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HomeMy WebLinkAboutORDINANCES-1983-098-O-83• ORDINANCE NO. 98-0-83 AN ORDINANCE providing for borrowing money and issuing $11,625,000 Corporate Purpose Bonds, Series.1983, of the City of Evanston, Gook 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 limitedto, 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 continuing certain projects set forth in the Capital Improvement Program of the City, including, providing funds • to install a comprehensive street lighting program, in accordance •. with preliminary plans now on file in the office of the City Clerk, and which projects now require additional funds in the amount of not less than $4,500,000; 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; and WHEREAS, pursuant to Ordinance No. 63-0-B2 adopted on June 14, 1982, the City authorized the issuance and delivery of $6,500,000 Corporate Purpose Bonds, Series 1982, such bonds being dated July 1, 1982, due serially in varying amounts on January 1 of each of the years 1985 to 1996, inclusive, all of which are now -2- • outstanding and unpaid (hereinafter designated the "Outstanding Bonds"); and WHEREAS, it is deemed to be desirable and in the best interests of the inhabitants of the City to refund the Outstanding Bonds in order to achieve a savings in interest cost; and WHEREAS, it is in the best interests of the City to issue general obligation bonds in the aggregate principal amount of $11,825,000 to provide funds for refunding purposes and for the Capital Improvement Program, 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: Section 1. In order to raise the sum of $11,825,000 presently needed for the purpose of paying the cost of projects in the Capital Improvement Program and for paying the cost of refund- ing the Outstanding Bonds, as set forth in the preamble of this ordinance, there shall be borrowed by, for and on behalf of the City of Evanston, Cook County, Illinois, the sum of $11,825,000, and to evidence said loan general obligation bonds of the City (the "Bonds") shall be issued. The Bonds shall each be designated "Corporate Purpose Bond, Series 1983," shall be dated October 1, 01983, and shall also bear the date of authenticzflion,, shall be in fully registered form, shall be in denominations: of $5, 000 each and any integral multiple thereof (but no single, -Mond shall repre— sent installments of principal maturing on more Shan. 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. beerinterest as folloris ( subject to the right of prior redenp`_on hereinafter set Forth): Principal Year of P.zte of Amount Maturity Interest S325, 000 1986 9-..75% 300)000 1987 10.00 300,000 1988 10.00 325,000 1989 10..00 325,000 1990 10.00 325,000 1991 5.50 3501000 • 1992 8-c0 375,000 1993 8_00 375,000 1994 8.D0 400,000 1995 g-on 425,000 1996 K20 450,000 1997 8;3V 500,000 1998 8..40 525,000 1999 8_5D 525,000 2000 9.60 575,000 2001 8.70 600,000 2002 8.75 650,000 2003 8.75 7 00, 000 2004 8.75 725,000 2005 8.75 8 00, 000 2006 8.75 850,000 2007 8-75 925,000 2008 8-75 175,000 2009 8-75 . Each Bond shall bear interest from its date or prom the most recent interest payment date to which interest has been paid or dully provided for, whichever date is later, such interest -4- E (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, 19b4. 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 naine such Bond is registered at the close of ousiness on the 17th day of the calendar month next preceding the interest payment date. The principal of the Bonds and redemption premium, if any, shall be payable in lawf ul money of the United States of America at the principal corporate trust office of the Bond Registrar in Chicago, Illinois. • The Bonds shall oe 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 oe 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 nave thereon a certificate of authentica- r� tion substantially in the form hereinafter set forth, duly executed by the Bond Registrar as authenticating agent of the City and show- ing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under 0 -5- • 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 authentica- tion 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 reg' stration and for the transfer of the Bonds as provided in this ordnance 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 shall keep custody of, multiple Bond. blanks executed by the City for use in the transfer and exchange of Bonds. Upon surrender for transfer 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 a new fully registered Bond or Bonds of the same maturity of authorized denominations for a like aggregate principal amount. Any fully • • registered Bond or Bonds may be exchanged at said office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other authorized denominations. 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 Registrar shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements. 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 Bend to such • interest payment date, nor to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a period of fifteen (15) days next preceding the mailing of a notice of redemption of any Bonds. 