HomeMy WebLinkAboutOrdinance # 1847ORDINANCE No. 1847
AN OxDINAxCE authorizing and providing for the issue of
$26,500,000 General Obligation Bonds (Alternate Revenue
Source), Series 2005, of the City of Canton, Fulton County,
Illinois, for the purpose of improving the City's waterworks and
sewerage system, prescribing the details of said bonds, and
providing for the imposition of taxes to pay the same, and for the
collection, segregation and application of the waterworks and
sewerage system revenues to pay said Bonds.
W~xEAS the City of Canton, Fulton County, Illinois (the "City "), is a duly organized
and existing municipality incorporated and existing under the provisions of the laws of the State
of Illinois, is now operating under the provisions of the Illinois Municipal Code, as amended (the
"Code "), and for many yeazs has owned and operated amunicipally-owned waterworks and
sewerage system as a combined utility (the "System ") as set forth in Division 139 of Article 11
of the Code; and
WxExEAS the City Council of the City (the "Corporate Authorities ") has determined that
it is advisable, necessazy and in the best interests of the public health, safety and welfaze to
improve the System, including but not limited to the following: (a) water improvements:
construction of a raw water intake structure; construction of a raw water transmission main;
rehabilitation and upgrade of equipment at the water treatment plant; expansion of the water
treatment plant; construction of a finished water transmission main; and construction of an
elevated water storage tank; and (b) wastewater improvements; construction of an extended
aeration process; rehabilitation and upgrade of equipment at the west side wastewater treatment
plant; expansion of west side wastewater treatment plant; construction of sewage pumping
station; construction of excess flow equipment; and sanitary sewer collection system
improvements; and engineering, legal, financial and administrative expenses related thereto (the
"Project "), all in accordance with the estimate of costs therefor; and
REPORT TO THE CANTON CITY COUNCII. CONCERNING OUTSIDE
WATER CONTRACTS
City Clerk Nancy Whites has furnished me copies of the various contracts that the
City of Canton has entered into for the supply of potable water. The contracts are similar
except for duration. This is no real surprise since all follow the form of the first such
contract which was on a form supplied by the State of Illinois. The salient aspects of the
contracts are as follows:
CUBA: Date: The original contract was executed December 7, 1982.
Term: 65 years
Amendment: September 2, 1994 to allow Cuba to resell water which it
buys from Canton to the residents of Wee Ma Tuk
The contract contains no early termination provision and does not
expire unti12047
FAIRVIEW: Date: March 6, 1995
Term: 99 years
The contract contains no termination provisions.
NORRIS: Date: July 7, 1980
Term: 40 years
It contains no termination provision.
DUNFERMLINE-ST. DAVID WATER & SEWER COMMISION:
Date: January 2, 1979
Term: 40 years
This was the earliest contract for supply outside the city and contains no
termination provision.
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MINUTES of a regular public meeting of the City Council of the
City of Canton, Fulton County, Illinois, held in the Historic Depot,
Canton, Illinois, said City, at 6:30 o'clock P.M., on the 4th day of
October, 2005.
The Mayor called the meeting to order and directed the City Clerk to call the roll.
Upon roll call, the following at said location answered present: 50 north 4th Avenue
the Mayor, and Aldermen: P~ayor Rodney Heinze, Aldermen Jim Hartford, Joe Berardi,
tarry Sarff, Les Carl, Kevin Meade, Rick Reed, Bric Schenck,
The following Aldermen were absent: •ra; ¢ L~1pGt
Alderman Sarff/heed presented the following ordinance, copies of which
were available to all in attendance at said meeting who requested a copy:
No one rew.ested a copy at the meeting; .
1869340.DOC
2128247 • EPB • 10/4/05
ORDINANCE NO. 184
AN ORDINANCE authorizing and providing for the issue of
$26,430,000 .General Obligation Bonds (Alternate Revenue
Source), Series 2005, of the City of Canton, Fulton County,
Illinois, for the purpose of improving the City's waterworks and
sewerage system, prescribing the details of said bonds, and
providing for the imposition of taxes to pay the same, and for the
collection, segregation and application of the waterworks and
sewerage system revenues to pay said Bonds.
TABLE OF CONTENTS
SECTION HEADING PAGE
PREAMBLES.......
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
Section 11.
Section 12.
Section 13.
Section 14.
Section 15.
Section 16.
Section 17.
Section 18.
Section 19.
Section 20.
Section 21.
Section 22.
Section 23.
Section 24.
Section 25.
Section 26.
Section 27.
.............................................................................................................................1
Definitions .................................................................................................... 5
Incorporation of Preambles ..........................................................................9
Determination to Issue Bonds; Acceptance of Report .................................9
Bond Details .................................................................................................9
Redemption ................................................................................................11
Execution; Authentication .........................................................................13
Registration of Bonds; Persons Treated as Owners ................................... 14
Form of Bonds ........................................................................................... 18
Sale of the Bonds ....................................................................................... 26
Treatment of Bonds As Debt ..................................................................... 26
Continuation of Waterworks and Sewerage Fund and
Accounts Thereof ................................................................................. 27
Flow of Funds ............................................................................................ 27
Account Excesses ....................................................................................... 30
Pledged Taxes; Tax Levy ........................................................................... 30
Filing with County Clerk; Alternate Bond Fund ....................................... 31
Abatement of Pledged Taxes ..................................................................... 32
Pledged Revenues; General Covenants ...................................................... 33
Future Revenue Bonds, Additional Bonds and Subordinate
Bonds ................................................................................................... 35
Provisions a Contract ................................................................................. 35
Use of Proceeds .......................................................................................... 35
Non-Arbitrage and Tax-Exemption ........................................................... 36
Registered Form ......................................................................................... 38
Bond Registrar Covenants ......................................................................... 38
Continuing Disclosure Undertaking .......................................................... 39
Insurance Provisions .................................................................................. 39
Severability ................................................................................................ 43
Repealer and Superceder ............................................................................ 43
ORDINANCE No. 1847
AN ORDINANCE authorizing and providing for the issue of
$26,430,000 General Obligation Bonds (Alternate Revenue
Source), Series 2005, of the City of Canton, Fulton County,
Illinois, for the purpose of improving the City's waterworks and
sewerage system, prescribing the details of said bonds, and
providing for the imposition of taxes to pay the same, and for the
collection, segregation and application of the waterworks and
sewerage system revenues to pay said Bonds.
