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Ordinance 2025-92UNITED CITY OF YORKVILLE KENDALL COUNTY STATE OF ILLINOIS ORDINANCE NUMBER 2025-92 AN ORDINANCE PROVIDING FOR ISSUANCE OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS SPECIAL SERVICE AREA NUMBER 2004-104 SPECIAL TAX REFUNDING BONDS, SERIES 2025 (GRANDE RESERVE PROJECT), AND AUTHORIZING THE EXECUTION OF A BOND ORDER ADOPTED BY THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE KENDALL COUNTY STATE OF ILLINOIS The 25" day of November, 2025 Published in pamphlet form by authority of the City Council of the United City of Yorkville, Kendall County, Illinois, this 25th day of November, 2025. STATE OF ILLINOIS COUNTY OF KENDALL - FILED - NOV 2 6 2025 COUNTYCLERK KENDALL COUNTY ORDINANCE No. 2025-92 AN ORDINANCE PROVIDING FOR ISSUANCE OF UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS SPECIAL SERVICE AREA NUMBER 2004-104 SPECIAL TAX REFUNDING BONDS, SERIES 2025 (GRANDE RESERVE PROJECT), AND AUTHORIZING THE EXECUTION OFABOND ORDER BE IT ORDAINED BY THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, AS FOLLOWS: Section 1. Findings and Declarations. It is found and declared by the City Council of the United City of Yorkville, Kendall County, Illinois (the "City") as follows: a. The City has previously established Special Service Area Number 2004-104 Central Grande Reserve described more fully in Exhibit A to this Ordinance (the "Special Service Area") pursuant to Ordinance Number 2004-49 adopted on September 14, 2004 (the "Establishing Ordinance"), as amended by Ordinance Number 2004-60 adopted on October 26, 2004, the provisions of the Special Service Area Tax Law, 35 ILCS 200/27-5 et seq., as amended (the "Special Service Area Act") and the provisions of Section 7 of Article VII of the 1970 Constitution of the State of Illinois, and has otherwise complied with all other conditions precedent required by the Special Service Area Act. b. It was deemed necessary and in the best interests of the City to provide special services benefiting the Special Service Area consisting of the acquisition, construction and installation of public improvements including, but not limited to, engineering, soil testing and appurtenant work, mass grading and demolition, storm water management facilities, storm drainage systems and storm sewers, site clearing and tree removal, public water facilities, sanitary sewer facilities, erosion control measures, roads, streets, curbs, gutters, street lighting, traffic controls, sidewalks, equestrian paths and related street improvements, and equipment and materials necessary for the maintenance thereof, public parks, park improvements, bicycle paths, landscaping, wetland mitigation and tree installation, costs for land and easement acquisitions relating to any of the foregoing improvements, required tap -on and related fees for water or sanitary sewer services and other eligible costs to serve the Special Service Area (the "Special Services"). C. The City has previously issued $13,200,000 in aggregate principal amount of its Special Service Area Number 2004-104 Central Grande Reserve Special Tax Bonds, Series 2004 (MPI Grande Reserve Project) (the "Prior Bonds"), of which $3,572,000 in principal amount remains outstanding, to pay and provide funds for a portion of the costs of the Special Services. d. In order to achieve debt service savings, it is in the best interests of the City to refund the Prior Bonds. I e. The City does not have sufficient funds on hand or available from other sources with which to pay the costs associated with the refunding of the Prior Bonds. f. It is in the best interests of the City to issue not to exceed $3,800,000 principal amount of its Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project) (the "Bonds"), as provided in this Ordinance and the Bond Order (as defined in Section 2 hereof), to pay or provide funds to (i) refund the Prior Bonds, (ii) fund a debt service reserve fund, (iii) pay the insurance premiums for the Bonds, if insured and (iv) pay the costs associated with the issuance of the Bonds. g. The City expects that aggregate payments of principal of and interest on the Bonds will be less than aggregate payments of principal of and interest on the outstanding Prior Bonds. h. The notice and hearing requirements set forth in Section 27-45 of the Special Service Area Act do not apply to the Bonds because the interest rate on the Bonds and the maximum period of time over which the Bonds will be retired will not be greater than that set forth in the notices for the Prior Bonds. In addition, the debt service on the Bonds will not exceed the debt service to be paid over the remaining duration of the Prior Bonds. i. After due publication of notice as required by the Special Service Area Act, including, without limitation, notice of the issuance of the Prior Bonds in an aggregate principal amount not to exceed $14,000,000, a public hearing to consider the establishment of the Special Service Area, the issuance of the Prior Bonds for the purpose of paying the costs of the Special Services and the manner in which the Prior Bonds were proposed to be retired and the proposed tax levy, was held in accordance with law. No objection petition was filed with respect to the establishment of the Special Service Area or the issuance of the Prior Bonds within the period of time allowed pursuant to the Special Service Area Act. Section 2. Issuance of Bonds. The City shall borrow the sum of not to exceed $3,800,000 by issuing the Bonds as provided in this Ordinance. The Bonds shall be designated "United City of Yorkville, Kendall County, Illinois Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project)," and shall be issued for the purpose of refunding the Prior Bonds. The Bonds shall be issued pursuant to the powers of the City pursuant to Section 7 of Article VII of the 1970 Constitution of the State of Illinois; the Special Service Area Act; and the Local Government Debt Reform Act, 30 ILCS 350/1 et seq. (the "Debt Act"). The Mayor is hereby authorized and directed to establish the final terms of the Bonds as set forth in the City's Bond Order to be executed by the Mayor and attested by the City Clerk (the "Bond Order"), in form and substance acceptable to the City Attorney and Croke Fairchild Duarte & Beres LLC, Bond Counsel, but only within the parameters or on such terms as set forth in Section 4 of this Ordinance and in furtherance of such duty is hereby authorized and directed to execute the Bond Order on behalf of the City. The Bonds shall be issued in such principal amounts, mature on such dates and bear interest at such rates and be subject to redemption as set forth in the Bond Order. 2 Section 3. Approval of Documents. There have been submitted to the City Council forms of the following documents relating to the issuance of the Bonds: a. a form of Trust Indenture (the "Indenture") between the City and U.S. Bank Trust Company, National Association, as Trustee (the "Trustee"), to be dated as of December 1, 2025, which form of Indenture is attached as Exhibit B to this Ordinance; b. a form of Bond Purchase Agreement (the "Bond Purchase Agreement") between the City and Raymond James & Associates, Inc., as Underwriter (the "Underwriter"), to be dated as of the date the offer of the Underwriter to purchase the Bonds is accepted by the City, which form of Bond Purchase Agreement is attached as Exhibit C to this Ordinance; C. a form of the Preliminary Official Statement (the "Preliminary Official Statement") to be used by the Underwriter in its initial offering of the Bonds, which form of Preliminary Official Statement is attached as Exhibit D to this Ordinance; d. a form of the Continuing Disclosure Agreement by and between the City and U.S. Bank Trust Company, National Association, which form of Continuing Disclosure Agreement is attached as Exhibit E to this Ordinance; e. a form of Escrow Deposit Agreement (the "Escrow Agreement") between the City and U.S. Bank Trust Company, National Association, as escrow agent (the "Escrow Agent"), which form of Escrow Agreement is attached as Exhibit F to this Ordinance; and f. a form of the Agreement for Administrative Services between DTA, formerly known as David Taussig & Associates, Inc. (the "Consultant"), and the City, which form of Agreement for Administration Services is attached as Exhibit G to this Ordinance. Such documents are approved as to form and substance and the Mayor and the City Clerk of the City are authorized and directed to execute and deliver and/or authorize the use of such documents on behalf of the City in the forms submitted with such additions, deletions and completions of the same (including the establishment of the terms of the Bonds within the parameters set forth in this Ordinance) as the Mayor and the City Clerk deem appropriate, the Mayor's signature on such documents constituting his approval thereof and to be deemed conclusive and binding approval hereunder; and when each such document is executed, attested, sealed and delivered on behalf of the City, as provided herein, each such document will be binding on the City; from and after the execution and delivery of each such document, the officers, employees and agents of the City are hereby authorized, empowered and directed to do all such acts and things and to execute all such additional documents as may be necessary to carry out, comply with and perform the provisions of each such document as executed; and each