Ordinance 2016-55 MR OF mums
COUNTY OF IEOU.
FILED
OCT 2 6 2016
6: COUNTY CLERK
l KENDALL COUNTY
UNITED CITY OF YORKVILLE
KENDALL COUNTY, ILLINOIS
ORDINANCE NO. 2016-55
AN ORDINANCE authorizing and providing for the issuance of General Obligation
Refunding Bonds (Alternate Revenue Source), Series 2016, of the United City of
Yorkville, Kendall County, Illinois, in the aggregate principal amount of
$5,800,000, for the purpose of refunding certain of the City's outstanding debt
certificates and alternate revenue bonds, authorizing the execution of an escrow
agreement in connection therewith, providing for the imposition of taxes to pay
the same and for the collection, segregation and distribution of certain City
revenues for the payment of said bonds, and the abatement of a portion of taxes
previously levied.
Published in pamphlet form
by authority of the
the City Council of the
United City of Yorkville,
Kendall County, Illinois,this
26th day of October,2016
ORDINANCE NO. o2O I(p-iJ 6
AN ORDINANCE authorizing and providing for the issuance of
General Obligation Refunding Bonds (Alternate Revenue Source),
Series 2016, of the United City of Yorkville, Kendall County,
Illinois, in the aggregate principal amount of $5,800,000, for the
purpose of refunding certain of the City's outstanding debt
certificates and alternate revenue bonds, authorizing the execution
of an escrow agreement in connection therewith, providing for the
imposition of taxes to pay the same and for the collection,
segregation and distribution of certain City revenues for the
payment of said bonds, and the abatement of a portion of taxes
previously levied.
WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City"), is a duly
organized and existing municipality incorporated and existing under the provisions of the laws of
the State of Illinois, is now operating under the provisions of the Illinois Municipal Code, as
amended (the "Code"), and for many years has owned and operated a municipally-owned
combined waterworks and sewerage system (the "System") pursuant to Division 139 of Article
11 of the Code; and
WHEREAS, the City by its City Council (the "Corporate Authorities") has heretofore
issued its Refunding Debt Certificates, Series 2006A (the "2006A Debt Certificates") and its
General Obligation Refunding Bonds (Alternate Revenue Source), Series 2007A (the "2007A
Bonds" and, together with the 2006A Debt Certificates, the "Outstanding Obligations"), which
Outstanding Obligations were issued for System purposes and which are binding and subsisting
legal obligations of the City; and
WHEREAS, that portion of the Outstanding Obligations consisting of the 2006A Debt
Certificates coming due December 30, 2017 through December 30, 2022 are subject to
redemption at the option of the City on any date on and after December 30, 2016, at a
redemption price of par, plus accrued interest to the dated fixed for redemption, as provided in
the ordinance of the Corporate Authorities authorizing the issuance of the 2006A Debt
Certificates; and
WHEREAS, that portion of the Outstanding Obligations consisting of the 2007A Bonds
coming due December 30, 2017 through December 30, 2022 are subject to redemption at the
option of the City on any date on and after December 30, 2016, at a redemption price of par, plus
accrued interest to the dated fixed for redemption, as provided in the ordinance of the Corporate
Authorities authorizing the issuance of the 2007A Bonds; and
WHEREAS, the Corporate Authorities have considered and determined that since interest
rates are more favorable for the City at this time, it is possible, proper and advisable, and in the
best interests of the City, to refund a portion of the Outstanding Obligations (the"Refunding") on
December 30, 2016(the"Redemption Date")in order to achieve debt service savings; and
WHEREAS, pursuant to the provisions of the Local Government Debt Reform Act of the
State of Illinois, as supplemented and amended(the"Debt Reform Act"), and particularly Section
15 of the Debt Reform Act (pursuant to which alternate revenue bonds are authorized to be
issued), the City may issue its alternate revenue bonds to refund or advance refund alternate
revenue bonds previously issued by the City(such as the 2007A Bonds) without meeting any of
the conditions set forth in the Debt Reform Act and Section 15 thereof, provided that the term of
the refunding bonds shall not be longer than the term of the refunded bonds and that the debt
service payable in any year on the refunding bonds shall not exceed the debt service payable in
such year on the refunded bonds; and
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WHEREAS, the Debt Reform Act, and particularly Section 15 thereof, does not, however,
allow the City to issue its alternate revenue bonds to refund or advance refund non-alternate
revenue bonds previously issued by the City (such as the 2006A Debt Certificates) unless the
City has satisfied the conditions set forth in the Debt Reform Act and Section 15 thereof; and
WHEREAS, for the purpose of providing funds to pay the costs of the Refunding and in
accordance with the provisions of the Debt Reform Act, the Corporate Authorities, on the 28th
day of June, 2016, adopted Ordinance No. 2016-41 (the "Revenue Bond Authorizing
Ordinance"), authorizing the issuance of Waterworks and Sewerage Revenue Refunding Bonds
(the"Revenue Bonds"), as provided in the Code, in an amount not to exceed$6,400,000; and
WHEREAS,pursuant to Section 15 of the Debt Reform 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 Debt Reform Act, the Corporate Authorities, on the 28th
day of June, 2016, adopted Ordinance No. 2016-42 (the "Alternate Bond Authorizing
Ordinance"), authorizing the issuance of its General Obligation Refunding Bonds (Alternate
Revenue Source), Series 2016 (the "Alternate Bonds"), as provided in the Debt Reform Act, in
an aggregate principal amount not to exceed$6,400,000; and
WHEREAS, on the 1St day of July, 2016,the Revenue Bond Authorizing Ordinance and the
Alternate Bond Authorizing Ordinance, together with a separate notices in statutory form, were
published in the Aurora Beacon-News, the same being a newspaper of general circulation in the
City, and affidavits evidencing the publication of the Revenue Bond Authorizing Ordinance and
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the Alternate Bond Authorizing Ordinance and said notices 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
Revenue Bond Authorizing Ordinance and the Alternate Bond Authorizing Ordinance and said
notices, 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, pursuant to and in accordance with the provisions of the Bond Issue
Notification Act of the State of Illinois, the Corporate Authorities, on the 28th day of June, 2016,
adopted Ordinance No. 2016-43, calling a public hearing (the "Hearing") for the 26th day of
July, 2016, concerning the intent of the Corporate Authorities to sell not to exceed $6,400,000
General Obligation Alternate Revenue Bonds; and
WHEREAS, notice of the Hearing was given (i) by publication at least once not less than
seven (7) nor more than thirty (30) days before the date of the Hearing in the Aurora Beacon-
News, 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 26th day of July, 2016, 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 26th day of July, 2016, and not less
than seven(7) days have passed since the final adjournment of the Hearing; and
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WHEREAS, the Corporate Authorities are now authorized to issue the Revenue Bonds to
the amount of$6,400,000, or, in lieu thereof, the Alternate Bonds to the amount of$6,400,000 in
accordance with the provisions of the Debt Reform Act, and the Corporate Authorities hereby
determine that it is necessary and desirable that there be issued at this time $5,800,000 of the
