HomeMy WebLinkAboutOrdinances - O-82-297 - 09/02/1982 - PROVIDE FOR ISSUE SSA #1 BONDS $617 000ORDINANCE NO. 0-82-297
AN ORDINANCE providing for the issue of
T617,000 Unlimited Ad Valorem Tax Bonds
of Special Service Area Number One of the
City of McHenry, McHenry County, Illinois,
and the levy of a direct annual tax
sufficient to pay the principal and interest
on said bonds.
WHEREAS, pursuant to the provisions of Section 6(1) of
Article VII of the Constitution of the State of Illinois and "AN
ACT to provide the manner of levying or imposing taxes for the
provision of special services to areas within the boundaries of
home rule units and non -home rule municipalities and counties,"
approved September 21, 1973, as amended, (the "Act") the City of
McHenry, McHenry County, Illinois (the "City"), is authorized
to create special service areas within the City, issue bonds
secured by the full faith and credit of such areas for providing
special services to such areas and levy taxes against the property
included in such area to pay the principal and interest on said
bonds; and
WHEREAS, the City Council of said City by ordinance
adopted on the 5th day of April, 1982, did propose the establishment
of Special Service Area Number One of the City and the issuance
of bonds of said Special Service Area and did call a public
hearing thereon; and
WHEREAS, proper notice was given of said public hearing
and at said public hearing all interested persons affected by said
Special Service Area were allowed to file written objections thereto
and to be heard orally thereon; and
WHEREAS, the City Council by Ordinance Number 0-82-288,
heretofore adopted on the 7th day of June, 1982, did establish said
Special Service Area Number One; and
WHEREAS, Section 8 of the Act provides that the boundaries
of a special service area may be enlarged after hearing and notice
as provided in Sections 5 and 6 of said Act; and
WHEREAS, the City Council has determined that it is
necessary and in the best interests of the City of McHenry and
of Special Service Area Number One as created pursuant to Ordinance
Number 0-82-288 that additional property be included within said
special service area; and
WHEREAS, the City Council of said City by Ordinance
Number 0-82-293 , adopted on the 16th day of August, 1982, did
propose the enlargement of Special Service Area Number One of
the City by the addition of that certain territory described in
Exhibit A thereto and the issuance of bonds of said Special
Service Area as so enlarged in an amount not to exceed $1,000,000
at an interest rate or rates of not to exceed the greater of 9%
per annum or 125% of the rate for the most recent dates shown in
the 20 G.O. Bonds Index of average municipal bond yields as
published in the most recent edition of The Bond Buyer published
in New York, New York, at the time the contract is made for the
sale of the bonds and maturing within 15 years from the date
thereof and did call a public hearing thereon for the 2nd day of
September, 1982; and
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WHEREAS, proper notice was given of said public hearing
and at said public hearing all interested persons affected by said
special service area were allowed to file written objections thereto
and to heard orally thereon; and
WHEREAS, the City Council by Ordinance Number
0-82-296
heretofore adopted on the 2nd day of September, 1982 did enlarge
Special Area Number One by the addition of the territory described
therein; and
WHEREAS, no petition has been filed objecting to the
creation or enlargement of said Special Service Area, the levy or
imposition of a tax or the issuance of said bonds, and the City
Council is authorized to issue said bonds and levy a direct annual
tax against all of the taxable property included in said Special
Service Area sufficient to pay the principal and interest on said
bonds; and
WHEREAS, the City Council has determined and does hereby
determine that it is advisable, necessary and in the best interest of
the City and said Special Service Area to provide special municipal
services to the area, including, but not limited to municipal
services in connection with the construction of improvements and
extensions to the existing waterworks system and sewerage system
of the City to serve the property in said area, such improvements
and extensions to be on existing public property or property to be
acquired by the City and to issue bonds in the amount of $617,000
to pay the cost thereof; and
WHEREAS, the proceeds of said bonds shall be used solely
and only for improvements for which the City is authorized under
the provisions of the Illinois Municipal Code, as amended, to levy
taxes or special assessments or to appropriate the funds of the
City:
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NOW, THEREFORE, Be It Ordained by the City Council of the
City of McHenry, McHenry County, Illinois, as follows:
Section 1. That it is hereby found and determined that
by and at the proceedings hereinabove described in the preambles
of this ordinance, the City Council of the City of McHenry, McHenry
County, Illinois, has been authorized to issue bonds in the amount
of $617,000 payable solely and only from ad valorem property taxes
levied against all of the taxable property included in Special
Service Area Number One of the City for the purpose of paying the
cost of constructing improvements and extensions to the existing
waterworks system and sewerage system of the City to serve the
property located in said Special Service Area, such improve-
ments and extensions to be on existing public property or property
to be acquired by the City.
