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HomeMy WebLinkAboutT15-85 Ordinance No. T 15-85 AN ORDINANCE ABATING A PORTION OF THE ANNUAL TAX FOR 1985 FOR CORPORATE PURPOSE BONDS, SERIES 1985 WHEREAS, the City of Elgin will have sufficient funds on hand to pay a portion of the tax levied by Ordinance S6-85, An Ordinance Authorizing the Issuance of $4,300,000 General Obligation Corporate Purpose Bonds, Series 1985, of the City of Elgin, Illinois; and WHEREAS, a portion of the levy of the tax for the year 1985 provided in the ordi- nance is unnecessary. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section I. That the County Clerks of Kane and Cook Counties, are hereby authorized and directed to abate a portion of the tax of $380,087.50 for the year 1985 as provided and levied in the ordinance providing for the issuance of $4,300,000 Corporate Purpose Bonds, Series 1985, passed November 25, 1985, a copy of which was filed with each of said county clerks; said tax shall be abated by reducing said sum $260,000 and extending a tax for the year 1985 in the amount of $120,087.50 against all taxable property situated in the City of Elgin, Kane and Cook Counties, Illinois. Section 2. That the City Clerk is authorized and directed to file a certified copy of this ordinance with the County Clerks of Kane and Cook Counties, Illinois, prior to December 31, 1985. Section 3. That this ordinance shall be in full force and effect from and after its passage in the manner provided by law. s/ Richard L. Verbic Richard L. Verbic, Mayor Presented: December 23, 1985 Passed: December 23 , 1985 Vote: Yeas 7 Nays 0 Recorded: Published: Attest: s/ Marie Yearman Marie Yearman, City Clerk r w• New Issue Investment Rating: Date of Sale: Monday, May 12, 1986 Moody's Investors Service Aa 12:00 Noon, C.D.T. (Outstanding Bonds - Review Requested) OFFICIAL STATEMENT Interest Exempt, In Opinion of Bond Counsel, From All Present Federal Income Taxes. With Respect To The Impact of H.R. 3838, Refer To Section Entitled "Proposed Federal Tax Legislation"Herein. $2,150,000 CITY OF ELGIN Kane and Cook Counties, Illinois General Obligation Corporate Purpose Bonds, Series 1986 Dated June 1, 1986 Due Serially January 1, 1992-2002 General Obligations Denomination: Multiples of$5,000 Fully Registered Principal and semiannual interest payable by The First Commercial Bank, Chicago,Illinois,(the"Bond Registrar'),the City's registration and paying agent. Interest on each bond shall be paid by check or draft of the Bond Registrar to the person in whose name such bond is registered at the close of business on the 15th day of the month next preceding the interest payment date. The principal of the bonds shall be payable in lawful money of the United States of America upon presentation at the corporate trust office of the Bond Registrar in Chicago, Illinois. Interest will be payable each January 1 and July 1, with the first interest payment due July 1, 1987. MATURITIES—January 1 r $ 75,000 1992 $250,000 1996 $250,000 1999 75,000 1993 250,000 1997 250,000 2000 100,000 1994 250,000 1998 250,000 2001 150,000 1995 250,000 2002 CALL PROVISION Bonds due January 1, 1997-2002, inclusive, are callable on any interest payment date on or after July 1, 1996. If less than all of the bonds are called,they shall be redeemed within any maturity by lot. Bonds called shall be paid at par and accrued interest. PURPOSE OF ISSUE The proceeds of these bonds will be used to finance the Tyler Creek detention basin as well as street and sewer improvements. LEGALITY AND SECURITY These bonds, in the opinion of bond counsel, Chapman and Cutler, Attorneys, Chicago, Illinois, will constitute valid and legally binding obligations of the City of Elgin,Illinois,payable as to principal and interest from ad valorem taxes levied against all taxable property therein, without limitation as to rate or amount. The City will furnish the approving opinion of said bond attorneys evidencing the legality of the bonds together with the transcript of proceedings on which said opinion is based, which opinion will state that interest on the bonds is exempt from present Federal Income Taxes under existing statutes, regulations and decisions, and a certificate of no-litigation then pending affecting the legality of the bonds or the right of the City to issue them. Interest on the bonds is not exempt from Illinois Income Tax. The information in this Statement has been compiled from sources believed to be reliable, but is not guaranteed. As far as any statements herein involve matters of opinion,whether or not so stated,they are intended as opinions and not representations of fact. This Official Statement has been prepared under the authority of the Council of the City of Elgin, Illinois. Additional copies may be secured from Mr. James H. Bolerjack,Jr., Finance Director, City Hall, Elgin, Illinois,or from the Financial Consultants to the City: Established 1954 Speer Financial, Inc. PUBLIC FINANCE CONSULTANTS 55 EAST MONROE STREET•CHICAGO, ILLINOIS 60603 Area 312-346-3700 • IStatement of Indebtedness - As of April 1, 1986 (Including These Bonds) Per Capita Percent of Percent of Amount (Est. Pop. Assessed Estimated Applicable 65,522) Valuation True Value Assessed Valuation, 1984(/) S 412,532,213 S 6,296.09 100.00% 33.33% Estimated True Value, 1984 51,237,596,639 518,888.26 300.00% 100.00% Direct Debt . S 33,800,000 S 515.85 8.19% 2.73% Less: Self-Supporting Debt(2) 22,125,000 337.67 _ 5.36% 1.79% Net Direct Debt S 11,675,000 S 178.18 2.83% 0.94% Overlapping Bonded Debt(3): Schools 6,354,411 96.98 1.54% 0.51% All Other 6,347,588 96.88 1.54% 0.51% Total Net Direct &Overlapping S 24,376,999 S 372.04 5.91% 1.96% Notesc(I) Latest rnluation available. (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 stanaory tax mte limitations for any purpose. (3) See detaiLs herein. REGISTRATION, TRANSFER AND EXCHANGE The City shall cause books (the "Bond Register") for the registration and for the transfer of the bonds to be kept at the corporate trust office of the Bond Registrar. The City will authorize to be prepared, 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 corporate trust office of the Bond Registrar, duly endorsed by, or accom- panied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or his attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered bond or bonds of the same maturity of authorized denominations, for a like aggregate principal amount. 