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S3-94 (2)
ORDINANCE NUMBER S3-94 AN ORDINANCE providing for the issuance of $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois (the "City") has a population in excess of 25,000 as determined by the last official census, and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the City is a home rule unit and may exercise any power or perform any function pertaining to its government and affairs including, but not limited to, the power to tax and to incur debt; and WHEREAS, pursuant to the provisions of said Section 6, the City has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within forty (40) years from the time it is incurred without prior referendum approval; and WHEREAS, the City Council does hereby determine that in light of the current financial condition of the City it is advisable and in the best interests of the City to borrow $3,000,000 at this time and, in evidence of such borrowing, issue its full faith and credit Notes in the principal amount of$3,000,000; Now THEREFORE Be It Ordained by the City Council of the City of Elgin, Kane and Cook Counties, Illinois, in the exercise of its home rule powers, 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: "City" means the City of Elgin, Kane and Cook Counties, Illinois. "City Council" means the City Council of the City. "Code" means the Internal Revenue Code of 1986. "Note" or "Notes" means one or more, as applicable, of the $3,000,000 General Obligation Notes, Series 1994A, authorized to be issued by this Ordinance. "Note Register" means the books of the City kept by the Note Registrar to evidence the registration and transfer of the Notes. "Note Registrar" means the Treasurer of the City or a successor thereto or a successor designated as Note Registrar hereunder. "Ordinance" means this Ordinance, number s3-94 , and passed by the City Council on the 23rd day of February, 1994. "Paying Agent" means the Treasurer of the City, or a successor thereto or a successor designated as Paying Agent hereunder. "Tax-exempt" means, with respect to the Notes, the status of interest paid and received thereon as not includible in the gross income of the owners thereof under the Code 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, in computing the environmental tax imposed on certain corporations and in computing the "branch profits tax" imposed on certain foreign corporations. Section 2. Incorporation of Preambles. The City Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Determination To Issue Notes. It is necessary and in the best interests of the City to pay the current operating expenses of the City and to pay all related costs and expenses incidental thereto, and to borrow money and issue the Notes for such purposes. It is hereby found and determined that such borrowing of money is necessary for the welfare -2- of the government and affairs of the City, is for a proper public purpose or purposes and is in the public interest, and these findings and determinations shall be deemed conclusive. Section 4. Note Details. For the purposes set forth above and to pay all related costs and expenses incidental thereto, there shall be issued and sold the Notes in the principal amount of $3,000,000. The Notes shall each be designated "General Obligation Note, Series 1994A"; be dated the date of issuance; and shall also bear the date of authentication thereof. The Notes shall be in fully registered form, shall be in denominations of $1,000,000 or integral multiples thereof, shall be numbered consecutively in such fashion as shall be determined by the Note Registrar, and shall become due and payable on November 1, 1994 (being subject to the right of prior redemption hereinafter set forth) and bearing interest at the rate of 2.73 percent per annum. The Notes shall bear interest from their dated date as herein provided, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable at maturity. Interest on each Note shall be paid by check or draft of the Paying Agent, payable upon presentation thereof in lawful money of the United States of America, to the person in whose name such Note is registered at the close of business on the 1 st day of the month next preceding the interest payment date and shall be 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 Note Registrar. The principal of the Notes shall be payable in lawful money of the United States of America upon presentation thereof at the office of the Paying Agent. Section S. Execution;Authentication. The Notes shall be executed on behalf of the City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile sigrinure of its City Clerk, as they may determine, and shall have impressed or -3- imprinted thereon the corporate seal or facsimile thereof of the City. In case any such officer whose signature shall appear on any Note shall cease to be such officer before the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. All Notes shall have thereon a certificate of authentication, substantially in the form hereinafter set forth, duly executed by the Note Registrar as authenticating agent of the City and showing the date of authentication. No Note 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 Note Registrar by manual signature, and such certificate of authentication upon any such Note shall be conclusive evidence that such Note has been authenticated and delivered under this Ordinance. The certificate of authentication on any Note shall be deemed to have been executed by it if signed by an authorized officer of the Note Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Notes issued hereunder. Section 6. Registration of Notes;Persons Treated as Owners;Redemption. A. Registration of Notes . The City shall cause the Note Register to be kept at the office of the Note Registrar in the City; and the same is hereby constituted and appointed the registrar of the City for the Notes. The City is authorized to prepare, and the Note Registrar or such other agent as the City may designate shall keep custody of, multiple Note blanks executed by the City for use in the transfer and exchange of Notes. Any fully registered Note or Notes may be exchanged upon presentation at the office of the Note Registrar, duly endorsed by, or accompanied by a written instrument or instruments authorizing such exchange in form satisfactory to the Note Registrar and duly executed by, the register-.d owner or his attorney duly authorized in writing, for a like -4- aggregate principal amount of Note or Notes of the same maturity, of other authorized denominations and of the same interest rate. Upon surrender for transfer of any Note at the office of the Note Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Note Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, the City shall execute and the Note Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Note or Notes of the same maturity, of authorized denominations, for a like aggregate principal amount and interest rate. The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1 st day of the month next preceding an interest payment date .to such interest payment date or after the giving of notice of redemption as provided herein. The execution by the City of any fully registered Note shall constitute full and due authorization of such Note, and the Note Registrar shall thereby be authorized to authenticate, date and deliver such Note; provided, however, the principal amount of Notes of each maturity authenticated by the Note Registrar shall not at any one time exceed the authorized principal amount of Notes for such maturity less the amount of such Notes which have been paid. The person in whose name any Note 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 Note shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Note to the extent of the sum or sums so paid. -5- No service charge shall be made for any such transfer or exchange of Notes, but the City or the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such transfer or exchange of Notes. B. Option Redemption. The Notes are redeemable prior to maturity at the option of the City, in whole or in part, on any date on or after October 1, 1994 and if less than all of the outstanding Notes are to be redeemed they shall be called in any order designated by the City and by lot within the maturity, the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. Notice of the call for any such redemption shall be given by the Note Registrar on behalf of the City, by mailing the redemption notice by first class mail at least 5 days prior to the date fixed for redemption to the registered owner of the Note at the address shown on the Note Registrar. Notice of such redemption having been properly given the Note or portion of Notes redeemed shall, on the redemption date, become due and payable at the redemption price and from after such date (unless the City shall default in the payment of the redemption price) such Note or portions of Notes shall cease to bear interest. Notice of any such redemption may be waived in writing by the registered owner of a Note entitled to receive such notice, either before or after the event. Section 7. Form of Note. The Notes shall be in substantially the form hereinafter set forth; provided, however, that if the text of the Note is to be printed in its entirety on the front side of the Note, then paragraph [2] and the legend "See Reverse Side for Additional Provisions" shall be omitted and paragraphs [6] through [9] shall be inserted immediately after paragraph [1]: -6- [Form of Note - Front Side] REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE, SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: % Date: November 1, 1994 Date: , 1994 Registered Owner: Principal Amount: [1] KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable, at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City, as paying agent (the "t'aying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of -7- the City maintained by the City Treasurer of the City (the "Note Registrar"), at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent, 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 Note Registrar. [2] Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. [3] It is hereby certified and recited that all conditions, acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done, happened and been performed in regular and due form and time as required by law and; that the indebtedness of the City, represented by the Notes, and including all other indebtedness of the City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other lawful limitation. [4] This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. -8- [51 IN WITNESS WHEREOF the City of Elgin, Kane and Cook Counties, Illinois, by its City Council, has caused this Note to be executed by 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, City of Elgin Kane and Cook Counties, Illinois Attest: City Clerk, City of Elgin Kane and Cook Counties, Illinois (SEAT.) Date of Authentication: , CERTIFICATE OF Note Registrar and Paying Agent: AUTHENTICATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. CITY TREASURER as Note Registrar By Authorized Signer -9- [Form of Note - Reverse Side] City of Elgin, Kane and Cook Counties, Illinois General Obligation Note Series 1994A [6] This Note is one of a series of Notes (the "Notes") in the aggregate principal amount of$3,000,000 issued by the City for the purpose of meeting the working cash needs of the City and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Notes (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, and with the Ordinance, which has been duly passed by the City Council and published, in all respects as by law required. This Note and the other Notes of such series are redeemable prior to maturity at the option of the City, in whole or in part on October 1, 1994 and on any date thereafter and if less than all of the outstanding Notes are to be redeemed, they shall be called in any order designated by the City, the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. [7] The Notes are issued in fully registered form in the denominations of $1,000,000 or authorized integral multiples thereof. This Note may be exchanged upon presentation and surrender for cancellation hereof at the office of the Note Registrar, but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, for a like aggregate principal amount of Notes of the same maturity and interest rate of other authorized denominations. This Note is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the office of the Note Registrar in the but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon presentation and surrender for cancellation of this Note. Upon such transfer a new Note or Notes of authorized denomination(s) of the same maturity and interest rate and for the same aggregate principal amount will be issued to the transferee in exchange therefor. [8] The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1st day of the month next preceding an interest payment date to such interest payment date or after the giving of notice of redemption of a Note. [9] The City, the Note Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City, the Note Registrar and the Paying Agent shall not be affected by any notice to the contrary. -10- ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint , , as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. Section 8. Sale of Notes. The Notes shall be executed as in this Ordinance provided as soon after the passage hereof as may be, shall be deposited with the City Treasurer, and shall be by the Treasurer delivered to the purchaser thereof, namely, Old Kent Bank-Illinois, upon payment of the purchase price agreed upon, the same being $ 3,000, 176 plus accrued interest to date of delivery. The contract for the sale of the Notes to the purchaser is hereby in all respects ratified, approved and confirmed, it being hereby declared that no person holding any office of the City, either by election or appointment, is in any manner interested, either directly or indirectly, in his own name or the name of any other person, association, trust or corporation, in such contract. Section 9. Creation of Funds and Appropriations. The proceeds derived from the sale of the Notes shall be used as follows: -11- } A. Accrued interest and premium, if any, on the Notes shall be and is hereby appropriated for the purpose of paying the first interest due on the Notes and to such end is hereby ordered to be deposited into the "General Obligation Notes, Series 1994A, Note Fund" (the "Note Fund"), hereby created, which shall be the fund for the payment of principal of and interest on the Notes. Interest received from investments on deposit in the Note Fund shall be retained therein as a credit against future deposits or transferred to such other fund as the City Council may from time to time determine. B. The amount of $ 5,000.00 from the proceeds of the Notes shall be set aside in a separate fund, hereby created, and designated as the "Expense Fund." Money in said Fund shall be used to pay all costs and expenses incidental to the issuance of the Notes. C. The balance of the proceeds of the sale of the Notes shall be used to pay the operating expenses of the City as they come due. Section 10. Tax-Exemption and Non-Arbitrage Covenant. The City covenants that the amount of the Notes will not exceed the maximum cumulative cash flow deficit in the general fund for the term during which the Notes will be outstanding; and the City will take no action with respect to the proceeds of the Notes which would result in making the interest payable on the Notes subject to federal income taxes by reason of the Notes being classified as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986 (the "Code"), or rulings or regulations promulgated thereunder. The City also agrees and covenants with the purchasers and holders of the Notes 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 Notes and affects the tax-exempt status of the Notes. Without limiting the generality of the foregoing, the City agrees: (a) through its officers, to make such further specific covenants, representations and assurances as may be necessary or advisable; (b) to comply with all representations, covenants and assurances contained in a certification regarding tax exemption to be prepared by counsel approving the Notes; (c) to consult with such counsel and to comply with such advice as may be given; (d) to pay to the United States, as necessary, such sums of money -12- representing required rebates of excess arbitrage profits relating to the Notes; (e) to file such forms, statements and supporting documents as may be required and in a timely manner; and (f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the City in such compliance. Section 11. Designation as Qualified Tax-Exempt Obligations. The City hereby covenants that the City and all subordinate entities thereof will not issue any obligations of any kind or for any purpose in excess of the total aggregate amount of $10,000,000 during the calendar year of issuance of the Notes, and the City hereby designates the Notes as obligations being issued for the purposes of meeting the requirements of Section 265(b)(3) of the Code regarding qualified tax-exempt obligations. Section 18. Publication of Ordinance. That a full, true and complete copy of this ordinance be published in pamphlet form within ten days after passage. I -13- I Section. 12. Superseder and Effective Date. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this Ordinance shall be in full force and effect immediately upon its passage, approval and publication. AYES: rouncilmembers Fox. Gilliam Schock Walters , and Yaarman _ NAYS: NQr}e ABSENT: Mayor VanDeVoorde and Councilmember Popple ADOPTED: February 23, 1994 APPROVED: February 23 , 1994 I Mayor Pro Tem, City of Elgin Kane and Cook Counties, Illinois Recorded In City Records: February 2 4 , 1994. Published in pamphlet form by authority of the City Council on Feb. 24 , 1994. Attest: City Clerk, City of Elgin Kane and Cook Counties, Illinois -14- -221 �l.� M Old KentBank-Chicago INVESTMENT DEPARTMENT 2 710 Sears Tower (312) 876-4165 Chicago,Illinois 60606-6396 N0. 2564 ❑ PAYER ❑ WHERE PAYABLE ❑ DESCRIPTION DATE DEL DUE DATE PROTEST AMOUNT 31111 CITY OF ELGI11 991779AAI 1111/1994 CAAiED 10/7/94 09/30/94 10/7/94 NO W,1-)4-',,;5�ak-,.j PLEASE WIRE !JOKEY ATTIN CITFT F. WIERCIAL OLD K N',rBK PLEASE WIRE FUNDS THRU FEDERAL RESERVE Cl1ICAG0 BANK TO: 0710-0221,-5 OLD KENT CHGO SENT TO: C 1TY OF ELGIN ATTN: THANK YOU ATTN: MR. B.0 SHI'RLEf 150 DEXTER COURT ❑ WILL CALL ON MATURITY DATE AS TO ELGIN, ILLINOIS 60120-5555 DISPOSITION OF FUNDS REC'D FROM: "::::*000000•09M9_0OM0:00M* 0:: 09OUNN�•r••0•9N090 THANK YOU (312) 876 4734 ACKNOWLEDGEMENT i OLD ANT Old KentBank-Chicago INVESTMENT DEPARTMENT 2 10 Sears Tower (312) 876-4165 � Chicago,Illinois 60606-6396 No. 2564 ❑ PAYER ❑ WHERE PAYABLE ❑ DESCRIPTION DATE DEL DUE DATE PROTEST AMOUNT 3111i'1 CITY OF ELGIN 991779AAS 11/1/1994 CA&LED 10/7/94 09/ 0/94 10/7/94 NO 3045,500.00 PLEASE WIRE :11ONEY ATTIN CHET F. WIERCIA€ OLY KENTBK PLEASE WIRE FUNDS THRU FEDERAL RESERVE CHICAGO BANK TO:-- OLD KENT CHGO SENT TO: CITY OF ELGIN ATTN: THANK YOU ATTN: MR. B.0 SHIRLEY 150 DEXTER COURT ❑ WILL CALL ON MATURITY DATE AS TO ELGIN, ILLINOIS 60120-5555 DISPOSITION OF FUNDS REC'D FROM: ����•�����•�•���������������UU W666666666M0 0f••0*00o (3efffewov12) 8764734 ����•_���: •�����i����������i�ZtS��=. �t=�.�� THANK YOU COLLECTION RECORD REGISTERED REGISTERED NO. 1 $1,000,000 UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE,SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: 2.73% Date: November 1, 1994 Date: March 17, 1994 REGISTERED OWNER: OLD KENT BANK PRINCIPAL AMOUNT: ONE MILLION DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin,Kane and Cook Counties, Illinois,a municipality, home rule unit 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for,except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable,at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City,as paying agent(the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the City Treasurer of the City (the "Note Registrar"),at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent,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 Note Registrar. Reference is hereby made to the further provisions of this Note 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 conditions,acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done,happened and been performed in regular and due form and time as required by law and;that the indebtedness of the City,represented by the Notes, and including all other indebtedness of the City,howsoever evidenced or incurred,does not exceed any constitutional or statutory or other lawful limitation. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. IN WITNESS WHEREOF the City of Elgin,Kane and Cook Counties,Illinois,by its City Council,has caused this Note to be executed by 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"impressed or reproduced hereon,all as appearing hereon and as of the Dated Date identified above. Mayor,City of Elgin Kane and Cook Counties,Illinois Attes City Clerk,City of Elgin Kane and Cook Counties,Illinois (SEAL) Date of Authentication: ,1 r /?