HomeMy WebLinkAboutORDINANCES-1981-097-O-810
ORDINANCE NO. 97-0-81
AN ORDINANCE providing for borrowing money
and issuing $5,100,000 Corporate Purpose Bonds,
Series 1981-B, 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, 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 pertaining to its govern-
• ment and affairs, including, but not limited to, 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 of
Evanston has the power to incur debt payable from ad valorem tax
receipts maturing within forty (40) years from the time it is in-
curred and without prior referendum approval; and
WHEREAS, on the 27th day of August, 1973, the City Council
of said City did adopt Ordinance 78-0-73 establishing the procedures
to be followed in the borrowing of money for public corporate pur-
poses of said City and the issuing of full faith and credit bonds of
•
said 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 DI-
RECTING 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 of Evanston to
• obtain funds to pay the cost of continuing certain projects set
forth in the Capital Improvement Program of the City, including
providing additional funds for construction of the new City Yards
Complex, funds to install a comprehensive street lighting program,
and funds for a street paving program for two areas of the City,
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 $5,100,000; and
WHEREAS, it is necessary that additional funds be pro-
vided for said projects in order to meet the needs of the inhabitants
of the City, and it is necessary for that purpose that the sum of
•
$5,100,000 be borrowed at this time and in evidence of such in-
debtedness full faith and credit bonds of the City be issued in the
principal amount of $5,100,000, and that such indebtedness be in-
curred in accordance with the procedures established in Ordinance
No. 78-0-73, as amended, and without submitting the question of
incurring 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 $5,100,000
presently needed for the purpose of paying the cost of capital im-
provement projects 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 $5,100,000 and to evi-
dence said loan negotiable coupon bonds of said City shall be
issued. Said bonds shall each be designated "Corporate Purpose Bond,
Series 1981-B," be dated October 1, 1981, be numbered consecutively
from 1 to 1020, inclusive, be of the denomination of $5,000 each,
and become due serially on January 1 of each of the years and in the
amounts and bear interest as follows (subject to the right of prior
redemption hereinafter recited):
•
Serial
Numbers,
Principal
Year of
Rate of
Both Inclusive
Amount
Maturity
Interest
1
to
40
$200,000
1983
11.20%
41
to
115
375,000
1984
11.20
116
to
190
375,000
1985
10.90
191
to
2.65
375,000
1986
9.50
266
to
340
375,000
1987
9.60
341
to
415
375,000
1988
9.80
416
to
490
375,000
1989
10.00
491
to
565
375, 000
1990
10.25
566
to
640
375,000
1991
10.50
641
to
720
400,000
1992
10.75
721
to
820
500,000
1993
11.00
821
to
920
500,000
1994
11.10
921
to
1020
500,000
1995
11.20
provided, however, that of said bonds, bonds numbered 721 to 1020,
inclusive, becoming due on January 1 of each of the years 1993 to
1995, inclusive, are subject to redemption prior to maturity, at
• the option of the City, in whole or in part on any interest payment
date on or after January 1, 1992, at par and accrued interest, plus
a premium of 2% of the principal amount. If less than all of the
bonds are called for redemption at any time, they shall be called
in the inverse order of their maturity and by lot within a maturity
if less than a whole maturity is called.
Notice of the exercise of the option to redeem any bonds
that are redeemable prior to their maturity shall be given by one
publication in The Bond Buyer, published in the City of New York,
New York, or in the event it ceases publication then in a financial
newspaper published either in the City of Chicago, Illinois, or in
the City of New York, New York, at least thirty (30) days prior to
•
the date fixed for redemption thereof, and by filing such notice
with the paying agent for said bonds at least thirty (30) days
prior to the date fixed for redemption thereof. Such notice shall
designate the date fixed for redemption, the amount and numbers of
the bonds called for redemption, the terms of redemption, and upon
the giving of such notice and providing funds for the redemption
of said bonds interest shall cease on the bonds called for redemp-
tion from and after the redemption date so specified.
Interest on said bonds shall be payable semiannually on
the first day of January and July in each year, beginning on July
1, 1982, which said interest payments to date of maturity of prin-
cipal shall be evidenced by proper interest coupons attached to
• each bond and maturing on the dates herein provided. Both principal
and interest shall be payable in lawful money of the United States
of America at BankAmerica Securities Services Company of New York (A Limited;
Purpose Trust Company)
in the City of New York , New York .
