Ordinance 2007-002 COPY
ORDINANCE NO.
AN ORDINANCE authorizing and providing for the issue of not to
exceed $3,500,000 General Obligation Refunding Bonds
(Alternate Revenue Source), Series 2007A, of the United City of
Yorkville, Kendall County, Illinois, for the purpose of refunding a
portion of the City's outstanding Debt Certificates, Series 2003,
prescribing the details of said bonds, and providing for the
imposition of taxes to pay the same, and for the collection,
segregation and application of the waterworks and sewerage
system revenues to pay said Bonds.
TABLE OF CONTENTS
SECTION HEADING PAGE
PREAMBLES................................................................................................... ..............................1
Section 1. Definitions .................................... ............................... ......5
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Section 2. Incorporation of Preambles; Acceptance of Report ..... ..............................9
Section 3. Determination to Issue Bonds; Useful Life ................. ..............................9
Section4. Bond Details ............................................................... ..............................9
Section5. Redemption ............................................................... .............................10
Section 6. Execution; Authentication ......................................... .............................14
Section 7. Registration of Bonds; Persons Treated as Owners; Global
Book -Entry System ............................................. .............................14
Section 8. Form of Bonds ..................................:....................... .............................18
Section 9. Sale of the Bonds ...................................................... .............................27
Section 10. Treatment of Bonds As Debt ..................................... .............................27
Section 11. Continuation of Waterworks and Sewerage Fund and
Accounts; Flow of Funds ..................................... .............................28
Section 12. 2006B Alternate Bond Fund ...................................... .............................31
Section 13. Use of Bond Proceeds ............................................... .............................31
Section 14. Pledged Taxes; Tax Levy .......................................... .............................32
Section 15. Filing with County Clerk ........................................... .............................33
Section 16. Abatement of Pledged Taxes ..................................... .............................34
Section 17. General Covenants .................................................... .............................35
Section 18. Future Revenue Bonds, Additional Bonds and Subordinate
Bonds.................................................................. .............................39
Section19. Defeasance .............................................................. ............................... 39
Section 20. This Ordinance a Contract ......................................... .............................40
Section 21. Call of the Refunded Obligations ............................... .............................40
Section 22. Bond Registrar Covenants ......................................... .............................40
Section 23. Non - Arbitrage and Tax - Exemption ........................... .............................41
Section24. Registered Form ........................................................ .............................42
Section 25. Municipal Bond Insurance ......................................... .............................42
Section 26. Continuing Disclosure Undertaking ........................... .............................42
Section 27. Severability ............................................................... .............................43
Section28. Repealer .................................................................... .............................44
Section 29. Effective Date ........................................................... .............................44
This Table of Contents is for convenience only and
is not a part of the ordinance.
ORDINANCE No. W1 oil-
AN ORDINANCE authorizing and providing for the issue of not to
exceed $3,500,000 General Obligation Refunding Bonds (Alternate
Revenue Source), Series 2007A, of the United City of Yorkville,
Kendall County, Illinois, for the purpose of refunding a portion of the
City's outstanding Debt Certificates, Series 2003, prescribing the
details of said bonds, and providing for the imposition of taxes to pay
the same, and for the collection, segregation and application of the
waterworks and sewerage sy stem revenues to pay said Bonds.
WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City "), is a duly
organized and existing municipality and unit of local government created under the provisions of
the laws of the State of Illinois, and is now operating under the provisions of the Illinois
Municipal Code, as supplemented and amended (the "Code"), and for many years past has
owned and operated a combined waterworks and sewerage system (the "System ") in accordance
with the provisions of Division 139 of the Code; and
WHEREAS, the City Council of the City (the "Corporate Authorities ") has determined
that it is advisable, necessary and in the best interests of the City to refund certain of the City's
outstanding Debt Certificates, Series 2003 (the "Refunded Obligations "); and
WHEREAS, the Refunded Obligations are more fully described in an escrow agreement
(the "Escrow Agreement ") referred to in Section 13 hereof and are presently outstanding and
unpaid and are binding and subsisting legal obligations of the City; and
WHEREAS, the cost of refunding the Refunded Obligations (the "Refunding ") including
legal, financial, bond discount, printing and publication costs and other expenses is an amount
not to exceed $3,500,000 and there are insufficient funds on hand and lawfully available to pay
such costs; and
WHEREAS, pursuant to and in accordance with the provisions of the Code, the City is
authorized to issue its waterworks and sewerage revenue bonds for the purpose of providing
funds to pay the costs of the Refunding; and
WHEREAS, as provided in Section 15 of the Local Government Debt Reform Act of the
State of Illinois, as supplemented and amended (the "Act "), whenever revenue bonds have been
authorized to be issued pursuant to the Code, the City may issue its general obligation bonds in
lieu of such revenue bonds as authorized, and such general obligation bonds may be referred to
as "alternate bonds "; and
WHEREAS, for the purpose of providing funds to pay the costs of the Refunding and in
accordance with the provisions of the Act, the Corporate Authorities, on the 10th day of October,
2006, adopted Ordinance No. 2006 -135 (the "Authorizing Ordinance "), authorizing the issuance
of Waterworks and Sewerage Revenue Bonds (the "Revenue Bonds "), as provided in the Code,
in an amount not to exceed $6,000,000 or in lieu thereof, authorizing the issuance of General
Obligation Bonds (Alternate Revenue Source) (the "Alternate Bonds "), as provided in the Act,
in an aggregate principal amount not to exceed $6,000,000; and
WHEREAS, on the 15th day of December, 2006, the Authorizing Ordinance, together with
a separate notice in statutory form, was published in the Kendall County Record, the same being
a newspaper of general circulation in the City, and an affidavit evidencing the publication of the
Authorizing Ordinance and said notice have heretofore been presented to the Corporate
Authorities and made a part of the permanent records of the City; and
WHEREAS, more than thirty (30) days have expired since the date of publication of the
Authorizing Ordinance and said notice, and no petitions with the requisite number of valid
signatures thereon have been filed with the City Clerk requesting that the question of the
issuance of the Revenue Bonds or the Alternate Bonds be submitted to referendum; and
WHEREAS, the Refunding constitutes a lawful corporate purpose within the meaning of
the Act; and
WHEREAS, the Corporate Authorities are now authorized to issue the Revenue Bonds to
the amount of $6,000,000, or, in lieu thereof, the Alternate Bonds to the amount of $6,000,000 in
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accordance with the provisions of the Act, and the Corporate Authorities hereby determine that it
is necessary and desirable that there be issued at this time not to exceed $3,500,000 of the
Alternate Bonds so authorized; and
WHEREAS, the Alternate Bonds to be issued will be payable from the Pledged Revenues
and the Pledged Taxes, both as hereinafter defined; and
WHEREAS, the Alternate Bonds will be issued on a parity with the hereinafter defined
2004B Alternate Bonds and 2005C Alternate Bonds (collectively, the "Outstanding Alternate
Bonds "), which were issued pursuant to Ordinance Numbers 2004 -10 and 2005 -73, adopted by
the Corporate Authorities on February 24, 2004 and August 23, 2005, respectively (collectively,
the "Outstanding Alternate Bond Ordinances"); and
WHEREAS, the Corporate Authorities have heretofore and it is hereby determined that the
Pledged Revenues will be sufficient to provide or pay in each year to final maturity of the
Alternate Bonds all of the following: (1) Operation and Maintenance Expenses as hereinafter
defined, but not including depreciation, (2) debt service on all outstanding revenue bonds, if any,
payable from the Revenues, (3) all amounts required to meet any fund or account requirements
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with respect to such outstanding revenue bonds, (4) other contractual or tort liability obligations,
if any, payable from the Revenues, and (5) in each year, an amount not less than 1.25 times debt
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service of the Alternate Bonds proposed to be issued and the Outstanding Alternate Bonds; and
WHEREAS, such determination of the sufficiency of the Pledged Revenues is supported by
reference to the report dated the date hereof (the "Report "), of Speer Financial, Inc., Chicago,
Illinois ("Speer"), which Report has been presented to and accepted by the Corporate
Authorities and is now on file with the City Clerk; and
WHEREAS, pursuant to and in accordance with the provisions of the Bond Issue
Notification Act of the State of Illinois, the Mayor of the City (the "Mayor "), on the 10th day of
October, 2006, called a public hearing (the "Hearing") for the 24th day of October, 2006,
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concerning the intent of the Corporate Authorities to sell not to exceed $6,000,000 General
Obligation Bonds (Alternate Revenue Source); and
WHEREAS, notice of the Hearing was given (i) by publication at least once not less than
j seven (7) nor more than thirty (30) days before the date of the Hearing in the Kendall County
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Record, the same being a newspaper of general circulation in the City, and (ii) by posting at least
48 hours before the Hearing a copy of said notice at the principal office of the Corporate
Authorities; and
WHEREAS, the Hearing was opened on the 24th day of October, 2006, and adjourned until
October 30, 2006; and
WHEREAS, the Hearing was held on the 30th day of October, 2006, and at the Hearing,
the Corporate Authorities explained the reasons for the proposed bond issue and permitted
persons desiring to be heard an opportunity to present written or oral testimony within reasonable
time limits; and
WHEREAS, the Hearing was finally adjourned on the 30th day of October, 2006, and not
less than seven (7) days have passed since the final adjournment of the Hearing; and
WHEREAS, the Property Tax Extension Limitation Law of the State of Illinois, as
amended by Public Act 89 -385 (the "Tax Limitation Law "), imposes certain limitations on the
"aggregate extension" of certain property taxes levied by the City, but provides that the
definition of "aggregate extension" contained in Section 18 -185 of the Tax Limitation Law does
not include "extensions ... payments of principal and interest on bonds issued under Section 15
of the Local Government Debt Reform Act;" and
WHEREAS, the County Clerk of Kendall County, Illinois (the "County Clerk "), is
therefore authorized to extend and collect said direct annual and valorem tax so levied for the
payment of the Bonds for the Refunding, as alternate bonds, without limitation as to rate or
amount:
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Now THEREFORE Be It Ordained by the City Council of the United City of Yorkville,
Kendall County, Illinois, as follows:
Section 1. Definitions. The following words and terms used in this ordinance shall
have the following meanings unless the context or use clearly indicates another or different
meaning is intended:
"Act" means the Local Government Debt Reform Act of the State of Illinois, as
amended.
