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HomeMy WebLinkAboutOrd 3038 08/19/1980 RDINANCE NO. 3038 AN ORDINANCE AMENDING CHAPTER 8, ARTICLE V OF THE VILLAGE OF MOUNT PROSPECT MUNICIPAL CODE AND ADDING A NEW ARTICLE VIII TO CHAPTER 8 ON MUNICIPAL FINANCE ~HEREAS, Section 6(a) of Article VII of the Constitution of the State of Illinois (1970) provides that any municipality which has a population of more than 25,000 is a Home Rule Unit. The Village of Mount Prospect, with a population in excess of 25,000 may, therefore, exercise any power and perform any function pertaining to its government and affairs including, but not limited to, the power to tax and to incur debt in accordance with said Section 6(a), of Article VII of the Constitution of the State of Illinois (1970); and WHEREAS, Article V of Chapter 8 of the Municipal Code of the Village of Mount prospect contains several provisions relating to municipal finance; namely, sections providing procedures for the issuance of non-referendum bonds and for the estab!ishmen !of lines of credit; and WHEREAS, the President and Board of Trustees of the Village of IMount Prospect deem it advisable 'to amend Chapter 8 of said Municipal Code to include additional methods for municipal finance and to consolidate with such new provisions, the existing provisions of Article V of ChaPter 8 concerned with municipal finance. NOW, THEREFORE, BE IT ORDAINED BY THE pRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS as follows: SECTION ONE: Article V of Chapter 8 of the Municipal Code of the Village of Mount Prospect be, and the same is hereby, amended by deleting therefrom the present Sections 8.507 and 8.510 and renumbering the present Sections 8.508, 8.509, 8.511, 8.512 and 8.513, respectively, as Sections 8.507, 8.508, 8.509, 8.510 and 8.511. SECTION TWO: Chapter 8 of the Municipal Code of the Village of Mount Prospect be, and the same is hereby, amended by adding thereto a new Article VIII, which said new Article VIII shall hereafter be and read as follows: ARTICLE VIII MUNICIPAL FINANCE SECTION: 8.601 8.602 8.603 Non-Referendum General Obligation Bonds Establishment of Line of Credit Promissory Notes, Mortgages and Security Interests and Payment Thereof Sec. 8.601. Non-Referendu/u General Obligation Bonds. The Village of Mount Prospect, acting by its President and Board of Trustees, may from time to 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 be levied without limitations as to rate or amount against all taxable property situated within 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. no The Village of Mount Prospect shall adopt an ordinance (hereinafter designated as the "Bond Ordinance") 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 the Village, is for a proper public purpose or purposes and is in the public interest, which finding and determination shall be deemed conclusive. 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 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 which shall not exceed eight percent (8%). The bonds shall be sold in such manner and at 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 han par, provided the price shall be such that 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 standard tables of bond values. 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 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 authorized in the Bond Ordinance, prior to the delivery of such bonds the taxes levied in the Bond Ordinance shall be 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. The Bond Ordinance shall direct the execution of the bonds therein authorized on behalf of the Village of Mount Prospect by the signatures of the Village President and the Clerk of said Village, 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, shall set forth the form of bond, and shall contain such other provisions as the President and Board of Trustees may determine to be necessary 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 to be signed by the Village President. In such case, the Village President shall deliver to the Board of 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 Village President xecuted by the person so designated to sign, together with the personal signature of the deputy authorized to sign on behalf of the Vil!age President. Each such notice shall be recorded in the official journal of the proceedings of the Board of Trustees and then filed with the Village Clerk. When 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. Et 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 purposes. A copy of such Bond Ordinance, as adopted, certified to by the Village Clerk, shall be filed in the office of the County Clerk of the county within which the Village of Mount Prospect is situated. Such Bond Ordinance, as so filed shall constitute the authority for the County Clerk 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 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. 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 Bond 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 Prospect has other funds available, the Board of Trustees may appropriate such funds and deposit them in trust with the paying agent for 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 County Clerk at any time prior to the extension of such taxes for collection. e 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 were authorized. 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 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 is situated, and said ordinance shall become effective on the date of such publication. Any bonds authorized and issuedpursuant 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 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. 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 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 used for the purpose of' paying maturing principal of such outstanding bonds and matured interest coupons thereon. The procedures hereinabove 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 money 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. ec. 8.602. Establishment of Line of Credit. ke In an effort to continually balance the Municipal budget, and to further the purposes of the "Municipal Budget Officer System" as heretofore adopted by the corporate authorities of the Village by encouraging efficient planning, budgeting, auditing, reporting, accounting and other fiscal management procedures, it has become necessary for the Village to maintain flexibility to borrow and tax in order to meet short term deficits, where receipts from Federal, State and local revenues (while determined to be made available during any given fiscal year) may be inconsistent and sporadic so as to create short term cash flow problems, the Village of Mount Prospect, Cook County, Illinois acting by and 'through its President and Board of Trustees may borrow money from time to time against the full faith and credit of the Village~'a Municipal corporation. In order to provide for the payment of necessary expenses, debts and liabilities of the Municipal corporation and in order to avoid possible judgments against the Village, the President and Board of Trustees, by resolution, may authorize the Budget Officer to establish a line of credit with a depository bank so that whenever the Village does not have sufficient money in its General Fund to meet