Loading...
HomeMy WebLinkAboutOrdinances - O-82-298 - 09/02/1982 - PROVIDE FOR ISSUE GO BONDS $205 OOOORDINANCE NO. 0-82-298 AN ORDINANCE providing for the issue of �705,000 General Obligation Bonds of the City of McHenry, McHenry County, Illinois, and for the levy of a direct annual tax sufficient to pay the principal and interest on said bonds. WHEREAS, the City Council (the "Council") of the City of McHenry, McHenry County, Illinois (the "City"), has heretofore determined and does hereby determine that it is necessary, essential and in the best interests of the residents of the City to improve and extend the waterworks system and the sewerage system of the City, for which improvements and extension engineer plans were pre- viously approved by the City Council on February 1, 1982 and on March 31, 1982 (the "Project"), and it is necessary at this time to borrow the sum of $205,000 to pay part of the cost thereof; and WHEREAS, the Council does hereby find and determine that upon the borrowing of said sum and the issuance of bonds of the City in the amount of $205,000, all in accordance with the provisions of the Section 8-5-16 of the Illinois Municipal Code, as amended, the aggregate outstanding bonds of the City issued pursuant to said Section, including the bonds herein authorized, will not exceed one-half of one per cent of the assessed value of all of the taxable property located within the City, and accordingly, the Council is authorized to issue such bonds without submitting the question of such issuance to the electors of the City: NOW, THEREFORE, Be It Ordained by the City Council of the City of McHenry, McHenry County, Illinois, as follows: Section 1. That in order to raise the sum of $205,000 needed at this time for the purpose of paying part of the cost of the Project, there shall be borrowed by, for and on behalf of the City the sum of $205,000 and to evidence said loan negotiable coupon bonds of the City shall be issued. Said bonds shall each be designated "General Obligation Bond," and shall be dated September 1, 1982, numbered 1 to 41, inclusive, of the denomination of $5,000 each, bear interest at the rate of ten and fifty hundredths per cent per annum (10.50%), and shall become due serially on February 1 of each of the years and in the amounts as follows: Year of Principal Maturity Amount 1984 $ 5,000 1985 15,000 1986 15,000 1987 15,000 1988 20,000 1989 20,000 1990 201000 1991 30,000 1992 30,000 1993 35,000 Interest on said bonds shall be payable on February 1, 1984, and semiannually thereafter on the first days of August and February 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 principal and interest shall be payable in lawful money of the United States of America at the McHenry State Bank, of McHenry, Illinois. That the seal of the City shall be affixed to each of said bonds and said bonds shall be signed by the Mayor and by the City Clerk of the City, and said coupons shall be signed 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. That the bonds hereby authorized shall be payable to bearer; provided, however, that such bonds may be -2- subject to registration as to principal in the name of the holder on the books of the Treasurer of the City, such registration to be evidenced by notation of said Treasurer on the back of such 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 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 transferable by delivery merely. Section 3. That each of said bonds and the interest coupons to be attached thereto shall be in substantially the following form: -3- (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF McHENRY CITY OF McHENRY GENERAL OBLIGATION BOND Number $5,000 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, to the registered holder hereof, the sum of FIVE THOUSAND DOLLARS ($5,000) on the first day of February, 19_, together with interest on said sum from the date hereof until paid at the rate of ten and fifty hundredths per cent (10.50%) per annum, payable on February 1, 1984, and semiannually thereafter on the first days of August and February in each year, on presentation and surrender of the interest coupons hereto attached as they become due and payable. Both principal and interest are hereby made payable in lawful money of the United States of America at McHenry State Bank, McHenry, Illinois. For the prompt payment of this bond, both principal and interest, as aforesaid, at maturity, and the levy of taxes sufficient 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 issued by said City for the purpose of paying part of the cost of improving and extending the waterworks system and the sewerage system of the City, pursuant to and in all respects in compliance with the provisions of the Illinois Municipal Code, and all laws amendatory thereof and supplementary thereto, and in compliance with an ordinance authorizing the issuance of this bond, duly passed by —4— the City Council of said City, approved by the Mayor thereof, 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, have existed and have been properly done, have happened and have been 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 forms a part, and including all other indebtedness of said City, however 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 Treasurer, such registration to be evidenced by notation of such 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. IN WITNESS WHEREOF, said City of McHenry, McHenry County, Illinois, by its City Council, has caused its corporate seal to be hereunto affixed, and this bond to be signed by the Mayor of said City and by the City Clerk, and the coupons hereto attached to be signed by said officials, respectively, by their facsimile signatures, and said officials, by the execution -5- hereof, do 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. ty Cler (Form of Coupon) Mayor Number $ On the first day of 19 , the City of McHenry, McHenry County, Illinois, will pay to bearer DOLLARS ($ ) in lawful money of the United States of America at McHenry State Bank, McHenry, Illinois, for interest due that day on its General Obligation Bond, dated September 1, 1982, numbered (Facsimile Signature Mayor (Facsimile Signature) City Clerk (Form for Registration as to Principal) Date of Signature of Registration Name of Registered Owner City Treasurer A Section 4. That 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 be and there is hereby levied upon all of the taxable property within the City, for each of the years for which said bonds are outstanding, a direct annual tax sufficient for that purpose, and that there be and there is hereby levied on all of the taxable property in the City, 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 $35,493.75 1983 $36,000.00 1984 $343,425.00 1985 $32,850.00 1986 $36,275.00 1987 $34,175.00 1988 $32,075.00 1989 $39,975.00 1990 $36,825.00 1991 $38,675.00 for interest up to and including February -1, 1984 and principal for interest and principal for interest and principal for interest and principal for interest and principal for interest and principal for interest and principal for interest and principal for interest and principal for interest and principal That 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. The City covenants and agrees with the purchasers and the holders of the Bonds that so long