94-0727 Western Area II Voucher 21 RESOLUTION
AUTHORIZING THE ISSUANCE OF VOUCHER NUMBER 21 OF
SPECIAL ASSESSMENT WESTERN ELGIN AREA II
WHEREAS, the engineer's payment estimate in the amount of
$681,816 .49 has been presented to the City for work completed
on Special Assessment Western Elgin Area II, a copy of said
engineer's estimate being attached hereto and made a part
hereof.
WHEREAS, the City has expended $499,214 . 21 in engineering
payments, and
WHEREAS, the Board of Local Improvements estimates
interest payments on bonds and vouchers will total $160,000;
and
WHEREAS, the cost of levying, making and collecting the
assessment, and cost of attendant lawful expenses, including,
but not necessarily limited to, calling and payment of bonds,
bond registration and transfer, and accounting costs attending
the same is $22,602 .28.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF LOCAL
IMPROVEMENTS OF THE CITY OF ELGIN, that the Board of Local
Improvements hereby approves the issuance of the following
voucher in the following amount for Special Assessment Western
Elgin Area II :
Voucher No. 21 in the amount of $681,816 .49
to City of Elgin.
A copy of said voucher being attached hereto and made a part
hereof.
s/ George VanDeVoorde
George VanDeVoorde, President
Board of Local Improvements
City of Elgin
Presented: July 27, 1994
Adopted: July 27, 1994
Vote: Yeas 7 Nays 0
Recorded:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, Secretary
SPECIAL ASSESSMENT VOUCHER
CITY OF ELGIN
STATE OF ILLINOIS
COUNTIES OF KANE AND COOK
VOUCHER NO. 21 WESTERN ELGIN AREA II
SPECIAL ASSESSMENT NO. TX 92 0004
$681,816 .49
SPECIAL ASSESSMENT VOUCHER OF THE CITY OF ELGIN, KANE AND COOK
COUNTIES, ILLINOIS:
To the Finance Director of the City of Elgin, Illinois.
From funds to be obtained by collection of the special assessment
made by the City of Elgin, Kane and Cook Counties, Illinois, in
proceedings filed in the Circuit Court of Kane County, Illinois,
and confirmed by the said Court on the 23rd day of July, 1992 and
on the 1st day of September, 1992, in proceedings bearing Docket
Number TX 92 0004 for the purpose of paying the cost of
construction work of the improvement known as Western Elgin
Area II in said City of Elgin, the said City of Elgin will pay to
the City of Elgin, or order, when collected, for the reimbursement
of the cost of levying, making and collecting the assessment and
cost of attendant lawful expenses attending the same, the sum of
Six Hundred Eighty-One Thousand Eight Hundred Sixteen Dollars and
49/100 ($681,816 .49) with interest thereon from the date hereof at
the rate of seven percent (7%) per annum; said sum being comprised
of estimated interest payments on bonds and vouchers totalling
$160,000; expended engineering payments totaling $499,214 .21; and
costs of levying, making and collecting the assessment totalling
$22,602.28.
This Voucher is given pursuant to authority conferred by the
General Assembly of the State of Illinois in Article 9,
Division 2, Paragraphs 9-2-1 through 9-2-144 of the Illinois
Municipal Code (Ill. Revised Statutes, Chapter 24, Paragraphs
9-2-1 through 9-2-144) , in the matter of the aforesaid improvement
and is the 21st Voucher issued on account of such work done.
This voucher was authorized by the Board of Local Improvements.
IN WITNESS WHEREOF, the City of Elgin Board of Local Improvements
has caused this Voucher to be executed by its Mayor, countersigned
by its Clerk, and its corporate s.eal to afixed hereto at the
City of Elgin, Illinois, this f!,!?"day f b\/ _ , 1994 .
' .. 444L44'e41.4,
George anDeVoorde, Mayor
Countersigned: 064-41k.,,,,C /21_42, eu.,,_
Dolonna Mecum, City Clerk
Rec-- •d the original of the foregoing Voucher this IO-g day of
A I_... , 1994 .
CITY OF ELGIN c
By G%tea¢
Memorandum
glfp FE
July 20, 1994
TO: Board of Local Improvements
FROM: James R. Nowicki, Finance Director
SUBJECT: Final Voucher for Engineering
and Other City Expenses, Area II
Attached is a copy of the Certificate of Final Costs and Comple-
tion that will be submitted to the Circuit Court. This document
outlines all engineering, construction and other City costs
associated with the Area II Project.
The final voucher should include: 1) a reserve for deficiency in
interest and 2) sufficient dollars associated with making and
collecting this assessment. State statutes permit cities to set
aside dollars for the difference on the coupon rate of the bond
or voucher (seven percent) and the rate the City actually in-
vests the assessees ' special assessment payments (approximately
three percent) . This difference, $160,000, has been added to
the overall cost of the project to assure that sufficient dol-
lars will be on hand to pay bondholders . Secondly, the remain-
ing $22,602 .28 has been set aside to offset the City' s costs
associated with making and collecting the special assessment.
These costs include calling and paying of the bonds, payment of
annual interest checks, registration of bonds, transferring of
bonds, accounting and reconciliation of bank accounts and bond
ledgers, fielding questions from bondholders, assessees and the
financial community in general .
While the statute allows for up to six percent of the engineer-
ing/construction costs ($4,581,997 . 72) to be used toward funding
both the interest deficiency as well as the costs associated
with making and collecting the assessment (which total over
$500,000) , there remains only $182,602 .28. The City has histori-
cally used upwards of five percent on special assessment
projects to cover the cost of both the interest deficiency and
cost of making and collecting the assessment.
The City has two alternatives : 1) increase the cost of the as-
sessment by going back to the assessees and requesting addition-
al dollars, or 2 ) should there be a deficiency or shortage of
cash over the life of the assessment another fund would have to
Board of Local Improvements
July 20, 1994
Page 2
make up the difference. At this time it is impossible to tell
whether there would be a deficiency in interest or not.
Practically it doesn't make sense to go to the assessees and
charge them the additional amount that would ensure sufficient
funds are on hand to make all bond and interest payments . Howev-
er it should be pointed out that the possibility exists that
there may be a shortage some time within the ten year assessment
period. Should that happen, funds will have to be utilized to
make sure the bonds are paid in a timely manner.
Total Estimated Project Cost $4,764,600.00
Actual Engineering/Construction Costs $4,581,997 . 72
Costs Vouchered To Date 3,900, 181 .23
Amount of Final Voucher $ 681,816.49
Breakdown of Final Voucher
Engineering Costs Previously Paid
By City But Not Yet Vouchered $ 499,214 .21
Accruing Interest on Vouchers and Bonds 160, 000 . 00
Costs of Levying, Making and Collecting
Assessment 22,602 . 28
$ 681,816.49
J� me GGR�No(icki �'` w
T
ce Director
JRN:daw
Attachment