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 in the denomination of$5,000 and authorized integral multiples thereof.The execution by the City of any fully registered bond shall constitute full and due authoriza- tion 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 person in whose name any bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid. No service charge shall be made for any 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. r 3 • CITY OF ELGIN, ILLINOIS Richard L. Verbic, Mayor City Council Edgar A. Anderson Marlene Shales Robert Gilliam George VanDeVoorde Susan Moylan Donald E. Waters James J. Cook James H. Bolerjack, Jr. City Manager Finance Director Marie Yearman Erwin W. Jentsch City Clerk Corporation Counsel GENERAL INFORMATION The City of Elgin is located approximately 38 miles northwest of downtown Chicago along the Fox River. Named an All-American City in 1956, Elgin is an industrial center surrounded by open, unincorporated area with room to grow. Elgin constitutes one of the major"satellite"cities in the metropolitan region, which means that it is large enough to maintain its own economic independence but is dependent upon its proximity to Chicago for some of its economic vitality. Elgin was incorporated under a special charter from the State of Illinois in 1854. It presently covers over 20 square miles. Government The City of Elgin operates under the Council-Manager form of government with a Mayor and six Council members elected at large for four-year overlapping terms. The administrative head of the City is the City Manager who is responsible for preparing an operating budget, subject to approval by the Council, and the daily operations of the City and its 426 full- time employees. The City of Elgin provides a Police Department of 96 full-time officers and a Fire Department which operates five fire stations and 82 full-time employees of whom 37 are certified paramedics. elk Transportation The City of Elgin is served by the Illinois Toll Road and Milwaukee Road commuter line, both of which provide access to Chicago. In addition, a network of four State highways and Federal Route 20 enhance Elgin's economic viability. Bus transportation for Elgin and neighboring communities is operated by the City with the net cost reimbursed by the Regional Transportation Authority. Education School District No. 46 provides the Elgin area with 31 elementary schools, 6 junior high schools, 3 senior high schools, a preschool building, and a special education facility. This district is one of the State's largest, and total enrollment in the Elgin portion for the 1985-86 school year was 12,980. There are also two colleges, Elgin Community College and Judson College, in Elgin. Community Life Elgin's Parks and Recreation Department oversees some 1,046 acres of parks which include a botanical garden, a zoo, a museum, a band shell, and numerous athletic facilities. The donated 1,200 seat Hemmens Auditorium with exhibition hall and meeting rooms is also operated by this department. Sherman and St. Joseph Hospitals, combined, house over 700 beds and are among the City's largest employers. SOCIOECONOMIC INFORMATION Population The City of Elgin has experienced slow,steady gains in population.The U.S. Census Bureau reported a population figure of 44,223 in 1950, 49,447 in 1960, 55,691 in 1970, and 63,668 in 1980. This is an average increase of nearly 13% every ten years,and an overall increase of 44% since 1950.The current population estimate is 65,522. Utilizing the current estimate of the Northeastern Illinois Planning Commission (NIPC), the City of Elgin projects that its population will grow over 40%, to 94,000, by the year 2000. r 4 Income As shown in the following table, Elgin's median family income exceeds that of the State of Illinois and Cook County. rk Median Family Income* 1970 1980 Elgin $11,555 $23,193 Cook County 11,642 23,081 Kane County 11,947 25,048 State of Illinois 10,959 22,748 *Source: U.S. Census Bureau. Per capita money income has also been on an upward trend. The 1983 estimate of per capita money income of$10,034 is 181% higher than the 1969 estimate of$3,565. The private publication, "Sales & Marketing Management", has developed a wealth indicator termed "effective buying in- come(EBI)",defined as personal income less personal tax and non-tax payments,which it considers a bulk measurement of market potential. As of December 31, 1984,the City of Elgin had a total EBI of$826,015,000 and a median household EBI of$29,332. Employment The 1980 Census compiled information for employed persons 16 years or older. Elgin had 30,837 such people. Following are the breakdowns of employment by industry and employment by occupation. Employment By Industry Number of Persons Percent Agricultural, Mining and Construction 1,818 5.9% Manufacturing 9,693 31.4% Transportation, Communication and Utilities 1,824 5.9% Wholesale Trade 1,244 4.0% Retail Trade 4,659 15.1% Financial, Insurance and Real Estate 1,715 5.6% Business Services 2,124 6.9% Professional Services 6,844 22.2% Public Administration 916 3.0% Total 30,837 100.0% • r Employment By Occupational Category Number of Persons Percent Executive, Administrative and Managerial 3,009 9.8% Professional Specialty 4,100 13.3% Technical 977 3.1% Sales 2,899 9.4% Administrative Support 5,464 17.7% Service 3,544 11.5% Farming I15 0.4% Precision Production 3,921 12.7% Laborers, Operators and Fabricators 6,808 22.1% Total 30,837 100.0% According to the 1985jgures of the Illinois Bureau of Employment Security, the City of Elgin had an unemployment rate of 8.6%. The State of Illinois recorded an unemployment rate of 9.0%, Cook County 8.6%, and Kane County 8.0%. Housing According to figures provided by the U.S.Census Bureau,median home values in Elgin have been increasing at a rate which compares favorably with Cook County, Kane County and the State of Illinois. Median Home Values Percent 1970 1980 Increase Elgin $20,700 $60,600 193% Cook County 24,400 62,100 155% Kane County 20,700 60,500 192% State of Illinois 19,800 52,800 167% The 1980 Census reports the number and value of owner occupied non-condominium units in Elgin as follows: 356 units were valued at less than $40,000 7,040 units were valued at $40,000 - $79,999 4,725 units were valued at greater than $79,999 5 �- Elgin's construction activity over the past eight years is shown by the following building permit data, averaging $32,525,186 annually. Of special note is the 1983-1985 period where permits have been issued at an annualized rate of approximately$40,000,000. Building permits for the first quarter of 1986 have surpassed those recorded for the same period in 1985. rik Table of Building Permits Single Family Apartments Come Calendar Number Number and Year of Units Value of Units Value Industrial All Other Total 1978 252 $6,529,350 284 $4,324,000 $11,688,868 $15,684,552 $38,226,770 1979 l62 5,783,386 24. 