such document shall constitute, and hereby is made, a part of this Ordinance, and a copy of each such document shall be placed in the official records of the City, and shall be available for public inspection at the office of the City Clerk. Either the Mayor or City Clerk is authorized and directed, subject to the terms of the Bond Purchase Agreement as executed, to execute the final Official Statement in substantially the form of the Preliminary Official Statement presented 3 hereto with such changes, additions or deletions as they deem appropriate to reflect the final terms of the Bonds, the Indenture and other matters. The Mayor and the City Clerk are authorized to obtain a Bond Insurance Policy insuring the payment of all or a portion of the principal of and interest on the Bonds when due (the "Bond Insurance Policy") from a bond insurer (a "Bond Insurer") if the Mayor determines such Bond Insurance Policy to be beneficial in connection with the sale of the Bonds. The Mayor and City Clerk are hereby authorized on behalf of the City, to make such customary covenants and agreements with the Bond Insurer as are not inconsistent with the terms of this Ordinance and as may be required by the Bond Insurer to issue its Bond Insurance Policy. The Mayor and the City Clerk are further authorized to obtain an insurance policy, surety bond, irrevocable letter of credit or similar instrument deposited in or credited to the reserve fund to be created and established pursuant to the Indenture (the "Reserve Fund") in lieu of or in partial substitution for moneys on deposit therein (in any event, a "Reserve Fund Insurance Policy") from the Bond Insurer or any other entity issuing a Reserve Fund Insurance Policy with respect to the Bonds (in either case, a "Surety Provider") if the Mayor determines such Reserve Fund Insurance Policy to be beneficial in connection with the sale of the Bonds. The Mayor and City Clerk are hereby authorized on behalf of the City, to make such customary covenants and agreements with the Surety Provider (including, without limitation, any reimbursement agreement, guaranty agreement or other credit facility agreement) as are not inconsistent with the terms of this Ordinance and as may be required by the Surety Provider to issue its Reserve Fund Insurance Policy. Section 4. Bond Terms, Bond Order. The Bonds shall be issued as provided in the Indenture and shall be issued in the principal amount of not to exceed $3,800,000, shall be dated, shall mature (but in no event later than March 1, 2034), shall bear interest at the rates (not to exceed in any year six percent (6.00%) per annum) and shall be subject to redemption at the times and prices as set forth in the Indenture, and shall be sold to the Underwriter at a purchase price of not less than 98% of the principal amount of the Bonds, all as set forth in the Bond Purchase Agreement. The execution and delivery of the Bond Purchase Agreement by the Mayor and the City Clerk shall evidence their approval of the terms of the Bonds set forth above. The Bond Order shall specify the principal amount of the Bonds, the date of the Bonds, the interest rate on the Bonds, the redemption provisions of the Bonds, the purchase price of the Bonds, the identity of any Bond Insurer, if any, and the final form of any commitment to provide the Bond Insurance Policy and the Reserve Fund Insurance Policy and may include such other terms as are deemed necessary to provide for the sale of the Bonds which are not inconsistent with this Ordinance. The Bond Order shall also provide for the abatement of any special taxes levied for the Prior Bonds to be refunded. The Bond Order shall also provide that the City shall not sell the Bonds unless it receives a certificate from its municipal advisor that the refunding of the Prior Bonds will provide an aggregate present value debt service savings to the City resulting from the issuance of the Bonds to provide for the refunding of the Prior Bonds of not less than three percent (3%) of the par value of the refunded Prior Bonds. Such certificate shall demonstrate the amount of such savings and state that such savings target has been met. The execution and delivery of the Bond Order, the Bond Purchase Agreement and the Indenture by the Mayor and the City Clerk shall evidence their approval of the terms of the Bonds set forth above. This Ordinance, together with the Bond Order, shall constitute complete authority for the City to issue the Bonds in accordance with applicable law. 4 Section 5. Execution and Delivery of Bonds. The Mayor and the City Clerk are authorized and directed to execute and deliver the Bonds and, together with other Authorized Officers (as defined in the Indenture), to take all necessary action with respect to the issuance, sale and delivery of the Bonds, all in accordance with the terms and procedures specified in this Ordinance and the Indenture. The Bonds shall be delivered to the Trustee who is directed to authenticate the Bonds and deliver the Bonds to the Underwriter upon receipt of the purchase price for the Bonds. The Bonds shall be in substantially the form set forth in the Indenture. Each Bond shall be executed by the manual or facsimile signature of the Mayor and the manual or facsimile signature of the City Clerk and shall have the corporate seal of the City affixed to it (or a facsimile of that seal printed on it). The Mayor and the City Clerk (if they have not already done so) are authorized and directed to file with the Illinois Secretary of State their manual signatures certified by them pursuant to the Uniform Facsimile Signatures of Public Officials Act, as amended, which shall authorize the use of their facsimile signatures to execute the Bonds. Each Bond so executed shall be as effective as if manually executed. In case any officer of the City whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before authentication and delivery of any of the Bonds, that signature or facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. No Bond shall be valid for any purpose unless and until a certificate of authentication on that Bond substantially in the form set forth in the bond form in the Indenture shall have been duly executed by the Trustee. Execution of that certificate upon any Bond shall be conclusive evidence that the Bond has been authenticated and delivered under this Ordinance. Section 6. Bonds are Limited Obligations, Levy of Special Tax; Pledge. The Bonds shall constitute limited obligations of the City, payable from the Special Taxes (as defined below) to be levied on all taxable real property within the Special Service Area as provided below. The Bonds shall not constitute the general obligations of the City and neither the full faith and credit nor the unlimited taxing power of the City shall be pledged as security for payment of the Bonds. There are hereby levied Special Taxes upon all taxable real property within the Special Service Area in accordance with the Special Tax Roll and Report (as defined below) sufficient to pay and discharge the principal of and interest on the Bonds at maturity or mandatory sinking fund redemption dates and to pay interest on the Bonds for each year at the interest rates to be set forth in Section 2.4 of the Indenture and to pay for the Administrative Expenses (as defined in the Indenture) of the City, if any, for each year and to fund and replenish the Reserve Fund and any special reserve fund created and established pursuant to the Indenture (the "Special Reserve Fund"), including specifically the following amounts for the following years (the "Special Taxes") : AN AMOUNT SUFFICIENT YEAR OF LEVY TO PRODUCE THE SUM OF: 2025 5 $612,385.16 2026 $621,486.42 2027 $630,804.39 2028 $640,339.04 2029 $649,873.70 2030 $659,625.06 2031 $669,593.11 2032 $679,561.17 Pursuant to the Special Tax Roll established by the Special Tax Roll and Report prepared for the Special Service Area (the "Special Tax Roll and Report"), the Special Taxes shall be computed, extended and collected in accordance with the Special Tax Roll and Report, and divided among the taxable real property within the Special Service Area in accordance with the terms of the Establishing Ordinance and the Special Tax Roll and Report. It shall be the duty of the City and the City hereby covenants, annually on or before the last Tuesday of December for each of the years 2025 through 2032 to calculate or cause the Consultant appointed pursuant to the Indenture to calculate the Special Tax Requirement (as defined in the Special Tax Roll and Report); to amend the Special Tax Roll pursuant to Section VIII of the Special Tax Roll and Report; to adopt an ordinance approving the amount of the current calendar year's Special Tax Requirement and to abate the Special Taxes levied pursuant to this Ordinance to the extent the taxes levied pursuant to this Ordinance exceed the Special Tax Requirement as calculated by the Consultant pursuant to the Establishing Ordinance and the Special Tax Roll and Report; and provide the County tax collector of Kendall County the amended Special Tax Roll. On or before the last Tuesday of January for each of the years 2026 through 2033, the City shall notify the Trustee of the amount of the Special Tax Requirement and the amount of the Special Taxes to be abated. The City shall take all actions which shall be necessary to provide for the levy, extension, collection and application of the taxes levied by this Ordinance, including enforcement, of