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 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 0 • depository wnich uses a book entry system, the standing, of ttie registered owner to enforce any of the covenants herein may be establisned tnrough the books and records of such securities de- pository or a participant therein. No service charge shall oe made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sui'ficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or, exchange of Bonds, except that no such payment may be required in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrenderea for redemption. Bonds due on or after January 1, 1995 are redeemable • prior to maturity at the option of the City, in whole or in part on January 1, 1994 or on any interest payment date thereafter, and if less than all of the outstandinb Bonds are to be redeemed,. the Bonds to be called shall be called in the inverse order of their maturity and if less than ail of a single maturity is so redeemed then by lot within a maturity in the manner hereinafter provided, the Bonds to be redeemed at the redemption price of par plus a premium of 1% of the principal amount plus accrued interest to the date fixed for redemption. The Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof. In the event of the redemption of less than all the Bonds of like maturity the aggre- gate principal amount thereof to be redeemed shall be $5,000 or an 0 -b- • integral multiple thereof and the Bond Registrar shall assign to each Bond of such maturity a distinctive number for each $5,000 principal amount of such Bond and shall select by lot from the numbers so assigned as many numbers as, allocating $5,000 to each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. The City shall, at least forty-five (45) days prior to the redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar), notify the Bond Registrar 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 outstanding Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected not more than sixty (60) days prior to the re— demption date by the Bond Registrar. 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. Section 2. Unless waived by any holder of Bonds to be redeemed, notice of the call for 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 at least thirty • (30) days and not more than sixty (60) days prior to the date fixed for redemption to the 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. All notices of redemption shall state: (1) the redemption date, (2) the redemption price, (3) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective prin- cipal amounts) of the Bonds to be redeemed, (4) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for re- demption, and that interest thereon shall • cease to accrue from and after said date, and (5) the place where such bonds are to be sur- rendered 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 redemp- tion 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 redemp- tion date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall • -10- • default in the payment of the redemption price) such Bonds or por- tions 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. Installments of 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 holder a new Bond or Bonds of the same maturity 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. Section 3. The Bonds shall be prepared in compliance with the National Standard Specifications for Fully Registered Municipal Securities, prepared by the American National Standards Institute. The Bonds, the certificate of authentication too be endorsed thereon and the form of assignment are all to be in substantially the following form: • (Form of Bond - Face) No. UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK CITY OF EVANSTON CORPORATE PURPOSE BOND, SERIES 1983 The City of Evanston, Cook County, Illinois, for value received hereby promises to pay to the Registered Owner identified below, or registered assigns as hereinafter provided, on the matur- ity date shown below: Dated Date: October 1, 1983 CUSIP • Registered Owner: Maturity Date Principal Amount Rate of Interest 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 prin- cipal amount from the date of this Bond or from the most recent interest payment 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, 19M until. said prin- cipal sum is paid. Principal of this Bond, and redemption premium, if any, are 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 • -12- • and paying agent (the "Bond Registrar"). Payment of the install- men,s 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 17th 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 Uwner at the. address as it appears on such registration books, or at such other address furnished in writing by such Registered Owner to tiie Bond Registrar. For the prompt payment of tnis Bond, botal principal and interest, as aforesaid, at maturity, and the levy of taxes suffi- cient for tnat purpose, the full faitn, 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 snall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall 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 Illinoi.s 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 indebted- ness of-said,City of Evanston, represented by this Bond and the issue of which it forms a part, and including all other indebtedness of said City, howsoever evidenced and incurred, 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 said, 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 S is City Clerk, and its corporate seal or a facsimile thereof to be im- pressed or reproduced hereon, all as of the first day of October, 1983. [SEAL] Attest: (Facsimile Signature) City Clerk, City