds" means the bonds of the series and to be refunded as described and defined as such in the preambles • to this Ordinance. "Paying Agent" means American National Bank and Trust Company of Chicago, Chicago, Illinois, a national banking association, having trust powers, or a successor thereto or a successor designated as Paying Agent hereunder. "Prior Procedural Ordinance" means the ordinance as amended as defined as such in the preambles to this Ordinance. "Program" or "Capital Improvement Program" means the current Capital Improvement Program of the City. Section 2. Incorporation of Preambles The City Council hereby finds that the recitals con- tained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Determination To Issue Bonds It is necessary and in the best interests of the City • to provide for payment of the costs of current expenditures for -5- r� u the Capital Improvement Program and of refunding the Outstanding Bonds, and to pay all related costs and expenses incidental thereto, and to borrow money and issue the Bonds for such pur- poses. It is hereby found and determined that such borrowing of money is necessary for the public health, safety, welfare and convenience and is for a proper public purpose or purposes and is authorized -pursuant to the City's home rule powers; and these findings and determinations shall be deemed conclusive. Section 4. Bond Details For the purpose of providing for the payment of the • costs of current expenditures for the Capital Improvement Program and of refunding the Outstanding Bonds, and of paying all related costs and expenses incidental thereto, there shall be issued and sold the Bonds in the principal amount of $9,160,000. The Bonds shall each be designated "Corporate Purpose Bond, Series 1986"; be dated August 1, 1986; and shall also bear the date of auth- entication thereof. The Bonds shall be in fully registered form, shall be in denominations of $5,000 or integral multiples thereof (but no single Bond shall represent principal maturing on more than one date), shall be numbered consecutively in such fashion as shall be determined by the Bond Registrar, and shall become due and payable serially on January 1 of each of the years and in the amounts and bearing interest at the rates percent per annum as follows: • • Year Amount M Rate ( o ) 1988 165,000 7.90% 1989 325,000 7.90% 1990 335,000 7.90% 1991 365,000 7.90% 1992 385,000 6.40% 1993 1,225,000 6.40% 1994 1,225,000 6.60% 1995 1,245,000 6.75% 1996 740,000 6.90% 1997 750,000 7.00% 1998 535,000 7.00% 1999 350,000 7.00% 2000 340,000 7.00% 2001 340,000 7.00% 2002 330,000 7.00% 2003 155,000 7.00% 2004 150,000 7.00% 2005 145,000 7.00% 2006 55,000 7.00% • Each such Bond shall bear interest from the later of its Dated Date as provided herein or from the most recent in- terest payment date to which interest has been paid or duly pro- vided for, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on July 1, 1987, and semiannually thereafter on January 1 and July 1 of each year, and until such Bond has been paid. Interest on each Bond shall be paid by check or draft of the Paying Agent, payable upon presen- tation thereof in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the 15th day of the month next preceding the in- terest payment date. The principal of the Bonds shall be payable in lawful money of the United States of America upon presentation • thereof at the principal corporate trust office of the Paying Agent. -7- • • Section 5. Optional Redemption Those of the Bonds due on January 1 of the years 1998 to 2006, inclusive, shall be subject to redemption prior to ma- turity at the option of the City, in whole or in part, from any available funds, on January 1, 1997, or on any interest payment date thereafter, and if in part in the inverse order of maturity, and if less than an entire maturity in integral multiples of $5,000, selected by lot by the Bond Registrar as hereinafter provided, at the redemption price of par and accrued interest to the date fixed for redemption. The City shall, at least 45 days prior to the redemp- tion date (unless a shorter time period shall .be satisfactory to the Bond Registrar), notify the Bond Registrar and Paying Agent of such redemption date and of the principal amount of Bonds to be redeemed. For purposes of any redemption of less than all of the Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot not more than 60 days prior to the redemption date by the Bond Registrar for the Bonds of such maturity 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. -8- • The Bond Registrar shall promptly notify the City and the Paying Agent 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. Section 6. Redemption Procedure Unless waived by the owner of Bonds to be redeemed, notice of any such redemption shall be given by the Bond Regis- trar 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 the Paying Agent and each registered owner of the Bond or Bonds to be rede- • emed 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. All notices of redemption shall include at least the information as follows: A. the redemption date; B. the redemption price; C. if less than all of the Bonds of a particular matu- rity are to be redeemed, the identification (and, in the case of partial redemption of Bonds within such maturity, the respective principal amounts) of the Bonds to be redeemed; D. a statement that on the redemption date the redemp- tion 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 E. 