such taxes as provided by law but only as set forth in Section 7(a) below. The Special Taxes levied as provided above shall be deposited into the Bond and Interest Fund created pursuant to the Indenture (the "Bond and Interest Fund") and are appropriated to and are irrevocably pledged to and shall be used only for the purposes set forth in the Indenture. Section 7. Special Covenants. The City covenants with the holders of the Bonds from time to time outstanding that it (i) will take all actions which are necessary to be taken (and avoid any actions which it is necessary to avoid being taken) so that interest on the Bonds will not be or become included in gross income for federal income tax purposes under existing law, including without limitation the Internal Revenue Code of 1986, as amended (the "Code"); (ii) will take all actions reasonably within its power to take which are necessary to be taken (and avoid taking any actions which are reasonably within its power to avoid taking and which are necessary to avoid) so that the interest on the Bonds will not be or become included in gross income for federal income tax purposes under the federal income tax laws as in effect from time to time; and (iii) will take no action or permit any action in the investment of the proceeds of the Bonds, amounts held under the Indenture or the Escrow Agreement or any other funds of the City which would result in making interest on the Bonds or the Prior Bonds subject to federal income taxes by reason of causing the Bonds or the Prior Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code, or direct or permit any action inconsistent with the on regulations under the Code as promulgated and as amended from time to time and as applicable to the Bonds. The Mayor, City Clerk, City Treasurer and other Authorized Officers of the City are authorized and directed to take all such actions as are necessary in order to carry out the issuance and delivery of the Bonds including, without limitation, to make any representations and certifications they deem proper pertaining to the use of the proceeds of the Bonds or the Prior Bonds and other moneys held under the Indenture in order to establish that the Bonds and the Prior Bonds shall not constitute arbitrage bonds as so defined. The City further covenants with the holders of the Bonds from time to time outstanding that: a. it will take all actions, if any, which shall be necessary in order further to provide for the levy, extension, collection and application of the Special Taxes imposed by or pursuant to this Ordinance, the Bond Order or the Establishing Ordinance, including enforcement of the Special Taxes by providing the County of Kendall with such information as is deemed necessary to enable it to include the property subject to the delinquent tax in the County Collector's annual tax sale and in the event the tax lien is forfeited at such tax sale upon request of any Bond Insurer or a majority of Bondholders by instituting proceedings, including assigning to the Trustee its right to purchase as a taxing district the unpaid taxes due upon the property, all in the manner provided by law; provided, however, that the obligation to purchase unpaid taxes or institute any proceeding shall only arise in the event the City makes the determination that sufficient funds are on deposit in the Administrative Expense Fund to (i) pay all remaining Administrative Expenses expected for such levy year, and (ii) apply to the purchase of the unpaid taxes and/or pay the costs of any proceeding; b. it will not take any action which would adversely affect the levy, extension, collection and application of the Special Taxes, except to abate the Special Taxes to the extent permitted by the Special Tax Roll and Report and to release the lien on a parcel upon prepayment of the Special Tax for such parcel as described in the Indenture and as provided in this Ordinance; and C. it will comply with all present and future laws concerning the levy, extension and collection of the Special Taxes; in each case so that the City shall be able to pay the principal of and interest on the Bonds as they come due, to replenish the Reserve Fund to the Reserve Requirement (as defined in the Indenture), or to restore the amount available under any Reserve Fund Insurance Policy, together with cash on deposit in the Reserve Fund, to the Reserve Requirement, and to replenish the Special Reserve Fund to the Special Reserve Requirement (as defined in the Indenture), and it will take all actions necessary to assure the timely collection of the Special Taxes, including without limitation, the enforcement of any delinquent Special Taxes as described in paragraph (a) above. Promptly following the date of issuance of the Bonds, the City shall file with the County of Kendall an abatement ordinance abating the Special Taxes levied pursuant to the bond ordinance for the Prior Bonds (the "Prior Bond Ordinance") for levy years 2025 through 2032. The City hereby agrees to deposit with the Trustee for the Bonds any amounts collected from the 7 2024 levy of Special Taxes pursuant to the Prior Bond Ordinance for deposit into the Bond and Interest Fund. Section 8. Additional Authority. The Mayor, the City Clerk and the other officers of the City are authorized to execute and deliver on behalf of the City such other documents, agreements and certificates and to do such other things consistent with the terms of this Ordinance as such officers and employees shall deem necessary or appropriate in order to effectuate the intent and purposes of this Ordinance, including without limitation to make any representations and certifications they deem proper pertaining to the use of the proceeds of the Bonds in order to establish that the Bonds and the Prior Bonds shall not constitute arbitrage bonds as defined in Section 7 above. Section 9. Transfer of Funds; Redemption of Prior Bonds. All amounts on deposit in the funds and accounts created for the Prior Bonds shall be transferred to the Bond and Interest Fund created under the Trust Indenture dated as of December 1, 2004, pursuant to which the Prior Bonds were authorized (the "Prior Indenture") and shall be irrevocably deposited into a separate and segregated escrow account or accounts to be established pursuant to the Escrow Agreement and applied, together with a portion of the proceeds of the Bonds as set forth in the Bond Order, to redeem the Prior Bonds or, with respect to the Bond and Interest Fund, the Reserve Fund or the Special Reserve Fund created under the Prior Indenture, may be transferred to the Bond and Interest Fund, the Reserve Fund or the Special Reserve Fund created for the Bonds to the extent not needed to fund the redemption price of the Prior Bonds as provided in the Bond Order and the Escrow Agreement. The Prior Bonds shall be called for redemption on the earliest practicable date on which notice of redemption may be provided in accordance with the Prior Indenture and as specified in the Bond Order and the Escrow Agreement, at a redemption price equal to 100% of the principal amount of the Prior Bonds to be redeemed, plus accrued interest to the redemption date. Such redemption shall be conducted in accordance with the provisions of the Prior Indenture and the Escrow Agreement. Section 10. Filing of Ordinance. The City Clerk is directed to file a certified copy of this Ordinance, and an accurate map of the Special Service Area, with the County Clerk of Kendall County. Section 11. Severability. If any section, paragraph, clause or provision of this Ordinance (including any section, paragraph, clause or provision of any exhibit to this Ordinance) shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other sections, paragraphs, clauses or provisions of this Ordinance ( or of any of the exhibits to this Ordinance). Section 12. _Repealer; Effect of Ordinance. All ordinances, resolutions and orders or parts of ordinances, resolutions and orders in conflict with this Ordinance are repealed to the extent of such conflict. The City Clerk shall cause this Ordinance to be published in pamphlet form. This Ordinance shall be effective upon its passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS this 25th day of November, 2025. VOTING AYE: CLr)lrl1' V 0r) hWV-Y r r-e K \ VOTING NAY: ABSENT: ABSTAINED: NOT VOTING: ATTEST: 0M 0tClerk [Signature page to Bond Ordinance] 7 Exhibit A UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS SPECIAL SERVICE AREA NUMBER 2004-104 THAT PART OF THE SOUTHEAST QUARTER OF SECTION 11, THAT PART OF SECTION 14, AND THAT PART OF THE NORTH HALF OF SECTION 23, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF KENNEDY ROAD WITH THE SOUTHERLY LINE OF THE BURLINGTON NORTHERN RAILROAD RIGHT- OF-WAY THROUGH SAID SECTION 14; THENCE NORTH 73 DEGREES 14 MINUTES 21 SECONDS EAST ALONG SAID SOUTHERLY LINE 1239.61 FEET TO THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 14; THENCE NORTH 88 DEGREES 04 MINUTES 00 SECONDS EAST, ALONG SAID NORTH LINE, 610.29 FEET TO THE NORTHEAST CORNER OF SAID NORTHWEST QUARTER; THENCE NORTH 87 DEGREES 54 MINUTES 03 SECONDS EAST ALONG THE SOUTH LINE OF SAID SOUTHEAST QUARTER OF SECTION 11, A DISTANCE OF 1329.33 FEET TO THE WEST LINE OF THE SOUTHEAST QUARTER OF SAID SOUTHEAST QUARTER; THENCE NORTH 01 DEGREES 21 MINUTES 20 SECONDS WEST ALONG SAID WEST LINE, 511.01 FEET TO SAID SOUTHERLY LINE OF THE BURLINGTON NORTHERN RAILROAD; THENCE NORTH 73 DEGREES 14 MINUTES 21 SECONDS EAST, ALONG SAID SOUTHERLY