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1981-019d ORDINANCE NO. 81-19 e � 1 ;.1 ORDINANCE PROVIDING FOR THE ISSUANCE OF $1,050,000 OF CORPORATE PURPOSE BONDS, SERIES 1981, OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, AND PROVIDING FOR THE LEVY OF A DIRECT ANNUAL TAX TO PAY THE PRINCIPAL AND INTEREST ON SUCH BONDS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, AS FOLLOWS: Section 1. It is found and declared by the Presi- dent and Board of Trustees of the Village of Buffalo Grove, Cook and Lake Counties, Illinois (the "Village "), as follows: (a) The Board of Trustees of the Village has heretofore found it advisable and in the best interests of the Village to acquire and operate a common source of supply of Lake Michigan water through the Northwest Water Commission (the "Commission "). (b) The Commission is currently engaged in devel- opment activities necessary to procure and establish a common source of supply of Lake Michigan water for the Village and other proposed users and in connection therewith has incurred and will further incur expenses for preliminary development costs, including costs of plans and feasibility studies; legal, engineering and financial consultant fees and costs; costs of right -of- way and land acquisition; other associated pre- construction costs; and costs of administration. (c) The Village has previously determined and agreed, in the exercise of its home rule powers and its 0 IWZ 0 power and authority under the intergovernmental co- operation provisions of Article VII, Section 10 of. the 1970 Illinois Constitution and the Illinois Intergovern- mental Cooperation Act (Ill. Rev. Stat. ch. 127, § 741 et seq.), and in consideration of the Vi_lage's partici- pation in the activities of the Commission, to obligate itself for a proportionate share of the Commission's development costs. (d) The Commission has caused to be prepared an initial "Northwest Water Commission Financing Report ", as supplemented through the date of this Ordinance (the. "Report "), which Report sets forth a program by which the Commission and member municipalities may proceed with the financing of the development of a common source of supply of Lake Michigan water to member municipalities and others, including the acquisition and construction of the necessary facilities. The Commission has formally accepted and approved the substance of the interim financing plan embodied in the Report and has approved in concept the program for permanent financing set forth therein. The President and Board of Trustees of the Village have previously accepted and approved the substance of the interim financing plan embodied in the Report, with the details of the Village's bonds to be issued for the interim financing to be established in this Ordinance and the details of the obligations to be issued for the permanent financing to be determined later. (e) Pursuant to the basic financing plan embodied in the Report, as from time to time modified or amended (formally or informally), the Village (and other member o • -3- municipalities) will now advance certain funds to the Commission to provide interim financing for the prelimi- nary, pre- construction costs of the project referred to in paragraph (b) above. The amount of funds required so to be advanced by the Village to the Commission in accordance with such plan, together with related costs to the Village including financing costs, is at least $1,050,000. (f) The Village does not have any funds on hand or available from any source with which to make such advance to the Commission and pay its own costs in connection therewith, and the borrowing of the sum of $1,050,000 and the issuance of general obligation corporate purpose bonds of the Village in that amount is necessary for the welfare of the government and affairs of the Village, is for a proper public purpose of the Village and is in the public interest. (g) The issuance of $1,050,000 of general obliga- tion bonds of the Village at this time without a referendum is not prohibited or restricted in any way by any provision of the "Buffalo Grove Municipal Code" or of any other ordinance or resolution of the Board of Trustees of the Village presently in effect. (h) In order to proceed with the Village's parti- cipation in the Commission's financing program, it is necessary and in the best interests of the Village to borrow the sum of $1,050,000, and in evidence thereof to issue its general obligation bonds, payable from ad valorem taxes to be levied without limitation as to rate or amount against all taxable property situated within the Village, the proceeds of such bonds to be 0 IFE E used for the purposes described in paragraphs (b) and (e) above. (i) The purpose to be accomplished by the borrow- ing of money as provided in this Ordinance is to make an advance of funds to the Commission to provide interim financing for the preliminary, pre- construction costs of the project referred to in paragraph (b) above. The borrowing of money and the issuance of bonds as described in this Ordinance are necessary