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 Paying Agent. • • Prior to any redemption date, the City shall deposit with the Paying Agent 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. 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 sur- render of such Bonds for redemption in accordance with said no- tice, such Bonds shall be paid by the Paying Agent at the re- demption price. Interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bond, there shall.be prepared for the registered owner a new Bond or Bonds 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, bear interest from the redemption date at the rate borne by the Bond or portion 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. -10- • Section 7. Execution; Authentication The Bonds shall be executed on behalf of the City by the manual or facsimile signature of its Mayor and be attested by the manual or facsimile signature of its City Clerk, as they may determine, and shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the City. In case any such officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of -such Bond, such signa- ture shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until de- livery. • All Bonds shall have thereon a certificate of authenti- cation, substantially in the form hereinafter set forth, duly executed by the Bond Registrar as authenticating agent of the City and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any secu- rity or benefit under this Ordinance unless and until such certi- ficate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of auth- entication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordin- ance. 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. Doc Section 8. Registration of Bonds; Persons Treated as Owners The City shall cause the Bond Register 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 designate 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 transfer in form satis- factory to the Bond Registrar and duly executed by the registered owner or an attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and de- liver 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 the same interest rate and maturity of autho- rized denominations for a like aggregate principal amount. The execution by the City of any fully registered Bond shall consti- tute full and due authorization of such Bond, and the Bond Regis- trar shall thereby be authorized to authenticate, date and de- • -12- • liver such Bond; provided, however, the principal amount of Bonds of each maturity authenticated by the Bond Registrar shall not at any one time exceed the authorized principal amount of Bonds for such maturity less the amount of such Bonds which have been paid. The Bond Registrar shall not be required to transfer or exchange any Bond during the period from the 15th day of the calendar month preceding an interest payment date on the Bonds to such interest payment date or during the period of 15 days pre - I ceding 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 person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for • all purposes, and payment of the principal of or interest on any Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liabil- ity 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 govern- mental charge that may be imposed in connection with any transfer or exchange of Bonds. -13- • • Section 9. Form of Bond The Bonds shall be in substantially the form herein- after set forth; provided, however, that if the text of the Bond is to be printed in its entirety on the front side of the Bond, then paragraph (2] and the legend "See Reverse Side for Addi- tional Provisions" shall be omitted and paragraphs (6] through (11] shall be inserted immediately after paragraph (1]. REGISTERED NO.. [Form of Bond - Front Side] UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK CITY OF EVANSTON CORPORATE PURPOSE BOND, SERIES 1986 See Reverse Side for Additional Provisions. Interest Maturity Rate: Date: Registered Owner: Principal Amount: Dated Date: ,August 1, 1986 REGISTERED CUSIP (1] KNOW ALL PERSONS BY THESE PRESENTS that the City of • Evanston, Cook County, Illinois, a municipality and political -14- U subdivision of the State of Illinois (the "City"), hereby ack- nowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the later .of the Dated Date of this Bond identified above or from the most recent interest payment date to which interest has been paid or duly provided for, at the Inter- est Rate per annum identified above, such interest to be payable on July 1, 1987, and semiannually thereafter on January 1 and • July 1 of each year, until said Principal Amount is paid. The CJ principal of this Bond is payable in lawful money of the United States of America upon presentation hereof at the principal cor- porate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as paying agent (the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as bond registrar (the "Bond Registrar"), at the close of business on the 15th day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent, payable upon