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HomeMy WebLinkAboutOrd 3951 06/21/1988ORDINANCE NO. 3951 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $500,000 GENERAL OBLIGATION BONDS, SERIES 1988, OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE 21st DAY OF June , 1988. Published in pamphlet form by authority of the corporate authorities of the V~llage of Mount Prospect, Illinois, the 22nd day of June , 1988. TATE OF TL~INOIS ) COUNTY OF COOK ) I, Stanley T. Kusper, Jr., County Clerk of ~o~k County, Illinois, do hereby certify that on the ~/~ day of ~, No. 1988, there was filed in my office Ordinance ~___of the Village of Mount Prospect, Illinois and entitled: ORDINANCE AUTHORIZING THE ISSUANCE OF $500,000 GENERAL OBLIGATION BONDS, SERIES 1988, OF THE VILLAGE OF MOUNT PROSPECTv ILLINOIS which ordinance levies taxes in the Village of Mount Prospect for the years 1988 to 1992, inclusive, for the purpose of paying prin- cipal of and interest on the bonds described in said ordinance; and a copy of said ordinance has been deposited in the official files and records of my office. WITNESS my off/~ial signature and the seal of Cook County this ~ day of ~ , 1988. (SEAL) ~/~e 5/20/88 ORDINANCE NO. 3951 ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 1988, VILLAGE OF MOUNT PROSPECT, ILLINOIS $500,000 OF THE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS, AS FOLLOWS: Section 1. Authority and Purpose. This ordinance is adopted pursuant to Section 6 of Article VII of the Illinois Con- stitution of 1970 for the purpose of financing the improvement of the sewerage collection system of the Village. The foregoing improvements or purposes are each hereby authorized to be made or undertaken by the Village of Mount Prospect, Illinois. Section =. Authorization and Terms of Bonds. To meet part of the estimated cost of the improvements or purposes described in Section i of this ordinance and the costs of issuance of the bonds herein authorized, there is hereby appropriated the sum of $500,000. For the purpose of financing said appropriation, general obligation bonds of the Village shall be issued and sold in an aggregate principal amount of $500,000, shall be designated "General Obligation Bonds, Series 1988", and shall be issuable in the denominations of $5,000 or any integral multiple thereof. Bonds shall be numbered consecutively from 1 upwards in order of their issuance and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of bonds. Unless otherwise determined in the order to authenticate the bonds, each bond shall be dated as of the inter- est payment date next preceding the date of issuance thereof, except that (a) if such date of issuance shall be prior to the first interest payment date, said bond shall be dated as of July 1, 1988, (b) if such date of issuance shall be an interest payment date, said bond shall be dated as of such interest payment date, or (c) if interest due on said bond shall not have been paid in full, then notwithstanding any of the foregoing provisions, said bond shall be dated as of the date to which interest has been paid in full on said bond. The bonds shall mature (without option of prior redemption) on December l, in each year shown in the following table in the respective principal amount set forth opposite each such year and the bonds maturing in each such year shall bear interest at the respective rate per annum set forth opposite such year: Year Principal Amount Rate of Interest 1989 $ 75,000 7.20% 1990 100,000 6.50 1991 100,000 5.70 1992 100,000 5.90 1993 125,000 6.10 Each bond shall bear interest from its date, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on December 1, 1988 and semiannually thereafter on each June 1 and December i at the rates per annum herein determined. The princi- pal of the bonds shall be payable in lawful money of the united States of America upon presentation and surrender thereof at the principal corporate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, which is hereby appointed as bond registrar and paying agent for the bonds. Interest on the bonds shall be payable on each interest -2- payment date to the registered owners of record thereof appearing on the registration books maintained by the Village for such pur- pose at the principal corporate trust office of the bond regis- trar, as of the close of business on the 15th day of the calendar month next preceding the applicable interest payment date. Inter- est on the bonds shall be paid by check or draft mailed to such registered owners at their addresses appearing on the registration books. Section 3. Sale and Delivery. The sale of the bonds to Clayton Brown & Associates, Inc., at a price of $500,112 and accrued interest from their date to the date of delivery and pay- ment therefor, is hereby ratified and confirmed. The official statement prepared with respect to the bonds is hereby approved. The Village President, Village Clerk and other officials of the Village are hereby authorized and directed to do and per- form, or cause to be done or performed for or on behalf of the Village each and every thing necessary for the issuance of the bonds, including the proper execution and delivery of the bonds and the official statement upon payment of the full purchase price of the bonds. Section 4. Exeoution and Authentication. Each bond shall be executed in the name of the Village by the manual or authorized facsimile signature of its Village President and the corporate seal of the Village, or a facsimile thereof, shall be thereunto affixed or otherwise reproduced thereon and attested by the manual or authorized facsimile signature of its Village Clerk. -3- In case any officer whose signature, or a facsimile of whose signature, shall appear on any bond shall cease to hold such office before the issuance of the bond, such bond shall neverthe- less be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile thereof, appears on such bond had not ceased to hold such office. Any bond may be signed, sealed or attested on behalf of the Village by any person who, on the date of such act, shall hold the proper office, notwithstand- ing that at the date of