"Additional Bonds" means any alternate bonds issued in the future in accordance with
the provisions of the Act on a parity with and sharing ratably and equally in the Pledged
Revenues with the Bonds and Outstanding Alternate Bonds.
"Alternate Bond and Interest Subaccount" means the Alternate Bond and Interest
Subaccount maintained hereunder and further described by Section 11 of this Ordinance.
"Bond" or "Bonds" means one or more, as applicable, of the not to exceed $3,500,000
General Obligation Refunding Bonds (Alternate Revenue Source), Series 2007A, authorized to
be issued by this Ordinance.
"Bond Fund" means the 2007A Alternate Bond Fund established hereunder and further
described by Section 12 of this Ordinance.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence the
registration and transfer of the Bonds.
"Bond Registrar" means The Bank of New York Trust Company, N.A., located in the
City of Chicago, Illinois, or successor thereto or designated hereunder, in its respective capacities
as bond registrar and paying agent.
"City" means the United City of Yorkville, Kendall County, Illinois.
"City Clerk" means the City Clerk of the City.
"City Treasurer" means the Treasurer of the City.
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"Code" means the Illinois Municipal Code, as supplemented and amended.
"Corporate Authorities" means the City Council of the City.
"Escrow Agent" means The Bank of New York Trust Company, N.A., Chicago, Illinois,
a national banking association having trust powers, or a successor thereto or a successor
designated as Escrow Agent hereunder.
"Escrow Agreement" means the agreement by and between the City and the Escrow
Agent as authorized in Section 13 hereof and set forth as Exhibit A.
"Expense Fund" means the fund established hereunder and further described by
Section 13 of this Ordinance.
"Fiscal Year" means that twelve- calendar month period beginning on May 1 of the
calendar year and ending on the next succeeding April 30.
"Future Bond Ordinances" means the ordinances of the City authorizing the issuance of
bonds payable from the Revenues, but not including the Outstanding Alternate Bond Ordinances,
this Ordinance or any other ordinance authorizing the issuance of Additional Bonds.
"IRC" means the Internal Revenue Code of 1986, as amended.
"Mayor" means the Mayor of the City.
"Operation and Maintenance Costs" means all costs of operating, maintaining and
routine repair of the System, including wages, salaries, costs of materials and supplies, power,
fuel, insurance, purchase of water and sewage treatment services (including all payments by the
City pursuant to long term contracts for such services as and to the extent provided in such
contracts); but excluding debt service, depreciation, or any reserve requirements; and otherwise
determined in accordance with generally accepted accounting principles for municipal enterprise
funds.
"Ordinance" means this Ordinance as originally adopted and as the same may from time
to time be amended or supplemented in accordance with terms hereof.
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"Outstanding" when used with reference to the Bonds, the Outstanding Alternate Bonds
and Additional Bonds means such of those bonds which are outstanding and unpaid; provided,
however, such term shall not include any of the Bonds, the Outstanding Alternate Bonds or
Additional Bonds (i) which have matured and for which moneys are on deposit with proper
paying agents or are otherwise sufficiently available to pay all principal thereof and interest
thereon or (ii) the provision for payment of which has been made by the City by the deposit in an
irrevocable trust or escrow of funds or direct, full faith and credit obligations of the United States
of America, the principal of and interest on which will be sufficient to pay at maturity or as
called for redemption all the principal of and interest on such Bonds, the Outstanding Alternate
Bonds or Additional Bonds.
"Outstanding Alternate Bonds" means, collectively, the 2004B Alternate Bonds and the
2005C Alternate Bonds.
"Pledged Moneys" means, collectively, the Pledged Revenues and the Pledged Taxes.
"Pledged Revenues" means (i) the moneys deposited to the credit of the Alternate Bond
and Interest Subaccount within the Surplus Account of the Waterworks and Sewerage Fund, said
Surplus Account consisting of the funds remaining in said Waterworks and Sewerage Fund after
the required monthly deposits and credits have been made to the Operation and Maintenance
Account, the Depreciation. Account and any other accounts as may be created in the future, of
said Waterworks and Sewage Fund, (ii) all collections distributed to the City pursuant to the
State Revenue Sharing Act from those taxes imposed by the State of Illinois pursuant to
subsections (a) and (c) of Section 201 of the Illinois Income Tax Act, as supplemented and
amended from time to time, or substitute taxes therefor as provided by the State of Illinois in the
future, and (iii) such other funds of the City as may be necessary and on hand from time to time
and lawfully available for such purpose.
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"Pledged Taxes" means the ad valorem taxes levied against all of the taxable property in
the City without limitation as to rate or amount, pledged hereunder by the City as security for the
Bonds.
"Revenues" means all income from whatever source derived from the System, including
(i) investment income; (ii) connection, permit and inspection fees and the like; (iii) penalties and
delinquency charges; (iv) capital development, reimbursement, or recovery charges and the like;
(v) annexation or pre- annexation charges insofar as designated by the Corporate Authorities as
paid for System connection or service; but excluding expressly (a) non - recurring income from
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the sale of property of the System; (b) governmental or other grants; (c) advances or grants made
from the City; and as otherwise determined in accordance with generally accepted accounting
principles for municipal enterprise funds.
"System" refers to all property, real, personal or otherwise owned or to be owned by the
City or under the control of the City, and used for waterworks and sewerage purposes, including
any and all further extensions, improvements and additions to the System.
"Tax - exempt" means, with respect to the Bonds, the status of interest paid and received
thereon as not includable in the gross income of the owners thereof under the IRC for federal
income tax purposes except to the extent that such interest will be taken into account in
computing an adjustment used in determining the alternative minimum tax for certain
corporations.
"Waterworks and Sewerage Fund" means the Waterworks and Sewerage Fund of the
City created under the Outstanding Alternate Bond Ordinances and continued hereunder.
"20048 Alternate Bonds" means the $3,500,000 original aggregate principal amount
General Obligation Bonds (Alternate Revenue Source), Series 2004B; less any of said bonds that
are no longer "Outstanding" hereunder.
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"2005C Alternate Bonds" means the $2,000,000 original aggregate principal amount
General Obligation Bonds (Alternate Revenue Source), Series 2005C; less any of said bonds that
are no longer "Outstanding" hereunder.
Section 2. Incorporation of Preambles; Acceptance of Report. The Corporate
Authorities hereby find that the recitals contained in the preambles to this Ordinance are true,
correct and do hereby incorporate them into this Ordinance by this reference. The Report is
hereby accepted and approved by the Corporate Authorities, and it is hereby found and
determined that Speer is a feasibility analyst having a national reputation for expertise in such
matters as the Report.
Section 3. Determination to Issue Bonds; Useful Life. It is necessary and in the best
interests of the City for the City to undertake the Refunding for the public health, safety and
welfare, in accordance with the estimate of costs therefor as described, and to issue the Bonds to
enable the City to pay the costs thereof. The useful life of the System is hereby determined to be
not less than 25 years from the date hereof.
Section 4. Bond Details. For the purpose of providing for the payment of costs of the
Refunding, there shall be issued and sold the Bonds in the aggregate principal amount of not to
exceed $3,500,000 as set forth in the Bond Notification (as hereinafter defined). The Bonds shall
each be designated "General Obligation Refunding Bond (Alternate Revenue Source), Series
2007A ", or such other name or names or series designations as may be appropriate and as stated
in the Bond Notification. The Bonds shall be dated the date of issuance therefore or as set forth
in the Bond Notification, and shall also bear the date of authentication, shall be in fully registered
form, shall be in denominations of $5,000 each or authorized integral multiples thereof (but no
single Bond shall represent installments of principal maturing on more than one date), and shall
be numbered I and upward, and shall become due and payable serially or be subject to
mandatory redemption (subject to prior redemption as hereinafter described) on December 30 of
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each of the years (not later than 2022), in the amounts not exceeding $1,000,000 per year and
bearing interest at the rates per annum (not to exceed 9.00% per annum) as set forth in the Bond
Notification.
