HomeMy WebLinkAboutORDINANCES-1980-120-O-80ORDINANCE NO. 120-0-80
AN ORDINANCE providing for borrowing money and
issuing $10,000,000 Corporate Purpose Bonds,
Series 1981-A, 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
is 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
construction of a new community center, construction of a new City
Yards Complex,
a comprehensive street
lighting program, a
sewer
improvement and
street paving program
for one area 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 $10,000,000; 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
$10,000,000 be borrowed at this time and in evidence of such indebted-
ness full faith and credit bonds of the City be issued in the prin-
cipal amount of $10,000,000, 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 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 $10,000,000
presently needed for the purpose of paying the cost of capital im-
provement projects set forth in the preamble of this ordinance,
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there shall be borrowed by, for and on behalf of the City of
Evanston, Cook County, Illinois, the sum of $10,000,000 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-A," be dated January 1, 1981, be numbered consecutively from
1 to 2000, 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
85
$425,000
1983
10.40
86
to
170
425,000
1984
10.40
171
to
255
425,000
1985
10.40
256
to
340
425,000
1986
10.40
341
to
425
425,000
1987
10.40
426
to
510
425,000
1988
9.20
511
to
700
950,000
1989
8.60
•701
891
to
to
890
1080
950,000
950,000
1990
1991
8.60
8.70
1081
to
1275
975,000
1992
8.80
1276
to
1335
300,000
1993
8.90
1336
to
1395
300,000
1994
9.00
1396
to
1455
300,000
1995
9.20
1456
to
1515
300,000
1996
9.40
1516
to
1575
300,000
1997
9.50
1576
to
1635
300,000
1998
9.60
1636
to
1695
300,000
1999
9.70
1696
to
1755
300,000
2000
9.80
1756
to
1815
300,000
2001
9.80
1816
to
1875
300,000
2002
9.90
1876
to
1900
125,000
2003
10.00
1901
to
1925
125,000
2004
10.00
1926
to
1950
125,000
2005
10.00
1951
to
1975
125,000
2006
10.00
1976
to
2000
125,000
2007
10.00
provided, however, that of said bonds, bonds numbered 1276 to 2000,
inclusive, becoming due on January 1 of each of the years 1993 to
2007, 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
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premium of 2% of the principal amount if called on or prior to
January 1, 2000, and a premium of 1% of the principal amount if
• called on or after July 1, 2000. 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 redemption 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 January
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 Harris Trust & Savings Bank ,
in the City of Chicago I Illinois
•
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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
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.
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:
(Form of Bond)
UNITED STATES OF AMERICA
• STATE OF ILLINOIS COUNTY OF COOK
CITY OF EVANSTON
CORPORATE PURPOSE BOND, SERIES 1981-A
Number
$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 THOU-
SAND DOLLARS ($5,000) on the first day of January, , together
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, beginning on
• January 1, 1982, upon presentation and surrender of the respective
interest coupons hereto attached as they severally become 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
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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 $10,000,000,
being numbered from 1 to 2000, 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 1276 to 2000, inclusive, becoming due on
January 1 of each of the years 1993 to 2007, 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 called on or prior to January 1, 2000, and a premium of
1% of the principal amount if called on or after July 1, 2000. 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
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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
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.
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
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back hereof, and after such registration no transfer hereof, except
when noted upon such books and similarly noted hereon, shall be
Ovalid unless the last registration shall have been to .bearer. Regis-
•
tration 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 be signed 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 signatures, and
said officials, by the execution hereof, do adopt as and for their
own proper signatures their respective facsimile signatures appear-
ing on said coupons, all as of the first day of January, 1981.
Attest:
City Clerk,
City of Evanston,
Cook County, Illinois.
[ SEAL ]
Number
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 redemption
as therein recited), the City of Evanston, Cook County, Illinois,
. will pay to bearer Dollars
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($ ) in lawful money of the United States of America at
, in the City of ,
• for interest due that day on its Corporate Purpose
Bond, Series 1981-A, dated January 1, 1981, No.
Attest:
City Clerk, Mayor,
City of Evanston, City of Evanston,
Cook County, Illinois. Cook County, Illinois.
