The URL can be used to link to this page

Home My WebLink About90-0627 bond series 1990 RESOLUTION APPOINTING APPOINTING BOND COUNSEL FOR APPROXIMATELY $7,720,000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1990 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Chapman and Cutler be and are hereby appointed as bond counsel for the sale and issue of approximately $7,720,000 General Obligation Corporate Purpose Bonds, Series 1990. George VanDeVoorde, Mayor Presented: June 27, 1990 Adopted: Vote: Yeas Nays i Recorded: Attest: Dolonna Mecum, City Clerk SPEER FINANCIAL, INC. PUBLIC FINANCE CONSULTANTS SINCE 1954 SUITE 3435 • 55 EAST MONROE STREET•,CHICAGO, ILLINOIS 60603 •(312) 346-3700• FAX(312)346-8833 Investment Rating: Moody's Investors Service . . . . . Aa $7,720,000 CITY OF ELGIN Kane and Cook Counties, Illinois General Obligation Corporate Purpose Bonds, Series 1990 Date of Sale: July 25, 1990 Average Life: 9.000 Years Net Bidders Price Coupon Rates Interest Trust Company Bank - Atlanta 99.3500 1993 6.10 % 6.604354% 1994 6.15 % $4,588,470 1995 6.20 % 1996 6.25 % 1997 6.30 % 1998 6.40 % 1999-2000 6.50 % 2001 6.55 % 2002 6.60 % 2003 6.65 % 2004 6.70 The Northern Trust Company - Chicago - Manager 99.0013 1993 7.50 % 6.60763 % Bank One, Milwaukee, N.A. - Chicago 1994 6.00 % $4,590,752 LaSalle National Bank - Chicago 1995 6.10 % Hutchinson, Shockey, Erley & Co. - Chicago 1996 6.20 % James Baker & Company - Oklahoma City 1997-1998 6.30 % Crestar Bank - Richmond 1999 6.40 % Cronin & Co. , Inc. - Minneapolis 2000-2001 6.50 % First Wisconsin National Bank of Milwaukee 2002-2003 6.60 % Hamilton Investments, Inc. - Chicago 2004 6.65 % Shawmut Bank, N.A. - Boston Harris Trust and Savings Bank - Chicago and 99.0001 1993 7.50 % 6.6254 % The First National Bank of Elgin and 1994 6.70 % $4,603,157 Kidder, Peabody & Co. , Inc. - Chicago - Jt. Mgrs. 1995 6.10 % The Boatmen's National Bank of St. Louis 1996 6.20 % Bernardi Securities, Inc. - Chicago 1997 6.30 % The Chicago Corporation -Chicago 1998 6.35 % Howe, Barnes & Johnson, Inc. - Chicago 1999 6.40 % Old Kent Bank - Chicago 2000 6.50 % United Missouri Bank of Kansas Cit N.A. -Kansas City 2001 6.55 % Union Planters Investment Bankers �roup, Inc. -Memphis 2002-2003 6.60 % 2004 6.65 % Robert W. Baird & Co. , Inc. - Milwaukee and 99.0774 1993 6.05 % 6.6566 % Rodman & Renshaw, Inc. - Chicago and 1994 6.10 % $4,624,814 NCNB National Bank - Charlotte and 1995 6.15 % Mesirow Capital Markets - Chicago - Jt. Mgrs. 1996 6.20 % First Interstate Bank of Denver-Denver 1997-1998 6.30 % 1999 6.40 % 2000 6.50 % 2001 6.60 % 2002-2004 6.70 % Griffin, Kubik, Stephens & Thompson, Inc. -Chicago 99.0000 1993-1994 7.75 % 6.705174% Clayton Brown & Associates, Inc. - Chicago and 1995 6.70 % $4,658,517 Blunt Ellis & Loewi Inc. - Chicago - Jt. Mgrs. 1996 6.25 % The First National Bank of Elgin 1997 6.30 % The Larkin Bank - Elgin 1998 6.40 % 1999-2000 6.50 % 2001-2002 6.60 % 2003-2004 6.70 % First Chicago Capital Markets, Inc. -Chicago-Mgr. 99.0100 1993 6.00 % 6.715449% Van Kam en Merritt Inc. - Lisle, IL 1994 6.10 % $4,665,656 First 1_l .nois Valley Bank & Trust- South Elgin 1995 6.15 % Lc., ji r:;uerica Goli iaili 1Y 9 , 6.25 % 1997 6.35 % 1998 6.40 % 1999 6.50 % 2000 6.55 % 2001 6.65 % 2002 6.70 % 2003 6.75 % 2004 6.80 % Prudential-Bache Capital Funding - Chicago and 99.0481 1993-1995 7.75 % 6.7704 % Shearson Lehman Hutton Inc. - Chicago and 1996 6.30 % $4,703,837 Dean Witter Reynolds Inc. - Chicago and 1997-1998 6.40 % Smith Barney, Harris Upham & Co. , Inc. -Dallas-Jt. Mgrs. 1999-2000 6.50 % Gruntal & Co. , Inc. - New York 2001 6.60 % Gabriele, Huegulin & Cashman, Inc. -New York 2002-2004 6.70 % f ► t � Speer I=itl<1 will. Inc. SPEER FINANCIAL, INC. PROPOSAL TO THE CITY OF ELGIN KANE COUNTY, ILLINOIS Financial Advisory/Bond Sale Consulting Services MAY 22, 1990 REVISED JUNE 14, 1990 S cer I-inancial, iti( TABLE OF CONTENTS CITY OF ELGIN KANE COUNTY, ILLINOIS Proposal Appendices to the Proposal Appendix A - Financial Planning and Municipal Security Sale Services Appendix B - Professional Staff Appendix C - Competitive Sale and Negotiated Placement of Securities Appendix D - Official Statement With Bids and Bidders Summary for Public Building Commission of Kane County, Illinois City of Elgin, Illinois Appendix El - Credit Enhancement E2 - Selected Client Bond Ratings Appendix F1 - Illinois Home Rule Municipal References F2 - Kane County Regional References F3 - Long-Term Clients Appendix G1 - 1988 Client Sales of Securities G2 - 1989 Client Sales of Securities G3 - 1990 (Year-To-Date) Client Sales of Securities Speer Financial, Inc. PUBLIC FINANCE CONSULTANTS SINCE 1954 SUITE 3435 • 55 EAST MONROF STREET CHICAGO, ILLINOIS 60603 • (312) 346-3700 • FAX(312) 346-BB33 ELWOOD BARCE hor C-IRwN RICHARD A.PAVIA. PRESIDENT May 22, 1990 KEVIN W.MCCANNA SR.VICE PRESIDENT Revised June 14, 1990 DAVID F.PHILLIPS VICE PRESIDENT Mr. James H. Bolerjack, Jr. SUSAN L.CARLSON City Treasurer ' VICE PRESIDENT City of Elgin 150 Dexter Court Elgin, Illinois 60120 Dear Mr. Bolerjack: In response to your telephone request, we are pleased to submit a proposal for financial advisory services for the planning and issuance of debt for the City of Elgin. Background on Firm. Speer Financial, Inc. is a nationally recognized, employee-owned firm of municipal finance consultants. We bring our clients years of experience in the financial markets . Since our founding in 1954, we have participated in the planning for and the sale of over $6.3 Billion in taxable and tax-exempt securi- ties for more than 450 clients. We routinely handle securities such as install- ment purchase contracts, notes, general obligation (both full faith and credit and double barreled) bonds, revenue bonds, current and advance refunding issues, tax increment bonds, special assessment bonds, and special service area bonds . Speer Financial is a full service firm and has served the City of Elgin on seventeen (17) previous occasions starting in 1962. The par value of these 17 issues aggregates $58,580,000 and includes both general obligation and revenue bond issues. Speer Financial has assisted Elgin with Industrial Revenue Bond (IRB) evaluations, Tax Increment Financing (TIF) planning, and other special issues . Speer Financial works solely with governments, and financial consult- ing is our only business. The firm is not affiliated with any bank, underwriter, or investing institution, and our business does not include any underwriting, purchase, or sale of bonds. We are able, therefore, to render impartial finan- cial advice to clients without bias or conflict of interest. Our services are solely for the benefit of our clients. The firm maintains a staff with varied backgrounds and disciplines , which equips the staff to permit prompt responses to client questions. Speer Financial only accepts assignments within our expertise and available time . Client satisfaction is shown by our many long-term relationships. We base recom- mendations on what a client needs to hear, not on what a client wants to hear. ' -2- May 22, 1990 Speer Financial, Inc. Summary of Services As in the past, we will continue to be available to consult through- out the year. Specific to debt. issues, Speer Financial will prepare a financial plan and then implement it through the proposed sale and issuance of debt. The City will make all final decisions, but Speer Financial will make recommendations on all aspects of the financing and work closely with the City's staff, attorney, and bond counsel . We will develop alternative bond maturity schedules and esti- mated tax rates or user fees for the City's review. After consultation, we will recommend maturity schedules and other terms for the proposed debt issuances to meet both the City's needs and to match market requirements. We will research financial and economic data relating to the City and compile an Official Statement for each debt issuance . If rating the bond is appropriate, we will recommend which rating service to use and make application. If insurance is appropriate, we