The Bonds shall bear interest from their date or from the most recent interest payment
date to which interest has been paid or duly provided for, until the principal amount of the Bonds
is paid, such interest (computed upon the basis of a 360 -day year of twelve 30 -day months) being
payable semi - annually commencing with the first interest payment date as set forth in the Bond
Notification.
Interest on each Bond shall be paid by check or draft of The Bank of New York Trust
Company, N.A., Chicago, Illinois, as bond registrar and paying agent (the "Bond Registrar "),
payable upon presentation in lawful money of the United States of America, to the person in
whose name such Bond is registered at the close of business on the 15th day of the month of any
interest payment date.
The principal of and premium, if any, on the Bonds shall be payable in lawful money of
the United States of America at the principal corporate trust office of the Bond Registrar.
Section 5. Redemption. (a) Optional Redemption. The Bonds due on and after the
date, if any, specified in the Bond Notification (but not earlier than December 30, 2015, and not
later than December 30, 2018) shall be subject to redemption prior to maturity at the option of
the City from any available funds, as a whole or in part, and if in part in integral multiples of
$5,000 in any order of their maturity as determined by the City (less than all of the Bonds of a
single series and maturity to be selected by the Bond Registrar), on the date specified in the Bond
Notification (but not earlier than December 30, 2014, and not later than December 30, 2017), and
on any date thereafter, at the redemption prices (expressed as a percentage of the principal
amount redeemed and not to exceed 102 %) plus accrued interest to the date fixed for redemption,
if applicable, as set forth in the Bond Notification.
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(b) Mandatory Redemption. The Bonds maturing on the date or dates, if any, indicated
in the Bond Notification are subject to mandatory redemption, in integral multiples of $5,000
selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the
redemption date on December 30 of the years, if any, and in the principal amounts, if any, as
indicated in the Bond Notification.
The principal amounts of Bonds to be mandatorily redeemed in each year may be reduced
through the earlier optional redemption thereof, with any partial optional redemptions of such
Bonds credited against future mandatory redemption requirements in such order of the
mandatory redemption dates as the City may determine. In addition, on or prior to the 60th day
preceding any mandatory redemption date, the Bond Registrar may, and if directed by the
Corporate Authorities shall, purchase Bonds required to be retired on such mandatory
redemption date. Any such Bonds so purchased shall be cancelled and the principal amount
thereof shall be credited against the mandatory redemption required on such next mandatory
redemption date.
(c) General Redemption Provisions. The City shall, at least 45 days prior to the
redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar), notify
the Bond Registrar of such redemption date and of the principal amount and maturities of Bonds
to be redeemed. For purposes of any redemption of less than all of the Bonds of a single
maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot not
more than 60 days prior to the redemption date by the Bond Registrar for the Bonds of such
maturity by such method of lottery as the Bond Registrar shall deem fair and appropriate;
provided, that such lottery shall provide for the selection for redemption of Bonds or portions
thereof so that any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for
redemption as any other such $5,000 Bond or $5,000 portion.
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The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of
Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
Unless waived by the registered owner of Bonds to be redeemed, official notice of any
such redemption shall be given by the Bond Registrar on behalf of the City by mailing the
redemption notice by first - class mail not less than 30 days and not more than 60 days prior to the
date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the
address shown on the Bond Register or at such other address as is furnished in writing by such
registered owner to the Bond Registrar.
All official notices of redemption shall include the name of the Bonds and at least the
information as follows:
(1) the redemption date;
(2) the redemption price;
(3) if less than all of the Bonds of a single series and maturity are to be
redeemed, the identification (and, in the case of partial redemption of any Bonds, the
respective principal amounts) of the Bonds to be redeemed;
(4) a statement that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption and that
interest thereon shall cease to accrue from and after said date; and
(5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office of
the Bond Registrar.
Prior to any redemption date, the City shall deposit with the Bond Registrar an amount of
money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to
be redeemed on that date.
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Official notice of redemption having been given as aforesaid, the Bonds or portions of
Bonds so to be redeemed shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date (unless the City shall default in
the payment of the redemption price), such Bonds or portions of Bonds shall cease to bear
interest. Neither the failure to mail such redemption notice, nor any defect in any notice so
mailed, to any particular registered owner, shall affect the sufficiency of such notice with respect
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to other Bonds. Notice having been properly given, failure of a registered owner to receive such
notice shall not be deemed to invalidate, limit or delay the effect of the notice or redemption
action described in the notice. Such notice may be waived in writing by the registered owner
entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by registered owners shall be filed with the Bond
Registrar, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds
shall be paid by the Bond Registrar at the redemption price. The procedure for payment of
interest due on or prior to the redemption date shall be as herein provided for payment of interest
otherwise due. - Upon surrender for any partial redemption of any Bond, there shall be prepared
for the registered owner a new Bond or Bonds of like tenor, of authorized denominations, of the
same maturity and bearing the same rate of interest in the amount of the unpaid principal. If any
Bond or portion of Bond called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and premium (if any) shall, until paid or duly provided for, bear
interest from the redemption date at the rate borne by the Bond or portion of Bond so called for
redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond
Registrar and shall not be reissued.
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Section 6. Execution; Authentication. The Bonds shall be executed on behalf of the
City with the manual or facsimile signature of the Mayor and attested with the manual or
facsimile signature of the City Clerk or duly authorized City Clerk, as they may determine, and
shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the City. In
case any officer whose signature shall appear on any Bond shall cease to be such officer before
the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office until delivery.
All Bonds shall have thereon a certificate of authentication substantially in the form
hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the City and
showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this Ordinance unless and until such certificate of
authentication shall have been duly executed by the Bond Registrar by manual signature, and
such certificate of authentication upon any such Bond shall be conclusive evidence that such
Bond has been authenticated and delivered under this Ordinance. The certificate of
authentication on any Bond shall be deemed to have been executed by it if signed by an
authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign
the certificate of authentication on all of the Bonds issued hereunder.
Section 7. Registration of Bonds; Persons Treated as Owners; Global Book -Entry
System. (a) General. The City shall cause books (the "Bond Register ") for the registration and
for the transfer of the Bonds as provided in this Ordinance to be kept at the principal corporate
trust office of the Bond Registrar, which is hereby constituted and appointed the registrar of the
City. The City is authorized to prepare, and the Bond Registrar shall keep custody of, multiple
Bond blanks executed by the City for use in the transfer and exchange of Bonds.
Upon surrender for transfer of any Bond at the principal corporate trust office of the
Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of
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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
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amount. Any fully registered Bond or Bonds may be exchanged at said principal corporate trust
office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the same
maturity of other authorized denominations. The execution by the City of any fully registered
Bond shall constitute full and due authorization of such Bond and the Bond Registrar shall
thereby be authorized to authenticate, date and deliver such Bond, provided, however, the
principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar
shall not exceed the authorized principal amount of Bonds for such maturity less previous
retirements.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period beginning at the close of business on the 15th day of the month of any interest payment
date on such Bond and ending at the opening of business on such interest payment date nor to
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transfer or exchange any Bond after notice calling such Bond for redemption has been mailed,
nor during a period of fifteen days next preceding mailing of a notice of redemption of any
Bonds.
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
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governmental charge that may be imposed in connection with any transfer or exchange of Bonds
except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond
surrendered for redemption.
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(b) Global Book -Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds as provided in
Section 4 hereof, and the ownership of each such Bond shall be registered in the Bond Register
in the name of Cede & Co., or any successor thereto ("Cede"), as nominee of The Depository
Trust Company, New York, New York, and its successors and assigns ( "DTC "). All of the
outstanding Bonds shall be registered in the Bond Register in the name of Cede, as nominee of
DTC, except as hereinafter provided. The Mayor, the City Treasurer and City Clerk are hereby
authorized to execute and deliver on behalf of the City such letters to or agreements with DTC
and the Bond Registrar as shall be necessary to effectuate such book -entry system (any such
letter or agreement being referred to herein as the "Representation Letter ").
With respect to the Bonds registered in the Bond Register in the name of Cede, as
nominee of DTC, the City and the Bond Registrar shall have no responsibility or obligation to
any broker - dealer, bank or other financial institution for which DTC holds Bonds from time to
time as securities depository (each such broker - dealer, bank or other financial institution being
referred to herein as a "DTC Participant ") or to any person on behalf of whom such a DTC
Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence,
the City and the Bond Registrar shall have no responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede or any DTC Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register, of any notice with respect to the
Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any
other person, other than a registered owner of a Bond as shown in the Bond Register, of any
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amount with respect to principal of or interest on the Bonds. The City and the Bond Registrar
may treat and consider the person in whose name each Bond is registered in the Bond Register as
the holder and absolute owner of such Bond for the purpose of payment of principal and interest
with respect to such Bond, for the purpose of giving notices of redemption and other matters
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j with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and
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for all other purposes whatsoever. The Bond Registrar shall pay all principal of and interest on
the Bonds only to or upon the order of the respective registered owners of the Bonds, as shown
in the Bond Register, or their respective attorneys duly authorized in writing, and all such
payments shall be valid and effective to fully satisfy and discharge the City's obligations with
respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so
paid. No person other than a registered owner of a Bond as shown in the Bond Register, shall
receive a Bond certificate evidencing the obligation of the City to make payments of principal
and interest with respect to any Bond. Upon delivery by DTC to the Bond Registrar of written
notice to the effect that DTC has determined to substitute a new nominee in place of Cede, the
name "Cede" in this ordinance shall refer to such new nominee of DTC.