presen- tation in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on such regis- -15- tration books or at such other address furnished in writing by such Registered Owner to the Bond Registrar. [2] Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. (3] It is hereby certified and recited that all condi- tions, -acts and things required -by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Bond, including any applicable procedural ordinances of the City, have existed and have been properly done, • happened and been performed in•regular and due form and time as required by law; that the indebtedness of the City, represented • by the Bonds, and including all other indebtedness of the City, howsoever evidenced or incurred, does not exceed any constitu- tional or statutory or other lawful limitation; and that provi- sion has been made for the collection of a direct annual tax, in addition to all other taxes, on all of the taxable property in the City sufficient to pay the interest hereon as the same falls due and also to pay and discharge the principal hereof at matur- ity. (4] This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Bond Registrar. -16- 17J • • (5) IN WITNESS WHEREOF the City of Evanston, Cook County, Illinois, by its City Council, has caused this Bond to be executed by the duly authorized manual or facsimile signature of its Mayor and attested by the duly authorized manual or 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) Date of Authentication: CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Ordinance and is one of the Corporate Purpose Bonds, Series 1986, having a Dated Date of August 1, 1986, of the City of Evanston, Cook County, Illinois. American National Bank and Trust Company of Chicago as Bond Registrar By Authorized Officer Mayor, City of Evanston Cook County, Illinois Bond Registrar American National and Paying Agent: Bank and Trust Company of Chicago, Chicago, Illinois -17- • [Form of Bond - Reverse Side] CITY OF EVANSTON COOK COUNTY, ILLINOIS CORPORATE PURPOSE BOND, SERIES 1986 (6] This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of $9,160,000 issued by the City for the purpose of paying the costs of current expenditures for the Capital Improvement Program of the City and of refunding certain Outstanding Bonds of the City, and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Bonds (the "Ordinance"), pursuant to and in all respects in compliance with the powers of the City as a home rule • unit under the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, with any applicable procedural ordinances of the City, and with the Ordinance, which has been duly passed by the City Council, approved by the Mayor of the City, and.published, in all respects as by law required. (7] 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 any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by or accompanied by a written instrument or instruments of transfer in form satis- factory to the Bond Registrar and duly executed by the registered owner or an attorney duly authorized in writing, the City shall • execute and the Bond Registrar shall authenticate, date and de- -18- • liver 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 the same interest rate and maturity of author- ized denominations for a like aggregate principal amount. (8] The Bond Registrar shall not be required to trans- fer or exchange any bond during the period from the 15th day of the calendar month next preceding any interest payment date on ,such "Bond to -such interest payment date or during the period of 15 days preceding a notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has been called for redemption. • (9] Those of the Bonds maturing on January 1 •of the • years 1998 to 2006, inclusive, are subject to redemption prior to maturity at the option of the City, in whole or in part, on January 1, 1997, or on any interest payment date thereafter, and if in part in the inverse order of maturity, and if less than an entire maturity in integral multiples of $5,000, selected by lot by the Bond Registrar, at the redemption price of par and accrued interest to the date of redemption, as set forth in the Ordi- nance." (10] 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 -19- • 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 Reg- istrar. [11] The City, the Bond Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on ac- count of principal hereof and interest .due hereon and for all other purposes, and the City, the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary. 