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HomeMy WebLinkAboutOrdinances - O-86-413 - 12/24/1986 - AMEND O-86-390 REGARDING ISSUE $5.5M W/S REV BONDSORDINANCE NO. 0-86-413 AN ORDINANCE amending Ordinance No. 0-86-390 adopted by the City Council of the City of McHenry, McHenry County, Illinois on July 30, 1986 and pertaining to the issuance of $5,500,000 Waterworks and Sewerage Revenue Bonds, Series 1986A, of the City of McHenry, McHenry County, Illinois. WHEREAS, the City of McHenry, McHenry County, Illinois (the "City") has heretofore adopted Ordinance No. 0-86-390 on July 30, 1986, which Ordinance (the "Bond Ordinance") is entitled AN ORDINANCE authorizing and providing for the issue of $5,500,000 Waterworks and Sewerage Revenue Bonds, Series 1986A, of the City of McHenry, McHenry County, Illinois, for the pur- pose of refunding outstanding waterworks and sewerage revenue bonds of said City and defray- ing the cost of improving the combined water- works and sewerage system of said City, pre- scribing all the details of said bonds, and providing for the collection, segregation and distribution of the revenues of the combined waterworks and sewerage system of said City; and WHEREAS, the City Council of the City (the "City Coun- cil") has now determined to sell part of the bonds authorized by the Bond Ordinance (the "Bonds") and it is necessary, desirable and in the interests of the City to amend the Bond Ordinance to conform to the terms of the sale of the Bonds authorized on this date; and WHEREAS, it is also necessary to designate the Bonds as "qualified tax-exempt obligations" under the provisions of Sec- tion 265(b)(3) of the Internal Revenue Code of 1986 (the "Code") in order to save interest costs to the City and it is also nece- ssary and desirable to name American National Bank and Trust Company of Chicago as Bond Registrar and Paying Agent for the Bonds and to change the date of the Bonds in light of the fact that they are now being sold in December, 1986: NOW THEREFORE, Be It Ordained by the City Council of the City of McHenry, McHenry County, Illinois as follows: Section 1. That the date of the Bonds set forth in the Bond Ordinance (August 1, 1986) be changed to December 1, 1986 in order to save interest for the City in light of the fact that the Bonds are being sold in December, 1986; that appropriate revisions be made to the bond form as set forth in the Bond Or- dinance to reflect the change in date. Section 2. That American National Bank and Trust Company of Chicago be and is hereby named as Bond Registrar and Paying Agent for the Bonds and that the Bond Ordinance (including particularly the Bond form) be and is hereby amended accordingly. Section 3. That Section 13(d) of the Bond Ordinance be amended to require a monthly deposit to the Bond Reserve Account in the amount of $ 5,000.00 until the credit balance of said accdu'nt equals Maximum Annual Debt Service (as defined in the Bond Ordinance) and in the event of a withdrawal from the Bond Reserve Account the amount to be replenished shall be at the rate of one -twelfth the amount withdrawn per month, or $5,000.00 per month, whichever is greater. Section 4. The City Council represents and certifies that, pursuant to the provisions of Section 148(f)(4)(C) of the Code: -2- 1 (a) the City is a governmental unit with general taxing powers; (b) none of the Bonds is a "private activity bond" (as defined in Section 141(a) of the Code); (c) 95 percent or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); and (d) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof) during the calendar year in which the Bonds are issued is not rea- sonably expected to exceed $5,000,000. Section 5. In support of its conclusion that none of the Bonds is a "private activity bond" as defined in Section 141(a) of the Code, the City covenants, represents, and certifies as follows: (a) none of the proceeds of the Bonds are to be used, directly or indirectly, in any trade or business carried on by any person other than a state or local governmental unit; (b) no direct or indirect payments of the principal or interest are to be made on any Bond with respect to any pri- vate business use by any person other than a state or local governmental unit; and (c) none of the proceeds of the Bonds are to be used, directly or indirectly, to make or finance loans to persons other than a state or local governmental unit. Section 6. The City agrees to comply with all provi- sions of the Code, which if not complied with by the City, would cause the interest on the Bonds not to be tax exempt in the hands of a holder who is a natural person. The City further agrees: (a) through its officers, to make such further specific coven- -3- ants, representations as shall be truthful, and assurances as may be necessary or advisable; (b) to consult with counsel approving the Bonds and to comply with such advice as may be given; (c) to file such forms, statements, and supporting documents as may be required and in a timely manner; and (d) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys, and other persons to assist the City in such compliance. Section 7. For purposes of Section 265(b)(3) of the Code, the City Council of the City hereby designates each of the Bonds as a "qualified tax-exempt obligation" as provided there- in. In support of such designation, the Council states that: (a) the Bonds are not "private activity bonds" as de- fined in Section 141 of the Code; (b) the City and all subordinate entities thereof (as defined in the Code) has not issued and does not reasonably anticipate issuing in excess of $10,000,000 in "qualified tax-exempt obligations" (other than "private activity bonds" as provided in Section 265(b)), including the Bonds, during the calendar year of issuance of the Bonds; and (c) not more than $10,000,000 of obligations, including the Bonds, issued by the City and all subordinate entities •thereof (as defined in the Code) during the calendar year of issuance of the Bonds have been to date or will be designated by the City for purposes of Section 265(b)(3). Section 8. This Ordinance shall be published once within ten days of passage hereof by the City Council in The Northwest Herald, being a newspaper published in and having a general circulation in the City. Section 9. If any section, paragraph, clause or pro- vision of this Ordinance shall be held invalid, the invalidity of -4- such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. Section 10. All ordinances, resolutions or orders, or parts thereof, in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed. PASSED by the City Council on December 18, 1986. APPROVED: December 18, 1986. ayor r AYES: Bolger, McClatchey, Serritella, Smith, Snell, Teta NAYS: None ABSENT: Nolan, Lieder PUBLISHED in The Northwest Herald on December 24, 1986. RECORDED in the Municipal Records on December 18, 1986. Attest: /s/ City Clerk SEAL-) -5-