will make application. We will recommend the most appropriate scope of sale and the best method of sale. When, a competitive sale is appropriate we will distribute the Official Statement to underwriters and investors and work to develop bidding groups . We attend all competitive bond sales , check the bids, and recommend which bid to accept. When a negotiated placement is most advantageous to the City, we will work with you to select an underwriter. We will assist in negotiating the interest rates , spread, terms , and conditions of the issue with the selected underwriter on your behalf. We arrange for printing and registration of the securities, arrange for delivery of the securities to the purchaser, and the simultaneous transfer of security proceeds to the City. We advise, if requested, on the investment of security proceeds until they are scheduled to be expended. A detailed listing of these services is provided in Appendix A entitled "Financial Planning and Munici- pal Security Sale Services. " Staff Assigned A team of finance professionals is provided by Speer Financial to serve the City of Elgin. A carefully coordinated distribution of responsibility and authority in the planning for and the issuance of the City' s securities by Speer Financial benefits the City. The financing team provided by Speer Finan- cial will be composed of Kevin McCanna, Senior Vice President; Susan Carlson, Vice President; and Richard Pavia, President, with the latter serving as Project Manager. Speer Financial's team approach assures that someone familiar with the issue is available at all times. Our team approach provides us with the extra flexibility to meet with City officials at your convenience without unnecessary delays . The team approach also enables varied perspectives to surface in the planning phase, and for specialization, like computer modeling, within the team. While our main business activity is to provide municipal finance consulting services, our professional staff includes an attorney, a Illinois park and recreation administrator, a professional civil engineer, and individuals with accounting, banking, economics, computer science, planning, state agency, credit analysis , and public management expertise. -3- May 22, 199C Speer Fin.-111ciOl, Inc. While the quality of our people is clearly more important than the quantity, it is important that the firm you select as your financial advisor be able to provide prompt and uninterrupted service to you during periods of vaca- tions , periods of illness , and conflicts in schedules . Working with a team assures you of prompt and professional service. Please refer to Appendix B for staff biographies. Competitive Sale or Negotiated Placement? A number of factors are closely examined to determine which of the methods of sale is best for each debt issue of each client. Neither option is inherently superior in sale results , but the openness and objectivity of the competitive sale is most attractive to most public bodies . Speer Financial objectively and without a conflict of interest analyses these factors and makes a recommendation to the issuer whether to pursue a competitive or negotiated sale. An overview of these factors and the related advantages of each method of sale is attached as Appendix C entitled "Competitive Sale and Negotiat- ed Placement of Securities" . The -role of the financial advisor includes making and justifying the selection of a method of sale that is in the best interest of the issuer. Issu- ers should ask the firm proposing to serve as their financial advisor whether they benefit financially in the purchase and resale of the securities to be issued. If so, the advisor/underwriter has two clients: (1) The issuer (who wants the lowest interest costs) ; and (2) The investors (who want the highest return on their investment) . Impartial advice by an independent financial advisor assures that decisions made are solely in an issuer's best interest. Perceived conflicts of interest are sometimes as damaging to the image of public bodies as actual con- flicts of interest. Speer Financial has no potential conflict of interest. We do not purchase or trade in municipal securities. Speer Financial has believed since our founding that the best protection for an issuer is hiring an independ- ent financial advisor. In the last two complete calendar years Speer Financial negotiated 21% of our security sales, while 47% of our bond dollar volume was negotiated. We do recommend issues be negotiated, but only when we believe it to be in our client' s best interests. I -4- May 2.2, 1990 Speer I--in lflcial, hw. Planning Your Issuance It is important to distinguish between firms that are primarily transaction oriented and Speer Financial, which is planning and transaction oriented. We know the importance of the actual security sale, but recognize that a sale is only successful if it accomplishes your policy objectives . We work with you in the planning phase to identify your primary policy options . We analyze each of these options by providing financial data on levies, tax rates, and related information. Our primary responsibility is to recommend a financing program that achieves your .public policy objectives and results in the most favorable cost of capital with the most favorable terms. The financing plan will cover more than just a single project, should this be appropriate. Marketing Your Securities Speer Financial develops a debt structure that encourages favorable pricing by bidders. When a competitive sale is selected we circulate the Offi- cial Statement as widely as is appropriate. We couple this with personal solici- tation of bidders to obtain the most bids possible. As an example of a recent competitive sale marketing effort, enclosed as Appendix E is the Official State- ment and bids and bidders results of the recent sale of Public Building Commis- sion of Kane County, Illinois, bonds with 11 bidders. We also enclose the Offi- cial Statement of a recent City of Elgin bond sale with 9 bidders. Credit Enhancement Speer Financial is a specialist in both upgrading bond ratings and preserving bond ratings from downgrading. In 1988 and 1989. 48% (67 of our 140) of our sales were rated and an additional 28% (39) of our sales were insured or otherwise enhanced. We may bring credit analysts to large clients. Where it is advantageous , we will travel with clients to New York for rehearsed personal presentations . We prepare and submit all written presentations for the ana- lyst's review and ultimate decision. We will evaluate whether the City will benefit from a credit rating or from insurance . In the last two calendar years 24% of our sales have been sold without a bond rating, insurance, or other enhancement. If either or both (rating and/or insurance) actions are appropriate, we will recommend to whom application should be made and submit the necessary information to obtain the best investment rating or insurance commitment possible. Please refer to Appendix E for more information on credit ratings or bond insurance. -5- May 22, 1990 Speer Financial, Inc. References, Long-Term Client Relationships Appendix -F1 provides Illinois Home Rule Municipal references, while Appendix F2 provides Kane County regional references. Speer Financial has estab - lished many long-term client relationships that enable the elected officials , the staff and the financial advisor to develop a comfortable working relationship. Also refer to Appendix F3 for a listing of long-term municipal, special district, and school district clients . We encourage you to contact our clients. With specific reference to Elgin, we believe the City's current "Aa" rating should be re-evaluated. In recent years Elg.in's territorial limits and assessed valuation have shown a growth trend. Since Elgin weathered the last decade without any credit downgrading, it would seem that a case should be made for possible upgrading. If you agree, we should discuss a strategy with the Mayor and City Manager Rice. Either a trip to New York City should be arranged