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 ap- point as attorney to transfer the said Bond on the books kept for reg- istration thereof with full power of substitution in the premi- ses. Dated: Signature guaranteed: • -20- • NOTICE: The signature to this transfer and assignment must cor- respond with the name of the Registered Owner as it appears upon the face of the within Bond in every par- ticular, without alteration or enlargement or any change whatever. Section 10. Tax Levy For the purpose of providing funds required to pay the interest on the Bonds promptly when and as the same falls due, and to pay and discharge the principal thereof at maturity, there is hereby levied upon all of .,the taxable property within the City, in the years for which any of the Bonds are outstanding, a direct annual tax sufficient for that purpose; and there is hereby levied on all of the taxable property in the City, in • addition to all other taxes, the following direct annual taxes: • -21- • For the Year A Tax Sufficient to Produce the Dollar Sum of: 1986 $1,062,454.79 for principal and interest up to and including January 1, 1988 1987 945,462.50 for principal and interest 1988 929,787.50 for principal and interest 1989 933,322.50 for principal and interest 1990 924,487.50 for principal and interest 1991 1,739,847.50 for principal and interest 1992 1,661,447.50 for principal and interest 1993 1,600,597.50 fo.r principal and interest 1994 1,011,560.00 for principal and interest 1995 970,500.00 for principal and interest 1996 703,000.00 for principal and interest 1997 480,550.00 for principal and interest 1998 446,050.00 for principal and interest 1999 422,250.00 for principal and interest 2000 388,450.00 for principal and interest 2001 190,350.00 for principal and interest 2002 174,500.00 for principal and interest 2003 159,000.00 for principal and interest 2004 58,850.00 for principal and interest Interest or principal coming due at any time when there are insufficient funds on hand from the foregoing tax levy to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of said taxes herein levied: and when said taxes shall have been collected, reimbursement shall be made to said funds in the amount so advanced. The City covenants and agrees with the purchasers and the registered owners of the Bonds that so long as any of the • -22- • Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the abil- ity of the City to levy and collect the foregoing tax levy. The City and its officers will comply with all present and future applicable laws in order to assure that the foregoing taxes may be levied, extended and collected as provided herein and de- posited into the Bond Fund. Section 11. Filing with County Clerk Promptly, as soon as this Ordinance becomes effective, a copy hereof, certified by the City Clerk of the City, shall be filed with the County Clerk of The County of Cook, Illinois; and • said County Clerk shall in and for each of the years 1986 to 2004, inclusive, ascertain the rate per cent required to produce U the aggregate tax hereinbefore provided to be levied in each of said years; and said County -Clerk shall extend the same for col- lection on the tax books in connection with other taxes levied in said years in and by the City for general corporate purposes of the City; and in said years such annual tax shall be levied and collected 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. A certified copy of this Ordinance shall also be filed with the Bond Registrar and Paying -Agent. -23- • Statement Section 12. Sale of Bonds and Approval of Official The Bonds shall be executed as in this Ordinance pro- vided as soon after its passage as may be, shall be deposited with an appropriate City officer and thereupon be delivered to the purchaser thereof, namely, CLAYTON BROWN AND ASSOCIATES. INC. , upon payment of a purchase price of $ 9,068,,976..29 plus accrued interest to the date of delivery. The contract for the sale of the Bonds to said pur- chaser, heretofore entered into, be and the same is hereby in all respects ratified, approved and confirmed; and it is hereby found • and determined that said contract is in the best interests of the City and that no person holding any office of the City, either by election or by 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 for the purchase of the Bonds. The Official Statement prepared for the City in connection with the sale of the Bonds be and the same is hereby approved. Section 13. Creation and Maintenance of Funds and Appropriations The proceeds derived from the sale of the Bonds shall be used as follows: A. Accrued interest and premium, if any, on the Bonds shall be and is hereby appropriated for the purpose of paying the first interest due on the Bonds and to such end is hereby . ordered to be deposited into the "Corporate Purpose Bonds, -24- • Series 1986, Bond Fund" (the "Bond Fund"), hereby created, which shall be the fund for the payment of principal of and interest on the Bonds. Taxes received for the payment of the Bonds shall be deposited into the Bond Fund and used solely and only for the purpose of paying the Bonds. Interest re- ceived from investments on deposit in the Bond Fund shall be retained therein as a credit against future deposits or transferred to such other fund as the City Council may from time to time determine. B. The sum of Bond proceeds necessary shall be used to provide for the refunding of the Outstanding Bonds. The refunding of such Outstanding Bonds shall occur simultaneously with the issuance of the Bonds. The sums necessary to refund such -Outstanding Bonds shall be deposited with an Escrow Agent and held by such Agent separate and apart in an Escrow Account to be used to pay such Outstanding Bonds and related expenses as set forth, all pursuant to an Escrow Agreement to be approved by ordinance of the City to be hereafter adopted by the City Council. Said ordinance will set forth the terms and con- ditions of the Escrow Agreement providing for such Escrow Account and will approve the form