HomeMy WebLinkAboutOrdinances - ORD-13-1620 - 03/18/2013 - ISSUANCE OF 2380000 GO REFUNDING BONDS 2013 FOR PUORDINANCE NUMBER 13-1620
AN ORDINANCE providing for the issuance of $2,380,000 General
Obligation Refunding Bonds, Series 2013, of the City of McHenry,
McHenry County, Illinois, for the purpose of providing for the
payment of certain capital improvements, refunding certain
outstanding bonds and for the payment of the expenses incident
thereto, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of and interest on
said bonds.
Adopted by the City Council
on the 18th day of March, 2013.
TABLE OF CONTENTS
SECTION
HEADING
PAGE
SECTION1.
DEFINITIONS ......................................................................................................
3
SECTION 2.
INCORPORATION OF PREAMBLES ......................................................................
5
SECTION 3.
DETERMINATION TO ISSUE BONDS ...................................................................
5
SECTION 4.
BOND DETAILS ..................................................................................................
6
SECTION 5.
GLOBAL BOOK -ENTRY SYSTEM ........................................................................
7
SECTION 6.
EXECUTION; AUTHENTICATION ........................................................................
9
SECTION 7.
TERM BONDS, MANDATORY REDEMPTION AND COVENANTS .......................
10
SECTION 8.
OPTIONAL REDEMPTION ..................................................................................
10
SECTION 9.
TERM BONDS PURCHASE OR REDEMPTION ....................................................
11
SECTION 10.
REDEMPTION PROCEDURE ...............................................................................
I I
SECTION 11.
REGISTRATION AND EXCHANGE OR TRANSFER OF BONDS;
PERSONS TREATED AS OWNERS ................................................................
14
SECTION12.
FORM OF BOND ................................................................................................
16
SECTION13.
TAX LEVY ........................................................................................................
22
SECTION 14.
FILING WITH COUNTY CLERK .........................................................................
24
SECTION 15.
SALE OF BONDS ...............................................................................................
24
SECTION 16.
CREATION OF FUNDS AND APPROPRIATIONS .................................................
25
SECTION 17.
GENERAL ARBITRAGE COVENANTS ................................................................
27
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SECTION 18.
REGISTERED FORM ..........................................................................................
28
SECTION 19.
QUALIFIED TAX-EXEMPT OBLIGATIONS .........................................................
28
SECTION 20.
RIGHTS AND DUTIES OF BOND REGISTRAR AND PAYING AGENT ..................
28
SECTION 21.
TAXES PREVIOUSLY LEVIED ...........................................................................
29
SECTION 22.
DEFEASANCE ...................................................................................................
29
SECTION 23.
CONTINUING DISCLOSURE UNDERTAKING .....................................................
30
SECTION 24.
CALL OF PRIOR BONDS ....................................................................................
30
SECTION 25.
PURCHASE OF THE GOVERNMENT SECURITIES ...............................................
31
SECTION 26.
MUNICIPAL BOND INSURANCE ........................................................................
31
SECTiON 27.
PUBLICATION OF ORDINANCE .........................................................................
31
SECTION28.
SEVERABILITY .................................................................................................
31
SECTION 29.
SUPERSEDER AND EFFECTIVE DATE ...............................................................
32
This Table of Contents is for convenience only and is not a part of the Ordinance.
ORDINANCE NuMBER 13-1620
AN ORDINANCE providing for the issuance of $2,380,000 General
Obligation Refunding Bonds, Series 2013, of the City of McHenry,
McHenry County, Illinois, for the purpose of providing for the
payment of certain capital improvements, refunding certain
outstanding bonds and for the payment of the expenses incident
thereto, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of and interest on
said bonds.
WHEREAS by virtue of its population, the City of McHenry, McHenry County, Illinois
(the "City"), and pursuant to the provisions of Section 6 of Article VII of the Constitution of the
State of Illinois, the City is a home rule unit and may exercise any power or perform any
function pertaining to its government and affairs including, but not limited to, the power to tax
and to incur debt; and
WHEREAS pursuant to the provisions of said Section 6, the City has the power to incur
debt payable from ad valorem property tax receipts or from any other lawful source and maturing
within 40 years from the time it is incurred without prior referendum approval; and
WHEREAS the City has heretofore issued the following outstanding and validly subsisting
and unpaid general obligation bonds:
GENERAL OBLIGATION REFUNDING BONDS (SALES TAx
ALTERNATE REVENUE SOURCE), SERIES 2005
Original Principal Amount: $2,560,000
Dated: July 1, 2005
Originally Due: May I of the years 2006 through 2011, 2013 and 2016 through 2019
Amount proposed to be refunded: $1,925,000
Bonds Due on May I as follows:
YEAR
AMOUNT
RATE
2016
$295,000
3.70%
2017
515,000
3.80%
2018
545,000
3.85%
2019
570,000
3.90%
which bonds may be called for redemption on their May 4, 2013, call date at the redemption
price of par plus accrued interest (hereinafter the "Prior Bonds").
WHEREAS the Prior Bonds bear interest at higher rates than those currently available in
the bond markets and may be refunded for net debt service savings; and
WHEREAS pursuant to the hereinafter defined Act, the City is authorized to issue general
obligation bonds to accomplish the refunding of the Prior Bonds (the "Refunding") and it is
deemed necessary and desirable to provide for the issuance of $1,965,000 principal amount
general obligation bonds for such purpose and for the purpose of realizing such net debt service
savings from the Refunding in accordance with the Act; and
WHEREAS the City Council has considered the needs of the City and has heretofore
determined and does hereby determine that it is advisable, necessary and in the best interests of
the City to acquire and construct capital improvements, including (without limitation) roof
repairs to the City's public works building (all of such improvements and acquisitions to be
collectively known as the "Project"), all as shown in the plans and cost estimates as prepared by
the City; and
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WHEREAS the estimated cost to the City of the Project does not exceed the sum of
$415,000 plus any estimated available amount of interest earnings on said sum prior to its
expenditure; and
WHEREAS there are insufficient funds on hand and available to pay the costs of the
Project, and it is necessary for that purpose that a sum to pay such costs be borrowed at this time,
and in evidence of such indebtedness, general obligation bonds of the City be issued in the
principal amount of $415,000, and that such indebtedness be incurred in accordance with the
Act, and without submitting the question of incurring such indebtedness to the electors of the
City for their approval; and
WHEREAS the City Council does hereby determine that it is advisable and in the best
interests of the City to borrow $2,380,000 at this time pursuant to the Act for the purpose of
paying the costs of the Refunding and the Project and, in evidence of such borrowing, issue its
full faith and credit bonds in one or more series in the principal amount of $2,380,000;
Now THEREFORE Be It Ordained by the City Council of the City of McHenry, McHenry
County, Illinois, in the exercise of its home rule powers, as follows:
Section 1. Definitions. In addition to such other words and terms used and defined in
this Ordinance, the following words and terms used in this Ordinance shall have the following
meanings, unless, in either case, the context or use clearly indicates another or different meaning
is intended:
"Act" means, collectively, the Illinois Municipal Code, as supplemented and amended,
the home rule powers of the City under Section 6 of Article VII of the Illinois Constitution of
1970; and, in the event of conflict between the provisions of said code and home rule powers, the
home rule powers shall be deemed to supersede the provisions of said code.
