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Home My WebLink AboutS2-20 ORDINANCE NUMBER 52-20 AN ORDINANCE providing for the issuance of$2,905,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois, for the purpose of financing certain capital improvements within said City and paying the expenses incident thereto, providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof. Adopted by the City Council on the 22nd day of April, 2020. TABLE OF CONTENTS SECTION HEADING PAGE SECTION 1. INCORPORATION OF PREAMBLES.........................................................................2 SECTION 2. DETERMINATION TO ISSUE BONDS......................................................................2 SECTION3. AUTHORIZATION.................................................................................................3 SECTION 4. BOND DETAILS ...................................................................................................3 SECTION 5. EXECUTION;AUTHENTICATION ..........................................................................4 SECTION 6. REGISTRATION AND EXCHANGE OR TRANSFER OF BONDS; PERSONS TREATED AS OWNERS....................................................................5 SECTION 7. FORM OF BOND...................................................................................................9 SECTION 8. SALE OF BONDS................................................................................................1 S SECTION 9. TAX LEVY;ABATEMENT...................................................................................1 S SECTION 10. FILING WITH COUNTY CLERKS..........................................................................17 SECTION 11. CREATION OF FUNDS AND APPROPRIATIONS.....................................................17 SECTION 12. NON-ARBITRAGE AND TAX-EXEMPTION ..........................................................18 SECTION 13. REIMBURSEMENT..............................................................................................20 SECTION 14. DUTIES OF BOND REGISTRAR............................................................................20 SECTION 15. DEFEASANCE ....................................................................................................20 SECTION 16. CONTINUING DISCLOSURE UNDERTAKING........................................................21 SECTION 17. RECORD-KEEPING POLICY AND POST-ISSUANCE COMPLIANCE MATTERS....................................................................................................21 -1- SECTION 18. PUBLICATION OF ORDINANCE...........................................................................22 SECTION 19. SEVERABILITY ..................................................................................................22 SECTION 20. SUPERSEDER AND EFFECTIVE DATE..................................................................23 This Table of Contents is for convenience only and is not a part of the Ordinance. -ii- ORDINANCE NUMBER S2-20 AN ORDINANCE providing for the issuance of $2,905,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois, for the purpose of financing certain capital improvements within said City and paying the expenses incident thereto, providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof. WHEREAS by virtue of its population, the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois (the "Constitution"), 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 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 (the "Council") 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. 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 Council has considered the needs of the City and has heretofore determined and does hereby determine that it is advisable, necessary and in the best interests of the City to finance certain capital improvements within the City, namely, water and sewer utility projects (the "Project"), all as shown in the plans and cost estimates as prepared by the City; and WHEREAS the estimated cost to the City of the Project is at least the sum of$2,905,000 plus any estimated available amount of interest earnings on said sum prior to its expenditure; and WHEREAS there are insufficient funds on hand and available to pay the costs of the Project, and it is necessary for that purpose that a sum to pay such costs be borrowed at this time, and in evidence of such indebtedness, general obligation bonds of the City be issued in the principal amount of$2,905,000, and that such indebtedness be incurred in accordance with the hereinafter defined Act: 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. Incorporation of Preambles. The Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 2. Determination to Issue Bonds. It is necessary and in the best interests of the City to construct and equip the Project, to pay all related costs and expenses incidental thereto, and to borrow money and issue 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 is authorized pursuant to the applicable provisions of the Illinois Municipal Code, as amended, as further supplemented and, where necessary, superseded, by the powers of the City as a home rule unit under the -2- provisions of Section 6 of Article VII of the Constitution and the Enabling Ordinance adopted pursuant to such home rule powers, and as further supplemented by the Local Government Debt Reform Act, as amended (collectively, such Illinois Municipal Code, constitutional home rule powers, Enabling Ordinance and Reform Act being the "Act"); and these findings and determinations, together with those set forth in the preambles to this Ordinance, shall be deemed conclusive. Section 