LINE, 837.66 FEET TO THE CENTERLINE OF MILL ROAD; THENCE SOUTH 74 DEGREES 18 MINUTES 13 SECONDS EAST ALONG SAID CENTERLINE 546.02 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER OF SECTION 11; THENCE SOUTH 01 DEGREE 19 MINUTES 08 SECONDS EAST ALONG SAID EAST LINE, 556.17 FEET TO THE SOUTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE SOUTH 01 DEGREE 19 MINUTES 08 SECONDS EAST ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 14, A DISTANCE OF 1122.0 FEET; THENCE SOUTH 87 DEGREES 45 MINUTES 51 SECONDS WEST, 438.0 FEET TO THE NORTHEAST CORNER OF LYNWOOD SUBDIVISION, EXTENSION FOUR; THENCE SOUTH 87 DEGREES 45 MINUTES 51 SECONDS WEST, ALONG THE NORTHERLY LINE OF SAID LYNWOOD SUBDIVISION, EXTENSION FOUR, 1168.80 FEET TO THE NORTHWEST CORNER THEREOF; THENCE SOUTH 01 DEGREE 46 MINUTES 18 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSIONS FOUR AND FIVE, 1173.80 FEET TO AN IRON STAKE; THENCE SOUTH 01 DEGREE 47 MINUTES 49 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSION FIVE, 376.25 FEET TO AN IRON STAKE; THENCE SOUTH 02 DEGREES 01 MINUTES 46 SECONDS EAST ALONG THE WESTERLY LINES OF LYNWOOD SUBDIVISION, EXTENSIONS FIVE AND SIX, 1950.62 FEET TO AN IRON STAKE; THENCE SOUTH 01 DEGREE 51 MINUTES 08 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSION SIX, 879.29 FEET TO THE CENTERLINE OF U. S. ROUTE NO. 34; THENCE SOUTH 45 DEGREES 14 MINUTES 47 SECONDS WEST ALONG SAID CENTERLINE 878.60 FEET; 1101 THENCE NORTH 37 DEGREES 07 MINUTES 26 SECONDS WEST, 2106.30 FEET; THENCE NORTH 47 DEGREES 17 MINUTES 26 SECONDS WEST, 1500.85 FEET TO THE CENTERLINE OF KENNEDY ROAD AND THE EASTERNMOST CORNER OF A TRACT DESCRIBED IN A QUIT CLAIM DEED TO GEORGE AND GLENNA PATTERSON, HUSBAND AND WIFE, RECORDED AS DOCUMENT NO. 72375 ON JANUARY 25,1972; THENCE NORTH 25 DEGREES 56 MINUTES 49 SECONDS EAST ALONG SAID CENTERLINE 236.34 FEET; THENCE NORTHEASTERLY AND NORTHERLY, A RADIUS OF 800.0 FEET; AN ARC DISTANCE OF 419.10 FEET; THENCE NORTH 04 DEGREES 04 MINUTES 07 SECONDS WEST ALONG SAID CENTERLINE 531.06 FEET; THENCE NORTH 05 DEGREES 06 MINUTES 07 SECONDS WEST ALONG SAID CENTERLINE 1866.0 FEET TO THE POINT OF BEGINNING IN BRISTOL TOWNSHIP, KENDALL COUNTY, ILLINOIS AND CONTAINING 372.223 ACRES. ALSO: THAT PART OF SECTIONS FOURTEEN (14), FIFTEEN (15) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. 1 RECORDED AS DOCUMENT #71-215; THENCE NORTH 60 DEGREES 17 MINUTES 26 SECONDS EAST, 724.86 FEET ALONG THE CENTERLINE OF KENNEDY ROAD TO THE POINT OF CURVATURE OF A 1094.72 FOOT RADIUS CURVE TO THE LEFT; THENCE NORTHEASTERLY 631.18 FEET ALONG SAID CURVE WHOSE CHORD BEARS NORTH 43 DEGREES 46 MINUTES 24 SECONDS EAST 622.47 FEET TO THE POINT OF TANGENCY OF SAID CURVE; THENCE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 11.57 FEET ALONG SAID CENTERLINE TO A POINT; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1776.45 FEET TO A POINT; THENCE SOUTH 52 DEGREES 21 MINUTES 00 SECONDS WEST 1343.89 FEET TO A POINT IN THE CENTERLINE OF BRISTOL ROAD; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 1778.085 FEET ALONG SAID CENTERLINE TO THE POINT OF BEGINNING. ALSO: THAT PART OF SECTIONS FOURTEEN (14) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. 1, RECORDED AS 11 DOCUMENT #71-215; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1778.85 FEET ALONG THE CENTERLINE OF BRISTOL ROAD FOR THE POINT OF BEGINNING; THENCE NORTH 52 DEGREES 21 MINUTES 00 SECONDS EAST 1343.89 FEET TO A POINT; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1645.23 FEET TO A POINT IN THE CENTERLINE OF ILLINOIS ROUTE 34; THENCE SOUTH 46 DEGREES 33 MINUTES 17 SECONDS WEST 1350.80 FEET ALONG SAID CENTERLINE OF ILLINOIS ROUTE 34 TO THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 1781.63 FEET ALONG SAID CENTERLINE OF BRISTOL ROAD TO THE POINT OF BEGINNING. ALSO: THAT PART OF SECTIONS FOURTEEN (14) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. 1, RECORDED AS DOCUMENT #71-215; THENCE NORTH 60 DEGREES 17 MINUTES 26 SECONDS EAST 724.86 FEET ALONG THE CENTERLINE OF KENNEDY ROAD TO THE POINT OF CURVATURE OF A 1094.72 FOOT RADIUS CURVE TO THE LEFT; THENCE NORTHEASTERLY 631.18 FEET ALONG SAID CURVE WHOSE CHORD BEARS NORTH 43 DEGREES 46 MINUTES 24 SECONDS EAST 622.47 FEET TO THE POINT OF TANGENCY OF SAID CURVE; THENCE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 11.57 FEET ALONG SAID CENTERLINE FOR THE POINT OF BEGINNING; THENCE CONTINUE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 551.92 FEET ALONG SAID CENTERLINE TO A POINT; THENCE SOUTH 45 DEGREES 56 MINUTES 15 SECONDS EAST 1501.96 FEET ALONG AN EXISTING FENCE LINE TO A POINT; THENCE SOUTH 35 DEGREES 48 MINUTES 56 SECONDS EAST 2104.69 FEET ALONG SAID FENCE LINE TO A POINT IN THE CENTERLINE OF ILLINOIS ROUTE 34; THENCE SOUTH 46 DEGREES 33 MINUTES 17 SECONDS WEST 652.28 FEET ALONG SAID CENTERLINE TO A POINT; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 3421.68 FEET TO THE POINT OF BEGINNING. ALSO: THAT PART OF THE SOUTH HALF OF SECTION 11 AND PART OF THE NORTHWEST QUARTER OF SECTION 14, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SECTION 11; THENCE SOUTH 0 DEGREES 57 MINUTES 0 SECONDS WEST 442 FEET TO THE NORTH LINE OF THE RIGHT OF WAY OF THE CHICAGO, 12 BURLINGTON AND QUINCY RAILROAD; THENCE NORTH 75 DEGREES 17 MINUTES 0 SECONDS EAST 1728 FEET ALONG SAID RIGHT OF WAY LINE TO THE SOUTH LINE OF SECTION 11; THENCE SOUTH 89 DEGREES 53 MINUTES 0 SECONDS EAST 1001.25 FEET ALONG THE SOUTH LINE OF SAID SECTION 11 TO THE SOUTHEAST CORNER OF THE WEST HALF OF SAID SECTION 11; THENCE NORTH 89 DEGREES 54 MINUTES 0 SECONDS EAST 1339.5 FEET ALONG THE SOUTH LINE OF SAID SECTION 11 TO THE SOUTHEAST CORNER OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 11; THENCE NORTH 0 DEGREES 40 MINUTES 0 SECONDS EAST 977.5 FEET TO THE CENTERLINE OF THE HIGHWAY; THENCE NORTH 74 DEGREES 15 MINUTES 0 SECONDS WEST 727.2 FEET ALONG SAID CENTERLINE; THENCE NORTH 79 DEGREES 10 MINUTES 0 SECONDS WEST 2877.4 FEET ALONG SAID CENTERLINE TO THE CENTERLINE OF A NORTH AND SOUTH HIGHWAY, THENCE SOUTH 7 DEGREES 7 MINUTES 0 SECONDS EAST 364.8 FEET ALONG THE CENTER OF SAID NORTH AND SOUTH HIGHWAY; THENCE NORTH 89 DEGREES 47 MINUTES 0 SECONDS WEST 503.33 FEET TO THE WEST LINE OF SAID SECTION 1I; THENCE SOUTH 0 DEGREES 52 MINUTES 0 SECONDS WEST ALONG SAID WEST LINE 1327.6 FEET TO THE POINT OF BEGINNING; EXCEPT THAT PART LYING NORTHERLY OF THE SOUTHERLY RIGHT OF WAY LINE OF THE CHICAGO, BURLINGTON AND QUINCY RAILROAD AFORESAID IN THE TOWNSHIP OF BRISTOL, KENDALL COUNTY, ILLINOIS. 13 Exhibit B Form of Trust Indenture (See attached) 14 Exhibit C Form of Bond Purchase Agreement (See attached) 15 Exhibit D Form of the Preliminary Official Statement (See attached) 16 Exhibit E Form of the Continuing Disclosure Agreement (See attached) 17 Exhibit F Form of the Escrow Agreement (See attached) Exhibit G Form of the Agreement for Administrative Services (See attached) W" Exhibit A UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS SPECIAL SERVICE AREA NUMBER 2004-104 THAT PART OF THE SOUTHEAST QUARTER OF SECTION 11, THAT PART OF SECTION 14, AND THAT PART OF THE NORTH HALF OF SECTION 23, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF KENNEDY ROAD WITH THE SOUTHERLY LINE OF THE BURLINGTON NORTHERN RAILROAD RIGHT- OF-WAY THROUGH SAID SECTION 14; THENCE NORTH 73 DEGREES 14 MINUTES 21 SECONDS EAST ALONG SAID SOUTHERLY LINE 1239.61 FEET TO THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 14; THENCE NORTH 88 DEGREES 04 MINUTES 00 SECONDS EAST, ALONG SAID NORTH LINE, 610.29 FEET TO THE NORTHEAST CORNER OF SAID NORTHWEST QUARTER; THENCE NORTH 87 DEGREES 54 MINUTES 03 SECONDS EAST ALONG THE SOUTH LINE OF SAID SOUTHEAST QUARTER OF SECTION 11, A DISTANCE OF 1329.33 FEET TO THE WEST LINE OF THE SOUTHEAST QUARTER OF SAID SOUTHEAST QUARTER; THENCE NORTH 01 DEGREES 21 MINUTES 20 SECONDS WEST ALONG SAID WEST LINE, 511.01 FEET TO SAID SOUTHERLY LINE OF THE BURLINGTON NORTHERN RAILROAD; THENCE NORTH 73 DEGREES 14 MINUTES 21 SECONDS EAST, ALONG SAID SOUTHERLY LINE, 837.66 FEET TO THE CENTERLINE OF MILL ROAD; THENCE SOUTH 74 DEGREES 18 MINUTES 13 SECONDS EAST ALONG SAID CENTERLINE 546.02 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER OF SECTION 11; THENCE SOUTH 01 DEGREE 19 MINUTES 08 SECONDS EAST ALONG SAID EAST LINE, 556.17 FEET TO THE SOUTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE SOUTH 01 DEGREE 19 MINUTES 08 SECONDS EAST ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 14, A DISTANCE OF 1122.0 FEET; THENCE SOUTH 87 DEGREES 45 MINUTES 51 SECONDS WEST, 438.0 FEET TO THE NORTHEAST CORNER OF LYNWOOD SUBDIVISION, EXTENSION FOUR; THENCE SOUTH 87 DEGREES 45 MINUTES 51 SECONDS WEST, ALONG THE NORTHERLY LINE OF SAID LYNWOOD SUBDIVISION, EXTENSION FOUR, 1168.80 FEET TO THE NORTHWEST CORNER THEREOF; THENCE SOUTH 01 DEGREE 46 MINUTES 18 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSIONS FOUR AND FIVE, 1173.80 FEET TO AN IRON STAKE; THENCE SOUTH 01 DEGREE 47 MINUTES 49 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSION FIVE, 376.25 FEET TO AN IRON STAKE; THENCE SOUTH 02 DEGREES 01 MINUTES 46 SECONDS EAST ALONG THE WESTERLY LINES OF LYNWOOD SUBDIVISION, EXTENSIONS FIVE AND SIX, 1950.62 FEET TO AN IRON STAKE; THENCE SOUTH 01 DEGREE 51 MINUTES 08 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSION SIX, 879.29 FEET TO THE CENTERLINE OF U. S. ROUTE NO. 34; THENCE SOUTH 45 DEGREES 14 MINUTES 47 SECONDS WEST ALONG SAID CENTERLINE 878.60 FEET; 10 THENCE NORTH 37 DEGREES 07 MINUTES 26 SECONDS WEST, 2106.30 FEET; THENCE NORTH 47 DEGREES 17 MINUTES 26 SECONDS WEST, 1500.95 FEET TO THE CENTERLINE OF KENNEDY ROAD AND THE EASTERNMOST CORNER OF A TRACT DESCRIBED IN A QUIT CLAIM DEED TO GEORGE AND GLENNA PATTERSON, HUSBAND AND WIFE, RECORDED AS DOCUMENT NO. 72375 ON JANUARY 25,1972; THENCE NORTH 25 DEGREES 56 MINUTES 49 SECONDS EAST ALONG SAID CENTERLINE 236.34 FEET; THENCE NORTHEASTERLY AND NORTHERLY, A RADIUS OF 800.0 FEET; AN ARC DISTANCE OF 419.10 FEET; THENCE NORTH 04 DEGREES 04 MINUTES 07 SECONDS WEST ALONG SAID CENTERLINE 531.06 FEET; THENCE NORTH 05 DEGREES 06 MINUTES 07 SECONDS WEST ALONG SAID CENTERLINE 1866.0 FEET TO THE POINT OF BEGINNING IN BRISTOL TOWNSHIP, KENDALL COUNTY, ILLINOIS AND CONTAINING 372.223 ACRES. ALSO: THAT PART OF SECTIONS FOURTEEN (14), FIFTEEN (15) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. 