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"Bond" or "Bonds" means one or more, as applicable, of the $2,380,000 General
Obligation Refunding Bonds, Series 2013, authorized to be issued by this Ordinance.
"Bond Fund" means the Bond Fund established and defined in Section 16 of this
Ordinance.
"Bond Moneys" means the Pledged Taxes and any other moneys deposited into the Bond
Fund and investment income earned in the Bond Fund.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence the
registration and transfer of the Bonds.
"Bond Registrar" means The Bank of New York Mellon Trust Company, National
Association, Chicago, Illinois, a national banking association having trust powers, or a successor
thereto or a successor designated as Bond Registrar hereunder.
"City" means the City of McHenry, McHenry County, Illinois.
"City Council" means the City Council of the City.
"Code" means the Internal Revenue Code of 1986, as amended.
"County Clerk" means the County Clerk of The County of McHenry, Illinois.
"Escrow Agent" means The Bank of New York Mellon Trust Company, National
Association, Chicago, Illinois, a national banking association having trust powers, or a successor
thereto or a successor designated as Escrow Agent hereunder.
"Escrow Agreement" means the agreement by and between the City and the Escrow
Agent as authorized in Section 16 hereof and set forth as Exhibit A.
"Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and
passed by the City Council on the 18th day of March, 2013
"Paying Agent" means The Bank of New York Mellon Trust Company, National
Association, Chicago,,Illinois, a national banking association having trust powers, or a successor
thereto or a successor designated as Paying Agent hereunder.
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"Pledged Taxes" means the taxes levied on the taxable property within the City to pay
principal of and interest on the Bonds as made in Section 13 hereof.
"Prior Bonds" mean the bonds of the City described and defined as such in the
preambles to this Ordinance.
"Project" means the project described in the preambles hereto.
"Purchaser" means Bankers' Bank, Madison, Wisconsin.
"Reftinding" means the refunding of the Prior Bonds from proceeds of the Bonds and
such other lawfully available funds of the City as necessary.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and received
thereon as excludable from the gross income of the owners thereof under the Code for federal
income tax purposes.
"Term Bonds" means Bonds subject to mandatory redemption by operation of the Bond
Fund and designated as term bonds in Section 7 hereof.
Section 2. Incorporation of Preambles. The City Council hereby finds that all of the
recitals contained in the preambles to this Ordinance are true, correct and complete and does
incorporate them into this Ordinance by this reference.
Section 3. Determination to Issue Bonds. It is necessary and in the best interests of the
City to provide for the Refunding to achieve a net debt service savings, to acquire and construct
the Project, to pay all related costs and expenses incidental thereto, and to borrow money and
issue the Bonds for such purposes. It is hereby found and determined that such borrowing of
money is necessary for the welfare of the government and affairs of the City, is for a proper
public purpose or purposes and is in the public interest, and is authorized pursuant to the Act;
and these findings and determinations shall be deemed conclusive.
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Section 4. Bond Details. For the purpose of providing for such costs, there shall be
issued and sold the Bonds in the principal amount of $2,380,000. The Bonds shall each be
designated "General Obligation Refunding Bond, Series 2013 "; be dated April 3, 2013 (the
"Dated Date"); and shall also bear the date of authentication thereof. The Bonds shall be in
fully registered form, shall be in denominations of $5,000 each or authorized integral multiples
thereof (but no single Bond shall represent principal maturing on more than one date), and shall
be numbered I and upward. The Bonds shall become due and payable (subject to prior
redemption as hereinafter described) on May I of the years and in the amounts and bearing
interest at the rates percent per annum as follows:
YEAR
AMOUNT
RATE
2014
$125,000
0.40%
2015
150,000
0.55%
2016
150,000
0.70%
2017
550,000
0.85%
2018
565,000
1.00%
2019
580,000
1.30%
2023
120,000
2.10%
2027
140,000
2.75%
Each Bond shall bear interest from the later of its Dated Date as herein provided or from
the most recent interest payment date to which interest has been paid or duly provided for, until
the principal amount of such Bond is paid or duly provided for, such interest (computed upon the
basis of a 360-day year of twelve 30-day months) being payable on May I and November I of
each year, commencing on November 1, 2013. Interest on each Bond shall be paid by check or
draft of the Paying Agent, payable upon presentation thereof in lawful money of the United
States of America, to the person in whose name such Bond is registered at the close of business
on the applicable Record Date (the "Record Date"), and mailed to the registered owner of the
Bond as shown in the Bond Register or at such other address furnished in writing by such
Registered Owner. The Record Date shall be the 15th day of the month next preceding any
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regular or other interest payment date occurring on the Ist day of any month and 15 days
preceding any interest payment date occasioned by the redemption of Bonds on other than the
lst day of a month. The principal of the Bonds shall be payable in lawful money of the United
States of America upon presentation thereof at the principal corporate trust office of the Paying
Agent in the City of Chicago, Illinois, or at successor Paying Agent and locality.
Section 5. Global Book -Entry System. The Bonds shall be initially issued in the form
of a separate single fully registered Bond for each of the maturities of the Bonds as provided in
Section 4 hereof, and the ownership of each such Bond shall be registered in the Bond Register
in the name of Cede & Co., or any successor thereto ("Cede"), as nominee of The Depository
Trust Company, New York, New York, and its successors and assigns ("DTC"). All of the
outstanding Bonds shall be registered in the Bond Register in the name of Cede, as nominee of
DTC, except as hereinafter provided. The Mayor, Treasurer and City Clerk of the City are
hereby authorized to execute and deliver on behalf of the City such letters to or agreements with
DTC and the Bond Registrar as shall be necessary to effectuate such book -entry system (any
such letter or agreement being referred to herein as the "Representation Letter").
With respect to the Bonds registered in the Bond Register in the name of Cede, as
nominee of DTC, the City and the Bond Registrar shall have no responsibility or obligation to
any broker -dealer, bank or other financial institution for which DTC holds Bonds from time to
time as securities depository (each such broker -dealer, bank or other financial institution being
referred to herein as a "DTC Participant") or to any person on behalf of whom such a DTC
Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence,
the City and the Bond Registrar shall have no responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede or any DTC Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a
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registered owner of a Bond as shown in the Bond Register, of any notice with respect to the
Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any
other person, other than a registered owner of a Bond as shown in the Bond Register, of any
amount with respect to principal of or interest on the Bonds. The City and the Bond Registrar
may treat and consider the person in whose name each Bond is registered in the Bond Register as
the holder and absolute owner of such Bond for the purpose of payment of principal and interest
with respect to such Bond, for the purpose of giving notices of redemption and other matters
with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and
for all other purposes whatsoever. The Bond Registrar shall pay all principal of and interest on
the Bonds only to or upon the order of the respective registered owners of the Bonds, as shown
in the Bond Register, or their respective attorneys duly authorized in writing, and all such
payments shall be valid and effective to fully satisfy and discharge the City's obligations with
respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so
paid. No person other than a registered owner of a Bond as shown in the Bond Register, shall
receive a Bond certificate evidencing the obligation of the City to make payments of principal
and interest with respect to any Bond. Upon delivery by DTC to the Bond Registrar of written
notice to the effect that DTC has determined to substitute a new nominee in place of Cede, the
name "Cede" in this Ordinance shall refer to such new nominee of DTC.