of such Escrow Agreement to • be executed and delivered at or prior to the delivery of the Bonds. • C. The balance of the proceeds received from the sale of the Bonds shall be deposited into the "Bond Series 1986 - Capital Improvement Program Fund" (the "Program Fund"), hereby created. Disbursements from the Program Fund shall be made only for the purpose for which the Bonds are being issued, as herein provided, including all fees and expenses incidental to the program and the enumerated. projects and the issuance of the Bonds, and for which such proceeds of sale are hereby appropriated. Subject to Section 14 of this Ordinance, the City Council reserves the right, as it becomes necessary from time to time, to revise the list of projects hereinabove set forth, to change priorities, to revise cost allocations be- tween projects and to substitute projects, in order to meet current needs of the City. Section 14. Tax Covenants. The City represents and certifies as follows with re- spect to the Bonds: A. The City has 'heretofore incurred, or within six months after delivery of the Bonds expects to incur, substantial -25- binding obligations with respect to the Program to be paid for with money received from the sale of the Bonds, said binding obligations comprising binding contracts for land acquisition, engineering or construction in not less than the amount of $100,000. B. All of the proceeds of the Bonds to be deposited into the Program Fund will be expended on or before August 1, 1989,-for the :.purpose of paying the costs of the Program, said date being within three years following the date of issue of the Bonds. C. All of the principal proceeds of the Bonds to be deposited into the Program Fund and investment earnings thereon will be used, needed and expended for the purpose of paying the costs of the Program. D. Work on the projects included in the Program is expected to proceed with due diligence to completion. E. No acquisition or improvement made as a part of the the Program has been or is expected to be sold or otherwise dis- posed of for money or property in whole or in material part prior to the last maturity of the Bonds. "Material part" means (i) land, or (ii) any improvement, or (iii) personal property or fixtures in excess of that which is expected to be sold, traded in or discarded upon wearing out or becoming obsolete. F. The City will receive the agreed -upon purchase price from the sale of the Bonds. Accrued interest on the Bonds • -26- • is to be deposited into the Bond Fund and used to pay first in- terest coming due on the Bonds. G. Except for the Bond Fund, the City has not created or established and will not create or establish any sinking fund, reserve fund or any other similar fund to provide for the payment of the Bonds. Except for a certain beginning deposit from Bond proceeds, the Bond Fund has been established and will be funded with tax receipts or other moneys in a manner primarily to achieve a proper matching of available revenues and debt service. The Bond Fund will be depleted at least annually to an amount not in excess of one -twelfth of the particular annual debt service on the Bonds. Money deposited in the Bond Fund will be • spent within a 13-month period beginning on the date of deposit, • and investment earnings in the Fund will be spent within a 1-year period beginning on the date of receipt. H. The foregoing statements of expectation are based upon the following facts and estimates: (1) Amounts shown as received will be received pur- suant to contract of sale. (2) Amounts paid or to be paid into various funds and accounts have been directed to be paid into said funds and accounts by authority hereof or are expected to be so di- rected to be paid by further proceedings. (3) The anticipated dates of the obligation of and ex- penditure of money in the Program Fund derived from the sale of Bonds and the amounts to be spent on or before such dates is based upon consultation with the engineers charged with responsible supervision of the construction of the Program. -27- • I. If at any time after the third anniversary of the date of issuance of the Bonds, the amount of money in the Program Fund exceeds 15% of the amount of the Bonds properly allocable to the Program, then the amount of money in the Program Fund in excess of said 15% amount shall not be invested at a yield "materially higher" (as defined in the Treasury Regulations here- inafter cited) than the yield on the Bonds unless the City re- ceives an opinion from an attorney or a firm of attorneys of .nationally recognized standing in matters pertaining to tax exempt bonds to the effect that investment of such moneys at a yield materially higher than the yield on the Bonds will not • result in loss of tax exempt status for interest on the Bonds. J. In valuing the moneys on deposit in the Program Fund at any time for the purposes of complying with the foregoing paragraph, investments will be taken into account at purchase price with the following exception: if an investment is pur- chased at a discount or results in interest payments for any annual period in excess of interest payments for any preceding annual period (reflecting the annual reinvestment of accrued interest as principal), the amount of such discount or excess interest (not discounted