HomeMy WebLinkAboutOrd 2469 11/06/1973
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ORDINANCE NO. r;>?-'/6j?
AN ORDINANCE ESTABLISHING PROCEDURES TO BE
FOLLm-lED IN INCURRING INDEBTEDNESS FOR COR-
PORATE PURPOSES, ISSUING NON-REFERENDUM
BONDS TO EVIDENCE SUCH INDEBTSDNESS AND AU-
THORIZING AND DIRECTING THE LEVYING OF A
TAX FOR THE PURPOSE OF PAYING PRINCIPAL OF
SUCH BONDS AND INTEREST THEREON AS THE SAME
BECOME DU E.
WHEREAS, Section 6(a) of Article VII of the 1970
Constitution of the State of Illinois provides that any municipalitj
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, pursuant to the provisions of said Section 6(a) of Article VII,
may exercise ~:my power anod 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 ilie provisions of Sections 6(d)
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and 6(k) of said Article VII, the Village of Mount Prospect
may incur debt payable from ad valorem property tax receipts
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maturing within 40 yeats I from the time it is incurred and
wi thout prior refer,endwn' approval of the electors' o'f said
Village: and
'WHEREAS, it is necessary and desirable at this time
for the President and Board of Trustees to establish procedures
fO.r incurring municipal debt. and for issuing bonds of the
Village payable from ad valorem property tax receipts, and
providing for the payment of such bonds, both principal and interest
NOW,THEREFOR~, BE trORDAINED by the President and
loard of Trustees of the Village.of Mount prospect, Cook County,
Illinois, as follows:
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SECTION ONE: The Village of M~u~t prospect, Cook
County, Illinois, acting by its President and Board of Trustees,
may from tim,et6 time borrow money for proper
public
purposes and in evidence of such~ borrowing issue its full
faith and credit bonds (general obligation) payable from
ad valorem taxes to b~ levied without limitations as to rate
or amount against all taxable property situated within the
village. · Except as the General Assembly of the State of
Illinois may hereafter provide pursuant tb the provisions'
of Section 6(k) of said Article VII, 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.
SECTION TWO: The Village of Mount prospect shall
adopt an ordinance (hereinafter designated as the "Bond OrdinanceII'
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describing the public purpose or purposes to be accomplished
by such borrowing and in such Bond Ordinance shall make a finding
and determination that such borrowing of money is necessary
for the welfare of the government and affairs of ,tDe Vi~lage,
is for a prope r, public purpose or purposes and is in the
public interest, which ~inding and determination shall be
deemed conclusive.
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SECTION THREE: The Bond Ordinance shall indic~te
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 the date, number, denomination and
maturity, ,which shall not exceed' forty (40) years from the
date of said bonds, and the maximum rate of interest wnich
shall not exceed eight per cent (8%) per annum payable
semiannually.
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The bonds shall be sold in such' manner and'at
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such time as may be determined by the President and Board
of Trustees. If the bonds are sold to bear interest at the
maximum rate, they shall be sold at a price of not less than
par. If the bonds are sold to bear interest at a rate less
than the maximum interest rate, they may be sold at a price
of. less than par, provided the price sha II be such tha t the
interest cost to the Village of the money received as proceeds
of the sale of said bonds shall not exceed the maximum interest
rate per annum, based on the average maturity of all bonds
sold as a single issue, computed according to 8 tandard.' tables
of bond values.
A contract for the sale of such bonds may ,be entered
into prior to the adoption of the Bond Ordinance ot the Bond
Ordinance may provide for. the subsequent sale of the bonds therein
authorized. In the event of such subsequent sale and bonds
are sold bearing interest at a rate or rates less than that
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authorized in the Bond Ordinance, prior to the delivery of
such bonds the taxes levied in the Bond Ordinance shalll be
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abated by that amount representing the savings resulting from
the sale of said bonds at a lower rate of interest' than.
authorized in the Bond Ordinance.
SECTION FOUR: The Bond Ordinance shall direct the
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execution of the bonds therein authorized on behalf of the
Village of Mount Prospect by the s~gnatures of the Village
President and the Clerk of said Village, shall require the
~eal 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
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and interest maturing on said bonds, shall set forth th.e..
form of-bond, and shall contain such other provisions as the
President and Board of Trustees may determine to be nec2ssaq
or desirable to effectuate the sale and delivery of such bonds.
The Village President may designate a deputy to
affix his signature to any full faith and credit bonds.of the
Village which are required.bo.be signed b~ the.Village President.
