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HomeMy WebLinkAboutORDINANCES-1985-113-O-85• ORDINANCE N0. 113-0-85 AN ORDINANCE providing for borrowing money and issuing $2,2400000 Corporate Purpose Bonds, Series 1985, of the City of Evanston, Cook County, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. WHEREAS, 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, said City is a home rule unit and as such may exercise any power or perform any function pertain- ing to its government and affairs, including, but not limited to, is the power to tax'and to incur debt; and WHEREAS, pursuant to the provisions of Sections 6(d) and 6(k) of said Article VII of said 1970 Constitution, the City has the power to incur debt payable from ad valorem tax receipts matur- ing within forty (40) years from the time it is incurred and with- out prior referendum approval; and WHEREAS, on the 27th day of August, 1973, the City Council of the City did adopt Ordinance 78-0-73 establishing the procedures to be followed in the borrowing of money for public corporate pur- poses 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 FOL- LOWED IN INCURRING INDEBTEDNESS FOR CORPORATE PURPOSES, ISSUING NON -REFERENDUM BONDS TO EVI- DENCE SUCH INDEBTEDNESS AND AUTHORIZING AND DIRECTING THE LEVYING 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, is now in full force and effect-; and WHEREAS, it is deemed to be necessary, essential and in the best interests of the inhabitants of the City to obtain funds to pay the cost of constructing certain projects set forth in the 1984-1988 Capital Improvement Program of the City, which projects • now require funds in the amount of $2,240,000; and 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 $2,240,000, and that such indebtedness be incurred in accordance with the procedures established in Ordinance No. 78-0-73, as amended, and without submitting the question of incur- ring such indebtedness to the electors of said City for their approval; NOW, THEREFORE, Be It Ordained by the City Council of the City of Evanston, Cook County, Illinois, as follows: -2- • Section. 1. In order to rase the sum of t2,240,000 presently needed for the purpose of paying the cost of certain projects set forth in the 1984-1988 Capital Improvement Program of the City, including police station renovation, construction of an animal shelter, fire station improvement, street paving, street lighting and preparation of the preliminary design for a parking garage, there shall be borrowed by, for and on behalf of the City of 'Evanston, Cook County, Illinois (the "City"), the sum of t2,240,000, and to evidence said loan general obligation bonds of the City (the "Bonds" or "Bond" as appropriate) shall be issued. The Bonds shall each be designated "Corporate Purpose Bond, Series 1985," shall be dated November 1, 1985 and shall also bear the date of authentication, shall be in fully registered • form, shall be in denominations of $5,000 each and any integral • multiple thereof (but no single Bond shall represent installments of principal maturing on more than one date), shall be numbered 1 and upward, and shall become due serially on January 1 of each of the years and in the amounts and bear interest as follows: Principal Amount Year of Maturity Rate of Interest t240,000 1987 8.00% 250,000 1988 8.00% 200,000 1989 .6.75`s 200,000 1990 6.70% 225,000 1991 7.00% 225,000 1992 7.10% 225,000 1993 7.300/0' 225,000 1994 7.40; 225,000 1995 7.6o%, 225,000 1996 7.75% -3- • Each Bond shall bear interest from its date or from the most recent interest payment date to which interest has been paid or duly provided for, whichever date is later, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on the first days of January and July of each year, commencing on July 1, 1986. Interest on each Bond shall be paid by check or draft of American National Bank and Trust Company of Chicago, in Chicago, Illinois,.or its successor, as bond registrar and paying agent (the "Bond Registrar"), to the person in whose name such Bond is registered at the close of business on the 15th day of the calendar month next preceding the interest payment date. The principal of the Bonds shall be payable in lawful money of the United States of America at the principal corporate trust office • of the Bond Registrar in Chicago, Illinois. The Bonds shall be executed on behalf of the City with the facsimile signature of its Mayor and attested with the facsimile signature of its City Clerk, and shall have impressed or imprinted thereon the City seal or facsimile thereof. 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 authentica- tion substantially in the form hereinafter set forth, duly executed -4- E 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 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 authentica- tion 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. . 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. The City is authorized to prepare, and the Bond Registrar, or an agent of either, 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 herein. Upon surrender for transfer or • -5- 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 satisfactory to the Bond Registrar and duly executed by the registered owner or his attorney 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 the same interest rate and maturity of authorized denom- inations for a like aggregate principal amount. 