of Evanston, • Cook County, Illinois. -14- (Facsimi-le Signature) P4ayor, City of Evanston, Cook County, Illinois. • . CERTIFICATE, OF AUTHENTICA^lION Date of Authentication: This Bona is one of the Bonds described in the within mentioned ordinance and is one of the Corporate Purpose Bonds, Series 19dj, of the City of Evanston, Cook County, Illinois. AMERICAN NATIONAL BANK AND Tr,U&T COMPANY OF CHICAGO, as Bond Registrar, By Authorized Officer (Form of bond - Reverse Side) • CITY OF EVANSTON, COOK COUNTY, ILLINOIS CORPORATE PURPOSE, GOAD, SERIES lydj This Bond is one of an authorized issue of bonds aggregat- ing the principal amount of �li,625,000 (the "Bonds") meing issued by the City for the purpose of paying the cost of certain projects constituting part of the Capital Improvement Program of the City, and for paying the cost of refunding $b,500,000 currently outstand- ing bonds of the City, pursuant to and in all respects in compliance with the appl-icable provisions of Section b* 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 said City establishing t1e procedures for issuing full faith and credit non -referendum bonds, and an ordinance authorizing the issuance of 0 - —15— • this Bond and the series of which it forms a part, duly publisned, and now in full force and effect. Tne Bonds maturing on or after January 1, 1995 are re- deemable prior to maturity at the option of the City, in whole or in part on January 1, 1994 or on any interest payment date there- after, and if less than all of the outstanding h5onds are to be redeemed, the Bonds to be called snali oe called in the inverse order of their maturity and if less than all of a single maturity is so redeemed tnen by lot within a maturity in the manner herein- after provided, the Bonds to be redeemed at the redemption price of par plus a premium of 1/o of the principal amount plus accrued interest to the date fixed for redemption. • The Bonds shall be redeemed only in the principal amount of S5,OOU each and integral multiples thereof. In the event of the redemption of less than all the Bonds of like maturity the aggregate principal amount thereof to be redeemed shall be ;$5,000 or an integral multiple thereof and the Bond Registrar shall assign to each Bond of such maturity a distinctive number for each $5,UUU principal amount of sucn Bond and shall select by lot from the numbers so assigned as many numbers as, allocating $5,O00 to each number, snall equal the principal amount of such bonds to be re- deemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for eaen number assigned to it and so selected. • e -16- • Notice .of any such redemption shall be sent by registered or certified mail not less than thirty (30) days nor more than sixty (6U) days prior to the date fixed for redemption to the registered owner of eacn Bond to be redeemed at the address shown on the registration booxs of the City maintained by the Bond Regis- trar or at such other address as is furnished in writing by such registered owner to the Bond Registrar. When so called for re- demption, this Bond will cease to bear interest on the specified redemption date, provided funds for redemption are on deposit at the place of payment at that time. Tne 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, nor to transfer or exchange any Bond after notice calling such Bond for redemption has been ;nailed, nor during a period of fifteen (15) days next preceding mailing of a notice of redemption of any i3onds. This Bond is transferable by the registered nolder nereof 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 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 maturity and for the same aggregate principal amount will be • - -17- • issued to the transferee in exchange therefor. The Bonds are issued in fully registered form in the de- nomination of $7,000 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 maturity of other authorized denominations, upon the terms set forth in the authorizing ordinance. The City and the Bond Registrar may deem and treat the registerea holder hereof as the aosolute owner hereof for the pur- pose of receiving payment of or on account of principal 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. ASSIGiJ1qElgT FOh VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Bond, and does hereby irrevocably constitute and appoint American National Bank and Trust Company of Chicago, in Chicago, Illinois, or its successor, as Bond Registrar to transfer the said Bond on the books kept for registration thereof, with full power of • � -1tS- • 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. is Section 4. For the purpose of providing 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 said 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 said City, in addition to all other taxes, the follow- ing direct annual tax, to -wit: Wor the Year A Tax Sufficient To Produce The Sum Of 1983 $ 1,295,312.50 for interest up to January 1, 1985 1984 $ 1,361,250.00 for interest and principal 1985 $ 1,304, 562. 50 for interest and principal 1986 $ 1,274,562.50for interest and principal 1987 $ 1 ,269,562.50 for interest and principal 19�8 $ 1,237,062.5ofor interest and principal 1989 $ 1,204,562.50 for interest and principal 1990 $ 1,198,687.50for interest and principal 1991 $ 1 ,195, 687.50 for interest and principal 1992- $ 1,165,687.50for interest and principal 1993 $ 1,160,687.50for interest and principal 1994 $ 1,153,687.50for interest and principal • 1995 $ 1,143,837.50for interest and principal 1996 $ 1 ,156,487.50for interest a-:d princ; Dal' 1997 $ 1,139,487.50for interest and principal 1998 $ 1,094,862.50for interest and principal 1999 $ 1,099,712.50for interest and principal 2000 $ 1,074,687.50far interest and principal 2001 $ 1 ,072,187. 