WHEREAS the City of Canton, Fulton County, Illinois (the "City "), is a duly organized
and existing municipality incorporated and existing under the provisions of the laws of the State
of Illinois, is now operating under the provisions of the Illinois Municipal Code, as amended (the
"Code "), and for many years has owned and operated amunicipally-owned waterworks and
sewerage system as a combined utility (the "System ") as set forth in Division 139 of Article 11
of the Code; and
WHEREAS the City Council of the City (the "Corporate Authorities ") has determined
that it is advisable, necessary and in the best interests of the public health, safety and welfare to
improve the. System, including but not limited to the following: (a) water improvements:
construction of a raw water intake structure; construction of a raw water transmission main;
rehabilitation and upgrade of equipment at the water treatment plant; expansion of the water
treatment plant; construction of a finished water transmission main; and construction of an
elevated water storage tank; and (b) wastewater improvements; construction of an extended
aeration process; rehabilitation and upgrade of equipment at the west side wastewater treatment
plant; expansion of west side wastewater treatment plant; construction of sewage pumping
station; construction of excess flow equipment; and sanitary sewer collection system
improvements; and engineering, legal, financial and administrative expenses related thereto (the
"Project "), all in accordance with the estimate of costs therefor; and
WHEREAS the estimated cost of the construction and installation of the Project, including
engineering, legal, financial, bond discount, printing and publication costs and other expenses is
$26,430,000, and there are insufficient funds on hand and lawfully available to pay such costs;
and
WHEREAS it is necessary and for the best interests of the City that the Project be
constructed; and
WHEREAS the City pursuant to the provisions of Division 139 of Article 11 of the
Municipal Code is authorized to issue its waterworks and sewerage revenue bonds for the
purpose of providing funds to pay the costs of the Project; and
WHEREAS as provided in Section 15 of the Local Government Debt Reform Act of the
State of Illinois, as supplemented and amended (the "Debt Reform Act "), whenever revenue
bonds have been authorized to be issued pursuant to applicable laws, the City may issue its
general obligation bonds in lieu of such revenue bonds as authorized, and such general obligation
bonds may be referred to as "alternate bonds "; and
WHEREAS it is necessary and for the best interests of the City that the Project be
undertaken and for the purpose of providing funds to pay the costs of the Project, and in
accordance with the provisions of the Debt Reform Act, the Corporate Authorities, on the 6th
day of April, 2005, adopted Ordinance No. 1830 (the "Author°izing Ordinance "), authorizing the
issuance of Waterworks and Sewerage Revenue Bonds (the "Revenue Bonds "), as provided in
the Municipal Code, in an amount not to exceed $36,000,000 or in lieu thereof, authorizing the
issuance of General Obligation Bonds (Alternate Revenue Source) (the "2005 Alternate Bonds"
or the "Bonds "), as provided in the Debt Reform Act, in an amount not to exceed $36,000,000;
and
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WHEREAS on the 12th day of April, 2005, the Authorizing Ordinance, together with a
separate notice in statutory form, was published in the Canton Daily Ledger, being a newspaper
of general circulation in the City, and an affidavit evidencing the publication of the Authorizing
Ordinance and said notice was presented to the Corporate Authorities and made apart of the
permanent records of the City; and
WHEREAS more than thirty (30) days expired since the date of publication of the
Authorizing Ordinance and said notice, and no petition was filed with the City Clerk requesting
that the question of the issuance of the Revenue Bonds or the 2005 Alternate Bonds be submitted
to referendum; and
WHEREAS the Corporate Authorities are now authorized to issue the Revenue Bonds to
the amount of $36,000,000, or, in lieu thereof, the 2005 Alternate Bonds to the amount of
$36,000,000 in accordance with the provisions of the Debt Reform Act; and
WHEREAS the City has heretofore entered into a Loan Agreement with the Illinois
Environmental Protection Agency, dated June 26, 2001 (the "IEPA Loan Agreement ") pursuant
to Ordinance No. 1698, adopted by the City Council of the City on June 5, 2001 (the "2001
Ordinance ") for the purpose of paying a part of the cost of constructing, improving and
extending the System; and
WHEREAS the IEPA Loan Agreement contains provisions for the issuance of additional
parity obligations, including the 2005 Alternate Bonds; and
WHEREAS pursuant to the Loan Agreement, the Illinois Environmental Protection
Agency has provided its consent to issue the 2005 Alternate Bonds on a parity with the City's
outstanding loan evidenced by the IEPA Loan Agreement; and
WHEREAS the City has previously issued and there are currently outstanding General
Obligation Refunding Bonds (Alternate Revenue Source), Series 2002 (the "Series 2002
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Bonds ") pursuant to Ordinance Number 1720, adopted by the Corporate Authorities on
February 5, 2002 (the "2002 Ordinance "); and
WHEREAS pursuant to Section 18 of the 2002 Ordinance, the City may issue additional
alternate bonds on a parity with the Series 2002 Bonds; and
WHEREAS the 2005 Alternate Bonds shall therefore be issued on a parity with the debt
evidenced under the IEPA Loan Agreement and with the Series 2002 Bonds; and
WHEREAS the 2005 Alternate Bonds to be issued will be payable from the Pledged
Revenues and the Pledged Taxes, as hereinafter defined; and
WHEREAS the Corporate Authorities have heretofore and do hereby determine that the
Pledged Revenues will be sufficient to provide or pay in each year to final maturity of the Bonds
all of the following (1) Operation and Maintenance Costs as hereinafter defined, but not
including depreciation, (2) other contractual or tort liability obligations, if any, payable from the
Revenues as hereinafter defined, and (3) in each year, an amount not less than 1.25 times debt
service of the IEPA Loan Agreement, the Series 2002 Bonds and the Bonds now proposed to be
issued; and
WHEREAS such deternlination of the sufficiency of the Pledged Revenues is supported by
the Feasibility Report (the "Report ") of First Midstate Inc. and Mauer-Stutz, Inc. (collectively
the "Feasibility Analyst "), dated October 4, 2005, which Report has been presented to the
Corporate Authorities and is now on file with the City Clerk; and
WHEREAS pursuant to and in accordance with the provisions of the Bond Issue
Notification Act of the State of Illinois, the Mayor of the City (the "Mayor "), on the 3rd day of
May, 2005, executed an order calling a public hearing (the "Hearing ") for the 24th day of May,
2005, concerning the intent of the Corporate Authorities to sell the 2005 Alternate Bonds; and
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WHEREAS notice of the Hearing was given by (i) publication at least once not less than
seven (7) nor more than thirty (30) days before the date of the Hearing in the Canton Daily
Ledger, the same being a newspaper of general circulation in the City, and (ii) posting at least 48
hours before the Hearing a copy of the Notice at the principal office of the Corporate Authorities;
and
WHEREAS the Hearing was held on the 24th day of May, 2005, and at the Hearing, the
Corporate Authorities explained the reasons for the proposed bond issue and permitted persons
desiring to be heard an opportunity to present written or oral testimony within reasonable time
limits; and
WHEREAS the Hearing was finally adjourned on the 24th day of May, 2005, and not less
than seven (7) days have passed since the final adjournment of the Hearing; and
WHEREAS the Corporate Authorities are now authorized to issue the Bonds to the amount
of $36,000,000 in accordance with the provisions of the Debt Reform Act, and the Corporate
Authorities hereby determine that it is necessary and advisable that there be issued at this time
$26,430,000 of the Bonds so authorized:
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:
"Act" or "Debt Reform Act" means the Local Government Debt Reform Act of the State
of Illinois, as amended.
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"Additional Bonds " means any alternate bonds issued in the future in accordance with
the provisions of the Debt Reform Act on a parity with and sharing ratably and equally in the
Pledged Revenues with the Bonds.
"Alternate Bond and Inter°est Subaccount" means the Alternate Bond and Interest
Subaccount maintained hereunder and further described by Section 12 of this Ordinance.
"Bond" or "Bonds" means one or more, as applicable, of the $26,430,000 General
Obligation Bonds (Alternate Revenue Source), Series 2005, authorized to be issued by this
Ordinance.
"Bond Fu~zd " means the Series 2005 Alternate Bond Fund established hereunder and
further described by Section 15 of this Ordinance.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence the
registration and transfer of the Bonds.
"Bond Registrar" means MidAmerica National Bank, Canton, Illinois, or successor
thereto or designated hereunder, in its respective capacities as bond registrar and paying agent.
"City" means the City of Canton, Fulton County, Illinois.
"Code"means the Illinois Municipal Code, as supplemented and amended.
"Co~Porate Authorities "means the City Council of the City.
"County Clerk" means the County Clerk of The County of Fulton, Illinois.
"Expense Fund " means the fund established hereunder and further described by
Section 21 of this Ordinance.
"Fiscal Year" means that twelve-calendar month period beginning on May 1 of the
calendar year and ending on the next succeeding Apri130.
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"Future Bond Ordinances" means the ordinances of the City authorizing the issuance of
bonds payable from the Revenues, but not including this Ordinance or any other ordinance
authorizing the issuance of Additional Bonds.
"IRC"means the Internal Revenue Code of 1986, as amended.
"Net System Revenues "means moneys to the credit of the Alternate Bond and Interest
Subaccount within the Surplus Account of the Waterworks and Sewerage Fund, said Surplus
Account consisting of the funds remaining in the Waterworks and Sewerage Fund after the
required monthly deposits and credits have been made to the Operation and Maintenance
Account, the Depreciation Account and any other accounts as may be created in the future, of
said Waterworks and Sewerage Fund.
"Operation and Maintenance Costs" means all costs of operating, maintaining and
routine repair of the System, including wages, salaries, costs of materials and supplies, power,
fuel, insurance, taxes, including rebate of excess arbitrage profits to the U.S. government, and
purchase of water or sewage treatment services (including all payments by the City pursuant to
long-term contracts for such services); but excluding debt service, depreciation, capital
improvements or replacements (including meter replacements) or engineering expenses in
anticipation thereof or in connection therewith, or any reserve requirements; and otherwise
determined in accordance with generally accepted accounting principles for municipal enterprise
funds.
"Ordinance "means this Ordinance as originally adopted and as the same may from time
to time be amended or supplemented in accordance with terms hereof.
"Other Funds " means such other funds of the City as may be necessary and on hand
from time to time and lawfully available to pay principal and interest on the Bonds.
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"Outstanding" means the IEPA Loan Agreement, the 2002 Bonds, the Bonds and
Additional Bonds which are outstanding and unpaid; provided, however°, such term shall not
include any of the IEPA Loan Agreement, the 2002 Bonds, the Bonds or Additional Bonds
(i) which have matured and for which moneys are on deposit with proper paying agents or are
otherwise sufficiently available to pay all principal thereof and interest thereon or (ii) the
provision for payment of which has been made by the City by the deposit in an irrevocable trust
or escrow of funds or direct, full faith and credit obligations of the United States of America, the
principal of and interest on which will be sufficient to pay at maturity or as called for redemption
all the principal of and interest on such IEPA Loan Agreement, the 2002 Bonds, the Bonds or
Additional Bonds.