_,JIV CERTIFICATE OF Note Registrar and Paying Agent: AUTHENTICATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties,Illinois. C SURER as to tray By Authorized Signer 233733 01.02 2010734/HER:3/8/94 City of Elgin,Kane and Cook Counties, Illinois General Obligation Note Series 1994A This Note is a general obligation of the City and is one of a series of Notes(the "Notes")in the aggregate principal amount of$3,000,000 issued by the City for the purpose of meeting the working cash needs of the City and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Notes (the "Ordinance"),pursuant to and in all respects in compliance with the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, and with the Ordinance, which has been duly passed by the City Council and published,in all respects as by law required. This Note and the other Notes of such series are redeemable prior to maturity at the option of the City,in whole or in part on October 1, 1994 and on any date thereafter and if less than all of the outstanding Notes are to be redeemed,they shall be called in any order designated by the City,the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. The Notes are issued in fully registered form in the denominations of$1,000,000 or authorized integral multiples thereof. This Note may be exchanged upon presentation and surrender for cancellation hereof at the office of the Note Registrar,but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, for a like aggregate principal amount of Notes of the same maturity and interest rate of other authorized denominations. This Note is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the office of the Note Registrar in the but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon presentation and surrender for cancellation of this Note. Upon such transfer a new Note or Notes of authorized denomination(s)of the same maturity and interest rate and for the same aggregate principal amount will be issued to the transferee in exchange therefor. The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1st day of the month next preceding an interest payment date to such interest payment date or after the giving of notice of redemption of a Note. The City,the Note Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City,the Note Registrar and the Paying Agent shall not be affected by any notice to the contrary. ASSIGNMENT FOR VALUE RECEIVED,the undersigned sells,assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint ,as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Note in every particular,without alteration or enlargement or any change whatever. REGISTERED REGISTERED NO.2 $1,000,000 UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE,SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: 2.73% Date: November 1, 1994 Date: March 17, 1994 REGISTERED OWNER: OLD KENT BANK PRINCIPAL AMOUNT: ONE MILLION DOI-LARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin,Kane and Cook Counties, Illinois,a municipality, home rule unit 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for,except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable,at the Interest Rate per annurn identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City,as paying agent(the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the City Treasurer of the City (the "Note Registrar"),at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent,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 Note Registrar. Reference is hereby made to the further provisions of this Note 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 conditions,acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done,happened and been performed in regular and due form and time as required by law and;that the indebtedness of the City,represented by the Notes, and including all other indebtedness of the City,howsoever evidenced or incurred,does not exceed any constitutional or statutory or other lawful limitation. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. IN WITNESS WHEREOF the City of Elgin,Kane and Cook Counties,Illinois,by its City Council,has caused this Note to be executed by 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 pressed or r oduced hereon,all as appearing hereon and as of the Dated Date identified above. Mayor,City of Elgin Kane and Cook Counties,Illinois Attest: City Clerk,City of Elgin Kane and Cook Counties,Illinois (SEAL) Date of Authentication: l i i / CERTIFICATE OF Note Registrar and Paying Agent: AU17HENTICATTON City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties,Illinois. CITY TREASURER as Note Registrar By Authorized Signer City of Elgin,Kane and Cook Counties,Illinois General Obligation Note Series 1994A This Note is a general obligation of the City and is one of a series of Notes(the "Notes")in the aggregate principal amount of$3,000,000 issued by the City for the purpose of meeting the working cash needs of the City and of paying expenses incidental thereto,all as described and defined in the ordinance authorizing the Notes (the "Ordinance"),pursuant to and in all respects in compliance with the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, and with the Ordinance, which has been duly passed by the City Council and published,in all respects as by law required. This Note and the other Notes of such series are redeemable prior to maturity at the option of the City,in whole or in part on October 1, 1994 and on any date thereafter and if less than all of the outstanding Notes are to be redeemed,they shall be called in any order designated by the City,the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. The Notes are issued in fully registered form in the denominations of$1,000,000 or authorized integral multiples thereof. This Note may be exchanged upon presentation and surrender for cancellation hereof at the office of the Note Registrar,but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, for a like aggregate principal amount of Notes of the same maturity and interest rate of other authorized denominations. This Note is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the office of the Note Registrar in the but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon presentation and surrender for cancellation of this Note. Upon such transfer a new Note or Notes of authorized denomination(s)of the same maturity and interest rate and for the same aggregate principal amount will be issued to the transferee in exchange therefor. The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1st day of the month next preceding an interest payment date to such interest payment date or after the giving of notice of redemption of a Note. The City,the Note Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City,the Note Registrar and the Paying Agent shall not be affected by any notice to the contrary. ASSIGNMFNf FOR VALUE RECEIVED,the undersigned sells,assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint ,as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Note in every particular,without alteration or enlargement or any change whatever. REGISTERED REGISTERED NO.3 $1,000,000 UNITED STATES OF AMERICA STATE OF IILINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE,SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: 2.73% Date: November 1, 1994 Date: March 17, 1994 REGISTERED OWNER OLD KENT BANK PRINCIPAL AMOUNT`. ONE MILLION DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, Illinois,a municipality, home rule unit 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for,except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable,at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City,as paying agent(the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the City Treasurer of the City (the "Note Registrar"),at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent,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 Note Registrar. Reference is hereby made to the further provisions of this Note 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 conditions,acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done,happened and been performed in regular and due form and time as required by law and;that the indebtedness of the City,represented by the Notes, and including all other indebtedness of the City,howsoever evidenced or incurred,does not exceed any constitutional or statutory or other lawful limitation. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. IN WITNESS WHEREOF the City of Elgin,Kane and Cook Counties,Illinois,by its City Council,has caused this Note to be executed by 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 mpressed or reproduced hereon all as appearing hereon and as of the Dated Date identified above, Mayor,City of Elgin Attest: Kane and Cook Counties,Illinois City Clerk,City of Elgin Kane and Cook Counties,Illinois (SEAL) Date of Authentication: ( 7 CERTIFICATE OF Note Registrar and Paying Agent: AUTHENTICATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties,Illinois. CITY SURER as Not R 'stray By a4~ C Authorized Signer � J City of Elgin,Kane and Cook Counties,Illinois General Obligation Note Series 1994A This Note is a general obligation of the City and is one of a series of Notes(the "Notes")in the aggregate principal amount of$3,000,000 issued by the City for the purpose of meeting the working cash needs of the City and of paying expenses incidental thereto,all as described and defined in the ordinance authorizing the Notes (the "Ordinance"),pursuant to and in all respects in compliance with the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, and with the Ordinance, which has been duly passed by the City Council and published,in all respects as by law required. This Note and the other Notes of such series are redeemable prior to maturity at the option of the City,in whole or in part on October 1, 1994 and on any date thereafter and if less than all of the outstanding Notes are to be redeemed,they shall be called in any order designated by the City,the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. The Notes are issued in fully registered form in the denominations of$1,000,000 or authorized integral multiples thereof. This Note may be exchanged upon presentation and surrender for cancellation hereof at the office of the Note Registrar,but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance,for a like aggregate principal amount of Notes of the same maturity and interest rate of other authorized denominations. This Note is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the office of the Note Registrar in the but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon presentation and surrender for cancellation of this Note. Upon such transfer a new Note or Notes of authorized denomination(s)of the same maturity and interest rate and for the same aggregate principal amount will be issued to the transferee in exchange therefor. The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1st day of the month next preceding an interest payment date to such interest payment date or after the giving of notice of redemption of a Note. The City,the Note Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City,the Note Registrar and the Paying Agent shall not be affected by any notice to the contrary. ASSIGNMENT FOR VALUE RECEIVED,the undersigned sells,assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint ,as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Note in every particular,without alteration or enlargement or any change whatever. n *fANN- , Agenda Item No. ' February 23, 1994 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: $3, 000, 000 General Obligation Note Bid PURPOSE This memorandum will provide the Mayor and City Council with information concerning the General Obligation Note sale. BACKGROUND Proposals for the $3 million G.O. Note sale were originally distributed to the eight (8) local financial institutions . One formal meeting along with several conferences were held to answer questions and solicit support for this borrowing. Five bids were received and they are as follows : Financial Institution Rate Old Kent 2 . 73% with /premium of $176 . 00 to equal 2 . 7206% NBD 3 .20% Bank One 3 .24% Union National Bank 3 . 75% American National First Chicago 3 . 86% FINANCIAL IMPACT Old Kent with a bid of 2 . 7206% is the lowest bidder. Gross interest cost of $51 ,415 less the premium of $176 . 00 nets to an interest cost to the city of $51,239 . 00 . Speer Financial Inc . , the city' s financial advisor, concurred with staff that the low bid represents a highly competitive interest rate in today' s market place. • E I in Agenda Item No. c t February 17, 1994 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: General Obligation Note Borrowing PURPOSE To authorize borrowing $3,000, 000 in General Obligation Notes . BACKGROUND During the 1994 budget process it became apparent that in order to balance the budget a short term financing was neces- sary. Members of the Finance Department staff met with the local financial institutions, explained the city' s financial situation and requested their assistance. They were provided with the same cash flow analysis that the City Council was given during the budget process . This analysis indicated that the City would require $3 million to meet our cash flow needs . After several meetings, a fact sheet was assembled and dis- tributed to the Elgin bankers highlighting the terms and conditions of the borrowing. Chapman & Cutler has also been consulted and will provide their opinion regarding validity, bank qualification and tax exemptness . Bids are scheduled to be opened at 10 : 00 a.m. on February 23, 1994 (the day of the City Council meeting) . Once the most competitive bid has been determined, the ordinance will be completed and addressed at that evening' s Council meeting. Other specifics about the issue are addressed in the attached "term sheet. " FINANCIAL IMPACT The $3 million is needed to ensure timely payment of payroll and accounts payable. With the exception of Chapman & Cut- ler's fee ($3,500) no other additional expenditures will be incurred. Interest expense on the $3 million is expected to be approximately $37 ,500 to $42,000 based on an interest rate General Obligation Note Borrowing February 17, 1994 Page 2 range of 2 .5% to 2 . 75% . The note will be repaid in November by General Fund revenues ( i .e. , property tax and sales tax) . LEGAL IMPACT lone. RECOMMENDATION It is recommended to approve the issuance of $3 million in General Obligation Notes . Rob t b-. 'Malmk Interim City Manager CITY OF ELGIN KANE & COOK COUNTIES, ILLINOIS $3,000,000 General Obligation Notes Series 1994A Sale Date/Time: February 23 , 1994 10 : 00 A.M. , C . S .T. by ` fax (Fax # 708-931-5610 ) or in person, City Hall , City Manager' s Conference Room, 150 Dexter Court . Dated Date : Date of closing expected to be within 30 days of the bid opening. Method of Sale: Competitive . Purchaser: Purpose: Working cash purposes . Maturity: November 1 , 1994 . Bank Qualification: The notes will be designated as "quali- fied tax-exempt obligations . " Registrar/Paying Agent City Treasurer. Security: The notes are general obligations of the City. i Denomination: $1, 000, 000 . Financial Disclosure: Most recent audit (previously distribut- ed) . Legal Opinion and Expenses : The city will pay for Chapman & Cutler' s customary validity and tax exempt opin- ion. At closing, the city will deliver up to three typed notes . CUSIP numbers are at the cost of the purchaser, if desired. Optional Redemption: The notes are callable on or after Octo- ber 1, 1994 , whole or in part after 5 days first class notice given by the City. Credit Rating: A credit rating will not be requested for the Series 1994A Notes . Interest Rate: Multiples of one hundredth of 1% . February 16 , 1994 Thank you for your recent interest in the City of Elgin. Hopefully the meeting proved productive and the information that was provided will assist you in assessing where the city has been, where we ' re at now and where we 're going. One of my goals* was to open up a dialogue with the local financial institutions and let you know first hand that the city appreciates your presence in the community. Several questions were raised concerning the borrowing that I will attempt to answer with this letter and the accompanying bid sheet. o We view this transaction as a General Obligation Note in the amount of $3, 000, 000. o A maturity date of November 1, 1994 has been established. o An additional General Obligation Note may have to be issued later in 1994 or early 1995 . The future financing should be considered totally separate from this request. A separate announcement will be made should it be necessary. o A legal opinion will be provided by Chapman and Cutler and it will address validity, bank qualification and tax exemption. o The city is in the process of assembling a "financial plan" for the City Council and bond rating agencies . This plan will be completed by the first quarter of 1994 . It ' s anticipated to be passed by the City Council and in place by the second quarter of 1994 . If you have any additional questions, please do not hesitate to contact me at ( 708) 931-5625 . Sincerely, cr James R. Nowicki Finance Director JRN:cg Encl . Bid Sheet $3, 000, 000 General Obligations Note Bid February 23, 1994 Page 2 LEGAL IMPACT None. RECOMMENDATION The recommendation is to award the $3 million G.O. Note sale to ld Kent Bank at net interest rate of 2 . 7206% . Ro rt O. Mal , Interim City Manager amp • CITY OF ELGIN KANE AND COOK COUNTIES, ILLINOIS $3,000,000 GENERAL OBLIGATION NOTES, SERIES 1994A • CLOSING: MARCH 17, 1994 1. Organization Certificate 2. Incapacity Certificate • 3. Cash Flow Estimates 4. Contract Certificate • 5. Note Ordinance, including Minutes of the February 23, 1994 meeting of the City Council 6. Specimen Note • 7. Closing Certificate 8. Treasurer's Receipt 9. Form 8038-G • 10. Closing Opinion of the City Attorney 11. Legal Opinion of Chapman and Cutler • • • 237279.01.03 . 201073lhhhlMarch 11, 1994 STATE OF ILLINOIS ) ) SS COUNTY OF KANE ) ORGANIZATION CERTIFICATE We, the undersigned, do hereby certify that we are the duly qualified and acting Mayor and City Clerk, respectively, of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and as such officials we do further certify as follows: 1. That the City was organized and incorporated as a City under the laws of the State of Illinois on or about the year 1854, has continuously since its incorporation operated under the general laws of the State of Illinois as a City governed by a City Council, has never changed its form of government, is now operating under the provisions of the Illinois Municipal Code, as amended (65 ILCS 5/1, et seq.) (the "Code"), and is not now operating under the provisions of any special act or charter. 2. That the City has not adopted and is not now operating under the provisions of Article 4 of the Code, said article providing for The Commission Form of Municipal Government, has adopted and is now operating under the provisions of Article 5 of the Code, said article providing for The Managerial Form of Municipal Government, has not adopted and is not now operating under the provisions of Articles 6, 14 and 18 of The Election Code of the State of Illinois, as amended (10ILCS 5/6, 5/14, and 5/18), said articles being known as the City Election Law. 3. That the present duly qualified and acting officials of the City are as follows: George VanDeVoorde, Mayor Dan Fox, Council Member Robert Gilliam, Council Member Ed Schock, Council Member Cheryl Popple, Council Member John Walters, Council Member Marie Yearman, Council Member Robert O. Malm Interim City Manager er Dolonna Mecum, City Clerk James R. Nowicki, Treasurer 233941.01.06 2010734/hhh:3/11/94 James R. Nowicki, Finance Director Erwin W. Jentsch, Corporation Counsel and that said members of the City Council of the City (the "City Council") have been the duly qualified and acting Council since May 1, 1993, and provided there are no vacancies created by resignation or otherwise, will constitute the City Council until the next election for members of the City Council is held, canvassed and a new Council duly constituted. 4. That the changes in the boundaries of the City since June 15, 1993 are as follows: (Attach copy of the orders and ordinances providing for all such changes. If no changes have occurred, please so indicate with the word "none".) NSK6 See Attached 5. That Kane and Cook Counties, Illinois, are the only counties within which the City is wholly or partly located. 6. That the Daily Courier-News is a local, community newspaper published in and with a general circulation within the City. 7. That all of the news media that have filed a request for notice of the meetings of the City Council pursuant to the Open Meetings Act of the State of Illinois, as amended (5 ILCS § 120/1 et seq.), are as follows: Courier News, WRMN Radio, Jones Intercable, Chicago Tribune (If no requests have been made, please so indicate with the word "none".) 8. That the regular meetings of the Council are held on the 2nd and 4th Wednesday of each month at 8:00 o'clock P.M., in the Elgin Municipal Building, 150 Dexter Court, within the City, that the City Council has given public notice of said schedule of regular meetings stating the regular dates, times and places of said meetings at the beginning of each calendar or fiscal year by posting a copy of said public notice at the principal office of the City Council and by supplying copies of said public notice to all of the newspapers, radio or television stations and other news media that have filed a request for such notice, and that the City Council has made said schedule available to the public. 