50for interest and principal 2002 $ 13065,312.50for interest and principal 20o3 $ 1,029,062.50for interest and principal 2004 $ 1,040,625.00for interest and principal 2005 $ 1 ,020,625.001 or interest and principal 2006 $ 1 ,021 ,250.o0for interest and principal 2007 $ 190,312.50 for interest and principal -2 0- 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 f unds,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 certified • copy of such ordinance shall be filed with the County Clerk prior to the extension of such tax for collection. Section 5. Forthwith as soon as this ordinance becomes effective, a copy hereof, certified to by the Clerk of said City, which certificate shall recite that this ordinance has been passed by the City Council of said 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 1983 to 2007, both years included, ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in said year, and said ordinance shall constitute authority for said County Clerk to extend the same for collection on the tax books in connection with other taxes levied in each of said years, respectively, in and 0 - -21- *by said City for general corporate purposes of said City, and in r each of said years, such annual tax shall be levied and collected by said City in like 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. 1rr.en collected the taxes hereby levied shall be placed to the credit of a special fund to be designated "Corporate Purpose Bonds, Series 1983, dated October 1, 1983, Debt Service Fund," which is hereby irrevocably pledged to and shall be used solely for the purpose of paying principal of and interest on the Bonds herein authorized when same mature. A certified copy of this bond ordinance shall also be filed with the Bond Registrar. Section 6. Forthwith after, this ordinance has become •effect{ ve as provided by 12w, the Bonds herein authorized shall be executed and delivered to Northern Trust Company and Associates J. the purchaser thereof, upon receipt of the purchase price therefor, same to be not less than the par value of the Bonds plus accrued interest to the date of delivery and a premium of $ 101.00 and the contract for the sale of the Bonds A. said purchaser, heretofore entered into, shall be and the se.ne is hereby in all respects ratified, approved and confirmed. Section 7. The City recognizes that the in.ialial 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 • -2 2- 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 purchasers 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 arbitrage certificate shall constitute • a representation and certification 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 pre- scribed by said arbitrage certificate. The City further recognizes that Section 103(j) 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. All moneys derived from the issuance of the • -2 3- • Bonds hereby authorized shall be used only for the .purposes herein specified. Not less than $4,500,000 of the principal proceeds shall be used for the purpose of paying the cost of certain projects constituting part of the Capital Improvement Program of the City. Simultaneously with the delivery of the Bonds, $7,325,000 of the principal proceeds of the Bonds, or such lesser amount as may be necessary, shall be used for the payment of expenses asso— ciated with the issuance of the Bonds, and refunding the Outstanding Bonds and providing for the payment of the principal of and interest on the Outstanding Bonds as the same become due. The use and appli— cation of such funds shall be pursuant to an Escrow Ag.reement to be hereafter authorized by the City Council. Accrued interest payable on the Bonds shall be and is • hereby appropriated for the purpose of paying first interest due on the Bonds and, to that end, is hereby ordered deposited into the Debt Service Fund herein created, together with the proceeds of taxes herein levied for the payment of the Bonds. Interest re— ceived from investment of deposits in the Debt Service Fund, unless otherwise directed by the City Council, shall be retained in the Debt Service Fund for payment of the Bonds on the interest payment date next after such interest is received. Section 9. Except for the taxes heretofore levied and collected and to be used to pay interest due on the Outstanding Bonds due on January 11 1984, all other proceeds received from any taxes heretofore levied to pay principal and interest on the • -24- Outstanding Bonds shall be deposited into the Debt Service Fund and used to pay principal of and interest on the Bonds in accord— ance with the provisions of this ordinance. To the extent possible, said taxes heretofore levied to pay the Outstanding Bonds shall be abated. Section 10. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby repealed, and this ordinance shall be in full force and effect upon its passage, approval and the publication thereof as provided by law. ADOPTED:4p,6��( , 1983 • VOTE: AYE: Aldermen Pabst, Barr, Heaston, Neems, Davis, Raden, Korshak, Morton, Summers, wold, Nelson, Bieveans, Collens, Rainey, Romain, Ream, Borah. NAY: NONE ABSENT: Alderman Juliar APPROVED: Attest: Mayor azu� Y, Aot� City Clerk -25-