such bond such person may not have held such office. No recourse shall be had for the payment of any bonds against any officer who executes the bonds. Each bond shall bear thereon a certificate of authen- tication executed manually by the bond registrar. Nc bond shall be entitled to any right or benefit under this ordinance or shall be valid or obligatory of any purpose until such certificate of authentication shall have been duly executed by the bond regis- trar. Section 5. shall be negotiable, Transfer, Exchange and Registry. The bonds subject to the provisions for registration of transfer contained herein. Each bond shall be transferable only upon the registration books maintained by the Village for that purpose at the principal corporate trust office of the bond regis- trar, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the bond registrar and duly executed by the registered owner or his duly authorized attorney. Upon the surrender for transfer of any such bond, the -4- Village shall execute and the bond registrar shall authenticate and deliver a new bond or bonds registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered bond. Bonds, upon surrender thereof at the principal corporate trust office of the bond regis- trar, with a written instrument satisfactory to the bond regis- trar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of the denominations of $5,000 or any integral multiple there- of. For every such exchange or registration of transfer of bonds, the Village or the bond registrar may make a charge suffi- cient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or trans- fer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced bonds. The Village and the bond registrar may deem and treat the person in whose name any bond shall be registered upon the registration books as the absolute owner of such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of or interest thereon and for all other purposes whatsoever, and all such payments so -5- made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid, and neither the ~illage nor the bond registrar shall be affected by any notice to the contrary. ~ection 6. Bond Registrar. The Village covenants that it shall at all times retain a bond registrar with respect to the bonds, that it will maintain at the designated office of such bond registrar a place where bonds may be presented for payment and registration of transfer or exchange and that it shall require that the bond registrar maintain proper registration books and perform the other duties and obligations imposed upon it by this ordinance in a manner consistent with the standards, customs and practices of the municipal securities business. The bond registrar shall signify its acceptance of the duties and obligations imposed upon it by this ordinance by exe- cuting the certificate of authentication on any bond, and by such execution the bond registrar shall be deemed to have certified to the Village that it has all requisite power to accept, and has accepted such duties and obligations not only with respect to the bond so authenticated but with respect to all the bonds. The bond registrar is the agent of the Village and shall not be liable in connection with the performance of its duties except for its own negligence or default. The bond registrar shall, however, be responsible for any representation in its certificate of authen- tication on the bonds. -6- The Village may remove the bond registrar at any time. In case at any time the bond registrar shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conserva- tor of the bond registrar, or of its property, shall be appointed, or if any public officer shall take charge or control of the bond registrar or of its property or affairs, the Village covenants and agrees that it will thereupon appoint a successor bond registrar. The Village shall mail notice of any such appointment made by it to each registered owner of bonds within twenty days after such appointment. Any bond registrar appointed under the provisions of this Section shall be a bank, trust company or national banking association maintaining its principal corporate trust office in the State of Illinois, the City of St. Louis, Missouri or the Borough of Manhattan, city and State of New York. Section 7. General Oblig&tions. The full faith and credit of the Village are hereby irrevocably pledged to the punc- tual payment of the principal of and interest on the bonds. The bonds shall be direct and general obligations of the Village, and the Village shall be obligated to levy ad valorem taxes upon all the taxable property in the Village for the payment of the bonds and the interest thereon, without limitation as to rate or amount. Section 8. Form of Bonds. The bonds shall be issued as fully registered bonds and shall be in substantially the following form, the blanks to be appropriately completed when the bonds are printed: -7- United States of America State of Illinois County of Cook VILLAGE OF MOUNT PROSPECT GENERAL OBLIGATION BOND, SERIES 1988 INTEREST RATE MATURITY DATE The VILLAGE OF MOUNT PROSPECT, a municipal corporation and a home rule unit of the State of Illinois situate in the County of Cook, acknowledges itself indebted and for value received hereby promises to pay to the registered owner hereof, or registered assigns, the principal sum of Dollars on the maturity date specified above, and to pay interest on such principal sum from the date hereof at the interest rate per annum specified above, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on December 1, 1988 and semiannually thereafter on June 1 and December i in each year until the principal sum shall have been paid, by check or draft mailed to the registered owner of record hereof as of the 15th day of the calendar month next preceding such interest payment date, at the address of such owner appearing on the registration books maintained by the Village for such pur- pose at the principal corporate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as bond registrar or its successor (the "Bond Regis- trar;'). This bond, as to principal when due, will be payable in -8- lawful money