"Pledged Moneys "means, collectively, the Pledged Revenues and the Pledged Taxes.
"Pledged Revenues "means (a) Net System Revenues and (b) Other Funds.
"Pledged Taxes "means the ad valorem taxes levied against all of the taxable property in
the City without limitation as to rate or amount, pledged hereunder by the City as security for the
Bonds.
"Project" means such project as described and defined as such in the preambles to this
Ordinance.
"Revenues "means all income from whatever source derived from the System, including
(i) investment income; (ii) connection, permit and inspection fees and the like; (iii) penalties anal
delinquency charges; (iv) capital development, reimbursement, or recovery charges and the like;
and (v) annexation or pre-annexation charges insofar as designated by the Corporate Authorities
as paid for System connection or service; but excluding expressly (a) non-recurring income from
the sale of property of the System; (b) governmental or other grants; and (c) advances or grants
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made from the City; and as otherwise determined in accordance with generally accepted
accounting principles for municipal enterprise funds.
"System" refers to all property, real, personal or otherwise owned or to be owned by the
City or under the control of the City, and used for waterworks and sewerage purposes, including
any and all further extensions, improvements and additions to the System.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and received
thereon as not includible in the gross income of the owners thereof under the IRC for federal
income tax purposes except to the extent that such interest will be taken into account in
computing an adjustment used in determining the alternative minimum tax for certain
corporations.
"Waterworks and Sewerage Fund " means the Waterworks and Sewerage Fund of the
City created hereunder and further described in Section 11 of this Ordinance.
Section 2. Incorporation of Preambles. The Corporate Authorities hereby find that the
recitals contained in the preambles to this Ordinance are true, correct and do hereby incorporate
them into this Ordinance by this reference.
Section 3. Determination to Issue Bonds; Acceptance of Report. It is necessary and in
the best interests of the City for the City to undertake the Project for the public health, safety and
welfare, in accordance with the estimate of costs therefor as described, and to issue the Bonds to
enable the City to pay the costs thereof. The Report is hereby accepted and the Corporate
Authorities hereby find and determine that the Feasibility Analyst is a feasibility analyst having a
national reputation for expertise in such matters.
Section 4. Bond Details. For the purpose of providing for the payment of costs of the
Project, there shall be issued and sold the Bonds in the aggregate principal amount of
$26,430,000. The Bonds shall each be designated "General Obligation Bond (Alternate Revenue
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Source), Series 2005," and be dated October 1, 2005, and shall also bear the date of
authentication thereof. The Bonds shall be in fully registered form, shall be in denominations of
$5,000 or authorized integral multiples thereof (but no single Bond shall represent principal
maturing on more than one date), shall be numbered in such reasonable fashion as may be
selected by the Bond Registrar, and shall mature serially on December 1 of the years (subject to
prior redemption as set forth herein), in the amounts and bearing interest at the rates percent per
annum as follows:
2006 $ 550,000 3.10%
2007 1,500,000 3.25%
2008 1,110,000 4.00%
2009 940,000 4.00%
2010 1,180,000 5.00%
2011 1,245,000 5.00%
2012 1,310,000 5.00%
2013 1,375,000 5.00%
2014 1,445,000 5.00%
2015 1,515,000 5.00%
2016 1,590,000 4.10%
2017 1,670,000 4.20%
2018 1,735,000 5.00%
2019 1,805,000 5.00%
2020 1,880,000 5.00%
2021 1,960,000 5.00%
2022 2,145,000 5.00%
2023 1,475,000 5.00%
Each Bond shall bear interest from the later of its Dated Date as hereinabove provided or
from the most recent interest payment date to which interest has been paid or duly provided for
until the principal amount of such Bond is paid or duly provided for, such interest (computed
upon the basis of a 360-day year of twelve 30-day months) being payable on December 1, 2006,
and semiannually thereafter on June 1 and December 1 of each year. Interest on each Bond shall
be paid by check or draft of the Bond Registrar, payable upon presentation thereof in lawful
money of the United States of America, to the person in whose name such Bond is registered at
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the close of business on the 15th day of the month next preceding the interest payment date. The
principal of the Bonds shall be payable in lawful money of the United States of America upon
presentation thereof at the principal office of the Bond Registrar.
Section S. Redemption. The Bonds due on or after December 1, 2016, shall be subject
to redemption prior to maturity at the option of the City as a whole or in part in integral multiples
of $5,000 in any order of their maturity as determined by the City (less than all of the Bonds of a
single maturity to be selected by the Bond Registrar), on December 1, 2015, and on any date
thereafter, at the redemption price of par plus accrued interest to the redemption date.
The Bonds shall be redeemed only in the principal amount of $5,000 and integral
multiples thereof. The City shall, at least forty-five (45) days prior to the redemption date
(unless a shorter time period shall be satisfactory to the Bond Registrar) notify the Bond
Registrar of such redemption date and of the principal amount and maturity or maturities of
Bonds to be redeemed. For purposes of any redemption of less than all of the outstanding Bonds
of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected
by lot by the Bond Registrar from the Bonds of such maturity by such method of lottery as the
Bond Registrar shall deem fair and appropriate; provided that such lottery shall provide for the
selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000 portion
of a Bond shall be as likely to be called for redemption as any other such $5,000 Bond or
$5,000 portion. The Bond Registrar shall make such selection upon the earlier of the irrevocable
deposit of funds with an escrow agent sufficient to pay the redemption price of the Bonds to be
redeemed or the time of the giving of official notice of redemption.
The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of
Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
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Unless waived by any holder of Bonds to be redeemed, notice of the call for any such
redemption shall be given by the Bond Registrar on behalf of the City by mailing the redemption
notice by first class mail at least thirty (30) days and not more than sixty (60) days prior to the
date fixed for redemption to the registered owner of the Bond or Bonds to be redeemed at the
address shown on the Bond Register or at such other address as is furnished in writing by such
registered owner to the Bond Registrar.
All notices of redemption shall state:
(1) the redemption date,
(2) the redemption price,
(3) if less than all outstanding Bonds are to be redeemed, the identification
(and, in the case of partial redemption, the respective principal amounts) of the Bonds to
be redeemed,
(4) that on the redemption date the redemption price will become due and
payable upon each such Bond or portion thereof called for redemption, and that interest
thereon shall cease to accrue from and after said date,
(5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office of
the Bond Registrar, and
(6) such other information then required by custom, practice or industry
standard.
Prior to any redemption date, the City shall deposit with the Bond Registrar an amount of
money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to
be redeemed on that date.
Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so
to be redeemed shall, on the redemption date, become due and payable at the redemption price
therein specified, and from and after such date (unless the City shall default in the payment of the
redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender
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of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the
Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption
date shall be payable as herein provided for payment of interest. Upon surrender for any partial
redemption of any Bond, there shall be prepared for the registered holder a new Bond or Bonds
of the same maturity in the amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon surrender
thereof for redemption, the principal shall, until paid, bear interest from the redemption date at
the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have
been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued.
Section 6. Execution; Authentication. The Bonds shall be executed on behalf of the
City with the manual or duly authorized facsimile signature of the Mayor and attested with the
manual or duly authorized facsimile signature of the City Clerk or duly authorized 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 officer whose signature shall appear on any Bond shall
cease to be such officer before the delivery of such Bond, such signature shall nevertheless be
valid and sufficient for all purposes, the same as if such officer had remained in office until
delivery.
All Bonds shall have thereon a certificate of authentication 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
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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 7. Regisb•ation of Bonds; Persons Treated as Owners. (a) General. The City
shall cause books (the "Bond Register ") for the registration and for the transfer of the Bonds as
provided in this Ordinance to be kept at the principal office of the Bond Registrar, which is
hereby constituted and appointed the registrar of the City. The City is authorized to prepare, and
the Bond Registrar 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 office of the Bond Registrar,
duly endorsed by, or accompanied by a written instrument or instruments of transfer in form
satisfactory to the Bond Registrar and duly executed by, the registered owner or his or her
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 principal 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 outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the
authorized principal amount of Bonds for such maturity less previous retirements.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period beginning at the close of business on the 15th day of the month next preceding any
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interest payment date on such Bond and ending at the opening of business on such interest
payment date, nor to transfer or exchange any Bond after notice calling such Bond for
redemption has been mailed, nor during a period of fifteen (15) days next preceding mailing of a
notice of redemption of any Bonds.
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 or her 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
except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond
surrendered for redemption.
