HomeMy WebLinkAboutS1-93 (3) CITY OF ELGIN
ORDINANCE NO. S1-93
AN ORDINANCE
PROVIDING FOR THE ISSUANCE OF $6 ,505, 000 GENERAL
OBLIGATION BONDS, SERIES 1993, OF THE CITY OF ELGIN,
KANE AND COOK COUNTIES, ILLINOIS, AND PROVIDING FOR THE
LEVY AND COLLECTION OF A DIRECT ANNUAL TAX FOR THE
PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS
Lir
ADOPTED BY THE
CITY COUNCIL OF THE
CITY OF ELGIN
ON THIS 17TH DAY OF MARCH, 1993
Published in pamphlet form by
authority of the City Council of
the City of Elgin, Kane and Cook
Counties, Illinois, on this
19th day of March, 1993 .
Air
STATE OF ILLINOIS
ss .
COUNTY OF KANE
CERTIFICATE
I , Dolonna Mecum, certify that I am the duly appointed
and acting municipal clerk of the City of Elgin, Cook and Kane
Counties, Illinois .
I further certify that on March 17 , 1993, the
Corporate Authorities of such municipality passed and approved
Ordinance No. S1-93, entitled An Ordinance providing for the
issuance of $6,505, 000 General Obligation Bonds, Series 1993, of
the City of Elgin, Kane and Cook Counties, Illinois, and
providing for the levy and collection of a direct annual tax for
the payment of the principal of and interest on said bonds,
which provided by its terms that it should be published in
pamphlet form.
The pamphlet form of Ordinance No. S1-93, including
the Ordinance and a cover sheet thereof, was prepared, and a
copy of such Ordinance was posted in the municipal building,
commencing on March 19 , 1993, and continuing for at least ten
days thereafter. Copies of such Ordinance were also available
for public inspection upon request in the office of the
municipal clerk.
DATED at Elgin, Illinois, on March 19 , 1993 .
Ag_c444„-__
Municipal Clerk
(SEAL)
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ORDINANCE NUMBER S-1-93
AN ORDINANCE providing for the issuance of$6,505,000 General
Obligation Bonds, Series 1993, of the City of Elgin, Kane and
Cook Counties, Illinois, and providing for the levy and collection
of a direct annual tax for the payment of the principal of and
interest on said bonds.
WHEREAS, the City 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, on the 23rd day of April, 1975, the City Council of the City did adopt an
ordinance determining the procedures to be followed in the borrowing of money for public
purposes of the City and in evidence of such borrowing the issuing of full faith and credit
bonds of the City without referendum approval, such ordinance being entitled:
ORDINANCE No. G22-75
AN ORDNANCE establishing procedures to be followed by the City
of Elgin, Kane and Cook Counties, Illinois, in issuing non-
referendum general obligation bonds
which ordinance was amended by Ordinance No. G14-80 adopted on January 28, 1980, by
Ordinance No. 64-80 adopted on October 8, 1980, by Ordinance No. G39-82 adopted on
July 28, 1982 and by Ordinance No. G31-92 adopted on June 17, 1992 (Ordinance No.
G22-75 as so amended being referred to hereinafter as the "Enabling Ordinance"); and
WHEREAS, the City Council of the City (the "City Council") has heretofore
determined and does hereby determine that it is necessary and advisable for the public
health, safety, welfare, and convenience of residents of the City that the City undertake to
fund certain public improvements and various other projects and related costs (which
improvements, together with all related expenses as hereinafter more specifically
enumerated, may be referred to as the "Project"), all in accordance with the preliminary
plans and specifications prepared by engineers and approved by the City Council and now on
file with the City Clerk; and
WHEREAS, the City has heretofore issued its $750,000 General Obligation Corporate
Purpose Bonds, Series 1986 maturing on January 1 of the years 2000 to 2002, inclusive (the
"Series 1986 Bonds"), and its $1,245,000 General Obligation Bonds, Series 1989-A
maturing on October 1 of the years 2003 to 2009, inclusive (the "Series 1989 Bonds"),
which bonds are presently outstanding and unpaid (together, the "Outstanding Bonds") and
of which bonds the Series 1986 Bonds are callable on July 1, 1996 and the Series 1989
Bonds are callable on October 1, 1996 at the prices set forth in the ordinances authorizing
the same; and
WHEREAS, the City Council has heretofore determined and does hereby determine
that it is necessary and advisable for the public health, safety, welfare and convenience of the
residents of the City that the City undertake to refund the Outstanding Bonds (which
refunding, together with all related expenses as hereinafter more specifically enumerated,
may be referred to as the "Refunding"); and
WHEREAS, the estimated cost to the City of the Project and the Refunding is the sum
of$6,505,000 and estimated investment earnings; and
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WHEREAS, there are insufficient funds of the City on hand and lawfully available to
pay the costs of the Project and the Refunding; and
WHEREAS, the City Council does hereby determine that it is advisable and in the best
interests of the City to borrow $6,505,000 at this time and, in evidence of such borrowing,
issue its full faith and credit bonds in the principal amount of$6,505,000;
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 and in accordance with the
Enabling Ordinance, 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:
"Bond" or "Bonds" means one or more, as applicable, of the $6,505,000 General
Obligation Bonds, Series 1993, authorized to be issued by this Ordinance.
"Bond Fund" means the Bond Fund established and defined in Section 11 of this
Ordinance.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence
the registration and transfer of the Bonds.
"Bond Registrar" means American National Bank and Trust Company of Chicago,
Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor
designated as Bond Registrar hereunder.
"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.
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"Ordinance" means this Ordinance, numbered S-1-93, and passed by the City Council
on the 17th day of March, 1993.
"Outstanding Bonds" means the outstanding and unpaid Series 1986 Bonds and Series
1989 Bonds described more fully in the preambles hereto and which are being refunded by
the Refunding.
"Paying Agent" means American National Bank and Trust Company of Chicago,
Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor
designated as Paying Agent hereunder.
"Project" means the improvement project to fund certain public improvements and
various other projects and related costs.
"Project Fund (1993)" means the Project Fund established and defined in Section 11
of this Ordinance.
„. "Refunding” means the refunding of the Outstanding Bonds on their earliest
redemption dates as more fully set forth herein.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and
received thereon as not includible in the gross income of the owners thereof under the 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 fords 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.
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iikur Section 3. Determination To Issue Bonds. It is necessary and in the best interests
of the City to acquire and construct the Project, to accomplish the Refunding and to pay all
related costs and expenses incidental thereto, and to borrow money and issue the Bonds for
such purposes. It is hereby found and determined that such borrowing of money is
necessary for the welfare 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. Bond Details. For the purpose of providing for the payment of the
costs of the Project and the Refunding and to pay all related costs and expenses incidental
thereto, there shall be issued and sold the Bonds in the principal amount of$6,505,000. The
Bonds shall each be designated "General Obligation Bond, Series 1993"; be dated March 15,
1993; and shall also bear the date of authentication thereof. The Bonds shall be in fully
registered form, shall be in denominations of $5,000 or integral multiples thereof (but no
single Bond shall represent principal maturing on more than one date), shall be numbered
consecutively in such fashion as shall be determined by the Bond Registrar, and shall become
due and payable serially on January 1 of each of the years and in the amounts (being subject
to the right of prior redemption hereinafter set forth) and bearing interest at the rates
percent per annum as follows:
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YEAR AMOUNT($) RATE(%)
1995 10,000 5.125
1996 10,000 5.125
1997 30,000 5.125
1998 230,000 4.5
1999 230,000 4.2
2000 580,000 4.4
2001 775,000 4.5
2002 1,765,000 4.75
2003 1,615,000 4.8
2004 155,000 5.0
2005 165,000 5.0
2006 170,000 5.0
2007 180,000 5.0
2008 190,000 5.0
2010 400,000 5.375
The Bonds shall bear interest from the later of their dated date as herein provided or
from the most recent interest payment date to which interest has been paid or duly provided
,„ for, such interest (computed upon the basis of a 360-day year of twelve 30-day months)
being payable on January 1 and July 1 of each year, commencing on January 1, 1994.
Interest on each Bond 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 Bond is registered at the close of business on the 15th day of the month next
preceding the interest payment date and shall be paid by check or draft of the Paying Agent,
payable upon presentation in lawful money of the United States of America, mailed to the
address of such Registered Owner as it appears on such registration books or at such other
address furnished in writing by such Registered Owner to the Bond Registrar. The principal
of the Bonds shall be payable in lawful money of the United States of America upon
presentation thereof at the principal corporate trust office of the Paying Agent in the City of
Chicago, Illinois, or at successor Paying Agent and locality.
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"' Section S. Execution; Authentication. The Bonds shall be executed on behalf of
the City by the manual or facsimile signature of its Mayor and attested by the manual or
facsimile signature of its City Clerk, as they may determine, and shall have impressed or
imprinted thereon the corporate seal or facsimile thereof of the City. In case any such
officer whose signature shall appear on any Bond shall cease to be such officer before the
delivery of such Bond, such signature shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office until delivery. All Bonds shall
have thereon a certificate of authentication, substantially in the form hereinafter set forth,
duly executed by the Bond Registrar as authenticating agent of the City and showing the date
of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any
security or benefit under this Ordinance unless and until such certificate of authentication
shall have been duly executed by the Bond Registrar by manual signature, and such
certificate of authentication upon any such Bond shall be conclusive evidence that such Bond
has been authenticated and delivered under this Ordinance. The certificate of authentication
on any Bond shall be deemed to have been executed by it if signed by an authorized officer
of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate
of authentication on all of the Bonds issued hereunder.
Section 6. Registration of Bonds;Persons Treated as Owners;Redemption
A. General. The City shall cause the Bond Register to be kept at the principal
corporate trust office of the Bond Registrar in the City of Chicago, Illinois; and the same is
hereby constituted and appointed the registrar of the City for the Bonds. The City is
authorized to prepare, and the Bond Registrar or such other agent as the City may designate
shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and
exchange of Bonds.
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1/4or Any fully registered Bond or Bonds may be exchanged upon presentation at the
principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, duly
endorsed by, or accompanied by a written instrument or instruments authorizing such
exchange in form satisfactory to the Bond Registrar and duly executed by, the registered
owner or his attorney duly authorized in writing, for a like aggregate principal amount of
Bond or Bonds of the same maturity, of other authorized denominations and of the same
interest rate.
Upon surrender for transfer of any Bond at the principal corporate trust office of the
Bond Registrar in the City of Chicago, Illinois, duly endorsed by, or accompanied by a
written instrument or instruments of transfer in form satisfactory to the Bond Registrar and
duly executed by, the registered owner or his attorney duly authorized in writing, the City
shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the
transferee or transferees a new fully registered Bond or Bonds of the same maturity, of
authorized denominations, for a like aggregate principal amount and interest rate.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the 15th day of the month next preceding an interest payment date to such
interest payment date or during the period of 15 days preceding the giving of notice of
redemption of Bonds or to transfer or exchange any Bond all or a portion of which has been
called for redemption.
The execution by the City of any fully registered Bond shall constitute full and due
authorization of such Bond, and the Bond Registrar shall thereby be authorized to
authenticate, date and deliver such Bond; provided, however, the principal amount of Bonds
of each maturity authenticated by the Bond Registrar shall not at any one time exceed the
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1 authorized principal amount of Bonds for such maturity less the amount of such Bonds
which have been paid.
The person in whose name any Bond shall be registered shall be deemed and regarded
as the absolute owner thereof for all purposes, and payment of the principal of or interest on
any Bond shall be made only to or upon the order of the registered owner thereof or his
legal representative. All such payments shall be valid and effectual to satisfy and discharge
the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any such transfer or exchange of Bonds, but the
City or the Bond Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any such transfer or
exchange of Bonds, except that no such payment may be required in the case of the issuance
of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption.
.• B. Redemption. The Bonds due on January 1, 2010 are subject to mandatory
redemption at par and accrued interest to the date fixed for redemption without premium,
such Bonds to be selected in such manner as shall be reasonably determined by the Bond
Registrar, and such Bonds to be redeemed on January 1 of each of the years and in the
principal amounts as follows:
YEAR AMOUNT
2009 $195,000
2010 $205,000 (final maturity)
Bonds maturing on or after January 1, 2002 are redeemable prior to maturity thereof
at the option of the City, in whole or in part, on January 1, 2001 or on any date thereafter,
and if less than all of the outstanding Bonds are to be redeemed at any one time, the Bonds to
be called shall be called in any order of their maturity and if less than all of a single
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maturity is so redeemed then by lot within a maturity in the manner hereinafter provided,
the Bonds to be redeemed at the redemption price of par plus accrued interest to the date
fixed for redemption.
The City shall, at least 45 days prior to the redemption date (unless a shorter time
period shall be satisfactory to the Bond Registrar), notify the Bond Registrar of such
redemption date and of the principal amount and maturity of the Bonds to be redeemed. For
purposes of any redemption of less than all of the outstanding Bonds of a single maturity,
and in the event there is more than one registered owner of a given maturity to be
redeemed, the particular Bonds or portions of Bonds to be redeemed shall be selected by the
Bond Registrar, by lot from the outstanding Bonds of the maturity or maturities selected, by
such method as the Bond Registrar shall deem fair and appropriate; provided that such
lottery shall provide for the selection for redemption of Bonds or portions thereof so that
any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for redemption
as any other such $5,000 Bond or $5,000 portion.
Unless waived by any registered owner of Bonds to be redeemed, official notice of the
call for any such redemption shall be given by the Bond Registrar on behalf of the City by
mailing the redemption notice by registered or certified mail at least 30 days and not more
than 60 days prior to the date fixed for redemption to the registered owner of the Bond or
Bonds to be redeemed at the address shown on the Bond Register or at such other address as
is furnished in writing by such registered owner to the Bond Registrar.
All official notices of redemption shall state:
(a) the redemption date;
(b) the redemption price;
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ki`,,, (c) the identification of the Bonds to be redeemed, including (i) the date of
issue of the Bonds as originally issued, (ii) the maturity date and interest rate borne by
each Bond to be redeemed, (iii) the respective principal amount redeemed of each
Bond to be redeemed in part, (iv) the CUSIP of each Bond to be redeemed, and (v)
any other descriptive information needed to identify accurately the Bonds being
redeemed;
(d) a statement that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption, and
that interest thereon shall cease to accrue from and after said date; and
(e) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be at the principal corporate trust
office of the Bond Registrar in the City of Chicago, Illinois or at a successor Bond
Registrar as may then be acting.
Official notice of redemption having been given as aforesaid, the Bonds or portions of
Bonds so to be redeemed shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date (unless the City shall
default in the payment of the redemption price), such Bonds or portions of Bonds shall cease
to bear interest. Such notice may be waived in writing by a registered owner of a Bond
entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by registered owners shall be filed with the
Bond Registrar, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver. Upon surrender of such Bonds for redemption in
accordance with said notice, such Bonds shall be paid by the Bond Registrar at the
redemption price. The procedure for the payment of interest due as part of the redemption
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"' price shall be as herein provided for payment of interest otherwise due. Upon surrender for
any partial redemption of any Bond, there shall be prepared for the registered owner a new
Bond or Bonds of like tenor, of authorized denominations, of the same maturity, and
bearing the same rate of interest, in the amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid, bear interest from the
redemption date at the rate borne by the Bond or portion of Bond so called for redemption.
All Bonds which have been redeemed shall be cancelled and destroyed by the Bond Registrar
and shall not be reissued.
Upon the payment of the redemption price of Bonds being redeemed, each check or
other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by
issue and maturity, the Bonds being redeemed with the proceeds of such check or other
transfer.
C. Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
described in Section 4 hereof. Upon initial issuance, the ownership of each such Bond shall
be registered in the Bond Register in the name of Kray & Co., or any successor thereto, as
nominee of the Midwest Securities Trust Company, Chicago, Illinois, and its successors and
assigns ("MSTC"). All of the outstanding Bonds shall be registered in the Bond Register in
the name of Kray & Co., as nominee of MSTC, except as hereinafter provided. The Mayor,
City Clerk and City Treasurer are each authorized to execute and deliver on behalf of the
City such letters to or agreements with MSTC and the Bond Registrar as shall be necessary
to effectuate such book-entry system (any such letter or agreement being referred to herein
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ikaw as the "Representation Letter"), which Representation Letter may provide for the payment
of principal of or interest on the Bonds by wire transfer.