9. That no petition has been filed or is now pending praying for the disconnection of any territory from the present corporate limits of the City. -2- 10. That there is no litigation or controversy pending or threatened and there are no tax objections pending or threatened questioning or affecting in any manner whatsoever the corporate existence of the City, its status as a home rule unit of government, the boundaries thereof, the right of the City to levy taxes for municipal purposes or the title of any of its present officials to their respective offices. 11. That the population of the City, as determined by the last census and being for the year 1990, and in accordance with the provisions of the 1970 Constitution of the State of Illinois, and particularly Article VII, Section 6(a), the City is a home rule unit. 12. That all of the tax anticipation notes or warrants of the City presently outstanding and unpaid are described as follows: ISSUED IN PRINCIPAL WARRANTS ANTICIPATION OF AMOUNT OR MATURITY TAXES FOR WHAT OUTSTANDING NOTES DATE YEAR? NONE (If no notes or warrants are outstanding, please so indicate with the word"none".) 13. That attached hereto as Exhibit A is a true, correct and complete copy of the Cash Flow Estimates for the Corporate Fund of the City, that said Cash Flow Estimates were prepared by James R. Nowicki, the Finance Director of the City, on the basis of the receipts reasonably expected to be available to and the expenditures reasonably expected to be expended by the City during the periods set forth in said Estimates and that said Estimates are now a part of the records and files of the City. -3- IN WITNESS WHEREOF, we hereunto affix our official signatures, this 9th day of March, 1994. yor, City of Elgin City Clerk, City of Elgin -4- Ordinance No. S4-93 AN ORDINANCE ANNEXING CERTAIN TERRITORY TO THE CITY OF ELGIN (Southwest Corner of Bode Road and Poplar Creek Drive) WHEREAS, a petition signed by all the owners of record of certain territory has been filed with the City Clerk requesting annexation of said territory to the City of Elgin, Illinois; and WHEREAS, all electors residing within the subject territory have signed the petition requesting annexation of said territory to the City of Elgin, Illinois; and WHEREAS, said territory is contiguous to the City of Elgin and is not within the corporate limits of any municipality; and WHEREAS, legal notice of the intent of the City of Elgin to annex said territory have been forwarded to all public bodies required to receive said notice in the manner provided by law. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That the territory and lands described as follows be and are annexed to and made a part of the City of Elgin and the boundaries of the City of Elgin be and are hereby enlarged and extended to include in the corporate boundaries of the City of Elgin said territory: Parcel 1 : That part of Section 18, Township 41 North, Range 9 East of the Third Principal Meridian, described as follows : Commencing at the Northeast corner of the Southeast quarter of said Section 18; thence South 88 degrees 30 minutes West along the North line of said Southeast Quarter, a distance of 483 . 80 feet to the westerly line of Poplar Creek Drive as dedicated, for the place of beginning; thence continuing South 88 degrees 30 minutes West along the last described course, a distance of 150 . 00 feet to a point that is 2039 . 60 feet East of the Northwest corner of said Southeast quarter; thence South 14 degrees 49 minutes West (South 14 degrees 41 minutes 01 seconds West measured) for a distance of 1023 .42 feet ( 1025 . 85 feet measured) ; thence North 88 degrees 31 minutes 45 seconds East (North 88 degrees 45 minutes 00 seconds East measured) a distance of 356 . 32 feet ( 352 . 83 feet measured) to the westerly line of Poplar Creek Drive; thence North 26 .degrees 39 minutes 15 seconds East (North 26 degrees 39 minutes 15 seconds East measured) along said westerly line, a distance of 36 . 18 feet (41 . 14 feet measured) ; thence northeasterly along said westerly line, being a curve to the left, having a radius of 538 . 19 feet and being tangent to the last described course, a distance of 264 . 46 feet; thence North 01 degrees 30 minutes 00 seconds West along said westerly line, being tangent to the last described curve, a distance of 696 .52 feet to the place of beginning, being situated in Cook County, Illinois and containing 6 .45 acres more or less . Parcel 2 : That part of the Southeast quarter of Section 18, Township 41 North, Range 9 East of the Third Principal Meridian, commencing at the Northeast corner of the Southeast quarter of said Section 18, thence westerly along the quarter section line 783 . 8 feet to a point 1891 . 6 feet, East of the Northwest corner of said Southeast quarter being the East line of land formerly belonging to Peter Burritt for a place of beginning, thence along the East line of said Burritt tract at an angle of 106 degrees 19 minutes measured clockwise from the last described course 1024 . 8 feet; thence easterly at an angle of 74 degrees 02 minutes measured clockwise from the last described course 150 . 0 feet; thence northeasterly at an angle of 105 degrees 55 minutes measured clockwise from the last described course 1026 . 0 feet to a point on the North line of said Southeast quarter section 150 . 0 feet easterly from the place of beginning; thence westerly along the quarter section line 150 . 0 feet to the place of beginning. Section 2 . That a certified copy of this ordinance together with an accurate map of said territories shall be filed with the Recorder of Deeds, Cook County, Illinois . Section 3 . That this ordinance shall be in full force and effect immediately after its passage and publication in pamphlet form or by newspaper in the manner provided by law'. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: July 14, 1993 Passed: July 14, 1993 Vote: Yeas 6 Nays 0 Recorded: July 15, 1993 Published: July 15, 1993 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk Ordinance No. 56-93 AN ORDINANCE ANNEXING CERTAIN TERRITORY TO THE CITY OF ELGIN (2260 South Street) WHEREAS, a petition signed by all the owners of record of certain territory has been filed with the City Clerk requesting annexation of said territory to the City of Elgin, Illinois; and WHEREAS, said petition includes therein a statement under oath by all the owners of record that no electors reside on the subject territory; and WHEREAS, said territory is contiguous to the City of Elgin and is not within the corporate limits of any municipality; and WHEREAS, legal notice of the intent of the City of Elgin to annex said territory have been forwarded to all public bodies required to receive said notice in the manner provided by law. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That the territory and lands described as follows be and are annexed to and made a part of the City of Elgin and the boundaries of the City of Elgin be and are hereby enlarged and extended to include in the corporate boundaries of the City of Elgin said territory: The East 75 feet of the West 200 feet of the South 200 feet of Lot 3 in Block 7 of Walter G. McIntosh Co. ' s Fox River Acres, Town of Elgin, in Sections 16 and 21, Township 41 North, Range 8 East of the Third Principal Meridian, according to the plat recorded December 28, 1925, in Book 25 of Plats, Page 28, as Document 266401, in Kane County, Illinois . Section 2 . That a certified copy of this ordinance together with an accurate map of said territories shall be filed with the Recorder of Deeds, Kane County, Illinois . Section 3 . That this ordinance shall be in full force and effect immediately after its passage and publication in pamphlet form or by newspaper in the manner provided by law. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: August 25, 1993 Passed: August 25, 1993 Omnibus Vote: Yeas 7 Nays 0 Recorded: August 26, 1993 Published: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk STATE OF ILLINOIS ) SS COUNTY OF KANE ) CERTIFICATE RE: INCAPACITY I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and that as such official I am the keeper of the journal of proceedings, books, records, minutes and files of the City and of the City Council. I do further certify that attached hereto is a full, true and correct transcript of the minutes of the legally convened meeting of the City Council held on the 9th day of February—, 1994, evidencing the election of Robert Gilliam to serve as Mayor Pro Tem for an indefinite period of days in Mayor VanDeVoorde's absence. I do further certify that Mayor VanDeVoorde was recovering from an illness and therefore was incapable of carrying out certain duties required of the Mayor in connection with the issuance of the City's General Obligation Notes, Series 1994A. IN WITNESS WHEREOF, I have hereunto affixed my official signature and the seal of the City this 9th day of March, 1994. City Clerk (SEAL) VOLUME LIX FEBRUARY 9, 1994 38 COUNCIL OF THE CITY OF ELGIN, ILLINOIS COUNCIL-MANAGER FORM OF GOVERNMENT REGULAR MEETING A regular meeting of the Council of the City of Elgin, Illinois, was held on February 9, 1994 , in the Council Chambers . The meeting was called to order by Councilman Gilliam at 8 : 00 p.m. The Invocation was given by Reverend Awilda Nolla, and the Pledge of Allegiance was led by Councilwoman Yearman. ROLL CALL Roll call was answered by Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Absent: Mayor VanDeVoorde. APPOINTMENT OF MAYOR PRO TEM Mayor VanDeVoorde is recuperating from heart bypass surgery and is temporarily unable to perform the duties of the office of Mayor. Councilman Walters made a motion, seconded by Councilwoman Popple, to elect Councilman Gilliam as Mayor Pro Tem. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. MINUTES OF THE JANUARY 26, 1994 COUNCIL MEETING APPROVED AS PUBLISHED Councilwoman Popple made a motion, seconded by Councilman Fox, to approve the January 26 , 1994 , Council Minutes as published. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. COMMUNICATIONS PROCLAMATION - ELGIN COMMITTEE ON AT RISK KIDS Judge Wiley Edmondson, Chairman of the Elgin Committee on At Risk Kids, distributed the committee ' s report on the summer open gym and fun center program and commented on some of the highlights . He stated that the program has been highly successful . There were 4 ,256 "gym visits" in 1992 and 5384 "gym visits" in 1993 . The program is the result of the Elgin Parks and Recreation Department, Elgin Police Department, and School District U-46 all working together. In ' 993 the program was enhanced by the participation of the Elgin Jaycees, who "adopted" Larsen School, and provided volunteers to work with the kids . Judge Edmondson thanked the Mayor and Council for their continued support of this highly successful program, which 39 FEBRUARY 9, 1994 VOLUME LIX the committee believes is a valuable tool in the fight against gangs, youth crime, and vandalism. Recreation Superintendent Bates read and presented a proclamation to the Elgin Jaycees in recognition of their contribution to the At Risk Kids program. Plaques of appreciation were also presented to individual Jaycee members who participated in the program on a consistent basis . BID #94-002 AWARDED FOR AIR MASKS FOR THE FIRE DEPARTMENT Councilman Fox made a motion, seconded by Councilman Walters, to award two separate contracts as follows : Items 1-9 to Mine Safety Appliances for $135, 301 . 02 and Item 10 to Air One Equipment for $1, 070 . 00 . Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. RESOLUTION 94-29 ADOPTED AUTHORIZING EXECUTION OF A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT AND GROUND LEASE AGREEMENT WITH ELGIN RIVERBOAT RESORT Councilwoman Yearman made a motion, seconded by Councilman Fox, to adopt the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Resolution No. 94-29 RESOLUTION AUTHORIZING EXECUTION OF A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT AND GROUND LEASE AGREEMENT WITH ELGIN RIVERBOAT RESORT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that George VanDeVoorde, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Second Amendment to Development Agreement and Ground Lease Agreement on behalf of the City of Elgin with Elgin Riverboat Resort for the riverboat gambling facility within the City of Elgin, a copy of which is attached hereto and made a part hereof by reference. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Adopted: February 9, 1994 Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk 3VOLUME LIX FEBRUARY 9 , 1994 40 RESOLUTION 94-34 ADOPTED AUTHORIZING EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH ATEC ASSOCIATES, INC. Councilwoman Popple made a motion, seconded by Councilwoman Yearman, to adopt the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Resolution No. 94-34 RESOLUTION AUTHORIZING EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH ATEC ASSOCIATES, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert 0. Malm, Interim City Manager, be and is hereby authorized and directed to execute a Professional Services Agreement on behalf of the City of Elgin with ATEC Associates, Inc . for groundwater investigation and groundwater corrective action plan for the Elgin riverboat pavilion site, a copy of which is attached hereto and made a part hereof by reference. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Adopted: February 9 , 1994 Vote : Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk RESOLUTION 94-30 ADOPTED TO ADOPT THE ANNUAL 1,000 HOUR STANDARD FOR IMRF PARTICIPATION Councilman Walters made a motion, seconded by Councilwoman Popple, to adopt the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. 41 FEBRUARY 9 , 1994 VOLUME LIX RESOLUTION TO ADOPT THE ANNUAL 1,000 HOUR STANDARD FOR IMRF PARTICIPATION Resolution No. 94-30 IMRF Form 6.68 (Rev. 3193) (Cannot be used by a school district or special education cooperative.) PLEASE ENTER Employer IMRF I.D. Number 3347 RESOLUTION Number 94-30 WHEREAS, Section 7-137 of the Illinois Pension Code provides that effective January 1, 1982, certain employers in the Illinois Municipal Retirement Fund may elect to exclude from participation in the Fund persons in positions normally requiring performance of duty for less than 1,000 hours per year; and WHEREAS,the exclusion may be applicable only to persons first employed in positions under the Fund by any employer in the Fund after the adoption of the resolutions establishing the exclusion; and WHERILAS, City Council is authorized by Section 7-137 NAME OF BOARD,COUNCIL,etc. of the Illinois Pension Code to adopt such exclusion and it is desirable that it do so; BE IT RESOLVED that the City Council of City of Elgin NAME OF BOARD,COUNCIL,etc. EMPLOYER NAME does hereby elect to exclude from participation in the Illinois Municipal Retirement Fund all officials and employees in positrons normally requiring performance of duty for less than 1,000 hours per year; BE IT FURTHER RESOLVED that this exclusion shall apply only to officials and employees who first occupy offices or positions under the Fund after adoption of this resolution BE IT FURTHER RESOLVED that the Clerk is authorized and CLERK OR SECRETARY OF THE BOARD directed to file a duly certified copy of this resolution with the Illinois Municipal Retirement Fund. CERTIFICATION I Dolonna Mecum , the Clerk NAME CLERK OR SECRETARY OF THE BOARD of the City of Elgin of the County of Kane EMPLOYER NAME COUNTY State of Illinois, do hereby certify that I am keeper of its books and records and that the foregoing is a true and correct copy of a resolution duly adopted by its City Council at a meeting duly convened NAME OF BOARD,COUNCIL,etc. and held on the 9 th day of _ FPhruary SEAL �& CLERK OR SECRETARY OF THE BOARD Illinois Municipal Retirement Fund Suite 500, 2211 York Road, Oak Brook Illinois 60521-2374 708/368-1010 IMRF Form 6.68 (Rev. 3/93) Service Representatives 800/ASK-IMRF 3VOLUME LIX FEBRUARY 9, 1994 42 AUTHORIZATION OF PAYMENT TO VARIOUS VENDORS Councilman Fox made a motion, seconded by Councilman Walters, to authorize the following payments . Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Norman Roberts & $ 6 , 673 . 00 Final payment for Associates recruitment and Los Angeles, CA screening of City Manager Candidates Akzo Salt, Inc. $28,536 .54 January 3-18 deliveries Chicago, IL of bulk highway rock salt. Hutchinson Salt, Co. $24 ,425 . 00 Emergency purchase of Hutchinson, KS 500 tons bulk highway rock salt Boncosky Oil Co. $12 , 855 . 95 Purchase of gasoline Elgin, IL for Ann Street garage Illinois Fire Chiefs $ 6 , 120 . 00 Promotional testing Association service for Fire Skokie, IL Lieutenant candidates National League of $ 4 , 181 . 00 1994 membership dues Cities Washington, D.C. American Water Works $ 6, 101 . 00 1994 membership dues Association for AWWA and AWWA' s Denver, CO Research Foundation American Demolition $ 4 , 800 .00 Demolition and site Corporation clearance at 638 Bloomingdale, IL McBride Street Dorothy Crawley $ 5,499 .75 Repairs to property in 456 Addison Street conjunction with the Elgin, IL Residential Rebate Program CONSENT AGENDA Councilwoman Popple made a motion, seconded by Councilman Schock, to pass ordinance numbers G3-94 , G4-94 , S1-94 , and resolution numbers 94-29 through 94-36 by omnibus votes . Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. 43 FEBRUARY 9 , 1994 VOLUME LIX ORDINANCE G4-94 PASSED RECLASSIFYING PROPERTY LOCATED AT 840 EAST CHICAGO STREET FROM COMMERCIAL INDUSTRIAL (CI ) DISTRICT TO COMMUNITY FACILITIES (CF) DISTRICT AND GRANTING A CONDITIONAL USE FOR A CHURCH (PETITION 56-93) Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following ordinance. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Ordinance No. G4-94 AN ORDINANCE RECLASSIFYING PROPERTY AT 840 EAST CHICAGO STREET AND GRANTING A CONDITIONAL USE FOR A CHURCH WHEREAS, written application has been made to reclassify certain property located at 840 East Chicago Street from CI Commercial Industrial District to CF Community Facility District; and WHEREAS, the Planning and Development Commission has conducted a public hearing concerning said application and has submitted its written findings and recommendation that the . subject property be reclassified and a conditional use for a church be granted; and WHEREAS, the City Council has reviewed the findings and recommendation of the Planning and Development Commission and concurs in such recommendations . NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That Chapter 19 . 08, Section 19 . 08 . 020 entitled "Zoning District Map" of the Elgin Municipal Code, 1976 , as amended, be and the same is hereby further amended by adding thereto the following paragraph: "The boundaries hereinafter laid out in the ' Zoning District Map' , as amended, be and are hereby altered by excluding from the CI Commercial Industrial District and including in the CF Community Facility District, the following described property: Parcel 1 : The northeasterly 120 . 0 feet of Lot 19 and the northeasterly 120 . 0 feet of the East 20 . 0 feet of Lot 18, all in Lord' s Park Terrace, a part of Lot 16 of the County Clerk' s Subdivision in the Southwest 1/4 of Section 18, Township 41 North, Range 9 , East of the Third Principal Meridian, in Cook County, Illinois . Parcel 2 : Lot 20 in Lord' s Park Terrace, a part of Lot 16 of County Clerk' s 1 Subdivision in the Southwest 1/4 of Section 18, Township 41 North, Range 9 , East of the Third 3VOLUME LIX FEBRUARY 9, 1994 44 Principal Meridian, in Cook County, Illinois . Parcel 3 : Lot 21 in Lord' s Park Terrace, a part of Lot 16 of the County Clerk ' s Subdivision in the Southwest 1/4 of Section 18, Township 41 North, Range 9 , East of the Third Principal Meridian, in Cook County, Illinois . " Section 2 . That the City Council of the City of Elgin hereby adopts the findings of fact made by the Planning and Development Commission granting a conditional use for a church at 840 East Chicago Street, a copy of which is attached hereto as Exhibit A and incorporated herein by reference, subject to the following conditions : 1 . Substantial conformance with the Site Plan prepared by Audrey J. Miller, dated November 9 , 1993 and revised December 31, 1993 and January 17 , 1994 , and the Remodeling Plan prepared by Audrey J. Miller, identified as Project No. 9326 , Sheet A-2 . 2 . Compliance with all other applicable codes and ordinances . Section 3 . That the conditional use granted herein shall expire if not established within one year from the date of passage of this ordinance. Section 4 . That this ordinance shall be in full force and effect from and after its passage in the manner provided by law. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Passed: February 9 , 1994 Omnibus Vote: Yeas 6 Nays 0 Recorded: February 10, 1994 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk ORDINANCE S1-94 PASSED PROVIDING FOR PUBLICATION OF NOTICE OF TREASURER'S REPORT Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following ordinance. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. 45 FEBRUARY 9, 1994 VOLUME LIX Ordinance No. S1-94 AN ORDINANCE ' PROVIDING FOR PUBLICATION OF NOTICE OF TREASURER' S REPORT WHEREAS, a home rule unit may exercise any power and perform any function within its government and affairs; and WHEREAS, the annual report of the treasurer is a matter pertaining to the government and affairs of the City of Elgin. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . Publication of annual report of treasurer. The City shall , within six months after the end of each fiscal year, and after having received a copy of the annual treasurer' s report, publish a notice in a newspaper published in the City of Elgin or in a newspaper having a general circulation within the City of Elgin advising of the availability of said annual report and that the same may be inspected or copied at the office of the clerk. Section 2 . That all statutes of the State of Illinois or any parts thereof which are in conflict with the provisions of this ordinance are hereby superseded by this ordinance which is enacted under the home rule power of the City of Elgin. Section 3 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed insofar as they conflict herewith. Section 4 . That this ordinance shall be immediately in full force and effect after passage and approval . s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Passed: February 9, 1994 Omnibus Vote: Yeas 6 Nays 0 Recorded: February 10, 1994 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk 3VOLUME LIX FEBRUARY 9 , 1994 46 ORDINANCE G3-94 PASSED AMENDING CHAPTER 9 .24 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED, ENTITLED "GARBAGE AND REFUSE" Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following ordinance. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Ordinance No. G3-94 AN ORDINANCE AMENDING CHAPTER 9 .24 OF THE ELGIN MUNICIPAL CODE, 1976 , AS AMENDED, ENTITLED "GARBAGE AND REFUSE" BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . That Chapter 9 .24 entitled "Garbage and Refuse" of the Elgin Municipal Code, 1976 , as amended, be and is hereby further amended by amending Section 9 . 24 . 020A to read as follows : A. Garbage and refuse collection service of those materials specified in subsection B of this section shall be provided to single-family residences , duplexes, and apartment buildings containing five or less dwelling units . Such collection service shall not be provided to any schools , churches, mobile homes, cooperatives or other apartment buildings containing six or more dwelling units, commercial or industrial establishments . Section 2 . That Chapter 9 .24 entitled "Garbage and Refuse" of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended by amending Section 9 .24 . 020B to read as follows : B. The collection service provided shall be limited to normal and customary refuse and garbage produced or occurring at the residence served and shall include waste resulting from the handling, preparation, cooking and consumption of food; combustible trash, including but not limited to paper, cartons , boxes, barrels, wood furniture, bedding; non-combustible trash, including but not limited to, metals, tin cans, furniture containing metal , and metal appliances such as stoves, refrigerators, freezers and washers . The collection service shall not include automobiles or auto parts, concrete, gravel, or dirt. It shall be unlawful for any person, firm or corporation to place or permit another to place prohibited garbage or other refuse on the tree bank or parkway adjoining a public street or alley, or on a private street or alley intended for collection by the city. 47 FEBRUARY 9, 1994 VOLUME LIX Section 3 . That Chapter 9 .24 entitled "Garbage and Refuse" of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended by amending Section 9 . 24 . 020C to read as follows : C. Garbage containers for city pickup shall be placed on the tree bank or parkway adjoining the public or private street or alley not later than seven a.m. on the collection day and not earlier than five p.m. of the preceding day. Containers shall be returned to their storage area within twelve hours of pickup. It shall be unlawful for any person, firm or corporation to place or permit another to place garbage or refuse on the tree bank or parkway adjoining a public street or alley at any other time. Section 4 . That all ordinances or parts thereof in conflict with this ordinance are repealed. Section 5 . That this ordinance shall be in full force and effect from and after ten days after its passage and publication in the manner provided by law. sl Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Passed: February 9 , 1994 Omnibus Vote: Yeas 6 Nays 0 Recorded: February 10, 1994 Attest: sl Dolonna Mecum Dolonna Mecum, City Clerk RESOLUTION 94-32 ADOPTED INCREASING THE NUMBER OF STOPS FOR SOLID WASTE GARBAGE AND REFUSE PAYMENTS Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Resolution No. 94-32 RESOLUTION INCREASING THE NUMBER OF STOPS FOR SOLID WASTE GARBAGE AND REFUSE PAYMENTS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the City of Elgin shall make payment to Waste 3VOLUME LIX FEBRUARY 9 , 1994 48 Management-West for 19 , 307 stops for solid waste garbage and refuse for the period January, 1994 through June, 1994 . s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Adopted: February 9 , 1994 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk RESOLUTION 94-31 ADOPTED AUTHORIZING EXECUTION OF A MASTER AGREEMENT WITH THE COUNTY OF KANE FOR MAINTENANCE OF TRAFFIC SIGNALS Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Resolution No. 94-31 RESOLUTION AUTHORIZING EXECUTION OF A MASTER AGREEMENT WITH THE COUNTY OF KANE FOR MAINTENANCE OF TRAFFIC SIGNALS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that George VanDeVoorde, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Master Agreement on behalf of the City of Elgin with the County of Kane for maintenance of traffic signals, a copy of which is attached hereto and made a part hereof by reference. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Adopted: February 9 , 1994 Omnibus Vote: Yeas 6 Nays- 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk 49 FEBRUARY 9, 1994 VOLUME LIX RESOLUTION 94-33 ADOPTED APPROVING CHANGE ORDER NO. 1 IN THE CONTRACT WITH CENTRAL BLACKTOP CO. , INC. FOR THE SLADE AVENUE FACILITIES ROADWAY IMPROVEMENT Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Resolution No. 94-33 RESOLUTION APPROVING CHANGE ORDER NO. 1 IN THE CONTRACT WITH CENTRAL BLACKTOP CO. , INC. FOR THE SLADE AVENUE FACILITIES ROADWAY IMPROVEMENT WHEREAS, the City of Elgin has heretofore entered into a contract with Central Blacktop Co. , Inc. for the Slade Avenue facilities roadway improvement; and WHEREAS, it is necessary and desirable to modify the terms of the contract as is described in Change Order No. 1, attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert 0. Malm, Interim City Manager, be and is hereby authorized and directed to execute Change Order No. 1, a copy of which is attached hereto and made a part hereof by reference. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Adopted: February 9 , 1994 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk RESOLUTION 94-35 ADOPTED AUTHORIZING EXECUTION OF A GRANT AGREEMENT WITH THE INDEPENDENT PLAYERS Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. 3VOLUME LIX FEBRUARY 9 , 1994 50 Resolution No. 94-35 RESOLUTION AUTHORIZING EXECUTION OF A GRANT AGREEMENT WITH THE INDEPENDENT PLAYERS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert 0. Malm, Interim City Manager, be and is hereby authorized and directed to execute a Grant Agreement on behalf of the City of Elgin with the Independent Players for a $1 , 000 . 00 grant pursuant to the Cultural Arts Commission Arts and Culture Grants Program, a copy of which is attached hereto and made a part hereof by reference. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: February 9 , 1994 Adopted: February 9 , 1994 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk RESOLUTION 94-36 ADOPTED AUTHORIZING EXECUTION OF A GRANT AGREEMENT WITH BUBOTTO Councilwoman Popple made a motion, seconded by Councilman Schock, to pass the following resolution. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Resolution No. 94-36 RESOLUTION AUTHORIZING EXECUTION OF A GRANT AGREEMENT WITH BUBOTTO BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert 0. Malm, Interim City Manager, be and is hereby authorized and directed to execute a Grant Agreement on behalf of the City of Elgin with Bubotto for a $3 , 300 . 00 grant pursuant to the Cultural Arts Commission Arts and Culture Grants Program, a copy of which is attached hereto and made a part hereof by reference . s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem 51 FEBRUARY 9, 1994 VOLUME LIX Presented: February 9, 1994 Adopted: February 9 , 1994 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk REPORTS/MINUTES RECEIVED AND ORDERED PLACED ON FILE Councilman Fox made a motion, seconded by Councilman Walters, to place the following reports and minutes on file as published. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters , and Yearman. Nays : None. Sales Tax Report for October, 1993 Bluff City Cemetery 1993 Fourth Quarter Report Traffic Committee Minutes for October 12 , 1993, November 9, 1993 , December 7, 1993, and January 11 , 1994 . Parks and Recreation Advisory Board Minutes for November 30, 1993 Elgin Image Advisory Commission Minutes for December 5, 1993 Committee of the Whole Minutes for January 12 , 1994 City Council Minutes for January 12 , 1994 December 1993 Disbursement Report ANNOUNCEMENTS Mayor Pro Tem Gilliam made announcements regarding forthcoming meetings . ADJOURNMENT Councilwoman Popple made a motion, seconded by Councilman Walters , to adjourn the meeting. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, and Yearman. Nays : None. Meeting adjourned at 8 : 17 p.m. February 23, 1994 Dolonna Mecum, City Clerk Date Approved CASH FLOW ESTIMATE City of Elgin, Kane and Cook Counties, Illinois, for the Corporate Fund for the period from March, 1994, through November, 1994. CUMULATIVE SURPLUS INDICATE FOR (OR DEFICIT) EACH MONTH ESTIMATED ESTIMATED AT END COMMENCING WITH RECEIPTS (1) EXPENDITURES (2) OF MONTH (3) March, 1994 2,492,020 2,702,605 ( 210,585) April, 1994 1,806,540 2,702,610 (1,106,655) May, 1994 1,903,315 3,886. 120 (3,089,460) June, 1994 July, 1994 August, 1994 September, 1994 October, 1994 November, 1994 (1) Estimated Receipts: The amount (other than the proceeds of the warrants proposed to be issued) whether in the form of cash, marketable securities, or otherwise which will be available for the payment of the expenditures of the fund during the month. Includes proceeds from investments. (2) Estimated Expenditures: The amount that will be expended during the month to pay expenditures of the fund which would ordinarily be paid out of or financed by the anticipated tax or other revenues. (3) Cumulative Surplus (or Deficit): The amount whether in the form of cash, marketable securities, or otherwise on hand at the end of the month. 233754.01.06 2010734/HHH:3/8/94 For the fiscal year ended December 31, 1993, I hereby certify that the City's actual working capital expenditures for the Corporate Fund was 32,725,320 I, James R. Nowicki, do hereby certify that I am thoroughly familiar with the financial books and records of the City of Elgin, Kane and Cook Counties, Illinois, and I do further certify that I have prepared the foregoing Cash Flow Estimates on the basis of the receipts reasonably expected to be available to and the expenditures reasonably expected to be expended by said City during the period set forth in said Estimates. IN WITNESS WHEREOF, I hereunto affix my signature, this 9th day of March, 1994. a4�miw T11,*"l,n, �(- Finance Director We, the undersigned officials of said City, do hereby certify that we have inspected and approved the foregoing Cash Flow Estimates and that said Estimates are now a part of the records and files of said City. IN WITNESS WHEREOF, we hereunto affix our official signatures, this 9th day of March, 1994. Mayor, t of Elgin City Clerk, City of Elgin -2- STATE OF ILLINOIS ) SS COUNTY OF KANE ) CONTRACT CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and as such official I do further certify that attached hereto is a true, correct and complete copy of the contract (as evidenced by a letter agreement) made on the 23rd day of February, 1994, between the City and the purchaser of the $3,000,000 General Obligation Notes, Series 1994A, dated the date of issue, of the City, regarding the sale and purchase of said notes. IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the City, this 9th day of March, 1994. City Clerk [SEAL] FUNDS MANAGEMENT/CAPITAL MARKETS FAX NUMBERSI 1f312-676-4117 & 4347 DAM; February 23, 1994 i James R. Nowicki j TO: RE: $3,000,000 City of Elgin PROMS Eric Wilson, 312-876-4256 NM BER of PA©E9, 3 INCLUDING COVER aN$N C{ OLD KENF Md 01761# LVZV-9L8-ZT2:ON -Bi IO **J8 1N3A TU:Q I E0:T T 176.-0-8 3-1 PROPOSAL FOR THE PURCHASE OF $3,000,000 CITY OF ELGIN GENERAL OBLIGATION NOTE February 23, 1994 Ladies and Gentlemen: Subject to all of the terms and conditions of the Official Notice of sale, we will pay you not less than 100.00% of the stated par value plug a premium of __$176.00 - for Three million ($3,000,000) City of Elgin, General Obligation notes. The coupon rate is as follows: Maturing: November 1, 1994 Coupon rats: 2.73% It either the gross interest cost or the net interest cost stated below is incorrectly computed, the above interest rates and the premium shown below shall prevail. Gross Interest Cost: 51,415.00 1 Less Premium: 176.00 Net Interest Cost: 51,239.00 Net Interest Rates: 2.7206% The discount shown above is calculated for bid purposes as of March 15, 1994. This amount will be recomputed to reflect the actual closing date, yet to be determined. TOd 0176# LK17-9LB-ZTE:ON -3L 09�0 *M 143>1 TU:QI ZO:TT 176,-M-H3A We understand that the legal opinion, the printing of typed bonds and the delivery of same to us will be accomplished at the issuer's expense. This bid is for immediate acceptance. Respectfully s e Signature: i Name: Eric G. Wilson 4 Old Kent Bank - Illinois Zed 006# Lb£17-9LB-Z T£:ON -Bi 09FD AAV9 iN3>1 QUO:Q I £0:T T 176.-£Z-H3.J EXTRACT OF MINUTES of the regular public meeting of the City Council of the City of Elgin, Kane and Cook Counties, Illinois, held at the Elgin Municipal Building, 150 Dexter Court, Elgin, Illinois, at 8 : 00 p.m. , on the 23rd day of February, 1994 . The Mayor Pro Tem called the meeting to order and directed the City Clerk to call the roll . Upon the roll being called, the following answered present: Council Members Fox, Gilliam, Schock, Walters and Yearman. The following were absent: Council Member Popple and Mayor VanDeVoorde. The City Council discussed the current financial condition of the City and then considered an ordinance providing for the issuance of $3,000, 000 General Obligation Notes 1994A, of the City of Elgin, Kane and Cook Counties, Illinois . Thereupon, Mayor Pro Tem Gilliam presented and the City Clerk read into the record in full the following ordinance: Council Member Schock moved and Council Member Walters seconded the motion that said ordinance as presented be adopted. After discussion thereof, the Mayor Pro Tem directed that the roll be called for a vote upon the motion to adopt the ordinance. Upon the roll being called, the following Council Members voted AYE: Council Members Fox, Gilliam, Schock, Walters and Yearman. The following Council Members voted NAY: None. WHEREUPON, the Mayor Pro Tem 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 of Elgin, Kane and Cook Counties, Illinois . Other business not pertinent to the proposed ordinance was duly transacted at said meeting. Upon motion duly made and carried, the meeting adjourned. City Clerk I I ORDINANCE NUMBER S3-94 AN ORDINANCE providing for the issuance of $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois (the "City") has a population in excess of 25,000 as determined by the last official census, and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the City is a home rule unit and may exercise any power or perform any function pertaining to its government and affairs including, but not limited to, the power to tax and to incur debt; and WHEREAS, pursuant to the provisions of said Section 6, the City has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within forty (40) years from the time it is incurred without prior referendum approval; and WHEREAS, the City Council does hereby determine that in light of the current financial condition of the City it is advisable and in the best interests of the City to borrow $3,000,000 at this time and, in evidence of such borrowing, issue its full faith and credit Notes in the principal amount of$3,000,000; Now THEREFORE Be It Ordained by the City Council of the City of Elgin, Kane and Cook Counties, Illinois, in the exercise of its home rule powers, 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: "City" means the City of Elgin, Kane and Cook Counties, Illinois. "City Council" means the City Council of the City. "Code" means the'�-iternal Revenue Code of 1986. "Note" or "Notes" means one or more, as applicable, of the $3,000,000 General Obligation Notes, Series 1994A, authorized to be issued by this Ordinance. "Note Register" means the books of the City kept by the Note Registrar to evidence the registration and transfer of the Notes. "Note Registrar" means the Treasurer of the City or a successor thereto or a successor designated as Note Registrar hereunder. "Ordinance" means this Ordinance, number 53-94 , and passed by the City Council on the 23rd day of February, 1994. "Paying Agent" means the Treasurer of the City, or a successor thereto or a successor designated as Paying Agent hereunder. "Tax-exempt" means, with respect to the Notes, the status of interest paid and received thereon as not includible in the gross income of the owners thereof under the Code 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, in computing the environmental tax imposed on certain corporations and in computing the "branch profits tax" imposed on certain foreign corporations. Section 2. Incorporation of Preambles. The City Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Determination To Issue Notes. It is necessary and in the best interests of the City to pay the current operating expenses of the City and to pay all related costs and expenses incidental thereto, and to borrow money and issue the Notes for such purposes. It is hereby found and determined that such borrowing of money is necessary for the welfare -2- of the government and affairs of the City, is for a proper public purpose or purposes and is in the public interest, and these findings and determinations shall be deemed conclusive. Section 4. Note Details. For the purposes set forth above and to pay all related costs and expenses incidental thereto, there shall be issued and sold the Notes in the principal amount of $3,000,000. The Notes shall each be designated "General Obligation Note, Series 1994A"; be dated the date of issuance; and shall also bear the date of authentication thereof. The Notes shall be in fully registered form, shall be in denominations of $1,000,000 or integral multiples thereof, shall be numbered consecutively in such fashion as shall be determined by the Note Registrar, and shall become due and payable on November 1, 1994 (being subject to the right of prior redemption hereinafter set forth) and bearing interest at the rate of 2.7 3 percent per annum. The Notes shall bear interest from their dated date as herein provided, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable at maturity. Interest on each Note shall be paid by check or draft of the Paying Agent, payable upon presentation thereof in lawful money of the United States of America, to the person in whose name such Note is registered at the close of business on the 1 st day of the month next preceding the interest payment date and shall be 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 Note Registrar. The principal of the Notes shall be payable in lawful money of the United States of America upon presentation thereof at the office of the Paying Agent. Section S. Execution; Authentication. The Notes shall be executed on behalf of the City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, as they may determine, and shall have impressed or -3- imprinted thereon the corporate seal or facsimile thereof of the City. In case any such officer whose signature shall appear on any Note shall cease to be such officer before the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. All Notes shall have thereon a certificate of authentication, substantially in the form hereinafter set forth, duly executed by the Note Registrar as authenticating agent of the City and showing the date of authentication. No Note 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 Note Registrar by manual signature, and such certificate of authentication upon any such Note shall be conclusive evidence that such Note has been authenticated and delivered under this Ordinance. The certificate of authentication on any Note shall be deemed to have been executed by it if signed by an authorized officer of the Note Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Notes issued hereunder. Section 6. Registration of Notes;Persons Treated as Owners;Redemption. A. Registration of Notes The City shall cause the Note Register to be kept at the office of the Note Registrar in the City; and the same is hereby constituted and appointed the registrar of the City for the Notes. The City is authorized to prepare, and the Note Registrar or such other agent as the City may designate shall keep custody of, multiple Note blanks executed by the City for use in the transfer and exchange of Notes. Any fully registered Note or Notes may be exchanged upon presentation at the office of the Note Registrar, duly endorsed by, or accompanied by a written instrument or instruments authorizing such exchange in form satisfactory to the Note Registrar