In the event that (i) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among the
City, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated for
any reason or (iii) the City determines that it is in the best interests of the beneficial owners of
the Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC
Participants of the availability through DTC of Bond certificates and the Bonds shall no longer
be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC.
At the time, the City may determine that the Bonds shall be registered in the name of and
deposited with such other depository operating a global book -entry system, as may be acceptable
to the City, or such depository's agent or designee, and if the City does not select such alternate
global book -entry system, then the Bonds may be registered in whatever name or names
registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with
the provisions of Section 11 hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to
principal of and interest on such Bond and all notices with respect to such Bond shall be made
and given, respectively, in the manner provided in the Representation Letter.
Section 6. Execution; Authentication. The Bonds shall be executed on behalf of the
City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile
signature of its City Clerk, as they may determine, and shall have impressed or imprinted thereon
the corporate seal or facsimile thereof of the City. In case any such officer whose signature shall
appear on any Bond shall cease to be such officer before the delivery of such Bond, such
signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer
had remained in office until delivery. All Bonds shall have thereon a certificate of
authentication, substantially in the form hereinafter set forth, duly executed by the Bond
Registrar as authenticating agent of the City and showing the date of authentication. No Bond
shall be valid or obligatory for any purpose or be entitled to any security or benefit under this
Ordinance unless and until such certificate of authentication shall have been duly executed by the
Bond Registrar by manual signature, and such certificate of authentication upon any such Bond
shall be conclusive evidence that such Bond has been authenticated and delivered under this
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Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed
by it if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that
the same officer sign the certificate of authentication on all of the Bonds issued hereunder.
Section 7. Term Bonds, Mandatory Redemption and Covenants. The Bonds due on
May 1, 2023, are subject to mandatory redemption, in integral multiples of $5,000 selected by lot
by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date,
on May 1 of the years and in the principal amounts as follows:
YEAR PRINCIPAL AmouNT
2020
$30,000
2021
30,000
2022
30,000
The Bonds due on May 1, 2027, are subject to mandatory redemption, in integral multiples of
$5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to
the redemption date, on May 1 of the years and in the principal amounts as follows:
YEAR PRINCIPAL AmouNT
2024
$35,000
2025
35,000
2026
35,000
The City covenants that it will redeem Term Bonds pursuant to the mandatory
redemption requirement for such Term Bonds. Proper provision for mandatory redemption
having been made, the City covenants that the Term Bonds so selected for redemption shall be
payable as at maturity, and taxes shall be levied and collected as provided herein accordingly.
Section 8. Optional Redemption. The Bonds maturing on and after May 1, 2023, shall
be subject to redemption prior to maturity at the option of the City as a whole, or in part in
integral multiples of $5,000 in any order of their maturity as determined by the City (less than all
of the Bonds of a single maturity to be selected by the Bond Registrar), on May 1, 2021, and on
any date thereafter, at the redemption price of par plus accrued interest to the redemption date.
Section 9. Term Bonds Purchase or Redemption. If the City redeems pursuant to
optional redemption as hereinabove provided or purchases Term Bonds of any maturity and
cancels the same from Bond Moneys as hereinafter described, then an amount equal to the
principal amount of Term Bonds so redeemed or purchased shall be deducted from the
mandatory redemption requirements provided for Term Bonds of such maturity, first, in the
current year of such requirement, until the requirement for the current year has been fully met,
and then in any order of such Term Bonds as due at maturity or subject to mandatory redemption
in any year, as the City shall determine. If the City redeems pursuant to optional redemption or
purchases Term Bonds of any maturity and cancels the same from moneys other than Bond
Moneys, then an amount equal to the principal amount of Term Bonds so redeemed or purchased
shall be deducted from the amount of such Term Bonds as due at maturity or subject to
mandatory redemption requirement in any year, as the City shall determine.
Section 10. Redemption Procedure. For a mandatory redemption of Term Bonds, the
Bond Registrar shall proceed without further authorization or direction to provide for such
redemption. For optional redemptions, the City shall, at least 45 days prior to the redemption
date (unless a shorter time period shall be satisfactory to the Bond Registrar), notify the Bond
Registrar of such redemption date and of the maturities and principal amounts of Bonds to be
redeemed. In the event of an optional redemption of less than all of a given maturity of Term
Bonds, the City shall also notify the Bond Registrar of the allocation of the amount to be
redeemed to the mandatory redemption requirements for such Tenn Bonds. For purposes of any
redemption of less than all of the Bonds of a single maturity, the particular Bonds or portions of
Bonds to be redeemed shall be selected by lot not more than 60 days prior to the redemption date
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by the Bond Registrar for the Bonds of such maturity by such method of lottery as the Bond
Registrar shall deem fair and appropriate; provided, however, that such lottery shall provide for
the selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000
portion of a Bond shall be as likely to be called for redemption as any other such $5,000 Bond or
$5,000 portion.
The Bond Registrar shall promptly notify the City and the Paying Agent in writing of the
Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for
partial redemption, the principal amount thereof to be redeemed.
Unless waived by the registered owner of Bonds to be redeemed, official notice of any
such redemption shall be given by the Bond Registrar on behalf of the City by mailing the
redemption notice by first class mail not less than 30 days and not more than 60 days prior to the
date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the
address shown on the Bond Register or at such other address as is furnished in writing by such
registered owner to the Bond Registrar.
All official notices of redemption shall include the full name of the Bonds to be redeemed
and at least the information as follows:
(a) the redemption date;
(b) the redemption price;
(c) if less than all of the outstanding Bonds of a particular maturity are to be
redeemed, the identification (and, in the case of partial redemption of Bonds within such
maturity, the respective principal amounts) of the Bonds to be redeemed;
(d) a statement that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption and that
interest thereon shall cease to accrue from and after said date;
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(e) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office of
the Paying Agent; and
(f) such other information then required by custom, practice or industry
standard.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed shall
have been received by the Paying Agent prior to the giving of such notice of redemption, such
notice may, at the option of the City, state that said redemption shall be conditional upon the
receipt of such moneys by the Paying Agent on or prior to the date fixed for redemption. If such
moneys are not received, such notice shall be of no force and effect, the City shall not redeem
such Bonds, and the Bond Registrar shall give notice, in the same manner in which the notice of
redemption shall have been given, that such moneys were not so received and that such Bonds
will not be redeemed. Otherwise, prior to any redemption date, the City shall deposit with the
Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or
portions of Bonds which are to be redeemed on that date.