3. Authorization. It is hereby found and determined that the Council has been authorized by law to borrow the sum of$2,905,000 upon the credit of the City and as evidence of such indebtedness to issue bonds of the City in said amount, the proceeds of said bonds to be used to finance the Project, and that it is necessary and for the best interests of the City that there be issued at this time $2,905,000 of the bonds so authorized. Section 4. Bond Details. There be borrowed by, for and on behalf of the City the sum of $2,905,000 for the purposes aforesaid, and that bonds of the City shall be issued in said amount and shall be designated "General Obligation Corporate Purpose Bonds, Series 2020B" (the "Bonds"). The Bonds shall be dated May 6, 2020; and shall also bear the date of authentication, shall be in fully registered form, shall be in denominations of $5,000 each or authorized integral multiples thereof(but no single Bond shall represent installments of principal maturing on more than one date), and shall be numbered 1 and upward. The Bonds shall become due and payable serially (without option of prior redemption) on December 15 of each of the years, in the amounts and bearing interest at the rate percent per annum as follows: -3- YEAR PRINCIPAL RATE OF OF MATURITY AMOUNT($) INTEREST(%) 2021 410,000 4.00 2022 415,000 4.00 2023 430,000 4.00 2024 445,000 4.00 2025 460,000 4.00 2026 370,000 4.00 2027 375,000 4.00 The Bonds shall bear interest from their dated date or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of the Bonds is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on June 15 and December 15 of each year, commencing on December 15, 2020. Interest on each Bond shall be paid by check or draft of U.S. Bank National Association, Chicago, Illinois, as bond registrar and paying agent (the "Bond Registrar"), payable upon presentation thereof in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the 1 st day of the month of the interest payment date. The principal of the Bonds shall be payable in lawful money of the United States of America upon presentation thereof at the principal corporate trust office of the Bond Registrar. Section 5. Execution; Authentication. The Bonds shall be executed on behalf of the City by the manual or facsimile signature of its Mayor(the "Mayor") and attested by the manual or facsimile signature of its City Clerk (the "City Clerk"), as they shall 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 -4- 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 and Exchange or Transfer of Bonds; Persons Treated as Owners. (a) General. The City shall cause books (the "Bond Register") for the registration and for the transfer of the Bonds as provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar, which is hereby constituted and appointed the registrar of the City for the Bonds. The City is authorized to prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and exchange of Bonds. Upon surrender for transfer of any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or his or her attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other authorized denominations. The execution by the City of any fully registered Bond shall -5- constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond;provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements. The Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning at the close of business on the 1 st day of the month of any interest payment date on such Bond and ending at the opening of business on such interest payment date. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bond shall be made only to or upon the order of the registered owner thereof or his or her legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds. (b) Global Book-Entry System. The Bonds shall be initially issued in the form of a separate single fully registered Bond for each of the maturities of the Bonds determined as described in Section 4 hereof. Upon initial issuance, the ownership of each such Bond shall be registered in the Bond Register in the name of Cede& Co., or any successor thereto ("Cede"), as nominee of The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). All of the outstanding Bonds shall be registered in the Bond Register in the name of Cede, as nominee of DTC, except as hereinafter provided. Any officer of the City who is a signatory on the Bonds, along with the Director of Finance of the City, is authorized to execute and deliver, on behalf of the City, such letters to or agreements with DTC as shall be -6- necessary to effectuate such book-entry system (any such letter or agreement being referred to herein 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 Cede, as nominee of DTC, the City and the Bond Registrar shall have no responsibility or obligation to any broker-dealer, bank or other financial institution for which DTC holds Bonds from time to time as securities depository (each such broker-dealer, bank or other financial institution being referred to herein as a "DTC Participant") or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Bond Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii)the payment to any DTC Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to the principal of or interest on the Bonds. The City and the Bond Registrar may treat and consider the person in whose name each Bond is registered in the Bond Register as the holder and absolute owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of and interest on the Bonds only to or upon the order of the respective registered owners of the Bonds, as shown in the Bond Register, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations -7- 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 evidencing the obligation of the City to make payments of principal and interest with respect to any Bond. Upon delivery by DTC to the Bond Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede, and subject to the provisions in Section 4 hereof with respect to the payment of interest to the registered owners of Bonds at the close of business on the 1 st day of the month of the applicable interest payment date, the name "Cede" in this Ordinance shall refer to such new nominee of DTC. In the event that (i) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (ii) the agreement among the City, the Bond Registrar and DTC evidenced by the Representation Letter shall be 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 DTC and DTC Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC. At that time, the City may determine that the Bonds shall be registered in the name of and deposited with such other depository operating a universal book-entry system, as may be acceptable to the City, or such depository's agent or designee, and if the City does not select such alternate universal book-entry system, then the Bonds may be registered in whatever name or names registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with the provisions of Section 6(a) hereof. Notwithstanding any other provisions of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to -8- i principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the name provided in the Representation Letter. Section 7. Form of Bond. The Bonds shall be in substantially the following form; 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 [9] shall be inserted immediately after paragraph [I]: -9- [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 CORPORATE PURPOSE BOND,SERIES 2020B See Reverse Side for Additional Provisions. Interest Maturity Dated Rate: % Date: December 15, Date: May 6, 2020 CUSIP: 286299 Registered Owner: CEDE&CO. Principal Amount: [1] KNOW ALL PERSONS BY THESE PRESENTS that the City of Elgin, Kane and Cook Counties, Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the later of the Dated Date of this Bond identified above or from the most recent interest payment date to which interest has been paid or duly provided for, at the Interest Rate per annum identified above, such interest to be payable on June 15 and December 15 of each year, commencing December 15, 2020, until said Principal Amount is paid or duly provided for. 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 U.S. Bank National Association, Chicago, Illinois, as bond registrar and paying agent (the "Bond Registrar"). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the -10- Bond Registrar, at the close of business on the 1 st day of the month of the interest payment date. Interest shall be paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on such registration books or at such other address furnished in writing by such Registered Owner to the Bond Registrar. For the prompt payment of this Bond both principal and interest at maturity, the full faith, credit and resources of the City are hereby irrevocably pledged. [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, including the hereinafter defined Act, 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. -11- [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. SPECIMEN Mayor, City of Elgin Kane and Cook Counties, Illinois ATTEST: SP1�C'1�11:ti City Clerk, City of Elgin Kane and Cook Counties, Illinois [SEAL] Date of Authentication: , 20_ CERTIFICATE Bond Registrar and Paying Agent: OF U.S. Bank National Association AUTHENTICATION Chicago, Illinois This Bond is one of the Bonds described in the within-mentioned Ordinance and is one of the General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois. U.S.BANK NATIONAL ASSOCIATION, as Bond Registrar By Sf'f'C1\11=N Authorized Officer -12- [FORM OF BOND-REVERSE SIDE] CITY OF ELGIN KANE AND COOK COUNTIES,ILLINOIS GENERAL OBLIGATION CORPORATE PURPOSE BOND,SERIES 2020B [6] This Bond is one of a series of bonds (the "Bonds") issued by the City for the purpose of paying the costs of the Project and expenses incidental thereto, all as described and defined in the ordinance of the City, passed by the City Council of the City on the 22nd day of April, 2020, authorizing the Bonds (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of the Illinois Municipal Code, as amended, as further supplemented and, where necessary, superseded, by the powers of the City as a home rule unit under the provisions of Section 6 of Article VII of the Illinois Constitution of 1970 and the Enabling Ordinance adopted pursuant to such home rule powers (as defined in the Ordinance), and as further supplemented by the Local Government Debt Reform Act, as amended (collectively, such Illinois Municipal Code, constitutional home rule powers, Enabling Ordinance and such Reform Act being the "Act"). [7] This Bond is transferable by the Registered Owner hereof in person or by his or her attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of authorized denominations of the same maturity and for the same aggregate principal amount will be issued to the transferee in exchange therefor. [8] The Bonds are issued in fully registered form in the denomination of$5,000 each or authorized integral multiples thereof. This Bond may be exchanged at the principal corporate -13- trust office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations, upon the terms set forth in the Ordinance. The Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning at the close of business on the 1 st day of the month of any