Resolution 1995-03 STATE OF ILLINOIS )
) SS,
COUNTY OF KENDALL )
RESOLUTION NO. 1995-
RESOLUTION AUTHORIZING THE UNITED CITY
OF THE VILLAGE OF YORKVILLE TO BORROW FUNDS
WHEREAS, the Mayor and City Council of the UNITED CITY OF THE VILLAGE OF
YORKVILLE have deemed it in their best interest to provide for the orderly cash flow of funds;
and
WHEREAS, the UNITED CITY OF THE VILLAGE OF YORKVILLE previously
adopted a Resolution authorizing borrowing of funds to complete both a North and South
Interceptor Project,; and
WHEREAS, the UNITED CITY OF THE VILLAGE OF YORKVILLE has had an outside
financial planner from FIRSTAR CORPORATION review the City's finances, consider cash flow
projections, consider expansion of existing City utilities, and the need for provision of continued
City services, and to provide for the orderly financing of those City services on a current basis
in between receipt of revenues from sales tax, utility tax, real estate tax, and other sources:
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AND THE MAYOR
OF THE UNTIED CITY OF THE VILLAGE OF YORKVILLE THAT THEY ARE HEREBY
AUTHORIZED TO BORROW THE SUM OF SIX HUNDRED THOUSAND AND 00/100
DOLLARS ($600,000.00) FROM YORKVILLE NATIONAL BANK, ON THE TERMS AND
CONDITIONS AS SET OUT IN THE ATTACHED COMMITMENT FOR LOAN, DATED
FEBRUARY 14, 1995 FROM YORKVILLE NATIONAL BANK.
Said funds shall be repaid on a current basis out of general revenues of the UNITED
CITY OF THE VILLAGE OF YORKVILLE, with interest paid quarterly, and an annual
reduction to principal. The Promissory Note securing said obligation shall run for a period of
three (3) years with principal reductions to be made on a ten year amortization basis. Any
renewals of said loan shall be by Resolution and at current interest rates at the time of renewal,
if any. Interest shall be charged on this non-revolving line of credit at the rate of 5.3%.
n
PASSED THIS �� DAY OF FEBRUARY, 1995.
kkNETH K. OE, M or
ATTEST; 6L C �-L�z 7.c C�
C6 Clerk
Law Offices of Daniel J. Kramer
1107A S. Bridge Street
Yorkville, IL 60560
708-553-9500
2
C7
Yorkville
National
Bank
February 14, 1995
Jim Nanninga
City of Yorkville
610 Tower Ln.
Yorkville, Il 60560
Dear Jim:
As I discussed with you over the phone, Yorkville National Bank has
approved your financing request . our loan approval calls for the
following terms and conditions :
Borrower: City of Yorkville
Amaunt : 1) New $404, 000 non-revolving line of credit
2) New $200, 000 non-revolving line of credit
By establishing non-revolving lines of credit, the city would
have access to the funds, but would only pay interest on the
amount of money actually outstanding and needed at a given
point in time.
Rate : 5.3k
Repayment
Terms Interest paid quarterly, with an annual reduction to
principal . The note would run for 3 years with
principal reductions based on a 10 year amortization.
Any renewals of the loan beyond the three year time
period would be at market rates then in effect .
Additional
Items These debts are general obligations of the City of
Yorkville . Prior to funding any monies under these
commitments, we will need to have appropriate city
resolutions authorizing the city to enter into these
transactions, as well as who may sign the notes on
behalf of the city. In addition, we will need an
opinion letter from the city attorney as to the tax
exempt status . As far as reporting requirements, we
expect to receive a copy of the city' s final budget for
102 East Van Emmon • Yorkville,Illinois 60560 - (708)553.4230
An Old Second
Bancorp Bank
Page 2
Additional
Items each fiscal year in which the loan remains outstanding,
as well as the city' s annual audited statement prepared
by the city' s outside accounting firm.
This commitment will expire April 30, 1995 unless funded prior to
then. After that date we will be happy to consider renewing the
commitment based on the city' s financial condition and interest
rate market . Should you have any questions regarding these terms,
please feel free to contact Jim Liggett or myself at the bank.
Sincerely,
Philip Haugen
Vice President
PH/is