The facsimile seal of said City shall be printed on each
of said bonds and said bonds shall be signed by the Mayor by his
duly authorized facsimile signature, be attested by the Clerk of
said City, and said coupons shall be signed and attested by said
officials, respectively, by their respective facsimile signatures,
and said officials, by the execution of said bonds, shall adopt as
and for their own proper signatures their respective facsimile
-5-
i
signatures appearing on said coupons.
Section 2. The bonds hereby authorized shall be payable
to bearer, provided, however, that such bonds may be subject to
registration.as to principal in the name of the holder on the books
of the Comptroller of said City, such registration to be evidenced
by notation of said Comptroller on the back of such bonds so regis-
tered. No bond so registered shall be subject to transfer, except
upon such books and similarly noted on the back thereof, unless the
last registration shall have been to bearer. Such registration of
any of said bonds shall not, however, affect the negotiability of
the coupons attached to said bonds, but such coupons shall continue
negotiable by delivery merely.
0 Section 3. Each of said bonds, the interest coupons to
be attached thereto and the form of registration shall be in sub-
stantially the following form:
10 -6-
•
0,
Number
(Form of Bond)
UNITED STATES OF AMERICA
STATE.OF ILLINOIS COUNTY OF COOK
CITY.OF EVANSTON
CORPORATE PURPOSE BOND, SERIES 1981-B
$5,000
KNOW ,ALL MEN BY THESE PRESENTS, that the City of Evanston,
Cook County, Illinois, hereby acknowledges itself to owe and for
value received hereby promises to pay to bearer or, if this bond
be registered, to the registered holder hereof, the sum of FIVE
THOUSAND DOLLARS ($5,000) on the first day of January, , to-
gether with interest on said sum from the date hereof until paid
at the rate of
per cent ( %) per annum,
payable semiannually on January 1 and July 1 in each year, begin-
ning on July 1, 1982, upon presentation and surrender of the
respective interest coupons hereto attached as they severally be-
come due and payable.
Both principal and interest are hereby made payable in
lawful money of the United States of America at
, in the City of
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.
This bond is one of a series of bonds being issued by
said City for the purpose of paying the cost of certain projects
constituting part of the 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 said 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.
This bond is one of an authorized issue of $5,100,000,
being numbered from 1 to 1020, inclusive, of the denomination of
$5,000 each, all of like date, tenor and effect, except as to
number, maturity, rate of interest and privilege of redemption.
Of said bonds, bonds numbered 721 to 1020, inclusive, becoming due
on January 1 of each of the years 1953 to 1995, inclusive, are
subject to redemption prior to maturity, at the option of the City,
in whole or in part on any interest payment date on or after January
1, 1992, at par and accrued interest, plus a premium of 2% of the
r�
u
principal amount. If lessthan all of.the bonds are called for
redemption at any time, they shall be called in the inverse order
of their maturity and by lot within a maturity if less than a whole
maturity is called.
Notice of the exercise of the option to redeem any bonds
that are redeemable prior to their maturity shall be given by one
publication in The Bond Buyer, published.in the City of New York,
New York, or in the event it ceases publication then in a financial
newspaper published either in the City of Chicago, Illinois, or in
the City of New York, New York, at least thirty (30) days prior to
the date fixed for redemption thereof, and by filing such notice
with the paying agent for said bonds at least thirty (30) days prior
to the date fixed for redemption thereof. Such notice shall desig-
nate the date fixed for redemption, the amount and numbers of the
bonds called for redemption, the terms of redemption, and upon the
giving of such notice and providing funds for the redemption of said
bonds interest shall cease on the bonds called for redemption from
and after the redemption date so specified.
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
0 -9
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 in-
debtedness of said City of Evanston, represented by this bond and
the issue of which it forms a part, and including all other in-
debtedness of said City, howsoever evidenced and incurred, does not
exceed any constitutional or statutory 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 said
City sufficient to pay the interest hereon as the same falls due
,a and also to pay and discharge the principal hereof at maturity.