Section 2. That in order to raise the sum of $617,000
presently needed for the purpose aforesaid, there be borrowed on
behalf of said Special Service Area the sum of $617,000 and that
bonds of the City, payable solely and only from ad valorem taxes
levied against all of the taxable property in said Special Service
Area, without limit as to rate or amount, be issued in said amount,
said bonds to be known as "Special Service Area Number One Unlimited
Ad Valorem Tax Bonds," be dated September 1, 1982, be numbered 1
to 125, inclusive, bonds numbered 1 to 123, inclusive, be of the
denomination of $5,000 each and bonds numbered 124 and 125 inclusive,
be of the denomination of $1,000 each, bear interest at the rate
of twelve per cent (12%) per annum, and become due serially on
February 1 of each of the years and in the amounts as follows:
SE
Year of
Maturity
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
said interest to be paid February 1,
Principal
Amount
$35,000
40,000
40,000
50,000
55,000
6o,000
70,000
80,000
90,000
97,000
1984, and semiannually thereafter
on the first day of August and the first day of February of each year.
That the seal of the City shall be affixed to each of said
bonds and said bonds shall be signed by the Mayor and attested by
the City Clerk of the City and that the interest accruing on said
bonds to the date of maturity of the principal shall be evidenced
by coupons thereto attached, maturing on the several days when such
interest matures, and signed and attested by said Mayor and City
Clerk, respectively, by their respective facsimile signatures, and
such officers shall, by the execution of said bonds, adopt as and
for their respective proper signatures their respective facsimile
signatures appearing on said coupons; that the bonds and coupons
be payable in lawful money of the United States of America at the
principal office of the McHenry State Bank, McHenry, Illinois.
That said bonds shall be payable to bearer, provided,
however, that said bonds may be registered as to principal in the
name of the holder on the books of the City Treasurer, upon the
back of said bonds so registered. No bond so registered shall be
subject to transfer except upon such books and similarly noted on
the back thereof, unless the last registration thereof shall have
been to bearer. Such registration of any of said bonds shall not,
however, affect the negotiability of the coupons thereto affixed,
but such coupons shall continue transferable by delivery merely.
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Section 3. That said bonds shall be in substantially
the following form:
( Form of Bond)
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF MCHENRY
CITY OF MCHENRY
SPECIAL SERVICE AREA NUMBER ONE
UNLIMITED AD VALOREM TAX B014D
Number $ ,000
KNOW ALL MEN BY THESE PRESENTS, that the City of McHenry,
McHenry County, Illinois, hereby acknowledges itself to owe and
for value received promises to pay to bearer, or if this bond be
registered, then to the registered holder hereof, solely from
taxes levied against all of the taxable property in that part of
said City known as Special Service Area Number One and not otherwise,
the sum of THOUSAND DOLLARS ($ ,000) on the first day of
February, 19_, together with interest thereon at the rate of
twelve per cent (12%) per annum, from date hereof until paid,
payable February 1, 1984, and semiannually thereafter on the
first day of August and the first day of February in each year, on
presentation and surrender of the interest coupons hereto attached,
as they severally become due. Both principal hereof and interest
hereon are payable in lawful money of the United States of America
at the principal office of the McHenry State Bank, McHenry, Illinois.
This bond is one of a series of bonds issued by said City
for the purpose of constructing public improvements in said Special
Service Area, pursuant to and in all respects in compliance with
the provisions of Section 6(1) of Article VII of the 1970 Constitu-
tion of the State of Illinois and "AN ACT to provide the manner of
levying or imposing taxes for the provision of special services to
areas within the boundaries of home rule units and non -home rule
municipalities and counties," approved September 213, 1973, as
amended, and in compliance with an ordinance duly passed by the
City Council of said City and published, in all respects as by law
required.