In such case, the Village President shall deliver to the
Board o'f Trustees a written notice of such designation, such
notice stating the name of the person so selected and the
specific bonds which such person shall have authority to sign
as proxy for the Village President. Said notice shall have
attached thereto a written signature of the Vilmge President
executed by the person so designated to sign, together with
the personal signature of th~ deputy authorized to sign on
behalf of the Village President. Each such notice shall be
recorded in the official journal of the proceedings of the
Board of Trus tees and then fi led with the Village Clerk. ~-1hen
the signature of the Village President is placed on a full
faith and credit bond of.the Village at his direction in the
specified manner, such signature in all respects shall have
the same legal effect as if signed by the Village president
in person.
SECTION FIVE: The Bond Ordinance shall make provision
fo.t', the payment 'of such bonds ,both principal thereof and
i.nterest therr:ori until maturity, by the -levy of a direct
annuar ta~ upon all the taxable property within the Village
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of .No,untPr.ospect .sufficient for such purposes. A copy of such
nond Ordinance, as adopt(~d, cet'tified to by th'::? Village Clark,
l,hall,be filed in the offices of the County Clerk of thp.
county o.t'c:cnmtieswithin which any part: of the Village. of:
r.[otmt prospnbt may be situ:3.'::ec:!. S1.\JCh Bond Ordinance, as so tiled,
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shall constitute the authority for the County Clerk or
County Clerks in and for each of the years for which taxes
are levied in said Bond Ordinance, to extend such taxes for
collection against all the taxable property situated within
the Village of Mount Prospect. The taxes so levied for the
payment of principal of and interest on the bonds shall be
extended annually by the several County Clerks 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. Except as provided
herein, such taxes so levied shall not be subject to repeal
or abatement in any manner whatsoever until such time as all
the bonds authorized and issued under the terms of. said nond
Ordinance shall have been paid in full, both principal thereof
and interest thereon up to and including the date of maturity:
provided, however, that if the Village of Mount Pr~spsct has
other funds available, the Boa::d of Trustees may appropriate
such funds and deposit them in trust with the paying agent
f or the purpose of the payment of any of the maturities 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 directed by ordinance of ..
the Village of Mount prospect, duly adopted and placed on file
with the respective County Clerks at any.. time prior to the
extension of such taxes for collection.
SECTION SIX:. The provisions of any Bond Ordinance
shall constitute an appropriation 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
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were authorized.
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Upon the adoption of any Bond Ordinance by the
Village of Mount Prospect; and its approval by the Village
President, the same shall be published in a newspaper published
and of the general ~irculation in the Village of Mount Prospect
if there be oneanq 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,
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and said ordinance ~ba~l become effective on the date of
such publication.
SECTION SEVEN: Any bonds authorieed and issued
pursuant to the provisions of any Bond Ordinance adopted
pursuant to the provisions hereof, and also any bonds heretofore
issued and outstanding.,' which by their terms are payable from
taxes unlimited as to ~ate or amount and levied against all
the taxa'ble property wi t;hin the Village of Mount Pros pect,
may be refunded prior to their maturity or at thei~ ~aturity,
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and including the refunding of matured interest coupons
evidencing interest uPQn such unpaid bonds. The issuance of
refunding bonds shall 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. Any such refunding
shall be authorized on the basis of an exchange of par for
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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 therof used for the purpose of paying maturing
principal of such outstanding bonds and matured interest
coupons thereon.
SECTION EIGHT: Pursuant to the authority granted.
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by Section 6 of Article VII of the constit~t~o~ of Illino~s 19?P:
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the procedures gereinabove set forth for the issuance of
full faith and credit bonds (general obligation) shall be
controlling and shall be complied with by the Village of
Mount Prospect in the borrowing of meney through'-the issuance
of general obligation bonds of the Village, notwithstanding
any provisions to the contrary contained in the "Illinois
Municipal Code" and all acts amendatory thereof and supplementary
thereto and in any other law or laws of the State of Illinois.
SECTION NINE: That this ordinance shall be in full
force and effect immediately upon its passage.
PASSED by the Board of Trustees of the Village of
Mount Prospect, Cook County, Illinois, this
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day of
, 1973.
AYES: Anderson, Furst, Hendricks, Link, Richardson, Scholten, Tiechert
NA YS : None
ABS ENT: None
APPROVED this
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1973 .
ROBERT D. TEICHERT
Village President of the
Village of Mount Prospect,
Cook County, Illinois.
ATTEST:
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DONALD W. GOODMAN
Village Clerk
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