With respect to Bonds registered in the Bond Register in the name of Kray & Co., as
nominee of MSTC, the City and the Bond Registrar shall have no responsibility or obligation
to any broker-dealer, bank or other financial institution for which MSTC holds Bonds from
time to time as securities depository (each such broker-dealer, bank or other financial
institution being referred to herein as a "MSTC Participant") or to any person on behalf of
whom such a MSTC Participant holds an interest in the Bonds. Without limiting the
immediately preceding sentence, the City and the Bond Registrar shall have no responsibility
or obligation with respect to (i) the accuracy of the records of MSTC, Kray & Co. or any
MSTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to
any MSTC Participant or any other person, other than a registered owner of a Bond as
r shown in the Bond Register, of any notice with respect to the Bonds, including any notice of
redemption, or (iii) the payment to any MSTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register, of any amount with respect to
the principal of or interest on the Bonds. The City and the Bond Registrar may treat and
consider the person in whose name each Bond is registered in the Bond Register as the
holder and absolute owner of such Bond for the purpose of payment of principal and interest
with respect to such Bond, for the purpose of giving notices of redemption and other matters
with respect to such Bond, for the purpose of registering transfers with respect to such
Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of
and interest on the Bonds only to or upon the order of the respective registered owners of
the Bonds, as shown in the Bond Register, or their respective attorneys duly authorized in
writing, and all such payments shall be valid and effective to fully satisfy and discharge the
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City's obligations with respect to payment of the principal of and interest on the Bonds to the
extent of the sum or sums so paid. No person other than a registered owner of a Bond as
shown in the Bond Register shall receive a Bond certificate evidencing the obligation of the
City to make payments of principal and interest with respect to any Bond. Upon delivery by
MSTC to the Bond Registrar of written notice to the effect that MSTC has determined to
substitute a new nominee in place of Kray & Co., and subject to the provisions in Section 5
hereof with respect to the payment of interest to the registered owners of Bonds at the close
of business on the 15th day of the month next preceding the applicable interest payment date,
the name "Kray & Co." in this Ordinance shall refer to such new nominee of MSTC.
In the event that (i) the City determines that MSTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among
the City, the Bond Registrar and MSTC evidenced by the Representation Letter shall be
terminated for any reason or (iii) the City determines that it is in the best interests of the
beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall
notify MSTC and MSTC Participants of the availability through MSTC of Bond certificates
and the Bonds shall no longer be restricted to being registered in the Bond Register in the
name of Kray & Co., as nominee of MSTC. At that time, the City may determine that the
Bonds shall be registered in the name of and deposited with such other depository operating
a universal book-entry system, as may be acceptable to the City, or such depository's agent
or designee, and if the City does not select such alternate universal book-entry system, then
the Bonds may be registered in whatever name or names the registered owners of Bonds
transferring or exchanging Bonds shall designate, in accordance with the provisions of
Section 6 hereof.
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Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of !Cray & Co., as nominee of MSTC, all payments with
respect to principal of and interest on such Bond and all notices with respect to such Bond
shall be made and given, respectively, in the manner provided in the Representation Letter.
Section 7. Form of Bond. The Bonds shall be in substantially the form hereinafter
set forth; provided, however, that if the text of the Bond is to be printed in its entirety on
the front side of the Bond, then paragraph [2] and the legend "See Reverse Side for
Additional Provisions" shall be omitted and paragraphs [6] through [12] shall be inserted
immediately after paragraph [1]:
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[Form of Bond - Front Side]
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTIES OF KANE AND COOK
CITY OF ELGIN
GENERAL OBLIGATION
BOND, SERIES 1993
See Reverse Side
for Additional
Provisions
Interest Maturity Dated
Rate: % Date: January 1, Date: March 15, 1993 [CUSIP]
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 Bond 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
January 1 and July 1 of each year, commencing January 1, 1994, until said Principal
Amount is paid. The principal of this Bond is payable in lawful money of the United States
of America upon presentation hereof at the principal corporate trust office of American
National Bank and Trust Company of Chicago, Chicago, Illinois, as paying agent (the
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"Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as
shown on the registration books of the City maintained by American National Bank and
Trust Company of Chicago, Chicago, Illinois (the "Bond Registrar"), at the close of business
on the 15th day of the month next preceding the interest payment date and shall be paid by
check or draft of the Paying Agent, payable upon presentation in lawful money of the United
States of America, mailed to the address of such Registered Owner as it appears on such
registration books or at such other address furnished in writing by such Registered Owner to
the Bond Registrar.
[2] Reference is hereby made to the further provisions of this Bond set forth on the
reverse hereof, and such further provisions shall for all purposes have the same effect as if
set forth at this place.
[3] It is hereby certified and recited that all 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 Bond have existed and have been properly done, happened and been
performed in regular and due form and time as required by law; that the indebtedness of the
City, represented by the Bonds, and including all other indebtedness of the City, howsoever
evidenced or incurred, does not exceed any constitutional or statutory or other lawful
limitation; and that provision has been made for the collection of a direct annual tax, in
addition to all other taxes, on all of the taxable property in the City sufficient to pay the
interest hereon as the same falls due and also to pay and discharge the principal hereof at
maturity.
[4] This Bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Bond Registrar.
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[5] IN WITNESS WHEREOF the City of Elgin, Kane and Cook Counties, Illinois, by its
City Council, has caused this Bond 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.
]Facsimile Signature]
Mayor, City of Elgin
Kane and Cook Counties, Illinois
Attest:
]Facsimile Signaturel
City Clerk, City of Elgin
Kane and Cook Counties, Illinois
(SEAL)
Date of Authentication:
tirrpr CERTIFICATE OF Bond Registrar and Paying Agent:
AUTHENTICATION American National Bank and Trust
Company of Chicago
Chicago, Illinois
This Bond is one of the Bonds
described in the within mentioned
Ordinance and is one of the $6,505,000
General Obligation Bonds, Series 1993,
having a Dated Date of March 15, 1993, of
the City of Elgin, Kane and Cook Counties,
Illinois.
AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO
as Bond Registrar
By
Authorized Officer
Now
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[Form of Bond - Reverse Side]
City of Elgin, Kane and Cook Counties, Illinois
General Obligation Corporate Purpose Bond
Series 1993
[6] This bond is one of a series of bonds (the "Bonds") in the aggregate principal
amount of$6,505,000 issued by the City for the purpose of paying the costs of a Project and
of refunding certain outstanding general obligation bonds of the City and of paying expenses
incidental thereto, all as described and defined in the ordinance authorizing the Bonds (the
"Ordinance"),pursuant to and in all respects in compliance with the applicable provisions of
Section 6 of Article VII of the Constitution of the State of Illinois, with the Procedural
Ordinances of the City adopted in the exercise of its home rule powers in issuing bonds
without referendum, and with the Ordinance, which has been duly passed by the City
Council and published, in all respects as by law required.
[7] The Bonds are issued in fully registered form in the denominations of $5,000 or
authorized integral multiples thereof. This Bond may be exchanged upon presentation and
surrender for cancellation hereof at the principal corporate trust office of the Bond
Registrar in the City of Chicago, Illinois, but only in the manner, subject to the limitations
and upon payment of the charges provided in the Ordinance, for a like aggregate principal
amount of Bonds of the same maturity and interest rate of other authorized denominations.
This Bond is transferable by the Registered Owner hereof in person or by his attorney duly
authorized in writing at the principal corporate trust office of the Bond Registrar in the City
of Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of
the charges provided in the Ordinance, and upon presentation and surrender for cancellation
of this Bond. Upon such transfer a new Bond or Bonds 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 Bonds maturing on January 1, 2010 are subject to mandatory redemption at
par and accrued interest to the date fixed for redemption without premium on January 1 of
each of the years 2009 to 2010, inclusive, such Bonds to be selected by the Bond Registrar as
provided in the Ordinance and in the amounts set forth in the Ordinance.
[9] The Bonds maturing on or after January 1, 2002 are redeemable prior to maturity
at the option of the City, in whole or in part on January 1, 2001 or on any date thereafter,
and if less than all of the outstanding Bonds are to be redeemed, the Bonds to be called shall
be called in the order of maturity designated by the City and if less than all of a single
maturity is so redeemed then by lot within a maturity in the manner provided in the
Ordinance, the Bonds to be redeemed at the redemption price of par plus accrued interest to
the date fixed for redemption.
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[10] The Bond Registrar shall not be required to transfer or exchange any Bond
during the period from the 15th day of the month next preceding an interest payment date to
such interest payment date or during the period of 15 days preceding the giving of notice of
redemption of Bonds or to transfer or exchange any Bond all or a portion of which as been
called for redemption.
[11] The City, the Bond Registrar and the Paying Agent may deem and treat the
Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment
of or on account of principal hereof and interest due hereon and for all other purposes, and
the City, the Bond Registrar and the Paying Agent shall not be affected by any notice to the
contrary.
[12] The City has designated this Bond a"qualified tax-exempt obligation"pursuant to
Section 265(b)(3) of the Internal Revenue Code of 1986.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
, as attorney to transfer the said Bond on the
books kept for registration thereof with full power of substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and assignment must correspond with the name of
the Registered Owner as it appears upon the face of the within Bond in every
particular, without alteration or enlargement or any change whatever.
Section 8. Tax Levy. For the purpose of providing funds required to pay the
interest on the Bonds promptly when and as the same falls due, and to pay and discharge the
principal thereof at maturity, there is hereby levied upon all of the taxable property within
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Lew the City, in the years for which any of the Bonds are outstanding, a direct annual tax
sufficient for that purpose; and there is hereby levied on all of the taxable property in the
City, in addition to all other taxes, the following direct annual tax, to-wit:
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
1993 $ 564,169.31 for principal and interest up to and
including January 1, 1995
1994 $ 318,312.52 for principal and interest
1995 $ 337,800.02 for principal and interest
1996 $ 536,262.52 for principal and interest
1997 $ 525,912.52 for principal and interest
1998 $ 866,252.52 for principal and interest
1999 $1,035,732.52 for principal and interest
2000 $1,990,857.52 for principal and interest
2001 $1,757,020.02 for principal and interest
2002 $ 219,500.02 for principal and interest
2003 $ 221,750.02 for principal and interest
2004 $ 218,500.02 for principal and interest
2005 $ 220,000.02 for principal and interest
Tokiw 2006 $ 221,000.02 for principal and interest
2007 $ 216,500.02 for principal and interest
2008 $ 216,018.76 for principal and interest
Interest or principal coming due at any time when there are insufficient funds on hand
from the foregoing tax levy to pay the same shall be paid promptly when due from current
funds on hand in advance of the collection of said taxes herein levied; and when said taxes
shall have been collected, reimbursement shall be made to said funds in the amount so
advanced. The City covenants and agrees with the purchasers and registered owners of the
Bonds that so long as any of the Bonds remain outstanding, the City will take no action or
fail to take any action which in any way would adversely affect the ability of the City to levy
and collect the foregoing tax levy. The City and its officers will comply with all present and
future applicable laws in order to assure that the foregoing taxes may be levied, extended
and collected as provided herein and deposited into the Bond Fund.
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Section 9. Filing with the County Clerks. Promptly, as soon as this Ordinance
becomes effective, a copy hereof, certified by the City Clerk of the City, shall be filed with
the County Clerks of The Counties of Kane and Cook, Illinois; and each of said County
Clerks shall in and for each of the years 1993 to 2008, inclusive, ascertain the rate per cent
required to produce the aggregate tax hereinbefore provided to be levied in each of said
years; and each of said County Clerks shall extend the same for collection on the tax books
in connection with other taxes levied in said years in and by the City for general corporate
purposes of the City; and in said years such annual tax shall be levied and collected by and
for and on behalf of the City in like manner as taxes for general corporate purposes for said
years are levied and collected, and in addition to and in excess of all other taxes.
Section 10. Sale of Bonds. The Bonds shall be executed as in this Ordinance
provided as soon after the passage hereof as may be, shall be deposited with the City
Treasurer, and shall be by the Treasurer delivered to the purchaser thereof, namely,
Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois, upon payment of the purchase
price agreed upon, the same being $6,439,950 plus accrued interest to date of delivery. The
contract for the sale of the Bonds 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 11. Creation of Funds and Appropriations. The proceeds derived from the
sale of the Bonds shall be used as follows:
A. Accrued interest and premium, if any, on the Bonds shall be and is
hereby appropriated for the purpose of paying the first interest due on the Bonds and
to such end is hereby ordered to be deposited into the "General Obligation Bonds,
Series 1993, Bond Fund" (the "Bond Fund"), hereby created, which shall be the fund
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for the payment of principal of and interest on the Bonds. Taxes received for the
• payment of the Bonds shall be deposited into the Bond Fund and used solely and only
for the purpose of paying the Bonds. Interest received from investments on deposit in
the Bond 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. A sum which, together with other legally available funds, shall be
sufficient to accomplish the Refunding shall be deposited in escrow pursuant to the
escrow agreement approved herein.
C. The balance of the proceeds of the Bonds shall be set aside in a separate
fund, hereby created, and designated as the "Project Fund (1992)." Money in said
Fund shall be used to pay all costs of the Project and all costs and expenses incidental
or allocable or related thereto, including all costs of issuance of the Bonds.
Section 12. Not Private Activity Bonds. None of the Bonds is a "private activity
bond" as defined in Section 141(a) of the Code. In support of such conclusion, the City
certifies, represents and covenants as follows:
A. None of the proceeds of the Bonds are to be used, directly or indirectly,
in any trade or business carried on by any person other than a state or local
governmental unit.
B. The payment of the principal of or the interest on the Bonds 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.
C. None of the proceeds of the Bonds, the Series 1986 Bonds or the Series
1989 Bonds have been or are to be used, directly or indirectly, to make or finance
loans to any persons.
D. No user of the Project or the facilities financed, refinanced or
reimbursed, directly or indirectly, in whole or in part, with the proceeds (including
investment earnings) of the Series 1986 Bonds or the Series 1989 Bonds or the Series
1989 Bonds (the "Price Projects") other than the City will use the same on any basis
other than the same basis as the general public; and no person will be a user of the
Project or the Price Projects as a result of(i) ownership or (ii) actual or beneficial use
pursuant to a lease, a management or incentive payment contract, or (iii) any other
arrangement, agreement or understanding, whether written or oral.
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Section 13. General Arbitrage Covenants. The City represents and certifies as
follows with respect to the Bonds:
A. The City has heretofore incurred, or within six months after delivery of the
Bonds expects to incur, substantial binding obligations with respect to the Project to be paid
for with moneys received from the sale of the Bonds, said binding obligations comprising
binding contracts for the Project in not less than the amount of$100,000.
B. All of the Project proceeds of the Bonds, and investment earnings thereon, will
be expended on or before March 15, 1996 for the purpose of paying the costs of the Project,
including expenses incidental thereto, said date being within three years following the date of
issue of the Bonds.
C. Work on the Project is expected to proceed with due diligence to completion.
D. No acquisition or improvement made as a part of the Project has been or is
expected to be sold or otherwise disposed of in whole or in material part prior to the last
maturity of the Bonds. "Material part" means (i) land, or (ii) any improvement, or (iii)
personal property or fixtures in excess of that which is expected to be sold, traded in or
discarded upon wearing out or becoming obsolete.
E. The City will receive $6,439,950 plus accrued interest from the sale of the
Bonds. Accrued interest and premium, if any, on the Bonds is to be deposited into the Bond
Fund and used to pay first interest coming due on the Bonds.