such necessary expenses, debts and liabilities of the Village, any and all overdrafts drawn upon said General and Related Fund shall be honored by such depository bank, provided: 1. The aggregate of such overdrafts drawn upon such depository bank shall not exceed f~v~ hundred thousand dollars ($§00,000.00). The interest Charged by SuCh depository bank shall not exceed seven percent (7%) per annum and shall be compounded daily against the outstanding sum total of such overdrafts on any given day. e The President and Board of Trustees of the Village shall have budgeted sufficient funds to pay interest on such debt with such depository bank at the pate provided for hereinabove; and The President and Board of Trustees of the Village before, at the time of, or after incurring any such indebtedness, shall provide or the levy and collection of a direct annual tax sufficient to pay the interest on any such debt created by any such overdraft as such interest thereon falls due. Sec. 8.603. Promissory. Notes, Mortgages, Security Interests and Payment Theregf. The establishment of procedures for incurring municipal debt for the purchase of real estate, improved or unimproved, and personal 'property for proper public purposes is both necessary and desirable to provide clarity in the law and direction for subsequent action. The Village of Mount Prospect, acting by its President and Board of Trustees, may for proper public purposes borrow money from time to time for the purchase of improved or unimproved real estate or personal property for and in evidence of such borrowing, execute a promissory note, a promissory note and mortgage to secure such note in the case of real estate or a promissory note and security agreement to secure such note in the case of personal property, any or all of which may be paid from the general corporate revenues of the Village, from revenues of municipally owned or operated facilities or services or by the levy of a direct annual tax against all taxable property in the Village sufficient to pay the principal and interest required to be paid to retire the loan as the same shall mature or become due. The procedure to be followed in incurring indebtedness in the manner herein described shall be as follows: The Village of Mount Prospect shall adopt an ordinance which shall describe the real estate or personal property to be purchased by the Village, state the public purpose to be served by the purchase of such real es%ate or personal property and include findings by the President and Board of Trustees that the borrowing of money to allow the purchase of such real estate or personal property is necessary for the welfare of the government and affairs of the Village and is in the public interest. The ordinance adopted pursuant to and in accordance with the provisions of subsection A of this Section shall indicate the total amount of money to be borrowed, the interes~ to be paid on such borrowed funds, the term over which the principal and interest shall be paid, the amount of principal and interest to be paid each year and such other provisions as the President and Board of Trustees may deem advisable, provided, however, that the term over which payment shall be made shall not exceed 25 years and the rate of interest to be paid shall not exceed the maximum rate of .interest which a municipality can lawfully pay under the provisions of the Illinois Revised Statutes. t The ordinance adopted pursuant to and in accordance with the provisions of subsection A of this Section shall indicate whether the indebtedness incurred shall be secured by a mortgage or security agreement and shall specify whether such indebtedness will be paid from the general corporate revenues of the Village, from revenues of municipally owned or operated facilities or services or by the levy of a direct annual tax against all taxable property in the Village sufficient to pay the principal and interest required to be paid to retire the loan as the same shall mature or become due. The ordinance shall contain a schedule showing the year, date and amount to be paid and shall: for indebtedness to be paid for from general corporate revenues of the Village, specify that the indebtedness is backed by the full faith and credit of the Village; for indebtedness to be paid for from revenues of municipally owned or operated facilities or services, state the Village owned or operated facility or service from which the revenues to pay the indebtedness will be derived and specify that the indebtedness shall be paid solely and only from the revenues from such facility or service; t for indebtedness to be paid by the levy of a direct annual tax, provide that: at a direct annual tax shall be levied against all taxable property in the Village of Mount Prospect sufficient to pay the principal and interest required to be paid to retire the loan as the same shall mature or become due and a copy of such ordinance, as adopted, certified to by the Village Clerk, shall be filed in the office of the County Clerk of the county within which the Village of Mount Prospect is situated. such ordinance, as so filed, shall constitute the authority for the County Clerk in and for each of the years for which taxes are levied in such ordinance, to extend such taxes for collection against all of the taxable property situated within the Village of Mount Prospect and the taxes so levied for the payment of principal of and interest to pay the debt shall be extended annually e by the 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. except as may otherwise be provided in such ordinance, such taxes so levied shall not be subject to repeal or abatement in any manner whatsoever until such time as the debt authorized under the terms of said ordinance shall have been paid in full, both principal thereof and interest thereon, provided, however, that if the Village of Mount Prospect has funds available, it may appropriate same to pay the principal and interest of such debt, in which event the taxes so levied to pay such principal or interest may be abated by that amount, such abatement to be by ordinance of the Village of Mount Prospect duly adopted and placed on file with the County Clerk. the provisions of such ordinance shall constitute an appropriation of the amounts required as therein referred to · and described and the funds borrowed shall be used solely and only for the purpose or purposes for which debt was incurred. upon the adoption of such an ordinance, by the Village of Mount Prospect and its approval by the President, the same shall be published 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 is situated and said ordinance shall become effective on the date of publication. The provisions of this Section 8.603 shall be controlling and shall be complied with by the Village of Mount Prospect in the borrowing of money in the manner herein provided notwithstanding anything to the contrary contained in the provisions of the Illinois Municipal Code and all acts.' amendatory thereof and supplementary thereto and any other law or laws of the State of Illinois. ECTI©N THREE: This Ordinance shall be in full force and effect from and after its passage, approval and publication in the manner provided by law. Passed this 19th day of August , 1980. AYES: Farley, Floros, Miller, Murauskis, Richardson NAYS: None ABSENT: Wattenberg Approved this 19th day of August , 1980. Approved: lttest: Village Clerk