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 authenticate, date • and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Regis- trar shall not exceed the authorized principal amount of Bonds for such maturity less any amount of such Bonds which may 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 next preceding any interest payment date on such Bond to such interest payment date. The person in whose name any Bond shall be registered • _6- • 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 liability upon such Bond to the extent of the sum or sums so paid. In the event any of the Bonds are registered in the name of a securities depository which uses a book entry system, the standing of the registered owner to enforce any of the covenants herein may be established through the books and records of such securities de- pository or a participant therein. 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. Section 2. The Bonds shall be prepared in compliance with the National Standard Specifications for Fully Registered Municipal Securities, prepared by the American National Standards Committee. The Bonds, the certificate of authentication to be endorsed thereon and the form of assignment are all to be in substantially the following form: -7- • [Form of Bond - Face] UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK REGISTERED NO. Maturity Date January 1, Registered Owner: Principal Amount: CITY OF EVANSTON CORPORATE PURPOSE BOND, SERIES 1985 Dated Date November 1, 1985 Interest Rate REGISTERED CUSIP The City of Evanston, Cook County, Illinois (the "City for value received hereby promises to pay to the Registered Owner identified above, or registered assigns as hereinafter pro- vided, on the Maturity Date shown above, the Principal Amount shown 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 Dated Date of this Bond or from the most recent interest pay- ment date to which interest has been paid, whichever is later, at the Interest Rate per annum set forth above on January 1 and • July 1 of each year, commencing July 1, 1986 until said Principal Amount is paid. Principal of this Bond is payable in lawful money of the United States of America at the principal corporate trust office of American National Bank and Trust Company of Chicago, in Chicago, Illinois, as bond registrar and paying agent (the "Bond Registrar"). Payment of the installments of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the Bond Registrar at the close of business on the 15th day of the calendar month next preceding the interest payment date, and shall be paid by check or draft of the Bond Registrar mailed to such Registered Owner at the address as it appears on such registration books, or at such other address furnished in writing by such Registered • Owner to the Bond Registrar. For the prompt payment of this Bond, both principal and interest, as aforesaid, at maturity, and the levy of taxes suffi- cient for that purpose, the full faith, credit and resources of said City are hereby irrevocably pledged. Reference is hereby made to the further provisions of this Bond set forth on the reverse side hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall -9- • have been signed by the Bond Registrar. It is hereby certified and recited that all acts, condi- tions and things required by the Constitution and Laws of the State of Illinois, and including the procedures established by the City ordinance for the exercise of its home rule powers conferred by Section 6 of Article VII of said Constitution of the State of Illinois in issuing its full faith and credit bonds payable from ad valorem property tax receipts without prior referendum approval, to exist or to be done precedent to and in the issuance of this Bond, have existed and have been properly done, happened and been performed in regular and due form and time as required by law; that the indebtedness of the City of Evanston, represented by this Bond and the issue of which it forms a part, and including • all other indebtedness of the City, howsoever evidenced and in- curred, does not exceed any constitutional or statutory limitation and that provision 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 maturity. IN WITNESS WHEREOF, the City of Evanston, Cook County, Illinois, by its City Council, has caused this Bond to be executed with the duly authorized facsimile signature of its Mayor and attested by the duly authorized facsimile signature of its City Clerk, and its corporate seal or a facsimile thereof to be im- pressed or reproduced hereon, all as of the Dated Date shown above. [SEAL] Attesti (Facsimile Signature) City Clerk, City of Evanston, Cook County, Illinois. (Facsimile Signature) Mayor. City of Evanston, Cook County, Illinois. CERTIFICATE OF AUTHENTICATION Date of Authentication! This Bond is one of the Corporate Purpose Bonds, Series 1985, of the City of Evanston, Cook County, Illinois. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, as Bond Registrar, By Authorized Officer E [Form of Bond - Reverse Side] CITY OF EVANSTON, COOK COUNTY, ILLINOIS CORPORATE PURPOSE BOND, SERIES 1985 This Bond is one of an authorized issue of Bonds aggre- gating the principal amount of $2,240,000 (the "Bonds") being issued by the City for the purpose of paying the cost of certain projects constituting part of the 1984-1988 Capital Improvement Program of the City, pursuant to and in all respects in compliance with the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, and in compliance with the provisions of an ordinance adopted by the City Council of the City establishing the procedures for issuing full faith and credit • non -referendum bonds, and an ordinance authorizing the issuance of this Bond and the series of which it forms a part, duly published and now in full force and effect. The Bond Registrar shall not be required to transfer 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. This Bond is transferable by the registered holder here- of in person or by his attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in Chicago, Illinois, but only in the manner, subject to the limitations and • -12- • upon payment of the charges provided in the authorizing ordinance, and upon surrender and cancellation of this Bond. Upon such transfer, a new Bond or Bonds of authorized denominations of the same interest rate and maturity and for the same aggregate prin- cipal amount will be issued to the transferee in exchange therefor. The Bonds are issued in fully registered form in the de- nomination of $5,000 each or authorized integral multiple thereof. This Bond may be exchanged at the principal corporate trust office of the Bond Registrar for a like aggregate principal amount of Bonds of the same interest rate and maturity of other authorized denominations, upon the terms set forth in the authorizing ordi- nance. • The City and the.Bond Registrar may deem and treat the registered holder hereof as the absolute owner hereof for the pur- pose of receiving payment of or on account of principal hereof 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. • -13- �J • ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Bond, and rights thereunder, and does hereby constitute and appoint as attorney to transfer the said Bond on the books kept for regis- tration 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. -1�I- • Section 3. For the purpose of prov_din. funds required to pay the interest on said Bonds promptly when and as the same falls due and to pay and discharge the principal thereof at maturity, there shall be and there is hereby levied upon all of the taxable property within the City, in each year while any of said Bonds are outstanding, a direct annual tax sufficient for that purpose, and there shall be and there is hereby levied on all of the taxable property in the City, in addition to all other taxes, the follow- ing direct annual tax, to -wit: For the Year A Tax Sufficient To Produce The Sum Of 1985 3 433,010.42 for interest and principal up to January 1, 1987 1986 t 396,237.50 for interest and principal 1987 t 326,237.50 for interest and principal 1988 t 312,737.50 for interest and principal 1989 3 324,337.50 for interest and principal 1990 $ 308,587.50 for interest and principal 1991 $ 292,612.50 for interest and principal 1992 t 276,187.50 for interest and principal 1993 $ 259,537.50 for interest and principal 1994 $ 242,437.50 for interest and principal • 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 -15- • in advance of the collection of said taxes herein levied, and when said taxes shall have been collected reimbursement shall be made to said funds in the amount thus advanced. In the event that funds derived from sources other than described above are made available for the purpose of paying any of such interest or principal, the City Council, by ordinance, shall direct the deposit of such funds with the Bond Registrar herein designated, and further, in and by such ordinance, shall direct the abatement of the tax so levied by the amount deposited. A certi- fied copy of such ordinance shall be filed with the County Clerk prior to the extension of such tax for collection. Section 4. Forthwith as soon as this ordinance becomes • effective, a copy hereof, certified to by the Clerk of the City, • which certificate shall recite that this ordinance has been passed by the City Council of the City, and published, shall be filed with the County Clerk of Cook County, Illinois, and said County Clerk shall, in and for each of the years 1985 to 1994, both years in- cluded, ascertain the rate per cent required to produce the aggre- gate tax hereinbefore provided to be levied in said year, and said ordinance shall constitute authority for said County Clerk to ex- tend the same for collection on the tax books in connection with other taxes levied in each of said years, respectively, in and by the City for general corporate purposes of the City, and in each of said years, such annual tax shall be levied and collected by -16- • the City in lice manner as taxes for general corporate purposes for each of said years are 'Levied and collected, and in addition to and in excess of all other taxes. 'When collected the taxes hereby levied shall be placed to the credit of a special fund created in Section 6 hereof and designated "Corporate Purpose Bonds, Series 1985, Debt Service Fund". A certified copy of this bond ordinance shall also be filed with the Bond Registrar. Section 5. Forthwith after this ordinance has become effective as provided by law, the Bonds herein authorized shall be executed and delivered to The First National Bank of Chicago the purchaser thereof, upon receipt of • the purchase price therefor, same to be not less than the par value Is of the Bonds plus accrued interest to the date of delivery and a premium of t 13.55 , and the contract for the sale of the Bonds to said purchaser, heretofore entered into, shall be and the same is hereby in all respects ratified, approved and confirmed. It is hereby found and determined that such contract of sale is in the best interests of the City and 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 the contract of the purchase of the Bonds. -17- • ,• 9 Section 6. The accrued interest and any premium re- celved at the time of delivery of the Bonds are hereby appro- pr'-ated for the purpose of paying a portion of the first interest due on the Bonds on July 1, 1986. Such amount shall be deposited in the "Corporate Purpose Bonds, Series 1985, Debt Service Fund" (the "Fund"), which is hereby created, and which Fund shall be used for the payment of principal of and interest on the Bonds. Moneys derived from the taxes herein levied in Section 4 shall also be deposited in the Fund and