797,000 8,107,835 9,833,678 24,521,899 1980 47 2,209,800 222 5,269,900 22,219,230 14,441,247 44,140,177 1981 39 1,539,650 8 298,000 4,984,050 10,824,865 17,646,565 1982 50 1,968,180 10 170,000 2,526,830 8,984,510 13,649,520 1983 107 4,647,100 80 1,589,030 9,588,726 24,414,052 40,238,878 1984 182 8,350,495 46 1,859,000 5,208,628 24,315,264 39,733,387 1985 217 9,497,338 108 3,492,000 11,140,400 17,919,596 42,049,334 1986(3 mos.) 31 1,510,000 6 246,050 2,593,5(X) 3,878,227 8,229,727 Source: City of Elgin. BUSINESS AND INDUSTRY As a trade and service center,the City of Elgin provides the economic stimulus for the northeastern section of Kane County and for northwestern.Cook County.The City's regional significance encompasses the suburban communities that are located around Elgin: to the east, this includes Bartlett, Hanover Park and Streamwood; to the south, there is South Elgin and the St. Charles area; and to the north, there is Sleepy Hollow, West Dundee, East Dundee, and Carpentersville. The degree of economic activity taking place within the City is illustrated by the statistics compiled by the U. S. Department of Commerce. The following three tables were taken from the Census of Business in each category listed (latest data available). Census of Service Industries* r 1972-82 Percent 1972 1977 1982 Increase Number of Establishments 197 224 409 108% Number of Employees 1,618 1,845 2,855 76% Payroll ($1,000) $ 8,416 $14,183 $ 42,400 404% Receipts($1,000) $27,766 $43,116 $113,752 310% *Establishments with payroll. Census of Wholesale Trade 1972-82 Percent 1972 1977 1982 Increase Number of Establishments 87 83 108 24% Number of Employees 946 1,227 1,512 60% Payroll($1,000) $ 9,125 $ 17,756 $ 31,086 241% Sales($1,000) $145,214 $258,042 $521,538 259% Census of Manufactures 1972-82 Percent 1972 1977 1982 Increase Number of Establishments 108 153 137 27% Number of Employees(000) 6.6 9.2 7.4 12% Payroll (Million Dollars) $59.3 $124.4 $147.2 148% Value Added By Manufacture (Million Dollars)* $92.5 $205.0 $224.3 142% New Capital Expenditures (Million Dollars) S 8.2 $ 18.2 $ 18.8 129% • Value added by manufacture is considered to be the best value measure now available for compar- ing the relative economic importance of manufacturing among industries and geographic areas. r 6 Retail sales figures from the 1982 Census of Business show that the City of Elgin had 481 establishments with sales of ,. - $356,834,000 and an annual payroll of$43,752,000. The sales figures below are from a different source and are not comparable but show continued growth. Partial reports for 1985 indicate that the upward trend is continuing. City of Elgin Retailers' Occupation, Service Occupation and Use Tax (Calendar Years) 1982 Sales Tax Receipts(1) S 13,025,156 Sales(2) $377,453,929 1983 Sales Tax Receipts.....,, S 14,764,634 Sales $422,602,070 Percent Change 1982-1983 12.0% 1984 Sales Tax Receipts S 18,266,609 Sales $449,223,067 Percent Change 1983-1984 6.3% Percent Change 1982-1984 19.0% Notes: (1) Tax receipts shown are for the State of Illinois'share of the sales tax collected in the City and are 4%of sales for all years except 1984 which is 5%net of a 2%discount. The State tax on food and drugs VMS 2%in 1982 and 1983,and Nits eliminated January 1, 1984. (2) Figures are estimates of sales within the City and are not provided by the State of Illinois. Sales are estimated by dividing tax receipts by 0.98(to allow for the 2%discount)and dividing that number by 0.04;for food and drugs, the first quotient is divided by 0.02 in 1982 and 1983. Sales figures for 1984 are estimates based on the State's reports of municipal 1% collections. Once nearly a single industry city, Elgin now has 180 small to medium size manufacturers, according to the Elgin Area Economic Development Commission. The City has an active but cautious program for attracting new industries and aiding others in their expansion through the use of Industrial Revenue Bonds. The City also has seven industrial parks comprising 862 acres to encourage industry. The following is a list of some of the large manufacturing employers located in the City. Large Manufacturing Employers* Approximate Number of Name Product/Service Employees rAmerican Gage and Machine Company Electric Metal Working Equipment • 2,200 C.R. Industries(Chicago Rawhide) Oil Seals 1,600 American Can Company Metal Containers 500 Simpson Electric Company Measuring Instruments 500 Illinois Tool Works, Inc Screws 450 Woodruff and Edwards, Inc Machining 400 David C. Cook Publishing Company Periodicals and Supplies 375 Fox Valley Manufacturing Division Light Fixtures 300 Elgin Sweeper Company Street Sweepers 268 Daily Couner- News Offset Printing 210 Plastic Decorators, Inc. Plastic Printing 150 Knowles Electronics, Inc. Audio-Acoustical Equipment 130 R. R. Donnelley &Sons Company Computerized Photocomposition 120 Contec Controls Memory Based Process and Batching Controls 100 Shedd's Food Products Prepared Foods 100 Airtronics Division Surface Roughness Analyzers 100 Printpack, Inc Flexible Packaging Materials 100 Grayline Housewares Housewares 100 Elgin Diamond Products Diamond Grinding Wheels and Saws 100 •Source: 198.5 Illinois Manufacturers Directory. Health care provides a major source of employment in Elgin with Sherman Hospital employing approximately 1,500, Elgin Mental Health Center employing approximately 980, and St. Joseph Hospital employing approximately 850. PROPERTY TAX AND ASSESSMENT INFORMATION During the past five years, Elgin's total assessed valuation has increased $81,197,867, an overall increase of 24.51%. Trend of Assessed Valuation For Taxing Purposes(1) Levy Real Percent Percent in Percent in Year Property Railroad Total Growth Kane County Cook County Total 1979 $331,031,035 $303,311 $331,334,346 (0.68%) 82.92% 17.08% 100.00% 1980 370,644,469 358,385 371,002,854 11.97% 83.11% 16.89% 100.00% 1981 419,378,632 369,019 419,747,651 13.14% 82.48% 17.52% 100.00% 1982 429,438,992 426,360 429,865,352 2.41% 82.41% 17.59% 100.00% 1983(2) 415,327,916 235,777 415,563,693 (3.33%) 82.14% 17.86% 100.00% 1984(3) 412,281,231 250,982 412,532,213 (0.73%) 82.27% 17.73% 100.00% r Notes: (1) Source:County Clerks, Kane and Cook Counties. (2) For levy year 1983,assessments declined by 3.33%. This decrease is believed to be primarily attributable to the increase of the Homeowners Exemption to 53,500 from$3010. (3) For levy war 1984,assessments declined by 0.73%. This decrease is believed to be primarily attributable to the increase of the Senior Citizens Exemption to$2,000 from$1,500. 