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HomeMy WebLinkAboutOrdinance #1092 ORDINANCE NUMBER 1092 AN ORDINANCE providing for the issuance of $1,650,000 principal amount Sewer Bonds, Series 1985 of the City of Canton, Fulton County, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. WHEREAS, the City Council (the "City Council") of the City of Canton, Fulton County, Illinois (the "City"), has heretofore determined and does hereby determine that it is necessary and advisable for the public health, safety, welfare, and convenience of residents of the City that the combined sewer and sanitary sewer of the City be improved by increasing capacity, thus reducing incidents of basement flooding and overflows to water ways, by constructing relief sewers, intercepting sewers, pumping station improvements, and the rehabilitation of sewers and manholes, and by improvements to sewage treatment facilities to provide additional treatment capacity and increased removal of ammonia nitrogen, BOD and suspended solids (which construction and improvements may be referred to as the "1985 Sewer Project"), all in accordance with the preliminary plans and specifications prepared by Crawford, Murphy & Tilly, Inc., Consulting Engineers, Springfield, Illinois, which plans and specifications have been approved by - the City Council and are now on file in the office of the City Clerk for public inspection; and WHEREAS, the City Council, by ordinance passed on the 16th day of August 198'.3, caused the submission of the question of issuing bonds for the 1985 Sewer Project to be submitted to the voters of the City at the nonpartisan election (the "Election") held on the 8th day of November, 1983, in the following form: Shall Bonds in the amount of not to exceed $ 2,000,000.00 be issued by the City of Canton, Fulton County, Illinois, for the purpose of paying part of the cost of constructing improvements to the City of Canton's combined sewer system and sanitary sewer, bearing interest at the rate of not to exceed the greater of 9~ per annum of 125 of the rate for the most recent date shown in the 20 G.O. Bonds index of average municipal bond yields as published in the most recent edition of The Bond Buyer, published in New York, New York, at the time the contract is made for the sale of the bonds? and WHEREAS, the County Clerk of The County of Fulton, Illinois, did cause proper notices of the Election to be given by publishing notice thereof once in the Canton Daily Ledger, a local, community newspaper published in and having a general circulation within the City, and also once in the Cuba Journal, a newspaper published in said County, said notices being published not more than thirty (30) days nor less than ten (10) days prior to the date of the Election, which said notices as so published did specify the time of opening and closing the polls and the question to be voted upon; and -2- WHEREAS, the Canvassing Board of the City by proper proceedings found that a majority of the electors of the City voting at the Election on said question above referred to voted in favor thereof; and WHEREAS, the estimated cost of the 1985 Sewer Project is not less than the sum of $1,650,000 and there are not sufficient funds on hand and currently available to pay the costs thereof; and WHEREAS, it is necessary and for the best interests of the City that the sum of $1,650,000 be borrowed at this time to pay expenses related to the 1985 Sewer Project, and in evidence of such indebtedness, full faith and credit bonds in the principal amount of $1,650,000 be issued; NOW, THEREFORE, Be It Ordained by the City .Council of the City of Canton, Fulton County, Illinois, as follows: Section 1. Definitions. The following words and terms used in this Ordinance shall have the following meanings unless the context or use clearly indicates another or different meaning is intended: (a) "Bond" or "Bonds" means one or more, as applicable, of the $1,650,000 Sewer Bonds, Series 1985, authorized to be issued by this Ordinance. (b) "Bond Fund" means the Bond Fund established in Section 11 of this Ordinance. -3- (c) "Bond Register" means the books of the City kept by the Bond Registrar to evidence the registration and transfer of the Bonds. (d) "Bond Registrar" means LaSalle National Bank, a national banking association, duly authorized to do business as a bond registrar with the powers and duties as herein set forth, or a successor thereto or a successor designated as Bond Registrar hereunder. (e) "City" means the City of Canton, Fulton County, Illinois. (f) "City Council" means the City Council of the City. (g) "City Officer" means the Mayor, City Clerk, or the City Treasurer of the City. (h) "Code" means the Internal Revenue Code of 1954, as amended. (i) "Ordinance" means this Ordinance, numbered 1092 , and passed by the City Council on the 17th day of December, 1985. (j) "Paying Agent" means LaSalle National Bank, a national banking association, duly authorized to do business as a paying agent with the powers and duties as herein set forth, or a successor thereto or a successor designated as Paying Agent hereunder. (k) "Project Fund" means the 1985 Sewer Project Fund established in Section 11 of this Ordinance. -4- (1) "1985 Sewer Project" means the sewer improvement project described and defined as such in the preambles to this Ordinance. Section 2. Incorporation of Preambles. The City Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Determination