(b) Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
described in Section 3 hereof. Upon initial issuance, the ownership of each such Bond shall be
registered in the Bond Register in the name of Cede & Co., or any successor thereto ("Cede "), as
nominee of The Depository Trust Company, New York, New York, and its successors and
assigns ("DTC"). All of the outstanding Bonds shall be registered in the Bond Register in the
name of Cede, as nominee of DTC, except as hereinafter provided. The Mayor and City Clerk,
the chief business official of the City and the Bond Registrar are each authorized to execute and
deliver, on behalf of the City, such letters to or agreements with DTC as shall be necessary to
effectuate such book-entry system (any such letter or agreement being referred to herein as the
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"Representation Letter "), which Representation Letter may provide for the payment of principal
of or interest on the Bonds by wire transfer.
With respect to Bonds registered in the Bond Register in the name of Cede, as nominee of
DTC, the City and the Bond Registrar shall have no responsibility or obligation to any broker-
dealer, bank or other financial institution for which DTC holds Bonds from time to time as
securities depository (each such broker-dealer, bank or other financial institution being referred
to herein as a "DTC Participant ") or to any person on behalf of whom such a DTC Participant
holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City
and the Bond Registrar shall have no responsibility or obligation with respect to (i) the accuracy
of the records of DTC, Cede or any DTC Participant with respect to any ownership interest in the
Bonds, (ii) the delivery to any DTC Participant or any other person, other than a registered owner
of a Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any
notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than
a registered owner of a Bond as shown in the Bond Register, of any amount with respect to the
principal of or interest on the Bonds. The City and the Bond Registrar may treat and consider the
person in whose name each Bond is registered in the Bond Register as the holder and absolute
owner of such Bond for the purpose of payment of principal and interest with respect to such
Bond, for the purpose of giving notices of redemption and other matters with respect to such
Bond, for the purpose of registering transfers with respect to such Bond, and for all other
purposes whatsoever. The Bond Registrar shall pay all principal of and interest on the Bonds
only to or upon the order of the respective registered owners of the Bonds, as shown in the Bond
Register, or their respective attorneys duly authorized in writing, and all such payments shall be
valid and effective to fully satisfy and discharge the City's obligations with respect to payment of
the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person
-16-
other than a registered owner of a Bond as shown in the Bond Register, shall receive a Bond
evidencing the obligation of the City to make payments of principal and interest with respect to
any Bond. Upon delivery by DTC to the Bond Registrar of written notice to the effect that DTC
has determined to substitute a new nominee in place of Cede, and subject to the provisions in
Section 3 hereof with respect to the payment of interest to the registered owners of Bonds at the
close of business on the 15th day of the month next preceding the applicable interest payment
date, the name "Cede" in this resolution shall refer to such new nominee of DTC.
In the event that (i) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among the
City, the Bond Registrar and DTC evidenced by the Representation Letter shall be ternlinated for
any reason or (iii} the City determines that it is in the best interests of the beneficial owners of
the Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC
Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer
be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC.
At that time, the City may determine that the Bonds shall be registered in the name of and
deposited with such other depository operating a universal book-entry system, as may be
acceptable to the City, or such depository's agent or designee, and, if the City does not select
such alternate universal book-entry system, then the Bonds may be registered in whatever name
or names registered owners of Bonds transferring or exchanging Bonds shall designate, in
accordance with the provisions of Section 7(a) hereof.
Notwithstanding any other provisions of this resolution to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to
principal of and interest on such Bond and all notices with respect to such Bond shall be made
and given, respectively, in the name provided in the Representation Letter.
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Section 8. Form of Bonds. The Bonds shall be in substantially the form hereinafter set
forth; provided, however, that if the text of the Bonds is to be printed in its entirety on the front
side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side
for Additional Provisions" shall be omitted and the text of paragraphs set forth for the reverse
side shall be inserted immediately after the first paragraph.
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[Form of Bond -Front Side]
REGISTERED REGISTERED
No. ~
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF FULTON
CITY OF CANTON
GENERAL OBLIGATION BOND
(ALTERNATE REVENUE SOURCE)
SERIES 2005
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate: % Date: December 1, 20_ Date: October 1, 2005 CUSIP:
.Registered Owner:
Principal Amount: Dollars
KNOW ALL PERSONS BY THESE PRESENTS that the City of Canton, Fulton County,
Illinois, a municipality and political subdivision of the State of Illinois (the "City "), hereby
acknowledges 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 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 Dated Date of this
Bond identified above or from the most recent interest payment date to which interest has been
paid or duly provided for at the Interest Rate per annum identified above, such interest to be
payable on December 1, 2006, and semiannually thereafter on June 1 and December 1 of each
year until the Principal Amount is paid or duly provided for. The Principal Amount of this Bond
is payable in lawful money of the United States of America upon presentation at the principal
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office of MidAmerica National Bank, Canton, Illinois, as paying agent and bond registrar (the
"Bond Regist~•a~• "). Payment of interest shall be made to the Registered Owner hereof as
appearing on the Bond Register of the City maintained by 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 Bond Registrar, payable upon presentation in lawful money of the United
States of America, 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.
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.
It is hereby certified and recited that all acts, conditions and things required to be done
precedent to and in the issuance of this Bond have been done and have happened and have been
performed in regular and due form of law; that the indebtedness of the City, including the issue
of Bonds of which this is one, does not exceed any limitation imposed by law; that provision has
been made for the collection of the Pledged Revenues, •the levy and collection of the Pledged
Taxes, and the segregation of all Pledged Moneys to pay the interest hereon as it falls due and
also to pay and discharge the principal hereof at maturity; and that the City hereby covenants and
agrees that it will properly account for said Pledged Moneys and will comply with all the
covenants of and maintain the funds and accounts as provided by the Ordinance.
For the prompt payment of this Bond, both principal and interest at maturity, the full
faith, credit and resources of the City are hereby irrevocably pledged.
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.
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IN WITNESS WHEREOF the City of Canton, Fulton County, Illinois, by its City Council,
has caused this Bond to be executed with the manual or duly authorized facsimile signature of its
Mayor and attested by the manual or duly authorized 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
ATTEST:
City Clerk
[SEAL]
Date of Authentication: ,
CERTIFICATE
OF
AUTHENTICATION
This Bond is one of the Bonds described
in the within-mentioned Ordinance and is one
of the General Obligation Bonds (Alternate
Revenue Source), Series 2005, of the City of
Canton, Fulton County, Illinois.
Bond Registrar and Paying Agent:
MidAmerica National Bank,
Canton, Illinois
MIDAMERICA NATIONAL BANK,
as Bond Registrar
By
Authorized Officer
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[Form of Bond -Reverse Side]
CITY OF CANTON
FULTON COUNTY, ILLINOIS
GENERAL OBLIGATION BOND
(ALTERNATE REVENUE SOURCE)
SERIES 2005
This bond and the bonds of the series of which it forms a part ("Bond " and "Bonds ",
respectively) are of an authorized issue of Bonds of like dated date and tenor except as to
maturity and rate of interest and are issued pursuant to the Local Government Debt Reform Act
of the State of Illinois, as amended (the `Act"). The Bonds are also issued pursuant to
Division 139 of Article 11 of the Illinois Municipal Code, as supplemented and amended (the
"Code "), for the purpose of paying the costs of improving the waterworks and sewerage system
of the City (the "System "). The Bonds are issued pursuant to a bond ordinance passed by the
City Council of the City (the "Corporate Authorities ") on the 4th day of October, 2005 (the
"Ordinance "), to which reference is hereby expressly made for further definitions and terms and
to all the provisions of which the Registered Owner by the acceptance of this Bond assents.
Under the Code and the Ordinance, the Revenues, as defined, from the operation of the
waterworks and sewerage system of the City (the "System ") shall be deposited into the
Waterworks and Sewerage Fund of the City which shall be used only and has been pledged for
paying Operation and Maintenance Expenses, paying the principal of and interest on all bonds of
the City that are payable by their terms from the revenues of the System, providing an adequate
depreciation fund, and in making all payments required to maintain the accounts established
under the Ordinance. The City may issue future waterworks and sewerage revenue bonds, which
-22-
bonds may have a prior lien on the Revenues, or additional alternate bonds on a parity with the
Bonds, in each case pursuant to the ternls of the Bond Ordinance.