7 Personal Property Tax Replacement The Illinois General Assembly, pursuant to section 5(c) of Article IX of the 1970 Constitution of the State of Illinois, abol- ished all ad valorem, personal property taxes as of January 1, 1979,and, to replace the lost revenue,adopted a Personal Property Tax Replacement Income Tax. Such tax is measured by the net income, as defined, of every corporation, partnership and trust for each taxable year ending after June 30, 1979,and also by the invested capital, as defined, of certain public utilities. Collections r of said replacement taxes are deposited and held in a Personal Property Tax Replacement Fund for distribution to taxing districts. Prior to December 31, 1980, such fund was distributed quarterly to each taxing district and is now required to be distributed eight times per year. Monies received by any taxing district from the Personal Property Tax Replacement Fund shall be first applied toward pay- ment of the proportionate amount of debt service which was previously levied and collected from extensions against personal property on bonds outstanding as of December 31, 1978,and next applied toward payment of the proportionate share of the pen- sion or retirement obligations of the taxing district which were previously levied and collected from extensions against personal property, and any funds remaining may be used for any corporate purpose for which personal property taxes were used. In.1984 the City received the sum of$427,308 from the Illinois Department of Revenue as the City's share. For the year 1985, the City received distributions aggregating $453,387 from the Department of Revenue. As can be seen from the following table, total tax rates for the City have remained relatively stable over the past six years. The 1984 total tax rate in Cook County, where assessment procedures are different than in Kane County, was $94.76. Tax Rates Per $1,000 of Assessed Valuation 1979 1980 1981 1982 1983 1984 Corporate(/) $ 7.192 $ 8.068 $ 9.529 $10.407 $10.557 $10.859 Debt Service 2.586 1.847 1.087 1.441 2.456 2.788 Pensions(2) 4.920 4.589 4.467 3.389 2.964 3.466 Adjustrnents(3) - - (0.235) (0.204) 0.282 0.171 Total City(4) 514.698 514.504 $14.848 $15.033 $16.259 $17.284 County(5) 5.944 5.896 5.264 5.463 5.793 6.567 Township(6) 2.383 2.181 2.343 2.397 2.442 2.466 Schools. Incl. Comm. College 36.802 34.384 34.494 35.151 36.745 45.848 Elgin Sanitary District 0.765 0.420 0.347 0.356 0.439 0.689 Gail Borden Library District 1.841 2.379 1.860 1.908 2.470 1.847 Total in Kane County $62.433 $59.764 559.156 $60.308 $64.148 $74.701 Notes: (1) Includes Public Benefit Rate. (2) Includes Police, Fire and Illinois Municipal Retirement Fund pensions. (3) The tax rates are the rates actually extended by Kane County. The 1980 and 1981 tax rates were based upon an estimated distribution of burden and resulted in an overextension of approximately 1.44% in 1980 and 1.08%in 1981 for the City. Correction of these overexensions were made in the 1981 and 1982 tax rates. Corrections of undereaensions occurred in the 1983 and 1984 tax rates. (4) The City is a home rule unit under the 1970 Illinois Constitution and, as such, has no statutory tax rate limitation. r (5) Includes the tax rates for Kane County, Kane County Forest Preserve, and the Kane County Public Building Commission. (6) Includes the tax rates for Elgin Township and Elgin Township Road and Bridge. Tax Extensions and Collections (City Purposes Only) Levy Coll. Taxes Current Collections Total Collections Year Year Extended(1) Amount(2) Percent Amount Percent 1979 1980 $5,072,325 $4,850,937 95.64%(3) $5,104,861 100.64% 1980 1981 5,786,397 5,684,084 98.23% 5,713,889 98.75% 1981 1982 6,745,141 6,656,318 98.68% 6,732,420 99.81% 1982 1983 6,854,004 6,781,071 98.94% 6,865,570 100.17% 1983 1984 7,001,668 6,945,672 99.20% 6,991,370 99.85% 1984 1985 7,386,180 7,315,248 99.09% 7,450,740 100.87% Notes: (1) Taxes extended have been adjusted for abatements in Kane C.ounn•only. (2) Current collections in both adjusted and Cook Counties include taxes paid under protest. (3) Tax collections in this year were significantly reduced due to personal property tax collections. The following is a list of ten of the largest taxpayers located within the City's tax base. These values are for real property for 1984. The diversity of the City's principal taxpayers is evidenced by the breakdown of service:4 residential, 3 manufacturing, and 3 service industries. Principal Taxpayers(1) 1984 Equalized Assessed Name Product/Service Valuation(2) American Can Company Metal Containers $ 4,349,563 Burnham Mill(3) Apartment Complex 4,007,231 Owners Services, Inc. Apartment Complex/Land 3,323,787 Elgin Sweeper Company Industrial Cleaning Systems/Street Sweepers 2,749,038 De Anza Willow Lakes Retirement Village 2,165,581 Opus Corporation Commercial Property 2,140,237 Andona Property Investors Visa Card Service Center 2,077,302 Elgin Enterprises Apartment Complex 1,614,012 Connecticut Mutual Life Insurance Co. Commercial Property 1,573,260 C.R. Industries(Chicago Rawhide) Oil Seals, Bushings, Gaskets 1,549,897 Total $25,549,908 Percent of 1984 Assessed Valuation of$412,532.213 6.19% r Notes: (1) Source: City of Elgin. (2) Latest information available. (3) Contains parcels in three separate trusts. 8 -'-FINANCIAL INFORMATION Basis of Accounting The City of Elgin reports all governmental funds and the Expendable Trust Fund using the modified accrual basis of account- ing. Under this method, revenues are recognized when they become measurable and available, as net current assets and expen- ditures are generally recognized when the related fund liability is incurred. All proprietary funds and Nonexpendable Trust and Pension Trust Funds are accounted for using the accrual basis of account- ing. Under this method, revenues are recognized when they are earned, and expenses are recognized when they are incurred. The financial statements of the City are audited annually by certified public accountants. The following reports are summaries and do not purport to be the complete audits, copies of which are available upon request. General Fund Balance Sheet Audited Calendar Year Unaudited 1980 1981 1982 1983 1984 1985 Assets: Cash and investments $1,705,333 $1,767,657 $1,581,350 $2,614,330 $3,307,706 $ 4,838,847 Taxes Receivable 3,230,622. 4,081,563 4,531,038 4,420,902 4,694,178 4,858,682 Due From State of Illinois 1,169,170 479,100 493,288 563,960 528,219 547,995 Due From Other Governmental Agencies 47,748 208,655 99,198 48,685 51,443 38,742 Due From Other Funds 301,659 558,974 635,064 262,421 438,700 401,258 All Other 781.749 916,219 719,199 711,923 622,715 559,259 Total Assets $7,236,281 $8,012,159 $8,059,137 $8,622,221 $9,642,961 $11,244,783 Liabilities and Municipal Equity: Accounts Payable and Accrued Expenses $ 746,397 $ 366,086 $ 353,267 $ 325,299 $ 577,293 $ 657,677 Contracts Payable 61,251 379,697 246,610 59,413 - - Deferred Income(1) - - 4,698,641 4,589,027 4,847,203 5,906,781 All Other Liabilities 388,960 550,339 99,925 170,474 536,697 904,872 Municipal Equity- Fund Balances 6,039,673 6,716,037 2,660,694(2) 3,478,008 3,681,768 3,775,453 rik Total Liabilities and Municipal Equity $7,236,281 $8,012,159 58,059,137 $8,622,221 $9,642,961 $11,244,783 Notes: (I) Amounts are deferred income due to change in the recognition of revenues received from property taxes. (See section entitled"Property Taxes - Revenue Recognition") (2) The fund balance at January 1, 1982, was decreased by 54,083,920 in order to accommodate a change in the recognition of revenues received from property taxes. (See section entitled"Property Taxes - Revenue Recognition") Property Taxes-Revenue Recognition During 1982,a change promulgated by the National Council on