F. Except for the Bond Fund, the City has not created or established and will not
create or establish any sinking fund, reserve fund or any other similar fund to provide for
the payment of the Bonds. The Bond Fund has been established and will be funded in a
manner primarily to achieve a proper matching of tax revenues and debt service, and will be
depleted at least annually to an amount not in excess of 1/12 the particular annual debt
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kitry service on the Bonds. Money deposited in the Bond Fund will be spent within a 12-month
period beginning on the date of deposit, and investment earnings in the Bond Fund will be
spent or withdrawn from the Bond Fund within a one-year period beginning on the date of
receipt.
G. The foregoing statements of expectation are based upon the following facts and
estimates:
(1) Amounts shown as received will be received pursuant to contract of sale.
(2) Amounts paid or to be paid into various funds and accounts have been
directed to be paid into said funds and accounts by authority hereof or are expected to
be so directed to be paid by further proceedings.
(3) The anticipated dates of the obligation of and expenditure of money in the
Project Fund (1993) derived from the sale of Bonds and the amounts to be spent on or
before such dates is based upon consultation with the architects, engineers and
administrative staff of the City charged with responsible supervision of the Project.
H. To the best of the knowledge and belief of the City Council, and of the
undersigned Mayor and City Clerk who are officers charged with the responsibility of
issuing the Bonds, there are no facts, estimates or circumstances that would materially
change the conclusions and representations set out in this Section,and the expectations set out
in this Section are reasonable.
I. The City has not been disqualified as, or disqualified as, or notified of any
disqualification or proposed disqualification of it by the Commissioner of the Internal
Revenue Service as a bond issuer which may certify bond issues under Treas. Reg. §1.103-
13 (a)(2)(ii) (1979).
The City also certifies and further covenants with the purchasers and registered
owners of the Bonds from time to time outstanding that moneys on deposit in any fund or
account in connection with the Bonds, whether or not such moneys were derived from the
fir..
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•
proceeds of the sale of the Bonds or from any other source, will not be used in a manner
which will cause the Bonds to be "arbitrage bonds" within the meaning of the Code Section
148 and any lawful regulations promulgated thereunder, including Treas. Reg. §§1.103-13,
1.103-14 and 1.103-15 (1979), Treas. Reg. §§1.48-0 through 1.148-11 and Temp. Treas.
Reg. §§1.148-12T and 1.148-13T as the same presently exist or may from time to time
hereafter be amended, supplemented or revised. The City reserves the right to use or invest
moneys in connection with the Bonds in any manner, notwithstanding the covenants herein,
provided it shall first have received an opinion from an attorney or a firm of attorneys of
nationally recognized standing in matters pertaining to Tax-exempt bonds to the effect that
use or investment of such moneys as contemplated will not result in loss of Tax-exempt
status for the Bonds.
Section 14. Further Tax Covenants. The City agrees to comply with all provisions
of the Code which, if not complied with by the City, would cause the Bonds not to be Tax-
exempt. In furtherance of the foregoing provisions, but without limiting their generality,
the City agrees: (a) through its officers to make such further specific covenants,
representations as shall be truthful, and assurances as may be necessary or advisable; (b) to
comply with all representations, covenants and assurances contained in certificates or
agreements as may be prepared by counsel approving the Bonds; (c) to consult with such
counsel and to comply with such advice as may be given; (d) to pay to the United States, if
necessary, such sums of money representing required rebates of excess arbitrage profits
relating to the Bonds; (e) to file such forms, statements and supporting documents as may be
required and in a timely manner; and (t) 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.
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Section 15. Designation of Issue. The City hereby covenants that the City and all
tiohow
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 1993, and the
City hereby designates the Bonds 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 16. Taxes Previously Levied. The taxes previously levied to pay principal
of and interest on the Outstanding Bonds, to the extent such principal and interest is
provided by the Refunding, shall be abated. The filing of a certificate of abatement with the
County Clerks of the Counties of Kane and Cook, Illinois, as hereinabove provided shall
constitute authority and direction for said County Clerks to make such abatement.
Section 17. Registered Form. The City recognizes that Section 149 of the Code
requires the Bonds to be issued and to remain in fully registered form in order to be and
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remain Tax-exempt. In this connection, the City agrees that it will not take any action to
permit the Bonds to be issued in, or converted into, bearer or coupon form.
Section 18. Rights and Duties of Bond Registrar. If requested by the Bond
Registrar and Paying Agent, any officer of the City is authorized to execute the Bond
Registrar and Paying Agent's standard form of agreement between the City and the Bond
Registrar and Paying Agent with respect to the obligations and duties of the Bond Registrar
and Paying Agent hereunder. In addition to the terms of such agreement and subject to
modification thereby, the Bond Registrar and Paying Agent by its acceptance of duties
hereunder agrees as follows:
A. to act as bond registrar, paying agent, authenticating agent, and transfer
agent as provided herein;
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(rw B. to maintain a list of Bondholders as set forth herein and to furnish such
list to the City upon request, but otherwise to keep such list confidential to the extent
permitted by law;
C. to give notice of redemption of Bonds as provided herein;
D. to cancel and/or destroy Bonds which have been paid at maturity or upon
earlier redemption or submitted for exchange or transfer;
E. to furnish the City at least annually a certificate with respect to Bonds
cancelled and/or destroyed; and
F. to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
The City Clerk of the City is hereby directed to file a certified copy of this Ordinance
with the Bond Registrar and the Paying Agent.
Section 19. Publication of Ordinance. That a full, true and complete copy of this
ordinance be published in pamphlet form within ten days after passage.
Section 20. Approval of Official Statement. The use of the Official Statement by
Speer Financial, Inc., Chicago, Illinois in connection with the sale of the Bonds is hereby
ratified. The form, terms and provisions of the Official Statement be, and it hereby is, in all
respects approved, and that the Mayor and the City Manager of the City be, and they hereby
are, authorized, empowered and directed to execute, acknowledge and deliver the Official
Statement in the name and on behalf of the City; and that from and after the execution and
delivery of the Official Statement, the officers, agent and employees of the City are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Official
Statement as executed, and any addenda, supplement, or amendment thereto, are hereby
approved, and the further use thereof in connection with any reoffering of the Bonds is
hereby authorized.
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Section 21. Redemption of Outstanding Bonds. The Outstanding Series 1986 Bonds
are hereby called for redemption on July 1, 1996 at par plus accrued interest and without
premium. The Outstanding Series 1989 Bonds are hereby called for redemption on
October 1, 1996 at a price of 101.75 percent of the principal amount of the Bonds redeemed
plus accrued interest. The appropriate City officials are hereby authorized and directed to
enter into an Escrow Agreement in substantially the form before this meeting to provide for
the redemption of the Outstanding Bonds and to give to the holders of the Outstanding Bonds
such notices of redemption as are required by the ordinances authorizing their issuance.
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B. to maintain a list of Bondholders as set forth herein and to furnish such
list to the City upon request, but otherwise to keep such list confidential to the extent
permitted by law;
C. to give notice of redemption of Bonds as provided herein;
D. to cancel and/or destroy Bonds which have been paid at maturity or upon
earlier redemption or submitted for exchange or transfer;
E. to furnish the City at least annually a certificate with respect to Bonds
cancelled and/or destroyed; and
F. to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
The City Clerk of the City is hereby directed to file a certified copy of this Ordinance
with the Bond Registrar and the Paying Agent.
Section 19. Publication of Ordinance. That a full, true and complete copy of this
ordinance be published in pamphlet form within ten days after passage.
Section 20. Approval of Official Statement. The use of the Official Statement by
Speer Financial, Inc., Chicago, Illinois in connection with the sale of the Bonds is hereby
ratified. The form, terms and provisions of the Official Statement be, and it hereby is, in all
respects approved, and that the Mayor and the City Manager of the City be, and they hereby
are, authorized, empowered and directed to execute, acknowledge and deliver the Official
Statement in the name and on behalf of the City; and that from and after the execution and
delivery of the Official Statement, the officers, agent and employees of the City are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Official
Statement as executed, and any addenda, supplement, or amendment thereto, are hereby
approved, and the further use thereof in connection with any reoffering of the Bonds is
hereby authorized.
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•
. Section 21. Redemption of Outstanding Bonds. The Outstanding Series 1986 Bonds
are hereby called for redemption on July 1, 1996 at par plus accrued interest and without
premium. The Outstanding Series 1989 Bonds are hereby called for redemption on
October 1, 1996 at a price of 100.75 percent of the principal amount of the Bonds redeemed
plus accrued interest. The appropriate City officials are hereby authorized and directed to
enter into an Escrow Agreement in substantially the form before this meeting to provide for
the redemption of the Outstanding Bonds and to give to the holders of the Outstanding Bonds
such notices of redemption as are required by the ordinances authorizing their issuance.
r►
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Section 22. 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: Councilmembers Fox, Moylan, Popple , Walters ,
Yearman,and Mayor VanDeVoorde
NAYS: None
ABSENT: Councilmember Gilliam
ADOPTED: March 17, 1993
APPROVED: March 17 , 1993
Mayor, (ty of Elgin
Kane and Cook Counties, Illinois
Recorded In City Records: March 18 , 1993.
Published in pamphlet form by authority of the City Council on March 19 , 1993.
Attest:
40 •� h
City Clerk, City of Elgin
Kane and Cook Counties, Illinois
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ORDINANCE NUMBER S-1-93
AN ORDINANCE providing for the issuance of $6,505,000 General
Obligation Bonds, Series 1993, of the City of Elgin, Kane and
Cook Counties, Illinois, and providing for the levy and collection
of a direct annual tax for the payment of the principal of and
interest on said bonds.
WHEREAS, the City 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, on the 23rd day of April, 1975, the City Council of the City did adopt an
ordinance determining the procedures to be followed in the borrowing of money for public
purposes of the City and in evidence of such borrowing the issuing of full faith and credit
bonds of the City without referendum approval, such ordinance being entitled:
ORDINANCE No. G22-75
AN ORDINANCE establishing procedures to be followed by the City
of Elgin, Kane and Cook Counties, Illinois, in issuing non-
referendum general obligation bonds
which ordinance was amended by Ordinance No. G 14-80 adopted on January 28, 1980, by
Ordinance No. 64-80 adopted on October 8, 1980, by Ordinance No. G39-82 adopted on
July 28, 1982 and by Ordinance No. G31-92 adopted on June 17, 1992 (Ordinance No.
G22-75 as so amended being referred to hereinafter as the "Enabling Ordinance"); and
WHEREAS, the City Council of the City (the "City Council") has heretofore
determined and does hereby determine that it is necessary and advisable for the public
health, safety, welfare, and convenience of residents of the City that the City undertake to
fund certain public improvements and various other projects and related costs (which
improvements, together with all related expenses as hereinafter more specifically
enumerated, may be referred to as the "Project"), all in accordance with the preliminary
plans and specifications prepared by engineers and approved by the City Council and now on
file with the City Clerk; and
WHEREAS, the City has heretofore issued its $750,000 General Obligation Corporate
Purpose Bonds, Series 1986 maturing on January 1 of the years 2000 to 2002, inclusive (the
"Series 1986 Bonds"), and its $1,245,000 General Obligation Bonds, Series 1989-A
maturing on October 1 of the years 2003 to 2009, inclusive (the "Series 1989 Bonds"),
which bonds are presently outstanding and unpaid (together, the "Outstanding Bonds") and
of which bonds the Series 1986 Bonds are callable on July 1, 1996 and the Series 1989
Bonds are callable on October 1, 1996 at the prices set forth in the ordinances authorizing
the same; and
WHEREAS, the City Council has heretofore determined and does hereby determine
that it is necessary and advisable for the public health, safety, welfare and convenience of the
residents of the City that the City undertake to refund the Outstanding Bonds (which
refunding, together with all related expenses as hereinafter more specifically enumerated,
may be referred to as the "Refunding"); and
WHEREAS, the estimated cost to the City of the Project and the Refunding is the sum
of$6,505,000 and estimated investment earnings; and
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WHEREAS, there are insufficient funds of the City on hand and lawfully available to
pay the costs of the Project and the Refunding; and
WHEREAS, the City Council does hereby determine that it is advisable and in the best
interests of the City to borrow $6,505,000 at this time and, in evidence of such borrowing,
issue its full faith and credit bonds in the principal amount of$6,505,000;
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 and in accordance with the
Enabling Ordinance, 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:
"Bond" or "Bonds" means one or more, as applicable, of the $6,505,000 General
Obligation Bonds, Series 1993, authorized to be issued by this Ordinance.
"Bond Fund" means the Bond Fund established and defined in Section 11 of this
Ordinance.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence
the registration and transfer of the Bonds.
"Bond Registrar" means American National Bank and Trust Company of Chicago,
Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor
designated as Bond Registrar hereunder.
"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.
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"Ordinance" means this Ordinance, numbered S-1-93, and passed by the City Council
on the 17th day of March, 1993.
"Outstanding Bonds" means the outstanding and unpaid Series 1986 Bonds and Series
1989 Bonds described more fully in the preambles hereto and which are being refunded by
the Refunding.
"Paying Agent" means American National Bank and Trust Company of Chicago,
Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor
designated as Paying Agent hereunder.
"Project" means the improvement project to fund certain public improvements and
various other projects and related costs.
"Project Fund (1993)" means the Project Fund established and defined in Section 11
of this Ordinance.
"Refunding" means the refunding of the Outstanding Bonds on their earliest
redemption dates as more fully set forth herein.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and
received thereon as not includible in the gross income of the owners thereof under the 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.
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Section 3. Determination To Issue Bonds. It is necessary and in the best interests
of the City to acquire and construct the Project, to accomplish the Refunding and to pay all
related costs and expenses incidental thereto, and to borrow money and issue the Bonds for
such purposes. It is hereby found and determined that such borrowing of money is
necessary for the welfare 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. Bond Details. For the purpose of providing for the payment of the
costs of the Project and the Refunding and to pay all related costs and expenses incidental
thereto, there shall be issued and sold the Bonds in the principal amount of$6,505,000. The
Bonds shall each be designated "General Obligation Bond, Series 1993"; be dated March 15,
1993; and shall also bear the date of authentication thereof. The Bonds shall be in fully
registered form, shall be in denominations of $5,000 or integral multiples thereof (but no
single Bond shall represent principal maturing on more than one date), shall be numbered
consecutively in such fashion as shall be determined by the Bond Registrar, and shall become
due and payable serially on January 1 of each of the years and in the amounts (being subject
to the right of prior redemption hereinafter set forth) and bearing interest at the rates
percent per annum as follows:
-5-
YEAR AMOUNT($) RATE(%)
1995 10,000 5.125
1996 10,000 5.125
1997 30,000 5.125
1998 230,000 4.5
1999 230,000 4.2
2000 580,000 4.4
2001 775,000 4.5
2002 1,765,000 4.75
2003 1,615,000 4.8
2004 155,000 5.0
2005 165,000 5.0
2006 170,000 5.0
2007 180,000 5.0
2008 190,000 5.0
2010 400,000 5.375
The Bonds shall bear interest from the later of their dated date as herein provided or
from the most recent interest payment date to which interest has been paid or duly provided
for, such interest (computed upon the basis of a 360-day year of twelve 30-day months)
being payable on January 1 and July 1 of each year, commencing on January 1, 1994.
Interest on each Bond 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 Bond is registered at the close of business on the 15th day of the month next
preceding the interest payment date and shall be paid by check or draft of the Paying Agent,
payable upon presentation in lawful money of the United States of America, mailed to the
address of such Registered Owner as it appears on such registration books or at such other
address furnished in writing by such Registered Owner to the Bond Registrar. The principal
of the Bonds shall be payable in lawful money of the United States of America upon
presentation thereof at the principal corporate trust office of the Paying Agent in the City of
Chicago, Illinois, or at successor Paying Agent and locality.