as any of the Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to levy and collect the foregoing tax levy. The City and its officers will comply with all present and future applicable laws in order to assure that the foregoing taxes will be levied, extended and collected as provided herein and deposited in the fund established to pay the principal of and interest on the Bonds. Section 5. That forthwith as soon as this ordinance becomes effective, a copy hereof, certified by the City Clerk, shall be filed with the County Clerk of McHenry County, -7- Illinois, and said County Clerk shall in and for each of the years 1982 to 1991, inclusive, ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in each of said years, and said County Clerk shall extend the same for collection on the tax books in connection with other taxes levied in each of said years in and by the City for general corporate purposes of the City, and in each of said years such annual tax shall be levied and collected by the 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 such taxes shall be used solely for the purpose of paying principal of and interest upon the bonds herein authorized when the same mature. Section 6. That 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 paying part of the cost of the Project. Section 7. That the bonds hereby authorized shall be executed in the form and manner as provided in this ordinance as soon after passage as may be and thereupon be deposited with the City Treasurer and be by him delivered to the purchaser thereof, namely, McHenry State Bank and Associates, upon receipt of the purchase price therefor, same being the par value of said bonds and accrued interest to the date of delivery and a premium of $ None , that the contract for the sale of said bonds, heretofore entered into, shall be and the same is hereby in all respects ratified, approved and confirmed, and that it is 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, Im 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 8. That the principal proceeds from the sale of said bonds shall be devoted to and used with due diligence for the completion of the Project for which said bonds are hereby authorized to be issued. The Council represents and certifies as follows: (1) That 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 comprising contracts to construct and install the Project in an amount of not less than $800,000, said amount being not less than 2-1/2% of that portion of the cost of the Project to be financed with the proceeds of said bonds; (2) That the City expects that all of the money derived from the sale of said bonds and deposited in the Construction Account, which is the account from which the cost of the Project is to be paid, will be expended on or before September 1 , 19_Bd, for the purpose of paying the cost of the Project, said date being within three (3) years following the date of issue of said bonds; (3) That the foregoing is based upon consultation with Baxter and Woodman, Inc. who are the engineers employed by the City to supervise the construction and installation of the Project; (4) That work on the Project is expected to proceed with due diligence to completion; (5) That the Project has not been and is not expected to be sold or otherwise disposed of in whole or in part prior to the last maturity of said bonds; (6) That all of the proceeds of sale of said bonds are needed for the purpose for which said bonds are issued, including expenses incidental to such purpose and to the issuance of said bonds; (7) That accrued interest received upon the sale of said bonds will be applied to the first interest due thereon and that the balance of the proceeds of sale of said bonds will be deposited in said Construction Account and applied to the costs of the Project and of issuing said bonds; (8) That the City has not accumulated and does not expect to accumulate amounts of money in a fund to pay or to be held as security for the payment of principal and interest on said bonds, other than (a) amounts expected to be spent within thirteen (13) months from the date of deposit thereof into such fund and (b) interest earned by such fund which is to be spent within twelve (12) months from date of receipt; and (9) That to the best of the knowledge and belief of the Council, there are no facts, estimates or circumstances that would materially change the conclusions and representa- tions set out in this Section and the expectations set out in this Section are reasonable. The Council 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 sources, will not be used in a manner which will cause said 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 or proposed thereunder, including Treas. Reg. Sections 1.103-13, 1.103-14 and 1.103-15, as the same presently exist, or may from time to time hereafter be amended, supplemented or revised. The Council reserves the right, however, to make any investment of such moneys permitted by Illinois 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 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 a full, true and complete copy of this ordinance shall be published within thirty (30) days after passage in the McHenry Plaindealer , the same being a newspaper published and of general circulation in the City. -10- Section 10. That all ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby repealed, and this ordinance shall be in full force and effect upon its passage, approval and publication as provided by law. Adopted September 2 , 1982. AYES: Pepping, Nolan, Datz, Smith, Serritella, Meur NAYS: Wies ABSENT: None Approved September 2 , 1982. We-�v_.OA' 10tllai Published in the McHenry Plaindealer on September 10 Attest: City Clerk Recorded in the City Records on September 2 , 1982. —11— , 1982. STATE OF ILLINOIS ) )SS COUNTY OF MCHENRY ) CERTIFICATION OF MINUTES I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of McHenry, McHenry County, Illinois, and as such official I am the keeper of the records and files of the City Council of said City (the "Council"). I do further certify that the foregoing constitutes a full, true and complete transcript of the minutes of the meeting of the Council held on the 2nd day of September, 1982, insofar as same relates to the adoption of Ordinance Number 0-82-298 entitled: AN ORDINANCE providing for the issue of $205,000 General Obligation Bonds of the City of McHenry, McHenry County, Illinois, and for the levy of a direct annual tax sufficient to pay the principal and interest on said bonds. a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the Council on the adoption of said ordinance were conducted openly, that the vote on the adoption of said ordinance was taken openly, that said meeting was held at a specified time and place convenient to the public, that notice of said meeting was duly given to all newspapers, radio or television stations and other news media requesting such notice, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act, as amended, and with the provisions of the Illinois Municipal Code, as amended, and that the Council has complied with all of the applicable provisions of said Act and said Code and its procedural rules in the adoption of said ordinance. IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said City, this 3rd day of September , 1982. City Clerk (SEAL)