Governmental Accounting in accounting principle was adopted affecting the recognition of property tax revenue. Prior to the change, property taxes were accrued as revenue at the date of the levy, but, effective in 1982, revenue recognition is being deferred until the fiscal year following the date of the levy. This change recognizes the extraordinarily long period of time between the levy date and the receipt of tax distributions from the County Collector. Because of this delay, property taxes are not readily available to finance City operations in the year of the levy and, therefore, will be deferred until the time of receipt from the County Collector. Since the recognition of expenditures in the Debt Service Fund and the Public Benefit Fund is matched with the related property tax levy,the method for recognizing these expen- ditures was also changed in 1982 to correspond to the property tax revenue recognized. The National Council recommended that this change be adopted for fiscal years beginning after September 30, 1981. The effect of this change was a restatement of fund equity as of December 31, 1981, for the following fund groups: Fund Balance 12/31/81 As Fund Balance Previously Prior Period 12/31/81 As Reported Adjustment Restated General Fund $ 6,716,037 S(4,083,920) S 2,632,117 Special Revenue Funds 2,452,964 (763,355) 1,689,609 Debt Service Fund 202,544 303,495 506,039 Pension Trust Funds 13,314,014 (1,499,700) 11,814,314 Expendable Trust Fund 493,873 139,300 633,173 The change had no cash effect. r 9 General Fund Revenues and Expenditures Calendar Years Audited Unaudited Budget 1980 1981 1982 1983(1) 1984 1985 _ 1986 Revenues: Tax Levies (Net) $ 3,100,000 $ 4,083,920 $ 4,084,386 $ 4,531,963 S 4,371,842 $ 4,621,467 $ 4,995,000 Sales Tax 3,491,383 3,501,219 3,475,732 3,928,224 4,341,720 4,512,496 4,700,000 Other Governmental Agencies 386,566 474,762 243,800 308,307 335,748 343,317 311,025 State Income Tax 1,062,993 1,140,000 1,212,657 1,322,347 1,472,348 1,389,408 1,300,000 Revenues From Other Funds 2,379,262 2,460,873 2,546,813 2,096,994 1,624,650 1,813,250 1,819,590 Investment Income 179,613 213,035 290,402 207,292 298,256 400,368 319,880 Licenses, Permits and Fines 830,285 818,210 776,918 849,541 918,513 955,180 967,100 All Other 1,129,799 1,406,106 1,254,102 1,252,015 1,858,909 1,988,309 4,573,910(6) Total Revenues $12,559,901 $14,098,125 $13,884,810 $14,496,683 $15,221,986 $16,023,795 $18,986,505 Expenditures: Police Department S 3,541,985 $ 3,826,661 $ 4,172,432 $ 4,548,445 $ 4,689,493 S 5.032,988 $ 5,643,715 Fire Department 2,190,883 2,438,418 2,719,694 2,716,043 2,883,055 2,907,617 4,143,375 Streets 714,114 1,124,778 1,547,977 772,481 (2) 769,087 798,109 885,365 Public Property and Recreation 1,597,849 1,243,126 1,296,313 1,158,410 1,078,827 1,163,926 1,510,740 Sanitation 634,628 668,210 673,663 736,353 787,852 816,795 894,710 Other Departments 3,507,337 3,479,005 3,44.6,154 3,747,637 4,740,587 5,210,675 5,733,475 Total Expenditures $12,186,796 $12,780,198 $13,856,233 $13,679,369 $14,948,901 $15,930,110 $18,811,380 Excess(Deficiency)of Revenues Over(Under) Expenditures S 373,105 5 1,317,927 $ 28,577 5 817,314 $ 273,085 $ 93,685 S 175,125 Fund Balance, Beginning of Year 5,666,568 6,039,673 6,716,037 2,660,694 3,478,008 3,681,768 Prior Years'Adjustment - (641,563)(3) (4,083.920)(4) - (69,325)(5) - Fund Balance, End of Year $ 6,039,673 S 6,716,037 $ 2,660,694 S 3,478,008 $ 3,681,768 $ 3,775,453 Notes: fund. (1) Departmental expenditures include transfers to risk management d. r (2) Decrease due to street improvements paid from capital improvement funds. (3) The fund balance at January 1, 1981, was decreased by$641,563 to accommodate a change in the recognition of revenues received from sales taxes. Prior to 1981,revenue for the City's portion of the Illinois State Sales Tax had been accrued based upon the month of collection by the retailer. This practice resulted in an accrual of three months of sales tax revenue. During 1981,sales tax revenue was recognized in the month of allocation by the State of Illinois resulting in a one month accrual of revenue. (4) The fund balance at January 1, 1982, was decreased in order to accommodate a change in the recognition of revenues received from property taxes. (See section entitled"Properly Taxes - Revenue Recognition') (5) Prior period adjustment to reflect change in accounting for compensated balances. (6) Includes nearly$2,000,000 of unencumbered cash. elk 10 ALL DS . • Combined Summary Statement of Revenues, expenditures and Changes in Fund Balances . Governmental Fund Types Fiduciary Fund Types Proprietary Fund Types Non- eSpecial Pension General Revenue(4) Service Projects Assessment Trust Tut(14) Trust prix(l5) Servlce(19) Total Balance 12/31/79 $ 5,666,568 $2,491,478 $ 233,899 $ 594,864 $ 490,725 $631,787 $400,000 $ 8,984,720 $17,754,857 $ 206,923 $37,455,821 Revenues $12,559,901 $4,095,218 $1,131,290 S 98,535 $ 105,175 $ 71,826 S 45,0% $ 2,463,304 S 7,509,629 $1,044,711 $29,124,685 Expenditures 12,186,796 3,800,295 1,018,010 203,219 58,714 144,400 45,096 506,279 5,570,797 1,032,711 24,566,317 Excess (Deficiency) $ 373,105 $ 294,923 $ 113,280 $ (104,684) S 46,461 5(72,574) S -0- S 1,957,025 S 1,938,832 $ 12,000 S 4,558,368 Adjustments -0- -0- -0- -0- -0- -0- -0- -0- 497,821 (16) -0- 497,821 Balance 12/31/80 $ 6,039,673 $2,786,401 $ 347,179 $ 490,180 $ 537,186 $559,213 $400,000 $10,941,745 $20,191,510 $ 218,923 $42,512,010 Revenues $14,098,125 $4,800,974 S 795,255 $ 123,867 S 2,093,910(9) $ 73.960 $ 48,562 $ 2,971,868 $ 7,372,476 $1,240,210 S33,619.207 Expenditures 12,780,198 5,072,963 939,890 196,759 3,243,082(10) 139,300 23,562 599,599 5,103,694 1,234,546 29.333,593 Excess (Deficiency) S 1,317,927 $ (271,989) $ (144,635) $ (72,892) $(1,149,172) 5(65,340) S 25,000 $ 2,372,269 $ 2,268,782 S 5,664 S 4,285,614 Adjustments (641,563)2) (61,44815) -0- -0- (112,132)(11) -0- -0- (37,334)(/7) -0- (852,477) Balance 12/31/81... $ 6,716,037 $2,452,964 $ 202,544 $ 417,288 $ (724,118) $493,873 $425,000 $13,314,014 $22,422,958 $ 224,587 $45,945,147 Revenues $13,884,810 $4,381,894 $ 758,399 $3,715,423(7) 5 238,940 $ 72,390 $ 51,668 S 3,377,429 5 7,130,208 $1,468,435 $35.079,596 Expenditures 13,856,233 4,113,607 934,840 2,206,067 321,390 -0- 26,668 668,339 5,391,132 1,441,392 28,959,668 Excess (Deficiency) $ 28,577 5 268,287 S (176,441) $1,509,356 $ (82,450) 5 72,390 S 25,000 $ 2,709,090 S 1,739,076 S 27,043 $ 6.119,928 Adjustments(/) (4,083,920) (763,355) 303,495 -0- -0- -0- -0- (1,499,700) -0- -0- (6,043,480) Balance 12/31/82 $ 2,660,694 $1,957,896 $ 329,598 $1,926,644 $ (806,568)02) $566,263 $450,000 $14,523,404 $24,162,034 $ 251,630 $46,021,595 Revenues $14,496,683 $4,834,700 $1,094,279 $3,353,636 $ 868,922 S 56,012 5 43,702 $ 3,358,023 S 6,378,919, $2,236,776 536,721,652 Expenditures 13,679,369 4,402,446 1,112,175 2,853,123 393,357 133,800 18,702 719,164 6,489,753 2,189,374 31,991.263 