or conversely it may prove beneficial to invite Moody's to visit Elgin and see the improvements first nand. Also it is sometimes prudent to seek a credit rating from both major services (Moody's and Standard & Poor's) . We can discuss this possibility at a future time. Speer Financial, Inc. - High Number and Par Value of Security Sales According to recent surveys , Speer Financial has maintained our ranking as one of the top independent financial advisors in the United States based on the dollar volume of issues and the number of issues brought to market. We assisted in bringing 140 issues to market amounting to over $784 Million in municipal securities in calendar 1988 and 1989. This large number of issues and par value of securities is referenced to illustrate Speer Financial's high level of expertise and market awareness which has been developed and honed by this level of activity. Attached as Appendices G1 and G2 are listings of Speer Financial's 1988 and 1989 client sales of securities. Appendix G3 is a listing of Speer Financial's 1990 year-to-date client sales of securities. Planning and Transaction Service Levels Monitored Speer Financial is quality driven. We solicit feedback from our clients on each sale of securities to monitor where it is perceived that we exceeded, met, or did not meet the expectations of our principal client contact. We recognize the value of your feedback and aggressively monitor performance perceptions to insure we continue to perform to our high standards and to your high expectations. -6- May 22, 1990 Speer I in<and al, lnc Compensation This proposal is for our professional services only and does not include the expenditure of any funds on behalf of the City. The City is to pay all of its own ordinary expenses in connection with the issue. These include, but may not be limited to, professional services (attorney, bond counsel, archi- tect, engineer, and auditor) , credit enhancement (rating, insurance, letters of credit) , delivery (postage, express mail, fax service) , and publication/printing fees (official statement, notice of sale, bid forms, report duplication, printing and delivery of the bonds) . Our fee for security sales will include all of our ordinary expenses including necessary travel in Illinois and is payable from sale proceeds . Our fee for each sale is based upon the par amount of securities issued and is calcu- lated as follows: I General Ohlipation Bonds: $3.00 per $1,000 of the par vane of municipal securities issued up to $4,000,000 and $1.25 per $1,000 in excess of $4,000,000, with a minimum fee of $5,000 for each sale. Revenue Bonds: $4.00 per $1,000 of the par value of municipal securities issued up to $5,000,000 and $1.00 per $1 ,000 in excess of $5,000,000, with a minimum fee of $5 ,000 for each sale. Based upon your telephone request specifying a $7,720,000 general obli gation bond issue , our fee would compute to $16, 650; however, we agree to a fixed $15,000 for this issue Subsequent bond issues will be based upon the above formu Ia. Our fee is the same for competitive and negotiated sales. Our recommen- dation on the method of sale is based on the best interests of the City and is not influenced by our fee. The fee is due upon the sale of the debt instrument and payable upon receipt of proceeds . Should the debt not be sold, there is no obli- gation to pay our full fee. This proposal, upon acceptance, constitutes an agreement between the City of Elgin, Kane County, Illinois, and Speer Financial, Inc. for financial con- sulting services. -7- May 22, 1990 Speer I'lnijllcial, Inc. We look forward to working with the City of Elgin and are ready to proceed upon your notification of our employment. Should you need additional infor- mation, please call. Respectfully submitted, Originated by: SPEER FINANCIAL, INC. %I j a! .J Susan L. Carlson ichard A. Pavia Vice President President RAP/SLC:mk This proposal is accep d on behalf of the City of Elgin, Kane County, Illinois, this day of , 1990. By this action, a contract is established between the City of 1gin,Kane County, Illinois, and Speer Financial, Inc. This contract will extend through the year 1992 and thereafter may be canceled by either party upon 90 days written notice. ATTEST: CITY OF ELGIN KANE COUNTY, ILLINOIS City Clerk Mayo Spear Financiiil, Inc. Appendix A FINANCIAL PLANNING AND MUNICIPAL SECURITY SALE SERVICES Speer Financial will provide the following services and any others necessary to complete the security sale: I A. Financial Planning Services (1) Orientation We will review your current financial position, statutory authority, and financing capabilities, including whether a refunding or defea- sance of any outstanding debt is appropriate. (2) Coordination We will coordinate all financial planning and issuance details with staff, bond counsel, printers , rating agencies , and other involved parties. (3) Availability Members of our staff are available at mutually agreed times to con- cult with the Board, its officials, and staff regarding all phases of the development and implementation of a financing plan. We will be available to respond to any inquiries from the general public relat- ing to the proposed sale, at mutually agreed times. (4) Planning We will develop a debt financing plan that includes: (a) Maturity Schedules Preparing alternative maturity schedules to "wrap" around existing debt. The schedules could provide stable tax rates, level debt service payments, or meet other policy or cash flow requirements. (b) Market Receptivity Evaluating potential market receptiveness for each debt issu- ance and recommending the most suitable sale option. (c) Tax Reform Act of 1986 Discussing the ramifications of Federal tax law on the finan- cial plan. I Speer Financial, Inc. - 2 - (d) Security Registration/Registrar and Paving Agent Comparing security registration and paying agent fees and making recommendations for the selection of a Registrar and Paying Agent who most capably and economically meets a client's needs. (e) Credit Enhancement Evaluating the benefits of obtaining a credit rating or insur- ance. We will review the merits of credit enhancement and should the cost effectiveness of either be warranted, recommend the firm (or firms) to which application should be made. We will submit the necessary data to the rating and/or insurance company(ies) . (f) Competitive and Negotiated Sale of Debt Securities The decision to issue securities competitively or by negotia- tion is subjective and must be made on a case-by-case basis . The circumstances which indicate a negotiated sale include: (1) Either unusually large or very small debt issue amount; (2) Complex or non-traditional financing structure; (3) Issuer's first time into the debt marketplace; (4) Issuer has a low or questionable credit rating; (5) Volatile market conditions. The circumstances which indicate a competitive sale include: (1) Attractive debt amount of $300,000 and up; (2) Traditional. financing structure such as a general obliga- tion; (3) Good reputation in the debt marketplace; (4) Stable credit rating; (5) Stable market conditions. (g) Tentative Financing Schedule Preparing. a tentative financing schedule to guide officials regarding issuance topics and timing. B. Bond Sale Services To facilitate sale of a .client's debt issues, our services include: Speer er Financial, inc. - 3 - (1) Legal Proceedings When the recommended plan of financing has been approved by the client, we will specify to the issuer' s attorney and bond counsel the financial provisions to be included in the legal proceedings authorizing the debt issuance. (2) Official Statement, Notice of Sale and Bid Form (a) Official Statement Preparation Compiling an Official Statement, Notice of Sale, and a Bid Form for each sale. The Official Statement shall describe the securities and contain detailed information about the issuer to permit intelligent judgments to be made by prospective purchasers. (b) Notice of Sale Publication Preparing a summary form Notice of Sale for publication in The Bond Buyer (a