To Issue Bonds. It is necessary and in the best interests of the City to provide for the payment of a part of the costs of the 1985 Sewer Project, and the expenses incidental thereto and to the issuance of the Bonds, for the public health, welfare, safety, and convenience. Section 4. Bond Details. For the purpose of providing for the payment of a part of the costs of the 1985 Sewer Project, and expenses incidental thereto, as aforesaid, the Bonds shall be issued in the principal amount of $1,650,000. The Bonds shall each be designated "Sewer Bonds, Series 1985"; be dated December 1, 1985; and shall also bear the date of authentication thereof. The Bonds shall be in fully registered form, shall be in denominations of $5,000 and integral multiples thereof (but no single Bond shall represent principal maturing on more than one date), shall be numbered 1 and upward, and shall become due and payable serially on February 1 of each of the years and in the amounts and bearing interest at the rates per cent per annum as follows: -5- Year Amount ($) Rate (~) 1987 50, 000 10.50 1988 75, 000 10.50 1989 75, 000 10.50 1990 100,000 10.50 1991 100,000 10.00 1992 100, 000 8.00 1993 150,000 8.20 1994 150,000 8.40 1995 150,000 8.60 1996 175, 000 8.70 1997 175,000 8.80 1998 175, 000 8.90 1999 175, 000 9.00 The Bonds shall bear interest from their date or from the most recent interest payment date to which interest has been paid or duly provided for, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on the first days of February and August of each year, commencing on August 1, 1986. Interest on each Bond shall be paid by check or draft of the Paying Agent to the person in whose name such Bond is registered at the close of business on the 15th day of the month next preceding the interest payment date. The principal of and interest on the Bonds shall be payable in lawful money of the United States of America at the principal corporate trust office of the Paying Agent in the City of Chicago, Illinois, or at successor Paying Agent and locality. Section 5. Execution; Authentication. The Bonds shall be executed on behalf of the City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile -6- signature of its City Clerk, as they may determine, and shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the City. In case any City Officer whose signature shall appear on any Bond shall cease to be such City Officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such City Officer had remained in office until delivery. All Bonds shall have thereon a certificate of authenti- cation substantially in the form hereinafter set forth, duly executed by the Bond Registrar as authenticating .agent of the City and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Ordinance unless and until such certificate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed by it if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder. Section 6. Registration of Bonds; Persons Treated as Owners. The City shall cause books (the "Bond Register") for the registration and for the transfer of the Bonds as provided in -7- this Ordinance to be kept at the principal corporate trust office of the Bond Registrar, which is hereby constituted and appointed the registrar of the City for this issue. The City is authorized to prepare, and the Bond Registrar or such other agent as the City may designate shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and exchange of Bonds. Upon surrender for transfer of any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instru- ments of transfer in form satisfactory to the Bond Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other authorized denominations. The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond provided, however, the principal amount of Bonds of each maturity authenticated by the Bond -8- Registrar shall not at any one time exceed the authorized prin- cipal amount of Bonds for such maturity less Bonds previously paid. The Bond Registrar shall not be required to transfer or exchange any Bond during the period of fifteen days next preceding any. interest payment date on such Bond. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds. Section 7. Form of Bond. The Bonds shall be prepared in compliance with the National Standard Specifications for Fully Registered Municipal Securities prepared by the American National Standards Committee and shall be in substantially the form here- inafter set forth; provided, however, that if the text of the Bond is to be printed in its entirety on the front side of the -9- Bond, then paragraph [2] and the legend, "See Reverse Side for Additional Provisions," shall be omitted and paragraphs [6] through [10] shall be inserted immediately after paragraph [1]: REGISTERED NO. REGISTERED UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF FULTON CITY OF CANTON SEWER BOND, SERIES 1985 :See Reverse Side: :for Additional :Provisions Interest Maturity Rate: Date: February 1, 19_ Registered Owner: Principal Amount: Dated Date: December 1, 1985 CUSIP [lj KNOW ALL PERSONS BY THESE PRESENTS, that the City of Canton, Fulton County, Illinois (the "City"), hereby acknow- ledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, the -10- Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months ) on such Principal Amount from the later of the date of this Bond or from the most recent interest payment date to which interest has been paid at the Interest