and duly executed by, the registered owner or his attorney duly aut' orized in writing, for a like -4- aggregate principal amount of Note or Notes of the same maturity, of other authorized denominations and of the same interest rate. Upon surrender for transfer of any Note at the office of the Note Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Note Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, the City shall execute and the Note Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Note or Notes of the same maturity, of authorized denominations, for a like aggregate principal amount and interest rate. The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1st day of the month next preceding an interest payment date to such interest payment date or after the giving of notice of redemption as provided herein. The execution by the City of any fully registered Note shall constitute full and due authorization of such Note, and the Note Registrar shall thereby be authorized to authenticate, date and deliver such Note; provided, however, the principal amount of Notes of each maturity authenticated by the Note Registrar shall not at any one time exceed the authorized principal amount of Notes for such maturity less the amount of such Notes which have been paid. The person in whose name any Note 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 Note shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Note to the extent of the sum or sums so paid. -5- No service charge shall be made for any such transfer or exchange of Notes, but the City or the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such transfer or exchange of Notes. B. Option Redemption. The Notes are redeemable prior to maturity at the option of the City, in whole or in part, on any date on or after October 1, 1994 and if less than all of the outstanding Notes are to be redeemed they shall be called in any order designated by the City and by lot within the maturity, the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. Notice of the call for any such redemption shall be given by the Note Registrar on behalf of the City, by mailing the redemption notice by first class mail at least 5 days prior to the date fixed for redemption to the registered owner of the Note at the address shown on the Note Registrar. Notice of such redemption having been properly given the Note or portion of Notes redeemed shall, on the redemption date, become due and payable at the redemption price and from after such date (unless the City shall default in the payment of the redemption price) such Note or portions of Notes shall cease to bear interest. Notice of any such redemption may be waived in writing by the registered owner of a Note.entitled to receive such notice, either before or after the event. Section 7. Form of Note. The Notes shall be in substantially the form hereinafter set forth; provided, however, that if the text of the Note is to be printed in its entirety on the front side of the Note, then paragraph [2] and the legend "See Reverse Side for Additional Provisions" shall be omitted and paragraphs [6] through [9] shall be inserted immediately after paragraph [1]: -6- [Form of Note - Front Side] REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE, SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: % Date: November 1, 1994 Date: , 1994 Registered Owner: Principal Amount: [1] KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable, at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City, as paying agent (the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of -7- the City maintained by the City Treasurer of the City (the "Note Registrar"), at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent, 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 Note Registrar. [2] Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. [3] It is hereby certified and recited that all conditions, acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done, happened and been performed in regular and due form and time as required by law and; that the indebtedness of the City, represented by the Notes, and including all other indebtedness of the City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other lawful limitation. [4] This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. -8- [51 IN WITNESS WHEREOF the City of Elgin, Kane and Cook Counties, Illinois, by its City Council, has caused this Note to be executed by 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, City of Elgin Kane and Cook Counties, Illinois Attest: City Clerk, City of Elgin Kane and Cook Counties, Illinois (SEAT,) Date of Authentication: , CERTIFICATE OF Note Registrar and Paying Agent: AUTHENTICATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. CITY TREASURER as Note Registrar By Authorized Signer -9- [Form of Note - Reverse Side] City of Elgin, Kane and Cook Counties, Illinois General Obligation Note Series 1994A [6] This Note is one of a series of Notes (the "Notes") in the aggregate principal amount of $3,000,000 issued by the City for the purpose of meeting the working cash needs of the City and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Notes (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, and with the Ordinance, which has been duly passed by the City Council and published, in all respects as by law required. This Note and the other Notes of such series are redeemable prior to maturity at the option of the City, in whole or in part on October 1, 1994 and on any date thereafter and if less than all of the outstanding Notes are to be redeemed, they shall be called in any order designated by the City, the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. [7] The Notes are issued in fully registered form in the denominations of $1,000,000 or authorized integral multiples thereof. This Note may be exchanged upon presentation and surrender for cancellation hereof at the office of the Note Registrar, but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, for a like aggregate principal amount of Notes of the same maturity and interest rate of other authorized denominations. This Note is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the office of the Note Registrar in the but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon presentation and surrender for cancellation of this Note. Upon such transfer a new Note or Notes of authorized denomination(s) of the same maturity and interest rate and for the same aggregate principal amount will be issued to the transferee in exchange therefor. [8] The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1st day of the month next preceding an interest payment date to such interest payment date or after the giving of notice of redemption of a Note. [9] The City, the Note Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City, the Note Registrar and the Paying Agent shall not be affected by any notice to the contrary. -10- ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint , , as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. Section 8. Sale of Notes. The Notes shall be executed as in this Ordinance provided as soon after the passage hereof as may be, shall be deposited with the City Treasurer, and shall be by the Treasurer delivered to the purchaser thereof, namely, Old Kent Bank-Illinois, upon payment of the purchase price agreed upon, the same being , ,$ 3 000 176 plus accrued interest to date of delivery. The contract for the sale of the rY Notes to the purchaser is hereby in all respects ratified, approved and confirmed, it being hereby declared that no person holding any office of the City, either by election or appointment, is in any manner interested, either directly or indirectly, in his own name or the name of any other person, association, trust or corporation, in such contract. Section 9. Creation of Funds and Appropriations. The proceeds derived from the sale of the Notes shall be used as follows: -11- A. Accrued interest and premium, if any, on the Notes shall be and is hereby appropriated for the purpose of paying the first interest due on the Notes and to such end is hereby ordered to be deposited into the "General Obligation Notes, Series 1994A, Note Fund" (the "Note Fund"), hereby created, which shall be the fund for the payment of principal of and interest on the Notes. Interest received from investments on deposit in the Note Fund shall be retained therein as a credit against future deposits or transferred to such other fund as the City Council may from time to time determine. B. The amount of $ 5,000.00 from the proceeds of the Notes shall be set aside in a separate fund, hereby created, and designated as the "Expense Fund." Money in said Fund shall be used to pay all costs and expenses incidental to the issuance of the Notes. C. The balance of the proceeds of the sale of the Notes shall be used to pay the operating expenses of the City as they come due. Section 10. Tax-Exemption and Non-Arbitrage Covenant. The City covenants that the amount of the Notes will not exceed the maximum cumulative cash flow deficit in the general fund for the term during which the Notes will be outstanding; and the City will take no action with respect to the proceeds of the Notes which would result in making the interest payable on the Notes subject to federal income taxes by reason of the Notes being classified as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986 (the "Code"), or rulings or regulations promulgated thereunder. The City also agrees and covenants with the purchasers and holders of the Notes 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 Notes and affects the tax-exempt status of the Notes. Without limiting the generality of the foregoing, the City agrees: (a) through its officers, to make such further specific covenants, representations and assurances as may be necessary or advisable; (b) to comply with all representations, covenants and assurances contained in a certification regarding tax exemption to be prepared by counsel approving the Notes; (c) to consult with such counsel and to comply with such advice as may be given; (d) to pay to the United States, as necessary, such sums of money -12- representing required rebates of excess arbitrage profits relating to the Notes; (e) to file such forms, statements and supporting documents as may be required and in a timely manner; and (f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the City in such compliance. Section 11. Designation as Qualified Tax-Exempt Obligations. The City hereby covenants that the City and all subordinate entities thereof will not issue any obligations of any kind or for any purpose in excess of the total aggregate amount of $10,000,000 during the calendar year of issuance of the Notes, and the City hereby designates the Notes as obligations being issued for the purposes of meeting the requirements of Section 265(b)(3) of the Code regarding qualified tax-exempt obligations. Section 18. Publication of Ordinance. That a full, true and complete copy of this ordinance be published in pamphlet form within ten days after passage. -13- Section 12. Superseder and Effective Date. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this Ordinance shall be in full force and effect immediately upon its passage, approval and publication. AYES: rniincilmembers Fox . Gilliam, Schock, Walters , anr9 VParman _ NAYS: WQA Q ABSENT: Mayor VanDeVoorde and Councilmember Popple ADOPTED: February 23, 1994 APPROVED: February 23 , 1994 Mayor Pro Tem, City of Elgin Kane and Cook Counties, Illinois Recorded In City Records: February 24 , 1994. Published in pamphlet form by authority of the City Council on Feb. 24 , 1994. Attest: City Clerk, City of Elgin Kane and Cook Counties, Illinois -14- STATE OF ILLINOIS ) SS COUNTY OF KANE ) CERTIFICATION OF MINUTES AND ORDINANCE I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes and files of the City and of the City Council (the "City Council") thereof. I do further certify that the foregoing is a full, true and complete transcript of that portion of the minutes of the meeting of the City Council held on the 23rd day of February, 1994, insofar as the same relates to the adoption of an ordinance entitled: AN ORDINANCE providing for the issuance of $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the City Council on the adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given to all newspapers, radio or television stations and other news media requesting such notice; and that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and the Illinois Municipal Code, as amended, and that the City Council has complied with all of the provisions of said Act and said Code and with all of the procedural rules of the City Council in the adoption of said ordinance. IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the City, this 23xd day of February- , 1994. City Clerk (SEAL) State of Illinois) County of Kane ) ss . City of Elgin ) CERTIFICATE OF CITY CLERK I, Dolonna Mecum, DO HEREBY CERTIFY that I am the City Clerk of the City of Elgin, in the Counties of Kane and Cook in the State of Illinois, and that as such City Clerk I am the keeper and custodian of the files and records of said City of Elgin and the seal thereof. I DO FURTHER CERTIFY that the attached is a full, true, and correct copy of Ordinance No. S3-94 entitled "An Ordinance Providing for the Issuance of $3, 000, 000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois" passed February 23, 1994 , the original of which is entrusted to my care for safe keeping. In Witness Whereof, I have hereunto set my hand and affixed the corporate seal of the City of Elgin at the said City in the County and State aforesaid this llth day of March, 1994 . City Clerk (SEAL) ORDINANCE NUMBER S3-94 AN ORDINANCE providing for the issuance of $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Dane and Cook Counties, Illinois. WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois (the "City") has a population in excess of 25,000 as determined by the last official census, and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the City is a home rule unit and may exercise any power or perform any function pertaining to its government and affairs including, but not limited to, the power to tax and to incur debt; and WHEREAS, pursuant to the provisions of said Section 6, the City has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within forty (40) years from the time it is incurred without prior referendum approval; and WHEREAS, the City Council does hereby determine that in light of the current financial condition of the City it is advisable and in the best interests of the City to borrow $3,000,000 at this time and, in evidence of such borrowing, issue its full faith and credit Notes in the principal amount of$3,000,000; Now THEREFORE Be It Ordained by the City Council of the City of Elgin, Kane and Cook Counties, Illinois, in the exercise of its home rule powers, as follows: Section I. 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: "City" means the City of Elgin, Kane and Cook Counties, Illinois. "City Council" means the City Council of the City. "Code" means the Internal Revenue Code of 1986. "Note" or "Notes" means one or more, as applicable, of the $3,000,000 General Obligation Notes, Series 1994A, authorized to be issued by this Ordinance. "Note Register" means the books of the City kept by the Note Registrar to evidence the registration and transfer of the Notes. "Note Registrar" means the Treasurer of the City or a successor thereto or a successor designated as Note Registrar hereunder. "Ordinance" means this Ordinance, number 53-94. , and passed by the City Council on the 23rd day of February, 1994. "Paying Agent" means the Treasurer of the City, or a successor thereto or a successor designated as Paying Agent hereunder. "Tax-exempt" means, with respect to the Notes, the status of interest paid and received thereon as not includible in the gross income of the owners thereof under the Code 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, in computing the environmental tax imposed on certain corporations and in computing the "branch profits tax" imposed on certain foreign corporations. Section 2. Incorporation of Preambles. The City Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Determination To Issue Notes. It is necessary and in the best interests of the City to pay the current operating expenses of the City and to pay all related costs and expenses incidental thereto, and to borrow money and issue the Notes for such purposes. It is hereby found and determined that such borrowing of money is necessary for the welfare -2- of the government and affairs of the City, is for a proper public purpose or purposes and is in the public interest, and these findings and determinations shall be deemed conclusive. Section 4. Note Details. For the purposes set forth above and to pay all related costs and expenses incidental thereto, there shall be issued and sold the Notes in the principal amount of $3,000,000. The Notes shall each be designated "General Obligation Note, Series 1994A"; be dated the date of issuance; and shall also bear the date of authentication thereof. The Notes shall be in fully registered form, shall be in denominations of $1,000,000 or integral multiples thereof, shall be numbered consecutively in such fashion as shall be determined by the Note Registrar, and shall become due and payable on November 1, 1994 (being subject to the right of prior redemption hereinafter set forth) and - bearing interest at the rate of 2.7 3 percent per annum. The Notes shall bear interest from their dated date as herein provided, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable at maturity. Interest on each Note shall be paid by check or draft of the Paying Agent, payable upon presentation thereof in lawful money of the United States of America, to the person in whose name such Note is registered at the close of business on the 1 st day of the month next preceding the interest payment date and shall be 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 Note Registrar. The principal of the Notes shall be payable in lawful money of the United States of America upon presentation thereof at the office of the Paying Agent. Section S. Execution; Authentication. The Notes shall be executed on behalf of the City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, as they may determine, and shall have impressed or -3- imprinted thereon the corporate seal or facsimile thereof of the City. In case any such officer whose signature shall appear on any Note shall cease to be such officer before the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. All Notes shall have thereon a certificate of authentication, substantially in the form hereinafter set forth, duly executed by the Note Registrar as authenticating agent of the City and showing the date of authentication. No Note 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 Note Registrar by manual signature, and such certificate of authentication upon any such Note shall be conclusive evidence that such Note has been authenticated and delivered under this Ordinance. The certificate of authentication on any Note shall be deemed to have been executed by it if signed by an authorized officer of the Note Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Notes issued hereunder. Section 6. Registration of Notes;Persons Treated as Owners;Redemption. A. Registration of Notes . The City shall cause the Note Register to be kept at the office of the Note Registrar in the City; and the same is hereby constituted and appointed the registrar of the City for the Notes. The City is authorized to prepare, and the Note Registrar or such other agent as the City may designate shall keep custody of, multiple Note blanks executed by the City for use in the transfer and exchange of Notes. Any fully registered Note or Notes may be exchanged upon presentation at the office of the Note Registrar, duly endorsed by, or accompanied by a written instrument or instruments authorizing such exchange in form satisfactory to the Note Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, for a like -4- aggregate principal amount of Note or Notes of the same maturity, of other authorized denominations and of the same interest rate. Upon surrender for transfer of any Note at the office of the Note Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Note Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, the City shall execute and the Note Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Note or Notes of the same maturity, of authorized denominations, for a like aggregate principal amount and interest rate. The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1 st day of the month next preceding an interest payment date .to such interest payment date or after the giving of notice of redemption as provided herein. The execution by the City of any fully registered Note shall constitute full and due authorization of such Note, and the Note Registrar shall thereby be authorized to authenticate, date and deliver such Note; provided, however, the principal amount of Notes of each maturity authenticated by the Note Registrar shall not at any one time exceed the authorized principal amount of Notes for such maturity less the amount of such Notes which have been paid. The person in whose name any Note 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 Note shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Note to the extent of the sum or sums so paid. -5- No service charge shall be made for any