to present value) shall be added to the purchase price ratably each year over the term of the invest- ment. The yield on investments shall be calculated on the basis of the actual payments received from and the price paid for such • investments. -28- • K. To the best of the knowledge and belief of the members of the City Council, and of the undersigned Mayor of the City and City Clerk, who are officers charged with the responsi- bility of issuing the Bonds, there are no facts, estimates or circumstances that would materially change the expectations, conclusions and representations set out in this section, -and the expectations set out in this section are reasonable. L. The City has not been notified of any disqualifica- tion or proposed disqualification of it by the Commissioner of the Internal Revenue Service as a bond issuer which may certify bond issues under Treas. Reg. §1.103-13 (a)(2)(ii)(1979). • The City also certifies and further covenants with the purchasers and registered owners of the Bonds from time to time outstanding that moneys on deposit in any fund or account in connection with the Bonds, whether or not such.moneys were de- rived 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 Section 103(c) of the Code and any lawful regulations promulgated there- under, including Treas. Reg. §§1.103-13, 1.103-14 and 1.103-15 (1979) as the same presently exist or may from time to time here- after be amended, supplemented or revised. The City reserves the right, however, to make any investment of moneys on deposit in any `fund or account in connection with the Bonds permitted by state law, if, when and to the extent that said Section 103(c) or • -29- regulations promulgated thereunder shall be repealed or relaxed or shall be held void by final decision of a court of competent jurisdiction, but only if any investment made by virtue of such repeal, relaxation or decision would not, in the opinion of an attorney or a firm of attorneys, as hereinabove described in paragraph I, result in loss of tax exempt status of interest on the Bonds. The City recognizes that Section 103(j) of the Code requires the Bonds to be issued and to remain in fully registered form in order for interest 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. The City acknowledges that on December 17, 1985, the United States House of Representatives adopted H.R. 3838 (in the form so adopted, the "Tax Bill"). The City further acknowledges that on March 14, 1986, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, the Secretary of the Treasury, and the ranking minority members of said committees issued a joint statement (the "Joint Statement") endorsing the postponement, until the earlier of September 1, 1986, or the date of enactment of tax reform legislation, of the application of certain provisions of the Tax Bill to certain types of bonds, including the Bonds. The City intends to issue the Bonds prior to the effective date referred to in the Joint C: -30- • Statement, making compliance with those provisions of the Tax Bill proposed to be postponed pursuant to the Joint Statement unnecessary if such postponement is enacted. The City does not intend to comply with the provisions of the Tax Bill proposed to be postponed, but hereby covenants to comply with the provisions of the Tax Bill which are unaffected by the Joint Statement. The City covenants to use its best efforts to comply with the requirements and restrictions of any federal legislation enacted into law applicable to the interest on the Bonds, pro- vided that the City will be required to use such efforts only to the extent that (i) compliance is consistent with the provisions • hereof and with the other proceedings authorizing the Bonds and the laws -of the State of Illinois; (ii) compliance is possible by • actions of the City subsequent to the enactment of such legisla- tion; and (iii) there is a reasonable period of time within which to comply with such legislation. Any officer of the City is hereby authorized and directed to make such further covenants, estimates, representa- tions, or assurances consistent with this Ordinance as may be necessary or advisable to the end that the interest on the Bonds is and remains tax exempt. Section 15. Certain Covenants of and with respect to the Bond Registrar and Paying Agent The City covenants that it will at all times retain a Bond Registrar and a Paying Agent with respect to the Bonds, that -31- • it will maintain at the designated office of such Bond Registrar or Paying Agent, as appropriate, a place or places where Bonds may be presented for payment or registration of transfer or ex- change, and that it will require that the Bond Registrar properly maintain the Bond Register and perform the other duties and ob- ligations imposed upon it by this ordinance in a manner con- sistent with the standards, customs and practices of the municipal securitfes iridustry. If requested by the Bond Registrar, any officer of the City is authorized to execute the Bond Registrar's standard form of agreement between the City and the Bond Registrar with respect • to the obligations and duties of the Bond Registrar hereunder. In addition to the terms.of such agreement and subject to modifi- cation thereby, the Bond Registrar by its acceptance of duties hereunder, agrees