for the welfare of the government and affairs of the Village, are for a proper public purpose and are in the public interest. Section 2. The sum of $1,050,000 shall be borrowed by the Village for the purpose of (a) advancing funds to the Commission as the Village's proportionate share of certain pre- construction costs to the Commission in connection with the development of a common source of Lake Michigan water for the Village and other users, including costs of plans and feasibility studies; legal, engineering and financial consultant fees and costs; costs of right -of -way and land acquisition; other associated pre- construction costs; and costs of administration; and (b) paying costs to the Village in connection therewith and with this financing. In evidence of such borrowing, negotiable coupon bonds of the Village in the aggregate principal amount of $1,050,000 (the "Bonds ") shall be issued as provided in this Ordinance. Each Bond shall be designated "Corporate Purpose Bond, Series 1981 ", shall be dated April 1, 1981, and shall be in the denomi- nation of $5,000. The Bonds shall be numbered, shall mature on December 1 in each of the years and amounts and shall bear interest from their date until paid at the rates per year as follows: Me= Interest on the Bonds shall be payable on June 1 and December 1 in each year, with the first interest payment date being June 1, 1982, the interest to be paid as described more fully on the face of the bond form provided in Section 3 of this Ordinance. Each Bond shall be executed by the facsimile signature of the Village President and the manual signature of the Village Clerk, and shall have the corporate seal of the Village affixed thereto (or a facsimile of such seal printed thereon). Each Bond shall have interest coupons attached to it representing interest coming due on and prior to the maturity of such Bond. The coupons shall each bear facsimile signatures of the Village President and the Village Clerk. The Village President is authorized and directed to file with the Illinois Secretary of State her manual signa- ture certified by her pursuant to the Uniform Facsimile Signatures of Public Officials Act, as amended, which shall authorize the use of the Village President's facsimile signature to execute the Bonds and coupons. Each Bond and coupon so executed by the Village President shall be as effective as if manually executed by her. By the manual execution of each Bond the Village Clerk shall adopt the facsimile of her signature appearing on the coupons attached Maturity Amount Maturing Interest Numbers (December 1) Each Year Rate 1- 10 1983 $ 50,000 10.50% 11- 20 1984 $ 50,000 10.50% 21- 30 1985 $ 50,000 10.50% 31- 45 1986 $ 75,000 10.50% 46- 60 1987 $ 75,000 10.00% 61- 75 1988 $ 75,000 9.50% 76- 90 1989 $ 75,000 9.50% 91 -110 1990 $100,000 9.50% 111 -130 1991 $100,000 9.60% 131 -150 1992 $100,000 9.75% 151 -170 1993 $100,000 9.90% 171 -190 1994 $100,000 10.00% 191 -210 1995 $100,000 10.10% Interest on the Bonds shall be payable on June 1 and December 1 in each year, with the first interest payment date being June 1, 1982, the interest to be paid as described more fully on the face of the bond form provided in Section 3 of this Ordinance. Each Bond shall be executed by the facsimile signature of the Village President and the manual signature of the Village Clerk, and shall have the corporate seal of the Village affixed thereto (or a facsimile of such seal printed thereon). Each Bond shall have interest coupons attached to it representing interest coming due on and prior to the maturity of such Bond. The coupons shall each bear facsimile signatures of the Village President and the Village Clerk. The Village President is authorized and directed to file with the Illinois Secretary of State her manual signa- ture certified by her pursuant to the Uniform Facsimile Signatures of Public Officials Act, as amended, which shall authorize the use of the Village President's facsimile signature to execute the Bonds and coupons. Each Bond and coupon so executed by the Village President shall be as effective as if manually executed by her. By the manual execution of each Bond the Village Clerk shall adopt the facsimile of her signature appearing on the coupons attached -6- to such Bond as her signature. Each such coupon shall thereafter be as effective as if manually executed by the Village Clerk. In case any officer of the Village whose signature or a facsimile of whose signature shall appear on the Bonds or the coupons pertaining to the Bonds shall cease. to be such officer before delivery of any of the Bonds, such signature or facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. The Bonds shall constitute a general obligation of the Village. Each Bond shall be payable to bearer but may be registered as to principal in the manner and with the effect stated on the face of the bond form provided in Section 3 of this Ordinance. The Bonds and coupons attached to the Bonds shall be payable at First National Bank of Chicago in Chicago , Illinois. Section 3. The Bonds