It is hereby certified and recited that all conditions,
acts and things required by the Constitution and laws of the State
of Illinois, to exist or to be done precedent to and in the issuance
of this bond did exist, have happened, been properly done and
performed in regular and due form and time as required by law; that
the indebtedness of said City, represented by this bond and the
issue of which it is a part, and including all other indebtedness
of said City, howsoever evidenced and incurred, does not exceed
any limitation imposed by law 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 Special Service Area
sufficient to pay the interest hereon as it falls due and also to
pay and discharge the principal hereof at maturity.
This bond may be registered as to principal in the name
of the holder on the books of said City Treasurer, such registration
to be evidenced by notation of said Treasurer 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, notwithstanding
registration hereof.
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IN WITNESS WHEREOF, said City of McHenry, McHenry County
Illinois, by its City Council, has caused its corporate seal to be
hereto affixed and this bond to be signed by the Mayor and attested
by the City Clerk of said City and the coupons hereto attached to
be signed and attested by said officials, respectively, by their
facsimile signatures, and said officers do, by the execution hereof,
adopt as and for their own proper signatures their respective
facsimile signatures appearing on said coupons, all as of the first
day of September, 1982.
Attest:
City Clerk
( Form of Coupon)
Mayor
Number $
On the first day of , 19 , the City of McHenry,
McHenry County, Illinois, promises to pay to bearer solely out of
taxes levied against all of the taxable property in said Special
Service Area Number One of said City
Dollars ($ ) in lawful money of the United States of
America at the office of the McHenry State Bank, McHenry, Illinois,
for interest due that day on its Special Service Area Number One
Unlimited Ad Valorem Tax Bond, dated September 1, 1982, numbered
(Facsimile Signature)
Mayor
Attest:
(Facsimile Signature)
City Clerk .
(Form of Registration of Ownership)
Signature of
Date Registered Name of Registered Owner City Treasurer
Section 4. That forthwith after this ordinance has
become effective, as provided by law, said bonds shall be executed
and delivered to the City Treasurer of the City and be by him
delivered to the purchasers thereof, namely, the McHenry State Bank
and Associates, McHenry, Illinois, upon receipt of the purchase
price therefor, same to be not less than the par value of said
bonds plus accrued interest to date of delivery and that the
contract for the sale of said bonds heretofore entered into, be
and is in all respects ratified, approved and confirmed, it being
hereby found and determined that said contract is in the best
interests of the City and that no person holding any office of the
City, either by election or appointment, is in any manner interested,
either directly or indirectly, in his own name or in the name of
any other person, association, trust or corporation, in said contract
for the purchase of said bonds.
Section 5. That for the purpose of providing the funds
required to pay the interest on said bonds as it falls due, and
also to pay and discharge the principal thereof at maturity, there
be and there shall be levied upon all the taxable property within
the City of McHenry Special Service Area Number One, a direct
annual tax for each of the years while said bonds or any of them
are outstanding in amounts sufficient for that purpose, and that
there be and there is levied upon all of the said taxable property
in said Special Service Area in addition to all other taxes the
following direct annual tax, to -wit:
For the Year
A Tax Sufficient to Produce
the Sum of:
1982
$104,890
fo n�lntere
p to
and includ-
ing e ruary 1,
1984
1983
$109,040
for
interest
and
principal
1984
$109,840
for
interest
and
principal
1985
$105,040
for
interest
and
principal
1986
$1103,240
for
interest
and
principal
�1987
$109,240
for
interest
and
principal
1988
$107,640
for
interest
and
principal
1989
$110,440
for
interest
and
principal
1990
$1121040
for
interest
and
principal
1991
$112,440
for
interest
and
principal
1992
$108,640
for
interest
and
principal
Section 6. That forthwith as soon as this ordinance
becomes effective, the City Clerk of the City be and is hereby
directed to file a copy of said ordinance with the County Clerk of
McHenry County, Illinois, and it shall be the duty of said County
Clerk to annually in and for each of the years 1982 to 1992, inclu-
sive, ascertain the rate percent required to produce the aggregate
tax hereinbefore levied, and extend the same for collection on the
tax books against all of the taxable property within said City of
McHenry Special Service Area Number One in addition to other taxes
levied in each of said years in said Special Service Area in order
to raise the respective amounts levied aforesaid, and in each of
said years such annual tax shall be computed, extended and collected
in the same manner as now or hereafter provided by law for the
computation, extension and collection of taxes for general corporate
purposes of the City.