interest payment date on such Bond and ending at the opening of business on such interest payment date. [9] The City and the Bond Registrar may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto Here insert Social Security Number, Employer Identification Number or other Identifying Number (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. -14- Section 8. Sale of Bonds. The Bonds hereby authorized shall be executed as in this Ordinance provided as soon after the passage hereof as may be, and thereupon be deposited with the Treasurer of the City (the "Treasurer"), and be by the Treasurer delivered to Northland Securities, Inc., Milwaukee, Wisconsin, the purchaser thereof(the "Purchaser"), upon receipt of the purchase price therefor, the same being $3,218,203.40, plus accrued interest, if any, to date of delivery; the contract for the sale of the Bonds (as evidenced by an executed bid form, the "Purchase Contract") heretofore entered into is in all respects ratified, approved and confirmed and the officers of the City designated in the Purchase Contract are authorized and directed to execute the Purchase Contract on behalf of the City, it being hereby found and determined that the Bonds have been sold at such price and bear interest at such rates that neither the true interest cost (yield) nor the net interest rate received upon such sale exceed the maximum rate otherwise authorized by Illinois law and that the Purchase Contract is in the best interests of the City and that no person holding any office of the City, either by election or appointment, is in any manner financially interested either directly in his or her own name or indirectly in the name of any other person, association, trust or corporation, in the Purchase Contract. The use by the Purchaser of any Preliminary Official Statement and any final Official Statement relating to the Bonds is hereby ratified, approved and authorized; the execution and delivery of said final Official Statement is hereby authorized; and the officers of the City are hereby authorized to take any action as may be required on the part of the City to consummate the transactions contemplated by the Purchase Contract, this Ordinance, said Preliminary Official Statement, said final Official Statement and the Bonds. Section 9. Tax Levy; Abatement. For the purpose of providing funds required to pay the interest on the Bonds promptly when and as the same falls due, and to pay and discharge the principal thereof at maturity, there is hereby levied upon all of the taxable property within the -15- 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 taxes (the "Pledged Taxes"): FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF: 2020 $526,200.00 for interest and principal up to and including December 15, 2021 2021 $514,800.00 for interest and principal 2022 $513,200.00 for interest and principal 2023 $511,000.00 for interest and principal 2024 $508,200.00 for interest and principal 2025 $399,800.00 for interest and principal 2026 $390,000.00 for interest and principal The Pledged Taxes and other moneys (excepting proceeds of the Bonds) on deposit (collectively, the "Bond Moneys") in the Bond Fund (as hereinafter defined) shall be applied to pay interest when due and principal when due at maturity. Interest or principal coming due at any time when there are insufficient funds on hand from the Pledged Taxes to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the Pledged Taxes; and when the Pledged 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 Pledged Taxes may be levied, extended and collected as provided herein and deposited into the Bond Fund. Interest on the Bonds up to December 15, 2020, is expected to be paid from funds on hand and lawfully available for such purpose. Whenever other funds from any lawful source are made available for the purpose of paying any principal of or interest on the Bonds so as to enable the abatement of the Pledged -16- Taxes, the Council shall, by proper proceedings, direct the deposit of such funds into the Bond Fund and further shall direct the abatement of the taxes by the amount so deposited. A certified copy or other notification of any such proceedings abating taxes may then be filed with the County Clerks of the Counties of Kane and Cook, Illinois (the "County Clerks"), in a timely manner to effect such abatement. Section 10. Filing with County Clerks. Forthwith upon the passage of this Ordinance, the City Clerk is hereby directed to file a certified copy of this Ordinance with the County Clerks; and the County Clerks shall in and for each of the years 2020 to 2026, inclusive, ascertain the rate necessary to produce the tax herein levied; and the 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, subject to abatement as stated hereinabove, 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 H. Creation of Funds and Appropriations. A. There is hereby created the "General Obligation Corporate Purpose Bonds, Series 2020B, Bond Fund" (the "Bond Fund"), which shall be the fund for the payment of principal of and interest on the Bonds. Accrued interest and premium, if any, received upon delivery of the Bonds shall be deposited into the Bond Fund and be applied to pay first interest coming due on the Bonds. B. The Pledged Taxes shall either be deposited into the Bond Fund and used solely and only for paying the principal of and interest on the Bonds or be used to reimburse a fund or account from which advances to the Bond Fund may have been made to pay principal of or interest on the Bonds prior to receipt of Pledged Taxes. Interest income or investment profit -17- earned in the Bond Fund shall be retained