Loading...
HomeMy WebLinkAboutOrd 2531 10/15/1974 ORDINANCE NO. 2531 AN ORDINANCE ESTABLISHING PROCEDURES TO BE FOLLOWED IN INCURRING INDEBTEDNESS FOR CORPORATE PURPOSES, ISSUING NON-REFERENDUM BONDS TO EVIDENCE SUCH INDEBTEDNESS AND AUTHORIZING AND DIRECTING THE LEVYING OF A TAX, WITHOUT LIMIT AS TO RATE OR AMOUNT, FOR THE PURPOSE OF PAYING PRINCIPAL AND INTEREST ON SUCH BONDS AS THE SAME BECOME DUE WHEREAS, Section 6 (a) of Article VII of the 1970 Constitution of Illinois provides that "any municipality which has a population of more than 25,000 (is) a Home Rule Unit" and the Village of Mount Prospect, Cook County, Illinois, with a population in , excess of 25,000 is, therefore, a Home Rule Unit and may, under the power granted i, by Section 6 (a) of Article VII exercise any power and perform any function pertainiI1ig to its government and affairs including, but not limited to, the power to tax and to I incur debt; and WHEREAS, Sections 6 (d) and 6 (k) of Article VII of the 1970 Constitution of Illinois grant constitutional authority for the Village of Mount Prospect to incur debt payable! from ad valorem tax receipts maturing within forty (40) years from the time it is in- ,i curred and without prior referendum approval; and WHEREAS, the establishment of basic procedures for incurring municipal debt and issuing bonds payable from ad valorem property tax receipts is both necessary and desirable to provide clarity in law and direction for subsequent action; NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEE~ OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: ) " I, SECTION ONE: That, pursuant to that power of authority given Home Rule Units in Article VII of the 1970 Constituion of the State of Illinois, Article V of Chapter 8 of the Municipal Code of Mount Prospect of 1957, as amended, be and the same is hereby further amended by eliminating the existing Sections 8.508 and 8.509 and substituting therefor an entirely new Section, Section 8.508, for the purpose of establishing procedures to be followed in incurring indebtedness for corporate pur-! poses, issuing non-referendum bonds to evidence such indebtedness and authoriz- ing and directing the levying of a tax, without limit as to rate or amount, for the purpose of paying principal and interest on such bonds as the same become due; so that hereafter the said Section 8.508 shall be and read as follows: "SECTION 8.508. Non- Referendum Bonds. The Village of Mount Prospect, Cook County, Illinois, acting by and through its President and Board of Trustees, may, from time to time, borrow money for proper public pur- poses and in evidence of such borrowing, issue its full faith and credit bonds (general obligation) payable from ad valorem taxes to be levied with- out limitation as to rate or amount, against all taxable property situated with- in the Village. Such bonds may be issued without the submission of the question of their issuance to the electors of the Village for their approval and the procedures for the issuance of such bonds shall be substantially as herein provided. A. In each instance of such borrowing, the Village of Mount Prospect shall adopt an ordinance (hereinafter designated as the "Bond Ordinance") describing the public purpose or purposes to be served by such bor- rowing and in such Bond Ordinance shall make a finding and deter- mination that such borrowing of money is necessary for the welfare of the government and affairs of the Village, is a proper public purpose or purposes and is in the public interest, which finding and determination shall be deemed conclusive. B. The Bond Ordinance shall indicate the amount of money necessary to be borrowed, the amount of bonds to be issued in evidence thereof, shall fix the details of such bonds, including their date, number, denomina- tion, maturity (which shall not exceed forty (40) years from the date of said bonds) , and their rate of interest which shall be at such rate as the President and Board of Trustees shall determine. 1. The bonds shall be sold in such manner as may be determined by the President and Board of Trustees. 2. A contract for the sale of such bonds may be entered into prior to the adoption of the Bond Ordinance or the Bond Ordinance may pro- vide for the subsequent sale of the bonds therein authorized. In the event of such subsequent sale and if the bonds bear interest at a rate or rates less than that authorized in such Bond Ordinance, prior to the delivery of such bonds the taxes levied in such Bond Ordinance shall be abated by that amount representing the savings resulting from the sale of such bonds at a lower rate of interest than authorized in such Bond Ordinance. C. The Bond Ordinance shall authorize the execution of the bonds therein authorized on behalf of the Village of Mount Prospect by the signatures of the Village President and the Village Clerk, shall require the seal of the Village to be affixed to such bonds, shall determine whether such bonds to be issued shall be registered in the name of the owner as to principal only or whether the same shall be fully registered as to both principal and interest, shall indicate the place or places of payment of the principal and interest maturing on said bonds, and shall set forth the form of bond. 1. The Village President may designate another to affix his signature to any full faith and credit bonds of the Village which are required to be signed by the President. 