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HomeMy WebLinkAboutOrdinances - ORD-06-1320 - 07/10/2006 - AUTHORIZE ISSUANCE OF GO BONDS IN THE AMOUNT OF $3ORDINANCE NUMBER 0RD-0b_1320 AN ORDINANCE authorizing the issuance of General Obligation Bonds (Alternate Revenue Source), in an aggregate principal amount not to exceed $3,000,000, for the purpose of paying the costs of certain capital improvements related to the Riverwalk Project and expenses incident thereto. WHEREAS, the City of McHenry, McHenry County, Illinois (the "City"), is a municipality duly organized and operating under the laws of the State of Illinois; and WHEREAS, the City Council (the "City Council ') has determined that it is advisable, necessary and in the best interests of the City to pay for certain capital improvements related to the Riverwalk Project and the expenses incident thereto (the "Project"), in accordance with the preliminary estimate of costs heretofore approved and on file in the office of the City Clerk; and WHEREAS, the estimated costs of the Project, including engineering, legal, financial, bond interest, bond discount, printing and publication costs, and other related expenses, is not less than $3,000,000, and there are insufficient funds on hand and lawfully available to pay such costs; and WHEREAS, pursuant to the provisions of the Local Government Debt Reform Act of the State of Illinois, as amended (the "Reform Act"), "Alternate Bonds" as defined in the Reform Act may be issued pursuant to "Applicable Law" (as defined in the Reform Act) for the Project; and WHEREAS, the City has a "revenue source," as defined in the Reform Act, being certain incremental property taxes to be derived from the Downtown McHenry Tax Increment Redevelopment Project Area and to be received by the City (the "Revenue Source"), and accordingly the City is authorized to issue Alternate Bonds, secured by such revenue source or any portion thereof, all pursuant to the provisions of the Reform Act; and WHEREAS, if the 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; and WHEREAS, it is necessary and for the best interests of the City that the Project be undertaken and that up to $3,000,000 in aggregate principal amount of Alternate Bonds, being general obligation bonds payable from the Revenue Source, be authorized to be issued at this time pursuant to the Reform Act: 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 City Council hereby finds that the recitals contained in the preambles to this ordinance are true and correct and 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 Project for the public health, safety and welfare, as described and that for the purpose of financing the Project, and there are hereby authorized to be issued and sold the General Obligation Bonds (Alternate Revenue Source) (the "Alternate Bonds'), of the City, in an aggregate principal amount of not to exceed $3,000,000. Section 3. Publication. This ordinance, together with a notice in the statutory form, shall be published once by the City Council in the Northwest Herald, being a newspaper of general circulation in the City, and if no petition, signed by 1,160 electors (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) and asking that the question of the issuance of the Alternate Bonds be submitted to the electors of the City, is filed with the City Clerk within 30 days after the date of the publication of this ordinance and said notice, then this Ordinance shall be in full force and effect. A petition form shall be provided by the City Clerk to any individual requesting one. -2- Section 4. Additional Ordinances. If no petition meeting the requirements of Applicable Law is filed during the petition period hereinabove referred to, then the City Council may adopt additional ordinances or proceedings supplementing or amending this Ordinance providing for the Project, and the issuance and sale of the Alternate Bonds, prescribing all the details of said Alternate Bonds, so long as the maximum amount of said Bonds as set forth in this ordinance is not exceeded and there is no material change in the Project or purposes described herein. Such additional ordinances or proceedings shall in all instances become effective in accordance with applicable law. This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for the issuance of said Bonds under applicable law. Section S. 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. -3- 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 City Council on the 1 Oth day of July, 2006, pursuant to a roll call vote as follows: GERALDINE A. CONDON ABSENT VICTOR A. SANTI ANDREw A. GLAB AYE JEFFREY A. SCHAEFER STEVEN C. MURGATROYD AYE RICHARD W. WIMMER ROBERT J. PETERSON AYE AYE AYE AYE APPROVED by me, as Mayor of the City of McHenry, McHenry County, Illinois, the loth day of July, 2006. MAYOR PASSED by the City Council of the City of McHenry, McHenry County, Illinois, the 1 Oth day of July, 2006. Attest: C , CITY C E C -4-