Alternate Bonds so authorized(the"Bonds") for the Refunding and in order to effect a savings in
debt service; and
WHEREAS, the Bonds will be payable from the Pledged Revenues and the Pledged Taxes
(as said terms are hereinafter defined); and
WHEREAS, the Bonds will be issued on a parity with the Outstanding Alternate Bonds (as
hereinafter defined), and be secured ratably and equally by the Pledged Revenues with such
Outstanding Alternate Bonds;
WHEREAS, the Outstanding Alternate Bonds were issued pursuant to the Outstanding
Alternate Bond Ordinances (as hereinafter defined), in each of which the City expressly reserved
the right to issue"Additional Bonds" as therein defined,provided that certain conditions are met;
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 the final maturity of the
Bonds all of the following: (i) Operation and Maintenance Expenses as hereinafter defined, but
not including depreciation, (ii) debt service on all outstanding revenue bonds, if any, payable
from the Pledged Revenues, (iii) all amounts required to meet any fund or account requirements
with respect to such outstanding revenue bonds, (iv) other contractual or tort liability obligations,
if any, payable from the Pledged Revenues, and (v) in each year, an amount not less than 1.25
times debt service of the Bonds proposed to be issued and the Outstanding Alternate Bonds; and
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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, the estimated costs of the Refunding, plus all related costs and expenses
incidental thereto, is $5,800,000,plus investment earnings thereon; and
WHEREAS, the City does not have sufficient funds on hand and lawfully available to
provide for the Refunding and the payment of all related costs and expenses incidental thereto;
and
WHEREAS, the Refunding constitutes a lawful corporate purpose within the meaning of
the Debt Reform Act; and
WHEREAS, the Property Tax Extension Limitation Law of the State of Illinois, as
amended ("PTELL"), 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 PTELL does not include extensions made for any taxing district subject to PTELL
to pay interest or principal on bonds issued under Section 15 of the Debt Reform Act; and
WHEREAS, the County Clerk of the County of Kendall, Illinois is therefore authorized to
extend and collect said property taxes so levied for the payment of the Bonds, as alternate bonds,
without limitation as to rate or amount;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE UNITED
CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, AS FOLLOWS:
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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 to be issued subsequent in time to the
Bonds 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 the Outstanding Alternate Bonds.
"Alternate Bond and Interest Subaccount" means the Alternate Bond and Interest
Subaccount established hereunder and further described by Section 10 of this Ordinance.
"Bond" or "Bonds" means one or more, as applicable, of the $5,800,000 General
Obligation Refunding Bonds (Alternate Revenue Source), Series 2016, authorized to be issued
by the City pursuant to 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 Amalgamated Bank of Chicago, Chicago, Illinois, a bank or
trust company having trust powers, or a successor thereto or a successor designated as Bond
Registrar hereunder.
"City"means the United City of Yorkville, Kendall County, Illinois.
"Clerk"means the Clerk of the City.
"Code"means the Internal Revenue Code of 1986, as amended.
"Corporate Authorities"means the City Council of the City.
"County Clerk"means the County Clerk of the County of Kendall, Illinois.
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"Depository" means The Depository Trust Company, New York, New York, its
successors, or a successor depository qualified to clear securities under applicable state and
federal laws.
"Designated Officers" means the Mayor, the Treasurer, or the Clerk, or any of them
acting together, and their respective successors and assigns.
"Escrow Agent" means Amalgamated Bank of Chicago, Chicago, Illinois, as escrow
agent, or its successors and assigns
"Escrow Agreement" means the agreement by and between the City and the Escrow
Agent authorized under Section 12 of this Ordinance.
"Expense Fund" means the fund established hereunder and further described by Section
12 of this Ordinance.
"Fiscal Year" means a twelve-month period beginning 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.
"Government Securities" means bonds, notes, certificates of indebtedness, treasury bills
or other securities constituting direct obligations of the United States of America and all
securities or obligations, the prompt payment of principal and interest of which is guaranteed by
a pledge of the full faith and credit of the United States of America.
"Mayor"means the Mayor of the City.
"Notice of Sale" means the notice advertising the sale of the Bonds to potential
purchasers.
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"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, numbered as set forth on the title page hereof, passed
by the Corporate Authorities on the 11th day of October, 2016, as supplemented and amended.
"Outstanding" when used with reference to the Bonds, the Outstanding Alternate Bonds
and the Additional Bonds means such of those bonds which are outstanding and unpaid;
provided, however, such term shall not include any of the Bonds, Outstanding Alternate Bonds
or Additional Bonds (i) which have matured and for which moneys are on deposit with proper
paying agents, or are otherwise properly available, sufficient to pay all principal 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 direct, full faith and credit obligations of the United
States of America, the principal and interest of which will be sufficient to pay at maturity or as
called for redemption all the principal of and interest and applicable premium, if any, on such
Bonds, Outstanding Alternate Bonds or Additional Bonds.
"Outstanding Alternate Bond Ordinances" means, collectively, (i) Ordinance Number
2004-10 adopted by the Corporate Authorities on February 24, 2004 authorizing the issuance of
the City's General Obligation Bonds (Alternate Revenue Source), Series 2004B; (ii) Ordinance
Number 2007-02 adopted by the Corporate Authorities on January 23, 2007 authorizing the
issuance of the 2007A Bonds; and (iii) Ordinance Number 2014-65 adopted by the Corporate
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Authorities on July 22, 2014 authorizing the issuance of the City's General Obligation(Alternate
Revenue Source)Refunding Bonds, Series 2014C.
"Outstanding Alternate Bonds" means, collectively, (i) the $3,500,000 original aggregate
principal amount General Obligation Bonds (Alternate Revenue Source), Series 2004B; (ii) the
2007A Bonds; and (iii) the $1,290,000 original aggregate principal amount General Obligation
(Alternate Revenue Source) Refunding Bonds, Series 2014C; less, in each case, any of said
bonds that are no longer"Outstanding"hereunder.
"Paying Agent" means Amalgamated Bank of Chicago, Chicago, Illinois, a bank or trust
company having trust powers, or a successor thereto or a successor designated as Paying Agent
hereunder.
"Pledged Moneys" means the Pledged Revenues and the Pledged Taxes, as all of such
terms are defined herein.
"Pledged Revenues" means (i) moneys 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 the 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 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 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 the taxable property
within the City without limitation as to rate or amount, pledged hereunder by the City as security
for the Bonds.
"Purchase Price" means the purchase price paid for the Bonds as hereinafter authorized,
to wit, $6,249,022.70.
"Purchaser"means Fifth Third Securities, Inc.