trade journal published in New York City) if such an advertisement is cost effective. (c) Encouragement to Bidders Circulating the approved Official Statement to our exten- sive list of interested parties , including investment p g s tment institutions, banks and underwriters, to induce the best possible bid for the securities . We will also make personal contacts to induce formation of bidding groups. In this manner, we will attempt to generate as many bids as possible. A supply of Official Statements and Offi- cial Bid Forms for each sale are furnished to the issuer: (d) Bid Opening, Analysis and Recommendations Assisting at each sale, examining the bids submitted for completeness and compliance with the bid requirements, and evaluating the bid(s) on our computer. We will recommend which bid, if any, should be accepted. (3) Printing, Registration and Delivery of Bonds Conducting all steps necessary to bring about the orderly completion of the financing, including supervision of the printing, registration, and delivery of the securities. Speer Financial, Inc. - 4 _ (4) Debt Service Schedule Providing the issuer with a final debt service schedule and other materials pertinent to the bond sale. (S) Sale Proceed Investment Schedule Upon request, estimating a realistic time schedule for the expenditure of sale proceeds to enable unexpended amounts to be invested and thereby help offset interest expense. C. Negotiated Sale In the event of a negotiated sale, Speer Financial will also help the issuer select an underwriter and assist in negotiations for the interest rate, terms, and conditions of the debt issue. Speer Financial, In( , Appendix B Professional Staff The financing team for the City of Elgin will be Richard Pavia, Kevin McCanna, and Susan Carlson. Richard A. Pavia - President (CEO) , Director and Owner. B. S . Civil Engineering and M.S. Sanitary Engineering, Illinois Institute of Tech- nology. Received degree in Advanced Management, University of Chicago. Registered Professional Engineer. Served as Commissioner of Water and Sewers of the City of Chicago (1973-1979) ; Deputy Commissioner (1966- 1973) . Chief Engineer of Illinois Building Authority (1964-1966) • Administrative Engineer for the Metropolitan Sanitary District of Great- er Chicago (1963-1964) ; Chicago Department of City Planning (1958-1963) . From 1954-1958 he worked in private industry in both design and con- struction assignments. Fellow, American Society of Civil Engineers , President of Illinois Section (1978) , Chairman of National Policy Com- mittee on Environmental Systems (1979-1982) ; Diplomate, American Acade- my of Environmental Engineers , (Trustee 1979-1982) ; Former Director, American Water Works Association and first Chairman of the Water Utility Council; member of Government Finance Officers Association, American Public Works Association, Water Pollution Control Federation and various other civic and professional organizations. Speaker at local, state and national gatherings. Kevin W. McCanna - Senior Vice President, Director and Owner. B.A. Political Science, University of Chicago; Law Degree, Loyola University; and M.B.A. Finance and Economics, Northwestern University. Previously with an Illinois State Senator and the Federal Tax Analysis Department of Commerce Clearing House. Member of the Chicago Municipal Analysts Society, the Investment Analysts Society of Chicago, and the Wisconsin and Illinois Municipal Finance Officers Associations. Speaker at local, state and national gatherings. Susan L. Carlson - Vice President. B.A. Western Illinois University; M.B.A. in Finance, Northwestern University School of Business. Former Program Administrator at the Illinois Development Finance Authority. Served previously an Investment Officer at The First National Bank of Chicago, and a Budget Analyst for the Illinois House of Representatives. Member, Chicago Municipal Analysts Society and the Illinois Municipal Finance Officers Association. Contributor to various professional magazines. Member of the Speaker's Task Force on State and Local Debt Reform i Speer [-ini3I cial, Inc. Professional Staff (Continued) Additional staff to support the financing team: Elwood Barce - Chairman, Director and Owner. B.A. Economics, DePauw University; M.B.A. , Indiana University. Contributor to various finan- cial publicaions including Governmental Finance, the official publica- tion of the Government Finance Officers Association. Began investment career as a municipal bond analyst at CNA Financial Corporation. Member of Investment Analysts Society of Chicago, Municipal Bond Club of Chica- go, Wisconsin Municipal Finance Officers Association, and Chicago Munic- ipal Analysts Society. Active in the municipal bond business since 1955. David F. Phillips - Vice President/Director of Marketing, Director and Owner, B.S. Municipal Park and Recreation Administration, University of Iowa; Certified Professional Municipal Parks and Recreation Administra- tor (Illinois) . Served as Park District Manager of the Wheeling Park District in northwest suburban Chicago (1972-1986) , President of the National Recreation and Park Association (NRPA) Council of Affiliate Presidents (1985) ; President of The Illinois Park and Recreation Associ- ation (1983) , Member of the NRPA Great Lakes Regional Council (1982- 1986) , Member of the Illinois and National Professional Park and Recrea- tion Associations ; Contributor to various professional magazines . Speaker at local, state and national gatherings. M. Joanne Foerster - Assistant Vice President. B.A. , Political Science, The Pennsylvania State University; M.S. , Public Management and Policy, Carnegie-Mellon University. Previously served as a Municipal Credit Analyst and an Investment Banking Officer with the Mellon Bank in Pitts- burgh (1985-1989) . Served as a member of a municipal council and as a member of the finance committee of that council. Member of the Govern- ment Finance Officers Association and the Chicago Municipal Analysts Society. Notice: Speer Financial, Inc. is an equal opportunity employer. Spear Financial, Inc. Appendix C COMPETITIVE SALE AND NEGOTIATED PLACEMENT OF DEBT SECURITIES A number of factors are examined to determine which method of sale is best for each issue of each client. A detailed examination of the benefits of each method of sale and the general circumstances favoring each method is presented below. While no hard and fast rules exist, general rules of thumb provide that: Competitive Sale Advantages : Satisfies legal requirements in all states. Provides the best public perception of openness in the conduct of public business. Evidence in the form of numerous competi- tive bids provides a high level of comfort to the issuer, your constituents and the media that report on your conduct. Historically has been the most frequently used and familiar method of sale, particularly for general obligation debt. Provides the issuer control of the sale process, including when the securities are sold and when funds are received, through adherence to a timetable. x Market competition among potential buyers tends to benefit the issuer with lower net interest rates during stable market conditions. All. direct costs are established in advance. There is no under- writer management fee. Circumstances indicating a competitive sale include: (1) Attractive debt amount of $300,000 and up; (2) A traditional financing structure such as a general obligation bond; (3) The issuer has a good reputation and name recognition in the municipal market; (4) The issue has an investment grade credit rating; and (5) Relatively stable conditions exist in the municipal securities market. The geographic scope of a competitive sale can range from local banks only to regional or national banks and investment bankers. Negotiated Placement Advantages: x Can be used to explain more complex or non-traditional financ- ings to potential investors thereby potentially reducing or removing market uncertainty. Spccr [=inand(at, Inc. 2 _ F Provides a more flexible timetable which, during a