Rate per annum identified above, such interest to be payable on February 1 and August 1 of each year, commencing August 1, 1986, until said Principal Amount is paid. Both principal of and interest on this Bond are payable in lawful money of the United States of America at the principal corporate trust office of the LaSalle National Bank, in the City of Chicago, Illinois as paying agent (the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the LaSalle National Bank, in the City of Chicago, Illinois, as bond registrar (the "Bond Registrar"), at the close of business on the 15th day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent mailed to the address of such Registered Owner as it appears on such registration books or at such other address furnished in writing by such Registered Owner to the Bond Registrar. [2] Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. [3] It is hereby certified and recited that all condi- tions, acts and things required by the Constitution and Laws of -11- the State of Illinois to exist or to be done precedent to and in the issuance of this Bond have existed and have been properly done, happened, and been performed in regular and due form and time as required by law; that the indebtedness of the City, represented by the Bonds, and including all other indebtedness of the City, howsoever evidenced or incurred, does not exceed any constitutional or statutory limitation; and that provision has been made for the collection of a direct annual tax, in addition to all other taxes, on all of the taxable property in the City sufficient to pay the interest hereon as the same falls due and also to pay and discharge the principal hereof at maturity. [4] This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Bond Registrar. [5] IN WITNESS WHEREOF, the City of Canton, Fulton County, Illinois, by its City Council, has caused this Bond to be executed by the duly authorized manual or facsimile signature of its Mayor and attested by the duly authorized manual or facsimile signature of its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date identified above. Mayor, City of Canton, Fulton County, Illinois Attest: City Clerk, City of Canton, Fulton County, Illinois (SEAL) -12- Date of Authentication: CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned ordinance and is one of the Sewer Bonds, Series 1985, having a Dated Date of December 1, 1985, of the City of Canton, Fulton County, Illinois, LaSalle National Bank, as Bond Registrar By Authorized Officer 19 Bond Registrar: LaSalle National Bank Paying Agent: LaSalle National Bank -13- [Form of Bond - Reverse Side] State of Illinois County of Fulton City of Canton Sewer Bond, Series 1985 [6] This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of $1,650,000 issued by the City for the purpose of paying part of the costs of the 1985 Sewer Project, and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Bonds (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of the "Illinois Municipal Code," approved May 29, 1961, and all acts amendatory thereof and supplementary thereto, and is authorized by a majority of the electors of the City voting upon the question at an election duly called, noticed, held and canvassed for that purpose in said City, in compliance with the Ordinance, duly passed by the City Council of the City, approved by the Mayor thereof, and published, in all respects as by law required. [7] The Bonds are issued in fully registered form in the denomination of $5,000 and authorized integral multiples thereof. This Bond may be exchanged at the principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations upon the terms set forth in the Bond Ordinance. -14- [8] This Bond is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of authorized denominations of the same maturity and for the same aggregate principal amount will be issued to the transferee in exchange therefor . [9] The Bond Registrar shall not be required to transfer or exchange any Bond during the period of fifteen days next preceding any interest payment date on such Bond. [10~ The City, the Bond Registrar, and the Paying Agent, may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City, the Bond Registrar, and the Paying Agent shall not be affected by any notice to the contrary. -15- TRANSFER FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Name and Address of Transferee) the within Bond and does hereby irrevocably constitute and appoint as attorney to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. Section 8. Tax Levy. For the purpose of providing funds required to pay the interest on the Bonds promptly when and as the same falls due and to pay and discharge the principal thereof at maturity, there is hereby levied upon all of the taxable property within the City, in the years for which any of the Bonds are outstanding, a direct annual tax sufficient for that purpose; and there is hereby levied on all of the taxable property in the City, in addition to all other taxes, the following property in the City, in addition to all other taxes, the following direct annual taxes, to wit: -16- For the Year A Tax Sufficient to Produce the Sum of: 1985 $ 224.125.00 for principal and interest up to and including February 1, 1987 1986 $ 219 .000.00 for principal and interest 1987 $ 211 .125.00 for principal and interest 1988 $ 228, 250.00 for principal and interest 1989 $ 217 .750.00 for principal and interest 1990 $ 207 .750.00 