In the event that (i) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among the
City, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated for
any reason or (iii) the City determines that it is in the best interests of the beneficial owners of
the Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC
Participants of the availability through DTC of Bond certificates and the Bonds shall no longer
be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC.
At the time, the City may determine that the Bonds shall be registered in the name of and
deposited with such other depository operating a global book -entry system, as may be acceptable
to the City, or such depository's agent or designee, and if the City does not select such alternate
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global book -entry system, then the Bonds may be registered in whatever name or names
registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with
the provisions of Section 7(a) hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to
principal of and interest on such Bond and all notices with respect to such Bond shall be made
and given, respectively, in the manner provided in the Representation Letter.
Section 8. Form of Bonds. The Bonds shall be in substantially the form hereinafter set
forth; provided, however, that if the text of the Bonds is to be printed in its entirety on the front
side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side
for Additional Provisions" shall be omitted and the text of paragraphs set forth for the reverse
side shall be inserted immediately after the first paragraph.
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i
[Form of Bond - Front Sidel
REGISTERED REGISTERED
No. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF KENDALL
UNITED CITY OF YORKVILLE
GENERAL OBLIGATION REFUNDING BOND
(ALTERNATE REVENUE SOURCE)
SERIES 2007A
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate: Date: December 30, Date: , 2007 CUSIP:
Registered Owner: CEDE & Co.
Principal Amount: DOLLARS
KNow ALL PERSONS BY THESE PRESENTS that the United City of Yorkville, Kendall
County, Illinois, a municipality and political subdivision of the State of Illinois (the "City "),
hereby acknowledges itself to owe and for value received promises to pay to the Registered
Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date
identified above, the Principal Amount identified above and to pay interest (computed on the
basis of a 360 -day year of twelve 30 -day months) on such Principal Amount from the Dated Date
of this Bond identified above or from the most recent interest payment date to which interest has
been paid or duly provided for at the Interest Rate per annum identified above, such interest to be
payable on , 2007, and semi - annually thereafter on June 30 and December 30 of each
year until the Principal Amount is paid or duly provided for, except as the provisions hereinafter
set forth with respect to redemption prior to maturity may be and become applicable hereto. The
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Principal Amount of and redemption premium, if any, on this Bond are payable in lawful money
of the United States of America upon presentation at the principal corporate trust office of The
Bank of New York Trust Company, N.A., Chicago, Illinois, as paying agent and bond registrar
(the "Bond Registrar "). Payment of interest shall be made to the Registered Owner hereof as
appearing on the Bond Register of the City maintained by the Bond Registrar at the close of
business on the 15th day of the month of any interest payment date and shall be paid by check or
draft of the Bond Registrar, payable upon presentation in lawful money of the United States of
America, mailed to the address of such Registered Owner as it appears on such registration
books or at such other address furnished in writing by such Registered Owner to the Bond
Registrar.
Reference is hereby made to the further provisions of this Bond set forth on the reverse
hereof, and such further provisions shall for all purposes have the same effect as if set forth at
this place.
It is hereby certified and recited that all acts, conditions and things required to be done
precedent to and in the issuance of this Bond have been done and have happened and have been
performed in regular and due form of law; that the indebtedness of the City, including the issue
of Bonds of which this is one, does not exceed any limitation imposed by law; that provision has
been made for the collection of the Pledged Revenues, the levy and collection of the Pledged
Taxes, and the segregation of all Pledged Moneys to pay the interest hereon as it falls due and
also to pay and discharge the principal hereof at maturity; and that the City hereby covenants and
agrees that it will properly account for said Pledged Moneys and will comply with all the
covenants of and maintain the funds and accounts as provided by the Ordinance.
FOR THE PROMPT PAYMENT OF THIS BOND, BOTH PRINCIPAL AND INTEREST AT MATURITY,
THE FULL FAITH, CREDIT AND RESOURCES OF THE CITY ARE HEREBY IRREVOCABLY PLEDGED.
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This Bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Bond Registrar.
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IN WITNESS WHEREOF the United City of Yorkville, Kendall County, Illinois, by its City
Council, has caused this Bond to be executed with the manual or duly authorized facsimile
signature of its Mayor and attested by the manual or duly authorized facsimile signature of its
City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all
as appearing hereon and as of the Dated Date identified above.
i
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Mayor
United City of Yorkville
Kendall County, Illinois
ATTEST:
City Clerk
United City of Yorkville
Kendall County, Illinois
[SEAL]
Date of Authentication: ,
CERTIFICATE
OF
AUTHENTICATION
This Bond is one of the Bonds described Bond Registrar and Paying Agent:
in the within - mentioned Ordinance and is The Bank of New York Trust
one of the General Obligation Refunding Company, N.A., Chicago, Illinois
Bonds (Alternate Revenue Source), Series
2007A, of the United City of Yorkville,
Kendall County, Illinois.
THE BANK OF NEW YORK TRUST
COMPANY, N.A.
as Bond Registrar
By
Authorized Officer
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Form of Bond - Reverse Side
UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS
GENERAL OBLIGATION REFUNDING BOND
(ALTERNATE REVENUE SOURCE)
SERIES 2007A
j This bond and the bonds of the series of which it forms a part ( "Bond" and "Bonds"
respectively) are of an authorized issue of Dollars ($ ,000) Bonds of
like dated date and tenor except as to maturity, rate of interest, and privilege of redemption and
are issued pursuant to the Local Government Debt Reform Act of the State of Illinois, as
amended (the "Act "). The Bonds are also issued pursuant to Division 139 of Article 1 I of the
Illinois Municipal Code, as supplemented and amended (the "Code "), for the purpose of paying
the costs of refunding the City's outstanding Debt Certificates, Series 2003.
The Bonds are issued pursuant to an authorizing ordinance passed by the City Council of
the City (the "Corporate Authorities ") on the 10th day of October, 2006, and by a bond
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ordinance passed by the Corporate Authorities on the 23rd day of January, 2007 (the "Bond
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Ordinance "), to which reference is hereby expressly made for further definitions and terms and
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to all the provisions of which the Registered Owner by the acceptance of this Bond assents.
Under the Code and the Bond Ordinance, the Revenues, as defined, from the operation of
the System shall be deposited into the Waterworks and Sewerage Fund of the City which shall be
used only and has been pledged for paying Operation and Maintenance Expenses, paying the
principal of and interest on all bonds of the City that are payable by their terms from the
revenues of the System, providing an adequate depreciation fund, and in making all payments
required to maintain the accounts established under the Bond Ordinance. The City may issue
future waterworks and sewerage revenue bonds, which bonds may have a prior lien on the
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Revenues, or additional alternate bonds on a parity with the Bonds, in each case pursuant to the
terms of the Bond Ordinance.
The Bonds are payable from (a) (i) moneys to the credit of the Alternate Bond and
Interest Subaccount within the Surplus Account of the Waterworks and Sewerage Fund (the
"Pledged Revenges "), said Surplus Account consisting of the funds remaining in the
Waterworks and Sewerage Fund after the required monthly deposits and credits have been made
under the Bond Ordinance or future revenue bond ordinances to the various accounts of the
Waterworks and Sewerage Fund, (ii) all collections distributed to the City pursuant to the State
Revenue Sharing Act from those taxes imposed by the State of Illinois pursuant to subsections
(a) and (c) of Section 201 of the Illinois Income Tax Act, as supplemented and amended from
tirne to time, or substitute taxes therefor as provided by the State of Illinois in the future, and
(iii) such other funds of the City as may be necessary and on hand from time to time and lawfully
available for such purpose and (b) ad valorem taxes levied against all of the taxable property in
the City without limitation as to rate or amount (the "Pledged Taxes ") (the Pledged Revenues
and the Pledged Taxes being collectively called the "Pledged Moneys "), all in accordance with
the provisions of the Act and the Municipal Code. The Bonds are issued on a parity with the
City's currently outstanding General Obligation -Bonds (Alternate Revenue Source),
Series 2004B, and General Obligation Bonds (Alternate Revenue Series), Series 2005C.
Under the Act and the Bond Ordinance, the Pledged Revenues shall be deposited into and
segregated in the Alternate Bond and Interest Subaccount of the Surplus Account, and the
Pledged Taxes shall be deposited into and segregated in the 2007A Alternate Bond Fund, each as
created or continued by the Bond Ordinance. Moneys on deposit in said Subaccount and said
Fund shall be used first and are pledged for paying the principal of and interest on the Bonds and
then for any further purposes as provided by the terms of the Bond Ordinance.