This bond is subject to registration as to principal in
the name of the holder on the books of the City Comptroller, such
registration to be evidenced by notation of such Comptroller on the
back hereof, and after such registration no transfer hereof, except
when noted upon such books and similarly noted hereon, shall be
valid unless the last registration shall have been to bearer.
Registration hereof shall not affect the negotiability of the
coupons hereto attached, which shall continue negotiable by delivery
merely, notwithstanding registration hereof.
IN WITNESS WHEREOF, said City of Evanston, Cook County,
Illinois, by its City Council,.has caused its facsimile -seal to be
printed hereon, and this bond to besigned by the Mayor of said
City by his duly authorized facsimile signature and attested by
its City Clerk, and the coupons hereto attached to be signed and
attested by said officials, respectively, by their facsimile signa-
tures, and said officials, by the execution hereof, do adopt as and
for their own proper signatures their respective facsimile signa-
tures appearing on said coupons, all as of the first day of October,
1981.
Attest:
City Clerk,
City of Evanston,
Cook County, Illinois.
[SEAL]
Number
(Facsimile Signature)
Mayor,
City of Evanston,
Cook County, Illinois.
(Form of Coupon)
On the first day of
, 19_ *(unless the bond
to which this coupon is attached has been called for prior redemp-
tion as therein recited), the City of Evanston, Cook County,
Illinois, will pay to bearer
Dollars ($ ) in lawful money of the United States of America
-11-
t
at
in the City of , for interest due that
day on its Corporate Purpose Bond, Series 1981-B, dated October 1,
1981, No.
Attest:
(Facsimile Signature)
City Clerk,
City of Evanston,
Cook County, Illinois.
(Facsimile Signature)
Mayor,
City of Evanston,
Cook County, Illinois.
*(The clause within the parentheses shall be inserted in all cou-
pons attached to bonds numbered 721 to 102.0, inclusive, repre-
senting interest maturing after the optional date of the bond
to which it is attached.)
(Form for Registration as to Principal)
Date of Signature of
Registration Name of Registered Owner City Comptroller
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,
-12-
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:
For the Year
A Tax Sufficient
To Produce The Sum Of
1981
$ 873,078.13
for
interest
and
principal
up
to JarYuary 1,
1983
1982
$ 891 ,062.50
for
interest
and
principal
1983
$ 849,062.50
for
interest
and
principal
1984
$ 808,187.50
for
interest
and
principal
1985
$ 772,562.50
for
interest
and
principal
1986
$ 736 , 562.50
for
interest
and
principal
1987
$ 699,812.50
for
interest
and
principal
1988
$ 662,312.50
for
interest
and
principal
1989
$ 623,875.00
for
interest
and
principal
1990
$ 609,500.00
for
interest
and
principal
1991
$ 666,500.00
for
interest
and
principal
1992
$ 611 ,500.00
for
interest
and
principal
1993
$ 556,000.00
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
$'1 -13-
ithe 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 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 paying agent herein desig-
nated, 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 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 1981 to 1993, both years
included, 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
-14-
•
0 said City for general corporate purposes of said City, and in 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, and when collected the taxes
hereby levied shall be placed to the credit of a special fund to
be designated "Corporate Purpose Bonds, Series 1981-B, dated
October 1, 1981, Debt Service Fund," which is hereby irrevocably
pledged to and shall be used solely for the purpose of paying prin-
cipal of and interest on the bonds herein authorized when same
mature.
Section 6. The funds derived from such levy shall be
and the same are hereby appropriated and set aside for the sole
• and only purpose of paying principal of and interest on said bonds
when and as the same become due. The funds derived from the sale
of said bonds shall be and they are hereby appropriated and set
aside for the purpose of providing funds for the Capital Improve-
ment Program, as hereinbefore.set out.
The proceeds of sale of the bonds will be used and de-
voted with due diligence for the purpose as provided herein, and
said City represents and certifies as follows with respect to the
bonds:
-15-
C7
(a) The City has heretofore incurred or within
six months after delivery of the bonds expects to
incur, substantial binding obligations with respect
to the projects of the Capital Improvement Program
herein authorized, such obligations comprising bind-
ing contracts for work on the projects in an amount
not less than $100,000.