1 RECORDED AS DOCUMENT #71-215; THENCE NORTH 60 DEGREES 17 MINUTES 26 SECONDS EAST, 724.86 FEET ALONG THE CENTERLINE OF KENNEDY ROAD TO THE POINT OF CURVATURE OF A 1094.72 FOOT RADIUS CURVE TO THE LEFT, THENCE NORTHEASTERLY 631.18 FEET ALONG SAID CURVE WHOSE CHORD BEARS NORTH 43 DEGREES 46 MINUTES 24 SECONDS EAST 622.47 FEET TO THE POINT OF TANGENCY OF SAID CURVE; THENCE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 11.57 FEET ALONG SAID CENTERLINE TO A POINT; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1776.45 FEET TO A POINT; THENCE SOUTH 52 DEGREES 21 MINUTES 00 SECONDS WEST 1343.89 FEET TO A POINT IN THE CENTERLINE OF BRISTOL ROAD; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 1778.085 FEET ALONG SAID CENTERLINE TO THE POINT OF BEGINNING. ALSO: THAT PART OF SECTIONS FOURTEEN (14) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. 1, RECORDED AS 11 DOCUMENT 471-215; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1778.85 FEET ALONG THE CENTERLINE OF BRISTOL ROAD FOR THE POINT OF BEGINNING; THENCE NORTH 52 DEGREES 21 MINUTES 00 SECONDS EAST 1343.89 FEET TO A POINT; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1645.23 FEET TO A POINT IN THE CENTERLINE OF ILLINOIS ROUTE 34; THENCE SOUTH 46 DEGREES 33 MINUTES 17 SECONDS WEST 1350.80 FEET ALONG SAID CENTERLINE OF ILLINOIS ROUTE 34 TO THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 1781.63 FEET ALONG SAID CENTERLINE OF BRISTOL ROAD TO THE POINT OF BEGINNING. ALSO: THAT PART OF SECTIONS FOURTEEN (14) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. 1, RECORDED AS DOCUMENT #71-215; THENCE NORTH 60 DEGREES 17 MINUTES 26 SECONDS EAST 724.86 FEET ALONG THE CENTERLINE OF KENNEDY ROAD TO THE POINT OF CURVATURE OF A 1094,72 FOOT RADIUS CURVE TO THE LEFT; THENCE NORTHEASTERLY 631.18 FEET ALONG SAID CURVE WHOSE CHORD BEARS NORTH 43 DEGREES 46 MINUTES 24 SECONDS EAST 622.47 FEET TO THE POINT OF TANGENCY OF SAID CURVE; THENCE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 11.57 FEET ALONG SAID CENTERLINE FOR THE POINT OF BEGINNING; THENCE CONTINUE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 551.92 FEET ALONG SAID CENTERLINE TO A POINT; THENCE SOUTH 45 DEGREES 56 MINUTES 15 SECONDS EAST 1501.96 FEET ALONG AN EXISTING FENCE LINE TO A POINT; THENCE SOUTH 35 DEGREES 48 MINUTES 56 SECONDS EAST 2104.69 FEET ALONG SAID FENCE LINE TO A POINT IN THE CENTERLINE OF ILLINOIS ROUTE 34; THENCE SOUTH 46 DEGREES 33 MINUTES 17 SECONDS WEST 652.28 FEET ALONG SAID CENTERLINE TO A POINT; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 3421.68 FEET TO THE POINT OF BEGINNING. ALSO: THAT PART OF THE SOUTH HALF OF SECTION 11 AND PART OF THE NORTHWEST QUARTER OF SECTION 14, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SECTION 11; THENCE SOUTH 0 DEGREES 57 MINUTES 0 SECONDS WEST 442 FEET TO THE NORTH LINE OF THE RIGHT OF WAY OF THE CHICAGO, 12 BURLINGTON AND QUINCY RAILROAD; THENCE NORTH 75 DEGREES 17 MINUTES 0 SECONDS EAST 1728 FEET ALONG SAID RIGHT OF WAY LINE TO THE SOUTH LINE OF SECTION 11; THENCE SOUTH 89 DEGREES 53 MINUTES 0 SECONDS EAST 1001.25 FEET ALONG THE SOUTH LINE OF SAID SECTION 11 TO THE SOUTHEAST CORNER OF THE WEST HALF OF SAID SECTION 11; THENCE NORTH 89 DEGREES 54 MINUTES 0 SECONDS EAST 1339.5 FEET ALONG THE SOUTH LINE OF SAID SECTION 11 TO THE SOUTHEAST CORNER OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 11; THENCE NORTH 0 DEGREES 40 MINUTES 0 SECONDS EAST 977.5 FEET TO THE CENTERLINE OF THE HIGHWAY; THENCE NORTH 74 DEGREES 15 MINUTES 0 SECONDS WEST 727.2 FEET ALONG SAID CENTERLINE; THENCE NORTH 79 DEGREES 10 MINUTES 0 SECONDS WEST 2877.4 FEET ALONG SAID CENTERLINE TO THE CENTERLINE OF A NORTH AND SOUTH HIGHWAY; THENCE SOUTH 7 DEGREES 7 MINUTES 0 SECONDS EAST 364.8 FEET ALONG THE CENTER OF SAID NORTH AND SOUTH HIGHWAY; THENCE NORTH 89 DEGREES 47 MINUTES 0 SECONDS WEST 503.33 FEET TO THE WEST LINE OF SAID SECTION 11; THENCE SOUTH 0 DEGREES 52 MINUTES 0 SECONDS WEST ALONG SAID WEST LINE 1327.6 FEET TO THE POINT OF BEGINNING; EXCEPT THAT PART LYING NORTHERLY OF THE SOUTHERLY RIGHT OF WAY LINE OF THE CHICAGO, BURLINGTON AND QUINCY RAILROAD AFORESAID IN THE TOWNSHIP OF BRISTOL, KENDALL COUNTY, ILLINOIS. 13 Exhibit B Form of Trust Indenture (See attached) 14 TRUST INDENTURE between UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION as Trustee Dated as of December 1, 2025 UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS SPECIAL SERVICE AREA NUMBER 2004-104 SPECIAL TAX REFUNDING BONDS, SERIES 2025 (GRANDE RESERVE PROJECT) TABLE OF CONTENTS ARTICLE1................................................................................................................................... 3 STATUTORY AUTHORITY AND DEFINITIONS.................................................................. 3 Section 1.1 Authority for this Indenture............................................................................ 3 Section 1.2 Agreement for Benefit of Owners of the Series 2025 Bonds ......................... 3 Section1.3 Definitions....................................................................................................... 3 ARTICLE2.................................................................................................................................. I I BONDDETAILS......................................................................................................................1 i Section 2.1 Purpose of Issuance; Amount of Series 2025 Bonds.....................................I I Section 2.2 Form; Denominations; Numbers....................................................................I l Section 2.3 Date of Bonds: CUSIP Identification Numbers.............................................I I Section 2.4 Maturity; Interest Rate................................................................................... I I Section2.5 Interest........................................................................................................... 12 Section 2.6 Form of Series 2025 Bonds: Execution; Authentication ............................... 12 Section 2.7 Payment of the Series 2025 Bonds............................................................... 12 Section 2.8 Appointment of Trustee................................................................................ 13 Section 2.9 Registration of Series 2025 Bonds; Persons Treated as Owners .................. 13 Section 2.10 Global Form; Securities Depository............................................................ 14 Section 2.11 Additional Bonds......................................................................................... 15 ARTICLE3............................................................ REDEMPTION OF SERIES 2025 BONDS..... ................. 15 ................. 15 Section 3 .1 Optional Redemption.................................................................................... 15 Section 3.2 Mandatory Redemption upon Condemnation ............................................... 15 Section 3.3 Special Mandatory Redemption from Optional Prepayment of Special Tax 15 Section 3.4 Redemption Provisions; Notice of Redemption ........................................... 16 Section 3.5 Purchase in Lieu of Redemption................................................................... 17 ARTICLE4................................................................................................................................. 17 APPLICATION OF PROCEEDS AND OTHER AMOUNTS ............................................ 17 Section 4.1 Application of Proceeds ...................................... Section 4.2 Amounts Held for Prior Bonds..................................................................... 18 ARTICLE5................................................................................................................................. 18 SECURITY FOR THE SERIES 2025 BONDS ....................................... I............................ 18 Section 5.1 Limited Obligations...................................................................................... 18 Section 5.2 Levy of Special Tax...................................................................................... 18 Section 5.3 Bond Insurance Policy Covenants in Favor of Bond Insurer ....................... 19 Section 5.4 Provisions Relating to Reserve Policy ........................................ ARTICLE6............................................................................................................... FUNDSAND ACCOUNTS........................................................... -.................... ....... 25 ....27 .... 