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This Bond does not and will not constitute an indebtedness of the City within the
meaning of any constitutional or statutory provision or limitation, unless the Pledged Taxes shall
be extended pursuant to the general obligation, full faith and credit promise supporting the
Bonds, in which case the amount of the Bonds then Outstanding shall be included in the
computation of indebtedness of the City for purposes of all statutory provisions or limitations
until such time as an audit of the City shall show that the Bonds shall have been paid from the
Pledged Revenues for a complete Fiscal Year.
This Bond is subject to provisions relating to registration, transfer, and exchange;
redemption and notice and procedure for redemption; and such other terms and provisions
relating to security and payment as are set forth in the Bond Ordinance; to which reference is
hereby expressly made; and to all the terms of which the registered owner hereof is hereby
notified and shall be subject.
The City and the Bond Registrar may deem and treat the Registered Owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal hereof,
premium, if any, hereon and interest due hereon and for all other purposes; and neither the City
nor the Bond Registrar shall be affected by any notice to the contrary.
AssIGNMENT
FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
as attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
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Dated:
Signature Guaranteed:
NOTICE: The signature to this assignment must correspond with the name of the registered
owner as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatever.
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Section 9. Sale of the Bonds. The Mayor and the Finance Director of the City (the
"Designated Representatives ") are hereby authorized to proceed not later than March 1, 2007,
without any further authorization or direction from the Corporate Authorities, to sell and deliver
the Bonds upon the terms as prescribed in this Ordinance. The Bonds hereby authorized shall be
executed as in this Ordinance provided as soon after the delivery of the Bond Notification as may
be, and thereupon be deposited with the City Treasurer, and, after authentication thereof by the
Bond Registrar, be by said Treasurer delivered to LaSalle Financial Services, Inc., Chicago,
Illinois, the purchaser thereof (the "Purchaser "), upon receipt of the purchase price therefor, the
same being not less than 98% of the principal amount of the Bonds plus accrued interest to date
of delivery; provided, however, that (a) Speer Financial, Inc., the City's financial advisor,
provides advice (in the form of a written certificate) that the terms of the Bonds are fair and
reasonable in light of current conditions in the market for tax - exempt obligations such as the
Bonds; (b) the net present value savings derived from the refunding of the Refunded Bonds, as
certified by the Purchaser, shall not be less than 2.00 percent of the Refunded Bonds; and (c) the
other terms and limitations of this Ordinance shall be met.
Upon the sale of the Bonds, the Designated Representatives shall prepare a Notification
of Sale of the Bonds, which shall include the pertinent details of sale as provided herein (the
"Bond Notification "). In the Bond Notification, the Designated Representatives shall find and
determine that the Bonds have been sold at such price and bear interest at such rates that neither
the true interest cost (yield) nor the net interest rate received upon the sale of the Bonds exceed
the maximum rate otherwise authorized by applicable law. The Bond Notification shall be
entered into the records of the City and made available to the Corporate Authorities at the next
regular meeting thereof; but such action shall be for information purposes only, and the
Corporate Authorities shall have no right or authority at such time to approve or reject such sale
as evidenced in the Bond Notification.
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Upon the sale of the Bonds, as evidenced by the execution and delivery of the Bond
Notification by the Designated Representatives, the Mayor, City Clerk and City Treasurer and
any other officers of the City, as shall be appropriate, shall be and are hereby authorized and
directed to approve or execute, or both, such documents of sale of the Bonds as may be
necessary, including, without limitation, the contract for the sale of the Bonds between the City
j and the Purchaser (the "Purchase Contract "). Prior to the execution and delivery of the
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Purchase Contract, the Designated Representatives shall find and determine that no person
holding any office of the City either by election or appointment, is in any manner financially
interested directly in his own name or indirectly in the name of any other person, association,
trust or corporation, in the Purchase Contract.
The use by the Purchaser of any Preliminary Official Statement and any final Official
Statement relating to the Bonds (the "Official Statement ") is hereby ratified, approved and
authorized; the execution and delivery of the Official Statement is hereby authorized; and the
officers of the Corporate Authorities are hereby authorized to take any action as may be required
on the part of the District to consummate the transactions contemplated by the Purchase
Contract, this Ordinance, said Preliminary Official Statement, the Official Statement and the
Bonds.
Section 10. Treatment of Bonds As Debt. The Bonds shall be payable from the Pledged
Moneys and do not and shall not constitute an indebtedness of the City within the meaning of
any constitutional or statutory limitation, unless the Pledged Taxes shall be extended pursuant to
the general obligation, full faith and credit promise supporting the Bonds, as set forth in
Section 14 hereof, in which case the amount of the Bonds then Outstanding shall be included in
the computation of indebtedness of the City for purposes of all statutory provisions or limitations
until such time as an audit of the City shall show that the Bonds have been paid from the Pledged
Revenues for a complete Fiscal Year in accordance with the Act.
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Section H. Continuation of Waterworks and Sewerage Fund and Accounts; Flow of
Funds. Upon the issuance of any of the Bonds, the System shall continue to be operated on a
Fiscal Year basis. All of the Revenues shall be set aside as collected and be deposited into that
certain separate fund and in an account in a bank designated by the Corporate Authorities, which
fund has heretofore been created and designated as the "Waterworks and Sewerage Fund" of the
City and is expressly continued hereunder, and which fund shall constitute a trust fund for the
sole purpose of carrying out the covenants, terms, and conditions of the Outstanding Alternate
Bond Ordinances, this Ordinance and any Future Bond Ordinances. There shall be and there are
hereby continued separate accounts in the Waterworks and Sewerage Fund to be known as the
"Operation and Maintenance Account," such other accounts as may be established under any
Future Bond Ordinances, the "Depreciation Account," and the "Surplus Account," to which there
shall be credited on or before the first day of each month by the financial officer of the City,
without any further official action or direction, in the order in which said accounts are hereinafter
mentioned, all moneys held in the Fund, in accordance with the following provisions:
(a) Operation and Maintenance Account:
There shall be credited to or retained in the Operation and Maintenance Account
an amount sufficient, when added to the amount then on deposit in said Account,
to establish or maintain a balance to an amount not less than the amount
considered necessary to pay Operation and Maintenance Costs for the then current
month.
(b) Accounts Created Pursuant to Future Bond Ordinances:
Future Bond Ordinances may create additional accounts in the Fund for the
payment and security of waterworks and sewerage revenue bonds that hereafter
may be issued by the City. Amounts in the Fund shall be credited to and
transferred from said accounts in accordance with the terms of the Future Bond
Ordinances.
(c) Depreciation Account:
Beginning the month after the delivery of the Bonds, there shall be credited to the
Depreciation Account and held, in cash and investments, such sum as the
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Corporate Authorities may deem necessary in order to provide an adequate
depreciation fund for the System. In Future Bond Ordinances, the City may
covenant to make specific monthly deposits to said Depreciation Account and to
accumulate funds therein.
Amounts to the credit of said Depreciation Account shall be used for (i) the
payment of the cost of extraordinary maintenance, necessary repairs and
replacements, or contingencies, the payment for which no other funds are
available, in order that the System may at all times be able to render efficient
service, (ii) for the purpose of acquiring or constructing improvements and
extensions to the System, and (iii) the payment of principal of or interest and
applicable premium on any Outstanding Bonds at any time when there are no
other funds available for that purpose in order to prevent a default. Future Bond
Ordinances may provide for additional deposits to said Depreciation Account and
additional uses and transfers of the funds on deposit in said Depreciation Account.
(d) Surplus Account:
All moneys remaining in the Fund, after crediting the required amounts to the
respective accounts hereinabove provided for, and after making up any deficiency
in said accounts, shall be credited to the Surplus Account. Funds in the Surplus
Account shall first be used to make up any subsequent deficiencies in any of said
accounts and then shall be deposited to a separate and segregated account hereby
created and designated the "Alternate Bond and Interest Subaccount of the
Surplus Account" (the "Alternate Bond and Interest Subaccount "), as follows:
A. Upon the delivery of any of the Bonds, there shall be paid into the
Alternate Bond and Interest Subaccount in each month after the required
payments have been made into the Accounts above described, a fractional amount
of the interest becoming due on the next succeeding interest payment date on all
Outstanding Bonds and Outstanding Alternate Bonds and a fractional amount of
the principal becoming due on the next succeeding principal maturity date of all
Outstanding Bonds and Outstanding Alternate Bonds and until there shall have
been accumulated in the Alternate Bond and Interest Subaccount on or before the
month preceding such maturity date of interest or principal, an amount sufficient
to pay such principal or interest, or both, of all Outstanding Bonds and
Outstanding Alternate Bonds.