"Refunded Obligations"means that portion of the Outstanding Obligations to be refunded
on the Redemption Date pursuant to the terms of this Ordinance and the Escrow Agreement, and
as more particularly identified in Section 12 of this Ordinance.
"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;
and (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
the sale of property of the System; (b) governmental or other grants; and (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.
"Treasurer"means the Treasurer of the City.
"Waterworks and Sewerage Fund" means the Waterworks and Sewerage Fund of the
City created under the Outstanding Alternate Bond Ordinances and continued hereunder.
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Section 2. Incorporation of Preambles; Acceptance of Report. The Corporate
Authorities hereby find that all of the recitals contained in the preambles to this Ordinance are
full, true and correct and do incorporate them into this Ordinance by this reference thereto. 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 hereby found and
determined that it is necessary and in the best interests of the City to borrow money and to issue
the Bonds in the amount of $5,800,000 for the purpose of paying for the Refunding and all
related costs and expenses incidental thereto, and that such borrowing of money is necessary for
the welfare of the government and affairs of the City, is a public purpose and is in the public
interest. 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 the costs of
the Refunding and all related costs and expenses incidental thereto, there shall be issued and sold
the Bonds in the principal amount of$5,800,000. The Bonds shall each be designated "General
Obligation Refunding Bonds (Alternate Revenue Source), Series 2016", shall be dated the date
of issuance thereof (such date being the "Dated Date"), and shall also bear the date of
authentication thereof, shall be in fully registered form, shall be in denominations of$5,000 each
and authorized integral multiples thereof (but no single Bond shall represent installments of
principal maturing on more than one date), and shall be numbered 1 and upward. The Bonds
shall become due and payable on December 30 of the years and in the amounts and bearing
interest at the rates percent per annum as shall be set forth in the following table in the respective
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principal amount set forth opposite each such year, and the Bonds maturing in each such year
shall bear interest at the respective rate per annum set forth opposite such year:
Year Amount($) Interest Rate(%)
2017 430,000 4.000
2018 470,000 4.000
2019 1,470,000 4.000
2020 1,475,000 4.000
2021 1,040,000 3.000
2022 915,000 3.000
Each Bond shall bear interest from the Dated 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 or duly provided for, such interest(computed upon the basis of a 360-day year
of twelve 30-day months)being payable semiannually on June 30 and December 30 of each year,
commencing on June 30, 2017. Interest on each Bond shall be paid by check or draft of the
Paying Agent,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 next preceding the interest payment date, or as otherwise agreed by the City and the
Depository so long as the Bonds remain in book-entry only form as hereinafter provided. The
principal of the Bonds shall be payable in lawful money of the United States of America at the
principal office maintained for the purpose by the Paying Agent in Chicago, Illinois, or at
successor Paying Agent and address.
The Bonds shall be signed by the manual or duly authorized facsimile signature of the
Mayor, and shall be attested by the manual or duly authorized facsimile signature of the Clerk,
and the corporate seal of the City shall be affixed thereto or printed thereon, and in case any
officer whose signature shall appear on any Bond shall cease to be such officer before the
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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 for
this issue 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 the Bond
Registrar 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 5. Redemption. The Bonds are not subject to optional redemption prior to
maturity. Additional Bonds hereinafter issued pursuant to the terms hereof may be redeemable at
such times and upon such terms as may be determined at the time of authorization thereof.
Section 6. Book Entry Provisions; Registration of Bonds; Persons Treated as
Owners.
A. Book Entry Provisions. The Bonds shall be initially issued in the form of a separate
single fully registered Bond for each of the maturities of the Bonds. Upon initial issuance, the
ownership of each such Bond shall be registered in the Bond Register in the name of "Cede &
Co. ", or any successor thereto, as nominee of the Depository. All of the Bonds from time to time
shall be registered in the Bond Register in the name of Cede & Co., as nominee of the
Depository. The Bond Registrar is authorized to execute and deliver on behalf of the City such
letters to or agreements with the Depository as shall be necessary to effectuate such book-entry
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system (any such letter or agreement being referred to herein as the "Representation Letter").
Without limiting the generality of the authority given with respect to entering into such
Representation Letter, it may contain provisions relating to (a)payment procedures, (b) transfers
of the Bonds or of beneficial interests therein, (c) redemption notices and procedures unique to
the Depository, (d) additional notices or communications, and (e) amendment from time to time
to conform with changing customs and practices with respect to securities industry transfer and
payment practices.
With respect to Bonds registered in the Bond Register in the name of Cede & Co., as
nominee of the Depository, the City and the Bond Registrar shall have no responsibility or
obligation to any broker-dealer,bank or other financial institution for which the Depository holds
Bonds from time to time as securities depository (each such broker-dealer, bank or other
financial institution being referred to herein as a "Depository Participant") or to any person on
behalf of whom such a Depository Participant holds an interest in the Bonds. Without limiting
the meaning of the immediately preceding sentence, the City and the Bond Registrar shall have
no responsibility or obligation with respect to (a) the accuracy of the records of the Depository,
Cede & Co., or any Depository Participant with respect to any ownership interest in the Bonds,
(b) the delivery to any Depository 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(c) the payment to any Depository Participant or any other person, other
than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to
principal of or interest on the Bonds.
No person other than a registered owner of a Bond as shown in the Bond Register shall
receive a Bond certificate with respect to any Bond. Upon delivery by the Depository to the
Bond Registrar of written notice to the effect that the Depository has determined to substitute a
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new nominee in place of Cede & Co., and subject to the provisions hereof with respect to the
payment of interest to the registered owners of Bonds at the close of business on the applicable
record date, the name "Cede & Co. " in this Ordinance shall refer to such new nominee of the
Depository.
In the event that (a) the City determines that the Depository is incapable of discharging
its responsibilities described herein and in the Representation Letter, (b) the agreement among
the City, the Bond Registrar and the Depository evidenced by the Representation Letter shall be
terminated for any reason or(c)the City determines that it is in the best interests of the City or of
the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall
notify the Depository and the Depository Participants of the availability of Bond certificates, and
the Bonds shall no longer be restricted to being registered in the Bond Register in the name of
Cede & Co., as nominee of the Depository. The City may determine that the Bonds shall be
registered in the name of and deposited with a successor depository operating a 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 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 hereof. Notwithstanding any other provision of this Ordinance to
the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of the
Depository, 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.
B. Registration of Bonds. The City shall cause the Bond Register as provided in this
Ordinance to be kept at the principal office maintained for the purpose by the Bond Registrar in
Chicago, Illinois, which is hereby constituted and appointed the registrar of the City for this
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issue. 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.