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Section 5. Execution; Authentication. The Bonds shall be executed on behalf of
the City by the manual or facsimile signature of its Mayor and attested by the manual or
facsimile signature of its City Clerk, as they may determine, and shall have impressed or
imprinted thereon the corporate seal or facsimile thereof of the City. In case any such
officer whose signature shall appear on any Bond shall cease to be such officer before the
delivery of such Bond, such signature shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office until delivery. All Bonds shall
have thereon a certificate of authentication, substantially in the form hereinafter set forth,
duly executed by the Bond Registrar as authenticating agent of the City and showing the date
of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any
security or benefit under this Ordinance unless and until such certificate of authentication
shall have been duly executed by the Bond Registrar by manual signature, and such
certificate of authentication upon any such Bond shall be conclusive evidence that such Bond
has been authenticated and delivered under this Ordinance. The certificate of authentication
on any Bond shall be deemed to have been executed by it if signed by an authorized officer
of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate
of authentication on all of the Bonds issued hereunder.
Section 6. Registration of Bonds;Persons Treated as Owners;Redemption
A. General. The City shall cause the Bond Register to be kept at the principal
corporate trust office of the Bond Registrar in the City of Chicago, Illinois; and the same is
hereby constituted and appointed the registrar of the City for the Bonds. The City is
authorized to prepare, and the Bond Registrar or such other agent as the City may designate
shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and
exchange of Bonds.
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Any fully registered Bond or Bonds may be exchanged upon presentation at the
principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, duly
endorsed by, or accompanied by a written instrument or instruments authorizing such
exchange in form satisfactory to the Bond Registrar and duly executed by, the registered
owner or his attorney duly authorized in writing, for a like aggregate principal amount of
Bond or Bonds of the same maturity, of other authorized denominations and of the same
interest rate.
Upon surrender for transfer of any Bond at the principal corporate trust office of the
Bond Registrar in the City of Chicago, Illinois, duly endorsed by, or accompanied by a
written instrument or instruments of transfer in form satisfactory to the Bond Registrar and
duly executed by, the registered owner or his attorney duly authorized in writing, the City
shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the
transferee or transferees a new fully registered Bond or Bonds of the same maturity, of
authorized denominations, for a like aggregate principal amount and interest rate.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the 15th day of the month next preceding an interest payment date to such
interest payment date or during the period of 15 days preceding the giving of notice of
redemption of Bonds or to transfer or exchange any Bond all or a portion of which has been
called for redemption.
The execution by the City of any fully registered Bond shall constitute full and due
authorization of such Bond, and the Bond Registrar shall thereby be authorized to
authenticate, date and deliver such Bond; provided, however, the principal amount of Bonds
of each maturity authenticated by the Bond Registrar shall not at any one time exceed the
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authorized principal amount of Bonds for such maturity less the amount of such Bonds
which have been paid.
The person in whose name any Bond shall be registered shall be deemed and regarded
as the absolute owner thereof for all purposes, and payment of the principal of or interest on
any Bond shall be made only to or upon the order of the registered owner thereof or his
legal representative. All such payments shall be valid and effectual to satisfy and discharge
the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any such transfer or exchange of Bonds, but the
City or the Bond Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any such transfer or
exchange of Bonds, except that no such payment may be required in the case of the issuance
of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption.
B. Redemption. The Bonds due on January 1, 2010 are subject to mandatory
redemption at par and accrued interest to the date fixed for redemption without premium,
such Bonds to be selected in such manner as shall be reasonably determined by the Bond
Registrar, and such Bonds to be redeemed on January 1 of each of the years and in the
principal amounts as follows:
YEAR AMOUNT
2009 $195,000
2010 $205,000 (final maturity)
Bonds maturing on or after January 1, 2002 are redeemable prior to maturity thereof
at the option of the City, in whole or in part, on January 1, 2001 or on any date thereafter,
and if less than all of the outstanding Bonds are to be redeemed at any one time, the Bonds to
be called shall be called in any order of their maturity and if less than all of a single
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maturity is so redeemed then by lot within a maturity in the manner hereinafter provided,
the Bonds to be redeemed at the redemption price of par plus accrued interest to the date
fixed for redemption.
The City shall, at least 45 days prior to the redemption date (unless a shorter time
period shall be satisfactory to the Bond Registrar), notify the Bond Registrar of such
redemption date and of the principal amount and maturity of the Bonds to be redeemed. For
purposes of any redemption of less than all of the outstanding Bonds of a single maturity,
and in the event there is more than one registered owner of a given maturity to be
redeemed, the particular Bonds or portions of Bonds to be redeemed shall be selected by the
Bond Registrar, by lot from the outstanding Bonds of the maturity or maturities selected, by
such method as the Bond Registrar shall deem fair and appropriate; provided that such
lottery shall provide for the selection for redemption of Bonds or portions thereof so that
any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for redemption
as any other such $5,000 Bond or $5,000 portion.
Unless waived by any registered owner of Bonds to be redeemed, official notice of the
call for any such redemption shall be given by the Bond Registrar on behalf of the City by
mailing the redemption notice by registered or certified mail at least 30 days and not more
than 60 days prior to the date fixed for redemption to the registered owner of the Bond or
Bonds to be redeemed at the address shown on the Bond Register or at such other address as
is furnished in writing by such registered owner to the Bond Registrar.
All official notices of redemption shall state:
(a) the redemption date;
(b) the redemption price;
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(c) the identification of the Bonds to be redeemed, including (i) the date of
issue of the Bonds as originally issued, (ii) the maturity date and interest rate borne by
each Bond to be redeemed, (iii) the respective principal amount redeemed of each
Bond to be redeemed in part, (iv) the CUSIP of each Bond to be redeemed, and (v)
any other descriptive information needed to identify accurately the Bonds being
redeemed;
(d) a statement that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption, and
that interest thereon shall cease to accrue from and after said date; and
(e) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be at the principal corporate trust
office of the Bond Registrar in the City of Chicago, Illinois or at a successor Bond
Registrar as may then be acting.
Official notice of redemption having been given as aforesaid, the Bonds or portions of
Bonds so to be redeemed shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date (unless the City shall
default in the payment of the redemption price), such Bonds or portions of Bonds shall cease
to bear interest. Such notice may be waived in writing by a registered owner of a Bond
entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by registered owners shall be filed with the
Bond Registrar, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver. Upon surrender of such Bonds for redemption in
accordance with said notice, such Bonds shall be paid by the Bond Registrar at the
redemption price. The procedure for the payment of interest due as part of the redemption
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price shall be as herein provided for payment of interest otherwise due. Upon surrender for
any partial redemption of any Bond, there shall be prepared for the registered owner a new
Bond or Bonds of like tenor, of authorized denominations, of the same maturity, and
bearing the same rate of interest, in the amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid, bear interest from the
redemption date at the rate borne by the Bond or portion of Bond so called for redemption.
All Bonds which have been redeemed shall be cancelled and destroyed by the Bond Registrar
and shall not be reissued.
Upon the payment of the redemption price of Bonds being redeemed, each check or
other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by
issue and maturity, the Bonds being redeemed with the proceeds of such check or other
transfer.
C. Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
described in Section 4 hereof. Upon initial issuance, the ownership of each such Bond shall
be registered in the Bond Register in the name of Kray & Co., or any successor thereto, as
nominee of the Midwest Securities Trust Company, Chicago, Illinois, and its successors and
assigns ("MSTC"). All of the outstanding Bonds shall be registered in the Bond Register in
the name of Kray & Co., as nominee of MSTC, except as hereinafter provided. The Mayor,
City Clerk and City Treasurer are each authorized to execute and deliver on behalf of the
City such letters to or agreements with MSTC and the Bond Registrar as shall be necessary
to effectuate such book-entry system (any such letter or agreement being referred to herein
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as the "Representation Letter"), which Representation Letter may provide for the payment
of principal of or interest on the Bonds by wire transfer.
With respect to Bonds registered in the Bond Register in the name of Kray & Co., as
nominee of MSTC, the City and the Bond Registrar shall have no responsibility or obligation
to any broker-dealer, bank or other financial institution for which MSTC holds Bonds from
time to time as securities depository (each such broker-dealer, bank or other financial
institution being referred to herein as a "MSTC Participant") or to any person on behalf of
whom such a MSTC Participant holds an interest in the Bonds. Without limiting the
immediately preceding sentence, the City and the Bond Registrar shall have no responsibility
or obligation with respect to (i) the accuracy of the records of MSTC, Kray & Co. or any
MSTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to
i
any MSTC Participant or any other person, other than a registered owner of a Bond as
shown in the Bond Register, of any notice with respect to the Bonds, including any notice of
redemption, or (iii) the payment to any MSTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register, of any amount with respect to
the principal of or interest on the Bonds. The City and the Bond Registrar may treat and
consider the person in whose name each Bond is registered in the Bond Register as the
holder and absolute owner of such Bond for the purpose of payment of principal and interest
with respect to such Bond, for the purpose of giving notices of redemption and other matters
with respect to such Bond, for the purpose of registering transfers with respect to such
Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of
and interest on the Bonds only to or upon the order of the respective registered owners of
the Bonds, as shown in the Bond Register, or their respective attorneys duly authorized in
writing, and all such payments shall be valid and effective to fully satisfy and discharge the
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City's obligations with respect to payment of the principal of and interest on the Bonds to the
extent of the sum or sums so paid. No person other than a registered owner of a Bond as
shown in the Bond Register shall receive a Bond certificate evidencing the obligation of the
City to make payments of principal and interest with respect to any Bond. Upon delivery by
MSTC to the Bond Registrar of written notice to the effect that MSTC has determined to
substitute a new nominee in place of Kray & Co., and subject to the provisions in Section 5
hereof with respect to the payment of interest to the registered owners of Bonds at the close
of business on the 15th day of the month next preceding the applicable interest payment date,
the name "Kray & Co." in this Ordinance shall refer to such new nominee of MSTC.
In the event that (i) the City determines that MSTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among
the City, the Bond Registrar and MSTC evidenced by the Representation Letter shall be
terminated for any reason or (iii) the City determines that it is in the best interests of the
beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall
notify MSTC and MSTC Participants of the availability through MSTC of Bond certificates
and the Bonds shall no longer be restricted to being registered in the Bond Register in the
name of Kray & Co., as nominee of MSTC. At that time, the City may determine that the
Bonds shall be registered in the name of and deposited with such other depository operating
a universal book-entry system, as may be acceptable to the City, or such depository's agent
or designee, and if the City does not select such alternate universal book-entry system, then
the Bonds may be registered in whatever name or names the registered owners of Bonds
transferring or exchanging Bonds shall designate, in accordance with the provisions of
Section 6 hereof.
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Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Kray & Co., as nominee of MSTC, all payments with
respect to principal of and interest on such Bond and all notices with respect to such Bond
shall be made and given, respectively, in the manner provided in the Representation Letter.
Section 7. Form of Bond. The Bonds shall be in substantially the form hereinafter
set forth; provided, however, that if the text of the Bond is to be printed in its entirety on
the front side of the Bond, then paragraph [2] and the legend "See Reverse Side for
Additional Provisions" shall be omitted and paragraphs [6] through [12] shall be inserted
immediately after paragraph [1]:
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[Form of Bond - Front Side]
REGISTERED REGISTERED
No. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTIES OF KANE AND COOK
CITY OF ELGIN
GENERAL OBLIGATION
BOND, SERIES 1993
See Reverse Side
for Additional
Provisions
Interest Maturity Dated
Rate: % Date: January 1, Date: March 15, 1993 [CUSIP]
Registered Owner:
Principal Amount:
[11 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 Bond 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
January I and July 1 of each year, commencing January 1, 1994, until said Principal
Amount is paid. The principal of this Bond is payable in lawful money of the United States
of America upon presentation hereof at the principal corporate trust office of American
National Bank and Trust Company of Chicago, Chicago, Illinois, as paying agent (the
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"Paying Agent"). Payment of interest shall be made to the Registered Owner hereof as
shown on the registration books of the City maintained by American National Bank and
Trust Company of Chicago, Chicago, Illinois (the "Bond Registrar"), at the close of business
on the 15th day of the month next preceding the interest payment date and shall be paid by
check or draft of the Paying Agent, payable upon presentation in lawful money of the United
States of America, mailed to the address of such Registered Owner as it appears on such
registration books or at such other address furnished in writing by such Registered Owner to
the Bond Registrar.
[2] Reference is hereby made to the further provisions of this Bond set forth on the
reverse hereof, and such further provisions shall for all purposes have the same effect as if
set forth at this place.
[3] It is hereby certified and recited that all 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 Bond have existed and have been properly done, happened and been
performed in regular and due form and time as required by law; that the indebtedness of the
City, represented by the Bonds, and including all other indebtedness of the City, howsoever
evidenced or incurred, does not exceed any constitutional or statutory or other lawful
limitation; and that provision has been made for the collection of a direct annual tax, in
addition to all other taxes, on all of the taxable property in the City sufficient to pay the
interest hereon as the same falls due and also to pay and discharge the principal hereof at
maturity.
[4] This Bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Bond Registrar.
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y
[5] IN WITNESS WHEREOF the City of Elgin, Kane and Cook Counties, Illinois, by its
City Council, has caused this Bond 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.
jFacsimile Signaturel
Mayor, City of Elgin
Kane and Cook Counties, Illinois
Attest:
jFacsimile Signaturel
City Clerk, City of Elgin
Kane and Cook Counties, Illinois
(SEAL)
Date of Authentication: ,
CERTIFICATE OF Bond Registrar and Paying Agent:
AUTItENTICATION American National Bank and Trust
Company of Chicago
Chicago, Illinois
This Bond is one of the Bonds
described in the within mentioned
Ordinance and is one of the $6,505,000
General Obligation Bonds, Series 1993,
having a Dated Date of March 15, 1993, of
the City of Elgin, Kane and Cook Counties,
Illinois.
AMERICAN NATIONAL BANK AND TRUST COMPANY OF CMCAGO
as Bond Registrar
By
Authorized Officer
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[Form of Bond - Reverse Side]
City of Elgin, Kane and Cook Counties, Illinois
General Obligation Corporate Purpose Bond
Series 1993
[6] This bond is one of a series of bonds (the "Bonds") in the aggregate principal
amount of $6,505,000 issued by the City for the purpose of paying the costs of a Project and
of refunding certain outstanding general obligation bonds of the City and of paying expenses
incidental thereto, all as described and defined in the ordinance authorizing the Bonds (the
"Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of
Section 6 of Article VII of the Constitution of the State of Illinois, with the Procedural
Ordinances of the City adopted in the exercise of its home rule powers in issuing bonds
without referendum, and with the Ordinance, which has been duly passed by the City
Council and published, in all respects as by law required.
[7] The Bonds are issued in fully registered form in the denominations of $5,000 or
authorized integral multiples thereof. This Bond may be exchanged upon presentation and
surrender for cancellation hereof at the principal corporate trust office of the Bond
Registrar in the City of Chicago, Illinois, but only in the manner, subject to the limitations
and upon payment of the charges provided in the Ordinance, for a like aggregate principal
amount of Bonds of the same maturity and interest rate of other authorized denominations.
This Bond is transferable by the Registered Owner hereof in person or by his attorney duly
authorized in writing at the principal corporate trust office of the Bond Registrar in the City
of Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of
the charges provided in the Ordinance, and upon presentation and surrender for cancellation
of this Bond. Upon such transfer a new Bond or Bonds 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 Bonds maturing on January 1, 2010 are subject to mandatory redemption at
par and accrued interest to the date fixed for redemption without premium on January 1 of
each of the years 2009 to 2010, inclusive, such Bonds to be selected by the Bond Registrar as
provided in the Ordinance and in the amounts set forth in the Ordinance.
[9] The Bonds maturing on or after January 1, 2002 are redeemable prior to maturity
at the option of the City, in whole or in part on January 1, 2001 or on any date thereafter,
and if less than all of the outstanding Bonds are to be redeemed, the Bonds to be called shall
be called in the order of maturity designated by the City and if less than all of a single
maturityis so redeemed then b lot within a maturity in the manner provided in the
Y t
Ordinance, the Bonds to be redeemed at the redemption price of par plus accrued interest to
the date fixed for redemption.
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[10] The Bond Registrar shall not be required to transfer or exchange any Bond
during the period from the 15th day of the month next preceding an interest payment date to
such interest payment date or during the period of 15 days preceding the giving of notice of
redemption of Bonds or to transfer or exchange any Bond all or a portion of which as been
called for redemption.