The Bonds are payable from (i) (a) together with the City's outstanding IEPA Loan
Agreement and Series 2002 Bonds, moneys to the credit of the Alternate Bond and Interest
Subaccount within the Surplus Account of the Waterworks and Sewerage Fund, said Surplus
Account consisting of the funds remaining in the Waterworks and Sewerage Fund after the
required monthly deposits and credits have been made under the Ordinance or future revenue
bond ordinances to the various accounts of the Waterworks and Sewerage Fund and (b) such
other funds of the City as maybe necessary and on hand from time to time and lawfully available
for such purpose (the "Pledged Revenues "), and (ii) ad valorem taxes levied against all of the
taxable property in the City without limitation as to rate or amount (the "Pledged Taxes ") (the
Pledged Revenues and the Pledged Taxes being collectively called the "Pledged Moneys "), all in
accordance with the provisions of the Act and the Code.
This Bond does not and will not constitute an indebtedness of the City within the
meaning of any constitutional or statutory provision or limitation, unless the Pledged Taxes shall
be extended pursuant to the general obligation, full faith and credit promise supporting the
Bonds, in which case the amount of the Bonds then Outstanding shall be included in the
computation of indebtedness of the City for purposes of all statutory provisions or limitations
until such time as an audit of the City shall show that the Bonds shall have been paid from the
Pledged Revenues for a complete City fiscal year.
Any Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in the Ordinance. Upon surrender for
transfer or exchange of any Bond at the principal office of the Bond Registrar, duly endorsed by
or accompanied by a written instrument or instruments of transfer or exchange in form
-23-
satisfactory to the Bond Registrar and duly executed by the Registered Owner or an attorney for
such owner 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 or, in the case of an
exchange, the Registered Owner, a new fully registered Bond or Bonds of like tenor, of the same
maturity, bearing the same interest rate, of authorized denominations, for a like aggregate
principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the 15th day of the calendar month next preceding an
interest payment date on the Bonds to the opening of business on such interest payment date, nor
to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed,
nor during a period of fifteen (15) days next preceding mailing of a notice of redemption of any
Bonds.
The City and the Bond Registrar 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,
premium, if any, hereon and interest due hereon and for all other purposes; and neither the City
nor the Bond Registrar shall be affected by any notice to the contrary.
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ASSIGNMENT
FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto
(Name and Address of Assignee)
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 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.
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Section 9. Sale of the Bonds. The Bonds hereby authorized shall be executed as in this
Ordinance provided as soon after the passage hereof as may be, and thereupon be deposited with
the Treasurer of the City, and be by said Treasurer delivered to First Midstate Inc., Bloomington,
Illinois (the "Purchaser "), upon receipt of the purchase price therefor, the same being
$26,500,000, plus accrued interest to date of delivery; the contract for the sale of the Bonds
heretofore entered into is in all respects ratified, approved and confirmed, it being hereby found
and determined that the Bonds have been sold at such price and bear interest at such rates that
neither the true interest cost (yield) nor the net interest rate received upon such sale exceed the
maximum rate otherwise authorized by Illinois law and that the contract for the sale of the Bonds
is in the best interests of the City and that no person holding any office of the City, either by
election or appointment, is in any manner financially interested directly in his or her own name
or indirectly in the name of any other person, association, trust or corporation, in the contract for
the sale of the Bonds.
The use by the Purchaser of any Preliminary Official Statement and any final Official
Statement relating to the Bonds and before the Corporate Authorities at the time of the adoption
hereof is hereby ratified, approved and authorized; the execution and delivery of said final
Official Statement is hereby authorized; and the officers of the City are hereby authorized to take
any action as may be required on the part of the City to consummate the transactions
contemplated by the contract for the sale of the Bonds, this Ordinance, said Preliminary Official
Statement, said final Official Statement and the Bonds.
Section 10. Ti~eatment of Bonds As Debt. The Bonds shall be payable from the Pledged
Moneys and do not and shall not constitute an indebtedness of the City within the meaning of
any constitutional or statutory limitation, unless the Pledged Taxes shall be extended pursuant to
the general obligation, full faith and credit promise supporting the Bonds, as set forth in
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Section 14 hereof, in which case the amount of the Bonds then Outstanding shall be included in
the computation of indebtedness of the City for purposes of all statutory provisions or limitations
until such time as an audit of the City shall show that the Bonds have been paid from the Pledged
Revenues for a complete Fiscal Year in accordance with the Act.
Section 11. Continuation of Waterworks and Sewerage Fund and Accounts Thereof.
The 2001 Ordinance is hereby amended by superceding Sections 7 and 8 of the 2001 Ordinance
and replacing said Sections 7 and 8 with the following Sections 11 and 12, which provisions
shall apply to the. IEPA Loan Agreement as if they were originally included in the 2001
Ordinance.
Upon the issuance of any of the Bonds, the System shall continue to be operated on a
Fiscal Year basis. All of the Revenues shall be set aside as collected and be deposited in a
separate fund and in an account in a bank to be designated by the Corporate Authorities, which
fund is hereby created and is designated as the "Waterworks and Sewerage Fund" (the "Fund ")
of the City, which shall constitute a trust fund for the sole purpose of carrying out the covenants,
terms, and conditions of the 2001 Ordinance, the 2002 Ordinance, this Ordinance and any Future
Bond Ordinances, and shall be used only in paying Operation and Maintenance Expenses,
providing an adequate depreciation fund, paying the principal of and interest on all bonds of the
City which by their terms are payable from the revenues derived from the System, and providing
for the establishment of and expenditure from the respective accounts as hereinafter described.
Section 12. Flow of Funds. There shall be and there are hereby continued separate
accounts in the Waterworks and Sewerage Fund to be known as the "Waterworks Operation and
Maintenance Account," such other accounts as may be established under any Future Bond
Ordinances, the "Waterworks Depreciation and Contingencies Account" (the "Depreciation
Account "), and the "Surplus Account," to which there shall be credited on or before the first day
-27-
of each month by the financial officer of the City, without any further official action or direction,
in the order in which said accounts are hereinafter mentioned, all moneys held in the Fund, in
accordance with the following provisions:
(a) Operation and Maintenance Account:
There shall be credited to or retained in the Operation and Maintenance Account
an amount sufficient, when added to the amount then on deposit in said Account,
to establish or maintain a balance to an amount not less than the amount
considered necessary to pay Operation and Maintenance Expenses for the then
current month.
(b) Accounts Created Pursuant to Future Bond Ordinances:
Future Bond Ordinances may create additional accounts in the Fund for the
payment and security of waterworks and sewerage revenue bonds that hereafter
may be issued by the City. Amounts in the Fund shall be credited to and
transferred from said accounts in accordance with the terms of the Future Bond
Ordinances.
(c) Depreciation Account:
Beginning the month after the delivery of the Bonds, there shall be credited to the
Depreciation Account and held, in cash and investments, such sum as the City
Council may deem necessary in order to provide an adequate depreciation fund
for the System. In future bond ordinances, the City may covenant to make
specific monthly deposits to said Depreciation Account and to accumulate funds
therein.
Amounts to the credit of said Depreciation Account shall be used for (i) the
payment of the cost of extraordinary maintenance, necessary repairs and
replacements, or contingencies, the payment for which no other funds are
available, in order that the System may at all times be able to render efficient
service, (ii) for the purpose of acquiring or constructing improvements and
extensions to the System, and (iii) the payment of principal of or interest and
applicable premium on any Outstanding Bonds at any time when there are no
other funds available for that purpose in order to prevent a default. Future Bond
Ordinances may provide for additional deposits to said Depreciation Account and
additional uses and transfers of the funds on deposit in said Depreciation Account.
-28-
(d) Surplus Account:
All moneys remaining in the Fund, after crediting the required amounts to the
respective accounts hereinabove provided for, and after making up any deficiency
in said accounts, shall be credited to the Surplus Account. Funds in the Surplus
Account shall first be used to make up any subsequent deficiencies in any of said
accounts and then shall be deposited to a separate and segregated account hereby
created and designated the "Alternate Bond and Interest Subaccount of the
Surplus Account" (the "Alternate Bond and Interest Subaccount "), as follows:
A. There shall be paid into the Alternate Bond and Interest Subaccount in each
month after the required payments have been made into the Accounts above described, a
fractional amount of the interest becoming due on the next succeeding interest payment
date on all Outstanding Bonds and a fractional amount of the principal becoming due on
the next succeeding principal maturity date of all Outstanding Bonds until there shall
have been accumulated in the Alternate Bond and Interest Subaccount on or before the
month preceding such maturity date of interest or principal, an amount sufficient to pay
such principal or interest, or both, of all Outstanding Bonds.
B. In computing the fractional amount to be set aside each month in said
Alternate Bond and Interest Subaccount, the fraction shall be so computed that sufficient
funds will be set aside in said Subaccount and will be available for the prompt payment
of such principal of and interest on all Outstanding Bonds as the same will become due
and shall be not less than one-fifth of the interest becoming due on the next succeeding
interest payment date and not less than one-tenth of the principal becoming due on the
next succeeding principal payment date on all Outstanding Bonds until there is sufficient
money in said Subaccount to pay such principal or interest or both.