Subject to the provisions for a conditional redemption described above, notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the redemption price therein specified,
and from and after such date (unless the City shall default in the payment of the redemption
price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such
Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Paying
Agent at the redemption price. The procedure for the payment of interest due as part of the
redemption price shall be as herein provided for payment of interest otherwise due. Upon
surrender for any partial redemption of any Bond, there shall be prepared for the registered
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owner a new Bond or Bonds of like tenor, of authorized denominations, of the same maturity,
and bearing the same rate of interest in the amount of the unpaid principal.
If any Bond or portion of a Bond called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest
from the redemption date at the rate bome by the Bond or portion of Bond so called for
redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond
Registrar and shall not be reissued.
As part of their respective duties hereunder, the Bond Registrar and Paying Agent shall
prepare and forward to the City a statement as to notice given with respect to each redemption
together with copies of the notices as mailed and published.
Section 11. Registration and Exchange or Transfer of Bonds; Persons Treated as
Owners. The City shall cause books (the "Bond Register") for the registration and for the
transfer of the Bonds as provided in this Ordinance to be kept at the principal corporate trust
office of the Bond Registrar in the City of Chicago, Illinois, which is hereby constituted and
appointed the registrar of the City for the Bonds. The City is authorized to prepare, and the Bond
Registrar or such other agent as the City may designate shall keep custody of, multiple Bond
blanks executed by the City for use in the transfer and exchange of Bonds.
Any Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender for
transfer or exchange of any Bond at the principal corporate trust office of the Bond Registrar,
duly endorsed by or accompanied by a written instrument or instruments of transfer or exchange
in form satisfactory to the Bond Registrar and duly executed by the registered owner or an
attorney for such owner duly authorized in writing, the City shall execute and the Bond Registrar
shall authenticate, date and deliver in the name of the transferee or transferees or, in the case of
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an exchange, the registered owner, a new fully registered Bond or Bonds of like tenor, of the
same maturity, bearing the same interest rate, of authorized denominations, for a like aggregate
principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening of
business on such interest payment date or during the period of 15 days preceding the giving of
notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has
been called for redemption.
The execution by the City of any fully registered Bond shall constitute full and due
authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate,
date and deliver such Bond; provided, however, that the principal amount of Bonds of each
maturity authenticated by the Bond Registrar shall not at any one time exceed the authorized
principal amount of Bonds for such maturity less: the amount of such Bonds which have been
paid.
The person in whose name any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes, and payment of the principal of or interest on any
Bond shall be made only to or upon the order of the registered owner thereof or his legal
representative. All such payments shall be valid and effectual to satisfy and discharge the
liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City or
the Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of Bonds,
except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond
surrendered for redemption.
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Section 12. Form of Bond. The Bonds shall be in substantially the form hereinafter set
forth; provided, however, that if the text of the Bonds is to be printed in its entirety on the front
side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side
for Additional Provisions" shall be ornitted and the text of paragraphs set forth for the reverse
side shall be inserted immediately after the first paragraph.
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[FORM OF BOND - FRONT SIDE]
REGISTERED REGISTERED
No. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
THE COUNTY OF WHENRY
CITY OF MCHENRY
GENERAL OBLIGATION REFUNDING BOND, SERIES 2013
See Reverse Side for
Additional Provisions.
Interest Maturity
Rate: % Date: May 1,
Registered Owner: CEDE & CO.
Principal Amount:
Dated
Date: April 3,2013 CUSIP: 581170
DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of McHenry, McHenry County,
Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois (the
"City"), hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity
Date identified above (subject to right of prior redemption as hereinafter stated), the Principal
Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve
30-day months) on such Principal Amount from the later of the Dated Date of this Bond
identified above or from the most recent interest payment date to which interest has been paid or
duly provided for, at the Interest Rate per annum identified above, such interest to be payable on
May I and November 1 of each year, commencing November 1, 2013, until said Principal
Amount is paid or duly provided for. The principal of or redemption price on this Bond is
payable in lawful money of the United States of America upon presentation hereof at the
principal corporate trust office of The Bank of New York Mellon Trust Company, National
Association, in the City of Chicago, Illinois, as paying agent (the "Paying Agent"). Payment of
interest shall be made to the Registered Owner hereof as shown on the registration books of the
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City maintained by The Bank of New York Mellon Trust Company, National Association, in the
City of Chicago, Illinois, as bond registrar (the "Bond Registrar"), at the close of business on the
applicable Record Date (the "Record Date"). The Record Date shall be the I 5th day of the
month next preceding any regular or other interest payment date occurring on the I st day of any
month and 15 days preceding any interest payment date occasioned by the redemption of Bonds
on other than the Ist day of a month. Interest shall be paid by check or draft of the Paying
Agent, payable upon presentation in lawful money of the United States of America, mailed to the
address of such Registered Owner as it appears on such registration books or at such other
address furnished in writing by such Registered Owner to the Bond Registrar, or as otherwise
agreed by the City and Cede & Co., as nominee, or successor, for so long as this Bond is held by
The Depository Trust Company, New York, New York, the depository, or nominee, in book -
entry only form as provided for same.
Reference is hereby made to the further provisions of this Bond set forth on the reverse
hereof, and such further provisions shall for all purposes have the same effect as if set forth at
this place.
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, including the authorizing Act, have existed and have been properly done,
happened and been performed in regular and due form and time as required by law; that the
indebtedness of the City, represented by the Bonds, and including all other indebtedness of the
City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other
lawful 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 the City sufficient to pay the interest
hereon as the same falls due and also to pay and discharge the principal hereof at maturity.
M.
This Bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Bond Registrar.
IN WITNESS WHEREOF the City of McHenry, McHenry County, Illinois, by its City
Council, has caused this Bond to be executed by the manual or duly authorized facsimile
signature of its Mayor and attested by the manual or duly authorized facsimile signature of its
City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all
as appearing hereon and as of the Dated Date identified above.
ATTEST:
City Clerk, City of McHenry
McHenry County, Illinois
[SEAL]
Date of Authentication:
CERTIFICATE
OF
AUTHENTICATION
This Bond is one of the Bonds described in
the within -mentioned Ordinance and is one of
the General Obligation Refunding Bonds,
Series 2013, having a Dated Date of April 3,
2013, of the City of McHenry, McHenry
County, Illinois.
THE BANK OF NEW YORK MELLON TRUST
ComPANY, NATIONAL ASSOCIATION,
as Bond Registrar
.0
Authorized Officer
Mayor, City of McHenry
McHenry County, Illinois
Bond Registrar and Paying Agent:
The Bank of New York Mellon Trust
Company, National Association
Chicago, Illinois
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[FORM OF BOND - REVERSE SIDE]
This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of
$2,380,000 issued by the City for the purpose of paying the costs of refunding certain
outstanding bonds of the City and the costs of the Project, and of paying expenses incidental
thereto, all as described and defined in the ordinance authorizing the Bonds (the "Ordinance"),
pursuant to and in all respects in compliance with the applicable provisions of the Illinois
Municipal Code, as supplemented and amended, and as further supplemented and, where
necessary, superseded, by the powers of the City as a home rule unit under the provisions of
Section 6 of Article VII of the Illinois Constitution of 1970 (such code and powers being the
"Act"), and with the Ordinance, which has been duly passed by the City Council of the City,
approved by the Mayor, and published, in all respects as by law required.