of the United States of America upon presentation and surrender of this bond at the principal corporate trust office of the Bond Registrar. The full faith and credit of the Village are irrevocably pledged for the punctual payment of the principal of and interest on this bond according to its terms. This bond is one of a series of bonds issued in the aggregate principal amount of $500,000, which are all of like tenor except as to date, maturity and rate of interest and which are authorized and issued under and pursuant to Section 6 of Arti- cle VII of the Illinois Constitution of 1970 and under and in accordance with an ordinance adopted by the President and Board of Trustees of the Village on June 21, 1988 and entitled: "Ordinance Authorizing the Issuance of $500,000 General Obligation Bonds, Series 1988, of the Village of Mount Prospect, Illinois." This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender hereof at the principal corporate trust office of the Bond Registrar together with a writ- ten instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or by his duly authorized attor- ney, and thereupon a new registered bond or bonds, in the author- ized denominations of $5,000 or any integral multiple thereof and of the same aggregate principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange there- for. In like manner, this bond may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of any of such authorized denominations. The -9- Village or the Bond Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this bond. No other charge shall be made for the privilege of making such transfer or exchange. The Village and the Bond Regis- trar may treat and consider the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiv- ing payment of, or on account of, the principal and interest due hereon and for all other purposes whatsoever. This bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this bond in order to make it a legal, valid and binding obligation of the Village have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the series of bonds of which this bond is one, together with all other indebted- ness of the Village is within every debt or other limit prescribed by law. -10- IN WITNESS WHEREOF, the Village of Mount Prospect has caused this bond to be executed in its name and on its behalf by the manual or facsimile signature of its Village President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon and attested by the manual or fac- simile signature of its Village Clerk. Dated: VILLAGE OF MOUNT PROSPECT Village President Attest: CERTIFICATE OF AUTHENTICATION This bond is one of the General Obligation Bonds, Series 1988, described in the within mentioned Ordinance. Village Clerk AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, as Bond Registrar By Authorized Officer -11- ASSIGNMENT For value received the undersigned sells, transfers unto assigns and the within bond and hereby irrevocably constitutes and appoints attorney to transfer the said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated Signature Guarantee: -12- Section 9. Levy and Extension of Taxes. For the purpose of providing the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature, there is hereby levied upon all the taxable property in the Village in each year while any of the bonds shall be outstanding, a direct annual tax suffi- cient for that purpose Tax Levy Year in addition to all other taxes, as follows: A Tax Sufficient to Produce 1988 $119,093.75 1989 125,725.00 1990 119,225.00 1991 113,525.00 1992 132,625.00 Interest or principal coming due at any time when there shall be insufficient funds on hand to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the taxes herein levied; and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. As soon as this ordinance becomes effective, a copy thereof certified by the Village Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be filed with the County Clerk of Cook County, Illinois, who is hereby directed to ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in the years 1988 to 1992, inclusive, and to extend the same for collection on the tax books in connection with other taxes levied in said years, in and by the Village for general corporate purposes of the Village, and in said years such annual tax shall be levied and collected in -13- like manner as taxes for general corporate purposes for said years are levied and collected and, when collected, such taxes shall be used solely for the purpose of paying the principal of and inter- est on the bonds herein authorized as the same become due and payable. Seotion 10. Debt Service Fund. Moneys derived from taxes herein levied are appropriated and set aside for the sole purpose of paying principal of and interest on the bonds when and as the same come due. Ail of such moneys, and all other moneys to be used for the payment of the principal of and interest on the bonds, shall be deposited in the "1988 Debt Service Fund" which is hereby established as a special fund of the Village and shall be administered as a bona fide debt service fund under the Internal Revenue Code of 1986. Ail accrued interest received upon the issuance of the bonds shall be deposited in the 1988 Debt Service Fund. Section 11. Bond Proceeds Fund. All of the proceeds of sale of the bonds (exclusive of accrued interest) shall be depos- ited in the "1988 Bond Proceeds Fund" which is hereby established as a special fund of the Village. Moneys in the 1988 Bond Pro- ceeds Fund shall be used for the purposes specified in Section 1 of this ordinance and for the payment of costs of issuance of the bonds, but may hereafter be reappropriated and used for other purposes. Before any such reappropriation shall be made, there shall be filed with the Village Clerk an opinion of a nationally recognized bond counsel to the effect that such reappropriation -14- will not adversely affect the exemption from federal income taxa- tion of interest on the bonds. Section 12. Rebate Fund. The Village hereby estab- lishes a special fund, designated as the "1988 Rebate Fund." In the event that the Village shall invest moneys in the 1988 Bond