period of high market volatility, may allow the issue to be sold at short notice when a "favorable market window" is perceived to exist. Allows a pre-sale market assessment by an underwriter which reduces the perceived marketing risk and can result in lower interest rates based on known (versus perceived) resale abili- ty. x Until an actual agreement to sell is reached, underwriters typically serve at the pleasure of the issuer and may be re- moved or replaced. When Speer Financial, who is as informed about the market as the underwriter, is assisting the issuer set rates, terms, and conditions, the underwriter's responsive- ness tends to increase. Circumstances favoring a negotiated placement include: (1) Either an unusually large or a very small debt amount; (2) A complex or non-traditional financing structure; (3) The issuer is a new or infrequent participant in the market- place; (4) The issue has a low or questionable credit rating; and (S) Volatile conditions exist in the municipal securities market. The geographic scope of a negotiated placement can range from locally purchased and retained (not for resale) to local, regional and national placements for resale. Role of Financial Advisor The role of the financial advisor includes recommending and justifying the selection of a method of sale that is in the best interest of the issuer. Issuers should ask the firm proposing to serve as their financial advisor whether they benefit financially in the purchase and resale of the securities to be issued. If so, the underwriter/advisor has two clients: (1) The issuer (who wants the lowest interest costs) ; and (2) The investors (who want the highest return on their investment) . Impartiality of advice assures an issuer that decisions made are in your best interests. Perceived conflicts of interest are sometimes as damaging to the image of public bodies as actual conflicts of interest. Speer Financial, Inc. is an employee-owned firm and has no potential con- flict of interest. We do not purchase or trade in municipal securities. Speer has believed since our founding that the best protection for a secu- rities issuer is by hiring an independent financial advisor who has no potential conflict of interest. Speer Financial, Inc. Appendix E1 CREDIT ENHANCEMENT Rating Experience Our relationship with the two New York based rating agencies (Moody' s and Standard & Poor's) extends beyond three decades . We are in regular contact with them and know their requirements , preferences, and idiosyncrasies. We lay no claim to obtaining a higher rating than a client de- serves; our clients receive the highest rating to which they are entitled. Presentations to the agencies , whether in person or in writing, will be candid. The information provided shall be as complete as possible and any additional details requested will be provided promptly. We have the expe- rience to guide you in making the strongest possible presentation, which in turn results in the best interest rate your credit standing can justify. Bond Rating Cost Benefit Analysis When the cost of a credit rating is offset or exceeded by interest savings , then Speer Financial, Inc. will recommend that the security be rated. In the last two calendar years, 48% (67 of 140 sales) were rated. Should a personal presentation be advantageous to the issuer, travel to New York is sometimes necessary. This usually occurs when the rating agencies face borderline decisions in upgrading or downgrading the new security as compared to prior debt issues. Rating Criteria There are many criteria that the rating agencies examine when considering a credit rating. Factors that are examined include , but are not limited to: (1) Population trends (2) Equalized assessed valuation trends (3) Economic base strength (4) Diversification of employment of community residents (5) Family income and per capita money income measures (6) Median home value and type of housing units (7) Financial condition (8) Debt burden and related measures (9) Evidence of, commitment to, and results of long range planning (10) Bond issuance/bond retirement timing (11) Tax collections (12) Residents' education (years of school completed, degrees) (13) Area unemployment rate. Speer Financial, Inc. 2 - Information is obtained from annual financial statements, audits, census local planning reports, state labor department statistics, and other sources. Rating agencies are paying increasing attention to management as a factor in the rating process. The Insurance Option Speer Financial, Inc. also analyzes the cost benefit of prompt payment insurance. Bonds that are insured receive a Moody's Aaa (insured) and a Standard & Poor's AAA (insured) rating but typically sell with higher interest rates than double A, uninsured bonds . Notes that are insured receive a Moody's MIG-1 and a Standard & Poor's SP-1+ rating. The added cost of insurance must be offset by a lower interest rate or the insurance is not cost effective and would not be advantageous. Speer Financial, Inc. will recommend a course of action for client approv- al. Should insurance or other credit enhancement be advantageous, Speer Financial, Inc. would recommend one of several actions: (1) to obtain a commitment from one or more companies for insurance and design the sale for insurance coverage at the option of the bidders; or (2) to obtain the insurance at the cost of the issuer; or (3) to have the security purchaser obtain the insurance, in which case the cost will be reflected in the price paid for the securities. Insurance may not be cost effective for issuers with stable credit ratings greater than "A" , or for very small and/or short debt issues. The break- point at which bond insurance makes sense changes daily with the municipal market, and is best determined close to the sale date. In the last two calendar years 28% (39 of 140) of our sales were insured. Letters of Credit Letters of credit (LOC) are issued by financial institutions , usually commercial banks. LOG substitutes the credit worthiness of a bank for that of the issuer. Under the terms of a LOG, the bank is committed to advance the monies necessary to meet all payments due on a debt issue if it becomes necessary. Payments are usually made directly to a trustee acting on behalf of the investors. LOG's are not available for as long a period of time as is insurance. The cost, terms , and conditions of a LOG are less standardized than those for prompt debt service payment insurance and associated legal costs are usually greater. Spear Financial, Inc. Appendix E2 GENERAL OBLIGATION BOND RATINGS OF A SAMPLING OF CLIENTS Shown below are the investment ratings of a sampling of our clients: ood 's Standard & Poor' s Village of Winnetka, IL Aas -- City of Wheaton, IL Aal -- Lake County, IL Aal AA City of Naperville, IL Aal -- Township High School Dist. #203 (New Trier) , IL Aal -- DuPage Water Commission, IL Aa AA City of Des Plaines, IL Aa -- City of Elmhurst, IL Aa - - Village of Arlington Heights, IL Aa -- Village of Oak Park, IL Aa -- Park District of Oak Park, IL Aa -- Downers Grove Park District, IL Aa - - Brown County, WI Aa -- City of Green Bay, WI Aa AA Green Bay Area Public School District, WI Aa - - City of Clinton, IA Aa -- City of Dubuque, IA Aa - Des Moines Independent Comm. Sch. Dist. , IA Aa -- Oak Brook Park District, IL Aa -- Central Lake County Joint Action Water Agency, IL Al -- Northwest Water Commission, IL Al A Community College District No. 508, IL Al AA- Deerfield Park District, IL Al - - City of Aurora, IL Al -- Village of Villa Park, IL Al -- Mt. Prospect Park District, IL Al -- Village of Buffalo Grove, IL. Al AA- Des Plaines Park District, IL Al -- Waukegan Park District, IL Al -- Village of Addison, IL Al -- Village of Brookfield, IL Al -- City of Batavia, IL Al -- Village of Libertyville, IL Al -- Village of Lombard, IL Al - - Village of Woodridge, IL Al -- Speer Finc-racial, Inc. Village of Bensenville, IL Al Winnebago County, IL Al Knox County, 11, Al - - Elkhart Community Schools, IN Al - - Rev. 3/90 Spear 1-inancial, Inc. Appendix