(b) Over $4,335,000, being an amount not less
than 85% of the principal proceeds derived from the
sale of the bonds and deposited in the Project Fund
will be expended on or before September 1, 1984 for
the purpose of paying the cost of the projects of the
Capital Improvement Program herein authorized, said
date being within three years following the date of
issue of the bonds.
(c) All of the principal proceeds of the bonds
and the investment earnings thereon will be used,
needed and expended for the purpose of paying the
cost of said projects, including expenses incidental
thereto.
(d) The construction of said projects is ex-
pected to proceed with due diligence to completion.
• (e) No portion of the projects constructed are
expected to be sold or otherwise disposed of, in whole
or in material part, prior to the last maturity of the
bonds..
(f) The City will receive par plus accrued in-
terest and $ 142.2S premium from the sale of the
bonds. Accrued interest and premium on the bonds are
to be deposited in the Debt Service Fund to pay first
interest coming due on the bonds.
(g) Except -for the Debt Service Fund, the City
has not created nor established and will not create
or establish any sinking fund, reserve fund or any
other similar fund to provide for the payment of the
bonds. The Debt Service Fund has been established
and will be funded in a manner primarily'to achieve
a proper matching of tax collections and debt service,
and will be depleted atleast annually to an amount
not in excess of one -twelfth the particular annual
debt service on the bonds. Money deposited in the
Debt_Service Fund will be spent within a 13-month
• ' -16-
. period beginning on the date of deposit, and investment
earnings in the Debt Service 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 to be received
will be received pursuant to contract of
sale.
(2) Amounts paid or to be paid into
various funds and accounts have been di-
rected to be paid into said funds and ac-
counts by authority hereof.
(3) The anticipated dates of expend-
itures of money derived from the sale of
bonds and the amount to be spent on or be-
fore such dates is based upon consultation
with the staff of the City.
(i) To the best of the knowledge and belief of
the City, there are no facts, estimates or circum-
stances that would materially change the conclusions
and representations set out in this section and the
• expectations hereinabove set out are reasonable.
(j) The City has not been notified of any list-
ing or proposed listing of it by the Internal Revenue
Service as a bond issuer whose arbitrage certifica-
tions may not be relied upon.
The City also certifies and covenants with the purchasers
and holders of the bonds from time to time outstanding that, so long
as any of said bonds remain outstanding, moneys on deposit in any
fund or account in connection with the bonds, whether or not such
moneys were derived from the proceeds of the sale of the bonds or
from any other source, will not be used in a manner which will cause
such bonds to be "arbitrage bonds" within the meaning of Section
-17-
103(c) of the Internal Revenue Code of 1954, as amended, and any
lawful regulations promulgated thereunder, including Treas. Reg.
55 1.103-13, 1.103-14 and 1.103-15 (1979) as the same presently
exist, or may from time to time hereafter be amended, supplemented
or revised. The City reserves the right, however, to make any
investment of such moneys permitted by state law, if, when and to
the extent that said Section_ 103(c) or regulations promulgated
thereunder shall be repealed or relaxed or shall be held void by a
final decision of a. court of competent jurisdiction, but only if
any investment made by virtue of such repeal, relaxation or deci-
sion would not, in the opinion of counsel of recognized competence
in such matters, result in making theinterest on said bonds subject
to federal income taxation.
40 Section 7. Forthwith after this ordinance has become
effective as provided by law, the bonds herein authorized shall be
executed and delivered to BANK OF AMER I CA NT & SA
, the purchaser thereof, upon receipt of
the purchase price therefor, same to be not less than the par value
of said bonds plus accrued interest to the date of delivery and a
premium of $ 142 • �5 , and the contract for the sale of said bonds
to said purchaser, heretofore entered into, shall be and the same
is hereby in all respects ratified, approved and confirmed.
Section 8. All ordinances, resolutions and orders, or
0 -18-
•
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: October 5 , 1981.
VOTE:
AYE: Aldermen Gerson, Borah, Papangelis, Romain, Burden, Bleveans,
Nelson, Wyandt, Summers, Korshak, Raden, Lauterbach, Neems,
Barr, and Lambert
NAY: NONE
ABSENT: Aldermen Alexander, Heaston, and Bradford
ATTEST:
City Clerk
RWS:rd -19-
is
APPROVED:
/ 1!y v