Excess(Deficiency) S 817,314 S 432,254 S (17,896) $ 500,513 S 475,565 5(77,788) S 25,000 $ 2,638,859 S (110,834) $ 47,402 S 4,730,389 Adjustments -0- -0- -0- -0- (1,822,097)(13) -0- -0- -0- (103,760) (15,903) (1,941,760) Balance 12/31/83 $ 3,478,008 $2,390,150 $ 311,702 $2,427,157 $(2,153,100) $488,475 $475,000 $17,162,263 $23,947,440 $ 283,129 $48,810,224 Revenues $15,221,986 54,614,439 $1,984,634 $4,253,816 S 679,786 5 50,715 $ 48,744 S 3,301,990 S 7,456,058 $2,543,976 $40,156,144 -- Expenditures 14,948,901 4,574,102 1,454,245 5,165,862 190,474 128,300 -0- 805,945 8,157,337 2,617,234 38,042,400 Excess (Deficiency) 5 273,085 $ 40,337 $ 530,389 S (912,046) $ 489,312 5(77,585) S 48,744 $ 2,496,045 S (701,279) S (73,258) S 2,113.744 Adjustments (69,32513) (74,09616) -0- 74,096(8) -0- -0- -0- 2,729,410(18) (124,889)(20) 2.535,196 Balance 12/31/84 $ 3,681,768 $2,356,391 $ 842,091 $1,589,207 $(1,663,788) $410,890 $523,744 $19,658,308 $25,975,571 $ 84,982 $53,459,164 Revenues $15,074,893 54,632,310 $1,738,142 57,589,515 S 661,830 S 43,348 5 51,066 5 3,510,129 5 8,431,265 $2,518,807 $44,251,305 Expenditures 14,981,208 4,360,119 2,075,870 3,635,473 157,577 122,800 -0- 878,840 8,080,218 2,324,526 36.616,631 Excess (Deficiency) S 93,685 S 272,191 5 (337,728) $3,954,042 S 504,253 5(79,452) $ 51,066 $ 2,631,289 S 351,047 S 194,281 $ 7.634,674 Adjustments -0- -0- -0- -0- -0- -0- -0- -0- (66,002) -0- (66.002) Balance 12/31/85 $331,438 $574,810 $22,289,597 $26,260,616 $ 279,263 $61,027,836 3,775,453 582 (Unaudited) $ _ $2,628, _ $ 504,363 $5,543,249 $(1,159,535) v __ Notes: (I) The fund balances of the General Fund,Special Revenue Funds,Debt Service Fund,Pension (1!)Decrease in fund equity in order to accommodate a change in revenue recognition. Prior to Trust Funds and Expendable Trust Funds at January 1, 1982, were adjusted in order to ac- 1981,assessment receivables had been recognized in the year that the receivable was established. commodate a change in the recognition of revenues received from property taxes. (See section During 1981,revenue for future assessment receivables,which was in excess of project expen- entitled"Property Taxes - Revenue Recognition') ditures, was deferred until the receivable becomes current. (2) The fund balance at January 1, 1981, was decreased in order to accommodate a change in (12)The fund deficit was largely due to a delay in the construction of a project due to litigation the recognition of revenues received from sales taxes. Prior to 198/, revenue for the City's of the assessment district The original assessment was approved in 1977,but subsequent litigation portion of the Illinois State Sales Tax had been accrued based upon the month of collection delayed the awarding of the construction contract until 1981. by the retailer. This practice resulted in an accrual of three months of sales tax revenue.Dur- (13)Prior period adjustment to reflect NCGA guidelines resulted in a negative fund balance. ing 1981,sales tax revenue was recognized in the month of allocation by the State of Illinois Receivables of$2,791,443 are deferred until they become measurable and available,while prin- resulting in a one month accrual of revenue. cipal of debt is recognized immediately. (3) Prior period adjustment for compensated absences. (14) Working Cash Fund. (4) Sppe�cial Revenue includes the following funds:Public Benefit;Road and Bridge;CEI'A Grant; (15)Enterprise includes the following Water;Motor Vehicle Parking System;General Cemetery; Community Development Grant;Spring Street Parking District;River Bluff Street lighting District; Cemetery Sinking; Perpetual Care, Golf Course and Public Transportation. Federal Revenue Sharing; Illinois Municipal Retirement; Motor Fuel Tax; and Downtown (16)Contributions from outside sources. Redevelopment. (17)includes a decrease of$79.913 for a residual equity transfer and an increase of$42.579 from (5) Residual equity transfer. contributions from outside sources. (6) Reflects adjustment fiend balance between the Special Revenue Fund and Capital Projects Fund. (18)Includes increases to contributed capital of$2,711,220.plus an adjustment of$18,190. (7) Includes proceeds from the sale of$2,950,000 General Obligation Bonds. (19)Internal Service includes the Municipal Garage Funds and the Risk Management Fund. (8) Reflects ad. offend balance between the Special Revenue Fund and Capital Projects Fund. (20)Prior period adjustment to correct for losses incurred but not reported. (9) Includes 1,924,679 for authorized special assessments to create Special Assessment Area I. (10)includes $3,003,275 for construction costs for Special Assessment Area 1. Pensions The City of Elgin participates in three benefit pension plans which are funded through both employee and employer contribu- tions. All administrative costs of the plans are borne by the General Fund with other costs accumulated in the separate funds listed below. The City's contributions to each plan are funded through annual tax levies and personal property replacement tax rallocations. Illinois Municipal Retirement Fund All employees,other than policemen, firemen, and those working fewer than 600 hours per year, are covered by the Illinois Municipal Retirement Fund(IMRF).The City's fiscal 1985 contribution to the IMRF was$956,932. The IMRF actuary estimates that as of December 31, 1985, (the date of the latest computation), the present value of the City's portion of accumulated IMRF benefits was $9,665,469. (The vested and non-vested portions of these liabilities are not available.) The net assets accumulated by the City available for such benefits amounted to$2,537,663 on the same date. The normal cost portion of the City's contribu- tion rate is expected to provide $1,712,632 of future contribution and the prior service portion of the rate is expected to provide $5,415,172. Police and Firemen's Pension Funds All of the City's policemen are covered by the Police Pension Fund and its firemen are covered by the Firemen's Pension Fund. The City's fiscal 1984 contributions were$266,276 and$568,659 for the Police and Firemen's Pension Funds, respectively. The total actuarial requirements at December 31, 1984, (the date of the latest computation) amounted !o $15,616,152 for the Police Pension Fund and$14,475,665 for the Firemen's Pension Fund as determined by the Illinois Department of Insurance. Police Firemen's Pension Pension Fund Fund 1 Net Present Assets $ 9,641,896 $10,016,411 Unfunded Accrued Liability 5,974,256 4,459,254 $15,616,152 $14,475,665 The vested and non-vested portions of the above amounts are not available. DEBT INFORMATION The City of Elgin's general obligation debt will equal $33,800,000, including this issue. A large portion of this indebtedness, r $22,125,000,is expected to be retired from sources other than City-wide general taxes. Half of the tax supported debt is intended to be retired within 5 years and over half of all debt within 8 years. General Obligation Bond Retirement Schedule (000) (From April 1, 1986, Including Current Issue) Projected For Abatement Fiscal Paid Solely From From Various Sources Years Property Taxes Water Fund Combined Total All Principal(2) Ending Annual Cumulative TIF and Other Cumulative Annual Cumulative 12/31 Amount Percent District Sources(/) Percent Amount Percent 1987 $ 1,215 10.4% $ - $ 825 3.7% $ 2,040 6.0% 1988 1,225 20.9% - 925 7.9% 2,150 12.4% 1989 1,400 32.9% - 1,100 12.9% 2,500 19.8% 1990 950 41.0% - 1,000 17.4% 1,950 25.6% 1991 1,050 50.0% - 1,150 22.6% 2,200 32.1% 1992 950 58.2% 50 1,200 28.2% 2,200 38.6% 1993 925 66.1% 50 1,325 34.5% 2,300 45.4% 1994 700 72.1% 75 1,200 40.2% 1,975 51.2% 1995 460 76.0% 100 1,300 46.6% 1,860 56.7% 1996 400 79.4% 125 1,400 53.4% 1,925 62.4% 1997 400 82.9% 150 1,500 60.9% 2,050 68.5% 1998 400 86.3% 200 1,600 69.0% 2,200 75.0% 1999 450 90.1% . 