Any Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender for
transfer or exchange of any Bond at the principal office maintained for the purpose by the Bond
Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer or
exchange in form satisfactory to the Bond Registrar and duly executed by the registered owner or
an attorney for such owner 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 or, in the
case of an exchange, the registered owner, a new fully registered Bond or Bonds of the same
maturity of authorized denominations, for a like aggregate principal amount. 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 fifteenth (15th) day of the month next preceding
any interest payment date on such Bond and ending at the opening of business on such interest
payment date, nor to transfer or exchange any Bond after notice calling such Bond for
redemption has been mailed, nor during a period of fifteen(15) 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
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Bond shall be made only to or upon the order of the registered owner thereof or the legal
representative of such owner. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City or
the Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of Bonds
except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond
surrendered for redemption.
Section 7. Form of Bond The Bonds shall be prepared in substantially the following
form;provided, however, that if the text of any Bond is to be printed in its entirety on the front
side of any Bond, 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 on the reverse
side shall be inserted immediately after the first paragraph on the front side:
III
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(Form of Bond- Front Side)
REGISTERED REGISTERED
No. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF KENDALL
UNITED CITY OF YORKVILLE
GENERAL OBLIGATION BOND(ALTERNATE REVENUE SOURCE),
SERIES 2016A
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate: % Date: December 30, Date: October 27, 2016 CUSP:
Registered Owner: Cede&Co.
Principal Amount: $
KNOW ALL MEN 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 or from the most recent interest payment date to which interest has been paid at the
Interest Rate per annum set forth above on June 30 and December 30 of each year, commencing
June 30, 2017, until said Principal Amount is paid. The principal of this Bond is payable in
lawful money of the United States of America upon presentation hereof at the principal office
maintained for the purpose by Amalgamated Bank of Chicago, Chicago, Illinois, as paying agent
and bond registrar (the "Bond Registrar"). Payment of interest shall be made to the Registered
Owner hereof as shown on the registration books of the City maintained by the Bond Registrar.
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Payment of the installments of interest shall be made to the Registered Owner hereof as shown
on the registration books of the City maintained by the Bond Registrar, at the close of business
on the 15th day of the month next preceding each 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, or as otherwise agreed by the City and the Depository so long as the Bonds
remain in book-entry only form as hereinafter provided.
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.
The City has designated the Bonds as qualified tax-exempt obligations to qualify the
Bonds for the $10,000,000 exception from the provisions of Section 265(b) of the Internal
Revenue Code of 1986 relating to the disallowance of 100%of the deduction for interest expense
allocable to tax-exempt obligations.
It is hereby certified and recited that all conditions, acts and things required to be done
precedent to and in the issuance of this Bond, have existed and have been properly done,
happened and been performed in regular and due form and time as required by law; that the
indebtedness of the City, represented by the Bonds, does not exceed any limitation imposed by
law; and that provision has been made for the collection of the Pledged Revenues, the levy and
collection of the Pledged Taxes, and the segregation of the 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
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Ordinance The full faith, credit and resources of the City are pledged to the punctual payment of
the principal of and interest on the Bonds.
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.
IN WITNESS WHEREOF, said United City of Yorkville, Kendall County, Illinois, by its
City Council, has caused this Bond to be signed by the manual or duly authorized facsimile
signature of the Mayor of the City and attested by the manual or duly authorized facsimile
signature of the Clerk of said City, and its corporate seal to be affixed hereto or printed hereon,
all as of the Dated Date identified above.
(Facsimile Signature)
Mayor
(SEAL)
Attest:
(Facsimile Signature)
City Clerk
Date of Authentication:
Bond Registrar and Paying Agent:
CERTIFICATE Amalgamated Bank of Chicago
OF Chicago, Illinois
AUTHENTICATION
This Bond is one of the Bonds described in the
within mentioned ordinance and is one of the
General Obligation Refunding Bonds (Alternate
Revenue Source), Series 2016, of the United City
of Yorkville, Kendall County, Illinois.
Amalgamated Bank of Chicago,
as Bond Registrar
By (Manual Signature)
Authorized Officer
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[Form of Bond-Reverse Side]
UNITED CITY OF YORKVILLE
KENDALL COUNTY,ILLINOIS
GENERAL OBLIGATION BOND(ALTERNATE REVENUE SOURCE),
SERIES 2016A
This bond and the bonds of the series of which it forms a part ("Bond" and "Bonds"
respectively) are part of an authorized issue of Five Million Eight Hundred Thousand Dollars
($5,800,000) of like 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 issued pursuant to the Act and pursuant to
Division 139 of Article 11 of the Illinois Municipal Code, as supplemented and amended (the
"Code") for the purpose of paying the cost of refunding certain outstanding alternate revenue
bonds and debt certificates previously issued by the City (collectively, the "Outstanding
Obligations") and paying expenses incidental thereto.
The Bonds are issued pursuant to an authorizing ordinance passed by the City Council of
the City (the "Corporate Authorities") on the 28th day of June, 2016 and pursuant to Ordinance
No. 2016- , passed by the Corporate Authorities on the 11th day of October, 2016 (the "Bond
Ordinance"), to which reference is hereby expressly made for further definitions and terms and
to all the provisions of which the owner by the acceptance of this Bond assents.
Under the Code and the Bond Ordinance, the Revenues, as defined in the Bond
Ordinance, 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
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may have a prior lien on the 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 Revenue"), 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 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 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,
General Obligation Refunding Bonds (Alternate Revenue Source), Series 2007A and General
Obligation(Alternate Revenue Source)Refunding Bonds, Series 2014C.
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 2016 Alternate Bond Fund, each as
created or continued by the Bond Ordinance. Moneys on deposit in said Subaccount and said
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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.
This Bond does not and will not constitute an indebtedness of the City within the
meaning of any constitutional 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, in accordance with the Act.
Additional Bonds payable from the Pledged Revenues may be issued pursuant to the
terms of the Bond Ordinance. The Additional Bonds shall share ratably and equally in the
Pledged Revenues with the Bonds,provided, however, that no Additional Bonds shall be issued
except in accordance with the provisions of the Act.
This Bond is not subject to redemption prior to maturity at the option of the City.
This Bond is transferable by the registered owner hereof in person or by his attorney duly
authorized in writing at the principal office maintained for the purpose by the Bond Registrar in
Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of the
charges provided in the Bond Ordinance, and upon surrender and cancellation of this Bond.
Upon such transfer a new Bond or Bonds of authorized denominations of the same maturity and
for the same aggregate principal amount will be issued to the transferee in exchange therefor.
The Bonds are issued in fully registered form in the denomination of $5,000 each or
authorized integral multiples thereof. This Bond may be exchanged at the principal office
maintained for the purpose by the Bond Registrar for a like aggregate principal amount of Bonds
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of the same maturity of other authorized denominations, upon the terms set forth in the Bond
Ordinance.
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
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
attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
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 8. Sale of Bonds. The Designated Officers are hereby authorized to proceed,
without any further official authorization or direction whatsoever from the Corporate Authorities,
to sell and deliver the Bonds upon the terms as prescribed in this Ordinance and in the Notice of
Sale.