Subject to the provisions relating to this Bond remaining in book -entry only form, this
Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and
upon payment of the charges as set forth in the Ordinance. Upon surrender for transfer or
exchange of this Bond at the principal corporate trust office of the Bond Registrar in the City of
Chicago, Illinois, duly endorsed by or accompanied by a written instrument or instruments of
transfer or exchange in form satisfactory to the Bond Registrar and duly executed by the
Registered Owner or an attorney for such owner duly authorized in writing, the City shall
execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee
or transferees or, in the case of an exchange, the Registered Owner, a new fully registered Bond
or Bonds of like tenor, of the same maturity, bearing the same interest rate, of authorized
denominations, for a like aggregate principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening of
business on such interest payment date or during the period of 15 days preceding the giving of
IKQ
notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has
been called for redemption.
The Bonds may be subject to optional and mandatory redemption, and the holder of this
Bond shall refer to the provisions of the Ordinance for the terms and provision for notice of
redemption.
The City, the Bond Registrar and the Paying Agent may deem and treat the Registered
Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on
account of principal hereof and interest due hereon and for all other purposes, and the City, the
Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary.
ASSIGNMENT
FOR VALUE RECErVED, the undersigned sells, assigns and transfers unto
Here insert Social Security Number,
Employer Identification Number or
F-7 other Identifying Number
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
as attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and assignment must correspond with the name of the
Registered Owner as it appears upon the face of the within Bond, in every particular,
without alteration or enlargement or any change whatever.
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Section 13. Tax Levy. For the purpose of providing funds required to pay the interest on
the Bonds promptly when and as the same falls due, and to pay and discharge the principal
thereof at maturity and as subject to mandatory redemption, there is hereby levied upon all of the
taxable property within the City, in the years for which any of the Bonds are outstanding, a direct
annual tax sufficient for that purpose; and there is hereby levied on all of the taxable property in
the City, in addition to all other taxes, the following direct annual taxes (the Pledged Taxes as
hereinabove defined):
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE DOLLAR SUM OF:
2013
$176,110.00
for interest up to and including
May 1, 2015
2014
$175,285.00
for interest and principal
2015
$574,235.00
for interest and principal
2016
$584,560.00
for interest and principal
2017
$593,910.00
for interest and principal
2018
$36,370.00
for interest and principal
2019
$35,740.00
for interest and principal
2020
$35,110.00
for interest and principal
2021
$34,480.00
for interest and principal
2022
$38,850.00
for interest and principal
2023
$37,887.50
for interest and principal
2024
$36,925.00
for interest and principal
2025
$35,962.50
for interest and principal
The Pledged Taxes and other moneys (excepting proceeds of the Bonds) on deposit
(collectively, the "Bond Moneys") in the Bond Fund shall be applied to pay principal of and
interest on the Bonds as follows:
A. Bond Moneys shall be applied to the payment of interest when due and
principal or redemption price when due at maturity or as redeemed pursuant to mandatory
redemption from the Bond Fund, or
B. On or before January I in each calendar year preceding a May I mandatory
redemption date in the successive calendar year, Bond Moneys up to the amount of the
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redemption requirement on such mandatory redemption date plus interest due on Term
Bonds on such date may be applied (1) to the purchase of Term Bonds of the maturity for
which such mandatory redemption requirement was established at prices (including
commissions and charges, if any) not exceeding par and accrued interest to such May 1 or
(2) to the redemption of such Bonds, without premium, pursuant to optional redemption
provisions applicable thereto. Upon the purchase or redemption of Term Bonds of any
maturity pursuant to this paragraph (B), an amount equal to the principal amount of such
Bonds or applicable portion thereof so purchased or redeemed shall be deducted from the
next mandatory redemption requirement thereafter to become due on such Bonds and any
excess over the amount of such requirement shall be deducted from the future
requirement for such Bonds as the City shall determine.
Interest or principal coming due at any time when there are insufficient funds on hand
from the Pledged Taxes to pay the same shall be paid promptly when due from current funds on
hand in advance of the collection of the Pledged Taxes herein levied; and when the Pledged
Taxes shall have been collected, reimbursement shall be made to said funds in the amount so
advanced. The City covenants and agrees with the purchasers and registered owners 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 Pledged Taxes may be levied, extended and collected
as provided herein and deposited into the Bond Fund.
I
Whenever other funds from any lawful source are made available for the purpose of
paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied
herein for the payment of same, the City Council shall, by proper proceedings, direct the deposit
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of such funds into the Bond Fund and further shall direct the abatement of the taxes by the
amount so deposited. A certified copy or other notification of any such proceedings abating
taxes may then be filed with the County Clerks in a timely manner to effect such abatement.
Section 14. Filing with County Clerk. Promptly, as soon as this Ordinance becomes
effective, a copy hereof, certified by the City Clerk of the City, shall be filed with the County
Clerk; and the County Clerk shall in and for each of the years 2013 to 2025, inclusive, ascertain
the rate percent required to produce the aggregate tax herein provided to be levied as set forth in
each of said years; and the County Clerk shall (to the extent said tax has not been abated as
provided herein) extend the same for collection on the tax books in connection with other taxes
levied in said years in and by the City for general corporate purposes of the City; and in said
years such annual tax shall be levied and collected by and for and on behalf of the City in like
manner as taxes for general corporate purposes for said years are levied and collected, and in
addition to and in excess of all other taxes.
Section 15. Sale of Bonds. The Bonds hereby authorized shall be executed as in this
Ordinance provided as soon after the passage hereof as may be, and thereupon be deposited with
the City Treasurer, and be by said Treasurer delivered to the Purchaser, upon receipt of the
purchase price therefor, the same being $2,370,480, plus accrued interest, if any, to date of
delivery; the contract for the sale of the Bonds heretofore entered into (the "Purchase Contract")
is in all respects ratified, approved and confirmed, it being hereby found and determined that the
Bonds have been sold at such price and bear interest at such rates that neither the true interest
cost �yield) nor the net interest rate received upon such sale exceed the maximum rate otherwise
authorized by Illinois law and that the Purchase 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
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financially interested directly in his own name or indirectly in the name of any other person,
association, trust or corporation, in the Purchase Contract.
The use by the Purchaser of any Preliminary Official Statement and any final Official
Statement relating to the Bonds is hereby ratified, approved and authorized; the execution and
delivery of said final Official Statement is hereby authorized; and the officers of the City are
hereby authorized to take any action as may be required on the part of the City to consummate
the transactions contemplated by the Purchase Contract, this Ordinance, said Preliminary Official
Statement, said final Official Statement and the Bonds.
Section 16. Creation of Funds and Appropriations.