for principal and interest 1991 $ 249 .750.00 for principal and interest 1992 $ 237 ,450.00 for principal and interest 1993 $ 224 ,850.00 for principal and interest 1994 $ 236 .950.00 for principal and interest 1995 $ 221 ,725.00 for priniipal and interest 1996 $ 206 ,325.00 for principal and interest 1997 $ 190 ,750.00 _ for principal and interest Interest or principal coming due at any time when there are insufficient funds on hand from the foregoing tax levy to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of said taxes herein levied; and when said taxes shall have been collected, reimbursement shall be made to said funds in the amount so advanced. The City covenants and agrees with the purchasers and the holders of the Bonds that so long as any of the Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to levy and collect the foregoing tax levy. The City and its officers will comply with all present and future applicable laws in order to assure that the foregoing taxes will be levied, extended and collected as provided herein and deposited into the Bond Fund. -17- Section 9. Filing with County Clerk. Promptly, as soon as this Ordinance become effective, a copy hereof, certified by the City Clerk of the City, shall be filed with the County Clerk of The County of Fulton, Illinois; and said County Clerk shall in and for each of the years 1985 to 1997, inclusive, ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in each of said years; and said County Clerk shall extend the same for collection on the tax books in connection with other taxes levied in said years in and by the City for general corporate purposes of the City; and in said years such annual tax shall be levied and collected by and for and on behalf of the City in like manner as taxes for general corporate purposes for said years are levied and collected and in addition to and in excess of all other taxes. Section 10. Sale of Bonds. The Bonds shall be executed as in this Ordinance provided as soon after the passage hereof as may be, shall be deposited with the City Treasurer, and shall be by the Treasurer delivered to the purchaser(s) thereof, namely, The Northern Trust Co. Chicago Illinois, upon payment of the purchase price agreed upon, the same being not less than the par value of the Bonds plus accrued interest to date of delivery plus a premium of $ -~- The contract for the sale of the Bonds to said purchaser(s) is hereby in all respects ratified, approved and confirmed, it being hereby declared that no person holding any office of the City, either by election or -18- appointment, is in any manner interested, either directly or indirectly, in his own name or in the name of any other person, association, trust or corporation, in such contract. Section 11. Creation of Funds and Appropriations. From the amounts received upon sale of the Bonds, all principal proceeds shall be deposited into the "Sewer Bonds, Series 1985, Project Fund" (the "Project Fund"), hereby created; and disbursements shall be made from the Project Fund only for the purposes for which the Bonds are being issued and for which the principal proceeds are hereby appropriated. Accrued interest and premium on the Bonds shall be and are hereby appropriated for the purpose of paying first interest due on the Bonds and, to that end, are hereby ordered deposited into the "Sewer Bonds, Series 1985, Bond Fund" (the "Bond Fund"), hereby created which fund shall be the fund for the payment of principal of and interest on the Bonds. Taxes received for the payment of the Bonds shall be deposited into the Bond Fund and used solely and only for paying the Bonds. Interest earned on deposits in the Bond Fund shall be retained in the Bond Fund for payment of the principal of or .interest on the Bonds on the interest payment date next after such interest is received; or, to the extent permitted by law, such interest may be transferred to such other fund of the City as may be determined by the City Council. -19- Section 12. Arbitrage. The City represents and certifies as follows with respect to the Bonds: (a) The City has heretofore incurred, or within six months after delivery of the Bonds expects to incur, substantial binding obligations with respect to the 1985 Sewer Project to be paid for with money received from the sale of the Bonds, said binding obligations comprising binding contracts for work on the 1985 Sewer Project in not less than the amount of $41,250.00, being an amount not less than 2-1/2~ of that portion of the estimated total 1985 Sewer Project costs financed with the Bonds or $100,000 (whichever is less). (b) Over $1,402,500.00, being an amount not less than 85~ of the principal proceeds of the Bonds, of the money derived from the sale of the Bonds and deposited into the Project Fund will be expended on or before December 1, 1988, for the purpose of paying the costs of the 1985 Sewer Project, said date being within three years following the date of issue of the Bonds. (c) All of the principal proceeds and investment earnings thereon of the Bonds will be used, needed and ex- pended for the purpose of paying the costs of the 1985 Sewer Project, including expenses incidental thereto. (d) Work on the 1985 Sewer Project is expected to proceed with due diligence to completion. (e) No acquisition or improvement made as a part of the 1985 Sewer Project has been or is expected to be sold or otherwise disposed of in whole or in material part prior to the last