The Bonds hereby authorized shall be executed as provided in this Ordinance as soon
after the passage of this Ordinance as may be determined by the Designated Officers, and, after
authentication thereof by the Bond Registrar, shall be delivered to the Purchaser upon payment
of the Purchase Price.
The Notice of Sale and the contract for sale of the Bonds to the Purchaser is hereby in all
respects ratified, approved and confirmed, it being declared that no person holding any office of
the City, either by election or appointment under the laws or Constitution of the State of Illinois,
is in any manner financially interested directly in his or her own name or indirectly in the name
of any person, association, trust or corporation, in such contract for sale or the performance of
any work relating to such contract or the Bonds or the use of the proceeds thereof, the making or
letting of which such officer may be called on to act or vote. It being also declared that no such
officer represents, either as agent or otherwise, any person, association, trust or corporation, with
respect to which any application or bid for any contract or work relating to such contract for sale
or the Bonds or the use of the proceeds thereof in regard to which such officer may be called
upon to vote.
The Designated Officers shall have the authority to sell the Bonds in any event so long as
the limitations set forth in this Ordinance and the conditions of this Section shall have been met.
Upon the sale of the Bonds, the Designated Officers, individually or together, and any other
officers of the City, as shall be appropriate, shall be and are hereby authorized and directed to
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approve or execute, or both, such documentation of sale of the Bonds as may be necessary,
including, without limitation, the Purchase Contract between the City and the Purchaser (the
"Purchase Contract"), an Official Statement, the Tax Compliance Agreement (as hereinafter
defined), the bid form between the City and the Purchaser, and closing documents and
certificates.
The use and distribution of the preliminary Official Statement relating to the Bonds
presented before this meeting is hereby in all respects ratified, confirmed, authorized and
approved, and the proposed use by the Purchaser of an Official Statement (in substantially the
form of the preliminary Official Statement but with appropriate variations to reflect the final
terms of the Bonds) is hereby confirmed, approved and authorized, and each Designated Officer
is hereby authorized to execute and deliver said Official Statement. The Designated Officers are
hereby authorized to take any action as may be required on the part of the City to consummate
the transactions contemplated by this Ordinance, and said final Official Statement, and the
Bonds.
The selection and retention of Arnstein & Lehr LLP, Chicago, Illinois, to serve as bond
counsel in connection with the issuance of the Bonds is hereby ratified, confirmed and approved.
Nothing in this Ordinance shall require the Designated Officers to sell the Bonds or to
cause the abatement of any taxes levied pursuant hereto if, in their judgment, the conditions of
the Purchase Contract have not been met or if the conditions in the bond markets have markedly
deteriorated from the time of adoption hereof, but the Designated Officers shall have the
authority to sell the Bonds in any event so long as the limitations set forth in this Ordinance and
the conditions of this Section shall have been met.
Section 9. Treatment of Bonds as Debt. The Bonds shall be payable from the Pledged
Moneys and shall not constitute an indebtedness of the City within the meaning of any
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constitutional provision or limitation, unless the Pledged Taxes shall be extended pursuant to the
general obligation, full faith and credit promise supporting the Bonds, as set forth herein, 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 be been paid from the Pledged Revenues for
a complete Fiscal Year, in accordance with the Act.
Section 10. 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
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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 Waterworks and
Sewerage Fund for the payment and security of waterworks and sewerage revenue
bonds that hereafter may be issued by the City. Amounts in the Waterworks and
Sewerage 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 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.
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(d) Surplus Account:
All moneys remaining in the Waterworks and Sewerage 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
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one-sixth (1/6th) of the interest becoming due on the next succeeding interest payment
date and not less than one-twelve (1/12th) of the principal becoming due on the next
succeeding principal payment date on all Outstanding Bonds and 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
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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 11. 2016 Alternate Bond Fund. There is hereby created a special fund of the
City, which fund shall be held by the Paying Agent separate and apart from all other funds and
accounts of the City and shall be known as the "2016 Alternate Bond Fund" (the "Bond Fund").
The purpose of the Bond Fund is to provide a fund to receive and disburse the Pledged Revenues
for the Bonds and 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 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 on the Bonds prior to the use of any moneys on deposit in the Alternate Bond and
Interest Account.
Section 12. 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 Treasurer for deposit into the Alternate Bond and Interest
Subaccount, and used to pay first interest coming due on the Bonds or be deposited into
the Escrow Account as set forth in the Escrow Agreement.
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(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 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 six (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 balance of the proceeds of the sale of the Bonds, together with such
money in the debt service fund for the Refunded Obligations as may be advisable for the
purpose, shall be used to provide for the Refunding, and to that end, shall be irrevocably
deposited into a separate and segregated escrow account to be established pursuant to an
Escrow Agreement to be executed by the Designated Officers, which Escrow Agreement
shall be in form as provided by Bond Counsel and approved by the City Attorney. The
Designated Officers are hereby authorized and directed to sign the Escrow Agreement in
such form, with such changes, insertions, omissions and additions as they shall
reasonably determine appropriate and necessary to constitute official approval thereof by
the Corporate Authorities, it being the express intent of the Corporate Authorities that no
further official action shall be required to approve same.
(d) Pursuant to the Escrow Agreement, the Escrow Agent shall refund the
following portion of the Outstanding Obligations constituting the Refunded Obligations
on the Redemption Date:
2006A Debt Certificates
Maturity Outstanding Principal Amount Redemption
Date Principal Amount Refunded Price
December 30, 2016 $460,000 $0* NA
December 30, 2017 $475,000 $475,000 100%
December 30, 2018 $495,000 $495,000 100%
December 30, 2019 $850,000 $850,000 100%
December 30, 2020 $850,000 $850,000 100%
December 30, 2021 $390,000 $390,000 100%
December 30, 2022 $255,000 $255,000 100%
* The principal of and interest on that portion of the 2006A Debt Certificates maturing on
December 30, 2016 shall be paid as described in the ordinance of the City authorizing the
2006A Debt Certificates.
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2007A Bonds
Maturity Outstanding Principal Amount Redemption
Date Principal Amount Refunded Price
December 30, 2016 $15,000 $0** NA
December 30, 2017 $15,000 $15,000 100%
December 30, 2018 $15,000 $15,000 100%
December 30, 2019 $680,000 $680,000 100%
December 30,2020 $695,000 $695,000 100%
December 30, 2021 $725,000 $725,000 100%
December 30, 2022 $750,000 $750,000 100%
** The principal of and interest on that portion of the 2007A Bonds maturing on
December 30, 2016 shall be paid from the sources described in the Outstanding Alternate
Bond Ordinance authorizing the 2007A Bonds.
(e) The Escrow Agent, the Purchaser or Speer be and the same hereby are each
authorized to act as agent for the City in the purchase of the Government Securities
described and set forth in the Escrow Agreement.