275 1,600 77.5% 2,325 81.9% 2000 450 94.0% 350 1,700 86.8% 2,500 89.3% 2001 450 97.9% 450 - 88.8% 900 91.9% 2002 250 100.0% 525 - 91.2% 775 94.2% 2003 - 600 - 93.9% 600 96.0% 2004 - 650 - 96.8% 650 97.9% 2005 - 700 - 100.0% 700 100.0% $11,675 $4,300 $17,825 $33,800 Notes: (l) Comprised of the /975 Corporate Purpose Bonds with taxes being abated from Special Assessments;a portion of the 1976 Corporate Purpose Bonds with taxes being abated from the earnings of the Water Fund;$16,800,000 Water Bonds,Series 1980 with taxes being abated from the earnings of the Water Fund;and a portion of the 1982 Corporate Purpose Bonds with taxes being abated by lease payments. (2) Does not include various special assessment bonds,public benefit debt,a 1985 computer installment contract,and a 19ffi installment contract. r 12 • Detail of Overlapping Bonded Debt �- (As of April 1, 1986) Applicable Total Debt Percent Amount r Schools: Community Unit School District#46 $ 15,050,000 39.64% S 5,965,820 School District#300 7,145,000 4.53% 323,669 Community College District#509 315,000 20.61% 64,922 Total Schools S 6,354,411 Other Than Schools: Cook County(l) 5486,200,000 0.21% S 1,021,020 Cook County Forest Preserve District 26,600,000 0.21% 55,860 Metropolitan Sanitary District 663,750,000 0.23% 1,526,625 Kane County(2) 4,633,000 16.93% 784,367 Kane County Forest Preserve District 5,935,000 16.93% 1,004,796 Elgin Sanitary District 600,000 75.82% 454,920 Special Service Area Number 4 1,500,000 100.00% 1,500,000 Total Other Than Schools S 6,347,588 Total Overlapping Bonded Debt $12,701,999 Notes: (I) 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 tax 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. PROPOSED FEDERAL TAX LEGISLATION On December 17, 1985, the United States House of Representatives adopted H.R. 3838 (in the form so adopted, the"Tax Bill"). The Tax Bill, which has been referred to the Senate Finance Committee, provides that it is effective with respect to state and local government obligations, such as the Bonds, issued after December 31, 1985. The Tax Bill contains a number of re- quirements and restrictions which would apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, timely and proper use of proceeds and certain other matters. Failure to comply with certain of such provisions would cause interest on the Bonds to become subject to federal income taxation retroactive to the date of issuance of the Bonds. The issuer has covenanted to comply with the Tax Bill. Bond Counsel is of the opinion that, assuming such com- pliance, interest on the Bonds would be exempt from federal income taxation under the Tax Bill if it becomes law. In addition, for taxable years beginning in 1988, the Tax Bill, if it becomes law, would subject property and casualty in- surance companies to a minimum tax determined by including (among other things) interest such as interest on the Bonds in the Ow relevant income computation. L x. i: on s iY has designated the note&as "qualified tax-exempt obligations" as Section 802(e)(3) of H.R. 3838, in the form passed by the House of Representatives on December 17, 1985. The oes not intend to issue more than $10,000,000 in aggregate principal amount of its "qualified tax-exempt obligations"during the current calendar year. The metes &,,A will be"qualified tax-exempt obligations"only if purchased by "financial institutions"(as such term is defined in Section 802(a) of H.R. 3838)which are authorized to do business as a financial institution in the State of Purchasers should consult with their tax counsel to determine whether they qualify as "financial institutions" under H.R. 3838. There can be no assurance as to whether the Tax Bill will be enacted into law or, if some variation thereof is enacted, what its provisions, including its effective date, will be. AUTHORIZATION • The foregoing Official Statement is authorized for distribution to prospective purchasers and underwriters of the offered $2,150,000 General Obligation Corporate Purpose Bonds,Series 1986.All statements,information and statistics herein are believed to be correct but are not guaranteed by the consultants or by the City and all expressions of opinion, whether or not so stated, are intended only as such. The City has supplied certain information and material to the rating service shown on the cover page as part of its application for an investment rating on these bonds. A rating,if assigned,is subject to revision,suspension or withdrawal at any time by the rating agency. 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. CERTIFICATION We have examined the attached Official Statement dated April 21, 1986, for the$2,150,000 General Obligation Corporate Purpose Bonds, Series 1986,believe it to be true and correct and will provide to the purchaser of the bonds at the time of delivery a certificate confirming to the purchaser that to the best of our knowledge and belief the information in the Official Statement was at the time of acceptance of the bid for the bonds, and including any addenda thereto, was at the time of delivery true and correct in all material respects and does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein,or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. /s/ JAMES H. BOLERJACK, JR. /s/ RICHARD L. VERBIC Finance Director Mayor City of Elgin, Illinois City of Elgin, Illinois April 21, 1986 13 OFFICIAL BID FORM City of Elgin May 12, 1986 City Hall Elgin, Illinois Council Members: For your $2,150,000 City of Elgin, Illinois, General Obligation Corporate Purpose Bonds, Series 1986, described in the annexed Official Notice of Sale,which is expressly made a part hereof,we will pay you par plus a premium of$ plus accrued interest from June 1, 1986, to the date of delivery. The bonds are to bear interest at the following respective rates (each a multiple of 1/8 or 1/10 of 1%) for bonds of each designated maturity. MATURITIES — January 1 $ 75,000 1992 % $250,000 1996 % $250,000 1999 75,000 1993 % 250,000 1997 % 250,000 2000 