27 Section 6.1 Bond and Interest Fund................................................................................. 27 Section6.2 Reserve Fund................................................................................................ 29 Section 6.3 Special Reserve Fund.................................................................................... 31 Section 6.4 Administrative Expense Fund....................................................................... 31 Section6.5 Rebate Fund.................................................................................................. 32 Section 6.6 Investment of Funds...................................................................................... 32 ARTICLE7................................................................................................................................. 33 COVENANTS AND AGREEMENTS OF THE CITY ........................................................ 33 Section 7.1 Tax Covenants............................................................................................... 33 Section 7.2 bevy and Collection of Taxes....................................................................... 34 Section 7.3 Proper Books and Records............................................................................ 35 Section 7.4 Against Encumbrances.................................................................................. 35 Section 7.5 Continuing Disclosure Undertaking............................................................. 35 ARTICLE8......................................................................I... DEFAULTS AND REMEDIES ....................................... Section 8.1 Section 8.2 Section 8.3 Section 8.4 Section 8.5 Section 8.6 Section 8.7 Section 8.8 Section 8.9 Section 8.10 Section 8.11 ARTICLE 9. TRUSTEE Section 9.1 Section 9.2 Section 9.3 Section 9.4 Section 9.5 Section 9.6 Section 9.7 Events of Default Remedies ............ Noticeof Default......................................................... Termination of Proceedings by Trustee ...................... Right of Bondholders to Control Proceedings ............ Right of Bondholders to Institute Suit ........................ Suitsby Trustee........................................................... Remedies Cumulative ................................................. Waiverof Default........................................................ Application of Moneys After Default ........................ Bond Insurer Control ................................................. ............................... 35 ............................... 35 ................................ 35 ........I....................... 36 ................................ 36 ................................ 37 ................................ 37 ................................ 37 ................................ 38 ................................ 38 ..............................1. 38 ................................ 38 ................................ 39 Appointment of the Trustee..................................................................... Performance of Duties............................................................................. Instruments Upon Which Trustee May Rely ........................................... Trustee not Responsible for Recitals and Other Matters ......................... Trustee May Acquire Series 2025 Bonds ................................................. Qualification of Trustee........................................................................... Resignation or Removal of Trustee and Appointment of Successor........ 39 39 39 39 41 41 42 42 42 Section 9.8 Concerning the Successor Trustee................................................................ 43 Section 9.9 Monthly Statements...................................................................................... 44 ARTICLE10............................................................................................................................... 44 SUPPLEMENTAL INDENTURES....................................................................................... 44 Section 10.1 Supplemental Indentures Not Requiring Consent of Bondholders ............. 44 Section 10.2 Supplemental Indentures Requiring Consent of Bondholders .................... 45 Section 10.3 Supplemental Indenture to Modify this Indenture ...................................... 45 Section 10.4 Trustee May Rely Upon Opinion of Counsel Re: Supplemental Indenture 46 Section10.5 Notation....................................................................................................... 46 Section 10.6 Opinion of Bond Counsel............................................................................ 46 ARTICLE 11....................... DEFEASANCE .............. Section 11.1 Defeasance ARTICLE 12 ...................... MISCELLANEOUS ...... ................................................................................1. 46 ............................................... . .......... I ......... I............. 46 .................................................................................. 46 .................................................................................. 48 ....................................................... I ....................... ... 48 Section12.1 Severability.................................................................................................. 48 Section12.2 Notices.........................................................................................................48 Section12.3 Holidays....................................................................................................... 49 Section 12.4 Execution of Counterparts........................................................................... 49 Section 12.5 Applicable Law........................................................................................... 49 Section 12.6 Immunity of Officers. Employees, Elected Officials of the City ................ 49 EXHIBITS Exhibit A Legal Description of Special Service Area Exhibit B Form of Series 2025 Bond Exhibit C Form of Satisfaction of Tax Lien Exhibit D Form of Disbursement Request TRUST INDENTURE THIS TRUST INDENTURE (the "Indenture ") is made and entered into as of December 1, 2025, by and between the United City of Yorkville, Kendall County, Illinois, a municipal corporation organized and existing under and by virtue of the Constitution and laws of the State of Illinois (the "City"), and U.S. Bank Trust Company, National Association, Chicago, Illinois, as trustee (the "Trustee"). WITNESSETH: WHEREAS, by Ordinance No. 2004-49 adopted at a meeting held on September 14, 2004, as amended by Ordinance Number 2004-60 adopted on October 26, 2004, the City has established the "United City of Yorkville Special Service Area Number 2004-104" as further described in Exhibit A to this Indenture (the "Special Service Area Number 2004-104 "); and WHEREAS, on October 26, 2004, the City Council (the "Corporate Authorities") adopted Ordinance No. 2004-61 pursuant to the Special Service Area Tax Law, 35 ILCS 200127- 5, et seq. (the "Special Service Area Act ") and determined it to be in the best interests of the City to issue notto exceed $14,000,000 principal amount of the United City of Yorkville Special Service Area Number 2004-104 Central Grande Reserve Special Tax Bonds, Series 2004 (MPI Grande Reserve Project) (the "Prior Bonds") for the purpose of providing a portion of the funds needed for costs of the Special Services (as defined below) within Special Service Area Number 2004- 104; and WHEREAS, on November 25, 2025, the Corporate Authorities adopted Ordinance No. 2025- , as supplemented by a Bond Order executed pursuant thereto (the "Band Ordinance ") and pursuant to the Special Service Area Act, determined it to be in the best interests of the City to issue not to exceed $3,800,000 principal amount of the United City of Yorkville, Kendall County, Illinois Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project) (the "Series 2025 Bonds ") for the purpose of refunding the Prior Bonds; and WHEREAS, the Bond Ordinance authorized the Mayor and City Clerk to establish certain specific terms of the Series 2025 Bonds by executing and delivering a Bond Purchase Agreement with the Purchaser (defined below) and a Bond Order pursuant to the Bond Ordinance; and WHEREAS, pursuant to the terms so established the City will issue $ principal amount of Series 2025 Bonds upon the terms specified in this Indenture; and WHEREAS, it is in the public interest and for the benefit of the City, Special Service Area Number 2004-104 (the "Special Service Area ") and the owners of the Series 2025 Bonds that the City enter into this Indenture to provide for the issuance of the Series 2025 Bonds, the disbursement of proceeds of the Series 2025 Bonds, the deposit of the Special Taxes levied pursuant to the Bond Ordinance securing the Series 2025 Bonds, and the administration and payment of the Series 2025 Bonds; and WHEREAS, all things necessary to cause the Series 2025 Bonds, when executed by the City and issued as provided in the Special Service Area Act, the Local Government Debt Reform Act (as defined below), the Bond Ordinance and this Indenture, to be legal, valid and binding and special obligations of the City in accordance with their terms, and all things necessary to cause the creation, authorization, execution and delivery of this Indenture and the creation, authorization, execution and issuance of the Series 2025 Bonds, subject to