C. Credits to the Alternate Bond and Interest Subaccount may be suspended in
any Fiscal Year at such time as there shall be a sufficient sum, held in cash and
investments, in said Subaccount to meet principal and interest requirements in said
Subaccount for the balance of such Fiscal Year, but such credits shall be resumed at the
beginning of the next Fiscal Year.
D. All moneys in said Subaccount shall be used only for the purpose of paying
interest on and principal of Outstanding Bonds.
E. Any funds remaining in the Surplus Account after making the aforesaid
deposits to the credit of the Alternate Bond and Interest Subaccount, at the discretion of
the Corporate Authorities, shall be used, first, to make up any subsequent deficiencies in
any of the accounts hereinabove named; and then, for the remainder of all surplus
Revenues, at the discretion of the Corporate Authorities, for one or more of the following
purposes~without any priority among them:
1. For the purpose of constructing or acquiring repairs, replacements,
improvements or extensions to the System; or
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2. For making transfers to the Fund generally to be applied and treated
as Revenues when transferred; or
3. For the purpose of calling and redeeming Outstanding Bonds payable
from the System which are callable at the time; or
4. For the purpose of purchasing Outstanding Bonds payable from the
System; or
5. For the purpose of paying principal of and interest on any subordinate
bonds or obligations issued for the purpose of acquiring or constructing repairs,
replacements, improvements or extensions to the System; or
6. For any purpose enumerated in any Future Bond Ordinance; or
7. For any other lawful System purpose.
Money to the credit of the Fund may be invested pursuant to any authorization
granted to municipal corporations by Illinois statute or court decision.
Section 13. Account Excesses. Any amounts to the credit of the Accounts in excess of
the then current requirements therefor may be transferred at any time by the Corporate
Authorities to such other Account or Accounts of the Fund as it may in its sole discretion
designate.
Section 14. Pledged Taxes; Tax Levy. For the purpose of providing additional funds to
pay the principal of and interest on the Bonds, and as provided in Section 15 of the Debt Reform
Act, 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 in amounts sufficient for that purpose, and
there be and there hereby is levied upon all of the taxable property in the City the following
direct annual taxes (the "Pledged Taxes "):
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FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
2005 $ 2,602,525.00 for principal and interest up to
and including June 1, 2007
2006 $ 2,695,205.00 for principal and interest
2007 $ 2,258,630.00 for principal and interest
2008 $ 2,047,630.00 for principal and interest
2009 $ 2,239,330.00 for principal and interest
2010 $ 2,243,705.00 for principal and interest
2011 $ 2,244,830.00 for principal and interest
2012 $ 2,242,705.00 for principal and interest
2013 $ 2,242,205.00 for principal and interest
2014 $ 2,238,205.00 for principal and interest
2015 $ 2,242,735.00 for principal and interest
2016 $ 2,255,070.00 for principal and interest
2017 $ 2,241,625.00 for principal and interest
2018 $ 2,223,125.00 for principal and interest
2019 $ 2,206,000.00 for principal and interest
2020 $ 2,190,000.00 for principal and interest
2021 $ 2,272,375.00 for principal and interest
2022 $1,511,875.00 for principal and interest
Following any extension of Pledged Taxes, interest or principal coming due at any time when
there are insufficient funds on hand from the Pledged Taxes to pay the same shall be paid
promptly when due from current funds on hand in advance of the collection of the Pledged Taxes
herein levied; and when the Pledged Taxes shall have been collected, reimbursement shall be
made to said funds in the amount so advanced.
Section 1 S. Filing with County Clerk; Alter°nate Bond Fund. After this Ordinance
becomes effective, a copy hereof, certified by the City Clerk, shall be filed with the County
Clerk. The County Clerk shall in and for each of the years required ascertain the rate percent
required to produce the aggregate Pledged Taxes hereinbefore provided to be levied in each of
said years; and the 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 the County Clerk, or other appropriate officer or designee, shall remit the
Pledged Taxes for deposit to the credit of a special fund to be designated the "Series 2005
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Alternate Bond Fund" (the "Bond Fund "), and in said years the Pledged Taxes shall be levied
and collected by and for and on behalf of the City in like manner as taxes for general municipal
purposes of the City for said years are levied and collected, and in addition to and in excess of all
other taxes. The Pledged Taxes are hereby irrevocably pledged to and shall be used only for the
purpose of paying principal of and interest on the Bonds. The purpose of the Bond Fund is to
provide a fund to receive and disburse the proceeds of the Other Funds and to receive and
disburse Pledged Taxes for any of the Bonds. All payments made with respect to the Bonds
from the Net System Revenues shall be made directly from the Alternate Bond and Interest
Subaccount of the Fund. There are hereby created two accounts in the Bond Fund, designated
the "Other Funds Account" and the "General Account." All proceeds of the Other Funds as
required for the Bonds shall be deposited to the credit of the Other Funds Account, and all
Pledged Taxes shall be deposited to the credit of the General Account. The Bond Fund and its
respective accounts constitute a trust fund established for the purpose of carrying out the
covenants, terms and conditions imposed upon the City by this Ordinance. It is hereby expressly
provided that in the event there shall be moneys both to the credit of the Alternate Bond and
Interest Subaccount and the Bond Fund, the Bond Fund shall be fully depleted before moneys to
the credit of the Alternate Bond and Interest Subaccount shall be used to pay principal of and
interest on the Bonds.
Section 16. Abatement of Pledged Taxes. As provided in the Act, whenever the Pledged
Revenues shall have been determined by the City Council to provide in any calendar year an
amount sufficient to pay debt service of all outstanding Bonds for such year, the City Council, or
the City Treasurer acting with proper authority, shall, prior to the time the Pledged Taxes levied
in such calendar year are extended, direct the abatement of the Pledged Taxes, and proper
notification of such abatement shall be filed with the County Clerk in a timely manner to effect
-32-
such abatement. In any year the City may abate the Pledged Taxes before the Pledged Revenues
are on hand for the payment of the Bonds.
Section 17. Pledged Revenues; General Covenants. The City covenants and agrees
with the registered owners of the Bonds that, so long as any Bonds remain Outstanding:
A. The City hereby pledges the Pledged Revenues to the payment of the Bonds,
and the Corporate Authorities covenant and agree to provide for, collect and apply the
Pledged Revenues to the payment of the Bonds, all in accordance with Section 15 of the
Act.
B. The City will punctually pay or cause to be paid from the Alternate Bond
and Interest Subaccount and from the Bond Fund the principal of and the interest on the
Bonds in strict conformity with the terms of the Bonds and this Ordinance, and it will
faithfully observe and perform all of the conditions, covenants and requirements thereof
and hereof.
C. The City will pay and discharge, or cause to be paid and discharged, from
the Alternate Bond and Interest Subaccount and the Bond Fund any and all lawful claims
which, if unpaid, might become a lien or charge upon the Pledged Moneys, or any part
thereof, or upon any funds in the hands of the Bond Registrar, or which might impair the
security of the Bonds. Nothing herein contained shall require the City to make any such
payment so long as the City in good faith shall contest the validity of said claims.
D. The City will keep, or cause to be kept, proper books of record and accounts,
separate from all other records and accounts of the City, in which complete and correct
entries shall be made of all transactions relating to the Pledged Moneys, the Alternate
Bond and Interest Subaccount and the Bond Fund. Such books of record and accounts
shall at all times during business hours be subject to the inspection of the registered
owners of not less than ten per cent (10%) of the principal amount of the Outstanding
Bonds or their representatives authorized in writing.
E. The City will preserve and protect the security of the Bonds and the rights of
the registered owners of the Bonds and will warrant and defend their rights against all
claims and demands of all persons. From and after the sale and delivery of any of the
Bonds by the City, the Bonds shall be incontestable by the City.
F. The City will adopt, make, execute and deliver any and all such further
ordinances, resolutions, instruments and assurances as may be reasonably necessary or
proper to carry out the intention of, or to facilitate the performance of, this Ordinance,
and for the better assuring and confirming unto the registered owners of the Bonds of the
rights and benefits provided in this Ordinance.
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G. As long as any Bonds are Outstanding, the City will continue to deposit the
Pledged Revenues to the Alternate Bond and Interest Subaccount and, if applicable, the
Pledged Taxes to the Bond Fund. The City covenants and agrees with the purchasers of
the Bonds and with the registered owners thereof that so long as any 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 collect the Pledged Taxes and to collect
and to segregate the Pledged Moneys. The City and its officers will comply with all
present and future applicable laws in order to assure that the Pledged Taxes can be
extended and that the Pledged Revenues and the Pledged Taxes may be collected and
deposited to the Alternate Bond and Interest Subaccount and the Bond Fund,
respectively, as provided herein.