as follows: A. to act as bond registrar, authenticating agent, and transfer agent as provided herein; B. to maintain a current list of the names and ad- dresses of the owners of the Bonds in the Bond Register, as set forth herein, and to furnish such list to the City upon request, but otherwise to keep such list confidential except as otherwise may be required by law; C. to give notice of redemption of Bonds as provided herein; • -32- • D. to cancel and destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer; E. to furnish the City at least annually a a certifi- cate with respect to Bonds cancelled and destroyed; and F. to furnish the City at least annually an audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the.Bonds. The Bond Registrar shall signify its acceptance of the duties and obligations imposed upon it by this ordinance by exe- cuting the certificate of authentication on any Bond, and by such • execution the Bond Registrar shall be deemed to have certified to the City that it has all requisite power to accept and has ac- cepted such duties and obligations. The Bond Registrar is the agent of the City and shall not be liable in connection with the performance of its duties except for its own negligence or will- ful wrongdoing. The Bond Registrar shall, however, be respon- sible for any representation in its certificate of authentication on the Bonds. The City may remove the Bond Registrar or the Paying Agent at any time. In case at any time the Bond Registrar or the Paying Agent shall resign, shall be removed, shall become in- capable of acting, or shall be adjudged as bankrupt or insolvent, or if ---a receiver, liquidator or conservator of the Bond Registrar or the Paying Agent, or of the property thereof, shall be ap- pointed, or if any public officer shall take charge or control of -33- r1 U the Bond Registrar or the Paying Agent, or of the property or affairs thereof, the City covenants and agrees that it will thereupon appoint a successor Bond Registrar or Paying Agent, or both, as appropriate. The City shall mail notice of any such appointment made by it to each registered owner of any Bond within 20 days after such appointment. Any Bond Registrar or Paying Agent appointed under the provisions of this section shall be a bank, trust company or national banking association having capital and surplus in excess of $100,000,000. Section 16. Contract The provisions of this Ordinance shall constitute a contract between the City and the purchasers and registered • owners of the Bonds. Any pledge made in this Ordinance and the provisions, covenants and agreements herein set forth to be per- formed by or on behalf of the City shall be for the equal bene- fit, protection and security of the registered owners of any and all of the Bonds. All of the Bonds, regardless of the time or times of their issuance, -shall be of equal rank without prefer- ence, priority or distinction of any of the Bonds over any other thereof. Section 17. Abatement of Taxes The taxes herein levied to pay principal of and inter- est on the Bonds may be abated if provision is made for the pay- ment of the Bonds from other lawfully available moneys, but such abatement may be made only after said moneys are irrevocably set aside for such purpose. to -34- • Section 18. Taxes Previously Levied The taxes previously levied to pay principal of and interest on the Outstanding Bonds for the year 1985 (collectible in 1986) shall first be used, if necessary to provide up to $3,000,000 for the Program, and, for such purpose, shall be transferred to the Program Fund or, if not necessary for said purpose, shall either be used to abate the taxes herein levied for the Bonds or be 'transferr'ed `to 'tire -corporate fund of the City and duly expended for corporate purposes during the current and next fiscal years thereby reducing the taxes necessary to be levied for the corporate fund. All other taxes heretofore levied . for the years 1986 and subsequent to pay principal of and inter- est on the Outstanding Bonds shall be and are hereby abated. The filing of a certified copy of this Ordinance with the County Clerk of The County of Cook, Illinois, as hereinabove provided, shall constitute authority and direction for said County Clerk to make such abatement. Section 19. Publication of Ordinance A full, true and complete copy of this Ordinance shall be published within ten days after passage in book or pamphlet form by authority of the City Council. Section 20. Repealer, Superseder and Effective Date The prior Procedural Ordinance is hereby repealed. This Ordinance shall not be subject to the terms of the Prior • Procedural Ordinance. All other ordinances, resolutions, motions -35- C7 n 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 Raden, Korshak, Morton, Summers, '_Nelson, Bleveans, Collens, Rainey, Larson, Ream, Warshaw, Rudy, Juliar, Thiel, Drummer, Davis, and Brady. NAYS: ?None ABSENT: Alderman Wold ADOPTED: July 28, 1986. App Ived: July ,i! , 1986 Maycfr, City of Evanston, Cook County, Illinois Recorded In City Records: July 31 , 1986. Published in pamphlet form by authority of the Corporate Authorities at 2:30 p .m. on -3aby ram, 1986. August Attest- - Cit.j Clerk, Aitvofvanston, Cook County, Illinois A proved as to Legality and Form: ty Attorney -36-