F1 ILLINOIS HOME RULE MUNICIPAL REFERENCES CITY OF ELMHURST CITY OF JOLIET Contact: Mr. Thomas P. Borchert Contact: Mr. Robert D. Fraser City Manager Dir. of Management & Budget 119 Schiller Street 150 West Jefferson Street Elmhurst, IL 60126 Joliet, IL 60431 (708) 530-3000 (815) 740-2495 CITY OF AURORA CITY OF NAPERVILLE Contact: Mr. Roger Cantlin Contact' Mr. Ronald S. Miller Finance Director City Manager 44 East Downer Place 175 West Jackson Avenue Aurora, IL 60507 Napperville, IL 60566 (708) 892-8811 (708) 420-6111 CITY OF DES PLAINES VILLAGE OF BUFFALO GROVE Contact: Mr. Gregory Peters Contact: Mr. William Balling Compptroller Village Manager 1420 Miner Street 50 Raupp Boulevard Des Plaines IL 60016 Buffalo Grove IL 60089 (708) 391-5'300 (708) 459-2506 VILLAGE OF ARLINGTON HEIGHTS VILLAGE OF WHEELING Contact: Mr. Kenneth Bonder Contact: Mr. Robert Fialkowski Village Manager Assistant Village Manager/ 33 South Arlin ton Height Road Finance Director Arlington Heihts, IL 60005 255 West Dundee Road (708) 253-2346 Wheel' IL 60090 (708) 45�-2600 VILLAGE OF WOODRIDGE Contact: Mr. John Perry CITY OF PERU Village Administrator Contact: Mr. Douglas Schweickert 1900 West 75th Street- Cit Attorne Woodridge, IL 60517 172 Fourth treet (708) 892-7000 Peru, IL 61354 (815) 223-0177 CITY OF WHEATON CITY OF SPRINGFIELD Contact: Mr. Donald L. Rose Contact: Mr. Carl Forn City Managger Director, Office of 303 West Wesley Street Management and Budget Wheaton IL 60187 7th and Monroe Streets (708) 2�0-2000 Sppringfield IL 62701 (217) 789-2b00 VILLAGE OF OAK PARK VILLAGE OF ADDISON Contact: Mr. A. Dean Moore Contact: Mr. Bob G. Simpson Finance Officer Village Treasurer One Village Hall Plaza 131 West Lake Street Oak Park, IL 60302 Addison, IL 60101 (708) 383-6400 (708) 543-4100 VILLAGE OF PALATINE Contact: Mr. Michael D. Kadlecik Village Manager 200 East Wood Street Palatine IL 60067 (708) 35A-7500 1/90 1988 SPEER FINANCIAL, INC. CLIENT SALES OF SECURITIES Invest- 1988 ment Type of Date # of Net Interest Rate Last Issuer RRati�nz Issue Size Security of Sale Bidders Low Bid High Bid Maturit Morr s IL Al G.O. Sewer Bonds �7T� �- �� 5 00F Riverdale Public Library District, IL Baal 900,000 G.O. Bonds 01/25 4 7.00691 % 7. 12322 X 1999 School District No. 40 (Moline) , IL MIG-2 1,965,000 G.O. Notes 01/26 5 5. 1820 % 6.00 % 1988 Central Lake Co. Joint Aaa/AAA Action Water Agy, IL(Insured) 4,250,000 Wtr. Rev. Notes 02/10 Neg. 6.005938% 1992 Waverly-Shell Rock Comm. S/D, IA Baal 985,000 G.O. Notes 02/16 6 6. 162147% 6.75 % 1995 Paris , IL Aaa/AAA 2,000,000 G.O. Sewer Bonds 02/22 8 7.0260 % 7.346257% 2008 (Insured) Green Bay, WI Aa/AA 6, 325,000 G.O. Bonds 03/01 8 7.0337 X 7.2044 % 2008 Green Bay, WI Aa/AA 1,320,000 Taxable G.O. Bonds 03/01 7 9.0191 % 9.50142 % 2002 Buffalo Grove, IL Al 2,000,000 G.O. Bonds 04/04 8 6.49792 % 6.680259% 1996 Algonquin, IL Aaa/AAA 1, 750,000 WW & Sew, Rev. Bds 04/05 7 7.7308 X 8. 173937% 2009 (Insured Palos Heights, IL Aaa(LOC, 4,800,000 Tax Incre. Bonds 04/05 Neg. 6. 50 % 1996 Riverdale IL NR 1000,000 G.O. Bonds 04/12 7 6.2613 X 6.814561% 1993 Geneva, IL Aaa/AAA 1:250,000 Wtr. & Sew. Rev.Bds 04/18 6 6.9817 % 7.1808321% 2001 (Insured) Joliet, IL Aaa/AAA 13,700,000 G.O. Bonds 04/19 5 7.62821 % 7.83168 % 2008 (Insured) Peru, IL Aaa/AAA 2,800,000 G.O. Sewer Bonds 04/25 6 6.953 % 7.1433 % 2001 Green Bay Area Pub. (Insured) Sch. Dist. , WI Aa 3860,000 G.O. Prom. Notes 04/25 8 6.4327 % 6.730 % 1998 Aurora, IL Aaa/AAA 9:975,000 G.O. Bonds 04/26 6 7.297 % 7.536360% 2008 (Insured) Western Springs, IL A 2,600,000 WW & Sew. Rev. Bds. 05/09 5 7.51080 % 7.6913 % 2008 Springfield, IL Aaa/AAA 4,125,000 Sewer. Ref.Rev.Bds. 05/17 Neg. 7.104586% 2002 (Insured) South Bend Community School Corp. , IN A 5,000,000 G.O. Bonds 05/23 6 6.2498 X 6.43665 % 1993 Dixon Unit School District #170, IL NR 3,180,000 G.O. T/A Notes 05/25 Neg. 7.00 % 1989 St. Charles Park District, IL NR 460,000 G.O. Bonds 06/01 6 5.7420 % 6.86994 % 1990 Mattoon, IL Aaa/AAA 4,000,000 G.O. Bonds 06/01 7 7.2248 % 7.598649% 2003 (Insured) Elgin IL Aa 4950,000 G.O. Bonds 06/08 9 6.8034 % 7.021999% 2002 Waterioo, IA Aaa/AAA 5:700,000 G.O. Bonds 06/14 5 7.28006 X 7.51295 % 2005 (Insured) Naperville, IL Aal 9,500,000 G.O. Bonds 06/20 6 6.73710 X 6.882871% 2000 ,d Communit Unit S/D ,b 0321, Chillicothe, IL NR 1,500,000 G.O. Notes 06/21 2 6.199 % 6.464807% 1989 � Batavia Park Dist. ,IL NR 950,000 Certificates 07/07 8 6.8598 % 7.280663% 1995 a, Public Building Comm. Aaa/AAA % of Peoria, IL (Insured) 2,150,000 Park Fac. Rev. Bds. 07/21 8 6.3773 % 6.631473% 1992 Elmhurst, IL Aa 8,000,000 G.O. Bonds 07/25 5 7.6463 . % 7.796540% 2013 LaSalle, IL Aaa/AAA 1,685,000 G.O. Sewer Bonds 07/25 6 7.4173 % 7.71930 % 2008 (Insured) 1988 SPEER FINANCIAL, INC. CLIENT SALES OF SECURITIES (Continued) Invest- 1988 ment Type of Date # of Net Interest Rate Last Issuer Ratine Issue Size Security of Sale Bidders Low Bid High Bid Maturity Community Unit S/D #321, Chillicothe, IL NR 1, 500,000 G.O. Bonds 07/26 4 7.083015% 7.432504% 1999 Wheaton, IL Aal 4,950,000 G.O. Bonds 08/22 9 6.8678 % 7.103865% 1999 Palos Hills, IL NR 1,200,000 Installment Notes 09/01 . Neg. 8.00 % Des Moines, IA Aa/AA 11,100,000 Water Rev. Bonds 09/07 7 7.2306 % 7.4429 % 2006 Mt. Prospect Park District, IL Al 2,520,000 G.O. Bonds 09/12 7 6.259972% 6.489 % 1991 Moline School Dist. No. 40, IL MIG-2 2 ,985,000 G.O. Notes 09/13 4 6. 5696 % 6.98 % 1989 Deerfield Park District, IL Al 480,000 G.O. Bonds 09/15 12 5.9868 % 6.4897 % 1990 DesPlaines Park District, IL Al 1,695,000 G.O. Bonds-Ser. A 09/20 11 6.24107 % 6.644152% 1991 DesPlaines Park District, IL Al 805,000 G.O. Bonds-Ser. B 09/20 Neg. 5.849999% 1989 DuPage County IL NR 360,000 S.S.A. Bonds 09/27 Neg. 8.00 % 2008 City of Waterioo, IA Aaa/AAA 2,245,000 SewerRev.Bds-Ser.A 09/28 3 7.4695 % 7.7071 % 2008 (Insured) City of Waterloo, IA Aaa/AAA 1,180,000 SewerRev.Bds-Ser.B 09/28 2 7.28005 % 7 .4135 % 2000 (Insured) Public Bldg. Comm. Aaa/AAA 134,570,000 Revenue Bonds 10/03 Neg. 7.604374% 2008 of Chicago, IL (Insured) Kane County Public 3uilding Comm. , IL Aa 900,000 Pub. Bldg. Rev.Bds. 10/13 11 5.9089 % 6.4118 % 1990 Lisle Park Dist. , IL NR 910,000 G.O. Bonds-Ser. 88A 10/14 Neg. 6.899999% 1993 Oak Park IL Aa 8,400,000 G.O. Bonds 10/17 8 6.92516 % 7.039796% 2004 Bensenville Park District, IL NR 400,000 G.O. Bonds 10/26 8 6.3573 % 6.717795% 1991 Waukegan Park Dist. , IL Al 1110,000 G.O. Bonds 10/27 16 6.09864 % 6.71 % 1991 Brown County WI Aa 4:900,000 G.O. Bonds 11/14 7 7.1158 % 7.2479 % 2008 Arlington Heights, IL Aa 9,850,000 G.O. Bonds 11/21 8 6.850 % 6.971001% 2003 Libertyville, IL Aaa/AAA 4,500,000 WW & Sew. Rev. Bds. 11/22 4 7.599177% 7.7221 % 2013 (Insured) Lisle Park Dist. , IL NR 280,000 G.O. Bonds-Ser. 88B 12/02 Neg. 7.152037% 1994 Addison, IL Al 4,950,000 G.O. Bonds 12/05 8 7.130888% 7.3263 % 2004 Des Plaines, IL Aa 4,950,000 G.O. Bonds 12/05 8 7.254985% 7.4862 % 2008 Green Bay Area Public School Dist. WI Aa 4 800 000 G.O. Notes 12/05 8 6.8543 % 6.968584% 1998 Melrose Park, fL Aaa/AAA 4:000:000 G.O. Wastewtr. Bds. 12/07 6 7.0159 % 7.252781% 2002 (Insured) Villa Park, IL Al 500,000 G.O. Bonds 12/19 4 6.7000 % 7.1314 % 1999 Green Bay, WI Aa AA 3,650000 G.O. Bonds 12/20 7 7.2728 % 7.379263% 2008 Green Bay, WI Aa/AA 685:000 Taxable G.O. Bonds 12/20 2 9.733286% 9.9761 % 2003 Peoria S/D #150, IL MIG-1 4,950,000 G.O. T.A. Notes 12/27 4 6.72037 % 7.1589 % 1989 Average a 6.69 bidders in competitive sales. TvDe of*Sale Number Amount egotiate . . . . . . . . . . . . . . . -7FF- $154,4TU7, M Competitive . . . . . . . . . . . . 51 186,225,000 Total Bond Sales . . . . . . . . . �340, 705,000 The above listing is a full and complete record of Speer Financial's sales of municipal securities for the time period shown. 1989 SPEER FINANCIAL, INC. CLIENT SALES OF SECURITIES Invest- 1989 ment Type of Date # of Net Interest Rate Last Issuer Ratine Issue Size Security of Sale Bidders Low Bid High Bid Maturity Mt. Prospect Park District, IL Al $ 4950,000 G.O. Bonds* 01/18/89 6 6. 