such transfer or exchange of Notes, but the City or the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such transfer or exchange of Notes. B. Option Redemption. The Notes are redeemable prior to maturity at the option of the City, in whole or in part, on any date on or after October 1, 1994 and if less than all of the outstanding Notes are to be redeemed they shall be called in any order designated by the City and by lot within the maturity, the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. Notice of the call for any such redemption shall be given by the Note Registrar on behalf of the City, by mailing the redemption notice by first class mail at least 5 days prior to the date fixed for redemption to the registered owner of the Note at the address shown on the Note Registrar. Notice of such redemption having been properly given the Note or portion of Notes redeemed shall, on the redemption date, become due and payable at the redemption price and from after such date (unless the City shall default in the payment of the redemption price) such Note or portions of Notes shall cease to bear interest. Notice of any such redemption may be waived in writing by the registered owner of a Note entitled to receive such notice, either before or after the event. Section 7. Form of Note. The Notes shall be in substantially the form hereinafter set forth; provided, however, that if the text of the Note is to be printed in its entirety on the front side of the Note, then paragraph [2] and the legend "See Reverse Side for Additional Provisions" shall be omitted and paragraphs [6] through [9] shall be inserted immediately after paragraph [1]: -6- [Form of Note - Front Side] REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE, SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: % Date: November 1, 1994 Date: , 1994 Registered Owner: Principal Amount: [1] KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable, at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City, as paying agent (the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of -7- the City maintained by the City Treasurer of the City (the "Note Registrar"), at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent, 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 Note Registrar. [2] Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. [3] It is hereby certified and recited that all conditions, acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done, happened and been performed in regular and due form and time as required by law and; that the indebtedness of the City, represented by the Notes, and including all other indebtedness of the City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other lawful limitation. [4] This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. [5] IN WITNESS WHEREOF the City of Elgin, Kane and Cook Counties, Illinois, by its City Council, has caused this Note to be executed by 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, City of Elgin Kane and Cook Counties, Illinois Attest: City Clerk, City of Elgin Kane and Cook Counties, Illinois (SEAL) Date of Authentication: , CERTIFICATE OF Note Registrar and Paying Agent: AUTHENTICATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. CITY TREASURER as Note Registrar sy Authorized Signer -9- [Form of Note - Reverse Side] City of Elgin, Kane and Cook Counties, Illinois General Obligation Note Series 1994A [6] This Note is one of a series of Notes (the "Notes") in the aggregate principal amount of $3,000,000 issued by the City for the purpose of meeting the working cash needs of the City and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Notes (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of Section 6 of Article VII of the Constitution of the State of Illinois, and with the Ordinance, which has been duly passed by the City Council and published, in all respects as by law required. This Note and the other Notes of such series are redeemable prior to maturity at the option of the City, in whole or in part on October 1, 1994 and on any date thereafter and if less than all of the outstanding Notes are to be redeemed, they shall be called in any order designated by the City, the Notes to be redeemed at the redemption price of par plus accrued interest to the date fixed for redemption. [7] The Notes are issued in fully registered form in the denominations of $1,000,000 or authorized integral multiples thereof. This Note may be exchanged upon presentation and surrender for cancellation hereof at the office of the Note Registrar, but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, for a like aggregate principal amount of Notes of the same maturity and interest rate of other authorized denominations. This Note is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the office of the Note Registrar in the but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon presentation and surrender for cancellation of this Note. Upon such transfer a new Note or Notes of authorized denomination(s) of the same maturity and interest rate and for the same aggregate principal amount will be issued to the transferee in exchange therefor. [8] The Note Registrar shall not be required to transfer or exchange any Note during the period from the 1st day of the month next preceding an interest payment date to such interest payment date or after the giving of notice of redemption of a Note. [9] The City, the Note Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City, the Note Registrar and the Paying Agent shall not be affected by any notice to the contrary. -10- ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint , as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. Section 8. Sale of Notes. The Notes shall be executed as in this Ordinance provided as soon after the passage hereof as may be, shall be deposited with the City Treasurer, and shall be by the Treasurer delivered to the purchaser thereof, namely, Old Kent Bank-Illinois, upon payment of the purchase price agreed upon, the same being $ 3,000, 176 plus accrued interest to date of delivery. The contract for the sale of the Notes to the purchaser is hereby in all respects ratified, approved and confirmed, it being hereby declared that no person holding any office of the City, either by election or appointment, is in any manner interested, either directly or indirectly, in his own name or the name of any other person, association, trust or corporation, in such contract. Section 9. Creation of Funds and Appropriations. The proceeds derived from the sale of the Notes shall be used as follows: -11- A. Accrued interest and premium, if any, on the Notes shall be and is hereby appropriated for the purpose of paying the first interest due on the Notes and to such end is hereby ordered to be deposited into the "General Obligation Notes, Series 1994A, Note Fund" (the "Note Fund"), hereby created, which shall be the fund for the payment of principal of and interest on the Notes. Interest received from investments on deposit in the Note Fund shall be retained therein as a credit against future deposits or transferred to such other fund as the City Council may from time to time determine. B. The amount of $ 5,000.00 from the proceeds of the Notes shall be set aside in a separate fund, hereby created, and designated as the "Expense Fund." Money in said Fund shall be used to pay all costs and expenses incidental to the issuance of the Notes. C. The balance of the proceeds of the sale of the Notes shall be used to pay the operating expenses of the City as they come due. Section 10. Tax-Exemption and Non-Arbitrage Covenant. The City covenants that the amount of the Notes will not exceed the maximum cumulative cash flow deficit in the general fund for the term during which the Notes will be outstanding; and the City will take no action with respect to the proceeds of the Notes which would result in making the interest payable on the Notes subject to federal income taxes by reason of the Notes being classified as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986 (the "Code"), or rulings or regulations promulgated thereunder. The City also agrees and covenants with the purchasers and holders of the Notes 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 Notes and affects the tax-exempt status of the Notes. Without limiting the generality of the foregoing, the City agrees: (a) through its officers, to make such further specific covenants, representations and assurances as may be necessary or advisable; (b) to comply with all representations, covenants and assurances contained in a certification regarding tax exemption to be prepared by counsel approving the Notes; (c) to consult with such counsel and to comply with such advice as may be given; (d) to pay to the United States, as necessary, such sums of money -12- representing required rebates of excess arbitrage profits relating to the Notes; (e) to file such forms, statements and supporting documents as may be required and in a timely manner; and (f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the City in such compliance. Section 11. Designation as Qualified Tax-Exempt Obligations. The City hereby covenants that the City and all subordinate entities thereof will not issue any obligations of any kind or for any purpose in excess of the total aggregate amount of $10,000,000 during the calendar year of issuance of the Notes, and the City hereby designates the Notes as obligations being issued for the purposes of meeting the requirements of Section 265(b)(3) of the Code regarding qualified tax-exempt obligations. Section 18. Publication of Ordinance. That a full, true and complete copy of this ordinance be published in pamphlet form within ten days after passage. -13- Section 12. Superseder and Effective Date. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this Ordinance shall be in full force and effect immediately upon its passage, approval and publication. AYES: rouncilmembers Fox. Gilliam, Schock, Walters , _antes_y P a rm a n NAYS: None ABSENT: Mayor VanDeVoorde and Councilmember Popple ADOPTED: February 23, 1994 APPROVED: February 23 , 1994 Mayor Pro Tem, City of Elgin Kane and Cook Counties, Illinois Recorded In City Records: February 24 , 1994. Published in pamphlet form by authority of the City Council on Feb. 24 , 1994. I Attest: 9 - City Clerk, City of Elgin Kane and Cook Counties, Illinois -14- REGISTERED REGISTERED NO. 1 $1,000,000 UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE,SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: 2.73`90 Date: November 1, 1994 Date: March 17, 1994 REGISTERED OWNER: OLD KENT BANK PRINCIPAL AMOUNT: ONE MILLION DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, Illinois,a municipality, home rule unit 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for,except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable, at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City,as paying agent(the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the City Treasurer of the City (the "Note Registrar"), at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent,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 Note Registrar. Reference is hereby made to the further provisions of this Note 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 conditions,acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done,happened and been performed in regular and due form and time as required by law and;that the indebtedness of the City,represented by the Notes, and including all other indebtedness of the City,howsoever evidenced or incurred,does not exceed any constitutional or statutory or other lawful limitation. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. IN WITNESS WHEREOF the City of Elgin,Kane and Cook Counties,Illinois,by its City Council,has caused this Note to be executed by 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�tobe'mpressed or reproduced hereon,all as appearing hereon and as of the Dated Date identified above. Mayor,City of Elgin /Kane and Cook Counties,Illinois Attes 9 City Clerk,City of Elgin Kane and Cook Counties,Illinois (SEAL) Date of Authentication: r i,al\, Y CERTIFICATE OF Note Registrar and Paying Agent: AU TIENI'ICATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties,Illinois. C SURER as Dote tray r By Authorized Signer 233733.01.02 2010734/HER:3/8/94 REGISIERED REGISTERED NO.2 $1,000,000 UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE,SERIES 1994A See Reverse Side for Additional Provisions Interest Maturity Dated Rate: 2.73% Date: November 1, 1994 Date: March 17, 1994 REGISTERED OWNER: OLD KENT BANK PRINCIPAL AMOUNT: ONE MILLION DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, Illinois,a municipality, home rule unit 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable, at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City,as paying agent(the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the City Treasurer of the City (the "Note Registrar"), at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent,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 Note Registrar. Reference is hereby made to the further provisions of this Note 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 conditions,acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done,happened and been performed in regular and due form and time as required by law and;that the indebtedness of the City,represented by the Notes, and including all other indebtedness of the City,howsoever evidenced or incurred,does not exceed any constitutional or statutory or other lawful limitation. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. IN WITNESS WHEREOF the City of Elgin,Kane and Cook Counties,Illinois,by its City Council,has caused this Note to be executed by 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,City of Elgin Kane and Cook Counties,Illinois Attest: City Clerk,City of Elgin Kane and Cook Counties,Illinois (SEAL) Date of Authentication: r y CERTIFICATE OF Note Registrar and Paying Agent: AUTHE,MCATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. CITY TREASURER as Note Registrar By Authorized Signer REGIS`IERED REGISTERED NO.3 $1,000,000 UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN GENERAL OBLIGATION NOTE,SERIES 1994A See Reverse Side for Additional Provisions :::] Interest Maturity Dated Rate: 2.73% Date: November 1, 1994 Date: March 17, 1994 REGISTERED OWNER OLD KENT BANK PRINCIPAL AMOUNT: ONE MILLION DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, Illinois,a municipality, home rule unit 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 later of the Dated Date of this Note identified above or from the most recent interest payment date to which interest has been paid or duly provided for, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable,at the Interest Rate per annum identified above, such interest to be payable on November 1, 1994 and until said Principal Amount is paid. The principal of this Note is payable in lawful money of the United States of America upon presentation hereof at the office of the City Treasurer of the City,as paying agent(the "Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the City Treasurer of the City (the "Note Registrar"),at the close of business on the 1st day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent,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 Note Registrar. Reference is hereby made to the further provisions of this Note 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 conditions,acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Note have existed and have been properly done,happened and been performed in regular and due form and time as required by law and,that the indebtedness of the City,represented by the Notes, and including all other indebtedness of the City,howsoever evidenced or incurred,does not exceed any constitutional or statutory or other lawful limitation. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Note Registrar. IN WITNESS WHEREOF the City of Elgin,Kane and Cook Counties,Illinois,by its City Council,has caused this Note to be executed by 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 brfmpressed or reproduced hereon,all as appearing hereon and as of the Dated Date identified above, Mayor,City of Elgin Kane and Cook Counties,Illinois Attest: City Clerk, City of Elgin Kane and Cook Counties,Illinois (SEAL) /C� Date of Authentication: fiI //1L f 7 r l g y CERTIFICATE OF Note Registrar and Paying Agent: AUTHENTICATION City Treasurer This Note is one of the Notes described in the within mentioned Ordinance and is one of the $3,000,000 General Obligation Notes, Series 1994A, of the City of Elgin, Kane and Cook Counties, Illinois. CTTY SURER as Not R 'strar By a ,'%,a Authorized Signer CLOSING CERTIFICATE We, the undersigned, being authorized and directed to sign the notes hereinafter described, do hereby certify as follows that: 1. We are now and were at the time of signing said notes the duly qualified and acting officials of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), as indicated by the titles appended to our respective signatures, and as such officials we have executed $3,000,000 General Obligation Notes, Series 1994A (the "Notes"), of the City, fully registered and without coupons, dated March 17, 1994, due on November 1, 1994, bearing interest at the rate of 2.73% per annum, for the purposes, numbered and in the aggregate principal amounts as follows: AGGREGATE PRINCIPAL PURPOSES NUMBERED AMOUNTS Corporate 1 $1,000,000 Corporate 2 $1,000,000 Corporate 3 $1,000,000 by signing the Notes in the manner and capacity indicated by our respective signatures and titles appended hereto. 2. There is no litigation or controversy pending or threatened questioning or affecting in any manner whatsoever the corporate existence of the City, the boundaries thereof, the right of the City to levy taxes for City purposes, the title of any of its present officials to their respective offices, the proceedings incident to the issue or sale of the Notes or the issue, sale or validity of the Notes, and none of the proceedings providing for the issue or sale of the Notes have been revoked, rescinded or amended. 3. To the best of our knowledge and belief all documents, information or materials, together with any supplements thereto, distributed and all representations made by the City and by its officials in any manner whatsoever in connection with the sale of the Notes did not at any time and do not now contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading. 4. One purpose of the balance of this Certificate is to set forth various facts regarding the Notes and to establish the expectations of the City Council of the City (the "City Council") and the City as to future events regarding the Notes and the use of Note proceeds. The certifications and representations made herein and at the Closing (as hereinafter defined) are intended, and may be relied upon, as a certification given in good faith described in Section 1.148-2(b)(2) of the United States Treasury Regulations (the "Regulations") dealing with the tax-exempt bond provisions of the Internal Revenue Code of 1986, as amended (the "Code"). The certifications, covenants and representations contained 233764.01.06 2010734/hhh:March 8, 1994 herein and at the time of the Closing are made for the benefit of the owners from time to time of the Notes. 5. The Notes are being issued in anticipation of the taxes (the "Taxes") levied by the City for the year 1993 for the purposes described in paragraph 1 above (the "Purposes") in a prudent manner consistent with the revenue projections of the City in order to provide money that is not otherwise expected to be available with which to meet ordinary and necessary disbursements for the Purposes, and all of the proceeds thereof are needed for the Purposes. 6. The principal proceeds of the Notes will be deposited into the corporate fund of the City (the "Fund") and will be applied with due diligence to disbursements for the Purposes. The Purposes consist of the payment of current expenses of the City that may legally and lawfully be paid from the Fund and from no other source. 7. There will be no accrued interest or premium received upon the sale of the Notes, except for a $176.00 premium that will also be deposited into the Fund. Any costs of issuance to be paid by the City will be paid from the Fund. 8. Earnings on investment of moneys in the Fund will be credited to the Fund or to the extent permitted by law, will be transferred to other operating funds of the City. Such investment earnings will be commingled with substantial revenues from the governmental operations of the City, and the earnings are reasonably expected to be spent for governmental purposes within six (6) months of the date earned. No proceeds of the Notes will be used more than 30 days after the date of issue of the Notes for the purpose of paying any principal or interest on any issue of bonds, notes, certificates or warrants or on any installment contract or other obligation of the City or for the purpose of replacing any funds of the City used for such purpose. 