are hereby pledged to and appro- priated for the sole and only purpose of paying principal of and interest on the Bonds when and as the same become due. Any inter- est received on investment of moneys in the Fund, unless otherwise directed by the City Council, shall be retained in the Fund for payment of debt service on the interest payment date occurring next after such interest is received. The proceeds received from the sale of the Bonds shall be deposited in the "Bond Series 1985 - 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 project and the issuance of the Bonds, and for which the proceeds of sale are hereby appropriated. The City Council reserves the right, as it becomes necessary from time to time, to revise the list of projects hereinabove set forth, -18- to change priorities, to revise cost allocations between projects and to substitute projects, in order to meet current needs of the City. Section 7. The City recognizes that the initial pur- chasers and the owners from time to time of the Bonds will have accepted them on, and paid therefor a price which reflects, the understanding that interest thereon is exempt from federal income taxation under laws in force at the time the Bonds shall have been delivered. In this connection, the City agrees that it will take no action which may render the interest on any of the Bonds subject to federal income taxation. The Mayor, the City Clerk and the Comptroller of the • City, or any of them, are hereby authorized to execute on behalf of the City an arbitrage certificate to assure the initial pur- chasers and the owners from time to time of the Bonds that the proceeds of the Bonds are not expected to be used in a manner which would or might result in the Bonds being "arbitrage bonds" under Section 103(c) of the Internal Revenue Code of 1954, as amended (the "Code"), or the regulations of the United States Treasury Department currently in effect or proposed. Such arbi- trage certificate shall constitute a representation and certifica- tion of the City, and no investment of Bond proceeds or of moneys accumulated to pay the Bonds herein authorized shall be made in violation of the expectations prescribed by said arbitrage certif- icate. • -19- • The City further recognizes that Section 103Q) of the Code requires the Bonds to be issued and to remain in fully regis- tered form in order that interest thereon is exempt from federal income taxation under laws in force at the time the Bonds are de- livered. 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. Section 8. The City covenants that it will at all times retain a Bond Registrar with respect to the Bonds, that it will maintain at the designated office of such Bond Registrar a place or places where Bonds may be presented for payment or registration of transfer or exchange, and that it will require that the Bond Registrar properly maintain the Bond Register and perform the other duties and obligations imposed upon it by this ordinance in a manner consistent with the standards, customs and practices of the municipal securities industry. 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 modifica- tion thereby, the Bond Registrar by its acceptance of duties here- under, agrees as follows: • -20- • (a) to act as bond registrar, paying agent, authenticating agent, and transfer agent as provided herein; (b) to maintain a current list.of the names and addresses 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: (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 certificate with respect to Bonds can- celled 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 executing the certificate of authentication on any Bond, and by such execution the Bond Registrar shall be deemed to have certi- fied to the City that it has all requisite power to accept and has accepted 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 willful wrongdoing. The Bond Registrar shall, however, be responsible for any representation in its certificate of authen- tication on the Bonds. -21- • The City may remove the Bond Registrar at any time. In case at any time the Bond Registrar shall resign, shall be removed, shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or if a receiver, liquidator or conservator of the Bond Registrar, or of the property thereof, shall be appointed, or if any public officer shall take charge or control of the Bond Registrar, or of the property or affairs thereof, the City cov- enants and agrees that it will thereupon appoint a successor Bond Registrar. The City shall mail notice of any such appointment made by it to each registered owner of any Bond within twenty (20) days after such appointment. Any Bond Registrar appointed under the provisions of this section shall be a bank, trust company or national banking association. 0 Section 9. The provisions of this ordinance shall con- stitute a contract between the City and the registered owners of the Bonds. Any pledge made in this ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the City shall be for the equal benefit, protection and security of the owners of any and all of the Bonds. All of the Bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinc- tion of any of the Bonds over any other thereof. Section 10. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such -22- • conflict hereby repealed, and this ordinance shall be in full force and effect upon its passage, approval and the publication thereof in pamphlet form, as provided by law. ADOPTED! October 28 , 1985. VOTE: AYE: Aldermen Raden, Korshak, Morton, Summers, Wold, Collens, Rainey, Larson, Ream, Warshaw, Rudy, Juliar, Thiel, Drummer, Davis, Brady NAY: NONE ABSENT: Aldermen Bleveans and Nelson E City Clerk • APPROVED: Ma*r -23-