100,000 1994 % 250,000 1998 % 250,000 2001 % 150,000 1995 % 250,000 2002 % Said bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Chapman and Cutler, Attorneys, Chicago, Illinois. You are to pay for the legal opinion and for printing the bonds. Unless we notify you to the contrary within 24 hours, CUSIP numbers are to be applied for and printed on the bonds at our expense, and we agree to accept the bonds at delivery with the CUSIP numbers as printed. As evidence of good faith, we enclose herewith a check in the sum of$43,000 in accordance with your Official Notice of Sale. A list of the members of our account on whose behalf this bid is made is appended hereto. Description of Check: Respectfully submitted, Amount: $43,000 Name Account Manager Name of Bank By Address r City State City State Certified (Cashier's) Check No. NOT A PART OF BID Dated Our calculation of net interest cost from above is: (For Use By City Only) Total Interest $ Less Premium $ The above check was returned and received for the above named Account Manager Net Interest Cost $ 'By Net Interest Rate The foregoing bid was accepted and bonds sold by resolution of the Council of the City of Elgin, Illinois, May 12, 1986, and receipt is hereby acknowledged of the good faith check which is being held in accordance with the terms of the Official Notice of Sale. ATTEST: CITY OF ELGIN, ILLINOIS City Clerk City Manager TOTAL BOND YEARS: 24,979.166 AVERAGE LIFE: 11.618 Years 15 4' • O1-±ICIAL NOTICE OF SALE $2,150,000 • CITY OF ELGIN Kane and Cook Counties, Illinois General Obligation Corporate Purpose Bonds, Series 1986 The City of Elgin, Illinois, will receive sealed bids for its General Obligation Corporate Purpose Bonds, Series 1986, on an all or none basis, at 55 East Monroe Street, Suite 4510, Chicago, Illinois (mailed bids should be sent c/o Speer Financial, Inc.), until 12:00 Noon, C.D.T., May 12, 1986, at which time bids will be publicly opened and read. Award will be made, or all bids rejected, at a meeting of the Council in Elgin on that date. The bonds are general obligations of the City, payable as to both principal and interest from ad valorem taxes to be levied on all taxable property within the City, without limitation as to rate or amount. The bonds will be dated June 1, 1986, will be in fully registered form, will be in the denomination of$5,000 and authorized integral multiples thereof, and will mature serially on January 1 of each of the years 1992-2002, inclusive, as follows: MATURITIES — January 1 $ 75,000 1992 $250,000 1996 $250,000 1999 75,000 1993 250,000 1997 250,000 2000 100,000 1994 250,000 1998 250,000 2001 150,000 1995 250,000 2002 Bonds due January 1, 1997-2002, inclusive, are callable on any interest payment date on or after July 1, 1996. If less than all of the bonds are called, they shall be redeemed within any maturity by lot.Bonds called shall be paid at par and accrued interest. The bonds will be payable at The First Commercial Bank, Chicago, Illinois (the "Bond Registrar"). Interest on each bond will be payable on January 1 and July 1 of each year commencing July 1, 1987, by check or draft of the Bond Registrar mailed to the person in whose name such bond is registered. The bonds will be awarded to the best bidder determined upon the basis of the lowest total interest at the rate or rates designated in said bid from June 1, 1986,to the respective maturity dates and deducting therefrom the premium bid. Each bidder shall name a rate or rates of interest which the bonds are to bear, and each rate must be a multiple of one-eighth or one-tenth of one percent (1/8 or 1/10 of 1%), and no more than one rate for a single maturity shall be specified. All rates for the maturities of 1997-2002 shall be in non-descending order.The difference between the lowest rate bid and the highest rate bid may not exceed two percent (2%). Bids must be for all or none of the bonds, must be for not less than par plus accrued interest to date of delivery and must be made upon the Official Bid Form and delivered in a sealed envelope marked"Bid for Bonds"at the time set out above. The City reserves the right to reject any or all bids and to determine the best bid in its sole discretion and to waive any informality in any bid. Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust company for $43,000 payable to the City Treasurer of the City of Elgin, Illinois, as evidence of good faith of the bidder. The check of the successful bidder will be retained uncashed by the City pending delivery of the bonds. All other checks will be returned promptly. No interest will be allowed on any checks. Should the successful bidder fail to take up and pay for the bonds when tendered in accordance with this Notice,his check shall be cashed by the City and the proceeds retained as full and liquidated damages to the City caused by failure of the bidder to carry out his offer of purchase. Otherwise, his check will be applied on the purchase price of the bonds when delivered, or returned uncashed at delivery. The printed bonds, in standard 8-inch by 12-inch form, will be delivered to the successful bidder against full payment in immediately available funds in Chicago, Illinois, as soon as they can be printed and executed, which is expected to be during the'week of June 9, 1986. Should delivery be delayed beyond 60 days from the date of sale for any reason except failure of performance of the successful bidder,then the bidder may cancel his agreement to purchase the bonds and receive back his check, and thereafter his interest in and liability for the bonds will cease. The City will deliver the bonds without expense to the purchaser in Chicago, Illinois, and will pay for the printing of the bonds and the bond attorneys'opinion. At the time of delivery,the City will furnish to the purchaser the written approving opinion of Chapman and Cutler, Attorneys,Chicago, Illinois, evidencing the legality of the bonds, which opinion will be printed on the reverse of each bond. The City will furnish the transcript of proceedings on which said opinion is based and a certificate of no- litigation then pending or threatened affecting the legality of the bonds, or the right of the City to issue them. Interest on the bonds is exempt, in the opinion of counsel,from Federal Income Taxes under existing statutes,regulations and decisions. Interest on the bonds is not exempt from Illinois Income Tax. The City Council has authorized the preparation of an Official Statement containing pertinent information relative to the City and its finances. For copies of that Statement or for any additional information,any prospective purchaser is referred to the undersigned at the City Hall, Elgin, Illinois, or the Public Finance Consultants to the City, Speer Financial, Inc., 55 East Monroe Street, Suite 4510, Chicago, Illinois 60603. Telephone: Area 312-346-3700. /s/ MARIE YEARMAN City Clerk City of Elgin, Illinois 16