9. All of the Sale Proceeds will be expended for the Purposes on or before thirteen (13) months following the date of issue of the Notes. For purposes of this Certificate, "Sale Proceeds" means amounts actually or constructively received from the sale of the Notes, including (a) amounts used to pay underwriters' discount or compensation and accrued interest, other than accrued interest for a period not greater than one year before Closing but only if it is to be paid within one year after Closing, and (b) amounts derived from the sale of any right that is part of the terms of a note or is otherwise associated with a note (e.g., a redemption right); and "Closing" means the first date on which the City receives the purchase price for the Notes and is not earlier than the date on which interest begins to accrue on the Notes for federal income tax purposes. 10. The Notes will not be issued in an amount which will be greater than the maximum anticipated Cumulative Cash Flow Deficit (determined on a cash, not an accrual, basis) for the Fund, as more specifically set forth in the Cash Flow Estimates for the Fund delivered in connection with the issuance of the Notes (the "Cash Flows"), and the amounts of receipts and disbursements from the various sources indicated on the Cash Flows are accurately stated and reflect the true and correct financial status and expectations of the City. -2- For purposes of this Statement, "Cumulative Cash Flow Deficit" means the reasonably expected Safe Harbor Cumulative Cash Flow Deficit plus the Permitted Working Capital Reserve; "Safe Harbor Cumulative Cash Flow Deficit" means as of the date of computation the excess of the expenses paid from the Fund during the Cumulative Cash Flow Period which would ordinarily be paid out of or financed by anticipated tax or other revenues over the aggregate Safe Harbor Available Amount (other than from the proceeds of the Notes) during such period for the payment of such expenses from such Funds; "Safe Harbor Available Amount" means any amount that is available to the City for non-capital expenditure purposes of the type financed by the Notes, and the Safe Harbor Available Amount excludes proceeds of the Notes but includes cash, investments, and other amounts held in accounts or otherwise by the City or a related party if those amounts may be used by the City for non-capital expenditures of the type financed by of the Notes without legislative or judicial action and without a legislative, judicial or contractual requirement that those amounts be reimbursed; "Working Capital Reserve" means, as of a given test date, cash or investments reasonably held on such test date by the City, or any member of the same Controlled Group as the City, as a reserve for the Purposes, and such amount will be reasonable to the extent it does not exceed 5 percent of the actual expenditures of the City paid from current revenues for the Purposes during the full fiscal year preceding any test date; "Cumulative Cash Flow Period" means the period beginning on the date of the Closing and ending on the date of a computation of a Cumulative Cash Flow Deficit; and "Available Amount" means with respect to the Fund, any amount that is available to the City for non- capital expenditure purposes of the type financed by the Notes, and Available Amount excludes a Working Capital Reserve and proceeds of the Notes but includes cash, investments, and other amounts held in accounts or otherwise by the City or a related party if those amounts may be used by the City for non-capital expenditures of the type financed by such portion of the Notes without legislative or judicial action and without a legislative, judicial or contractual requirement that those amounts be reimbursed. 11. As set forth in the Cash Flows, the Maximum Cumulative Cash Flow Deficit for the Fund is expected to be at least greater than or equal to the amount of the Notes plus investment earnings thereon occurring during the 13 months after Closing. Additionally, the maximum Safe Harbor Cumulative Cash Flow Deficit for the Fund is reasonably expected to occur not be later than 13 months after the Closing in an amount in excess of 90% of the expected proceeds of the Notes deposited (including investment earnings). 12. None of the proceeds of the Notes will be used to reimburse the City for an expenditure paid prior to the date of the Closing. 13. All Sale Proceeds, plus investment earnings, will be used, directly or indirectly, in accordance with the provisions of this Certificate, other than the following: (a) costs of issuing the Notes and qualified administrative costs of investments within the meaning of Sections 1.148-5(e)(2)(i), 1.148-5(e)(2)(ii) or 1.148-5(e)(3) of the Regulations; -3- (b) payments of rebate or yield reduction payments made to the United States under the Regulations; (c) principal or interest on an issue paid from unexpected excess sale or investment proceeds; and (d) principal or interest on an issue paid from investment earnings on a reserve or replacement fund that are deposited in a bona fide debt service fund. 14. No Gross Proceeds may be spent for non-capital purposes pursuant to paragraph 14 hereof if the expenditure merely substitutes Gross Proceeds for other amounts that would have been used to make such expenditures in a manner that gives rise to Replacement Proceeds. 15. The City acknowledges that if Gross Proceeds of the Notes are spent for non- capital purposes other than as permitted by paragraphs 13, 14 and 19 to 22, inclusive, hereof, a like amount of then available funds of the City will be treated as unspent proceeds of the Notes. 16. Not more than fifty percent (50%) of the proceeds of the Notes (including investment earnings thereon) are or will be invested in investments (other than Tax Exempt Obligations) having a yield that is substantially guaranteed for four (4) years or more. No portion of the Notes is being issued solely for the purpose of investing the proceeds thereof at a yield higher than the yield on the Notes. For purposes of this Certificate, "Tax Exempt Obligations" means (i) obligations described in Section 103(a) of the Code, the interest on which is not includable in the gross income of any owner thereof for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax imposed by Section 55 of the Code; (ii) interests in regulated investment companies to the extent that at least 95 percent of the income to the holder of the interest is interest that is excludable from gross income under Section 103 of the Code of any owner thereof for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax imposed by Section 55 of the Code; and (iii) certificates of indebtedness issued by the United States Treasury pursuant to the Demand Deposit State and Local Government Series program described in 31 C.F.R. part 344. 17. None of the proceeds of the Notes will be used to make grants to any person. 18. Neither the City nor any member of the same Controlled Group as the City has entered into or expects to enter into any hedge (e.g., interest rate swap, interest rate cap, futures contract, forward contract or an option) to reduce the risk of interest rate changes with respect to the Notes. The City acknowledges that any such hedge could affect the calculation of the yield on the Notes under the Regulations. For purposes of this Certificate, "Control or Controlled" means possession of either of the following rights or powers and the rights or powers are discretionary and non-ministerial: -4- (i) The right or power both to approve and to remove without cause a controlling portion of the governing body of another entity (the "Controlled Entity") entity; or (ii) The right or power to require the use of funds or assets of the controlled entity for any purpose of the entity controlling the controlled entity (the "controlling entity"). For purposes of this Certificate, "Controlled Group" means a group of entities directly or indirectly Controlled by the same entity or group of entities, including the entity that Controls the other entities. A controlling entity indirectly Controls all entities Controlled, directly or indirectly, by any entity Controlled by such controlling entity. 19. Amounts on deposit from time to time in the Fund are the only amounts expected to be available to pay expenditures paid out of or financed by the revenues of the Fund for the Purposes. No other funds or accounts of the City may be invaded under the laws of the State of Illinois to pay expenditures to be paid from the Fund, without City Council, legislative or judicial action, and without a City Council, legislative, judicial or contractual requirement that these funds or accounts be reimbursed. The City maintains the Fund in its normal course of operations as separate and independent fiscal and accounting entities for specific purposes or objectives. The beginning estimated cash balance for the Fund in the Cash Flows includes all cash, marketable securities and other amounts held in or allocable to the Fund. The City is not a member of any Controlled Group which has any funds (other than the Fund) that are available to be used for the purposes for which the Notes are being issued. In addition, the City has not and will not enter into any contractual arrangement, or cause legislative or judicial action, the principal purpose of which is to keep funds of the City from being available to finance the Purposes of the type being financed by the Notes. 20. To the extent permitted by the Code and Regulations, with respect to the Fund to which the proceeds of the Notes will be loaned, the City elects to treat proceeds as being spent with respect to the Purposes prior to the moneys constituting the balances on hand in such funds immediately prior to the deposit of Note proceeds therein and prior to revenues arising from sources other than proceeds of the Notes (except as specifically designated by the City). The City will treat as large an amount of non-Note proceeds as is reasonable as a Working Capital Reserve. 21. Notwithstanding paragraph 20 hereof, for purposes of determining any amounts payable to the United States under Section 148(f) of the Code, and for purposes of determining the applicability of Section 148(f) of the Code to the Notes, proceeds of the Notes on deposit in the Fund, will be treated as entirely expended only on the earlier of (i) the first day after the date of issue that the Safe Harbor Cumulative Cash Flow Deficit of the General Funds exceeds 90% of the proceeds of the Notes, and will otherwise be treated as expended only to meet actual cumulative cash flow deficits, or (ii) the date all Sale Proceeds -5- of the Notes including investment earnings thereon are treated as expended as described in paragraph 29 hereof. 22. To the extent that Sale Proceeds of the Notes are maintained in a separate segregated fund, the City will not withdraw amounts from such fund except to pay for Purposes for which there are no Available Amounts or to pay for capital expenditures. 23. Except as otherwise provided herein, after the issuance of the Notes, neither the City nor any member of the same Controlled Group as the City has on hand any property, including cash and securities ("Property"), that is legally required or otherwise restricted (no matter where held or the source thereof) to be used, directly or indirectly, for the Purposes. 24. Except as otherwise provided herein, neither the City nor any member of the same Controlled Group as the City has established or expects to establish any fund or account (regardless of where held or the source thereof) that may result in the creation of Replacement Proceeds. For purposes of this Statement, "Replacement Proceeds" means (a) amounts in debt service funds, redemption funds, reserve funds, replacement funds or any similar funds, to the extent reasonably expected to be used directly or indirectly to pay principal or interest on the Notes, (b) any amounts for which there is provided, directly or indirectly, a reasonable assurance that the amount will be available to pay principal or interest on the Notes or the obligations under any credit enhancement or liquidity device with respect to the Notes, even if the City encounters financial difficulties, including any liquidity device or negative pledge to the extent described in Section 1.148-1(c)(3)(ii) of the Regulations, and (c) any other amounts treated as replacement proceeds under Section 1.148-1(c) of the Regulations. 25. Except as otherwise provided herein, no Property has been or is expected to be pledged or otherwise restricted (no matter where held or the source thereof) to provide reasonable assurance, in the event the City or any member of the same Controlled Group as the City encounters financial difficulty, of its availability to be used, directly or indirectly, for the payment of amounts due or to become due on the Notes or any credit enhancement or liquidity device related to the Notes. No compensating balance, liquidity account, negative pledge or similar arrangement exists with respect to, in any way, the Notes or any credit enhancement or liquidity device related to the Notes. 26. The term of the Notes is not longer than is reasonably necessary for the governmental purposes of the Notes. The maturity schedule for the Notes (the "Principal Payment Schedule") was selected based on an examination of revenues expected to be available to pay debt service on the Notes. Any quicker Principal Payment Schedule would have placed an undue burden on the City, and would have been inconsistent with the governmental purposes of the Notes. 27. For purposes of this Certificate, "Gross Proceeds" means (a) Sale Proceeds, (b) any Replacement Proceeds, and (c) amounts actually or constructively received from the investment and reinvestment of amounts described above. -6- 28. The City is a governmental unit that has the power (not contingent on approval by another entity) to impose a tax (or to cause another entity to impose a tax) of general applicability (not limited to a small number of persons) that, when collected, may be used for the governmental purposes of the City. The City is not Controlled by any other governmental unit or political subdivision. No part of the Notes is or will be a "private activity bond" (as defined in Section 141 of the Code). Ninety-five percent (95%) or more of the proceeds of the Notes will be used for local governmental activities of the City. The City hereby covenants and agrees, to and for the benefit of the holders from time to time of the Notes, that the City will comply generally with the requirements of Section 148(f) of the Code, including, without limitation, the entering into such Tax Certificates and making of such representations as may be determined by Chapman and Cutler, or any other nationally recognized firm of attorneys experienced in the field of municipal bonds whose opinions are generally accepted by purchasers of municipal bonds ("Bond Counsel") to be necessary and sufficient for the purpose of such undertaking. The City will make, or cause to be made, rebate payments with respect to the Notes in accordance with law. The City certifies that as of the date hereof, no tax-exempt bonds or other obligations (other than the Notes) have been issued by the City, any entity that issues tax-exempt bonds on behalf of the City or any entity Controlled by the City during the calendar year 1994. The City may create and establish a special trust fund in the name of the City to be known as the Rebate Fund (the "Rebate Fund"), which shall be continuously held, invested, expended and accounted for in accordance with this Statement. Moneys in the Rebate Fund shall not be considered moneys held for the benefit of the Noteholders, or, except as provided in paragraph 48 hereof, for the benefit of the City. Except as provided in the Regulations, moneys in the Rebate Fund (including earnings and deposits therein) shall be held in trust and held for future payment to the United States Government as required by Section 148(f) of the Code and by the Regulations and as contemplated under the provisions of this Statement. The City agrees to keep and retain or cause to be kept and retained until November 1, 2000, adequate records with respect to the investment of all Gross Proceeds and amounts in the Rebate Fund. Such records shall include (i) purchase price; (ii) purchase date; (iii) type of investment; (iv) accrued interest paid; (v) interest rate (if applicable); (vi) principal amount; (vii) maturity date; (viii) interest payment date (if applicable); (ix) date of liquidation; and (x) receipt upon liquidation. If any investment becomes Gross Proceeds of the Notes on a date other than the date such investment is purchased, the records required to be kept shall include the fair market value of such investment on the date it becomes Gross Proceeds. If any investment is retained after the date the last Note is retired, the records required to be kept shall include the fair market value of such investment on the date the last Note is retired. Amounts will be segregated wherever held to maintain these records. For purposes of this Statement, "Gross Proceeds" means (a) Sale Proceeds, (b) all amounts in the funds and accounts created with respect to the Notes (other than the Rebate Fund), (c) any Replacement Proceeds, and (d) amounts actually or constructively received from the investment and reinvestment of amounts described above. -7- In making investments the City shall take into account prudent investment standards and the date on which such moneys may be needed. Except as provided in the next sentence, the City shall provide that all amounts that constitute Gross Proceeds and any amounts in the Rebate Fund shall be invested at all times to the greatest extent practicable in investments permitted under the ordinance authorizing the Notes, and no amounts may be held as cash or be invested in zero yield investments other than obligations of the United States purchased directly from the United States. In the event moneys cannot be invested, other than as provided in this sentence, due to the denomination, price or availability of investments, such amounts shall be invested in an interest bearing deposit account of a bank with a yield not less than that paid to the general public or held uninvested to the minimum extent necessary. Gross Proceeds and any amounts in the Rebate Fund that are invested in certificates of deposit or in (i) any investment that has specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate and (ii) any agreement to supply investments on two or more future dates (e.g., a forward supply contract) ("GICs"), shall be invested only in accordance with the following provisions: (a) Investments in certificates of deposit of banks or savings and loan associations that have a fixed interest rate, fixed payment schedules and substantial penalties for early withdrawal shall be made only if (A) the yield on the certificate of deposit (i) is not less than the yield on reasonably comparable direct obligations of the United States, and (ii) is not less than the highest yield that is published or posted by the provider to be currently available from the provider on reasonably comparable certificates of deposit offered to the public, or (B) the investment is an investment in a GIC and qualifies under (b) below. (b) Investments in GICs shall be made only if (i) a bona fide solicitation is made for a specified GIC and at least three bona fide bids from different providers that have no material financial interest in the Notes (e.g., as underwriters or brokers) are received, (ii) the highest-yielding GIC for which a qualifying bid is made (determined net of broker's fees) is purchased, (iii) the yield on the GIC (determined net of broker's fees) is not less than the yield then available from the provider on reasonably comparable GICs, if any, offered to other persons from a source of funds other than gross proceeds of tax-exempt bonds, (iv) the determination of the terms of the GIC takes into account as a significant factor the City's reasonably expected drawdown schedule for the amounts to be invested, exclusive of amounts deposited in debt service funds and reasonably required reserve or replacement funds, (v) the terms of the GIC, including collateral security requirements, are reasonable and (vi) the obligor on the investment contract certifies those administrative costs (as defined in Section 1.148-5(e) of the Regulations) that it is paying or expects to pay to third parties in connection with the GIC. Moneys to be rebated to the United States shall be invested in investments maturing on or prior to the anticipated rebate date. All investments of Gross Proceeds and amounts in the Rebate Fund shall be bought and sold at fair market value. The fair market value of an investment is the price at which a willing buyer would purchase the investment from a -8- willing seller in a bona fide, arm's length transaction. Except as described in (a) and (b) above and except for United States Treasury Obligations that are purchased directly from the United States Treasury, no investment that is not of a type traded on an established securities market, within the meaning of Section 1273 of the Code, will be purchased. 