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HomeMy WebLinkAboutOrdinance #1409ORDINANCE NO. 1409 AN ORDINANCE SUPPLEMENTING AND A1~NDING ORDINANCE NO. 715, AN ORDINANCE AU'T'HORIZING AN AGREEMENT FOR THE PURCHASE OF A FIRE AND POLICE FACILITY BY THE CITY OF CANTON, ILLINOIS AND LEVYING TAXES IN CONNECTION THEREWITH WHEREAS, the City Council of the City of Canton, Illinois (the "City") on May 15, 1979 adopted ORDINANCE NO. 715, AN ORDINANCE AUTHORIZING AN AGREEMENT FOR THE PURCHASE OF A FIRE AND POLICE FACILITY BY THE CITY OF CANTON, ILLINOIS AND LEVYING TAXES IN CONNECTION THEREWITH (with respect to which undefined terms herein shall have the meanings therein, the "Prior Ordinance") and entered into an Agreement for the Purchase of a Fire and Police Facility by the City of Canton, Illinois, dated May 15, 1979 (the "Agreement") pursuant to which the City acquired from Garretts Construction, Inc. (the "seller") a fire and police facility (the "property" or "project"), which Agreement the City desires to now refund and refinance at a lower interest cost. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, as follows: Section 1. Preambles. The matters contained in the preambles to this ordinance are hereby declared to be true and correct and are incorporated in this Section by this reference. Section 2. Debt Service Changes. The interest rate to be borne by the remaining principal balance of the Agreement shall be as set forth below, with annual principal payments on January 1 of each year, commencing in 1995, as follows: Principal Interest Year Amount Rate (~) 1995 41,208.72 3.75 1996 44,247.86 3.84 1997 47,511.14 3.93 1998 51,015.08 4.01 1999 54,777.45 4.08 2000 58,817.28 4.15 All amounts previously unpaid shall in any event be due and payable January 1, 2000. Section 3. Levy and Extension of Taxes. For the purpose of providing the money required to pay the interest on the Agreement when and as the same falls due and to pay and discharge the principal thereof as the same shall mature and come due, there shall be levied upon all the taxable property in the City, in each year while any of the bonds shall be outstanding, a direct annual tax in each of the years 1993 to 1998, inclusive, sufficient for that purpose, in addition to all other taxes, such direct annual tax to be in the amounts in each of such years, as follows: For the Year A Tax Sufficient to Produce the Sum of 1993 53,041.88 for interest and principal 1994 54,535.70 for interest and principal 1995 56,099.86 for interest and principal 1996 57,736.62 for interest and principal 1997 59,453.29 for interest and principal 1998 61,258.20 for interest and principal 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 such taxes shall have been collected, reimbursement shall be made to such fund or funds from which such advance was made in the amounts thus advanced. As soon as this ordinance becomes effective, a copy hereof certified by the City Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be filed with the County Clerk of Fulton County, Illinois, who is hereby directed to ascertain the rate per cent required to produce the aggregate tax hereinabove provided to be levied in the years 1993 to 1998, inclusive, and to extend the same for collection on the tax books in connection with other taxes levied in each of such years, in and by the City for general corporate purposes of the -2- City, and in each of such years such annual tax shall be levied and collected in like manner as taxes for general corporate purposes for each of such years are levied and collected and, when collected, such taxes shall be used solely for the purpose of paying the principal of and interest on the Agreement as the same become due and payable. The tax levy set forth with respect to the Prior Bonds under the Prior Ordinance shall be duly abated as certified to the County Clerk by the Mayor, as certified by the City's Clerk and Treasurer. Section 4. Debt Service Fund. Moneys derived from taxes herein levied, together with other available funds therefor, are appropriated and set aside for the sole purpose of paying principal of and interest on the Agreement when and as the same come due. All 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 "Agreement Debt Service Fund of 1993" (the "Debt Service Fund of 1993") which is hereby established as a special fund of the City and shall be administered as a bona fide debt service fund-under the Internal Revenue Code of 1986, as amended. Section 5. Exception from Arbitrage Rebate. The City does not reasonably expect to issue more than $5,000,000 of tax-exempt obligations in the calendar year 1993 or 1994 within the meaning of the small issuer exception under Section 148(f)(4)(C) of the Internal Revenue Code of 1986, as amended. Section 6. Investment Regulations. No investment shall be made of any moneys in the Debt Service Fund of 1993 except in accordance with the tax covenants set forth in Section 14 of this ordinance. All income derived from such investments in respect of moneys or securities in any Fund shall be credited in each case to the Fund in which such moneys or securities are held. Any moneys in any Fund that are subject to investment yield restrictions