2 . In such case, the Village President shall send to the Board of Trustees a written notice of the person so designated by him, such notice stating the name of the person so selected and the particular bonds which such person shall have authority to sign as proxy for the President. a. A written statement of the President executed by the person so designated, with the signature of the person so designated underneath, shall be attached to each notice. -2- b. Each notice, with the signature attached, shall be recorded in the official journal of the proceedings of the President and Board of Trustees and then filed with the Village Clerk. 3. When the signature of the President is placed on a full faith and cre- dit bond of the Village at the direction of the President in the speci- fied manner, such full faith and credit bond in all respects shall be as binding on the Village as if signed by the President in person. D. The Bond Ordinance shall make provision for the payment of such bonds, both principal thereof and interest thereon until maturity, by the levy of a direct annual tax upon all the taxable property within the Village of Mount Prospect sufficient for such purpose. 1. A copy of such Bond Ordinance, as adopted, certified to by the Vil- lage Clerk, shall be filed in the offices of the County Clerk of Cook County, in which county the Village of Mount Prospect is situated. 2. Such Bond Ordinance, as so filed, shall constitute the authority for the Cook County Clerk in and for each of the years for which taxes are levied in said Bond Ordinance, to extend such taxes for collec- tion against all the taxable property situated within the Village of Mount Prospect. 3. The taxes so levied for the payment of principal of and interest on the bonds shall be extended annually by the Cook County Clerk without limitation as to rate or amount and such taxes shall be in addition to and in excess of all other taxes levied or authorized to be levied by the Village of Mount Prospect. 4. Except as provided herein, such taxes so levied shall not be sub- ject to repeal or abatement in any manner whatsoever until such time as all the bonds authorized under the terms of said Bond Ordi- nance and issued shall have been paid in full, both principal there- of and interest thereon up to and including the date of maturity, pro- vided, however, that if the Village of Mount Prospect has funds available, it may appropriate same and order their deposit in trust with the paying agent for purpose of the payment of any of the ma- turities of bonds or interest thereon, in which event the taxes so levied to pay such principal or interest may be abated by the amount so deposited, such abatement to be by ordinance of the Vil- lage of Mount Prospect duly adopted and placed on file with the Cook County Clerk. E . The provisions of any such Bond Ordinance shall constitute an appro- priation of the amounts required as therein referred to and described and upon the delivery of the bonds therein authorized, the proceeds thereof shall be used solely and only for the purpose or purposes for which the bonds were authorized. -3- Upon the adoption of any such Bond Ordinance by the Village of Mount Prospect and its approval by the President, the same shall be publish- ed in a newspaper published and of general circulation in the Village of Mount Prospect if there be one and if there is no such newspaper, then in a newspaper published and of general circulation in the county in which the Village or the major portion thereof is situated and said ordinance shall become effective ten (10) days after the date of such publication. F. Any bonds authorized and issued pursuant to the provisions of any Bond Ordinance adopted pursuant to the provisions hereof and also any bonds issued and outstanding, which by their terms are payable from taxes unlimited as to rate or amount and levied against all the taxable property within the Village of Mount Prospect, may be refunded prior to their maturity or at their maturity, and including the refunding of matured interest coupons evidencing interest upon such unpaid bonds. 1. Such refunding shall be by the issuance of refunding bonds to be authorized by a Refunding Bond Ordinance which shall be adopted in the manner and subject to the terms, conditions, and provisions as herein required for the issuance of bonds for public purposes. 2. Any such refunding shall be issued on the basis of an exchange of par for par for bonds and matured interest coupons to be refunded, or such refunding bonds shall be sold at not less than par and the proceeds thereof be used for the purpose of paying maturing princi- pal and matured interest coupons on such outstanding bonds as they become due. G. Pursuant to the authority granted by Section 6 of Article VII of the 1970 Constitution of the State of Illinois, the procedures hereby established for the issuance of full faith and credit bonds (general obligation) as herein provided for, shall be controlling and shall be complied with by the Village of Mount Prospect in the borrowing of money through the is- suance of general obligation bonds of the Village notwithstanding any- thing to the contrary contained in the provisions of the Illinois Munici- pal Code and all acts amendatory thereof and supplementary thereto and any other law or laws of the State of Illinois. " SECTION TWO: That this Ordinance shall be in full force and effect from and after its passage, approval, and publication in the manner provided by law. AYES: 6 NAYS: I i I I i PASSED and APPROVED this 15th day of October, 1974. I ~ .q~4. ~--4~..... I Village President I , I ! I I ! i ! ! ! ii I ~ I ! ! "..~ ."'_"~"''''''';'~,''''_~.-"7'_",,',__''''O''"'','''''T ""'''''"'','''''=''-^''''.''''"'',h~'''X_,",,,,,",~:,,,,,.',-,'_''''=''''.,,="",'==::=~'ffl"=""''''~'''''T''''.''''-_~_ o ATTE~ ' . /J-,I !//W'--~.~__/ Village Clerk -4-