A . There is hereby created the "General Obligation Refunding Bonds, Series 2013,
Bond Fund" (the "Bond Fund"), which shall be the fund for the payment of principal of and
interest on the Bonds. Accrued interest and premium, if any, received upon delivery of the
Bonds shall be deposited into the Bond Fund and be applied to pay first interest coming due on
the Bonds or be deposited into the Escrow Account as set forth in the Escrow Agreement.
B. The Pledged Taxes shall either be deposited into the Bond Fund and used solely and
only for paying the principal of and interest on the Bonds or be used to reimburse a fund or
account from which advances to the Bond Fund may have been made to pay principal of or
interest on the Bonds prior to receipt of Pledged Taxes. Interest income or investment profit
earned in the Bond Fund shall be retained in the Bond Fund for payment of the principal of or
interest on the Bonds on the interest payment date next after such interest or profit is received or,
to the extent lawful and as determined by the City Council, transferred to such other fund as may
be determined. The City hereby pledges, as equal and ratable security for the Bonds, all present
and future proceeds of the Pledged Taxes for the sole benefit of the registered owners of the
Bonds, subject to the reserved right of the City Council to transfer certain interest income or
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investment profit earned in the Bond Fund to other funds of the City, as described in the
preceding sentence.
C. The sum of principal proceeds of the Bonds as is necessary, together with funds of
the City on hand and lawfully available, shall be used to provide for the Refunding, and the
payment of such expenses as may be designated, pursuant to the provisions of an Escrow
Agreement with the Escrow Agent as is designated, all in accordance with the provisions of an
Escrow Agreement, substantially in the form attached hereto as Exhibit A to this Ordinance,
made a part hereof by this reference, and hereby approved; the officers appearing signatory to
such Escrow Agreement are hereby authorized and directed to execute same, their execution to
constitute conclusive proof of action in accordance with this Ordinance, and approval of all
completions or revisions necessary or appropriate to effect the Refunding. The City expressly
authorizes the use of the Government Obligations as set forth in the Escrow Account as set forth
in the Escrow Agreement.
D. The remaining principal proceeds of the Bonds shall be set aside in a separate fund,
hereby created, and designated as the "Project Fund" (the "Project Fund"), hereby created as
the fund to provide for the receipt and disbursement of proceeds of the Bonds for the Project.
Alternatively, the Treasurer of the City may allocate such remaining proceeds to one or more
related project funds of the City already in existence; provided, however, that this shall not
relieve the Treasurer of the City of the duty to account for the proceeds as herein provided. (Any
such one or more funds shall also be referred to hereinafter, collectively, as the "Project Fund".)
The City Council reserves the right, as it becomes necessary from time to time, to revise the list
of expenditures hereinabove set forth, to change priorities, to revise cost allocations between
expenditures and to substitute projects, in order to meet current needs of the City; subject,
however, to the tax covenants set forth herein.
KII
At the time of the issuance of the Bonds, the costs of issuance of the Bonds may be paid
by the Purchaser on behalf of the City from the proceeds of the Bonds.
Section 17. General Arbitrage Covenants. The City hereby covenants that it will not
take any action, omit to take any action or permit the taking or omission of any action within its
control (including, without limitation, making or permitting any use of the proceeds of the
Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be
an arbitrage bond or a private activity bond within the meaning of the Code or would otherwise
cause the interest on the Bonds to be included in the gross income of the recipients thereof for
federal income tax purposes. The City acknowledges that, in the event of an examination by the
Internal Revenue Service (the "IRS") of the exemption from Federal income taxation for interest
paid on the Bonds,. under present rules, the City may be treated as a "taxpayer" in such
examination and agrees that it will respond in a commercially reasonable manner to any inquiries
from the IRS in connection with such an examination.
The City also agrees and covenants with the purchasers and holders of the Bonds from
time to time outstanding that, to the extent possible under Illinois law, it will comply with
whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax-
exempt status of the Bonds.
The City Council hereby authorizes the officials of the City responsible for issuing the
Bonds, the same being the Mayor, City Clerk and Treasurer of the City, to make such further
covenants and certifications as may be necessary to assure that the use thereof will not cause the
Bonds to be arbitrage bonds and to assure that the interest on the Bonds will be exempt from
federal income taxation. In connection therewith, the City and the City Council further agree:
(a) through their officers, to make such further specific covenants, representations as shall be
truthful, and assurances as may be necessary or advisable; (b) to consult with counsel approving
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the Bonds and to comply with such advice as may be given; (c) to pay to the United States, as
necessary, such sums of money representing required rebates of excess arbitrage profits relating
to the Bonds; (d) to file such forms, statements, and supporting documents as may be required
and in a timely manner; and (e) if deemed necessary or advisable by their officers, to employ and
pay fiscal agents, financial advisors, attorneys, and other persons to assist the City in such
compliance.
Section 18. Registered Form. The City recognizes that Section 149(a) of the Code
requires the Bonds to be issued and to remain in fully registered form in order to be and remain
Tax-exempt. In this connection, the City agrees that it will not take any action to permit the
Bonds to be issued in, or converted into, bearer or coupon form.
Section 19. Qualified Tax-exempt Obligations. The City recognizes the provisions of
Section 265(b)(3) of the Code which provide that a "qualified tax-exempt obligation" as therein
defined may be treated by certain financial institutions as if it were acquired on August 7, 1986,
for certain purposes. The City further recognizes that a portion of the Bonds may be "deemed
designated" under said Section, and, as to all Bonds not so "deemed designated," the City hereby
designates each of such Bonds as may be from time to time outstanding for purposes of
Section 265(b)(3) of the Code as a "qualified tax-exempt obligation" as provided therein.
Section 20. Rights and Duties of Bond Registrar and Paying Agent. If requested by the
Bond Registrar or the Paying Agent, or both, any officer of the City is authorized to execute
standard forms of agreements between the City and the Bond Registrar or Paying Agent with
respect to the obligations and duties of the Bond Registrar or Paying Agent hereunder. In
addition to the terms of such agreements and subject to modification thereby, the Bond Registrar
and Paying Agent by acceptance of duties hereunder agree:
M
(a) to act as bond registrar, paying agent, authenticating agent, and transfer
agent as provided herein;
(b) as to the Bond Registrar, to maintain a list of Bondholders as set forth herein
and to furnish such list to the City upon request, but otherwise to keep such list
confidential to the extent permitted by law;
herein;
(c) as to the Bond Registrar, to give notice of redemption of Bonds as provided
(d) as to the Bond Registrar, to cancel and/or destroy Bonds which have been
paid at maturity or upon redemption or submitted for exchange or transfer;
(e) as to the Bond Registrar, to furnish the City at least annually a certificate
with respect to Bonds cancelled and/or destroyed; and
(f) to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
The City Clerk of the City is hereby directed to file a certified copy of this Ordinance
with the Bond Registrar and the Paying Agent.
Section 21. Taxes Previously Levied. The taxes previously levied to pay principal of
and interest on the Prior Bonds, to the extent such principal and interest is provided for from the
proceeds of the Bonds, shall be abated. The filing of a certificate of abatement with the County
Clerk shall constitute authority and direction for the County Clerk to make such abatement.