Section 13. Pledged Taxes; Tax Levy. For the purpose of providing additional funds
required to pay the interest and principal on the Bonds promptly when and as the same falls due,
and to pay and discharge the principal thereof at maturity, 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 sufficient for that purpose; and there be and
there hereby is hereby levied on all of the taxable property in the City the following direct annual
taxes(the"Pledged Taxes"):
An Amount Sufficient
Year of Levy to Produce the Sum of.'
2016 $679,628.75 for principal and interest
2017 $665,250.00 for principal and interest
2018 $1,646,450.00 for principal and interest
2019 $1,592,650.00 for principal and interest
2020 $1,098,650.00 for principal and interest
2021 $942,450.00 for principal and interest
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Interest or principal coming due at any time when there are insufficient funds on hand
from the Pledged Taxes to pay the same shall be paid promptly when due from current funds on
hand in advance of the collection of the Pledged Taxes herein pledged and levied; and when the
Pledged Taxes shall have been collected, reimbursement shall be made to said funds in the
amount so advanced.
The City covenants and agrees with the Purchaser and registered 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 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 into the Bond Fund.
Whenever and only when other funds from any lawful source are made available for the
purpose of paying any principal of or interest on the Bonds, so as to enable the abatement of the
taxes levied herein for the payment of same, the Corporate Authorities shall, by proper
proceedings, direct the deposit of such funds into the Bond Fund and further shall direct the
abatement of the taxes by the amount so deposited. A certified copy or other notification of any
such proceedings abating taxes may then be filed with the County Clerk in a timely manner to
effect such abatement. In the alternative, the Corporate Authorities may, by proper proceedings,
authorize a procedure for the deposit of such funds into the Bond Fund by duly authorized
officers of the City, which procedure may be self-executing, and may further, accordingly,
authorize such officers to abate the taxes by the amount so deposited from time to time by
certificate to the County Clerk,which certificate upon filing shall be full authority for the County
Clerk to effect such abatement.
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Section 14. Filing with County Clerk. Promptly, as soon as this Ordinance becomes
effective, a copy of this Ordinance, as certified by the City Clerk, shall be filed with the County
Clerk; and said County Clerk shall in and for each of the levy years required ascertain the rate
percent required to produce the aggregate Pledged Taxes hereinbefore provided to be levied in
each of said years; and said 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
general corporate purposes 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 15. Abatement of Pledged Taxes. As provided in the Act, whenever the
Pledged Revenues shall have been determined by the Treasurer to provide in any calendar year
an amount not less than 1.25 times debt service of all outstanding 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, the 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 16. 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,
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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 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 17. General Covenants. The City covenants and agrees with the owners of the
Outstanding Bonds, so long as there are any Outstanding Bonds, as follows:
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
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this Ordinance, and it will faithfully observe and perform all of the conditions, covenants and
requirements thereof and hereof.
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 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.
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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 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
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of the respective accounts as provided in Section 10 of this Ordinance; it is hereby expressly
provided that the pledge and 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 to 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.
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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
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
Year.
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. 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 the 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 19. Continuing Disclosure Undertaking. Any Designated Officer is hereby
authorized to execute and deliver a Continuing Disclosure Undertaking, in customary form as
approved by Bond Counsel and approved by the City Attorney, to effect compliance with
Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended. When such Continuing Disclosure Undertaking is executed
and delivered on behalf of the City, it will be binding on the City and the officers, agents, and
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employees of the City, and the same are hereby authorized 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 such Continuing Disclosure Undertaking as executed and delivered.
Notwithstanding any other provisions hereof, (a) the sole remedies for failure to comply with
such 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 thereunder, and (b) the failure of the City to comply with the Continuing Disclosure
Undertaking shall not be considered an event of default under the Bonds or this Ordinance.
Section 20. Taxes Previously Levied. The taxes previously levied for the years 2016
(collectible in 2017) and thereafter to pay the Refunded Obligations shall be abated as set forth in
a Certificate of Tax Reduction to be executed and delivered by the Designated Officers upon the
sale of the Bonds. The Designated Officers are hereby expressly authorized to file an abatement
certificate with the County Clerk, without further official action of the Corporate Authorities, to
effectuate such abatement.
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 call (subject only
to the delivery of the Bonds) the Refunded Bond for redemption and payment prior to maturity
on the Redemption Date, as set forth in the Escrow Agreement, at the redemption price equal to
one hundred percent (100%) of the principal amount of the Refunded Obligations being
redeemed,plus accrued interest to the date of redemption.
Section 22. Not Private Activity Bonds. None of the Bonds is a "private activity bond"
as defined in Section 141(a) of the Code. In support of such conclusion, the City certifies,
represents and covenants as follows:
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(A) No direct or indirect payments are to be made on any Bond or were or are to
be made on any Prior Bond with respect to any private business use by any person other
than a state or local governmental unit.
(B) None of the proceeds of the Bonds is, and none of the proceeds of the
Outstanding Obligations was or is, to be used, directly or indirectly, to make or finance
loans to persons other than a state or local governmental unit.
(C) No user of the public capital infrastructure financed with the proceeds of the
Outstanding Obligations (the "Prior Project") other than the City or another
governmental unit will use the same on any basis other than the same basis as the general
public; and no person other than the City or another governmental unit will be or has
been a user of the Prior Project as a result of(i) ownership or(ii) actual or beneficial use
pursuant to a lease, a management or incentive payment contract, or (iii) any other
arrangement.
Section 23. Tax Covenants. The City agrees to comply with, and as of the date hereof
reasonably expects that it will comply with, all provisions of the Code which, if not
complied with by the City, would cause the Bonds not to be tax-exempt. As used herein,
"tax-exempt" means, with respect to the Bonds, the status of interest paid and received
thereon as not includible in the gross income of the owners thereof under the Code for
federal income tax purposes except to the extent that such interest is taken into account in
computing an adjustment used in determining the alternative minimum tax for certain
corporations and in computing the "branch profits tax" imposed on certain foreign
corporations. It shall not be an event of default under this Ordinance if the interest on any
of the Bonds is not tax-exempt pursuant to any provision of the Code which is not
currently in effect and in existence on the date of the issuance of the Bonds.
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In furtherance of the foregoing provisions, but without limiting their generality, the City
agrees: (a) through its officers, to make such further specific covenants, representations as shall
be truthful, and assurances as may be necessary or advisable; (b) to comply with all
representations, covenants and assurances contained in certificates or agreements as may be
prepared by counsel approving the Bonds, including, without limitation, a Tax Compliance
Agreement (the "Tax Compliance Agreement"); (c) to consult with such counsel and to comply
with such advice as may be given; (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 its
officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist
the City in such compliance.