7055 % 6.91219 X 1997 Moline School Dist. Aaa/AAA 4:500,000 G.O. WCF Bonds 01/24/89 7 6.8563 % 7.0282 % 1999 No. 40, IL (Insured) Dixon School Dist. No. 170, IL NR 1800,000 G.O. WCF Bonds 01/25/89 5 6.8061 % 7.0490 % 1991 Naperville, IL Aal 19:000,000 G.O. Bonds 02/21/89 6 7. 1893 % 7.277911% 2009 Township High Sch. Dist. #203 (New Trier) , IL Aal 4,000,000 G.O. Bonds 03/13/89 7 6.8748 % 7.077033% 1996 South Jacksonville, IL NR 870,000 G.O. Bonds 03/16/89 Neg. 7.414397% 2004 Mount Vernon Community School District, IA NR 1,050000 G.O. Bonds 03/20/89 4 7.487 % 7.51249 % 2006 Freeport Park Dist. , IL NR 590:000 G.O. Bonds* 03/21/89 Neg. 7.697948% 2005 Brookfield, IL Al 2,750,000 G.O. Bonds* 03/27/89 8 7.2768 % 7.41933 % 2004 Lisle Park Dist. , IL Aaa/AAA 2,350,000 G.O. Bonds* 03/28/89 Neg. 7.335096% 2001 Public Buildin (Insured) gg Comm. Aaa/AAA 148,925,000 Bldg. Rev. Bonds 04/03/89 Neg. 7.8433274% 2006 of Chicago, IL (Insured) Bensenville, IL Aaa/AAA 3,265,000 WW & Sew. Rev. 04/06/89 '5 7.317208% 7.36371 % 2003 (Insured) Winfield Park Dist. ,IL NR 810,000 G.O. Bonds* 04/13/89 5 7.5212 % 8.0828 % 2004 Joliet Park Dist. , IL NR 870,000 G.O. Bonds 04/17/89 9 7.3237 % 7.7931 % 1992 Pekin Park District, IL NR 1,200,000 G.O. Bonds* 04/20/89 2 7.5825 % 7.67880 % 2003 St. Charles Park Dist. ,IL NR 980000 G.O. Bonds 04/25/89 12 7.0954 % 7.4648 X 1992 Central Lake County Jt.Aaa/AAA 35,000:000 G.O. Bonds 04/26/89 12 7.401996% 7.5492 % 2019 Action Wtr. Agcyi IL(Insured) Dixon School District NR 1,670,000 G.O. Notes 04/26/89 Neg. 7.00 % 1990 No. 170, IL Green Bay, WI Aa/AA 3,130,000 G.O. Bonds 05/02/89 7 7.1081 % 7.240599% 2008 School City of Mishawaka, IN A 4272,700 1st Mrtg. Bonds 05/02/89 Neg. 7.34 % Dubuque, IA Aa 4:150,000 G.O. Bonds 05/15/89 5 6.7091 X 6.86815 % 2000 Waterloo Water Works,IA NR 885,000 Wtr/Rev/Bds/Ser89A 06/13/89 Neg. 7.559587% 2003 Waterloo Water Works,IA NR 615000 Wtr/Rev/Bds/Ser89B 06/13/89 Neg. 7.431337% 2006 Green Bay Area Public Aa 3,585:000 G.O. Notes 06/19/89 7 6.560153% 6.6832 % 1999 School District WI Geneva Park District, IL NR 560,000 G.O. Bonds* 06/19/89 1 6.800484% 1999 East Moline, IL Baal 400,000 G.O. Bonds* 06/19/89 3 7.109667% 7.4282 % 2001 Waterloo, IA Aaa/AAA 4,900,000 G.O. Bonds 06/22/89 5 6.891918% 6.9861 % 2004 (Insured) Joliet School Dist. Aaa/AAA 8,800,000 G.O. Bonds 07/12/89 7 6.43474 X 6.5600 X 1999 Number 86, IL (Insured) Aurora, IL Aaa/AAA 10,000,000 G.O. Bonds 07/18/89 6 7.0481 % 7. 1255 % 2014 (Insured) Sanitary Dist. of the Aaa/AAA 2,950,000 G.O. Bonds 07/25/89 6 6.870267% 7.042 X 2004 b Town of Higghland,IN (Insured) Waverly-Shell Rock Aaa/AAA 3,500,000 G.O. Bonds 08/07/89 5 6.94019 X 7.0683 % 2009 Comm. Sch. Dist. ,IA (Insured) a. K N 1989 SPEER FINANCIAL, INC. CLIENT SALES OF SECURITIES (Continued) Invest- 1989 ment Type of Date # of Net Interest Rate Last Issuer Rating Issue Size Securit of Sale Bidders Low Bid High Bid Maturit Lake County, IL NR 925,000 S.S.A. #6 Bonds 9 Neg. 7.9242411 2009 Lake County, IL NR 575,000. S.S.A. #7 Bonds 08/08/89 Neg. 7.9247 % 2009 Montgomery, IL Aaa/AAA 3,000,000 G.O. Water Bonds 08/14/89 4 6.894217% 7.0134 % 2008 Chillicothe Community (Insured) Unit S/D, IL NR 1,500,000 G.O. Notes 08/22/89 3 6.624998% 6.864091% 1990 Kane County Public Buildingg Comm. , IL Aa 3 100 000 Bldg. Rev. Bonds 08/24/89 9 6.2112 ' % 6.3284 % 1994 Aurora, IL Aaa/AAA 9:300:000 G.O. Bonds 09/05/89 Neg. 7.229208% 2019 Park District of (Insured) Highland, IN Baal 420,000 G.O. Bonds 09/06/89 i 6.8334 % 7 .4934 % 1999 Villa Park, IL NR 199,000 S.S.A. Bonds 09/11/89 Neg. 6.932336% 1999 Villa Park, IL NR 172,000 G.O. Bonds 09/11/89 Neg. 6. 732459% 1999 Batavia, IL Al 750,000 G.O. Bonds 09/18/89 9 6.4274 % 6.6451 % 1998 Ill. Develop. Finance Aaa/AAA 19,200,000 Revenue Bonds 09/19/89 8 7.22937 % 7.4576 % 2010 Auth. (Joliet) , IL (Insured) Libertyville, IL Al 4,750,000 G.O. Bonds* 09/19/89 5 7.027792% 7.1263 % 2009 Brown County, WI Aa 4,950,000 G.O. Bonds 09/21/89 5 6.790050% 6.936345% 2008 Woodridge, IL Al 4,975,000 G.O. Bonds 09/28/89 4 7.18922 % 7.3147 % 2009 Green Bay Area Public School Dist. , WI Aa 4 150 000 G.O. Notes 10/04/89 9 6.620815% 6.8188 X 1999 Lombard, IL Al 1:000:000 G.O. Bonds 10/05/89 7 6.85080 % 7.1722 X 2004 Rolling Meadows Park District, IL A 1,855,000 G.O. Bonds 10/10/89 12 6.2171 X 6.3888 % 1992 Bensenville Park Dist. ,IL NR 500000 G.O. Bonds 10/25/89 10 6.225 % 6.7801 % 1992 Waukegan Park Dist. , IL Al 1,435:000 G.O. Bonds 10/26/89 16 5.848982% 6.379124% 1992 Downers Grove Park District, IL Aa 2,180,000 G.O. Bonds 11/06/89 14 6.0627 X 6. 360 X 1991 Solid Waste Agency of Northern Cook Co. , IL NR 2,000,000 Contract Notes 11/12/89 Neg. 6.63 % 1991 Homewood-Flossmoor Park District, IL NR 800,000 G.O. Bonds 11/14/89 12 5.875 % 6.570286% 1991 Clinton, IA Aa 4120,000 G.O. Bonds 11/14/89 7 6.345 X 6.517530% 2003 Galesburg, IL A 4:500,000 G.O. Bonds 11/20/89 7 6.4440 % 6.782112% 2004 Paris Union School Dist. No. 95, IL NR 550,000 G.O. Bonds 11/20/89 7 6.382259% 6.7942 % 1999 Franklin Park, IL NR 700,000 G.O. Bonds (TIF) 11/20/89 Neg. 7.363889% 2009 Winnebago County, IL Al 2,000,000 G.O. Bonds* 11/21/89 12 6.23736 % 6.431040% 1999 Franklin Park, IL Aaa/AAA 3,785,000 Water Rev. Bonds 11/30/89 5 6.35880 % 6.5192 % 2002 (Insured) Geneva, IL A 3,070,000 G.O. Water Bonds 12/04/89 5 6.5831 % 6.73338 % 2007 Geneva, IL A 350,000 G.O. Water Bonds 12/04/89 Neg. 6.752409% 2008 Rock Falls, IL Aaa/AAA 9,630,000 G.O. Bonds* 12/04/89 Neg. 6.905816% 2010 Park District of (Insured) Oak Park, IL Aa 970,000 G.O. Bonds 12/05/89 13 5.87704 X 6.057 % 1993 Park District of Oak Park, IL Aa 260,000 G.O. Bonds* 12/05/89 3 6.302 % 6. 35220 % 1998 1989 SPEER FINANCIAL, INC. CLIENT SALES OF SECURITIES (Continued) Invest- 1989 � ment Type of Date of Net Interest Rate Last Issuer Rating�l' Issue Size Security o � Bidders Low Bid Him Maturity99 Bensenville, IL Al �bS;066 G.O. Bonds —T� 6. 19610 w �+T Winnetka, IL Aaa 960,000 G.O. Bonds 12/05/89 11 6.068534% 6.283427% 2000 Winnetka, IL NR 630,000 S.S.A. Bonds 12/05/89 3 6.5126 % 6.58559 % 2005 Waterloo, IA Aaa/AAA 1, 125,000 Sewer Rev. Bonds 12/07/89 4 6.97096 % 7.246 % 2003 (Insured) Waterloo, IA Aaa/AAA 870,000 Sewer Rev. Bonds 12/07/89 3 6. 8310 % 6.94297 % 2006 (Insured) Palatine, IL Aaa/AAA 21,862,790 G.O. Bonds 12/11/89 Neg. 7.2 % 2016 (Insured) Moline School Dist. Aaa/AAA 475,000 G.O. Bonds , Ser. A 12/12/89 Neg. 6.67973 % 2001 No. 40, IL (Insured) Moline School Dist , Aaa/AAA 2 ,785,000 G.O. Bonds . Ser. B 12/12/89 3 6. 5658 % 6.63293% 2001 (Insured) Elkhart Comm. Sch. , IN Al 1,800,000 G.O. Bonds 12/12/89 20 5.972060% 6.3391 % 1994 Peoria Public Bldg. Aaa/AAA 5,000,000 Rev. Bonds 12/14/89 8 6.022008% 6. 1851 % 1993 Comm. , IL (Insured) McHenry Co. Conserv. Al 3,000,000 G.O. Bonds 12/14/89 8 6.028 % 6.1606 % 1993 District, IL Arlington Heights, IL Aa 750,000 G.O. Bonds 12/18/89 3 6.2451 % 6.4935 % 1999 Arlington Heights, IL Aa 17400,000 G.O. Ref. Bonds 12/18/89 7 6.43989 % 6.5961 % 2001 Buffalo Grove, IL Al/AA- 4:000,000 G.O. Bonds 12/18/89 4 6.8758 % 6.8947 % 2010 Oak Brook Park Dist, IL Aa 2,300,000 G.O. Bonds 12/20/89 Neg. 6.333270% 2001 * Alternate Revenue Source Average — 7.14 bidders in competitive sales. TNe of Sale Number Amount egotiate . . . . . . . . . . . . . . . 20 $208,666,490 Competitive . . . . . . . . . . . . 