B. In computing the fractional amount to be set aside each month in said
Alternate Bond and Interest Subaccount, the fraction shall be so computed that
sufficient funds will be set aside in said Subaccount and will be available for the
prompt payment of such principal of and interest on all Outstanding Bonds and
Outstanding Alternate Bonds as the same will become due and shall be not less
than one -sixth of the interest becoming due on the next succeeding interest
payment date and not less than one - twelve of the principal becoming due on the
next succeeding principal payment date on all Outstanding Bonds and
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Outstanding Alternate Bonds until there is sufficient money in said Subaccount to
pay such principal or interest or both.
C. Credits to the Alternate Bond and Interest Subaccount may be
suspended in any Fiscal Year at such time as there shall be a sufficient sum, held
in cash and investments, in said Subaccount to meet principal and interest
requirements in said Subaccount for the balance of such Fiscal Year, but such
credits shall be resumed at the beginning of the next Fiscal Year.
D. All moneys in said Subaccount shall be used only for the purpose of
paying interest on and principal of Outstanding Bonds, Outstanding Alternate
Bonds and Additional Bonds.
E. The portion of the Pledged Revenues not constituting Revenues,
namely, (i) all collections distributed to the City pursuant to the State Revenue
Sharing Act from those taxes imposed by the State of Illinois pursuant to
subsections (a) and (c) of Section 201 of the Illinois Income Tax Act, as
supplemented and amended from time to time, or substitute taxes therefor as
provided by the State of Illinois in the future, and (ii) such other funds of the City
as may be necessary and on hand from time to time and lawfully available for
such purpose, shall also be deposited in the Alternate Bond and Interest
Subaccount from time to time, as necessary to provide for payment of the
principal of and interest on the Bonds.
F. Any funds remaining in the Surplus Account after the making the
aforesaid deposits to the credit of the Alternate Bond and Interest Subaccount, at
the discretion of the Corporate Authorities shall be used for the purpose of paying
debt service in connection with those certain loan agreements with the State of
Illinois, acting through the Illinois Environmental Protection Agency, and then for
any purpose enumerated in any Future Bond Ordinance or for any other lawful
System purpose.
Moneys to the credit of the Waterworks and Sewerage Fund may be invested pursuant to
any authorization granted to municipal corporations by Illinois statute or court decision.
Section 12. 2007A Alternate Bond Fund. There is hereby created a special fund of the
City, which fund shall be held separate and apart from all other funds and accounts of the City
and shall be known as the "2007A Alternate Bond Fund" (the "Bond Fund "). The purpose of
the Bond Fund is to provide a fund to receive and disburse the Pledged Taxes for any (or all) of
the Bonds. All payments made with respect to the Bonds from the Pledged Revenues shall be
made directly from the Alternate Bond and Interest Subaccount of the Waterworks and Sewerage
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Fund. The Bond Fund constitutes a trust fund established for the purpose of carrying out the
covenants, terms and conditions imposed upon the City by this Ordinance.
Any Pledged Taxes received by the City shall promptly be deposited into the Bond Fund.
Pledged Taxes on deposit to the credit of the Bond Fund shall be fully spent to pay the principal
of and interest and premium, if any, on the Bonds prior to use of any moneys on deposit in the
Alternate Bond and Interest Subaccount.
Section 13. Use of Bond Proceeds. The proceeds derived from the sale of the Bonds
shall be used as follows:
A. Accrued interest, if any, received by the City upon the sale of the Bonds
shall be remitted by the City Treasurer for deposit into the Alternate Bond and Interest
Subaccount and be used to pay first interest coming due on the Bonds or be deposited
into the Escrow Account as set forth in the Escrow Agreement.
B. The City shall then allocate from the Bond proceeds the sum necessary for
expenses incurred in the issuance of the Bonds which shall be deposited into an "Expense
Fund" to be maintained by the City Treasurer and disbursed for such issuance expenses
from time to time in accordance with usual City procedures for the disbursement of
funds, which disbursements are hereby expressly authorized. Moneys not disbursed from
the Expense Fund within 6 months shall be transferred by the City for deposit in the
Alternate Bond and Interest Subaccount, and any deficiencies in the Expense Fund shall
be paid by disbursement from the Alternate Bond and Interest Subaccount.
C. The sum of principal proceeds of the Bonds as is necessary, together with
such money in the debt service funds for the Refunded Obligations as may be advisable
for the purpose, shall be used to provide for the Refunding, and the payment of such
expenses as may be designated, pursuant to the provisions of the Escrow Agreement with
the Escrow Agent, all in accordance with the provisions of an Escrow Agreement,
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substantially in the form attached hereto as Exhibit A to this Ordinance, made a part
hereof by this reference, and hereby approved; the officers appearing signatory to such
Escrow Agreement are hereby authorized and directed to execute same, their execution to
constitute conclusive proof of action in accordance with this Ordinance, and approval of
all completions or revisions necessary or appropriate to effect the Refunding. The City
expressly authorizes the use of the Government Obligations as set forth in the Escrow
Account as set forth in the Escrow Agreement.
Section 14. Pledged Taxes; Tax Levy. For the purpose of providing additional funds to
pay the principal of and interest on the Bonds, and as provided in Section 15 of the Act, there is
hereby levied upon all of the taxable property within the City, in the years for which any of the
Bonds are Outstanding, a direct annual tax in amounts sufficient for that purpose, and there be
and there hereby is levied upon all of the taxable property in the City the following direct annual
taxes (the "Pledged Taxes "):
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
2007 $1,000,000 for principal and interest up to and including
December 30, 2008
2008 $1,000,000 for principal and interest
2009 $1,000,000 for principal and interest
2010 $1,000,000 for principal and interest
2011 $1,000,000 for principal and interest
2012 $1,000,000 for principal and interest
2013 $1,000,000 for principal and interest
2014 $1,000,000 for principal and interest
2015 $1,000,000 for principal and interest
2016 $1,000,000 for principal and interest
2017 $1,000,000 for principal and interest
2018 $1,000,000 for principal and interest
2019 $1,000,000 for principal and interest
2020 $1,000,000 for principal and interest
2021 $1,000,000 for principal and interest
Interest or principal coming due at any time when there are insufficient funds on hand
from the Pledged Moneys to pay the same shall be paid promptly when due from current funds
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on hand in advance of the collection of the Pledged Moneys herein pledged and levied; and when
the Pledged Moneys shall have been collected, reimbursement shall be made to said funds in the
amount so advanced.
The City covenants and agrees with the purchasers and the owners of the Bonds that so
long as any of the Bonds remain outstanding, the City will take no action or fail to take any
1 action which in any way would adversely affect the ability of the City to collect the Pledged
Revenues or to levy and collect the Pledged Taxes. The City and its officers will comply with all
present and future applicable laws in order to assure that the Pledged Revenues will be available
and that the Pledged Taxes will be levied, extended and collected as provided herein and
deposited in the Bond Fund.
To the extent that the taxes levied above exceed the amount necessary to pay debt service
on the Bonds as set forth in the Bond Notification, the Mayor, City Clerk and City Treasurer are
hereby authorized to direct the abatement of such taxes to the extent of the excess of such levy in
the year over the amount of debt service payable on the Bonds in the year in which such taxes
are collectible. Proper notice of such abatement shall be filed with the County Clerk in a timely
manner to effect such abatement.
Section IS. Filing with County Clerk. After this Ordinance becomes effective, a copy
hereof, certified by the City Clerk or duly authorized City Clerk, shall be filed with the County
Clerk. The County Clerk shall in and for each of the years required ascertain the rate percent
required to produce the aggregate Pledged Taxes hereinbefore provided to be levied in each of
said years; and the County Clerk shall extend the same for collection on the tax books in
connection with other taxes levied in said years in and by the City for general corporate purposes
of the City; and the County Clerk, or other appropriate officer or designee, shall remit the
Pledged Taxes for deposit to the credit of the Bond Fund, and in said years the Pledged Taxes
shall be levied and collected by and for and on behalf of the City in like manner as taxes for
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general municipal purposes of the City for said years are levied and collected, and in addition to
and in excess of all other taxes. The Pledged Taxes are hereby irrevocably pledged to and shall
be used only for the purpose of paying principal of and interest on the Bonds.
Section 16. Abatement of Pledged Taxes. As provided in the Act, whenever the
Pledged Revenues shall have been determined by the City Treasurer to provide in any calendar
j year an amount not less that 1.25 times debt service of all Bonds in the next succeeding bond
year (June 30 and December 30), and whenever monies have been deposited to the credit of the
Alternate Bond and Interest Subaccount in an amount sufficient to pay debt service on all
outstanding Bonds in the next succeeding bond year (other than for the debt service on the Bonds
due on June 30 and December 30, 2007), the City Treasurer shall, prior to the time the Pledged
Taxes levied in such calendar year are extended, direct the abatement of the Pledged Taxes, and
proper notification of such abatement shall be filed with the County Clerk in a timely manner to
effect such abatement.
Section 17. General Covenants. The City covenants and agrees with the registered
owners of the Bonds that, so long as any Bonds remain Outstanding:
A. The City hereby pledges the Pledged Revenues to the payment of the Bonds,
and the Corporate Authorities covenants and agrees to provide for, collect and apply the
Pledged Revenues to the payment of the Outstanding Alternate Bonds and the Bonds, and
the provision of not less than an additional 0.25 times debt service on the Outstanding
Alternate Bonds and the Bonds, all in accordance with Section 15 of the Act.