[11] The City, the Bond Registrar and the Paying Agent may deem and treat the
Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment
of or on account of principal hereof and interest due hereon and for all other purposes, and
the City, the Bond Registrar and the Paying Agent shall not be affected by any notice to the
contrary.
[12] The City has designated this Bond a"qualified tax-exempt obligation'pursuant to
Section 265(b)(3) of the Internal Revenue Code of 1986.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint ,
as attorney to transfer the said Bond on the
books kept for registration thereof with full power of substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and assignment must correspond with the name of
the Registered Owner as it appears upon the face of the within Bond in every
particular, without alteration or enlargement or any change whatever.
Section 8. Tax Levy. For the purpose of providing funds required to pay the
interest on the Bonds promptly when and as the same falls due, and to pay and discharge the
principal thereof at maturity, there is hereby levied upon all of the taxable property within
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the City, in the years for which any of the Bonds are outstanding, a direct annual tax
sufficient for that purpose; and there is hereby levied on all of the taxable property in the
City, in addition to all other taxes, the following direct annual tax, to-wit:
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
1993 $ 564,169.31 for principal and interest up to and
including January 1, 1995
1994 $ 318,312.52 for principal and interest
1995 $ 337,800.02 for principal and interest
1996 $ 536,262.52 for principal and interest
1997 $ 525,912.52 for principal and interest
1998 $ 866,252.52 for principal and interest
1999 $1,035,732.52 for principal and interest
2000 $1,990,857.52 for principal and interest
2001 $1,757,020.02 for principal and interest
2002 $ 219,500.02 for principal and interest
2003 $ 221,750.02 for principal and interest
2004 $ 218,500.02 for principal and interest
2005 $ 220,000.02 for principal and interest
2006 $ 221,000.02 for principal and interest
2007 $ 216,500.02 for principal and interest
2008 $ 216,018.76 for principal and interest
Interest or principal coming due at any time when there are insufficient funds on hand
from the foregoing tax levy to pay the same shall be paid promptly when due from current
funds on hand in advance of the collection of said taxes herein levied; and when said taxes
shall have been collected, reimbursement shall be made to said funds in the amount so
advanced. The City covenants and agrees with the purchasers and registered owners of the
Bonds that so long as any of the Bonds remain outstanding, the City will take no action or
fail to take any action which in any way would adversely affect the ability of the City to levy
and collect the foregoing tax levy. The City and its officers will comply with all present and
future applicable laws in order to assure that the foregoing taxes may be levied, extended
and collected as provided herein and deposited into the Bond Fund.
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Section 9. Filing with the County Clerks. Promptly, as soon as this Ordinance
becomes effective, a copy hereof, certified by the City Clerk of the City, shall be filed with
the County Clerks of The Counties of Kane and Cook, Illinois; and each of said County
Clerks shall in and for each of the years 1993 to 2008, inclusive, ascertain the rate per cent
required to produce the aggregate tax hereinbefore provided to be levied in each of said
years; and each of said County Clerks shall extend the same for collection on the tax books
in connection with other taxes levied in said years in and by the City for general corporate
purposes of the City; and in said years such annual tax shall be levied and collected by and
for and on behalf of the City in like manner as taxes for general corporate purposes for said
years are levied and collected, and in addition to and in excess of all other taxes.
Section 10. Sale of Bonds. The Bonds shall be executed as in this Ordinance
provided as soon after the passage hereof as may be, shall be deposited with the City
Treasurer, and shall be by the Treasurer delivered to the purchaser thereof, namely,
Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois, upon payment of the purchase
price agreed upon, the same being $6,439,950 plus accrued interest to date of delivery. The
contract for the sale of the Bonds 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 11. Creation of Funds and Appropriations. The proceeds derived from the
sale of the Bonds shall be used as follows:
A. Accrued interest and premium, if any, on the Bonds shall be and is
hereby appropriated for the purpose of paying the first interest due on the Bonds and
to such end is hereby ordered to be deposited into the "General Obligation Bonds,
Series 1993, Bond Fund" (the "Bond Fund"), hereby created, which shall be the fund
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l
for the payment of principal of and interest on the Bonds. Taxes received for the
payment of the Bonds shall be deposited into the Bond Fund and used solely and only
for the purpose of paying the Bonds. Interest received from investments on deposit in
the Bond 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. A sum which, together with other legally available funds, shall be
sufficient to accomplish the Refunding shall be deposited in escrow pursuant to the
escrow agreement approved herein.
C. The balance of the proceeds of the Bonds shall be set aside in a separate
fund, hereby created, and designated as the "Project Fund (1992)." Money in said
Fund shall be used to pay all costs of the Project and all costs and expenses incidental
or allocable or related thereto, including all costs of issuance of the Bonds.
Section 12. Not Private Activity Bonds. None of the Bonds is a "private activity
bond" as defined in Section 141(a) of the Code. In support of such conclusion, the City
certifies, represents and covenants as follows:
A. None of the proceeds of the Bonds are to be used, directly or indirectly,
in any trade or business carried on by any person other than a state or local
governmental unit.
B. The payment of the principal of or the interest on the Bonds will not be,
directly or indirectly (i) secured by any interest in (A) property used or to be used in
any activity carved 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.
C. None of the proceeds of the Bonds, the Series 1986 Bonds or the Series
1989 Bonds have been or are to be used, directly or indirectly, to make or finance
loans to any persons.
D. No user of the Project or the facilities financed, refinanced or
reimbursed, directly or indirectly, in whole or in part, with the proceeds (including
investment earnings) of the Series 1986 Bonds or the Series 1989 Bonds or the Series
1989 Bonds (the "Price Projects") other than the City will use the same on any basis
other than the same basis as the general public; and no person will be a user of the
Project or the Price Projects as a result of (i) ownership or (ii) actual or beneficial use
pursuant to a lease, a management or incentive payment contract, or (iii) any other
arrangement, agreement or understanding, whether written or oral.
-23-
Section 13. General Arbitrage Covenants. The City represents and certifies as
follows with respect to the Bonds:
A. The City has heretofore incurred, or within six months after delivery of the
Bonds expects to incur, substantial binding obligations with respect to the Project to be paid
for with moneys received from the sale of the Bonds, said binding obligations comprising
binding contracts for the Project in not less than the amount of$100,000.
B. All of the Project proceeds of the Bonds, and investment earnings thereon, will
be expended on or before March 15, 1996 for the purpose of paying the costs of the Project,
including expenses incidental thereto, said date being within three years following the date of
issue of the Bonds.
C. Work on the Project is expected to proceed with due diligence to completion.
D. No acquisition or improvement made as a part of the Project has been or is
expected to be sold or otherwise disposed of in whole or in material part prior to the last
maturity of the Bonds. "Material part" means (i) land, or (ii) any improvement, or (iii)
personal property or fixtures in excess of that which is expected to be sold, traded in or
discarded upon wearing out or becoming obsolete.
E. The City will receive $6,439,950 plus accrued interest from the sale of the
Bonds. Accrued interest and premium, if any, on the Bonds is to be deposited into the Bond
Fund and used to pay first interest coming due on the Bonds.
F. Except for the Bond Fund, the City has not created or established and will not
create or establish any sinking fund, reserve fund or any other similar fund to provide for
the payment of the Bonds. The Bond Fund has been established and will be funded in a
manner primarily to achieve a proper matching of tax revenues and debt service, and will be
depleted at least annually to an amount not in excess of 1/12 the particular annual debt
-24-
service on the Bonds. Money deposited in the Bond Fund will be spent within a 12-month
period beginning on the date of deposit, and investment earnings in the Bond Fund will be
spent or withdrawn from the Bond Fund within a one-year period beginning on the date of
receipt.
G. The foregoing statements of expectation are based upon the following facts and
estimates:
(1) Amounts shown as received will be received pursuant to contract of sale.
(2) Amounts paid or to be paid into various funds and accounts have been
directed to be paid into said funds and accounts by authority hereof or are expected to
be so directed to be paid by further proceedings.
(3) The anticipated dates of the obligation of and expenditure of money in the
Project Fund (1993) derived from the sale of Bonds and the amounts to be spent on or
before such dates is based upon consultation with the architects, engineers and
administrative staff of the City charged with responsible supervision of the Project.
H. To the best of the knowledge and belief of the City Council, and of the
undersigned Mayor and City Clerk who are officers charged with the responsibility of
issuing the Bonds, there are no facts, estimates or circumstances that would materially
change the conclusions and representations set out in this Section, and the expectations set out
in this Section are reasonable.
I. The City has not been disqualified as, or disqualified as, or notified of any
disqualification or proposed disqualification of it by the Commissioner of the Internal
Revenue Service as a bond issuer which may certify bond issues under Treas. Reg. §1.103-
13 (a)(2)(ii) (1979).
The City also certifies and further covenants with the purchasers and registered
owners of the Bonds from time to time outstanding that moneys on deposit in any fund or
account in connection with the Bonds, whether or not such moneys were derived from the
-25-
proceeds of the sale of the Bonds or from any other source, will not be used in a manner
which will cause the Bonds to be "arbitrage bonds" within the meaning of the Code Section
148 and any lawful regulations promulgated thereunder, including Treas. Reg. §§1.103-13,
1.103-14 and 1.103-15 (1979), Treas. Reg. §§1.48-0 through 1.148-11 and Temp. Treas.
Reg. §§1.148-12T and 1.148-13T as the same presently exist or may from time to time
hereafter be amended, supplemented or revised. The City reserves the right to use or invest
moneys in connection with the Bonds in any manner, notwithstanding the covenants herein,
provided it shall first have received an opinion from an attorney or a firm of attorneys of
nationally recognized standing in matters pertaining to Tax-exempt bonds to the effect that
use or investment of such moneys as contemplated will not result in loss of Tax-exempt
status for the Bonds.
Section 14. Further Tax Covenants. The City agrees to comply with all provisions
of the Code which, if not complied with by the City, would cause the Bonds not to be Tax-
exempt. In furtherance of the foregoing provisions, but without limiting their generality,
the City agrees: (a) through its officers to make such further. specific covenants,
representations as shall be truthful, and assurances as may be necessary or advisable; (b) to
comply with all representations, covenants and assurances contained in certificates or
agreements as may be prepared by counsel approving the Bonds; (c) to consult with such
counsel and to comply with such advice as may be given; (d) to pay to the United States, if
necessary, such sums of money representing required rebates of excess arbitrage profits
relating to the Bonds; (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.
-26-
Section 15. Designation of Issue. 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 1993, and the
City hereby designates the Bonds 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 16. Taxes Previously Levied. The taxes previously levied to pay principal
of and interest on the Outstanding Bonds, to the extent such principal and interest is
provided by the Refunding, shall be abated. The filing of a certificate of abatement with the
County Clerks of the Counties of Kane and Cook, Illinois, as hereinabove provided shall
constitute authority and direction for said County Clerks to make such abatement.
Section 17. Registered Form. The City recognizes that Section 149 of the Code
I
requires the Bonds to be issued and to remain in fully registered form in order to be and
remain Tax-exempt. In this connection, the City agrees that it will not take any action to
permit the Bonds to be issued in, or converted into, bearer or coupon form.
Section 18. Rights and Duties of Bond Registrar. If requested by the Bond
Registrar and Paying Agent, any officer of the City is authorized to execute the Bond
Registrar and Paying Agent's standard form of agreement between the City and the Bond
Registrar and Paying Agent with respect to the obligations and duties of the Bond Registrar
and Paying Agent hereunder. In addition to the terms of such agreement and subject to
modification thereby, the Bond Registrar and Paying Agent by its acceptance of duties
hereunder agrees as follows:
A. to act as bond registrar, paying agent, authenticating agent, and transfer
agent as provided herein;
-27-
B. to maintain a list of Bondholders as set forth herein and to furnish such
list to the City upon request, but otherwise to keep such list confidential to the extent
permitted by law;
C. to give notice of redemption of Bonds as provided herein;
D. to cancel and/or destroy Bonds which have been paid at maturity or upon
earlier redemption or submitted for exchange or transfer;
E. to furnish the City at least annually a certificate with respect to Bonds
cancelled and/or destroyed; and
F. to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
The City Clerk of the City is hereby directed to file a certified copy of this Ordinance
with the Bond Registrar and the Paying Agent.
Section 19. Publication of Ordinance. That a full, true and complete copy of this
ordinance be published in pamphlet form within ten days after passage.
Section 20. Approval of Official Statement. The use of the Official Statement by
Speer Financial, Inc., Chicago, Illinois in connection with the sale of the Bonds is hereby
ratified. The form, terms and provisions of the Official Statement be, and it hereby is, in all
respects approved, and that the Mayor and the City Manager of the City be, and they hereby
are, authorized, empowered and directed to execute, acknowledge and deliver the Official
Statement in the name and on behalf of the City; and that from and after the execution and
delivery of the Official Statement, the officers, agent and employees of the City are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Official
Statement as executed, and any addenda, supplement, or amendment thereto, are hereby
approved, and the further use thereof in connection with any reoffering of the Bonds is
hereby authorized.
-28-
Section 21. Redemption of Outstanding Bonds. The Outstanding Series 1986 Bonds
are hereby called for redemption on July 1, 1996 at par plus accrued interest and without
premium. The Outstanding Series 1989 Bonds are hereby called for redemption on
October 1, 1996 at a price of 100.75 percent of the principal amount of the Bonds redeemed
plus accrued interest. The appropriate City officials are hereby authorized and directed to
enter into an Escrow Agreement in substantially the form before this meeting to provide for
the redemption of the Outstanding Bonds and to give to the holders of the Outstanding Bonds
such notices of redemption as are required by the ordinances authorizing their issuance.
-29-
i
Section 22. 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: Councilmemhers Fox, Moylan, Popple,
Walters , Yearman, and Mayor VanDeVoorde.
NAYS: None—
ABSENT. Councilman Gilliam
ADOPTED: March 17, 1993
APPROVED: March 17 , 1993
s/ George VanDeVoorde
Mayor, City of Elgin
Kane and Cook Counties, Illinois
Recorded In City Records: March 18 , 1993.
Published in pamphlet form by authority of the City Council on March -19, 1993.
Attest:
City Clerk, City of Elgin
Kane and Cook Counties, Illinois
-30-
NEW ISSUE Investment Rating:
SIGNED COPY
Moody's Investors Service . . . Aa
ADDENDUM DATED MARCH 17, 1993
TO PRELIMINARY OFFICIAL STATEMENT DATED MARCH 4, 1993
$6,505,000
CITY OF ELGIN
Kane and Cook Counties, Illinois
General Obligation Bonds, Series 1993
AMOUNTS, MATURITIES AND INTEREST RATES
Principal Due Interest Yield or Principal Due Interest Yield or
Amount Jan. 1 Rate Price Amount Jan. 1 Rate Price
$ 10,000. . . . 1995 5.125% 3.400% $1,615,000. . . . 2003 4.800% 4.850%
10,000. . . . 1996 5.125% 3.600% 155,000. . . . 2004 5.000% 5.000%
30,000. . . . 1997 5.125% 3.800% 165,000. . . . 2005 5.000% 5.100%
230,000. . . . 1998 4.500% 4.000% 170,000. . . . 2006 5.000% 5.250%
230,000. . . . 1999 4.200% 4.200% 180,000. . . . 2007 5.000% 5.400%
580,000. . . . 2000 4.400% 4.400% 190,000. . . . 2008 5.000% 5.500%
775,000. . . . 2001 4.500% 4.500%
1,765,000. . . . 2002 4.750% 4.750%
$ 400,000 . . . . . . . 5.375% - Term Bonds Due January 1, 2010 - Yield 5.650%
The Preliminary Official Statement of the City dated March 4, 1993 (the "Preliminary Official Statement") with
respect to the Bonds is incorporated by reference herein and made a part hereof. The "Final Official Statement" of the
City with respect to the Bonds as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission shall
be comprised of the following:
1. Preliminary Official Statement dated March 4, 1993; and
2. This Addendum dated March 17, 1993.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to make
any representations with respect to the Bonds other than as contained in the Final Official Statement and, if given or
made, such other information or representations must not be relied upon as having been authorized by the City. Certain
information contained in the Final Official Statement may be obtained from sources other than records of the City and,
while believed to be reliable, is not guaranteed as to completeness. NEITHER THE DELIVERY OF THE
PRELIMINARY OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE
THEREUNDER SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS
OF THE CITY SINCE THE DATE THEREOF.