The City further certifies and covenants as follows with respect to the requirements of
Section 148(f) of the Code, relating to the rebate of "excess arbitrage profits" (the "Rebate
Requirement")to the United States:
(A) Unless an applicable exception to the Rebate Requirement is available to
the City, the City will meet the Rebate Requirement.
(B) Relating to applicable exceptions, the Treasurer or the Mayor is hereby
authorized to make such elections under the Code as either such officer shall deem reasonable
and in the best interests of the City. If such election may result in a "penalty in lieu of rebate" as
provided in the Code, and such penalty is incurred (the "Penalty"), then the City shall pay such
Penalty.
(C) The officers of the City shall cause to be established, at such time and in
such manner as they may deem necessary or appropriate hereunder, a "2016 Bonds Rebate [or
Penalty, if applicable] Fund" (the"148 Compliance Fund") for the Bonds, and such officers shall
further, not less frequently than annually, cause to be transferred to the 148 Compliance Fund the
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amount determined to be the accrued liability under the Rebate Requirement or Penalty. Said
officers shall cause to be paid to the United States Treasury, without further order or direction
from the Corporate Authorities, from time to time as required, amounts sufficient to meet the
Rebate Requirement or to pay the Penalty.
(D) Interest earnings in the Bond Fund are hereby authorized to be transferred,
without further order or direction from the Corporate Authorities, from time to time as required,
to the 148 Compliance Fund for the purposes herein provided; and proceeds of the Bonds and
other funds of the City are also hereby authorized to be used to meet the Rebate Requirement or
to pay the Penalty,but only if necessary after application of investment earnings as aforesaid and
only as appropriated by the Corporate Authorities.
The Corporate Authorities also certify and further covenant with the Purchaser and the
holders and registered owners of the Bonds from time to time outstanding that so long as any of
the Bonds remain unpaid, moneys on deposit in any fund or account in connection with the
Bonds, whether or not such moneys were derived from the proceeds of the sale of the Bonds or
from any other source, will not be used in a manner which will cause the Bonds to be "arbitrage
bonds" within the meaning of Section 148 of the Code, and any lawful regulations promulgated
thereunder, as the same presently exist, or may from time to time hereafter be amended,
supplemented or revised. The Corporate Authorities reserve the right, however, to make any
investment of moneys on deposit in any fund or account in connection with the Bonds permitted
by state law, if, when and to the extent that said Section 148 or regulations promulgated
thereunder shall be repealed or relaxed or shall be held void by final decision of a court of
competent jurisdiction, but only if any investment made by virtue of such repeal, relaxation or
decision would not, in the opinion of an attorney at law or a firm of attorneys of nationally
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recognized standing in matters pertaining to tax-exempt bonds, result in the inclusion of interest
on the Bonds in gross income for federal income tax purposes.
The Corporate Authorities are hereby authorized and directed to make such further
covenants, estimates, representation, or assurances as may be necessary or advisable to the end
that the Bonds not be"arbitrage bonds"as aforesaid.
The City also agrees and covenants with the Purchaser and the holders of the Bonds from
time to time outstanding that, to the extent possible under Illinois law, it will comply with
whatever federal law is adopted in the future which applies to the Bonds and affects the tax-
exempt status of the Bonds. In furtherance of the foregoing provision, but without limiting its
generality, the City agrees: (a) through its Corporate Authorities, to make such further specific
covenants, representations as shall be truthful, and assurances as may be necessary or advisable;
(b) to comply with all representations, covenants and assurances contained in certificates or
agreements as may be prepared by counsel approving the Bonds; (c) to consult with such counsel
and to comply with such advice as may be given; (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 its officers, to employ and pay fiscal agents, financial advisors, attorneys and other
persons to assist the City in such compliance.
The City also certifies and further covenants with the purchasers and registered owners of
the Bonds from time to time outstanding that the proceeds of the Bonds shall be devoted to and
used with due diligence for the Refunding in accordance with the provisions of the Escrow
Agreement, and that moneys on deposit in any fund or account in connection with the Bonds,
whether or not such moneys were derived from the proceeds of the sale of the Bonds or from any
other source, will not be used in a manner which will cause the Bonds to be "arbitrage bonds"
within the meaning of Code Section 148 and any lawful regulations promulgated thereunder, as
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the same presently exist or may from time to time hereafter be amended, supplemented or
revised.
Section 24. Registered Form. The City recognizes that Section 149(a) of the Code
requires the Bonds to be issued and to remain in fully registered form in order 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. Designation of Issue. The City recognizes the provisions of Section
265(b)(3) of the Code which provide that a "qualified tax-exempt obligation" as therein defined
may be treated by certain financial institutions as if it were acquired on August 7, 1986, for
certain purposes. The City hereby designates each of the Bonds as may be from time to time
outstanding for purposes of Section 265(b)(3) of the Code as a "qualified tax-exempt obligation
as provided therein. In support of such designation, the City certifies, represents and covenants
as follows:
A. None of the Bonds is a "private activity bond" as defined in Section 141(a)
of the Code.
B. Including the Bonds, the City (including any entities subordinate thereto)
has not and does not reasonably expect to issue in excess of$10,000,000 in tax-exempt
obligations of any kind during calendar year 2016.
C. Including the Bonds, not more than$10,000,000 of obligations issued by the
City(including any entities subordinate thereto) during the calendar year 2016 have been
to date or will be designated by the City for purposes of said Section 265(b)(3)
Section 26. List of Bondholders. The Bond Registrar shall maintain a list of the names
and addresses of the owners of all Bonds and upon any transfer shall add the name and address
of the new owner and eliminate the name and address of the transferor owner.
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Section 27. Opinion of Counsel Exception. The City reserves the right to use or invest
moneys in connection with the Bonds in any manner, notwithstanding the tax-related covenants
set forth herein,provided it shall first have received an opinion from Arnstein & Lehr LLP, or
any other attorney or a firm of attorneys of nationally recognized standing as bond counsel, to
the effect that use or investment of such moneys as contemplated is valid and proper under
applicable law and this Ordinance and, further, will not adversely affect the tax-exempt status for
the Bonds.
Section 28. Duties of Bond Registrar. If requested by the Bond Registrar or the Paying
Agent, or both, any Designated Officer is authorized to execute the Bond Registrar's standard
form of agreement between the City and the Bond Registrar or Paying Agent with respect to the
obligations and duties of the Bond Registrar hereunder which may include the following:
(a) to act as bond registrar,paying agent, authenticating agent and transfer agent
as provided herein;
(b) to maintain a list of the owners of the Bonds as set forth herein and to
furnish such list to the City upon request,but otherwise to keep such list confidential;
(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,
Bonds outstanding and payments made with respect to interest on the Bonds.
Section 29. Provisions a Contract. The provisions of this Ordinance shall constitute a
contract between the City and the owners of the outstanding Bonds and no changes, additions, or
alterations of any kind shall be made hereto, except as herein provided, so long as there are any
outstanding Bonds.