maturity of the Bonds. "Material part" means (i) land, or (ii) any improvement, or (iii) personal property or fixtures in excess of that which is expected to be sold, traded in or discarded upon wearing out or becoming obsolete. (f) The City will receive par plus accrued interest and agreed upon premium from the sale of the Bonds. Accrued interest and premium on the Bonds are to be deposited in the Bond Fund to pay first interest coming due on the Bonds. (g) Except for the Bond Fund, the City has not created or established and will not create or establish any sinking fund, reserve fund or any other similar fund to provide for the payment of the Bonds. The Bond Fund has been established and will be funded in a manner primarily to achieve a proper matching of tax revenues and debt service, and will be -20- depleted at least annually to an amount not in excess of one- twelfth the particular annual debt service on the Bonds. Money deposited into the Bond Fund will be spent within a 13- month period beginning on the date of deposit, and investment earnings in the Bond Fund will be spent or withdrawn therefrom within a 1-year period beginning on the date of receipt. (h) The foregoing statements of expectation are based upon the following facts and estimates: (1) Amounts shown as received will be received pursuant to contract of sale. (2) Amounts paid or to be paid into various funds and accounts have been directed to be paid into said funds and accounts by authority hereof. (3) The anticipated dates of the obligation of and expenditure of money in the Project Fund derived from the sale of Bonds and the amounts to be spent on or before such dates is based upon consultation with the engineers charged with responsible supervision of the 1985 Sewer Project. (i) If at any time after the third anniversary of the date of issuance of the Bonds, the amount of money in the Project Fund exceeds $247,500.00, then the amount of money in the Project Fund in excess of said sum of $247,500.00 shall not be invested at a yield which is "materially higher" (within the meaning of Treas. Reg. §1.103-13(b)(5) (1979)) than the yield on the Bonds unless the City Council receives an opinion of counsel of nationally recognized standing in matters pertaining to tax-exempt bonds to the effect that investment of such moneys in the Project Fund at a yield materially higher than the yield on the Bonds will not result in the inclusion of interest on the Bonds in gross income for federal income tax purposes. (j) In valuing the moneys on deposit in the Project Fund at any time for the purposes of complying with the foregoing paragraph (i), investments will be taken into account at purchase price with the following exception: if an invest- ment is purchased at a discount or results in interest pay- ments for any annual period in excess of interest payments for any preceding annual period (reflecting the annual reinvestment of accrued interest as principal), the amount of such discount or excess interest (not discounted to present value) shall be added to the purchase price ratably each year over the term of the investment. The yield on each invest- ment shall be calculated on the basis of the actual payments -21- ' received from and the price paid for such investment. (k) To the best of the knowledge and belief of the persons comprising the City Council, there are no facts, estimates or circumstances that would materially change the conclusions and representations set out in this section, and the expectations set out in this Section are reasonable. (1) The City has not been notified of any dis- qualification or proposed disqualification of it by the Commissioner of the Internal Revenue Service as a bond issuer which may certify bond issues under Treas. Reg. §1.103-13 (a)(2)(ii) (1979). The City Council also certifies and further covenants with the purchasers and holders of the Bonds from time to time outstanding that moneys on deposit in any fund or account in connection with the Bonds, whether or not such moneys were derived from the proceeds of the sale of the Bonds or from any other source, will not be used in a manner which will cause the Bonds to be "arbitrage bonds" within the meaning of Section 103(c) of the Code, and any lawful regulations promulgated thereunder, including Treas. Reg. ~§1.103-13, 1.103- 14 and 1.103-15 (1979) as the same presently exist or may from time to time hereafter be amended, supplemented or revised. The City Council reserve the right, however, to make any investment of moneys on deposit in any fund or account in connection with the Bonds permitted by state law, if, when and to the extent such investment would not, in the opinion of counsel as hereinabove described in paragraph (i), result in the inclusion of interest on the Bonds in gross income for federal income tax purposes (such status of interest on the Bonds being hereinafter referred -22- to as "Tax Exempt"). Section 13. Registered Form. The City recognizes that Section 103(j) of the Code requires the Bonds to be issued and to remain in fully registered form in order that interest thereon be Tax Exempt under laws in force at the time the Bonds are delivered. In this connection, the City agrees that it will not take any action to permit the Bonds to be issued in, or converted into, bearer or coupon form. Section 14. Further Covenants and Representations Regarding Tax Exempt Status. Any City Officer is hereby authorized and directed to make