H. Once issued, the Bonds shall be and forever remain until paid or defeased
the general obligation of the City, for the payment of which its full faith and credit are
pledged, and shall be payable, in addition to the Pledged Revenues, from the levy of the
Pledged Taxes as provided in the Act.
I. The City will maintain the System in good repair and working order, will
operate the same efficiently and faithfully and will punctually perform all duties with
respect thereto required by the Constitution and laws of the State of Illinois and Federal
law.
J. The City will establish and maintain at all times reasonable fees, charges,
and rates for the use and service of the System and will provide for the collection thereof
and the segregation and application of the Revenues in the manner provided by this
Ordinance, sufficient at all times to pay Operation and Maintenance Expenses, to provide
an adequate depreciation fund, to pay the principal of and interest on all bonds of the City
which by their terms are payable from the revenues of the System, and to provide for the
creation and maintenance and funding of the respective accounts as provided in Section
12 of this Ordinance; it is hereby expressly provided that the pledge and establishment of
rates or charges for use of the System shall constitute a continuing obligation of the City
with respect to such establishment and a continuing appropriation of the amounts
received.
K. There shall be charged against all users of the System, including the City,
such rates and amounts for water and sewerage services as shall be adequate to meet the
requirements of this section. Charges for services rendered the City shall be made against
the City, and payment for the same shall be made monthly from the corporate funds into
the Fund as revenues derived from the operation of the System; provided, however, that
the City need not charge itself for such services if in the previous Fiscal Year Revenues
not including any payments made by the City shall have met the requirements of this
Ordinance.
L. Within six months following the close of each Fiscal Year, the City will
cause the books and accounts of the System to be audited by independent certified public
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accountants in accordance with appropriate audit standards. Said audit will be available
for inspection by the registered owners of any of the Bonds.
Section 18. Future Revenue Bonds, Additional Bonds and Subordinate Bonds. The City
reserves the right to issue without limit bonds payable solely and only from the Revenues, which
bonds may have a lien on the Revenues prior to the lien on the Revenues that secures the
Outstanding Bonds, provided that upon the issuance of such bonds, the City shall be able to
demonstrate that the requirements of the Act for the issuance of alternate bonds payable from the
Revenues shall have been met on such date for all Outstanding Bonds.
The City also reserves the right to issue Additional Bonds from time to time payable from
the Pledged Revenues, and any such Additional Bonds shall share ratably and equally in the
Pledged Revenues with the Bonds; provided, however, that no Additional Bonds shall be issued
except in accordance with the provisions of the Act as the Act is written at this time.
The City also reserves the right to issue revenue bonds from time to time payable from
the Revenues that are subordinate to the Bonds or Additional Bonds and are payable from the
money remaining in the Surplus Account created hereunder after making required deposits into
the Alternate Bond and Interest Subaccount.
Section 19. Provisions a Contract. The provisions of this Ordinance shall constitute a
contract between the City and the owners of the Outstanding Bonds and no changes, additions, or
alterations of any kind shall be made hereto, except as herein provided, so long as there are any
Outstanding Bonds.
Section 20. Use of Proceeds. The proceeds derived from the sale of the Bonds shall be
used as follows:
A. Accrued interest shall be credited to the Alternate Bond and Interest
Subaccount and applied to pay first interest due on the Bonds.
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B. The amount necessary of the proceeds of the Bonds shall be deposited into a
separate fund, hereby created, designated the "Expense Fund," to be used to pay expenses
of issuance of the Bonds. Disbursements from such fund shall be made from time to time
upon the direction of the City Treasurer. Any excess in said fund shall be deposited into
the Alternate Bond and Interest Subaccount after six months from the date of issuance of
the Bonds.
C. The remaining funds shall be set aside in a separate fund hereby created and
designated as the "Project Fund (2005)" (the "2005 Project Fund " or "Project Fund "),
which the City shall maintain as a separate and segregated account. Monies in said fund
shall be withdrawn from time to time as needed for the payment of costs of the Project
and paying the fees and expenses incidental thereto.
Funds on deposit in the 2005 Project Fund may be invested by the City Treasurer in any
lawful manner. All investment earnings in the 2005 Project Fund shall first be reserved and
transferred to such other account as and to the extent necessary to pay any "excess arbitrage
profits" or "penalty in lieu of rebate" under Section 148 of the Code to maintain the Tax-Exempt
status of the Bonds, and the remainder shall be retained in the 2005 Project Fund for costs of the
Project.
Within sixty (60) days after full depletion of the 2005 Project Fund, or if the Project has
been fully completed and paid for, the Treasurer shall certify to the Corporate Authorities the fact
of such depletion or the City engineer shall certify to such completion and payment, and upon
approval of such certification by the Corporate Authorities, funds (if any) which remain shall be
transferred to the hereinafter defined 148 Compliance Fund, and the Project Fund shall be closed.
Section 21. Non-Arbitrage and Tax-Exemption. The City hereby covenants that it will
not take any action, omit to take any action or permit the taking or omission of any action within
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its control (including, without limitation, making or permitting any use of the proceeds of the
Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be
an arbitrage bond or a private activity bond within the meaning of the Internal Revenue Code of
1986, as amended (the "Code "), or would otherwise cause the interest on the Bonds to be
included in the gross income of the recipients thereof for federal income tax purposes. The City
acknowledges that, in the event of an examination by the Internal Revenue Service of the
exemption from Federal income taxation for interest paid on the Bonds, under present rules, the
City is treated as the "taxpayer" in such examination and agrees that it will respond in a
commercially reasonable manner to any inquiries from the Internal Revenue Service in
connection with such an examination.
The City also agrees and covenants with the purchasers and holders of the Bonds from
time to time outstanding that, to the extent possible under Illinois law, it will comply with
whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax-
exempt status of the Bonds.
The Corporate Authorities hereby authorize the officials of the City responsible for
issuing the Bonds, the same being the Mayor of the City, the City Manager or the City Clerk or
City Treasurer who receives the taxes of the City, to make such further covenants and
certifications as may be necessary to assure that the use thereof will not cause the Bonds to be
arbitrage bonds and to assure that the interest on the Bonds will be exempt from federal income
taxation. In connection therewith, the City and the Corporate Authorities further agree:
(a) through their officers, to make such further specific covenants, representations as shall be
truthful, and assurances as may be necessary or advisable; (b) to consult with counsel approving
the Bonds and to comply with such advice as may be given; (c) to pay to the United States, as
necessary, such sums of money representing required rebates of excess arbitrage profits relating
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to the Bonds; (d) to file such forms, statements, and supporting documents as may be required
and in a timely manner; and (e) if deemed necessary or advisable by their officers, to employ and
pay fiscal agents, financial advisors, attorneys, and other persons to assist the City in such
compliance.
Section 22. Registered Form. The City recognizes that Section 149(a) of the Code
requires the Bonds to be issued and to remain in fully registered form in order that interest
thereon is exempt from federal income taxation 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 23. Bond Registrar Covenants. If requested by the Bond Registrar, the Mayor
and City Clerk are 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. Subject to modification by the express terms of any such agreement, such
duties shall include the following:
(a) to act as bond registrar, authenticating agent, paying 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 extent
permitted by law;
(c) to cancel and/or destroy Bonds which have been paid at maturity or
submitted for exchange or 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,
Outstanding Bonds and payments made with respect to interest on the Bonds.
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The City Clerk is hereby directed to file a certified copy of this Ordinance with the Bond
Registrar.
Section 24. Continuing Disclosure Undertaking. The Mayor or Treasurer of the City is
hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure
Undertaking (the "Continuing Disclosure Undertaking ") in substantially the same form as now
before the Corporate Authorities, or with such changes therein as the individual executing the
Continuing Disclosure Undertaking on behalf of the City shall approve, the official's execution
thereof to constitute conclusive evidence of the approval of such changes. When the Continuing
Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the
Continuing Disclosure Undertaking will be binding on the City and the officers, employees and
agents of the City, and the officers, employees and agents of the City are hereby authorized,
empowered and directed to do all such acts and things and to execute all such documents as may
be necessary to carry out and comply with the provisions of the Continuing Disclosure
Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole
remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of
the beneficial owner of any Bond to seek mandamus or specific performance by court order, to
cause the City to comply with its obligations under the Continuing Disclosure Undertaking.
Section 25. Insurance Provisions. The Commitment is hereby accepted and approved
and the Mayor of the City, the City Manager or the City Clerk or City Treasurer, or any of them,
are authorized to execute and deliver the Commitment in substantially the form attached hereto.
