HomeMy WebLinkAboutORDINANCES-1980-010-O-80ORDINANCE NO. 10-0-80
AN ORDINANCE providing for borrowing money and
• issuing $7,000,000 Corporate Purpose Bonds,
Series 1980, 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
I* 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 said ordinance is now in full force and effect; and
0
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 certain projects set forth in the
Capital Improvement Program of the City, including acquiring land
for open space, constructing a new community center, initial costs
in connection with the 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, and a street paving
program for a designated area of the City, in accordance with pre-
liminary plans now on file in the office of the City Clerk, which
project has been estimated to cost $7,000,000; and
WHEREAS, it is necessary that said projects be initiated
in order to meet the needs of the inhabitants of the City, and it
•
is
necessary
for
that purpose
that the sum of $7,000,000 be borrowed
at
this time
and
in evidence
of such indebtedness full faith and
credit bonds of the City be issued in the principal amount of
$7,000,000, and that such indebtedness be incurred in accordance
with the procedures established in Ordinance 78-0-73 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 $7,000,000
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 $7,000,000 and to
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evidence said loan negotiable coupon bonds of said City shall be
issued. Said bonds shall each be designated "Corporate Purpose
• Bond, Series 1980," be dated March 1, 1980, be numbered consecu-
tively from 1 to 1400, 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:
Serial
Numbers,
Principal
Year of
Rate of
Both
Inclusive
Amount
Maturity
Interest
1
to
95
$475,000
1982
7.80
96
to
190
475,000
1983
8.00
191
to
283
475, 000
1984
8.00
286
to
380
475,000
1985
8.00
381
to
475
475,000
1986
8.00
476
to
570
475,000
1987
8.00
571
to
663
475,000
1988
7.80
666
to
760
475,000
1989
7.30
761
to
855
475,000
1990
7.30
856
to
950
475,000
1991
7.40
951
to
995
225,000
1992 _ . -
7.50
996
to
1040
225,000
1993
7.60
1041
to
1085
225,000
1994
/.60
1086
to
1130
225,000
1995
7.70
• 1131
to
1175
223,000
1996
7.70
1176
to
1220
225,000
1997
7.80
1221
to
1265
225,000
1998
7.90
1266
to
1310
225,000
1999
8.00
1311
to
1353
225,000
2000
8.00
1356
to
1400
225,000
2001
8.00
Interest on said bonds.shall be payable initially on July
1, 1981 and semiannually thereafter on the first day of January and
July in each year, which said interest payments to date of maturity
of principal shall be evidenced by proper interest coupons attached
to each bond and maturing on the dates herein provided. Both prin-
cipal and interest shall be payable in lawful money of the united
States of America at
-kmerican
National
Bank Sr Trust
Companv of C �avn
in
the City
of
Chicago
Illinois
Thefaesimile seat of said City shad be printed on eacin of said
bonds and said bonds shall be signed by the Mayor by his duly au-
thorized facsimile signature, be attested by the Clerk of said City,
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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 and the interest coupons
to be attached thereto shall be in substantially the following
form:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTY OF COOK
CITY OF EVANSTON
CORPORATE PURPOSE BOND, SERIES 1980
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
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registered, to the registered holder hereof, the sum of FIVE THOUSAND
DOLLARS ($5,000) on the first day of January, 19_, together with
• interest on said sum from the date hereof until paid at the rate of
per cent ( %) per annum, payable on July 1,
1981 and semiannually thereafter on January 1 and July 1 in each
year 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•an authorized issue of $7,000,000
being issued by said City for the purpose of paying the cost of
certain projects constituting part of the Capital Improvement Pro-
gram 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.
It is hereby certified and recited that all acts, condi-
tions and things required by the Constitution and Laws of the State
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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 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 anv 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
back hereof, and after such registration no transfer hereof, except
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, not-
withstanding 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
n
U
U
E
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 March,
1980.
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_, the City of
Evanston, Cook County, Illinois, will pay to bearer
Dollars ($ ) 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 1980, dated March 1,
1980, Number
Attest:
City Clerk,
City of Evanston,
Cook County, Illinois.
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Mayor,
City of Evanston,
Cook County, Illinois.
(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,
there shall be and there is hereby levied upon all of the taxable
property within said City, in each year whip 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-
40 ing direct annual tax, to -wit:
For the Year
A
Tax Sufficient To Produce
The
Sum Of,
1980
$
1,471,692
for
interest
and
principal
up to January
1,
1982
1981
$
981,600
for
interest
and
principal
982
$
943,600
for
interest
and
principal
1983
$
905,600
for
interest
and
principal
1984
$
867,600
for
interest
and
principal
1985
$
829,600
for
interest
and
principal
1986
$
791,600
for
interest
and
principal
1997
$
754,550
for
interest
and
principal
1988
$
719,875
for
interest
and
principal
1989
$
685,200
for
interest
and
principal
• 1990
$
400,050
for
interest
and
principal
1991
$
383,17S
for
interest
and
principal
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For the Year
A
Tax Sufficient To Produce
The
Sum Of,
1992
$
366,075
for
interest
and
principal
• 1993
$
348, 975
for
interest
and -principal
1994
$
331,650
for
interest
and
principal
1995
$
314,325
for
interest
and
principal
1996
$
296,775
for
interest
and
principal
1997
$
279,000
for
interest
and
principal
1998
$
261,000
for
interest
and
principal
1999
$
243,000
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 hard
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 paving 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', andfurther, 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
ef=ective, a copy hereof, certified to by the Clerk of said Citv,
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 1980 to 1999, 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
extend 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 corperate 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 1980, dated March 1,
1980,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.
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-
voted with due diligence for the purpose as provided herein, and
said City represents and certifies as follows with respect to the
bonds:
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(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 being in.an amount
not less than $100,000.
(b) Over $5,700,000 of the money derived from
the sale of the bonds and deposited in the Project
Fund will be expended on or before February 111983
for the purpose of paving 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
paving the cost of said projects.
(d) The acquisition of land and the construc-
tion of said projects are expected to proceed with
due diligence to completion.
(e) No portion of the land acquired or the
projects constructed are expected to be sold or other-
wise 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 $ 74.75 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 at least annually to an amount
not in excess of one -twelfth the particular annual
debt service on the bonds. :honey deposited in the
Debt Service Fund will be spent within a 13-month
period beginning on the date of deposit, and invest-
ment earnings in the Debt Service Fund will be spent
within a 1-year period beginning on the date of re-
ceipt.
(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.
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(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 certifications
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
103(c) of the Internal Revenue Code of 1954, as amended, and any
lawful regulations promulgated thereunder, including Treas. Reg.
§§1.103-13, 1.103-14 and 1.103-15 (1979) as the same presently
exist, or may from time to time 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.
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Section 7. 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 MICAGO � ASSOCIATES
1�
RWS.: rd
the.purchaser thereof, upon receipt of
the purchase price therefor, sameto be not less than the par value,
of said bonds. plus accrued -interest to the date of'delivery and. a
premium of $ 74.75 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
"=±?
conflict hereby repealed, and this ordinance shall be in full force
;>.•xy
and effect.:upon its passage-, approval and the publication thereof
as provided by law.
+ : Februar ?
ADOPTED Y25 19 8 0 .,
VOTE:i
• k..
AYE. Aldermen Hoover, Barr, Heaston, Neems, Lauterbach, Korshak,
Alexander -,Summers. W andt Nelson Allen Burden Pa an elis Borah:,._.
and Gerson.
NAY: NONE.
ABSENT• Aldermen Laycock, Fitzsimons, and. Romain
•
APPROVED:
ATTEST:
City Clerk
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