29. If the City realizes a Safe Harbor Cumulative Cash Flow Deficit in the Fund for a Cumulative Cash Flow Period ending prior to six months after the Closing equal to at least 90% of the Sale Proceeds of the Notes deposited into the Fund, the City shall maintain records evidencing the computation of such deficit. The computation of the Safe Harbor Cumulative Cash Flow Deficit for the Fund may be calculated using worksheets similar to the Cash Flows except that actual rather than projected revenues and expenditures must be used, the computation period need not end at the end of a month, and no reasonable cash balance may be added to the result on such worksheet. The City may request further assistance from Bond Counsel in determining if this safe harbor expenditure rule excepting the City from rebate is met. In addition, the City may treat proceeds of the Notes, including investment earnings thereon as being expended as of any date to the extent that such non- capital expenditures exceed the Available Amount calculated as of such date. In addition, the City may withdraw Gross Proceeds from the General Fund and treat such amounts as spent on any date to pay capital expenditures related to the Purposes pursuant to any reasonable and consistently applied accounting method and without regard to the Available Amount on such date. 30. (a) All Gross Proceeds, to the extent not exempted in (b) below, shall be invested at market prices and at a yield (after taking into account any yield reduction payments to the extent permitted by and made pursuant to Section 1.148-5(c) of the Regulations) not in excess of the yield on the Notes. For purposes of this Statement, "Yield" or "yield" means that discount rate which when used in computing the present value of all payments of principal and interest paid and to be paid on an obligation (using semiannual compounding on the basis of a 360-day year) produces an amount equal to the obligation's purchase price, including accrued interest, and the purchase price of the Notes is equal to the first offering price at which more than 10% of the principal amount of each maturity of the Notes is sold to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers). (b) The following may be invested without yield restriction: (i) amounts invested in Tax Exempt Obligations (to the extent permitted by this Certificate); (ii) amounts in any Rebate Fund created with respect to the Notes; (iii) Sale Proceeds in any Fund for a period of thirteen (13) months after Closing; (iv) all amounts for the first 30 days after they become Gross Proceeds; -9- (v) all amounts derived from the investment of proceeds for a period of one year from the date received; and (vi) an amount not to exceed $100,000. 31. Subject to paragraph 43 hereof, once moneys are subject to the yield limits of paragraph 31 hereof, they remain yield restricted until they cease to be Gross Proceeds. 32. Except for investments meeting the requirements of paragraph 30(b), investments of Gross Proceeds shall not be made in (i) investments constituting obligations of or guaranteed, directly or indirectly, by the United States (except obligations of the United States Treasury, obligations guaranteed by the Federal Housing Administration, The Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, the Student Loan Marketing Association, any guarantee by the Bonneville Power Authority pursuant to the Northwest Power Act (16 U.S.C. 839d) as in effect on the date of enactment of the Tax Reform Act of 1984, or investments in obligations issued pursuant to Section 21B(d)(3) of the Federal Home Loan Bank, as amended (e.g., Refcorp Strips)); or (ii) federally insured deposits or accounts (as defined in Section 149(b)(4)(B) of the Code). 33. None of the Gross Proceeds of the Notes will be used, directly or indirectly, in whole or in part, in any activity carried on by any person other than a state or local governmental unit. 34. The payment of the principal of or the interest on the Notes will not be, directly or indirectly (i) secured by any interest in (A) property used or to be used in any activity carried on by any person other than a state or local governmental unit or (B) payments in respect of such property, or (ii) derived from payments (whether or not by or to the City), in respect of property, or borrowed money, used or to be used in any activity carried on by any person other than a state or local governmental unit. 35. None of the Gross Proceeds of the Notes will be used, directly or indirectly, to make or finance loans to any persons. 36. No user of any capital improvement made with the proceeds of the Notes ("Project") other than a state or local governmental unit will use any Project on any basis other than the same basis as the general public; and no person other than a state or local governmental unit will be a user of any Project as a result of (i) ownership, (ii) actual or beneficial use pursuant to a lease or a management, service, incentive payment or output contract (except for a contract meeting the requirements of Revenue Procedure 93-19), or (iii) any other similar arrangement, agreement or understanding, whether written or oral. 37. Except for the investments of the type described in the last sentence of this paragraph, no portion of the payment of principal or interest on the Notes or any credit enhancement or liquidity device relating to the foregoing is or will be guaranteed, directly or indirectly (in whole or in part), by the United States (or any agency or instrumentality -10- thereof). No portion of the Gross Proceeds of the Notes has been or will be used to make loans the payment of principal or interest with respect to which is or will be guaranteed (in whole or in part) by the United States (or any agency or instrumentality thereof), or invested (directly or indirectly) in federally insured deposits or accounts. The foregoing provisions shall not apply to (a) proceeds of the Notes invested for an initial temporary period, as described in Section 148(c) of the Code, until such proceeds are needed for the purpose for which said obligations were issued, (b) investments in a bona fide debt service fund, as defined in Section 1.148-1(b) of the Regulations), (c) investments in a reserve fund that meets the requirements of Section 148(d) of the Code, (d) investments in obligations issued by the United States Treasury, or (e) any other investments permitted under regulations issued by the Internal Revenue Service as further described in paragraph 32 hereof. 38. The information contained in the Information Return for Tax-Exempt Governmental Obligations is true and complete. The City will file Form 8038-G (and all other required information reporting forms) in a timely manner. 39. Since a date that is 15 days prior to the Note sale date, neither the City nor any member of the same Controlled Group as the City has sold or delivered (nor will either the City or any member of the same Controlled Group as the City sell or deliver within 15 days after the date hereof) any other obligations that are reasonably expected to be paid out of substantially the same source of funds as the Notes or will be paid directly or indirectly from the proceeds of the Notes. 40. No portion of any Project is expected to be sold or otherwise disposed of prior to the last maturity of the Notes. 41. The City hereby represents and certifies that it is not Controlled by any entity and that there are no entities Controlled by the City. 42. The City acknowledges that any changes in facts or expectations from those set forth herein may result in different yield restrictions or rebate requirements from those set forth. The City shall promptly contact Bond Counsel if such changes do occur. 43. The yield restrictions contained in paragraph 30 hereof or any other restriction or covenant contained herein need not be observed or may be changed if the City receives an opinion of Bond Counsel to the effect that such nonobservance or change will not result in the loss of any exemption for the purpose of federal income taxation to which interest on the Notes is otherwise entitled. 44. The terms, provisions, covenants and conditions of this Certificate shall bind and inure to the benefit of the respective successors and assigns of the City Council and the City. 45. The City Council has reviewed the facts, estimates and circumstances related to the issuance of the Notes. Such facts, estimates and circumstances, together with the -11- • expectations of the City Council as to future events, are set forth in summary form in this • Certificate. Such facts and estimates are true and are not incomplete in any material respect. On the basis of the facts and estimates contained herein, the City Council has adopted the expectations contained herein. On the basis of such facts, estimates, circumstances and expectations, it is not expected that the proceeds from the sale of the Notes or any other moneys or property will be used in a manner that will cause the Notes to be arbitrage bonds within the meaning of Section 148 of the Code and Regulations. Such expectations are reasonable and there are no other facts, estimates and circumstances that would materially change such expectations. 46. The City reasonably expects to use tax revenues arising from tax levies for a single fiscal year to redeem or retire the Notes. The Notes will not be outstanding for the greater of (i) 13 months after the Notes are issued or (ii) 60 days after the delinquency date for the second installment of taxes levied in 1993. 47. The City has not been notified of any listing or proposed listing of it by the Internal Revenue Service as a unit of local government whose arbitrage certifications may • not be relied upon. • • • • • -12- 48. The provisions of this Certificate shall terminate if (a) the Notes have been fully paid and retired at least 75 days prior to the effective date of termination and (b) all amounts remaining on deposit in the Rebate Fund, if any, shall have been paid to or upon the order of the United States and any other payments required under Section 148(f) of the Code have been made to the United States. Notwithstanding the foregoing, the provisions of paragraph 28 hereof shall not terminate until the sixth anniversary of the date the Notes are fully paid and retired. The City recognizes that amounts, if any, on deposit in the Rebate Fund are held for payment to the United States Treasury. The foregoing notwithstanding, the City shall be deemed to have an interest in such amounts to the extent such amounts represent amounts available to satisfy the obligation of the City to rebate certain amounts to the United States Treasury. IN WITNESS WHEREOF, we hereunto affix our official signatures, this 17th day of March, 1994. /S GNATURF�S OFFICIAL TITLES L �� f El Mayor, City o in g City Clerk, City of Elgin 72. Treasurer I do hereby certify that I am an officer of C9oto , Illinois, and that I am personally acquainted with the officials whose signatures appear above and that I know that they are now and were at the time of signing the Notes the duly qualified and acting officials of the City, as indicated by the titles appended to their respective signatures, and I do hereby identify said signatures, together with those on the Notes, as being in all respects true and genuine. DATED as of the date shown hereinabove. -13- • •t TREASURER'S RECEIPT I, the undersigned, do hereby certify that I am the duly qualified and acting Treasurer of the City Council who receives the taxes of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and as such official I do further certify that $3,000,000 General Obligation Notes of the City (the "Notes"), dated March 17, 1994, have been delivered to the purchaser thereof, namely, Old Kent Bank, and that the Notes have been paid for in full by said purchaser in accordance with the terms of sale and at a price of not less than 3,000,176.00. I do further certify that the officials whose signatures appear upon the Notes were in occupancy and possession of their respective offices at the time of signing and delivery of the Notes. I do further certify that as of the date hereof there have been no tax anticipation notes or warrants of the City issued against taxes levied in 1993. I do further certify that I have been appointed note registrar and paying agent for the Notes, pursuant to an ordinance, adopted by the City Council of the City on the 23rd day of February, 1994 (the "Note Ordinance"), that I have heretofore and do hereby accept the duties as note registrar and paying agent so imposed by the Note Ordinance and that I have authenticated and delivered the Notes to the purchaser thereof. IN WITNESS WHEREOF, I hereunto affix my official signature, this 17th day of March, 1994. T easu er 380 6.93 Fwm 8038_G Information Return for Tax-Exempt Governmental Obligations ► Under Internal Revenue Code section 149(e) OMB No. 1545-0720 (Rev. May 1993) 11- See separate Instructions. DeWrWwmal w n e v eery (Use Form 8038-GC if the issue rice is under$100,000. M�m+l Rwr�nw S�rvu p ) Reporting Authority If Amended Return,check here ► ❑ 1 Issuer's name 2 Issuer's employer identification number City of Elgin, Kane and Cook Counties 36 6005862 3 Number and street (or P.O.box it mail is not delivered to street address) Room/suite 4 Report number c19 9 - 5 City,town,state,and 21P code 6 Date of issue Elgin, Illinois 60120 3-17-94 7 Name of Issue 8 CUSIP Number General Obligation Notes. Ser-ies 1994 NA rTM Type of Issue check applicable box es and enter the issue rice Issue price 9 ❑ Education (attach schedule-see instructions) , , , , , , , , , , , , , , , $ 10 ❑ Health and hospital (attach schedule-see instructions), , , , , , , , , , , , , , 11 ❑ Transportation , , , , , , , , , , , , , , , , , , , , , , , , , , , 12 ❑ Public safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 ❑ Environment(including sewage bonds) , , , , , , , , , , , , , , , , , , , + 14 ❑ Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ❑ Utilities , , . , , , , , , , 16 )Q Other. Describe (see Instructions) ► __.Working Capital 17 If obligations are tax or other revenue anticipation bonds,check box ► :a 18 If obligations are in the form of a lease or installment sale, check box ► ❑ i Description of Obligations (a) (b) (c) (dl ld (9) Maturity date Interest rate Issue price Stated redemption Weighted Yi(efld Net interest price at maturity average maturity cost 19 Final maturity. _i_24 2.75 % 31000,000 3 000.000 20 Entire issue i , 3,000,000 3,000,000 3 years 9ye % 17� Uses of Original Proceeds of Bond Issue (including underwriters' discount 21 Proceeds used for accrued interest , , , , , , , , , , , , , , , , , , , , , 21 22 Issue price of entire issue(enter amount from line 20, column (c)) , , , , 22 23 Proceeds used for bond issuance costs(including underwriters' discount) 23 0 24 Proceeds used for credit enhancement , , . , . . , , , , 24 25 Proceeds allocated to reasonably required reserve or replacement fund 25 26 Proceeds used to refund prior issues . , . . . . . . . 26 27 Total (add lines 23 through 26), , , , , , , , , , , , , , , , , , , , , , , C28 � 28 Nonrefundin roceeds of the issue(subtract line 27 from line 22 and enter amount here), Description of Refunded Bonds (complete this parl only for refunding bonds 29 Enter the remaining weighted average maturity of the bonds to be refunded , , , , , , ► years 30 Enter the last date on which the refunded bonds will be called . . . . , . . , , , , ► 31 Enter the dates the refunded bonds were issued ► Miscellaneous 32 Enter the amount of the state volume cap allocated to the issue , , , , . . , , , , ► 33 Enter the amount of the bonds designated by the issuer under section 265(b)(3)(8)(i)(III) (small issuer exception) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ► 3,000,000 34 Pooled financings: a Enter the amount of the proceeds of this issue that are to be used to nuke loons to other govemmental units ► b If this issue is a loan made from the proceeds of another tax-exempt issue, check box ► ❑ and enter the name of the issuer ► and the date of the issue ► 35 If the issuer has elected to pay a penalty in lieu of rebate, check box , ► ❑ Under penalties of perjury.I declare that I have examined this return and accompanying schedules and statements,and to the best of rry knowledge and belief,they are true,correct,and complete. Please Sign James R. Nowicki 2_ 3-17-94 Here Finance Director S)6naturi of officer Date `Type or print name and tale For Paperwork Oeo&tion Act Notice, see page 1 of the Instructions. cat No.63r73s Form 8038-G (Rev 5-e31 I TELEPHONE 708/931-6100 inFAX 708/931-5610 FOR HEARING IMPAIRED TDD 708/931-5616 CITY OF ELGIN 150 DEXTER COURT ELGIN, ILLINOIS 60120-5555 t March 17, 1994 Chapman and Cutler 111 West Monroe Street Chicago, Illinois 60603 Gentlemen: I am the Attorney for the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and in connection with the issuance on this date by the City of its $3,000,000 General Obligation Notes, Series 1994A (the "Notes"), I have examined the public records, proceedings and documents of the City in connection with the issuance of the Notes which I consider necessary for the purpose of this opinion. Based upon the foregoing and upon such other information and documents furnished to me as I believe necessary to enable me to render this opinion, I am of the opinion that: (i) The City is a home rule unit within the meaning of Article VII of the 1970 Constitution of the State of Illinois, duly organized and existing under the Constitution and laws of the State of Illinois. (ii) The City has no enabling ordinances or other proceedings pertaining to the incurring of debt and the issuance of general obligation notes, such as the Notes, presently in effect in the City. (iii) The ordinance authorizing the issuance of the Notes (the "Note Ordinance") is presently in full force and effect and has not been repealed, rescinded or amended and that said ordinance has been adopted at a meeting of the City Council of the City called and held in accordance with the procedural rules adopted by the City and in accordance with the Open Meeting Law, as amended; (iv) There is no action, suit, proceedings or investigation at law or in equity before or by any court, public board or body pending or, to my knowledge, threatened against or affecting the City, the Note Ordinance, or the right to issue the Notes, or to my knowledge any basis for any such action, suit, proceedings or investigation, wherein an unfavorable decision, ruling or finding would affect the organization or boundaries of the City or the issuance of the Notes. (v) The proceedings taken by the City Council relative to the authorization of the Notes and the passage of the Note Ordinance were held in compliance with (a) the Illinois Municipal Code, as amended, where not validly superseded by the City's home rule powers, (b) the Code of Ordinances of the City (which includes the procedural rules of the City Council) and (c) the Open Meetings Law, as amended. Printed on recycled paper (vi) The proceedings taken by the City Council in authorizing and issuing the Notes and applying the proceeds thereof as provided in the Note Ordinance do not conflict with or cause the City to be in violation of any ordinance, indenture,. agreement, court or administrative order or adjudication to which the City is subject. (vii) To the best of my knowledge and belief, there is no action, suit, proceeding or investigation pending or threatened against the City which if adversely determined could materially adversely affect the financial position of the City and the transactions contemplated by and in the Note Ordinance and any other of the financing documents related to the Notes. (viii) The City Council has taken no action to modify the provisions of the Illinois Municipal Code, as amended, with respect to the calling, holding, or giving of notice of regular or special meetings. (ix) The City Council has taken no action to modify the provisions of said Illinois Municipal Code with respect to the introduction and passage of resolutions or ordinances. (x) The City Council does not require the laying over of resolutions or ordinances. Very truly yours, Corporation Counsel -2- Law Offices of CHAPMAN AND CUTLER Theodore S.Chapman 111 West Monroe Street, Chicago, Illinois 606034080 2 North Central Avenue 1977-1943 TWX 910-221-2103 Telex 206281 Phoenix,Arizona MOO Henry E. Cutler (602)256-4060 FAX( )701-2361 Telephone (312)845-3000 50 South Main Street Salt Lake City,Utah 84144 (801)533-0066 March 17, 1994 We hereby certify that we have examined certified copy of the proceedings of the City Council of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), passed preliminary to the issue by the City of its 2.73% General Obligation Notes, Series 1994A (the "Notes"), to the amount of $3,000,000, dated March 17, 1994, due on November 1, 1994, and we are of the opinion that such proceedings show lawful authority for said issue under the laws of the State of Illinois now in force. We further certify that we have examined the form of note prescribed for said issue and find the same in due form of law, and in our opinion said issue, to the amount named, is valid and legally binding upon the City, and all taxable property in the City is subject to the levy of taxes to pay the same without limitation as to rate or amount. It is our opinion that, subject to the condition that the City comply with certain covenants made to satisfy pertinent requirements of the Internal Revenue Code of 1986 (the "Code"), under present law, the Notes are not "private activity bonds" within the meaning of Section 141 of the Code and interest on the Notes is not includable in gross income of the owners thereof for federal income tax purposes and will not be treated as an item of tax preference in computing the alternative minimum tax for individuals and corporations. Interest on the Notes is exempt from present federal income taxation, 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, in computing the environmental tax imposed on certain corporations and in computing the "branch profits tax" imposed on certain foreign corporations. It is also our opinion that the City has properly designated the Notes as "qualified tax- exempt obligations" pursuant to Section 265(b)(3) of the Code. H Hush:cm