Section 22. Defeasance. Any Bond or Bonds which (a) are paid and cancelled,
(b) which have matured and for which sufficient sums have been deposited with the Paying
Agent to pay all principal and interest due thereon, or (c) for which sufficient U.S. funds and
direct U.S. Treasury obligations have been deposited with the Paying Agent or similar institution
to pay, taking into account investment earnings on such obligations, all principal of and interest
&I'M
on such Bond or Bonds when due at maturity or as called for redemption, pursuant to an
irrevocable escrow or trust agreement, shall cease to have any lien on or right to receive or be
paid from the Bond Moneys or Pledged Taxes hereunder and shall no longer have the benefits of
any covenant for the registered owners of outstanding Bonds as set forth herein as such relates to
lien and security of the outstanding Bonds. All covenants relative to the Tax-exempt status of
the Bonds; and payment, registration, transfer, and exchange; are expressly continued for all
Bonds whether outstanding Bonds or not.
Section 23. Continuing Disclosure Undertaking. The Mayor or Treasurer of the City is
hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure
Undertaking (the "Continuing Disclosure Undertaking") in substantially the same form as now
before the Council, or with such changes therein as the individual executing the Continuing
Disclosure Undertaking on behalf of the City shall approve, the official's execution thereof to
constitute conclusive evidence of the approval of such changes. When the Continuing
Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the
Continuing Disclosure Undertaking will be binding on the City and the officers, employees and
agents of the City, and the officers, employees and agents of the City are hereby authorized,
empowered and directed to do all such acts and things and to execute all such documents as may
be necessary to carry out and comply with the provisions of the Continuing Disclosure
Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole
remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of
the beneficial owner of any Bond to seek mandamus or specific performance by court order, to
cause the City to comply with its obligations under the Continuing Disclosure Undertaking.
Section 24. Call of Prior Bonds. In accordance with the redemption provisions of the
bond ordinance authorizing the Prior Bonds, the City by the City Council does hereby make
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provision for the payment of and does hereby call (subject only to the delivery of the Bonds) the
Prior Bonds for redemption and payment prior to maturity on May 4, 2013.
Section 25. Purchase of the Government Securities. The Escrow Agent, Speer
Financial, Inc., Chicago, Illinois, and the Purchaser be and the same are each hereby authorized
to act as agent for the City in the purchase of the Government Obligations described and set forth
in the Escrow Agreement.
Section 26. Municipal Bond Insurance. In the event the payment of principal and
interest on the Bonds is insured pursuant to a municipal bond insurance policy (the "Municipal
Bond Insurance Policy") issued by a bond insurer (the "Bond Insurer"), and as long as such
Municipal Bond Insurance Policy shall be in full force and effect, the City and the Bond
Registrar agree to comply with such usual and reasonable provisions regarding presentment and
payment of the Bonds, subrogation of the rights of the Bondholders to the Bond Insurer when
holding Bonds, amendment hereof, or other terms, as approved by the Mayor of the City on
advice of counsel, their approval to constitute full and complete acceptance by the City of such
terms and provisions under authority of this section.
Section 27. Publication of Ordinance. A full, true and complete copy of this Ordinance
shall be published within ten days after passage in pamphlet form by authority of the City
Council.
Section 28. 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.
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Section 29. Superseder and Effective Date. All ordinances, resolutions and orders, or
parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this
Ordinance shall be in full force and effect immediately upon its passage, approval and
publication.
AYES: Santi, Glab, Schaefer, Blake, Wimmer, Peterson and Condon
NAYs: None
ABSENT: None
ADOPTED: March 18, 2013
APPRovED: March 18, 2013
�X� t";" zii�
//Mayor, City of McHenry
McHenry County, Illinois
Recorded In City Records: March 18, 2013.
Published in pamphlet forrn by authority of the City Council on March 18, 2013.
ATTEST:
-32-
STATE OF ILLINOIS
) SS
COUNTY OF McHENRY )
CERTIFICATION OF MINUTES AND ORDINANCE
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the City of McHenry, McHenry County, Illinois (the "City"), and as such official I am the
keeper of the official journal of proceedings, books, records, minutes and files of the City and of
the City Council (the "City Council") thereof.
I do further certify that the foregoing is a full, true and complete transcript of that portion
of the minutes of the meeting of the City Council held on the 18th day of March, 2013 insofar as
the same relates to the adoption of an ordinance entitled:
AN ORDINANCE providing for the issuance of $2,380,000 General
Obligation Refunding Bonds, Series 2013, of the City of McHenry,
McHenry County, Illinois, for the purpose of providing for the
payment of certain capital improvements, refunding certain
outstanding bonds and for the payment of the expenses incident
thereto, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of 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 City Council on the adoption of said
ordinance were taken 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 an agenda for said meeting was posted at the location where said
meeting was held and at the principal office of the City Council at least 72 hours in advance of
the holding of said meeting, that at least one copy of said agenda was continuously available for
public review during the entire 72-hour period preceding said meeting, that said agenda
contained a separate specific item concerning the proposed adoption of said ordinance, a true,
correct and complete copy of said agenda as so posted being attached to this Certificate as
Exhibit A, that said meeting was called and held in strict compliance with the provisions of the
Open Meetings Act of the State of Illinois, as amended, and the Illinois Municipal Code, as
amended, and that the City Council has complied with all of the provisions of said Act and said
Code and with all of the procedural rules of the City Council in the adoption of said ordinance.
IN WrrNESS WHEUOF I hereunto affix my official signature and the seal of the City this
18th day of March, 2013.
[SEAL]
[Attach Exhibit A]
ity Cler
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EXH T BIT A
I
AGENDA ---0
REGULAR CITY COUNCIL MEET1114G
Monday, March 18, 2013, 7:30 PM
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Presentations: a. Certificate of Appreciation to Rebecca Whitehead, NISRA Special Olympia
b. CHARACER COUNTS! Recognition Award to Padmig Martin
5. Public Input Session: 10 Minute Limitation
6. Consent Agenda:
A. Ordinance authorizing the issuance of $2.4M in General Obligation Bonds (series 2013) to refund the General
Obligation Bonds Series 2005 and to issue $415,000 for repairs of the Public Works building, 1415 Industrial Drive;
B. Resolution authorizing the City Engineer to update the official Zoning Map and direct the City Clerk to publish a Notice
of the Zoning Map update;
C. Resolution to accept planning staff assistance delivered by the Chicago Metropolitan Agency for services related to the
Silver & Sleepy Hollow Creeks Watershed Action Plan;