and coupons and the regis- tration certificate shall be in substantially the following forms: No. (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF COOK AND LAKE VILLAGE OF BUFFALO GROVE CORPORATE PURPOSE BOND, SERIES 1981 $5,000 The Village of Buffalo Grove, Cook and Lake Counties, Illinois (the "Village "), for value received, promises to pay to bearer, or if this bond be registered as to principal -7- then to the registered owner of this bond, on the first day of December, 19 , the sum of Five Thousand Dollars ($5,000), and to pay interest on such sum from the date of this bond until such sum shall be paid, at the rate of percent ( %) per year, payable semi - annually on June 1 and December 1 in each year, with the first interest payment date being June 1, 1982. Interest accruing on this bond on and prior to the maturity date hereof shall be paid only in accordance with and upon presentation and surrender of the attached interest coupons as they severally become due. No interest shall accrue on this bond after its maturity date unless this bond shall have been presented for payment at maturity and shall not then have been paid. Both the principal of and the interest on this bond shall be payable at , in Illinois, in lawful money of the United States of America. This bond is one of an authorized issue of bonds in the aggregate principal amount of $1,050,000, the proceeds of which are to be used for the purpose of advancing funds to the Northwest Water Commission as the Village's propor- tionate share of such Commission's preliminary, pre- construc- tion costs in connection with the development of a common source of supply of Lake Michigan water for the Village and others, and paying certain costs to the Village in connec- tion therewith. This bond was issued in accordance with the Illinois Constitution and pursuant to an ordinance properly adopted by the Village. This bond and the issue of which it is a part have been issued by the Village upon full payment therefor as provided in such ordinance. The full faith and credit of the Village and the tax levy referred to below are -8- irrevocably pledged to the punctual payment of the principal of and the interest on this bond. This bond is a general obligation of the Village. All conditions which by law must have existed or must have been fulfilled in the issuance of this bond existed and were fulfilled in compliance with law. Provision has been made for the levy and collection of a direct annual tax, in addition to all other taxes, sufficient to pay and discharge the principal of this bond at maturity and to pay interest on this bond as it falls due. The issuance of this bond by the Village, together with the issue of bonds of which it is a part, will not cause the Village to exceed or violate any applicable limitation or condition respecting the issuance of bonds imposed by the law of Illinois or by any ordinance or resolution of the Village. This bond shall be transferable by delivery unless registered as to principal in the holder's name in the Bond Register of the Village in the office of the Treasurer of the Village. Such registration must be noted on the back of this bond by the Treasurer. If so registered, this bond may be transferred by the registered owner in person or by attorney upon presentation of this bond to the Treasurer with a written instrument of transfer on a form approved by the Treasurer and executed by such registered owner. If this bond shall be so registered, the principal shall there- after be payable only to the person in whose name it is registered, unless this bond shall be discharged from registry by being registered as payable to bearer. Any such registration shall not affect the negotiability of the attached interest coupons, which shall always be transfer- able by delivery and payable to bearer. -9- IN WITNESS WHEREOF, the Village of Buffalo Grove, Cook and Lake Counties, Illinois, by its President and Board of Trustees, has caused this bond to be executed by the facsimile signature of its Village President and the manual signature of its Village Clerk, has caused its corporate seal to be affixed to this bond (or a facsimile of its seal to be printed on this bond), and has caused the interest coupons attached to this bond to be executed by facsimile signatures of the Village President and Village Clerk, all as of April 1, 1981. (SEAL) ATTEST: VILLAGE OF BUFFALO GROVE, ILLINOIS By Village Clerk (Form of Coupon) age President No. $ On , 19 , the Village of Buffalo Grove, Cook and Lake Counties, Illinois, will pay to bearer upon presentation and surrender of this coupon the amount shown on this coupon at , in , Illinois, in lawful money of the United States of America, being interest then due on its Corporate Purpose Bond, Series 1981, dated April 1, 1981, No. Village Clerk Village President Date of Registration n -10- L" (Form of Registration Certificate) REGISTRATION Signature of Name of Registered Owner Village Treasurer Section 4. The Bonds shall be executed as pro- vided in this Ordinance and delivered to the Village