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Section 30. 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.
Section 31. 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 32. Effective Date. This Ordinance shall be in full force and effect forthwith
and immediately upon its passage.
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Passed by the Corporate Authorities on October 11, 2016 by a roll call vote as follows:
AYES: CO L-O S) MO Ko Ctt M l L3C+4EWSKI KO
F21Ei]E2S, --7- EL.-/K(C)1 TX} RULIS
NAYS:
ABSENT:
UNITED CITY OF YORKVILLE,
KENDALL COUNTY,ILLINOIS
By: ti .i 1
yor
APPROVED this 11th day of October, 2016.
Attest:
4.4 i
��
City Clerk
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MINUTES of a regular public meeting of the City Council of the
United City of Yorkville, Kendall County, Illinois, held at the City
Council Chambers of the City Hall, located at 800 Game Farm
Road, Yorkville, Illinois, in said City at 7 o'clock P.M., on the 11`h
day of October, 2016.
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 answered present at said location:
C0L0SIMOt KoC 4 MILSCH-EWSKt Ro-run11<-1-housr_-,2) rRlE,>t=ie5 -rE , 7fleuc.ls
The following were absent
The Mayor announced that the next item of business before the City Council was the
consideration of an ordinance authorizing the issuance of $5,800,000 General Obligation
Refunding Bonds (Alternate Revenue Source), Series 2016 for the purpose of refunding certain
of the City's outstanding debt certificates and alternate revenue source bonds. Thereupon,
Alderman MLLsc+-EW presented, and there was made available to the Aldermen and interested
members of the public the following ordinance(the"Bond Ordinance"):
AN ORDINANCE authorizing and providing for the issuance of
General Obligation Refunding Bonds (Alternate Revenue Source),
Series 2016, of the United City of Yorkville, Kendall County,
Illinois, in the aggregate principal amount of $5,800,000, for the
purpose of refunding certain of the City's outstanding debt
certificates and alternate revenue bonds, authorizing the execution
of an escrow agreement in connection therewith, providing for the
imposition of taxes to pay the same and for the collection,
segregation and distribution of certain City revenues for the
payment of said bonds, and the abatement of a portion of taxes
previously levied.
Alderman M I LSC WS K( moved and Alderman UuMK fb USE fZ seconded
the motion that the Bond Ordinance as presented be adopted.
A City Council discussion of the matter followed. During the City Council discussion,
the Mayor gave a public recital of the nature of the matter, which included a reading of the title
of the Bond Ordinance and statements that (i) the Bond Ordinance provided for the issuance of
alternate bonds for the purpose of paying the costs of refunding all or a portion of the
outstanding Refunding Debt Certificates, Series 2006A and the General Obligation Refunding
Bonds (Alternate Revenue Source), Series 2007A of the City, (ii) the bonds are issuable without
referendum pursuant to the Illinois Municipal Code, as amended, and the Local Government
Debt Reformed Act, as amended, (iii) the Bond Ordinance provides for the levy of taxes to pay
the bonds, although the intent of the City is that the bonds will be paid from the revenues of the
City's waterworks and sewerage system and from the collection of amounts distributed to the
City pursuant to the State Revenue Sharing Act of the State of Illinois, as amended,or substitute
taxes therefor as provided by the State of Illinois pursuant to applicable law in the future, and
(iv) that the Bond Ordinance provides certain details for the bonds, including tax-exempt status
covenants for the bonds, provisions for terms and form of the bonds, and appropriations.
After a full and complete discussion thereof, the Mayor directed that the roll be called for
a vote upon the motion to adopt the Bond Ordinance.
Upon the roll being called,the following Aldermen: CO LOS t rvio) K O Ci-k
M1LSCkt'E.ldSKI ) 1<o-r) f'Ut41 1-i0U3 1 FR/EI KS TEELIM(C f �2UL/S
voted AYE, and the following Aldermen:
voted NAY.
Whereupon the Mayor declared the motion carried and the Bond Ordinance adopted, and
approved and signed the same in open meeting and directed the City Clerk to record the same in
full in the records of the City Council of the United City of Yorkville, Kendall County, Illinois.
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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.
etli Warren, City Clerk
United City of Yorkville,
Kendall County, Illinois
-3-
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 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
thereof(the "City Council").
I do further certify that the foregoing constitutes a full, true and complete transcript of the
minutes of the meeting of the City Council held on the 11th day of October, 2016, insofar as
same relates to the adoption of Ordinance No. 2016-55 entitled:
AN ORDINANCE authorizing and providing for the issuance of
General Obligation Refunding Bonds (Alternate Revenue Source),
Series 2016, of the United City of Yorkville, Kendall County,
Illinois, in the aggregate principal amount of $5,800,000, for the
purpose of refunding certain of the City's outstanding debt
certificates and alternate revenue bonds, authorizing the execution
of an escrow agreement in connection therewith, providing for the
imposition of taxes to pay the same and for the collection,
segregation and distribution of certain City revenues for the
payment of said bonds, and the abatement of a portion of taxes
previously levied
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 City Council 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, that said meeting
was called and held in strict accordance with the provisions of the Illinois Municipal Code, as
amended, and the Open Meetings Act of the State of Illinois, as amended, and that the City
Council has complied with all of the applicable provisions of said Code and said Act and its
procedural rules in the adoption of said ordinance.
IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the City, this
11th day of October, 2016.
Clerk, United City of Yorkville,
Kendall County, Illinois
(SEAL)
STATE OF ILLINOIS )
SS
COUNTY OF KENDALL )
FILING CERTIFICATE
I, the undersigned, do hereby certify that I am the duly elected, qualified and acting
County Clerk of The County of Kendall, Illinois, and as such officer I do further certify that on
the�Q day of , 2016, there was filed in my office that certain United City of
Yorkville, Illinois Ordinance No. 2016-55, entitled:
AN ORDINANCE authorizing and providing for the issuance of General
Obligation Refunding Bonds (Alternate Revenue Source), Series 2016, of
the United City of Yorkville, Kendall County, Illinois, in the aggregate
principal amount of$5,800,000, for the purpose of refunding certain of the
City's outstanding debt certificates and alternate revenue bonds, authorizing
the execution of an escrow agreement in connection therewith, providing
for the imposition of taxes to pay the same and for the collection,
segregation and distribution of certain City revenues for the payment of said
bonds, and the abatement of a portion of taxes previously levied,
duly passed and approved by the Council of the United City of Yorkville, Kendall County,
Illinois, on the 11th day of October, 2016, and that said Ordinance has been placed on file in and
appears in the records of my office.
IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the
County of Kendall, Illinois, on this day of 6Cthr21 , 2016.
,Atigict-‘
I
County Clerk of
The County of Kendall, Illinois
[SEAL]