The City has authorized preparation of the Final Official Statement containing pertinent information relative to
the Bonds and the City. Copies of that Final Official Statement can be obtained from the Underwriter, as defined herein.
Additional information may also be obtained from the City Manager, City Hall, 150 Dexter Court, Elgin, Illinois 60120,
the underwriting group managed by Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois, or from the Public
Finance Consultants to the City:
Established 1954
Speer Financial, Inc.
PUBLIC FINANCE CONSULTANTS
55 EAST MONROE STREET • CHICAGO, ILLINOIS 60603
Area 312-346-3700 Printed on Recycled Paper
ADDITIONAL INFORMATION
References herein to laws, rules, regulations, resolutions, ordinances, agreements, reports and other documents
do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by
reference to the particular document, the full text of which may contain qualifications of and exceptions to statements
made herein. Where full texts have not been included as appendices to the Preliminary Official Statement or the Final
Official Statement, they will be furnished on request.
ORIGINAL ISSUE DISCOUNT
The initial public offering prices of the Bonds due in the years 2003 and 2005 through 2010 (the "Discount
Bonds"), are less than the maturity value ("Face Amount") of such Bonds payable at the respective maturities.
Accordingly, the difference between the initial public offering price for each maturity of the Bonds, assuming it is the
first price at which a substantial amount of such Discount Bonds of each maturity are sold(the "Issue Price" for each such
maturity) and the respective Face Amounts due at stated maturity will be treated as "original issue discount" and will
constitute tax-exempt interest to the extent accrued as described below.
In the case of an owner who purchases a Discount Bond during the initial offering at the Issue Price and who
holds that Discount Bond until stated maturity, the full amount of such original issue discount will constitute interest
which is not includible in the gross income of the owner of such Discount Bond for federal income tax purposes and such
owner will not, under present federal income tax law, realize taxable capital gain upon payment of such Discount Bond
upon maturity.
The original issue discount on each Discount Bond is treated as accruing daily over the term of such Discount
Bond on the basis of a constant interest rate compounded at the end of each six-month period (or shorter period from the
date of original issue) ending on January 1 and July 1 (with straight line interpolation between compounding dates).
The Code provides, with respect to tax-exempt obligations such as the Discount Bonds,that the amount of original
issue discount accruing in each period will be added to the owner's tax basis for the Discount Bonds. Such adjusted basis
will be used to determine taxable gain or loss upon disposition of the Discount Bonds (including sale or payment at
maturity). An owner of a Bond who disposes of such Discount Bond prior to maturity should consult a tax advisor as
to the amount of original issue discount accrued over the period held and the amount of taxable gain or loss upon the sale
or other disposition of such Discount Bond prior to maturity.
As described above regarding tax-exempt interest, a portion of the original issue discount that accrues in each
year to an owner of a Discount Bond may result in certain collateral federal income tax consequences. In the case of a
corporation, such portion of the original issue discount will be included in the calculation of the corporation's alternative
minimum tax liability and the environmental tax liability. Corporate owners of any Discount Bonds should be aware that
the accrual of original issue discount in each year may result in an alternative minimum tax liability or an environmental
tax liability although the owners of such Discount Bonds will not receive a corresponding cash payment until a later year.
Owners who purchase the Discount Bonds in the initial offering but at a price other than the Issue Price or who
do not purchase the Discount Bonds in the initial offering should consult their tax advisors with respect to the tax
consequences of the ownership of the Bonds. The Code contains certain provisions relating to the accrual of original issue
discount in the case of subsequent purchasers of obligations such as the Discount Bonds. Subsequent purchasers of the
Discount Bonds should consult their tax advisors with respect to the tax consequences of the ownership of the Discount
Bonds.
Owners of the Bonds should consult their tax advisors with respect to the state and local tax consequences of
owning the Discount Bonds. Based upon the stated position of the Illinois Department of Revenue under Illinois income
tax law, and possibly under the applicable provisions governing determination of state and local taxes for other states,
accrued original issue discount on the Discount Bonds is deemed to be received in the year of accrual even though there
will not be a corresponding cash payment until the maturity of the Discount Bonds.
2
TERM BONDS - MANDATORY REDEMPTION
The Bonds due on January 1, 2010 are subject to mandatory redemption in part by lot in such manner as is
determined by the Bond Registrar, in the principal amounts thereof, without premium, plus accrued interest to the
redemption date, in the amounts on January 1, in each of the years set forth below:
January 1 Principal Amount
2009 $ 195,000
2010 205,000
INVESTMENT RATING
The Bonds have been rated "Aa" by Moody's Investors Service. The City has supplied certain information and
material concerning the Bonds and the City to the rating service shown on the cover page as part of its application for
an investment rating on the Bonds. Generally, such rating service bases its rating on such information and material, and
also on such investigations,studies and assumptions that it may undertake independently. There is no assurance that such
rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating
service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may
have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of investment
ratings may be obtained from the rating agency: Moody's Investors Service, 99 Church Street, New York, New York
10007, telephone 212-553-0300.
UNDERWRITING
The Bonds were offered for sale by the City at a public, competitive sale on March 17, 1993. The best bid
submitted at the sale was submitted by Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois, and associates
(collectively the "Underwriter"). The City awarded the contract for sale of the Bonds to the Underwriter at a price of
$6,439,950. The Underwriter has represented to the City that the Bonds have been subsequently re-offered to the public
initially at the yields or prices set forth in this Addendum.
QUALIFIED TAX-EXEMPT OBLIGATIONS
The City has designated the Bonds as "qualified tax-exempt obligations" pursuant to the small issuer exemption
provided by Section 265 (b) (3) of the Code.
AUTHORIZATION
The Official Statement dated March 4, 1993, and this Addendum dated March 17, 1993, for the $6,505,000,
General Obligation Bonds,` ' s 1993, have been prepared under the authority of the City and have been authorized for
distribution by the Ci y. /
/s/ E /s/ GEORG VAN DE VOORDE
City Manager Mayor
City of Elgin, Illinois City of Elgin, Illinois
3
c.
CITY OF ELGIN
KANE AND COOK COUNTIES, ILLINOIS
$6,505,000
GENERAL OBLIGATION BONDS,
SERIES 1993
1. Organization Certificate
2. Indebtedness Certificate
3. 1991 Valuation Certificate for Kane County
4. 1991 Valuation Certificate for Cook County
5. Contract Certificate
6. Bond Ordinance, including Minutes of the March 17, 1993 meeting of the City
Council
7. Filing Certificate of Kane County Clerk
8. Filing Certificate of Cook County Clerk
9. Certificate of Publication in Pamphlet Form
10. Specimen Bond No. 1
11. Incumbency, Non-Litigation, Non-Arbitrage, Comfort and Signature Identification
Certificate
12. Treasurer's Receipt
13. Certificate of Bond Registrar
14. Closing Opinion of the City Attorney
15. Tax Exemption Certificate and Agreement
16. Official Statement Certificate
17. Official Statement
18. Escrow Agreement
33720.02.01
749630/hhh
r
19. Report of Jerry L. Lacy, independent certified public accountant
20. Certificate of Escrow Agent
21. MSTC Representation Letter
22. IRS Form 8038-G
23. Legal Opinion of Chapman and Cutler
t
t
F
F
-2-
TELEPHONE 708/931-6100
PY
FAX 708/931-5610
in
FOR HEARING IMPAIRED
TDD 708/931-5616
µ - - CITY OF ELGIN 150 DEXTER COURT ELGIN, ILLINOIS 60120-5555
'VIII
Direct Line 931-5660
March 19 , 1993
Ms . Susan L. Carlson
Vice President
Speer Financial, Inc.
55 East Monroe Street, Suite 3435
Chicago, IL 60603
Dear Susan:
In accordance with your directions, I am enclosing the winning
bid form, which has been signed by Mayor VanDeVoorde and me.
Sincerely,
Dolonna "Loni" Mecum
dkm
Enclosure
Printed on recycled paper
PUBLIC FINANCE CONSULTANTS SINCE 1954
SPEER FINANCIAL INC.
ELWOOD BARCE RICHARD A.PAVIA KEVIN W.McCANNA DAVID F.PHILLIPS SUSAN L.CARLSON M.JOANNE FOERSTER
CHAIRMAN EMEMUS CHAIRMAN k CEO MESUMM VICE PRESMM VICE"XSM xr VICEFEESIDWr
March 17, 1993
The Honorable George Van De Voorde, and
Members of the City Council
City of Elgin
City Hall
150 Dexter Court
Elgin, Illinois 60120
Dear Mayor Van De Voorde and Members of the Board:
Bids were received today covering$6,505,000 General Obligation Bonds, Series 1993. There were five
bids received which are listed at the bottom of this letter in accordance with the attached signed bids.
Upon examination, it is our opinion that the bid of Griffin, Kubik, Stephens&Thompson, Inc., Chicago,
Illinois, and associates, is the best bid received, and it is further our opinion that the bid is favorable to
the City and should be accepted. We therefore recommend that the Bonds be awarded to that bidder at
a price of$6,439,950 (adjusted), plus accrued interest, being at a net interest rate of 4.9091%.
Net
Account Managers Interest Rate*
First Chicago Capital Markets, Inc., Chicago . . . . . . . . . . . . . . . . . . . . . . . . 5.043000%
Griffin, Kubik, Stephens & Thompson, Inc., Chicago, and associates . . . . . . 4.909100%
Harris Trust and Savings Bank, Chicago, and associates . . . . . . . . . . . . . . . . . 4.961200%
Lehman Brothers, Chicago, and associates . . . . . . . . . . . . . . . . . . . . . . . . . 5.091300%
Dean Witter Reynolds Inc., Chicago, and associates . . . . . . . . . . . . . . . . . . . 4.929900%
Respectfully submitted,
Susan L. Carlson
Vice President
SLC/lmg
Enclosure
* Net interest rate based on pre-sale estimate of$6,480,000 issue size.
SUITE 3435.55 EAST MONROE STREET•CHICAGO,ILLINOIS 60603•(312)346-3700•FAX(312)346-8833
SPEER FINANCIAL, INC.
PUBLIC FINANCE CONSULTANTS SINCE 1954
SUITE 3435 • 55 EAST MONROE STREET•CHICAGO,ILLINOIS 60603 • (312)346-3700• FAX (312)346-8833
i
Investment Rating:
Moody's Investors Service ... Aa
$6,505,000
CITY OF ELGIN
Kane and Cook Counties, Illinois
General Obligation Bonds, Series 1993
Date of Sale: March 17, 1993
Average Life: 9.360
Bond Buyer Index: 5.58%
Bank Qualified
Bidders Price* Maturities Rates Interest*
Griffin, Kubik, Stephens & Thompson, Inc., Chicago 99.0000% 1995-1997 5.125% 4.9091%
Clayton Brown& Associates, Chicago, 1998 4.500% $2,977,526
Kemper Securities, Inc., Chicago, Joint Managers 1999 4.200%
2000 4.400%
2001 4.500%
2002 4.750%
2003 4.800%
2004-2008 5.000%
2009-2010 5.375%
First Chicago Capital Markets, Inc., Chicago 99.0226% 1995-1997 6.750% 5.0430%
1998-1999 4.250% $3,058,985
2000 4.400%
2001 4.600%
2002 4.750%
2003 4.875%
2004-2010 5.500%
Dean Witter Reynolds Inc., Chicago, 99.3641% 1995 3.400% 4.9299%
Prudential Securities, Chicago, 1996 3.600% $2,990,159
Smith Barney, Harris Upham & Co., Chicago, 1997 3.800%
Paine Webber Inc., Chicago, Joint Managers 1998 4.000%
1999 4.200%
2000 4.400%
2001 4.500%
2002 4.750%
2003 4.800%
2004 4.900%
2005 5.100%
2006 5.200%
2007 5.300%
2008-2010 5.600%
* Based on pre-sale estimate of$6,480,000 issue size.
(OVER)
Bidder Price* Maturities Rates Interest*
Harris Trust and Savings Bank & Associates, Chicago 99.0918% 1995-1997 4.000% 4.9612%
Kidder, Peabody & Co., Incorporated, Chicago, Jt. Mgrs. 1998 6.500% $3,009,139
Banc One Capital Corporation, 1999 4.875%
Boatmen's National Bank of St. Louis. 2000 4.300%
LaSalle National Bank, 2001 4.500%
Wachovia Bank of North Carolina, 2002 4.600%
American National Bank and Trust Co. of Chicago, 2003 4.800%
Bernardi Securities, Inc., 2004 4.900%
R. W. Corby & Co., Inc., 2005 5.000%
Crestar Bank, 2006 5.200%
Cronin& Co., Inc., 2007 5.300%
Douglas & Co. Municipals, Inc., 2008-2010 5.400%
Firstar Bank of Milwaukee,
First Tennessee Bank of Memphis,
Hamilton Investments, Inc.,
Howe Barnes Investments, Inc.,
Isaak Bond Investments, Inc.,
Mercantile Bank of St. Louis, N.A.,
Northern Trust Securities, Inc.,
Old Kent Bank,
Securities Corporation of Iowa,
R. Seelaus & Company, Inc.,
Shawmut Bank, N.A.
United Missouri Bank of Kansas City, N.A.
U. S. Securities, Hartford,
M. B. Vick & Company,
A. H. Williams & Company, Members
Lehman Brothers, Chicago, 99.0000% 1995-1998 6.500% 5.0913%
Hutchinson, Shockey, Erley & Co., Chicago, 1999 5.250% $3,088,086
Rodman & Renshaw, Inc., Chicago, Joint Managers 2000 4.350%
2001 4.600%
2002 4.750%
2003 4.950%
2004 5.000%
2005-2006 5.250%
2007-2010 5.375%
* Based on pre-sale estimate of$6,480,000 issue size.
OFFICIAL BID FORM
City of Elgin
1 March 17, 1993
City Hall
150 Dexter Court
Elgin, Illinois 60120
Council Members:
For your$6,480,000` City of Elgin, Illinois,General Obli t or enes 1993, described in the annexed Official Notice of
Sale, which is expressly made a part hereof, we will pay you $ (not less than $6,41.5,, plus accrued interest
from March 15, 1993,to the date of delivery.The discount is su ject to adjustment,allowing the same$ 6 profit per$1,000
bond as bid herein.The Bonds are to bear interest at the following respective rates (each a multiple of IA or 'ho of 1%) for Bonds of
each designated maturity.
MATURITIES—January 1`
Reoffering Reoffering Reoffering
Amount` Year Coupon Yields Amount' Year Coupon Yields Amount* Year Coupon Yields
$ 15,000..... 1995 $=lv c� $ 765,000..... 2001 ��% ' —% $ 170,000..... 2006" p% %
15,000..... 1996 % 1,510,000..... 2002 �t�% 1 o 180,000..... 2007"
25.000..... 1997 % 1,610,000..... 2003 190,000..... 2008" L!.—O%
225,000..... 1998 % ` % 155,000..... 2004" JLO% O—% 200,000..... 2009" "L o cat 6
475.000..... 1999 % % 165,000..... 2005" -ALL-0 o i iL% 210,000..... 2010" u& %
570,000..... 2000 % gzjL%
`Subject to change.See the Notice of Sale.
"The following consecutive maturities (limited to 2004 through 2010) are aggregated into one or two term bonds:
Maturities.•'10 Term Maturity: Maturities: Term Maturity:
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal
opinion of Chapman and Cutler,Attorneys,Chicago, Illinois.You are to pay for the legal opinion.Unless we notify you to the contrary
within 24 hours, CUSIP numbers are to be applied for and we agree to accept the Bonds at delivery with the CUSIP numbers as
printed.