Proceeds Fund or the 1988 Debt Service Fund in any investments which generate income that must be rebated or paid to the United States of America pursuant to Section 148(f) of the Internal Reve- nue Code of 1986, such income shall be deposited annually, within 10 days after the anniversary date of the date of issuance and delivery of the bonds, in the 1988 Rebate Fund. Moneys in the 1988 Rebate Fund shall be applied to pay such sums as are required to be paid to the United States of America pursuant to Section 148(f) of the Internal Revenue Code of 1986 and are hereby appro- priated and set aside for such purpose. Moneys in the 1988 Rebate Fund may be reapproprlated and used for other purposes. No such reappropriation and use shall relieve the Village of its obliga- tion to make payments to the United States of America as required by Section 148(f) of the Internal Revenue Code of 1986. Section 13. Investment Regulations. No investment shall be made of any moneys in the 1988 Debt Service Fund, the 1988 Bond Proceeds Fund or the 1988 Rebate Fund except in accor- dance with the tax covenants set forth in Section 14 of this ordi- nance. Except as required by Section 12 of this ordinance, all income derived from such investments in respect of moneys or secu- rities in any Fund shall be credited in each case to the Fund in which such moneys or securities are held. -15- Any moneys in any Fund that are subject to investment yield restrictions may be invested in United States Treasury Secu- rities, State and Local Government Series, pursuant to the regula- tions of the United States Treasury Department, Bureau of Public Debt. The Finance Director and agents designated by him are hereby authorized to submit, on behalf of the Village, subscrip- tions for such United States Treasury Securities and to request redemption of such United States Treasury Securities. Section 14. Tax Covenants. The Village shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on any bond to become subject to federal income taxes in addition to federal income taxes to which interest on such bond is subject on the date of original issuance thereof. The Village shall not permit any of the proceeds of the bonds, or any facilities financed with such proceeds, to be used in any manner that would cause any bond to constitute a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986. The Village shall not permit any of the proceeds of the bonds or other moneys to be invested in any manner that would cause any bond to constitute an "arbitrage bond" within the mean- ing of Section 148 of the Internal Revenue Code of 1986. The Village shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic intervals to the United States of America; provided, however, that compliance with such -16- provisions shall not be required to the extent that there shall have been filed with the Village Clerk an opinion of nationally recognized bond counsel to the effect that such compliance is not necessary to preserve the exemption from federal income taxes of interest on the bonds. Seetlon 15. Bank Qualified Bonds. Pursuant to Section 265(b) (3) (B)(ii) of the Internal Revenue Code of 1986, the Village hereby designates the bonds as "qualified tax-exempt obligations" as defined in Section 265(b) (3) of the Internal Revenue Code of 1986. The Village represents that the reasonably anticipated amount of tax-exempt obligations that will be issued by the Vil- lage and all subordinate entities of the Village during 1988 does not exceed $10,000,000. The Village covenants that it will not designate and issue more than $10,000,000 aggregate principal amount of tax-exempt obligations in 1988. For purposes of the two preceding sentences, the term "tax-exempt obligations" includes "qualified 501(c)(3) bonds" (as defined in the Section 145 of the Internal Revenue Code of 1986) but does not include other "private activity bonds" (as defined in Section 141 of the Internal Revenue Code of 1986). Section 16. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the Village and the registered owners of the bonds. Any pledge made in this ordinance and the provisions, covenants and agree- ments herein set forth to be performed by or on behalf of the Village shall be for the equal benefit, protection and security of the owners of any and all of the bonds. All of the bonds, regard- -17- less of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the bonds over any other thereof except as expressly provided in or pursuant to this ordinance. This ordinance shall constitute full authority for the issuance of the bonds and to the extent that the provisions of this ordinance conflict with the provisions of any other ordinance or resolution of the Village, the provisions of this ordinance shall control. If any section, paragraph or pro- vision of this ordinance shall be held to be invalid or unenforce- able for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 17. Publication and Notice. The Village Clerk is hereby authorized and directed to publish this ordinance in pamphlet form and to file copies thereof for public inspection in her office. The Village Clerk is hereby authorized and directed to cause notice of adoption of this ordinance to be published in the "Mount Prospect Herald," a newspaper of general circulation in the Village. Said notice shall be in substantially the following form: "Public Notice Notice is hereby given that on June 21, 1988, the Presi- dent and Board of Trustees of the Village of Mount Prospect, Illinois adopted an ordinance entitled: "ordinance Authorizing the Issuance of $500,000 General Obligation Bonds, Series 1988, of the Village of Mount Prospect, Illinois," and that copies of said ordinance are on file and available for public inspection at the office of the Village Clerk of the Village of Mount Prospect. By /s/ Carol A. Fields Village Clerk" -18- Section 18. Effective Date. This ordinance shall become effective in the manner provided by law. Adopted this 21st day of June, 1988 by roll call vote as follows: Ayes: ARTHUR, FARLEY, FLOROS, MURAUSKIS, VAN GEEM WATTENBERG Nays: NONE (SEAL) Attest: Village Clerk Approved: Vlllag~gresldent -19-