B. The City will punctually pay or cause to be paid from the Alternate Bond
and Interest Subaccount and from the Bond Fund the principal of, interest on and
premium, if any, to become due in respect to the Bonds in strict conformity with the
terms of the Bonds and this Ordinance, and it will faithfully observe and perform all of
the conditions, covenants and requirements thereof and hereof.
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C. The City will pay and discharge, or cause to be paid and discharged, from
the Alternate Bond and Interest Subaccount and the Bond Fund any and all lawful claims
which, if unpaid, might become a lien or charge upon the Pledged Revenues or Pledged
Taxes, or any part thereof, or upon any funds in the hands of the Bond Registrar, or
which might impair the security of the Bonds. Nothing herein contained shall require the
City to make any such payment so long as the City in good faith shall contest the validity
of said claims.
D. The City will keep, or cause to be kept, proper books of record and
accounts, separate from all other records and accounts of the City, the Pledged Revenues,
related Pledged Taxes, the Alternate Bond and Interest Subaccount and the Bond Fund.
Such books of record and accounts shall at all times during business hours be subject to
the inspection of the registered owners of not less than ten percent (10 %) of the principal
amount of the Outstanding Bonds or their representatives authorized in writing.
E. The City will preserve and protect the security of the Bonds and the rights of
the registered owners of the Bonds, and will warrant and defend their rights against all
claims and demands of all persons. From and after the sale and delivery of any of the
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Bonds by the City, the Bonds shall be incontestable by the City.
F. The City will adopt, make, execute and deliver any and all such further
ordinances, resolutions, instruments and assurances as may be reasonably necessary or
proper to carry out the intention of, or to facilitate the performance of, the Outstanding
Alternate Bond Ordinances and this Ordinance, and for the better assuring and
confirming unto the registered owners of the Bonds of the rights and benefits provided in
this Ordinance.
G. As long as any Bonds are Outstanding, the City will continue to deposit
monies to the Alternate Bond and Interest Subaccount and, if necessary, the Pledged
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Taxes to the Bond Fund. The City covenants and agrees with the purchasers of the
Bonds and with the registered owners thereof that so long as any Bonds remain
Outstanding, the City will take no action or fail to take any action which in any way
would adversely affect the ability of the City to levy the Pledged Taxes and to collect and
to segregate the Pledged Moneys. The City and its officers will comply with all present
and future applicable laws in order to assure that the Pledged Taxes can be levied and
extended and that the Pledged Revenues and the Pledged Taxes may be collected and
deposited to the Alternate Bond and Interest Subaccount and the Bond Fund,
respectively, as provided herein.
H. Once issued, the Bonds shall be and forever remain until paid or defeased
the general obligation of the City, for the payment of which its full faith and credit are
pledged, and shall be payable, in addition to the Pledged Revenues, from the levy of the
Pledged Taxes as provided in the Act.
I. The City will maintain the System in good repair and working order, will
operate the same efficiently and faithfully, and will punctually perform all duties with
respect thereto required by the Constitution and laws of the State of Illinois and the
United States of America.
J. The City will establish and maintain at all times reasonable fees, charges,
and rates for the use and service of the System and will provide for the collection thereof
and the segregation and application of the Revenues in the manner provided by this
Ordinance, sufficient at all times to pay Operation and Maintenance Costs, to provide an
adequate depreciation fund, to pay the principal of and interest on all revenue bonds of
the City which by their terms are payable solely from the Revenues, and to provide for
the creation and maintenance and funding of the respective accounts as provided in
Section 11 of this Ordinance; it is hereby expressly provided that the pledge and
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establishment of rates or charges for use of the System shall constitute a continuing
obligation of the City with respect to such establishment and a continuing appropriation
of the amounts received.
K. There shall be charged against all users of the System, including the City,
such rates and amounts for water and sewerage services as shall be adequate to meet the
requirements of this section. Charges for services rendered the City shall be made
against the City, and payment for the same shall be made monthly from the corporate
funds into the Waterworks and Sewerage Fund as revenues derived from the operation of
the System.
L. The City will make and keep proper books and accounts (separate and apart
from all other records and accounts of said City), in which complete entries shall be made
of all transactions relating to the System, and hereby covenants that within 180 days
following the close of each Fiscal Year, it will cause the books and accounts of the
System to be audited by independent certified public accountants. Said audit will be
available for inspection by the holders of any of the Bonds. Each such audit, in addition
to whatever matters may be thought proper by the accountants to be included therein,
shall, without limiting the generality of the foregoing, include the following:
1. A statement in detail of income and expenditures of the System for
such Fiscal Year.
2. A balance sheet as of the end of such Fiscal Year, including a
statement of the amount held in each of the accounts of the Waterworks and
Sewerage Fund.
3. A list of all insurance policies in force at the end of the Fiscal Year,
setting out as to each policy the amount of the policy, the risks covered, the name
of the insurer, and the expiration date of the policy, and any amounts held as self -
insurance reserves.
4. The number of sewer customers served by the System at the end of
the year and the quantity of sewage treated, the number of metered water
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customers and the number of unmetered water customers at the end of the year,
the quantity of water pumped and the quantity of water billed.
5. Changes in the cost of purchased water or sewer services during such
Fiscal Year.
6. A summary of rates in effect at the end of such Fiscal Year for
services of the System and any changes in such rates effective during such Fiscal
Y ear.
j 7. The amount and details of all future revenue bonds, Outstanding
Bonds, Outstanding Prior Alternate Bonds, and Outstanding Additional Bonds.
In connection with said audit, the accountant shall deliver a letter or statement regarding
the manner in which the City has carried out the requirements of this Ordinance, and the
accountant's recommendations for any changes or improvements in the financial operation of the
System.
All expenses of the audit required by this section shall be regarded and paid as Operation
and Maintenance Costs.
Section 18. Future Revenue Bonds, Additional Bonds and Subordinate Bonds. The City
reserves the right to issue without limit bonds payable solely and only from the Revenues, which
bonds may have a lien on the Revenues prior to the lien on the Pledged Revenues that secures the
Outstanding Bonds and the Outstanding Alternate Bonds, provided that upon the issuance of
such bonds, the City shall be able to demonstrate in the same manner as provided by the Act, as
the Act is written at this time, that at such time all Outstanding Bonds and Outstanding Alternate
Bonds could then be issued as if not then having previously been issued; that is, that the
requirements of the Act for the issuance of alternate bonds payable from the Revenues shall have
been met on such date for all Outstanding Bonds and Outstanding alternate Bonds.
The City also reserves the right to issue Additional Bonds from time to time payable from
the Pledged Revenues, and any such Additional Bonds shall share ratably and equally in the
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Pledged Revenues with the Bonds; provided, however, that no Additional Bonds shall be issued
except in accordance with the provisions of the Act as the Act is written at this time.
The City also reserves the right to issue revenue bonds from time to time payable from
the Revenues that are subordinate to the Outstanding Alternate Bonds and Bonds or Additional
Bonds and are payable from the money remaining in the Surplus Account continued hereunder
after making required deposits into the Alternate Bond and Interest Subaccount.
Section 19. Defeasance. Bonds which are no longer Outstanding Bonds as defined in
this Ordinance shall cease to have any lien on or right to receive or be paid from Pledged
Revenues or the Pledged Taxes, and shall no longer have the benefits of any covenant for the
registered owners of Outstanding Bonds as set forth herein as such relates to lien and security for
the Bonds in the Pledged Revenues or the Pledged Taxes.
Section 20. This Ordinance a Contract. The provisions of this Ordinance shall
constitute a contract between the City and the registered owners of the Bonds, and no changes,
additions or alterations of any kind shall be made hereto, except as herein provided.
Section 21. Call of the Refunded Obligations. In accordance with the redemption
provisions of the ordinance authorizing the issuance of the Refunded Obligations, the City by the
Corporate Authorities does hereby make provision for the payment of and does hereby call
(subject only to the delivery of the Bonds) the Refunded Obligations for redemption and
payment prior to maturity on their earliest possible call date, at the redemption price equal to
100% of the principal amount of the Refunded Obligations being redeemed, plus accrued interest
to the date of redemption.
Section 22. Bond Registrar Covenants. If requested by the Bond Registrar, the Mayor
and City Clerk are authorized to execute the Bond Registrar's standard form of agreement
between the City and the Bond Registrar with respect to the obligations and duties of the Bond
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Registrar hereunder. Subject to modification by the express terms of any such agreement, such
duties shall include the following:
(a) to act as bond registrar, authenticating agent, paying agent and transfer agent
as provided herein;
(b) to maintain a list of Bondholders as set forth herein and to furnish such list
to the City upon request, but otherwise to keep such list confidential to the extent
permitted by law;
(c) to give notice of redemption of Bonds as provided herein;
(d) to cancel and /or destroy Bonds which have been paid at maturity or upon
earlier redemption or submitted for exchange or transfer;
(e) to furnish the City at least annually a certificate with respect to Bonds
cancelled and /or destroyed; and
(f) to furnish the City at least annually an audit confirmation of Bonds paid,
Outstanding Bonds and payments made with respect to interest oil the Bonds.