in the Bond Fund for payment of the principal of or interest on the Bonds on the interest payment date next after such interest or profit is received or, to the extent lawful and as determined by the Council, transferred to such other fund as may be determined. The City hereby pledges, as equal and ratable security for the Bonds, all present and future proceeds of the Pledged Taxes for the sole benefit of the registered owners of the Bonds, subject to the reserved right of the Council to transfer certain interest income or investment profit earned in the Bond Fund to other funds of the City, as described in the preceding sentence. C. The remaining principal proceeds of the Bonds shall be set aside in a separate fund, hereby created, and designated as the "Project Fund" (the "Project Fund"), hereby created as the fund to provide for the receipt and disbursement of proceeds of the Bonds for the Project. Alternatively, the Treasurer may allocate such remaining proceeds to one or more related project funds of the City already in existence;provided, however, that this shall not relieve the Treasurer of the duty to account for the proceeds as herein provided. Any such one or more funds shall also be referred to hereinafter, collectively, as the "Project Fund". The Council reserves the right, as it becomes necessary from time to time, to revise the list of expenditures hereinabove set forth, to change priorities, to revise cost allocations between expenditures and to substitute projects, in order to meet current needs of the City; subject, however, to the tax covenants set forth herein. At the time of the issuance of the Bonds, the costs of issuance of the Bonds may be paid by the Purchaser or the Bond Registrar on behalf of the City from the proceeds of the Bonds. Section 12. Non-Arbitrage and Tax-Exemption. The City hereby covenants that it will not take any action, omit to take any action or permit the taking or omission of any action within its control (including, without limitation, making or permitting any use of the proceeds of the Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be -18- an arbitrage bond or a private activity bond within the meaning of the Internal Revenue Code of 1986, as amended, or would otherwise cause the interest on the Bonds to be included in the gross income of the recipients thereof for federal income tax purposes. The City acknowledges that, in the event of an examination by the Internal Revenue Service (the "IRS") of the exemption from Federal income taxation for interest paid on the Bonds, under present rules, the City may be treated as a "taxpayer" in such examination and agrees that it will respond in a commercially reasonable manner to any inquiries from the IRS in connection with such an examination. The City also agrees and covenants with the purchasers and holders of the Bonds from time to time outstanding that, to the extent possible under Illinois law, it will comply with whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax- exempt status of the Bonds. The Council hereby authorizes the officials of the City responsible for issuing the Bonds, the same being the Mayor, City Clerk and Treasurer, to make such further covenants and certifications regarding the specific use of the proceeds of the Bonds as approved by the Council and as may be necessary to assure that the use thereof will not cause the Bonds to be arbitrage bonds and to assure that the interest on the Bonds will be exempt from federal income taxation. In connection therewith, the City and the Council further agree: (a) through their officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (b)to consult with counsel approving the Bonds and to comply with such advice as may be given; (c)to pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Bonds; (d)to file such forms, statements, and supporting documents as may be required and in a timely manner; and (e) if deemed necessary or advisable by their officers, to employ and pay fiscal agents, financial advisors, attorneys, and other persons to assist the City in such compliance. -19- Section 13. Reimbursement. With respect to expenditures for the Project paid within the 60-day period ending on this date and with respect to which no declaration of intent was previously made, the City hereby declares its intent to reimburse such expenditures and hereby allocates proceeds of the Bonds in the amount indicated in the Tax Exemption Certificate and Agreement to be delivered in connection with the issuance of the Bonds to reimburse said expenditures. Section 14. Duties of Bond Registrar. If requested by the Bond Registrar, the Mayor and City Clerk are authorized to execute the Bond Registrar's standard form of agreement between the City and the Bond Registrar with respect to the obligations and duties of the Bond Registrar hereunder which may include the following: (a) to act as bond registrar, authenticating agent, paying agent and transfer agent as provided herein; (b) to maintain a list of Bondholders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential; (c) to give notice of redemption of the Bonds as provided herein; (d) to cancel and/or destroy Bonds which have been paid at maturity or 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. Section 15. Defeasance. Any Bond or Bonds which (a) are paid and cancelled, (b)which have matured and for which sufficient sums have been deposited with the Bond Registrar to pay all principal and interest due thereon, or (c) for which sufficient U.S. funds and direct U.S. Treasury obligations have been deposited with the Bond Registrar or similar institution to pay, taking into account investment