such further covenants, estimates, representations, or assurances as may be necessary or advisable to the end that the interest on the Bonds is and remains Tax Exempt. Section 15. List of Bondholders. The Bond Registrar shall maintain a list of the names and addresses of the owners of all Bonds. Section 16. Rights and Duties of Bond Registrar. If requested by the Bond Registrar, any City Officer is authorized to execute the Bond Registrar's standard form of agreement between the City and the Bond Registrar with respect to the obligations and duties of the Bond Registrar hereunder. In addition to the terms of such agreement and subject to modifica- tion thereby, the Bond Registrar by its acceptance of duties hereunder agrees as follows: -23- ~' (a) to act as bond registrar, paying agent, authenticating agent, and transfer agent as provided herein; (b) to maintain a list of Bondholders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential to the fullest extent permitted by law; (c) to cancel and/or destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange transfer; (d) to furnish the City at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (e) to furnish the City at least annually an audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds. The City Clerk of the City is hereby directed to file a certified copy of this Ordinance with the Bond Registrar and the Paying Agent. Section 17. Publication of Ordinance. A full, true and complete copy of this ordinance shall be published within ten (10) days after passage in the Canton Daily Ledger, being a newspaper published in and having a general circulation within the City. Section 18. Superseder and Effective Date. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this Ordinance shall be in full force and effect upon its passage, approval and publication, as provided by law. -24- AYES : Aldermen Kovachevich, Zilly, Falcone, . Bohler, rSay and Mayor Edwards NAYS : None. ABSENT : Aldermen Worl~nan, Chapman, (Sarff was excused at 7:10 P.M. ) ADOPTED: December 17, 1985 APPROVED: December 17th , 1985 Mayor, City of Canton, Fulton County, Illinois Recorded in City Records: December 17, 1985. ~~ Attest: „- ~, " ~ it _Clerk City of Canton, Fulton C nty, Illinois -25- ' Kovachevich Alderman Falcone moved and Alderman seconded the motion that said ordinance as presented and read be adopted. After a full discussion thereof, the, Mayor directed that the roll be called for a vote upon the motion to adopt the ordinance as read. Upon roll being called, the following Aldermen voted AYE : Kovachevich, silly, Falcone, Bohler, I~~ay and P2ayor Edwards and the following Aldermen voted NAY : None. Whereupon the Mayor declared the motion carried and the ordinance adopted, and henceforth did approve and signed the same in open meeting, and did direct the Clerk to record the same in full in the records of the City Council of the City of Canton, Fulton County, Illinois. Other business not pertinent to the bonds was duly transacted at the meeting. Upon motion duly made and carried, the meeting adjourned. ,~ - City erk -2- i STATE OF ILLINOIS COUNTY OF FULTON SS CERTIFICATION OF MINUTES AND ORDINANCE I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Canton, Fulton County, Illinois (the "City"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes and files of the City and of the City Council (the "City Council") thereof. I do further certify that the foregoing is a full, true and complete transcript of that portion of the minutes of the meeting of the City Council held on the 17th day of December, 1985, insofar as the same relates to the adoption of an ordinance numbered 1092 and entitled: AN ORDINANCE providing for the issuance of $1,650,000 principal amount Sewer Bonds, Series 1985, of the City of Canton, Fulton County, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the City Council on the adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given to all newspapers, radio or television stations and other news media requesting such notice; and that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and the Illinois Municipal Code, as amended, and that the City Council has complied with all of the provisions of said Act and said Code and with all of the procedural rules of the City Council in the adoption of said ordinance. IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the City, this 17th day of December, 1985. , ~ f ,~ i y Clerk (SEAL) .~` . ~ ; STATE OF ILLINOIS SS COUNTY OF FULTON ) CERTIFICATE OF PUBLICATION IN PAMPHLET FORM I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Canton, Fulton County, Illinois (the "City"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes and files of the City and of the City Council (the "City Council") thereof. I do further certify that on the 17th day of December, 1985, there was published in pamphlet form, by authority of the City Council, a true, correct and complete copy of Ordinance Number 1092 of the City adopted by the City Council on the 17th day of December, 1985, providing for the issuance of $1,650,000 Sewer Bonds, Series 1985, dated December 1, 1985, of the City and that said ordinance as so published was on said date readily available for public inspection and distribution, in sufficient number, at my office as City Clerk located in the City. IN WITNESS WHEREOF, I have affixed hereto my official signature and the seal of the City this 17th day of December, 1985. ., ~ 0 ity erk (SEAL)