Section 7. From the amounts received upon sale of said
bonds, all principal proceeds shall be deposited into the "Special
Service Area Number One Bonds Project Fund" (the "Project Fund"),
hereby created, and disbursements shall be made from the Project
Fund only for the purposes for which said bonds are being issued,
as set forth in the preceding text, including expenses of issuance
of said bonds or otherwise incidental to said bonds or the Project,
and for which the principal proceeds are hereby appropriated.
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Accrued interest and premium, if any, payable on said
bonds shall be and is hereby appropriated for the purpose of paying
first interest due on said bonds, and, to that end, is hereby
ordered deposited into the "Special Service Area Number One Bonds
Bond Fund" (the "Bond Fund") which fund shall be the fund for the
payment of principal of and interest on said bonds. Taxes received
for the payment of said bonds shall be deposited into the Bond Fund
and used solely and only for paying said bonds. Interest received
from deposits in the Bond Fund shall be retained in the Bond Fund
for payment of said bonds on the interest payment date next after
such interest is received.
Section 8. The City Council hereby represent and certify
as follows with respect to said bonds:
(a) The City has heretofore incurred, or within
six months after delivery of said bonds expects to
incur, substantial binding obligations with respect
to the Project to be paid for with money received from
the sale of said bonds, said binding obligations com-
prising binding contracts for work on the Project in
not less than the amount of $800,000, such sum being
not less than 2-1/2% of that portion of the Project
to be financed with proceeds of said bonds.
(b) All of the money derived from the sale of said
bonds and deposited in the Project Fund will be expended
on or beforeSeptember 1, 19 85, for the purpose of paying
the cost of the Project, said date being within three
years following the date of issue of said bonds.
(c) All of the principal proceeds of said bonds
will be used, needed and expended for the purpose of
paying the cost of the Project.
(d) Work on the Project is expected to proceed
with due diligence to completion.
(e) No portion of the acquisitions or improvements
constituting a part of the Project has been or is
expected to be sold or otherwise disposed of in whole
or in material part prior to the last maturity of said
bonds. "Material part" means (i) land, or (ii) any
improvement, or (iii) personal property or fixtures in
excess of that which is expected to be sold, traded in
or discarded upon wearing out or becoming obsolete.
(f) The City will receive par plus accrued interest
from the sale of said bonds. Accrued interest on said
bonds is to be deposited in the Bond Fund to pay first
interest coming due on said bonds.
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(g) Except for the Bond Fund, the City has not
created or established and will not create or establish
any sinking fund, reserve fund or any similar fund to
provide for the payment of said bonds. The Bond Fund
has been established and will be funded in a manner
primarily to achieve a proper matching of revenues 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 said bonds. Money deposited in
the Bond Fund will be spent within a 13-month period
beginning on the date of deposit, and investment earnings
in the Bond 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 directed to
be paid into said funds and accounts
by authority hereof.
(3 ) The anticipated dates of expenditure of
money in the Project Fund derived from
the sale of Bonds and the amount to be
spent on or before such dates is based
upon consultation with Baxter and
Woodman, Inc. , the engineers
charged with responsible supervision of
the Project.
(i) To the best of the knowledge and belief of the
City Council, 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 listing 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 further covenants with the
purchasers and holders of said 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 said bonds,
whether or not such moneys were derived from the proceeds of the
sale of said 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,
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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 investment of such moneys permitted by state
law, if, when and to the extent that said Section 103(c) or regula-
tions promulgated thereunder shall be repealed or relaxed or shall
be held void by final decision of a court of competent jurisdiction,
but only if any investment 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 9. That this ordinance be published once within
ten (10) days after adoption in the McHenry Plaindealer , the same
being a newspaper published in and with a general circulation within
the City.
Section 10. That all ordinances, resolutions and orders,
or parts thereof, in conflict herewith, be and the same are hereby
repealed and this ordinance be in full force and effect forthwith
upon its adoption, approval and publication, as provided by law.
Attest:
Adopted September 2 1982.
Approved September 2 1982.
Published September 10 1982.
City Clerk
Approved:
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Mayor