earnings on such obligations, all principal of -20- and interest on such Bond or Bonds when due at maturity or as called for redemption, pursuant to an irrevocable escrow or trust agreement, shall cease to have any lien on or right to receive or be paid from the Bond Moneys or Pledged Taxes and shall no longer have the benefits of any covenant for the registered owners of outstanding Bonds as set forth herein as such relates to lien and security of the outstanding Bonds. All covenants relative to the tax-exempt status of the Bonds; and payment, registration, transfer, and exchange; are expressly continued for all Bonds whether outstanding Bonds or not. Section 16. Continuing Disclosure Undertaking. The Mayor or Treasurer is hereby authorized, empowered and directed to execute and deliver a Continuing Disclosure Undertaking (the "Continuing Disclosure Undertaking") in connection with the issuance of the Bonds, with such provisions therein as he or she shall approve, his or her execution thereof to constitute conclusive evidence of his or her approval of such provisions. When the Continuing Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the Continuing Disclosure Undertaking will be binding on the City and the officers, employees and agents of the City, and the officers, employees and agents of the City are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of the beneficial owner of any Bond to seek mandamus or specific performance by court order, to cause the City to comply with its obligations under the Continuing Disclosure Undertaking. Section 17 Record-Keeping Policy and Post-Issuance Compliance Matters. The Council has previously adopted a record-keeping policy (the "Policy") to maintain sufficient records to demonstrate compliance with its covenants and expectations to ensure the appropriate -21- federal tax status for the Bonds and other debt obligations of the City, the interest on which is excludable from "gross income" for federal income tax purposes or which enable the City or the holder to receive federal tax benefits, including, but not limited to, qualified tax credit bonds and other specified tax credit bonds (including the Bonds). The Council and the City hereby reaffirm the Policy. Section 18. Publication of Ordinance. A full, true and complete copy of this Ordinance shall be published within ten days after passage in pamphlet form by authority of the Council. Section 19. Severability. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] -22- Section 20. Superseder and Effective Date. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded, including any provisions of the Enabling Ordinance; and this Ordinance shall be in full force and effect immediately upon its passage, approval and publication. AYES: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. NAYS: None. ABSENT: None. ADOPTED: April 22, 2020 APPROVED: April 22, 2020 zzw I Mayor, City of gin Kane and Cook Counties, Illinois Recorded in City Records: April 22, 2020. Published in pamphlet form by authority of the Council on April 22, 2020. ATTEST: City Clerk, City o lgin Kane and Cook Counties, Illinois -23- STATE OF ILLINOIS ) ) SS COUNTY OF KANE ) CERTIFICATION OF MINUTES AND ORDINANCE I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes and files of the City and of the Council (the "Council")thereof. I do further certify that the foregoing is a full, true and complete transcript of that portion of the minutes of the meeting of the Council held on the 22nd day of April, 2020 insofar as the same relates to the adoption of an ordinance, numbered S2-20 entitled: AN ORDINANCE providing for the issuance of$2,905,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois, for the purpose of financing certain capital improvements within said City and paying the expenses incident thereto, providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof. a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the Council on the adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given to all newspapers, radio or television stations and other news media requesting such notice; that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Council at least 48 hours in advance of the holding of said meeting, that at least one copy of said agenda was continuously available for public review during the entire 48-hour period preceding said meeting, that said agenda contained a separate specific item concerning the proposed adoption of said ordinance, a true, correct and complete copy of said agenda as so posted being attached to this Certificate as Exhibit A, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended and as supplemented by Executive Orders 2020-07 and 2020-18 (issued on March 16, 2020, and April 1, 2020, respectively), and the Illinois Municipal Code, as amended, and that the Council has complied with all of the provisions of said Act and said Code and with all of the procedural rules of the Council in the adoption of said ordinance. IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the City this 22nd day of April, 2020. 