As evidence of good faith,we enclose herewith a check or have otherwise provided for the Deposit in the amount of two percent of
par (not subject to change) in accordance with your Official Notice of Sale.A list of the members of our account on whose behalf this
bid is made is appended hereto.
Respectfully submitted, �
Check one: Certified/Cashier's Check O
Financial Surety Bond p", Name Griff Kubik Stephens &Thom son Inc.
Description of Deposit: Account Manager
By Z&w4t" C.
Amount: $129,600 Steven .C. Brown, Senior Vice President
Name of Bank/insurance Company Address
City State Zip
City State Direct Phone ( )
( )
Certified (Cashier's) Check No. Fax Number
Dated NOT A PART OF BID
Our calculation of net interest cost from above is:
(For Use By City Only) Total Interest. . . . . . . . . . . . . . . . $�
The above check was returned and received for y t ��v
p��
the above named Account Manager p'"^""�'lPlus Discount . . $ r
By Net Interest Cost . . . . . . . . . . . . $ / /
Net Interest Rate . . . . . . . . . . . . - , /v
The foregoing bid was accepted and Bonds sold by ordinance of the City Council of Elgin, Illinois,on March 17, 1993,and receipt
is hereby acknowledged of the good faith check or Deposit which is being held in accordance with the terms of the Official Notice of
Sale.
ATT CITY OF ELGIN, ILLINOIS
City Clerk / Mayor
TOTAL BOND YEARS: 60,652.997
AVERAGE LIFE: 9.360
OFFICIAL BID FORM
.�, March 17, 1993
City of Elgin � �• a
City Hall
150 Dexter Court
Elgin, Illinois 60120
Council Members:
For your$6,480,000* City of Elgin, Illinois, General Obligation Bonds, Series 993, described in the annexed Official Notice of
Sale, which is expressly made a part hereof, we will pay you $]: � "t l(- - 66 7--Z (not less than $6,415 2009 plus accrued interest
from March 15, 1993,to the date of delivery.The discount is subject to adjustment,allowing the same$ profit per$1,000
bond as bid herein. The Bonds are to bear interest at the following respective rates (each a multiple of or 'ho of 1%) for Bonds of
each designated maturity.
MATURITIES—January 1*
Reoffering Reoffering Reoffering
Amount* Year Coupon Yields Amount* Year Coupon Yields Amount* Year Coupon Yields
$ I5,000..... 1995 4 % % $ 765,000..... 2001 �/o _% $ 170,000..... 2006**
15,000..... 1996 4�� C�']� S% _% 1,510,000..... 2002 �o -% 180,000..... 2007** SSa%
25,000..... 1997 �27o _% 1,610,000..... 2003 C_AY_.g —% 190,000..... 2008** S5�6%
225,000..... 1998 0 —% 155,000..... 2004** �Sa% _% 200,000..... 2009** o _%
475,000..... 1999 0 % 165,000..... 2005** S So% _% 210,000..... 2010** o -%
570,000..... 2000 0 -%
*Subject to change.See the Notice of Sale.
**The following consecutive maturities (limited to 2004 through 2010) are aggregated into one or two term bonds:
,
Maturities:0 `10Term Maturity: 0?016 Maturities: Term Maturity: +
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal
opinion of Chapman and Cutler,Attorneys,Chicago, Illinois. You are to pay for the legal opinion. Unless we notify you to the contrary
within 24 hours, CUSIP numbers are to be applied for and we agree to accept the Bonds at delivery with the CUSIP numbers as
printed.
As evidence of good faith,we enclose herewith a check or have otherwise provided for the Deposit in the amount of two percent of
par(not subject to change) in accordance with your Official Notice of Sale.A list of the members of our account on whose behalf this
bid is made is appended hereto.
Respectfully submitted,
Check one: Certified/Cashier's Check U R Chicago Aapital Markets, Inc.
Financial Surety Bond ❑ Name
unt Mana er
Description of Deposit: ByT/\AT
.0.
Amount: $129,600 One First National Plaza
Address
Name of Bank/Insurance Company
City Chicago State IL Zi 60670-0463
The First National Bank of Chicago Y P
Cit Chicago State IL Direct Phone ( 312 ) 732-8330
Y
UK (Cashier's) Check No. B558327 Fax Number ( 312 ) 732-1033
Dated March 17, 1993 NOT A PART OF BID
Our calculation of net interest cost from above is:
(For Use By City Only) Total Interest. . . . . . . . . . . . . . . . $ �, S. 65d' 69
The above check was returned and received for
the above e Account Manager Less Premiu us D�iscounf�. $ � 33 a- �•S
By Net Interest Cost . . . . . . . . . . . . $3, a.SS 9$�- v
Net Interest Rate . . . . . . . . . . . . 0`1'r3 %
The foregoing bid was accepted and Bonds sold by ordinance of the City Council of Elgin, Illinois,on March 17, 1993,and receipt
is hereby acknowledged of the good faith check or Deposit which is being held in accordance with the terms of the Official Notice of
Sale.
ATTEST: CITY OF ELGIN, ILLINOIS
City Clerk Mayor
TOTAL BOND YEARS: 60,652.997
AVERAGE LIFE: 9.360
F
OFFICIAL NOTICE OF SALE
$6,480,000*
CITY OF ELGIN
Kane and Cook Counties, Illinois
General Obligation Bonds, Series 1993
The City of Elgin,Illinois,(the"City")will receive sealed bids for its$6,480,000*General Obligation Bonds,Series 1993 (the"Bonds"),on an all
or none basis,in Suite 3435,55 East Monroe Street,Chicago, Illinois,until 10:00 A.M.,C.S.T.,March 17, 1993,at which time bids will be publicly
opened and read. Award will be made or all bids rejected on that date.
The Bonds are payable as to both principal and interest from ad valorem taxes levied against all taxable property of the City,without limitation as to
rate or amount.The Bonds are being issued to fund various corporate purpose improvements and to advance refund certain maturities of outstanding
general obligation bonds as described in"PLAN OF FINANCING"within the Preliminary Official Statement.
The Bonds will be fully registered in the name of Kray&Co.,as nominee of Midwest Securities Trust Company ("MSTC"),Chicago,Illinois,to
which principal and interest payments on the Bonds will be paid. Individual purchases will be in book entry form only.Interest on each Bond shall be
paid by check or draft of American National Bank and Trust Company of Chicago,Chicago,Illinois,the City's Bond Registrar,to the person in whose
name such Bond is registered at the close of business on the 15th day of the month preceding the interest payment date.The principal of the Bonds shall
be payable at the principal corporate trust office of the Bond Registrar in Chicago, Illinois.The Bonds are dated March 15, 1993.The first interest
payment is due January 1, 1994.
MATURITIES—January P
$ 15,000..................... 1995 $ 765,000..................... 2001 $ 180,000..................... 2007**
15,000..................... 1996 1,510,000..................... 2002 190,000..................... 2008**
25,000..................... 1997 1,610,000..................... 2003 200,000..................... 2009**
225,000..................... 1998 155,000..................... 2004** 210,000..................... 2010**
475,000..................... 1999 165,000..................... 2005**
570,000..................... 2000 170,000..................... 2006**
* The City reserves the right to increase or decrease the amount of each maturity by$50,000,and consequently the aggregate principal amount of the
Bonds.
** The consecutive maturities limited to 2004 through 2010 may be aggregated into term bonds at the option of the bidder.
Bonds due January 1, 1995-2001, inclusive, are non-callable. Bonds due January 1, 2002-2010, inclusive, are callable on any date on or after
January 1,2001.If less than all of the Bonds are called,they shall be redeemed from such maturities as designated by the City,and within any maturity
by lot. Bonds shall be paid at par and accrued interest.
The City intends to designate the Bonds as"qualified tax-exempt"obligations.
The Bonds will be awarded to the single and best bidder whose bid will be determined upon the basis of the lowest cost at the rate or rates
designated in said bid from March 15, 1993,to the respective maturity dates and deducting any premium or adding the discount bid.All interest rates
must be in multiples of one-eighth or one-twentieth of one percent(1/s or'/m of 1%),and not more than one rate for a single maturity shall be specified.
All rates bid for maturities 2001 through 2010 shall be in non-descending order relative to the interest coupon bid on the 2000 maturity.The differential
between the highest rate bid and the lowest rate bid shall not exceed two and one half percent(2r/2%).All bids must be for all of the Bonds,must be for
not less than$6,415,200 plus accrued interest from March 15,1993,to the date of delivery,must be made upon the Official Bid Form and delivered in a
sealed envelope marked"Bid for Bonds"at the time set forth hereinabove.The discount,if any,is subject to adjustment if the maturity amounts of the
Bonds are changed,allowing the same dollar amount of profit per$1,000 bond as bid on the Official Bid Form; the dollar amount of profit must be
submitted on the sealed bid for any adjustment to be allowed,and is subject to verification.
Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust company or a Financial Surety Bond for TWO
PERCENT OF PAR (not subject to change) payable to the Treasurer of the City (the "Deposit"), as evidence of good faith of the bidder. If a
Financial Surety Bond is used,it must be from an insurance company licensed to issue such a bond in the State of Illinois and such bond must be
submitted to Speer Financial,Inc.,prior to the opening of the bids.The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by
such Financial Surety Bond.If the Bonds are awarded to a bidder using a Financial Surety Bond,then that purchaser is required to submit its Deposit to
the City in the form of a certified or cashier's check or wire transfer as instructed by Speer Financial,Inc.or the City,not later than 3:30 P.M.,C.S.T.,
on the next business day following the award.If such deposit is not received by that time,the Financial Surety Bond may be drawn by the City to satisfy
the Deposit requirement. No interest on the Deposit will accrue to the purchaser.The Deposit of the successful bidder will be retained by the City
pending delivery of the Bonds and all others will be promptly returned.Should the successful bidder fail to take up and pay for the Bonds when tendered
in accordance with this Notice of Sale and said bid,said Deposit shall be retained as full and liquidated damages to the City caused by failure of the
bidder to carry out the offer of purchase.Such Deposit will otherwise be applied on the purchase price upon delivery of the Bonds.
The City reserves the right to reject any or all bids,to determine the best bid in its sole discretion and to waive any informality in any bid.
The Preliminary Official Statement,when further supplemented by an addendum or addenda specifying the maturity dates,principal amounts and
interest rates of the Bonds,together with any other information required by law or deemed appropriate by the City,shall constitute a"Final Official
Statement"of the City with respect to the Bonds,as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission.By awarding the
Bonds to any underwriter or underwriting syndicate submitting an Official Bid Form therefor,the City agrees that,no more than seven(7)business days
after the date of such award,it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded up to 100
copies of the Official Statement and the described addendum or addenda to permit each"Participating Underwriter" (as that term is defined in Rule
15c2-12),to comply with the provisions of Rule 15c2-12. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds
agrees thereby that if its bid is accepted by the City it shall be considered to have entered into a contractual relationship with all Participating
Underwriters for the distribution of the Final Official Statement.
Bonds will be delivered to the successful bidder against full payment in immediately available funds as soon as they can be executed,,which is
expected to occur on or prior to March 31, 1993.Should delivery be delayed beyond sixty (60) days from the date of sale for any reason beyond the
control of the City except failure of performance by the purchaser,the City may award or the purchaser may withdraw the good faith check or Deposit
and thereafter such bidder's interest in and liability for the Bonds will cease. The City reserves the right to close with temporary Bonds.
The City will,at its expense,deliver the Bonds to the purchaser in Chicago,Illinois or New York,New York,and will pay for the bond attorney's
opinion.At the time of delivery,the City will also furnish to the purchaser the following documents,each dated as of the date of delivery of the Bonds:
(1) the unqualified opinion of Chapman and Cutler,Attorneys,Chicago,Illinois,that the Bonds are valid and binding obligations of the City and are
payable from ad valorem taxes levied against all taxable property of the City without limitation as to rate or amount; (2) the opinion of said attorneys
that the interest on the Bonds is exempt from Federal Income Taxes as and to the extent set forth in the Preliminary Official Statement for the Bonds;
and (3) a no-litigation certificate.The City will also provide to the purchaser a transcript of proceedings on which the legal opinion is based.
The City Council has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the City.Copies of
the Preliminary Official Statement or additional information may be obtained from Mr.Larry Rice,City Manager,City Hall, 150 Dexter Court,Elgin,
Illinois 60120,or from the Public Finance Consultants to the City,Speer Financial,Inc.,Suite 3435,55 East Monroe Street,Chicago,Illinois 60603.
Telephone:312-346-3700.
/S/ DOLONNA MECUM
City Clerk
City of Elgin, Illinois
SENT BY:DEAN WITTER REYNOLDS ; 3-16-93 ; 3: 16PM ; MUNI CHICAGO-► 1 312 346 88334 2
r
OFFICIAL BID FORM
March 17, 1993
City of Elgin
City Hall C`
150 Dexter Court
Elgin, Illinois 60120
Council Members:
For your$6.480,000* City of Elgin, Illinois, General Obligat'on Bonds, Series.1993, described in the,annexed Official Notice of
Sale, which is expressly made a part hereof, we will pay you S (not less than S6,415100) plus accrued interest
from March 15, 1993,to the date of delivery.The discount is subject to adjustment,allowing the some$ profit per$1,000
bond as bid herein. The Bonds are to bear interest at the following respective rates (each a multiple of'/e or 'l2e of 1%) for Bonds of
each designated maturity.
MATURITIES—January 1*
Rtetredng Reotrering Reoffering
Amount' Year Coupon Ylelde Amount* -Year Co u oa Yields Amount* Year Coupon Yields
$ 15,000...., 1995 ' 96 96 S 765,000,,.,, 2001 96 96 S 170,000..... 2006*• 96 5 96
15,000..... 1996 3 46 3 % 1,510,000...., 2002 % 180,000...., 2007•e f 3% -5�%
25,000...., 1997 tYe 96 I.610,000..... Z003 96 % 190,000..... 2008ie o
225,000..... 1998 96 % 155,000...,. 2004•* % `' 6% 200.000..... 2009•.• jrj( .6 �96
475,000.,.,. 1999 7.+,�% % 165,000..... 2005•• L% 11 i% 210,000.... . 2010** S 66% _96
570,000..,,. 2000 �96 96
'Subject to change,See the Notice of sale.
'The following consecutive maturities (limited to 2004 through 2010) are aggregated into one or two term bonds:
Maturities:4= Term Maturity:—2-0-1 b Maturities; Term Maturity:
� �
The Bonds are to be ezecut� aond'tdelisveredeesd to��us4inO accordance with the terms of this bid accompanied by the approving legal
opinion of Chapman and Cutler,Attorneys,Chicago, Illinois.You are to pay for the legal opinion, Unless we notify you to the contrary
within 24 hours, CUSIP numbers are to be applied for and we agree to accept the Bonds at delivery with the CUSIP numbers as
printed,
As evidence of good faith,we enclose herewith a check or have otherwise provided for the Deposit in the amount of two percent of
par(not subject to change) in accordance with your Official Notice of Sale.A list of the members of our account on whose behalf this
bid is made is appended hereto.
Respectfully submitted,
Check one: Certifled/Cashier's Check M Dean Witter Reynolds Inc.
Financial Surety Bond %% Name
Description of Deposit: By Ae ount Manager
Amount: $129,600 Addres Susan Sugrue, . Vi a President
Name of bank/Insurance Company
s
Capital Guaranty Insurance Co. City Chicasto State IL Zip60602
City State Direct Phone ( 312. 984.4676
Certified (Cashier's) Check No. Fax NumberL312 ) 984-1095
Dated NOT A PART OF BID
Our calculation of net interest cost from above is:
(For Use By City Only) Total Interest. . . . . . . . . . . .. . . . ��?i 97��-'��9
The above check was returned and received for
the above named Account Manager Less Premium Plus Discount S ��,a�
g Net Interest Cost . . . . . . . . . . . . $�, 994, /S� S19
Y
Net Interest Rate . . . . . . . . .. . .