D. As Needed Checks; and
E. List of Bills.
7. Request for use of Petersen Park for the annual Wonder Lake Ski Team Haunted Hay Ride on October 12, 18,
19, 25 & 26, 2013; permission to post temporary advertising signs in municipal right-of-ways; and, waiver of all
associated fees
8. Request for variances to the temporary sign ordinance for total area, numbcr of signs, display time, and use of
pennants for The roomplace located at 2221 North Richmond Road
9. Planning and Zoning Commission recommendation to consider an ordinance authorizing a use variance to allow
two principal land uses, a storage garage and single-family residence, and two principal buildings on one lot as
submitted by S.H. Freund & Son, for the property located at 3409 Pearl Street
10. Planning and Zoning Commission recommendation to consider an Ordinance authorizing a use variance to allow
a crematorium as submitted by Colonial Funeral Home located at 591 Ridgeview Drive
]I. Agreement Between the Rockford Diocese, St. Mary's Catholic Church of McHenry, and the City of McHenry
regarding certain improvements related to the Route 31 Improvement Project
12. Mayor Statement and Reports
13. Committee Reports
14. Staff Reports
15. Executive Session: Personnel
16. Adjournment
Posted: March 13,2013
STATE OF ILLINOIS
) SS
COUNTY OF McHENRY )
CERTIFICATE OF PUBLICATION IN PAMPHLET FORM
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the City of McHenry, McHenry County, Illinois (the "City"), and as such official I am the
keeper of the official journal of proceedings, books, records, minutes, and files of the City and of
the City Council (the "City Council") thereof.
I do further certify that on the 18th day of March, 2013 there was published in pamphlet
form, by authority of the City Council, a true, correct and complete copy of Ordinance
Number 13-1620 of the City providing for the issuance of $2,380,000 General Obligation
Refunding Bonds, Series 2013, of the City and that said ordinance as so published was on said
date readily available for public inspection and distribution, in sufficient number to meet the
needs of the general public, at my office as City Clerk located in the City.
IN WITNESS WHEREOF I have affixed hereto my official signature and the seal of the City
this 18th day of March, 2013.
k C-0- C-
city Cl
[SEAL]
STATE OF ILLINOIS
) Ss
COUNTY OF MCHENRY )
CERTIFICATE OF PUBLICATION IN PAMPHLET FORM
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the City of McHenry, McHenry County, Illinois (the "City"), and as such official I am the
keeper of the official journal of proceedings, books, records, minutes, and files of the City and of
the City Council (the "City Council") thereof.
I do further certify that on the 18th day of March, 2013 there was published in pamphlet
form, by authority of the City Council, a true, correct and complete copy of Ordinance
Number 13-1620 of the City providing for the issuance of $2,380,000 General Obligation
Refunding Bonds, Series 2013, of the City and that said ordinance as so published was on said
date readily available for public inspection and distribution, in sufficient number to meet the
needs of the general public, at my office as City Clerk located in the City.
IN WITNESS WHEREOF I have affixed hereto my official signature and the seal of the City
this 18th day of March, 2013.
C a- C X6 C�e 1,-�
City C1 rk
[SEAL] n
STATE OF ILLINOIS
) SS
COUNTY OF MCHENRY )
CERTIFICATE OF FILING
1, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk
of The County of McHenry, Illinois, and as such officer I do hereby certify that on the a F day
of iva—&CL 1 2013 there was filed in my office a properly certified copy of Ordinance
Number 13-1620 passed by the City Council of the City of McHenry, McHenry County, Illinois,
on the 18th day of March, 2013, and entitled:
AN ORDINANCE providing for the issuance of $2,380,000 General
Obligation Refunding Bonds, Series 2013, of the City of McHenry,
McHenry County, Illinois, for the purpose of providing for the
payment of certain capital improvements, refunding certain
outstanding bonds and for the payment of the expenses incident
thereto, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of and interest on
said bonds.
and that the same has been deposited in, and all as appears from, the official files and records of
my office.
IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of The
County of McHenry, Illinois, this q,? day of (-� 2013.
Cd6ity Clerk of the County on�4cHenry,
Illinois
[SEAL]
FILZ
EXTRACT OF MMUTES of the regular public meeting of the CiqM0HENRY'-4WN#V 14
Council of the City of McHenry, McHenry County, Illinois, held at MAN - 2 . 62013
the City Hall, located at 333 South Green Street, in said City, at
7:30 p.m., on Monday, the l8th day of March, 2013. fafift" d..AA1L
COUNIY CLERK
The Mayor called the meeting to order and directed the City Clerk to call the roll.
Upon the roll being called, Susan E. Low, the Mayor and the following Aldermen
answered physically present at said location: Santi, Glab, Schaefer, Blake, Wimmer, Peterson,
and Condon.
The following Aldermen were allowed by a majority of members of the City Council in
accordance with and to the extent allowed by rules adopted by the City Council to attend the
meeting by video or audio conference: None.
No Alderman was not permitted to attend the meeting by video or audio conference.
The following Aldermen were absent and did not participate in the meeting in any manner
or to any extent whatsoever: None.
The City Council then discussed the proposed bond financing for the City and considered
an ordinance providing for the issuance of $2,380,000 General Obligation Refunding Bonds,
Series 2013, of the City and providing for the levy and collection of a direct annual tax for the
payment of the principal of and interest on said bonds.
Thereupon, the City Clerk presented, the City Administrator explained, and there was
read by title an ordinance as follows, a copy of which was provided to each Alderman prior to
said meeting and to everyone in attendance at said meeting who requested a copy:
3356134 0104 B
2205086 - YK - 3/21/13
AN ORDINANCE providing for the issuance of $2,380,000 General
Obligation Refunding Bonds, Series 2013, of the City of McHenry,
McHenry County, Illinois, for the purpose of providing for the
payment of certain capital improvements, refunding certain
outstanding bonds and for the payment of the expenses incident
thereto, and providing for the levy and collection of a direct. annual
tax sufficient for the payment of the principal of and interest on
said bonds.
(the "Bond Ordinance').
Alderman Wimmer moved and Alderman Condon seconded the motion that the Bond
Ordinance as presented be adopted.
A City Council discussion of the matter followed. During the City Council discussion,
the Finance and Accounting Manager gave a public recital of the nature of the matter, which
included, which included a reading of the title of the ordinance and statements (1) that the
ordinance provided for the issuance of general obligation bonds for the purpose of paying the
costs of certain capital improvements and refunding certain outstanding general obligation bonds,
(2) that the bonds are issuable without referendum pursuant to the home rule powers of the City,
(3) that the ordinance provides for the levy of taxes sufficient to pay the bonds, and (4) that the
ordinance provides many details for the bonds, including tax-exempt status covenants, provision
for tenns and form of the bonds, and appropriations.
The Mayor directed that the roll be called for a vote upon the motion to adopt the
ordinance.
Upon the roll being called, the following Aldermen voted AYE: Santi, Glab, Schaefer,
Blake, Wimmer, Peterson and Condon.
and the following Aldermen voted NAY: None.
WHEREUPON, the Mayor declared the motion carried and the ordinance adopted, and
henceforth did approve and sign the same in open meeting, and did direct the City Clerk to record
the same in full in the records of the City Council of the City of McHenry, McHenry County,
Illinois.
Other business was duly transacted at said meeting.
Upon motion duly made and carried, the meeting adjourned.
Au-� � 4 , C- 'V) (-\p K _';
0 City Clor )'
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