111 )4U6 Lr 1 i y Clerk [SEAL] [Attach Exhibit A] -2- EXTRACT OF MINUTES of the rescheduled regular public meeting of the City Council of the City of Elgin, Kane and Cook Counties, Illinois, held in the City Council Chambers of City Hall, at the Robert Gilliam Municipal Complex, located at 150 Dexter Court, in said City, at 6:00 p.m., on Wednesday, the 22nd day of April, 2020. The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon the roll being called, David J. Kaptain, the Mayor, and the following Council Members answered present at said location: Mayor KWtain. The following Council members attended the meeting by video or audio conference: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, and Steffen. This was allowed at this time granted by Governor Pritzker's Executive Order 2020-07. The following Council Members were absent and did not participate in the meeting in any manner or to any extent whatsoever: None. The Mayor was physically present at said location and ensured the availability of electronic meeting access by video conference to any members of the public attending the meeting in person at said location and requesting such access. The Mayor announced that a proposal had been received from Northland Securities, Inc., Milwaukee, Wisconsin, for the purchase of$2,905,000 general obligation bonds to be issued by the City pursuant to its home rule powers for the purpose of financing certain capital improvements within the City and paying the expenses incident thereto, and that the City Council would consider the adoption of an ordinance providing for the issue of said bonds and the levy of a direct annual tax sufficient to pay the principal and interest thereon. The Mayor also summarized the pertinent terms of said proposal and said bonds, including the length of maturity, rates of interest, purchase price and tax levy for said bonds. Thereupon, the City Treasurer Debra Nawrocki, together with Raphaliata McKenzie, presented and explained, and there was incorporated into the record in full the following ordinance: 0-08-0-Bond Series 2020B-DN-S2-20-Votes Added 2280394 AN ORDINANCE providing for the issuance of$2,905,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois, for the purpose of financing certain capital improvements within said City and paying the expenses incident thereto, providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof. (the "Bond Ordinance"). Council Member Rauschenberger moved and Council Member Martinez seconded the motion that the Bond Ordinance as presented be adopted. After a full discussion thereof, the Mayor directed that the roll be called for a vote upon the motion to adopt the Bond Ordinance. Upon the roll being called, the following Council Members voted AYE: Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. and the following Council Members voted NAY: None. WHEREUPON, the Mayor declared the motion carried and the Bond Ordinance adopted, and henceforth did approve and sign the same in open meeting, and did direct the City Clerk to record the same in full in the records of the City Council of the City of Elgin, Kane and Cook Counties, Illinois. Other business was duly transacted at said meeting. Upon motion duly made and carried, the meeting adjourned. " &&,b ity Clerk -2- r J ► ELGIN THE CITY IN THE SUBURBS- NOTICE OF RESCHEDULED MEETING The regular meeting of the City Council of the City of Elgin, Illinois scheduled for April 22, 2020, at 7:00 p.m. has been rescheduled from 7:00 p.m. to 6:00 p.m. The location of the meeting is in the City Council Chambers at City Hall, 150 Dexter Court, Elgin, Illinois 60120. The agenda for the meeting is set forth below. CITY OF ELGIN, ILLINOIS COUNCIL AGENDA CITY COUNCIL CHAMBERS Regular Meeting 6:00 P.M. April 22, 2020 Call to Order Roll Call Minutes of Previous Meeting—April 8, 2020 *Public Comments (Members of the public will have an opportunity to comment by presenting written statements to the city clerk in advance by email or other written comment. Those comments will then be read by Mayor Kaptain.) Bids - 1. US Communities Joint Purchase - City Hall Chiller Replacement ($224,845) 2. Joint Purchase Cooperative - Parks and Recreation Department Vehicle Purchase ($24,440) 3. Joint Purchase Contract — Highlands Masonry Repairs ($523,706) Other Business (0) 1. Consideration of Petitions 41-19 and 42-19; 711 E. Chicago Street — Extension of the Planned Development and a Conditional Use to Construct a Three-story Mixed-use Building with 40 Units of Supportive Housing, and Ground-floor Commercial Office Space City Council Agenda —April 22, 2020 Page 2 2. Resolution Authorizing Execution of an Intergovernmental Agreement Between the City of Elgin and the Village of Bartlett for the Costs Associated with the Resurfacing of Lambert Lane 3. Resolution Authorizing Execution of a Grant Agreement with the Fox River Study Group for Continued Support of the Fox River Watershed Project 4. Resolution Authorizing Execution of a Change Order No. 1 and Final with Schroeder Asphalt Services, Inc. for 2019 Miscellaneous Civil Improvements at Airlite Water Treatment Plant and Slade Water Meter Shop 5. Resolution Authorizing Execution of a Lease Agreement with PNC Equipment Finance, LLC Regarding the Lease of Golf Cars and Maintenance Utility Vehicles at the Highlands and Wing Park Golf Courses 6. Resolution Ratifying the Execution of a Real Estate Contract (St. John's Lutheran Church Surface Parking Lot on the South Side of Dexter Avenue) 7. Ordinance Amending the 2019 Budget 8. Ordinance Providing for the Issuance of Approximately $3,150,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois, for the Purpose of Financing Certain Capital Improvements Within Said City and Paying the Expenses Incident Thereto, Providing for the Levy and Collection of a Direct Annual Tax Sufficient to Pay the Principal of and Interest on Said Bonds, and Authorizing the Sale of Said Bonds to the purchaser thereof. 