may be invested in United States Treasury Securities, State and Local Government Series, pursuant to the -3- ` regulations of the United States Treasury Department, Bureau of Public Debt. The City's Treasurer and agents designated by such officer are hereby authorized to submit, on behalf of the City, subscriptions for such United States Treasury Securities and to request redemption of such United States Treasury Securities. Section 7. Tax Covenants. The City 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 City shall not permit any of the proceeds of the Agreement, or any facilities financed with such proceeds, to be used in any manner that would cause the Agreement to constitute a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986, as amended. The City shall not permit any of the proceeds of the Agreement or other moneys to be invested in any manner that would cause any bond to constitute an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended. The City shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, relating to the rebate of certain investment earnings at periodic intervals to the United States of America to the extent that there shall have been filed with the City Clerk an opinion of Evans & Froehlich, Champaign, Illinois, or other nationally recognized bond counsel to the effect that such compliance is necessary to preserve the exclusion from gross income for federal income tax purposes of interest on the bonds under Section 103 of the Internal Revenue Code of 1986, as amended. Section 8. Bank Qualified Bonds. Pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, the City hereby designates the bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3) of the Internal Revenue Code of 1986. The City represents that the reasonably -4- - anticipated amount of tax-exempt obligations that will be issued by the City and all subordinate entities of the City during the calendar year 1993 or 1994, in which the bonds are to be issued, will not exceed $10,000,000 within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The City covenants that it will not designate and issue more than $10,000,000 aggregate principal amount of tax-exempt obligations in such calendar year. For purposes of this Section 15, 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, as amended). Section 9. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the City and the holder of the Agreement or any part thereof. Section 10. Publication. The City Clerk is hereby authorized and directed to publish this ordinance in pamphlet form under Section 1-2-4 of the Illinois Municipal Code and to prepare file copies thereof for public inspection in the office of the City Clerk. Section 11. Effective Date. This ordinance shall become effective upon its passage, approval and publication in the manner and with the effect provided by law. Upon motion by A1,derman T~lleck seconded by Alrlarman Phillips adopted this 21st day of December, 1993, by roll call vote as follows: Ayes ( Names) : Alden~n May ~ Bohler, Meade, Sarff , Phillips , Molleck, Coav. Nays (Names): None. Absent (Names) : Alderman Chapman. (SEAL) Attest: City Cler Approved: this 22nd day of Dece ber, 1993 /~ ~Yra~L' ~~~~`-z-c~ Mayor -5- STATE OF ILLINOIS ) • ) SS COUNTY OF FULTON ) FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of the County of Fulton, Illinois, and as such official I do further certify that on the day of 1993, there was filed in my office a duly certified copy of a resolution entitled: ORDINANCE N0. AN ORDINANCE SUPPLEMENTING AND AMENDING ORDINANCE NO. 715, AN ORDINANCE AUTHORIZING AN AGREEMENT FOR THE PURCHASE OF A FIRE AND POLICE FACILITY BY THE CITY OF CANTON, ILLINOIS AND LEVYING TAXES IN CONNECTION THEREWITH, duly adopted by the City Council of the City of Canton, Illinois, on the day of 1993, that the same has been deposited in the official files and records of my office. I understand that such ordinance provides for a tax levy related to an issue of general obligation bonds of the City of Canton, Illinois. IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said office, this day of 1993. County Clerk of the County of Fulton, Illinois (SEAL) ~. ORDINANCE NO. ~ G' AN ORDINANCE SUPPLE'MEN'TING AND AMENDING ORDINANCE NO. 715, AN ORDINANCE AUTHORIZING AN AGREEMENT FOR TSE PURCHASE OF A FIRE AND POLICE FACILITY BY TSB CITY OF CANTON, ILLINOIS AND LEVYING TAXES IN COAQdECTION 1'HEREFIITH, STATE OF ILLINOIS COUNTY OF FULTON SS FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of the. County of Fulton, Illinois, and. s such official I do further certify that on the 23'~~ day of j ~•FV~~'~/, 1993, there was filed in my office a duly certified copy of a resolution entitled: duly adopted by the City Council of the City of Canton, Illinois, on the ,~ ~ s'- day of ~~C~,.~ ~ .~.~ 1993 , that the same has been deposited in the official files and records of my office. I understand that such ordinance provides for a tax levy related to an issue of general obligation bonds of the City of Canton, Illinois. IN i~IITNESS f~iBEREOF, I hereunto affix my fficial signature and the seal of said office, this ~ K~ day of / ~ ~~ 1993. County Clerk o the County of Fulton, Illinois (SEAL)