The City Clerk is hereby directed to file a certified copy of this Ordinance with the Bond
Registrar.
Section 23. Non- Arbitrage and Tax - Exemption. The City hereby covenants that it will
not take any action, omit to take any action or permit the taking or omission of any action within
its control (including, without limitation, making or permitting any use of the proceeds of the
Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be
an arbitrage bond or a private activity bond within the meaning of the IRC, or would otherwise
cause the interest on the Bonds to be included in the gross income of the recipients thereof for
federal income tax purposes. The City acknowledges that, in the event of an examination by the
Internal Revenue Service of the exemption from Federal income taxation for interest paid on the
Bonds, under present rules, the City is treated as the "taxpayer" in such examination and agrees
that it will respond in a commercially reasonable manner to any inquiries from the Internal
Revenue Service in connection with such an examination.
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The City also agrees and covenants with the purchasers and holders of the Bonds from
time to time outstanding that, to the extent possible under Illinois law, it will comply with
whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax-
exempt status of the Bonds.
The Corporate Authorities hereby authorize the officials of the City responsible for
issuing the Bonds, the same being the Mayor, City Clerk and City Treasurer to make such further
covenants and certifications as may b e necessar y to assure that the use thereof will not cause the
Bonds to be arbitrage bonds and to assure that the interest on the Bonds will be exempt from
federal income taxation. In connection therewith, the City and the Corporate Authorities further
agree: (a) through their officers, to make such further specific covenants, representations as shall
be truthful, and assurances as may be necessary or advisable; (b) to consult with counsel
approving the Bonds and to comply with such advice as may be given; (c) to pay to the United
States, as necessary, such sums of money representing required rebates of excess arbitrage
profits relating to the Bonds; (d) to file such forms, statements, and supporting documents as
may be required and in a timely manner; and (e) if deemed necessary or advisable by their
officers, to employ and pay fiscal agents, financial advisors, attorneys, and other persons to assist
the City in such compliance.
Section 24. Registered Form. The City recognizes that IRC Section 149 requires the
Bonds to be issued and to remain in fully registered form in order for the interest thereon to be
and remain Tax - Exempt. In this connection, the City agrees that it will not take any action to
permit the Bonds to be issued in, or converted into, bearer or coupon form.
Section 25. Municipal Bond Insurance. In the event the payment of principal of and
interest on the Bonds is insured pursuant to a municipal bond insurance policy (a "Municipal
Bond Insurance Policy ") issued by a bond insurer (a "Bond Insurer "), and as long as such
Municipal Bond Insurance Policy shall be in full force and effect, the City and the Bond
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Registrar agree to comply with such usual and reasonable provisions regarding presentment and
payment of the Bonds, subrogation of the rights of the Bondholders to the Bond Insurer when
holding Bonds, amendment hereof, or other terms, as approved by the Mayor on advice of
counsel, his approval to constitute full and complete acceptance by the City of such terms and
provisions under authority of this section.
Section. 26. Continuing Disclosure Undertaking. The Mayor or City Treasurer is
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hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure
Undertaking (the "Continuing Disclosure Undertaking") in substantially the same form as now
before the Corporate Authorities, or with such changes therein as the individual executing the
Continuing Disclosure Undertaking on behalf of the City shall approve, the official's execution
thereof to constitute conclusive evidence of the approval of such changes. When the Continuing
Disclosure Undertaking is executed and delivered on behalf of the City as herein provided the
Continuing Disclosure Undertaking will be binding on the City and the officers, employees and
agents of the City, and the officers, employees and agents of the City are hereby authorized,
empowered and directed to do all such acts and things and to execute all such documents as may
be necessary to carry out and comply with the provisions of the Continuing Disclosure
Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole
remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of
the beneficial owner of any Bond to seek mandamus or specific performance by court order, to
cause the City to comply with its obligations under the Continuing Disclosure Undertaking.
Section 27. Severability. If any section, paragraph, clause or provision of this
Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision
shall not affect any of the other provisions of this Ordinance.
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Section 28. Repealer. All ordinances, resolutions or orders, or parts thereof, in conflict
with the provisions of this Ordinance are to the extent of such conflict hereby repealed.
Section 29. Effective Date. This Ordinance shall be effective immediately.
ADOPTED by the City Council on the 23rd day of January, 2007, pursuant to a roll call
vote as follows:
PAUL JAMES MARTY MUNNS
JASON LESLIE JIM BOCK
VALERIE BURD ROSE SPEARS
DEAN WOLFER .JOSEPH BESCO
APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, the
23rd day of January, 2007.
A
MAYOR
PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois, the
23rd day of January, 2007.
Attes z: ;; �
��— CIT' CLERK
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EXHIBIT A
ESCROW AGREEMENT
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Alderman moved and Alderman w4tY seconded
the motion that said ordinance as presented and read by title by the City Clerk be adopted.
After a full and complete discussion thereof, including a public recital of the nature of the
matter being considered and such other information as would inform the public of the business
being conducted, the Mayor directed that the roll be called for a vote upon the motion to adopt
the ordinance as read.
Upon the roll being called, the following Aldermen voted
AYE: �"14) � J t. b - patt-d '1
co
NAY:
ABSENT: 1 ! ►M�h
Whereupon the Mayor declared the motion carried and the ordinance adopted, and
henceforth did approve and sign the same in open meeting and did direct the City Clerk to record
the same in full in the records of the City Council of the City.
Other business not pertinent to the adoption of said ordinance was duly transacted at said
meeting.
Upon motion duly made and seconded, the meeting was adjourned.
o
�y-�l
STATE OF ILLINOIS )
SS
COUNTY OF KENDALL )
CERTIFICATION OF ORDINANCE AND MINUTES
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the United City of Yorkville, Kendall County, Illinois (the "City "), and as such officer I am the
keeper of the books, records, files, and journal of proceedings of the City and of the City Council
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(the "Corporate Authorities ") thereof.
I do further certify that the foregoing constitutes a full, true and complete transcript of the
minutes of the legally convened meeting of the Corporate Authorities held on the 23rd day of
January, 2007, insofar as same relates to the adoption of an ordinance numbered v
entitled:
AN ORDINANCE authorizing and providing for the issue of not to
exceed $3,500,000 General Obligation Refunding Bonds (Alternate
Revenue Source), Series 2007A, of the United City of Yorkville,
Kendall County, Illinois, for the purpose of refunding a portion of the
City's outstanding Debt Certificates, Series 2003, prescribing the
details of said bonds, and providing for the imposition of taxes to pay
the same, and for the collection, segregation and application of the
waterworks and sewerage system revenues to pay said Bonds.
a true, correct and complete copy of which said ordinance as adopted at said meeting appears in
the foregoing transcript of the minutes of said meeting.
I do further certify that the deliberations of the Corporate Authorities on the adoption of
said ordinance were taken openly; that the vote on the adoption of said ordinance was taken
openly; that said meeting was held at a specified time and place convenient to the public; that
notice of said meeting was duly given to all of the news media requesting such notice of said
meeting was duly given to all of the news media requesting such notice; that an agenda for said
meeting was posted at the location where said meeting was held and at the principal office of the
Corporate Authorities at least 96 hours in advance of the holding of said meeting, that said
1
agenda contained a separate specific item concerning the proposed adoption of said ordinance, a
true, correct and complete copy of said agenda as so posted being attached to this certificate as
Exhibit A, that said meeting was called and held in strict accordance with the provisions of the
Open Meetings Act of the State of Illinois, as amended; and that the Corporate Authorities have
complied with all of the applicable provisions of said Act and their procedural rules in the
adoption of said ordinance.
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IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the
City this 23rd day of January, 2007.
�,-C1t-Y)CIDI 0
I S EAL
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EXTRACT OF MINUTES of a regular public meeting of the City
Council of the United City of Yorkville, Kendall County, Illinois,
held at the City Hall, located at 800 Game Farm Road, in said City,
at 7:00 p.m., on the 23rd day of January, 2007,
The Mayor called the meeting to order and directed the City Clerk to call the roll.
Upon roll call, , the Mayor, and the following Aldermen
were physically present at said location: —ELOW , yx)LY— VW11
ODD �Iy lod .�
1
The following Aldermen were allowed by a majority of the members of the City Council
in accordance with and to the extent allowed by rules adopted by the City Council to attend the
meeting by video or audio conference:
No Alderman was not permitted to attend the meeting by video or audio conference.
The following Aldermen were absent and did not participate in the meeting in any
manner or to any extent whatsoever: ma)
Alderman presented, and the City Clerk read by title an
ordinance as follows, a copy of which was provided to each Alderman prior to said meeting and
to everyone in attendance at said meeting who requested a copy:
1
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2137713.01.09.B.doe
2143501 • KK • 2/22/07