9. Consideration of Petition 07-20; 740 Church Road — Planned Development as a Conditional Use to Construct a 12,500-square foot Addition to an Existing Office and Warehousing Building (This Item Must be Removed from the Table) "Consent Agenda (C) 1. Resolution Authorizing Execution of a Purchase of Services Agreement with Elgin Public Museum Incorporated to Provide Services to Maintain Public Property Exhibits and Provide Educational Programming 2. Ordinance Granting a Conditional Use for an Amusement and Recreational Service, Not Elsewhere Classified, and a Commercial Event Space Involving Various Assemblies of People in the CC1 Center City District (25 South Grove Avenue, Suite 500) 3. Ordinance Granting a Conditional Use for a Planned Development in the NB Neighborhood Business District and ARC Arterial Road Corridor Overlay District to Permit Certain Departures from the Elgin Zoning Ordinance (721 Dundee Avenue) City Council Agenda —April 22, 2020 Page 3 Miscellaneous Business (M) 1. Authorization for Payments Announcements Next Committee of the Whole Meeting, Wednesday, May 13, 2020, at 6:00 p.m., in the City Council Chambers Next Regular Meeting of the Elgin City Council, Wednesday, May 13, 2020, at 7:00 p.m. in the City Council Chambers Adjournment *Pursuant to the Governor's previous executive orders regarding the COVID-19 Gubernatorial Disaster Proclamation, all public and private gatherings in the State of Illinois of 10 or more people are prohibited. The Governor's previous executive orders also include provisions allowing for relaxed electronic attendance requirements for members of the city council. Except for the mayor, members of the city council will be attending the special city council meeting electronically via telephone or video conference. When a city council meeting is necessary, public bodies are encouraged to provide video or audio access to ensure members of the public may monitor the proceedings without having to attend. The special city council meeting will be livestreamed and taped for later viewing on public access cable television channels consistent with current city practice. **All matters listed under Consent Agenda are considered to be routine and non-controversial by the City Council and will be enacted by one motion and one roll call vote. There will be no separate discussion of these items. If discussion is desired by a Council member or citizen, that item will be removed from the Consent Agenda and will be considered separately immediately after approval of the Consent Agenda. Citizens desiring discussion on any item listed under the Consent Agenda should contact a Council member prior to the meeting and request that the item be removed for discussion. The City of Elgin is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeting, or who have questions regarding the accessibility of the meeting or the facilities, are requested to contact the Human Resources Department at (847) 931-6076 or TT/TDD (847) 931-5616 promptly to allow the City of Elgin to make reasonable accommodations for those persons. STATE OF ILLINOIS ) ) SS COUNTY OF KANE ) CERTIFICATE OF PUBLICATION IN PAMPHLET FORM I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Elgin, Kane and Cook Counties, Illinois (the "City"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes, and files of the City and of the City Council (the "Council") thereof. I do further certify that on the 22nd day of April, 2020, there was published in pamphlet form, by authority of the Council, a true, correct and complete copy of Ordinance Number S2-20 of the City providing for the issuance of $2,905,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City and that said ordinance as so published was on said date readily available for public inspection and distribution, in sufficient number to meet the needs of the general public, at my office as City Clerk located in the City. IN WITNESS WHEREOF I have affixed hereto my official signature and the seal of the City this 22nd day of April, 2020. ity Clerk STATE OF ILLINOIS ) SS COUNTY OF KANE ) CERTIFICATE OF FILING I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of The County of Kane, Illinois, and as such officer I do hereby certify that on the day of May, 2020, there was filed in my office a properly certified copy of Ordinance Number S2-20 passed by the City Council of the City of Elgin, Kane and Cook Counties, Illinois, on the 22nd day of April, 2020, and entitled: AN ORDINANCE providing for the issuance of $2,905,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois, for the purpose of financing certain capital improvements within said City and paying the expenses incident thereto, providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof. and that the same has been deposited in, and all as appears from, the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of The County of Kane, Illinois, this day of May, 2020. County Clerk of The County of Kane, Illinois [SEAL] STATE OF ILLINOIS ) ) SS COUNTY OF COOK ) CERTIFICATE OF FILING I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of The County of Cook, Illinois, and as such officer I do hereby certify that on the day of May, 2020, there was filed in my office a properly certified copy of Ordinance Number S2-20 passed by the City Council of the City of Elgin, Kane and Cook Counties, Illinois, on the 22nd day of April, 2020, and entitled: AN ORDINANCE providing for the issuance of$2,905,000 General Obligation Corporate Purpose Bonds, Series 2020B, of the City of Elgin, Kane and Cook Counties, Illinois, for the purpose of financing certain capital improvements within said City and paying the expenses incident thereto, providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof. and that the same has been deposited in, and all as appears from, the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of The County of Cook, Illinois, this day of May, 2020. County Clerk of The County of Cook, Illinois [SEAL]