(a) XLCA as Third Party Beneficiary. XLCA is hereby recognized as being a
third-party beneficiary with the power to enforce any right, remedy or claim conferred,
given or granted under this Ordinance.
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(b) Subrogation. If principal and/or interest due on the Bonds shall be paid by
XLCA, the Bonds shall remain outstanding under this Ordinance for all purposes, and
shall not be deemed defeased or otherwise satisfied, or paid by the City, and the
assignment and pledge of all covenants, agreements and other obligations of the City to
the owners shall continue to exist and shall run to the benefit of XLCA, and XLCA shall
be subrogated to the rights of such owners.
(c) Payments under the Policy. If, on the third Business Day prior to the related
scheduled interest payment date or principal payment date ("Payment Date "), there is not
on deposit with the City under the Ordinance, after making all transfers and deposits
required under the Ordinance, moneys sufficient to pay the principal of, and interest on,
Insured Bonds due on such Payment Date, the City shall give notice to XLCA and to its
designated agent (if any) (the "Insurer's Fiscal Agent "), by telephone or telecopy, of the
amount of such deficiency by 10:00 a.m., New York City time, on such Business Day. If,
on the Business Day prior to the related Payment Date, there is not on deposit with the
Bond Registrar moneys sufficient to pay the principal of, and interest on, the Insured
Bonds due on such Payment Date, the Bond Registrar shall make a claim under the
Insurance Policy and given notice to XLCA and XLCA's Fiscal Agent (if any) by
telephone of the amount of any deficiency in the amount available to pay principal and
interest, and the allocation of such deficiency between the amount required to pay interest
on the Insured Bonds and the amount required to pay principal of the Insured Bonds,
confirmed in writing to the related Insurer and XLCA's Fiscal Agent by 10:00 a.m., New
York City time, on such Business Day, by delivering the Notice of Nonpayment and
Certificate.
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For the purposes of the preceding paragraph, `Notice" means telephonic or
telecopied notice, subsequently confirmed in a signed writing, or written notice by
registered or certified mail, from the Bond Registrar to XLCA, which notice shall specify
(a) the name of the entity making the claim, (b) the policy number, (c) the claimed
amount and (d) the date such claimed amount will become Due for Payment.
"Nonpayment" means the failure of the City to have provided sufficient funds to the
Bond Registrar for payment in full of all principal of, and interest on, the XLCA Insured
Bonds that are Due for Payment. "Due for Payment, "when referring to the principal of
Insured Bonds, means when the stated maturity date or mandatory redemption date for
the application of a required sinking fund installment has been reached and does not refer
to any earlier date on which payment is due by reason of call for redemption (other than
by application of required sinking fund installments, acceleration or other advancement of
maturity, unless XLCA shall elect, in its sole discretion, to pay such principal due upon
such acceleration), and when referred to interest on Bonds, means when the stated date
for payment of interest has been reach. "Certificate" means a certificate in form and
substance satisfactory to XLCA as to the Bond Registrar's right to receive payment under
the Insurance Policy.
The Bond Registrar shall designate any portion of payment of principal on
Insured Bonds paid by XLCA at maturity on its books as a reduction in the principal
amount of Insured Bonds registered to the then current Bondholder, whether DTC or its
nominee or otherwise, and shall issue a replacement Insured Bond to XLCA, registered in
the name of XLCA, as the case may be, in a principal amount equal to the amount of
principal so paid (without regard to authorized denominations); provided that the Bond
Registrar's failure to so designate any payment or issue any replacement Insured Bond
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shall have no effect on the amount of principal or interest payable by the City on any
Insured Bond or the subrogation rights of XLCA.
The Bond Registrar shall keep a complete and accurate record of all funds
deposited by XLCA into the Policy Payments Account (as hereinafter defined) and the
allocation of such funds to payment of interest on and principal paid with respect to any
insured Bond. XLCA shall have the right to inspect such records at reasonable times
upon reasonable notice to the Bond Registrar.
Upon payment of a claim under the Insurance Policy, the Bond Registrar shall
establish a separate special purpose trust account for the benefit of holders of Insured
Bonds referred to herein as the "Policy Payments Account" and over which the Bond
Registrar shall have exclusive control and sole right of withdrawal. The Bond Registrar
shall receive any amount paid under Insurance Policy in trust on behalf of holders of
Insured Bonds and shall deposit any such amount in the Policy Payments Account and
distribute such amount only for purposes of making the payments for which a claim was
made. Such amounts shall be disbursed by the Bond Registrar to holders of Insured
.Bonds in the same manner as principal and interest payments are to be made with respect
to the Insured Bonds under the sections hereof regarding payment of Insured Bonds. It
shall not be necessary for such payments to be made by checks or wire transfers separate
from the check or wire transfer used to pay debt service with other funds available to
make such payments.
Funds held in the Policy Payments Account shall not be invested by the Bond
Registrar and may not be applied to satisfy any costs, expenses or liabilities of the Bond
Registrar.
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Any funds remaining in the Policy Payments Account following an Insured Bond
payment date shall promptly be remitted to XLCA.
Defined terms used in this Section shall have the meanings ascribed to them in the Bond
Ordinance and the Commitment.
Section 26. Severability. If any section, paragraph, clause or provision of this
Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision
shall not affect any of the other provisions of this Ordinance.
Section 27. Repealer and Superceder. All ordinances, resolutions or orders, or parts
thereof, in conflict with the provisions of this Ordinance are to the extent of such conflict hereby
repealed. The 2001 Ordinance is hereby amended so that Sections 7 and 8 of the 2001 Ordinance
are hereby superceded and replaced with the provisions of Sections 11 and 12 of this Ordinance.
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Alderman Larry Sarf f moved and Alderman Rick Reed
seconded the motion that said ordinance as presented be adopted.
After a full and complete discussion thereof, including a public recital of the nature of the
matter being considered and such other information as would inform the public of the business
being conducted, the Mayor directed that the roll be called for a vote upon the motion to adopt
the ordinance.
Upon the roll being called, the following Aldermen voted
AYE: ,jim Nart-fnrrl Tna R~ard,~ I ,~~~S~rft=~ T.PR ~r_1 ~ Ri rk RParl
Eric Schenck.
NAY:
ABSENT: ~;r ~ ~ ~PGt'
Whereupon the Mayor declared the motion carried and the ordinance adopted, and
henceforth did approve and sign the same in open meeting and did direct the City Clerk to record
the same in full in the records of the City Council of the City.
Other business not pertinent to the adoption of said ordinance was duly transacted at said
meeting.
Upon motion duly made and seconded, the meeting was adjourned.
City Clerk
STATE OF ILLINOIS )
SS
COUNTY OF FULTON )
CERTIFICATION OF ORDINANCE AND MINUTES
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 officer I am the keeper of
the books, records, files, and journal of proceedings of the City and of the City Council (the
"Coy porate Authorities ") thereof.
I do further certify that the foregoing constitutes a full, true and complete transcript of the
minutes of the legally convened meeting of the Corporate Authorities held on the 4th day of
October, 2005, insofar as same relates to the adoption of an ordinance numbered 1847 and
entitled:
AN ORDINANCE authorizing and providing for the -issue of
$26,430,000 General Obligation Bonds (Alternate Revenue
Source), Series 2005, of the City of Canton, .Fulton County,
Illinois, for the purpose of improving the City's waterworks and
sewerage system, prescribing the details of said bonds, and
providing for the imposition of taxes to pay the same, and for the
collection, segregation and application of the waterworks and
sewerage system revenues to pay 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 Corporate Authorities 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 of the news media requesting such notice of said
meeting was duly given to all of the news media requesting such notice; that an agenda for said
meeting was posted at the location where said meeting was held and at the principal office of the
Corporate Authorities at least 96 hours in advance of the holding of said meeting, that said
meeting was called and held in strict accordance with the provisions of the Open Meetings Act of
the State of Illinois, as amended, the Illinois Municipal Code, as amended, and the Local
Government Debt Reform Act of the State of Illinois, as amended; and that the Corporate
Authorities have complied with all of the applicable provisions of said Act and their procedural
rules in the adoption of said ordinance.
IN WITNESS WHEREOF, I have hereunto affixed my official signature and the seal of the
City this 4th day of October, 2005.
[SEAL]
City Clerk
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ADOPTED on the 4th day of October, 2005.
AYE: Aldermen Hartford, Berardi, Siff, Carl, Reed, Schenck,
NAY: Al ~~n NLad.e
ABSENT: Alderman West.
Approved the 4th day of October, 2005
Mayor
RECORDED in the City Records on the 4th day of October, 2005.
ATTEST:
City Clerk
[SEAL]
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