the terms of Indenture, have in all respects been duly authorized; NOW, THEREFORE, THIS INDENTURE OF TRUST WITNESSETH: GRANTING CLAUSES That the City in consideration of the premises, the acceptance by the Trustee of the trusts created hereby and the purchase and acceptance of the Series 2025 Bonds by the owners thereof, and of the sum of one hundred dollars, lawful money of the United States of America, to it duly paid by the Trustee at or before the execution and delivery of these presents, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, in order to secure the payment of the principal of, premium, if any, and interest on the Series 2025 Bonds according to their tenor and effect, and to secure the performance and observance by the City of all the covenants expressed or implied herein and in the Series 2025 Bonds, does hereby pledge and assign, and grant a security interest in, the following to the Trustee, and its successors in trust and assigns forever, to secure the performance of the obligations of the City hereinafter set forth; GRANTING CLAUSE FIRST All right, title and interest of the City in and to the Special Taxes (defined below) and any monies held under this Indenture by the Trustee, including the proceeds of the Series 2025 Bonds and the interest, profits and other income derived from the investment thereof other than amounts held by the Trustee in the Administrative Expense Fund, the Special Reserve Fund and the Rebate Fund; GRANTING CLAUSE SECOND All funds, monies, property and security and any and all other rights and interests in property whether tangible or intangible from time to time hereafter by delivery or by writing of any kind, conveyed, mortgaged, pledged, assigned or transferred as and for additional security hereunder for the Series 2025 Bonds by the City or by anyone on its behalf or with its written consent including without limitation the Bond Insurance Policy and the proceeds paid thereunder, to the Trustee, which is hereby authorized to receive any and all such property at any and all times and to hold and apply the same subject to the terms hereof; TO HAVE AND TO HOLD, all and singular the Trust Estate, whether now owned or hereafter acquired, unto the Trustee and its respective successors in said trust and assigns forever; IN TRUST NEVERTHELESS, upon the terms and trust herein set forth for the equal and proportionate benefit, security and protection of all present and future owners of the Series 2025 Bonds from time to time issued under and secured by this Indenture without privilege, priority or distinction as to the lien or otherwise of any of the Series 2025 Bonds over any of the other Series 2025 Bonds (except as otherwise provided herein); PROVIDED, HOWEVER, that if the City, its successors or assigns, shall pay, or cause to be paid, the principal of, premium, if any, and interest on the Series 2025 Bonds due or to become due thereon, at the times and in the manner mentioned in the Series 2025 Bonds according to the true intent and meaning thereof, and shall cause the payments to be made on the Series 2025 Bonds as required under this Indenture, or shall provide, as penmitted hereby, for the payment thereof by depositing with the Trustee the entire amount due or to become due thereon and shall cause to be kept, performed and observed all of its covenants and conditions pursuant to the terms of this Indenture, and shall pay or cause to be paid all sums of money due or to become due in accordance with the terms and provisions hereof, then upon the final payment thereof, this Indenture and the rights hereby granted shall cease, determine and be void; otherwise this Indenture is to be and remain in full force and effect. THIS INDENTURE OF TRUST FURTHER WITNESSETH, and it is expressly declared, that all Series 2025 Bonds issued and secured hereunder are to be issued, authenticated and delivered and all said property, rights and interests, and amounts hereby assigned and pledged are to be dealt with and disposed of under, upon and subject to the terms, conditions, stipulations, covenants, agreements, trusts, uses and purposes as herein expressed, and the City has agreed and covenanted, and does hereby agree and covenant with the Trustee and with the respective owners of the Series 2025 Bonds as follows: ARTICLE 1 STATUTORY AUTHORITY AND DEFINITIONS Section 1.1 Authority for this Indenture. This Indenture is entered into pursuant to the powers of the City pursuant to Part 6 of Section 7 of Article VII of the 1970 Constitution of the State of Illinois and pursuantto the respective provisions of the Special Service Area Act, the Local Government Debt Reform Act and the Bond Ordinance. Section 1.2 Agreement for Benefit of Owners of the Series 2025 Bonds. The provisions, covenants and agreements to be performed by or on behalf of the City under this Indenture shall be for the equal benefit, protection and security of the Bondholders except as otherwise expressly provided herein. All of the Series 2025 Bonds, without regard to the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Series 2025 Bonds over any other of the Series 2025 Bonds, except as expressly provided in or permitted by this Indenture. The Trustee may become the owner of any of the Series 2025 Bonds in its own or any other capacity with the same rights it would have if it were not the Trustee. Section 1.3 Definitions. Unless the context otherwise requires, the terms defined in this Section 1.3 shall, for all purposes of this Indenture, of any Supplemental Indenture, and of any certificate, opinion or other document mentioned in this Indenture, have the meanings specified below. All references in this Indenture to "Articles," "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Indenture, and the words "herein," "hereof," "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision of this Indenture. "Administrative Expenses" means the following actual or reasonably estimated costs permitted in accordance with the Special Service Area Act and directly related to the administration of the Special Service Area and the Series 2025 Bonds as determined by the City or the Consultant on its behalf: the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules and the amended Special Tax Roll; the costs of collecting the Special Taxes (whether by the City, the County or otherwise), the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee and any fiscal agent (including its legal counsel) in the discharge of the duties required of it under this Indenture or any trustee or fiscal agent agreement; the costs of applying for and maintaining ratings from any nationally recognized rating agency; the fees and expenses of the Bond Insurer required to be paid by the City to the Bond Insurer pursuant to the provisions of this Indenture; the costs of the Rebate Consultant; the costs of the City or its designee in complying with disclosure requirements of applicable federal and state securities laws and of the Special Service Area Act, including, but not limited to, public inquiries regarding the Special Taxes, any termination payments owed by the City in connection with any guaranteed investment contract, forward purchase agreement or other investment of funds held under this Indenture; the costs associated with the release of funds from any escrow account or fund held under this Indenture; and amounts advanced by the City for any other administrative purposes of the Special Service Area, including the costs of computing Special Tax prepayment amounts, recordings related to the prepayment, discharge or satisfaction of Special Tax; the costs of commencing foreclosure and pursuing collection of delinquent Special Tax; and the reasonable fees of legal counsel of the City or the Trustee incurred in connection with any of the foregoing. "Administrative Expense Fund" means the fund by that name established pursuant to Section 6.4 of this Indenture. "Administrative Services Agreement" means the Agreement for Administrative Services entered into as of the date hereof between the City and the Consultant. "Authorized Denomination" means denominations of $5,000 and integral multiples of $1,000 in excess thereof. "Authorized Officer" means the Mayor, the City Clerk, the Treasurer, or any other officer designated as such pursuant to a certificate of the Mayor delivered to the Trustee. "Beneficial Owner " means, when the Series 2025 Bonds are in a book -entry system, any person who acquires a beneficial ownership interest in a Series 2025 Bond held by DTC. "Bond and Interest Fund" means the fund by that name established pursuant to Section 6.1 of this Indenture. "Bond Insurance Policy " means the municipal bond insurance policy issued by the Bond Insurer guaranteeing the scheduled payment of principal of and interest on the Series 2025 Bonds when due. 4 thereof. "Bond Insurer" or "_" means or any successor thereto or assignee "Bond Registrar" means U.S. Bank Trust Company, National Association and its successors or assigns. "Bondholder, " "Holder " or "Owner " means the person in whose name such Series 2025 Bond is registered in the bond register maintained by the Bond Registrar. "Business Day" means a day on which banks in Chicago, Illinois, and New York, New York are open to transact business. "Chase" means JPMorgan Chase Bank, N.A., a national banking association. "City" means the United City of Yorkville, Kendall County, Illinois. "Code " means the Internal Revenue Code of 1986, as amended. "Consultant" means