59 235,195,000 Total Bond Sales 79 ,861,490 The above listing is a full and complete record of Speer Financial's sales of municipal securities for the time period shown. • 1990 SPEER FINANCIAL, INC. CLIENT SALES OF SECURITIES Invest- 1990 ment Type of Date of Net Interest Rate Last Issuer Rating Issue Size Security of Sale Bidders Low Bid High Bid Maturity Elkhart Community Schools, IN NR $ 5,000,000 Tax Ant. Warrants 01/09 4 5.99 % 1990 Mt. Prospect Park District, IL Al 2,650,000 G.O. Bonds* 01/17 7 6.2031 % 6.3315 % 1997 Streator, IL NR 265,000 Spec. Assess. Bds. 01/23 Neg. 9.00 % 1999 Central Lake Co. Jt. Aaa/AAA Action Wtr. Agcy,IL (Insured) 50,000,000 Water Rev. Bonds 01/24 Neg. 7.26 % 2020 Waverly-Shell Rock Comm. Sch. Dist. , IA Baal 1,200,000 G.O. Bonds 02/05 3 7.3311 % 7.5791 2009 Public Bldg. Comm. of Kane Co. , IL Aa 10,000,000 Rev. Bonds 02/15 8 6.644092% 7.021 % 2003 Des Moines Independent Comm. Sch. Dist. , IA Aa 5,000,000 G.O. Bonds 02/20 6 6.50759 % 6.736473% 2000 Green Bay, WI Aa/AA 7,965,000 G.O. Bonds 03/06 5 7.07673 % 7.16841 % 2010 Elkhart Community schools, IN Al 5,000,000 G.O. Bonds 03/13 8 6.740652% 6.8561 % 2002 Crystal Lake Park District, IL NR 975,000 G.O. Bonds 03/15 8 6.531139% 6.916870% 1995 Knox County, IL Al 2,800,000 G.O. Bonds* 03/21 6 7.0749 % 7.1894 % 2009 St. Charles Park District, IL NR 2,500,000 Inst. Con. Cert. 03/27 6 7.149807% 7.42044 % 2003 St. Charles Park District, IL NR 640,000 G.O. Bonds 03/27 4 6.4333 % 6.709685% 1992 Peoria School Dist. No. 150, IL NR 2,000,000 G.O. Bonds 04/02 Neg. 6.60 % Itasca Park Dist. , IL Aaa/AAA 2,500,000 G.O. Bonds* 04/09 6 7.2900 % 7.3986 % 2010 (Insured) Morris, IL Al 950,000 G.O. Bonds 04/09 7 6.942646% 7.2017 % 2004 Joliet Park Dist. , IL NR 900,000 G.O. Bonds 04/16 3 6.7015 % 6.9690 % 1993 Oak Park, IL Aa 3,800,000 G.O. Bonds 04/16 8 6.7545 % 6.89606 8 2002 Solid Waste Agency of Aaa/AAA 16,250,000 Contract Rev. Nts. 04/19 Neg. 6.759 % 1994 Northern Cook Co. , IL(Insured) Dubuque, IA Aa 1,965,000 G.O. Bonds 04/23 7 6.6736 % 6.9034 % 2000 Dubuque, IA Baal 3,000,000 Pkg. Rev. Bonds 04/23 3 7.586042% 7.81398 % 2010 Vernon Hills, IL Aa/AA 4,300,000 G.O. Bonds* 05/01 8 6.834342% 6.929361% 2000 Naperville, IL Aal 15,000,000 G.O. Bonds 05/15 7 6.850933% 6.952 % 2004 Rock Falls, IL A 1,875,000 G.O. Bonds* 05/21 6 7.189549% 7.3807 % 2009 * Alternate Revenue Source Average 6.00 bidders in competitive sales. Type of Sale . Number Amount d Negotiated . . . . . . . . . . . . . . . 4 $ 68 515,000 .d Competitive 20 78,020,000 0 Total Bond Sales . . . . . . . . . 24 $146,535,000 n. ri K The above listing is a full and complete record of Speer Financial's sales of municipal securities for the time period shown. W I r ADDENDUM DATED AUGUST 1 , 1990 TO OFFICIAL STATEMENT DATED JULY 11 , 1990 NEW ISSUE RATING: "Aa" (Moody' s Investors Service) $7 ,720 ,000 CITY OF ELGIN, ILLINOIS GENERAL OBLIGATION CORPORATE PURPOSE BONDS , SERIES 1990 AMOUNTS , MATURITIES AND INTEREST RATES Principal Due Interest Yield or Principal Due Interes t Yield or Amount Jan. 1 Rate Price Amount Jan. 1 Rate Price 100,000 . . . 1993 6.10, 6 10% 200,000 . . . 1999 6.500 6.500 270,000 . . . 1994 6. 15 6.15 200,000 . . . 2000 6.50 6.55 600,000 . . . 1995 6.20 6.20 1,000,000 . . . 2001 6.55 6.60 900,000 . . . 1996 6.25 6.25 1,000,000 . . . 2002 6.60 6.65 1,200,000 . . . 1997 6.30 6.30 1,000,000 . . . 2003 6.65 6.70 200,000 . . . 1998 6.40 6.40 1,050,000 . . . 2004 6.70 6.75 The Official Statement of the City dated July 11 , 1990 (the "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. Official Statement dated July 11, 1990; and 2. This Addendum dated August 1, 1990. 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 OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE THERE UNDER 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 Finance Officer, City of Elgin, 150 Dexter Court, Elgin, Illinois 60120, or from the Public Finance Consultants to the City: Established 1954 Page 1 of 3 Speer Financial, Inc. PUBLIC FINANCE CONSULTANTS 55 EAST MONROE STREET• CHICAGO, ILLINOIS 60603 Area 312-346-3700 ADDITIONAL INFORMATION References herein to laws, rules, regulations, resolutions, 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 Official Statement or the Final Official Statement, they will be furnished on request. 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. CORRECTION The Official Statement dated July 11, 1990, inadvertently overstated the amount of overlapping debt in the "Detail of Overlapping Bonded Debt" table on page 13 , and the "Statement of Indebtedness as of June 19, 1990" table on page 14. Both such tables are revised below. The only change is that the "total debt" amount for the Cook County Forest Preserve District is $13,300,000 rather than $113,300,000. Detail of Overlapping Bonded Debt (As of June 19, 1990) Applicable Total Debt Percent Amount Schools; Community Unit School District #46 . . . . . . . . . . . $ 38,200,000 44.776% $17,104,432 School District #300 . . . . . . . . . . . . . . . . . . . . . . . . . 6,190,000 7.981% 494,024 School District #301 . . .. . . . . . . .. . . . . . . . . . . . . 9,998,000 0.000%(3) 200 Elgin Community College District #509 . . . . . . . . 8,035,000 22.130% 1,778,146 Total Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,376,802 Other Than Schools: Cook County(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $654,815,000 0.220% $ 1,440,593 Cook County Forest Preserve District . . . . . . . . . 13,300,000 0.220% 29,260 Metropolitan Area Water Reclamation District . 688,085,000 0.021% 144,498 Kane County(2) . . . . . . . . . . . . . . . . . . . . . 16,325,000 15.342% 2,504,582 Kane County Forest Preserve District . . . . . . . . . 5,595,000 15.342% 858,385 Bartlett Park District . . . . . . . . . . . . . . . . . . . 910,000 0.054% 491 Elgin Special Service Area Number 4 . . . . . . . . . . 875,000 100.000% 875,000 Dundee Township Park District . . . . . . . . . . . . . . . . 670,000 10.737% 71,938 Total Other Than Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,924,747 Total Overlapping Bonded Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,301,549 Notes (1) Includes general obligation bonds outstanding , Cook County' s proportionate share of Public Building Commission of Chicago Revenue Bonds, notes issued under a demand note program, and interim financing notes. Does not include anticipation notes. (2) Includes principal amount of bonds issued for Kane County Public Building Commission, which are secured by lease rental payments which are a direct obligation of the County. (3) Less than 0.01%. Page 2 of 3 Statement of Indebtedness As of June 19, 1990 (Including the Bonds) Per Capita Percent of Amuint (Est. 1990 Estimated licable Pop 72,000 EAV True Value Equalized Assessed Valuation, 1989(1) ..... 569,954,997 $ 7,916.04 100.00% 33.33% Estimated True Value, 1989 ................ 1,709,864,991 23,748.12 300.OT% 100.OT. Direct Debt(2) .. ... ............... $ 45,405,000 630.63 7.97% 2.66% Less: Self Supporting Debt(3) ............ 22 625,000 314.24 3.977 1.3Zy Net Direct Debt .................. 22,780,000 316.39 4.00% 1.34% Overlapping Bonded Debt: Schools ................................. $ 19,376,802 $ 269.12 3.40% 1.13% All Other ... ..... .. 5,924,747 82.29 1.04% 0.34% . . ... ... ........ .. Total Net Direct &. Overlapping Bonded Debt 48,081,549 667.80 8.44. 2.817. Notes: (1) The 1989 Valuation for the portion of the City in Cook County is estimated to be identical to the 1988 valuation, and is thus underestimated. Excludes $740,954 of increm ntal tax increment district valuation. (2) The City is a home rule unit under the 1970 Illinois Constitution and, as such, has no general obligation debt limit, is not required to seek referendum approval for the issuance of bonds, and has no statutory tax rate limitations for any purpose. (3) See details in the Official Statemant. UNDERWRITING The Bonds were offered for sale by the City at a public, competitive sale on July 25, 1990. The best bid submitted at the sale was submitted by Trust Company Bank, Atlanta, Georgia (the "Underwriter") . The City awarded the contract for sale of the Bonds to the Underwriter at a price of $7,669,820. 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. INVESTMENT RATING The Bonds have been rated "Aa" by Moody's Investors Service. The City has supplied certain information and material concerning the Bonds to such rating service 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. AUTHORIZATION The Official Statement dated July 11, 1990 and this Addendum dated August 1, 1990, for the $7,720,000 General Obligation Corporate Purpose Bonds, Series 1990, have been prepared under authority of the City and have been authorized for distribution by the City. /s/ GEORGE VAN DE VOORDE /s/ DOLONNA MECHUM Mayor City Clerk City of Elgin, Illinois City of Elgin, Illinois Page 3 of 3