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HomeMy WebLinkAboutOrdinances - ORD-05-1256 - 05/23/2005 - AUTHORIZE ISSUANCE GO BONDS TO REFUND SERIES 1997AORDINANCE No. ORD-05-1256 AN ORDINANCE authorizing the issuance of General Obligation Bonds (Alternate Revenue Source), of the City of McHenry, McHenry County, Illinois, in an aggregate principal amount not to exceed $2,800,000. WHEREAS, the City of McHenry, McHenry County, Illinois (the "City"), is a duly organized and existing municipality incorporated and existing under the provisions of the laws of the State of Illinois, and is now operating under the provisions of the Illinois Municipal Code, as amended; and WHEREAS, the City Council of the City (the "Corporate Authorities") has determined that it is advisable, necessary and in the best interests of the public health, safety and welfare to refund the City's outstanding General Obligation Bonds (Sales Tax Alternate Revenue Source), Series 1997A, and General Obligation Bonds (Alternate Revenue Source), Series 2002 (the "Refunding"), all in accordance with the estimate of costs therefor; and WHEREAS, the estimated cost of the Refunding, including legal, financial, bond discount, printing and publication costs and other expenses is $2,800,000, and there are insufficient funds on hand and lawfully available to pay such costs; and WHEREAS, it is necessary and for the best interests of the City that the Refunding be undertaken and in order to finance the costs thereof it will be necessary for the City to issue up to $2,800,000 bonds, being general obligation bonds payable from all collections distributed to the City from those taxes imposed by the State of Illinois pursuant to the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act and the Retailer's Occupation Tax Act, each as supplemented and amended from time to time, or substitute taxes therefor as provided in the future (the "Alternate Bonds"), as authorized to be issued at this time pursuant to the 'Local Government Debt Reform Act of the State of Illinois, as amended; and -3- WHEREAS, if the above -mentioned revenue source is insufficient to pay the Alternate Bonds, ad valorem property taxes upon all taxable property in the City without limitation as to rate or amount are authorized to be extended to pay the principal of and interest on the Alternate Bonds: Now, THEREFORE, Be It Ordained by the City Council of the City of McHenry, McHenry County, Illinois, as follows: Section 1. Incorporation of Preambles. The Corporate Authorities hereby find that all of the recitals contained in the preambles to this Ordinance are full, true and correct and do incorporate them into this Ordinance by this reference. Section 2. Determination to Issue Bonds. It is necessary and in the best interests of the City to undertake the Refunding for the public health, safety and welfare, in accordance with the estimate of costs as hereinabove described, and that for such purpose, there are hereby authorized to be issued and sold the Alternate Bonds in an aggregate principal amount not to exceed $2,800,000. Section 3. Publication. This Ordinance, together with a notice in the statutory form (the "Notice"), shall be published once within ten (10) days after passage hereof by the Corporate Authorities in the Northwest Herald, being a newspaper of general circulation in the City, and if no petition, signed by 1,153 electors (the same being equal to the greater of (i) 7.5% of the registered voters in the City or (ii) 200 of those registered voters or 15% of the registered voters, whichever is less), asking that the issuance of the Bonds be submitted to referendum is filed with the City Clerk within thirty (30) days after the date of the publication of this Ordinance and the Notice, then the Alternate Bonds shall be authorized to be issued. Section 4. Additional Ordinances. If no petition meeting the requirements of applicable law is filed during the petition period hereinabove referred to, then the Corporate -4- Authorities may adopt additional ordinances or proceedings supplementing or amending this Ordinance providing for the issuance and sale of the Alternate Bonds, prescribing all the details of the Alternate Bonds, so long as the maximum amount of the Alternate Bonds, as set forth in this Ordinance is not exceeded and there is no material change in the Refunding or other purposes described herein. Such additional ordinances or proceedings shall in all instances become effective immediately without publication or posting or any further act or requirement. This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for the issuance of the Alternate Bonds, under applicable law. Section 5. Severability. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. -5- Section 6. Repealer. 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. ADOPTED by the Corporate Authorities on the 23rd day of May, 2005. AYES: SANTI, GLAB, SCHAEFER, MURGATROYD, WIMMER, PETERSON, CONDON. NAYS: NONE ABSENT: NONE APPROVED on May 23, 2005. "41ez� d -�� yor, City of McHenry, McHenry County, Illinois PUBLISHED in the Northwest Herald on the day of May, 2005. RECORDED in the City Records on May 23, 2005. ATTEST: ty Clerk, City of M Henry, McHenry County, Illinois By Kathleen M. Kunzer, Deputy Clerk Im NOTICE OF INTENT TO ISSUE BONDS AND RIGHT TO FILE PETITIONS Notice is hereby given that pursuant to Ordinance No. ORD-05-125gdopted on the 23rd day of May, 2005 (the "Ordinance"), the City of McHenry, McHenry County, Illinois (the "City"), intends to issue its General Obligation Bonds (Alternate Revenue Source), in an aggregate principal amount not to exceed $2,800,000 (the "Bonds"), and bearing interest per annum at not to exceed the maximum rate authorized by law at the time of the sale thereof, for the purpose of paying the costs of refunding the City's outstanding General Obligation Bonds (Sales Tax Alternate Revenue Source), Series 1997A and General Obligation Bonds (Alternate Revenue Source), Series 2002 (the "Refunding"), such refunding being further described in. the Ordinance. The revenue source that will be pledged to the payment of the principal of and interest on the Bonds will be all collections distributed to the City from those taxes imposed by the State of Illinois pursuant to the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act and the Retailer's Occupation Tax Act, each as supplemented and amended from time to time, or substitute taxes therefor as provided in the future. If this revenue source is insufficient to pay the Bonds, ad valorem property taxes upon all taxable property in the City without limitation as to rate or amount are authorized to be extended to pay the principal of and interest on the Bonds. A complete copy of the Ordinance follows this notice. Notice is hereby further given that if a petition signed by 1,153 or more electors of the City (the same being equal to the greater of (i) 7.5% of the registered voters of the City or (ii) 200 of those registered voters or 15% of the registered voters, whichever is less) asking that the issuance of the Bonds be submitted to referendum is filed with the City Clerk within thirty (30) days after the date of publication of the Ordinance and this notice, an election on the proposition to issue the Bonds shall be held on the 21 st day of March, 2006. The Circuit Court may declare that an emergency referendum should be held prior to said election date pursuant to the provisions of Section 2A-1.4 of the Election Code of the State of Illinois, as amended. By order of the City Council of the City of McHenry, McHenry County, Illinois, this 23rd day of May, 2005. /s/ Janice C. Jones City Clerk, City of McHenry, McHenry County, Illinois Notice to publisher: Please be certain that this notice appears above the name of the City Clerk. -2-