Treasurer and shall be delivered by the Village Treasurer to The First National Bank of Chicago , the purchaser of the Bonds, upon receipt of the purchase price for the Bonds, which is not less than the par value of the Bonds plus accrued interest to the date of delivery. Section 5. There is levied a direct annual tax upon all taxable property within the Village sufficient to pay and discharge the principal of the Bonds at maturity and to pay interest on the Bonds for each year, including specifically the following amounts for the following years: Year of Levy 1981 (including interest through December 1, 1982) 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 An Amount Sufficient to Produce the Sum of: $ 173,708.34 154,225.00 148,975.00 143,725.00 163,475.00 155,600.00 148,100.00 140,975.00 158,850.00 149,350.00 139,750.00 130,000.00 120,100.00 110,100.00 I -11- Such tax shall be in addition to all other taxes. In the event at any time that sufficient funds are not on hand from the foregoing tax levy to make a payment of in- terest or principal as it becomes due, such payment shall be made from the general funds of the Village and such general funds shall be reimbursed for such advances from the taxes hereinabove levied when they shall have been collected. Section 6. The Village Clerk is directed to file forthwith certified copies of this Ordinance with the County Clerks of Cook and Lake Counties, Illinois, respectively. It shall be the duty of such County Clerks annually for each of the years 1981 through 1994 to ascertain the rate necessary to produce the tax levied in this Ordinance and to extend that tax for collection on the tax books against all of the taxable property within the Village in connection with other taxes levied in each of such years for general Village purposes, and such taxes shall be computed, extended and collected in the same manner as is now or may hereafter be provided for the computation, extension and collection of taxes for general purposes of the Village. When collected, the taxes levied in this Ordinance shall be deposited in a separate bank account established exclusively for bond principal and interest tax levy re- ceipts of the Village (the "Bond Debt Service Bank Account "), and the moneys in such Account derived from the tax levies made in this Ordinance shall constitute a special fund therein designated as "The Corporate Purpose Bonds, Series 1981, Bond and Interest Fund. The Treasurer of the Village is authorized and directed to take the necessary action to open a separate bank account constituting the Bond Debt -12- Service Bank Account on behalf of the Village for this purpose. Moneys in the Bond Debt Service Bank Account of the Village shall not be loaned to other fund accounts of the Village nor shall such moneys be commingled with any other funds of the Village for any purposes, including investment, as long as any Bonds are outstanding. Amounts in The Corporate Purpose Bonds, Series 1981, Bond and Interest Fund are appropriated for and irrevocably pledged to, and shall be used only for the purpose of, paying the principal of and interest on the Bonds or reimbursing general funds of the Village expended for such purpose as provided in Section 5 of this Ordinance. The funds constituting the proceeds of the sale of the Bonds are appropriated and set aside for the purposes for which the Bonds are being issued as set forth in this Ordinance. Section 7. The Village covenants with the holders of the Bonds from time to time outstanding that it will take no action in the investment of the proceeds of the Bonds, amounts in The Corporate Purpose Bonds, Series 1981, Bond and Interest Fund or any other funds of the Village which would result in making interest on the Bonds subject to federal income taxes by reason of causing the Bonds to be "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and any lawful regulations promulgated or proposed thereunder. The President, Clerk and Treasurer of the Village are authorized and directed to take such action as is necessary in order to carry out the issuance and sale of the Bonds, including without limitation, to make any representations and certifi- cations they deem proper pertaining to the use of the proceeds of the Bonds and moneys in The Corporate Purpose w -13- w Bonds, Series 1981, Bond and Interest Fund in order to establish that the Bonds shall not constitute arbitrage bonds as defined above. Section 8. All ordinances, resolutions and orders or parts of ordinances, resolutions and orders in conflict with this Ordinance are repealed to the extent of such con- flict. This Ordinance shall be in full force and effect upon its passage and publication. Voting Aye (list names) : 6 - Marienthal, Stone, .0'Rei:lly, Hartstein, Kavitt, Gerschefske Voting Nay (list names) : 0 - None Abstaining: 0 - None Absent: 0 - None PASSED by the President and Board of Trustees of the Village this April 13, 1981. APPROVED by the Village President this April 13, 1981. PUBLISHED April 16 1981. 1�aZ,4�77 Village President ATTEST: — Village Clerk