*(The clause within the parentheses shall be inserted in all coupons
attached to bonds numbered 1276 to 2000, inclusive, representing
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 Reqistered 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,
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 prop-
erty in said City, in addition to all other taxes, the following
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direct annual tax, to -wit:
•For the Year
A Tax Sufficient To Produce
The
Sum Of
1981
$ 2 , 302 , 700
for
interest
and
principal
up to January
1,
1983
1982
$1 ,319,650
for
interest
and
principal
1983
$1 ,275,450
for
interest
and
principal
1984
$1 ,231 ,250
for
interest
and
principal
1985
$1 ,187,050
for
interest
and
principal
1986
$1 ,142,850
for
interest
and
principal
1987
$1 ,628,750
for
interest
and
principal
1988
$1 , 547,050
for
interest
and
principal
1989
$1 , 465 , 350
for
interest
and
principal
1990
$1 ,407,700
for
interest
and
principal
1991
$ 646,900
for
interest
and
principal
1992
$ 620,200
for
interest
and
principal
• 1993
$ 593,200
for
interest
and
principal
1994
$ 565,600
for
interest
and
principal
1995
$ 537,400
for
interest
and
principal
1996
$ 508,90o
for
interest
and
principal
1997
$ 480,100
for
interest
and
principal
1998
$ 451 ,000
for
interest
and
principal
1999
$ 421,600
for
interest
and
principal
2000
$ 392,200
for
interest
and
principal
2001
$ t87,500
for
interest
and
principal
2002
$ 175,000
for
interest
and
principal
2003
$ 162,500
for
interest
and
principal
2004
$ 150,000
for
interest
and
principal
2005
$ 137,500
for
interest
and
principal
•
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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 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 abate-
ment 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 1981 to 2005, 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
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
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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
We designated "Corporate Purpose Bonds, Series 1981-A, dated
January 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 hereinbefore set out.
The proceeds of sale of the bonds will be used and de -
is voted with due diligence for the purpose as provided herein, and
said City represents and certifies as follows with respect to the
bonds:
(a) The City has heretofore incurred or within
six months after delivery of the bonds expects to
incur, substantial binding obligations with respect
tothe projects of the Capital Improvement Program
herein authorized, such obligations being in an amount
not less than $100,000.
(b) Over $8,500,000 of the money derived from
the sale of the bonds and deposited in the Project
Fund will be expended on or before December 1, 1983
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
will be used, needed and expended for the purpose of
paying the cost of said projects.
(d)
The construction
of said projects is ex-
pected to
proceed with due
diligence to completion.
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(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 $ 800..00 premium from the sale of the
bonds. Accrue 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 at least annually to an amount
not in excess of one -twelfth the particular annual debt
service on the bonds. Money deposited in the Debt Ser-
vice Fund will be spent within a 13-month period begin-
ning 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 =he purchasers
•and holders of the bonds from time to time outstanding that, so long
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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 --he 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
103(c) of the Internal Revenue Code of 1954, as amended, and any
lawful regulations promulgated thereunder, including Treas. Reg.
SS 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 in-
vestment of such moneys permitted by state law, if, when and to the
extent that said Section 103(c) or regulations promulgated there-
under shall be repealed or relaxed or shall be held void by a final
decision of a court of competent jurisdiction, but only if any in-
vestment made by virtue of such repeal, relaxation or decision would
• not, in the opinion of counsel of recognized competence in such
matters, result in making the interest on said bonds subject to
federal income taxation.
Section 7. Forthwith after this ordinance has become
effective as provided by law, the bonds herein authorized shall be
executed and delivered to HARR I S TRUST AND SAVINGS BANK AND ASSOCIATES
, 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 $ 800.00
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
• parts thereof, in conflict herewith, are to the extent of such
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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: December 15 , 1980.
VOTE:
PAYE: Aldermen Gerson, Borah, Papangelis, Romain, Burden, Allen, Nelson,
Alexander, Summers, Korshak, Fitzsimons, Lauterbach, Neems, Hesston,
Barr, Lambert, and Laycock
NAY: None
ABSENT: Alderman Wyandt
•
ATTEST:,
City Clerk
•
APPROVED:
Ma�
IWS:rd -16-