The foregoing bid was accepted and Bonds sold by ordinance of the City Council of Elgin, Illinois,on March 17, 1993.and receipt
is hereby acknowledged of the good faith check or Deposit which is being held in accordance with the terms of the Official Notice of
Sal;,
ATTEST: CITY OF ELGIN, ILLINOIS
City Clerk Mayor
,.. TOTAL
.BOND YEARS: 00,652.997
AV
,�R�►GE LIFE•.9,36¢ �_.
OFFICIAL BID FORM
j City of Elgin March 17, 1993
t q9, s�l g
City Hall
150 Dexter Court
Elgin, Illinois 60120
Council Members:
For your$6,480,000* City of Elgin, Illinois, General Oblig tion Bonds Series 1993, described in the annexed Official Notice of
Sale, which is expressly made a part hereof, we will pay you $ (not less than $6,415,200) plus accrued interest
from March 15, 1993,to the date of delivery.The discount is subject to adjustment,allowing the same$ profit per$1,000
bond as bid herein.The Bonds are to bear interest at the following respective rates (each a multiple of or 'ho of 1%) for Bonds of
each designated maturity.
MATURITIES—January 1*
Reoffering Reoffering Reoffering
Amount* Year Coupon Yields Amount* Year Coupon Yields Amount* Year Coupon Yields
$ 15,000..... 1995 3� s% $ 765,000..... 2001 �% $ 170,000..... 2006** %
15,000..... 1996 IV'O% JAI % 1,510,000..... 2002440;0,% % 180,000..... 2007** S• 4% S_%
25,000..... 1997 V.0% **,a% 1,610,000..... 2003 /o 't/o 190,000..... 2008** fflt�_f% S_ie—%
225,000..... 1998 _-r% 3.1% 155,000..... 2004** 200,000..... 2009** s o 3_-A�r%Q
475,000..... 1999 E� ` % 165,000..... 2005** �% S o 210,000..... 2010**
570,000..... 2000 *-&—% "%
*Subject to change.See the Notice of Sale.
"The following consecutive maturities (limited to 2004 through 2010) are aggregated into one or two term bonds:
Maturities: Term Maturity: Maturities: Term Maturity:
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal
opinion of Chapman and Cutler,Attorneys,Chicago, Illinois. You are to pay for the legal opinion. Unless we notify you to the contrary
within 24 hours, CUSIP numbers are to be applied for and we agree to accept the Bonds at delivery with the CUSIP numbers as
printed.
As evidence of good faith,we enclose herewith a check or have otherwise provided for the Deposit in the amount of two percent of
par (not subject to change) in accordance with your Official Notice of Sale. A list of the members of our account on whose behalf this
bid is made is appended hereto.
Respectfully submitted,
Check one: Certified/Cashier's Check 1� Nam Harris T us a kvings Bank & Associates
Financial Surety Bond ❑
Description of Deposit: Account Manager
By
Amount: $129,600 David K. Harmon, Vice President
Name of Bank/Insurance Company Address 111 West Monroe Street
Harris Trust and Savings Bank
City Chicago State IL Zip 60603
City Chicago State IL
Direct Phone ( 312 ) 461-2861
)
Certified (Cashier's) Check No. Fax Number ( 312 461-3600
Dated March 12, 1993 NOT A PART OF BID
Our calculation of net interest cost from above is:
(For Use By City Only) Total Interest. . . . . . . . . . . . . . . . $ 87,q'S o"
The above check was returned and received for
the above named Account Manager Less Premium/Plus DiscounC . . $ �i �S3' �/D
By Net Interest Cost . . . . . . . . . . . . $/31 OD�• /3.
Net Interest Rate . . . . . . . . . . . .
The foregoing bid was accepted and Bonds sold by ordinance of the City Council of Elgin, Illinois,on March 17, 1993,and receipt
is hereby acknowledged of the good faith check or Deposit which is being held in accordance with the terms of the Official Notice of
Sale.
ATTEST: CITY OF ELGIN, ILLINOIS
City Clerk Mayor
TOTAL BOND YEARS: 60,652.997
AVERAGE LIFE: 9.360
I •`
OFFICIAL NOTICE OF SALE t
$6,480,000*
CITY OF ELGIN '
Kane and Cook Counties, Illinois
General Obligation Bonds, Series 1993
The City of Elgin,Illinois,(the"City")will receive sealed bids for its$6,480,000*General Obligation Bonds,Series 1993 (the"Bonds"),on an all
or none basis,in Suite 3435,55 East Monroe Street,Chicago,Illinois,until 10:00 A.M.,C.S.T.,March 17, 1993,at which time bids will be publicly
opened and read. Award will be made or all bids rejected on that date.
The Bonds are payable as to both principal and interest from ad valorem taxes levied against all taxable property of the City,without limitation as to
rate or amount.The Bonds are being issued to fund various corporate purpose improvements and to advance refund certain maturities of outstanding
general obligation bonds as described in"PLAN OF FINANCING"within the Preliminary Official Statement.
The Bonds will be fully registered in the name of Kray&Co.,as nominee of Midwest Securities Trust Company("MSTC"),Chicago,Illinois,to
which principal and interest payments on the Bonds will be paid. Individual purchases will be in book entry form only. Interest on each Bond shall be
paid by check or draft of American National Bank and Trust Company of Chicago,Chicago,Illinois,the City's Bond Registrar,to the person in whose
name such Bond is registered at the close of business on the 15th day of the month preceding the interest payment date.The principal of the Bonds shall
be payable at the principal corporate trust office of the Bond Registrar in Chicago, Illinois.The Bonds are dated March 15, 1993.The first interest
payment is due January 1, 1994.
MATURITIES—January 1*
$ 15,0Q0..................... 1995 $ .765,000..................... 2001 $. 180,000..................... 2007**
15,000...................... 1996 1,510,000....................... 2002 190,000..................... 2008**
25-;WO...................... 1997 1,610,000...................... 2003 200,000,—.................. 2009**
225,000..................... 1998 155,000..................... 2004** 210,000. ................... 2010**
475,000..................... 1999 165,000..................... 2005**
570,000..................... 2000 170,000..................... 2006**
* The City reserves the right to increase or decrease the amount of each maturity by$50,000,and consequently the aggregate principal amount of the
Bonds.
** The consecutive maturities limited to 2004 through 2010 may be aggregated into term bonds at the option of the bidder.
Bonds due January 1, 1995-2001, inclusive, are non-callable. Bonds due January 1, 2002-2010, inclusive, are callable on any date on or after
January 1,2001.If less than all of the Bonds are called,they shall be redeemed from such maturities as designated by the City,and within any maturity
by lot. Bonds shall be paid at par and accrued interest.
The City intends to designate the Bonds as"qualified tax-exempt"obligations.
The Bonds will be awarded to the single and best bidder whose bid will be determined upon the basis of the lowest cost at the rate or rates
designated in said bid from March 15, 1993,to the respective maturity dates and deducting any premium or adding the discount bid.All interest rates
must be in multiples of one-eighth or one-twentieth of one percent(r/s or'ho of 1%),and not more than one rate for a single maturity shall be specified.
All rates bid for maturities 2001 through 2010 shall be in non-descending order relative to the interest coupon bid on the 2000 maturity.The differential
between the highest rate bid and the lowest rate bid shall not exceed two and one half percent(21/2%).All bids must be for all of the Bonds,must be for
not less than$6,415,200 plus accrued interest from March 15, 1993,to the date of delivery,must be made upon the Official Bid Form and delivered in a
sealed envelope marked"Bid for Bonds"at the time set forth hereinabove.The discount,if any,is subject to adjustment if the maturity amounts of the
Bonds are changed, allowing the same dollar amount of profit per$1,000 bond as bid on the Official Bid Form;the dollar amount of profit must be
submitted on the sealed bid for any adjustment to be allowed,and is subject to verification.
Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust company or a Financial Surety Bond for TWO
PERCENT OF PAR (not subject to change) payable to the Treasurer of the City (the "Deposit"), as evidence of good faith of the bidder. If a
Financial Surety Bond is used,it must be from an insurance company licensed to issue such a bond in the State of Illinois and such bond must be
submitted to Speer Financial,Inc.,prior to the opening of the bids.The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by
such Financial Surety Bond.If the Bonds are awarded to a bidder using a Financial Surety Bond,then that purchaser is required to submit its Deposit to
the City in the form of a certified or cashier's check or wire transfer as instructed by Speer Financial,Inc.or the City,not later than 3:30 P.M.,C.S.T.,
on the next business day following the award.If such deposit is not received by that time,the Financial Surety Bond may be drawn by the City to satisfy
the Deposit requirement. No interest on the Deposit will accrue to the purchaser.The Deposit of the successful bidder will be retained by the City
pending delivery of the Bonds and all others will be promptly returned.Should the successful bidder fail to take up and pay for the Bonds when tendered
in accordance with this Notice of Sale and said bid,said Deposit shall be retained as full and liquidated damages to the City caused by failure of the
bidder to carry out the offer of purchase.Such Deposit will otherwise be applied on the purchase price upon delivery of the Bonds.
The City reserves the right to reject any or all bids,to determine the best bid in its sole discretion and to waive any informality in any bid.
The Preliminary Official Statement,when further supplemented by an addendum or addenda specifying the maturity dates,principal amounts and
interest rates of the Bonds,together with any other information required by law or deemed appropriate by the City,shall constitute a"Final Official
Statement"of the City with respect to the Bonds,as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission.By awarding the
Bonds to any underwriter or underwriting syndicate submitting an Official Bid Form therefor,the City agrees that,no more than seven(7)business days
after the date of such-award,it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded up to 100
copies of the Official,Statement and the described addendum or addenda to permit each"Participating Underwriter" (as that term is defined in Rule
15c2-12),to comply with the provisions of Rule 15c2-12. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds
agrees thereby that if its bid is accepted by the City it shall be considered to have entered into a contractual relationship with all Participating
Upderwriters for the distribution of the Final Official Statement.
Bonds will be delivered to the successful bidder against full payment in immediately available funds as soon as they can be executed, which is
expected to occur on or prior to March 31, 1993.Should delivery be delayed beyond sixty (60) days from the date of sale for any reason beyond the
control of the City except failure of performance by the purchaser,the City may award or the purchaser may withdraw the good faith check or Deposit
and thereafter such bidder's interest in and liability for the Bonds will cease. The City reserves the right to close with temporary Bonds.
The City will,at its expense,deliver the Bonds to the purchaser in Chicago,Illinois or New York,New York,and will pay for the bond attorney's
opinion.At the time of delivery,the City will also furnish to the purchaser the following documents,each dated as of the date of delivery of the Bonds:
(1) the unqualified opinion of Chapman and Cutler,Attorneys,Chicago,Illinois,that the Bonds are valid and binding obligations of the City and are
payable from ad valorem taxes levied against all taxable property of the City without limitation as to rate or amount; (2) the opinion of said attorneys
that the interest on the Bonds is exempt from Federal Income Taxes as and to the extent set forth in the Preliminary Official Statement for the Bonds;
and (3) a no-litigation certificate.The City will also provide to the purchaser a transcript of proceedings on which the legal opinion is based.
The City Council has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the City.Copies of
the Preliminary Official Statement or additional information may be obtained from Mr.Larry Rice,City Manager,City Hall, 150 Dexter Court,Elgin,
Illinois 60120,or from the Public Finance Consultants to the City,Speer Financial,Inc.,Suite 3435,55 East Monroe Street,Chicago,Illinois 60603.
Telephone:312-346-3700.
/s/ DOLONNA MECUM
City Clerk
City of Elgin, Illinois
CITY OF ELGI:N, IL.L.INOIS
Membership
Harris Trust and Savings Bank ) :Joint
Kidder, Peabody & Co. , Incorporated) Managers
Banc One Capital Corporation
Boatmen' s National. Bank of St, Louis
LaSalle National Bank
Wachov:i.a Bank of North Carolina
American National Bank and Trust Co. of Chicago
Bernardi Securities, Inc .
R.W. Corby & Co. , Inc.
Crestar Bank
Cronin & Co. , Inc.
Douglas & Co. Municipals, Inc.
F:irstar Bank of Milwaukee
First Tennessee Bank Memphis
Hamilton Investments, Inc.
Howe Barnes Investments, Inc.
Isaak Bond Investments, Inc.
Mercantile Bank of St. Louis, N.A.
Northern Trust Securities, Inc .
Old Kent Bank -- Chicago
Securities Corporation of Iowa
R. Seel.aus & Company, Inc.
Shawmut Bank, N, A.
United Mi.ssour:i. Bank of Kansas City, N.A.
U.S. Securities, Hartford
M.B. Vick & Company
A.H. Williams & Company
03/17/93 09: 17 LEHMAN TRD/SYND 4 93469633 N0.394 P001
OFFICIAL BID FORM
March 17, 1993
City of Elgin
City Hall
150 Dexter Court
Elgin. Illinois 60120
Council Members:
For your$6,480.000" City of Elgin, Illinois,General Oblipdon Bonds,Series 1993,described in the aniioxed Official Notice of
Sale, which is expressly made a part hereof, we will pay you S1� y/s• 2 0 a • OV (not less than S6,415,200Yplus accrued interest
from March 15, 1993,to the date of delivery.The discount is subject to adjustment,allowing the same S` profit per$1,000
band as bid herein. The Bonds are to bear interest at the following respective rates (each a multiple of t/s or 'ho of 1%) for Bonds of
each designated maturity.
MATURITIES--January I'
RooQel4ng Roelreriag Reoffering
Amours' Year Coupon Yiards Aawutds Year Coupon Yields Amount' Year coupon Yields
S 15,000..... 1995 % —% $ 765.000..._. 2001 % —� S 170.000,..... 2006" S=Tl �%
15,000..... 1996 s0 °o _°l0 1,510,000..... 2002 11 : % _`h, 190,000..... 2067�` S_-W% _ek
25,000..... 1997 6,s,% r% 1.6)0,000..... 2003 t�% _% 190,000... _ 2"** Ste%
225.000..... 1998 677. % _90 155.000..... 2004" -S oa% _9a 200,000....1,.-2009'a'
475.000.._.. 1999 3=—% __"0 165.000..... 2005" �_�% .__% 210,000...`,. 2010"
570,000..... 2000 Y,L%
'Subject to change.See the Notice ojSale.
"The following consecutive maturities (limited to 2004 through 20101 are aggregated into one or two term bonds.-
Maturities: L t--.-'Term Matttrity;Z`�� Maturitlec Term Matu�ry_ U�d
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal
opinion of Chapman and Cutler, Attorneys,Chicago, Illinois.You arc to pay for the legal opinion Unless'we�notify you to the contrary
within 24 hours, Ct1SlP numbcrc are to be applied for and we agree to accept the Bonds at delivery with-the CUSIP numbers as
printed_
As evidence of good faith.we enclose herewith a check or have otherwise providod for the Deposit i ili Amount of two percent of
par (not subject to change) in accordance with your Official Notice of Sale.A list of the members of our account on whose behalf this
bid is made is appended hereto,
Respectfully submitted,
Check one: Certified/Cashier's Check C7
Financial Surety Bond Name P /yJl H Yp �PY
Description of Deposit: Account Manager
By
Amount: $129,600 ,
-�
Name of Bank/Insurance Company Address ��
City CAI State' •� Zip
a,
Direct Phone
City State (
Fax Number ( )
Certified (Cashier's) Check No.
Dated NOT A PART'.OF BID
Our calculation of net interest cosi.ftom above is:
(For Use By City Only/ Total Interest. . . . . .... . ...•..
The above check was returned and received for G VOU O O
the above named Account Manager Less Premium/ s Discou . .
By Net Interest Cost . . . , . . . ... • So �� U��•��
Net Interest Rate . . . . . . .
The foregoing bid was accepted and Bonds sold by ordinance of the City Council of Elgin,Illinois,on;k-jrch'17, 1993,and receipt
is hereby acknowledged of the good faith check or Deposit which is being held in accordance with th'e>?erms of the Official Notice of
Sale.
ATTEST: CITY OF ELGIN, ILLINOI ::-.Y � s's
City Clerk Mayor
TOTAL BOND YEARS: K652.997
AVERAGE LIFE. 9.360