DTA, formerly known as David Taussig & Associates, Inc., and its successors and assigns or any other firm selected by the City to assist it in administering the Special Service Area and the extension and collection of Special Taxes pursuant to the Special Tax Roll and Report. "Continuing Disclosure Agreement" means the Continuing Disclosure Agreement between the City and the Dissemination Agent named therein. "Corporate Authorities" means the City Council of the City. "Costs of Issuance Account" means the account by that name established pursuant to Section 6.4 of this Indenture. "County" means Kendall County, Illinois. "Defeasance Securities" means any bond or other obligations which, as to both principal and interest, constitute direct obligations of, or the timely payment of which are unconditionally guaranteed by, the United States of America, and any certificates or any other evidences of an ownership interest in obligations or in specified portions thereof (which may consist of specified portions of the interest thereon) of the character described in this definition. "Depository Participant" shall have the meaning given that term in Section 2.10 of this Indenture. "Disbursement Request" means a request from the City signed by an Authorized Officer requesting a disbursement of amounts held in the Cost of Issuance Account in the form attached hereto as Exhibit D. "DTC" means The Depository Trust Company, New York, New York. "Escrow Account" means the separate and segregated escrow account established with the Escrow Agent pursuant to the Escrow Agreement. "Escrow Agent" means U.S. Bank Trust Company, National Association, Chicago, Illinois, as escrow agent, or its successors and assigns "Escrow Agreement" means the agreement or agreements by and between the City and the Escrow Agent with respect to the refunding of the Prior Bonds. "Establishing Ordinance " means Ordinance No. 2004-49 adopted on September 14, 2004, as amended by Ordinance Number 2004-60 adopted on October 26, 2004. "Event of Default" shall have the meaning given that term in Section 8 .1 of this Indenture. "Foreclosure Proceeds" means the proceeds of any redemption or sale of property in the Special Service Area sold as the result of a foreclosure action of the lien of the Special Taxes. "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 and obligations, the prompt payment of principal of and interest on which is guaranteed by a pledge of the full faith and credit of the United States of America. "Indenture" means this Trust Indenture dated as of December 1, 2025 between the City and the Trustee, as amended and supplemented from time to time. "Indirect Participant" shall have the meaning given that term in Section 2.10 of this Indenture. "Insured Obligations" means the Series 2025 Bonds. "Insurer Default" means: (A) the Bond Insurer has failed to make any payment under the Bond Insurance Policy when due and owing in accordance with its terms; or (B) the Bond Insurer shall (i) voluntarily commence any proceeding or file any petition seeking relief under the United States Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency or similar law, (ii) consent to the institution of or fail to controvert in a timely and appropriate manner, any such proceeding or the filing of any such petition, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator or similar official for such party or for a substantial part of its property, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take action for the purpose of effecting any of the foregoing; or (C) any state or federal agency or instrumentality shall order the suspension of payments on the Bond Insurance Policy or shall obtain an order or grant approval for the rehabilitation, liquidation, conservation or dissolution of the Bond Insurer (including without limitation under the New York Insurance Law). M "Interest Payment Date " means March I and September 1 of each year commencing on March 1, 2026. "Late Payment Rate " means the lesser of (a) the greater of (i) the per annum rate of interest, publicly announced from time to time by Chase at its principal office in the City of New York, New York, as its prime or base lending rate ("Prime Rate ") (any change in such Prime Rate to be effective on the date such change is announced by Chase) plus 5%, and (ii) the then applicable highest rate of interest on the Series 2025 Bonds and (b) the maximum rate permissible under applicable usury or similar laws limiting interest rates. The Late Payment Rate shall be computed on the basis of the actual number of days elapsed in a year of 360 days. In the event Chase ceases to announce its Prime Rate publicly, the Prime Rate shall be the publicly announced prime or base lending rate of such national bank, banking association or trust company bank as the Bond Insurer, in its sole and absolute discretion, shall designate. "Letter of Representations " means the Blanket Issuer Letter of Representations dated August 29, 2002 from the City to DTC, as amended from time to time. "Local Government Debt Reform Act" means the Local Government Debt Reform Act, 30 [LCS §350/1 et seq., as amended. "Official Statement" means the Official Statement dated , 2025 relating to the Bonds. "Parcel" shall have the meaning given that term in the Special Tax Roll and Report. "Prior Bonds " means the United City of Yorkville Special Service Area Number 2004-104 Central Grande Reserve Special Tax Bonds, Series 2004 (MPI Grande Reserve Project). "Prior Bonds Bond and Interest Fund "means the Bond and Interest Fund establ ished with the Prior Bonds Successor Trustee under the Prior Indenture. "Prior Bonds Reserve Fund" means the Reserve Fund established with the Prior Bonds Successor Trustee under the Prior Indenture. "Prior Bonds Successor Trustee " means U.S. Bank Trust Company, National Association, as successor to LaSalle Bank National Association, as trustee for the Prior Bonds. "Prior Indenture " means that certain Trust Indenture dated as of December 1, 2004 by and between the City and the Prior Bonds Successor Trustee, pursuant to which the Prior Bonds were issued. "Purchase Contract" means the Bond Purchase Agreement dated , 2025 between the Purchaser and the City. "Purchaser" means Raymond James & Associates, Inc. "Qualified Investments " means, to the extent permitted by then applicable Illinois law, the following: (a) Government Securities; (b) bonds, notes, debentures, or other similar obligations of the United States of America or its agencies, rated in the highest general classification established by a rating service of nationally recognized expertise in rating such obligations, including (i) federal land banks, federal intermediate credit banks, banks for cooperative, federal farm credit banks, or any other entity authorized to issue debt obligations under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.,); (ii) the federal home loan banks and the federal home loan mortgage corporation; and (iii) any other agency created by Act of Congress; (c) interest bearing certificates of deposit, interest bearing savings accounts, interest bearing time deposits, or other investments constituting direct obligations of any bank as defined by the Illinois Banking Act which are insured by the Federal Deposit Insurance Corporation; (d) money market mutual funds registered under the Investment Company Act of 1940 as amended (including those of an affiliate of the Trustee for which the Trustee or any of its affiliates provides management advisory or other services) invested solely in obligations listed in paragraph (a) and (b) above including any mutual fund from which the Trustee or any of its affiliates may receive compensation; together with such other investments as shall from time to time be lawful for the investment of City funds and shall be approved by the holders of not less than fifty-one percent (51%) of aggregate principal amount of Series 2025 Bonds outstanding; provided that "Qualified Investments" shall not include a financial instrument, commonly known as a "derivative," whose performance is derived, at least in part, from the performance of any underlying asset, including, without limitation, futures, options on securities, options on futures, forward contracts, swap agreements, structured notes and participations in pools of mortgages or other assets. "Rebate Consultant" means an entity selected by the City expert in the calculation of rebate amounts pursuant to Section 148 of the Internal Revenue Code of 1986, as amended. If at any time the Rebate Consultant resigns or is removed, and the City shall not have appointed a successor within 30 days, the Rebate Consultant shall be an entity selected by the Trustee. "Rebate Fund" means the fund by that name established pursuant to Section 6.5 of this Indenture. "Rebate Requirement" shall have the meaning given that term in Section 7.1(b) of this Indenture. "Record Date " means the fifteenth day of the month preceding an Interest Payment Date. "Redemption Date " means January 14, 2026. "Reserve Fund" means the fund by that name created pursuant to Section 6.2 of this Indenture. "Reserve Policy" means the Reserve Fund Surety Policy issued by the Bond Insurer for deposit to the credit of the Reserve Fund. "Reserve Fund Credit" shall have the meaning given that term in Section A of Exhibit B to the Special Tax Roll and Report. "Reserve Fund Surety Policy" means the Reserve Policy and any other insurance policy, surety bond or other evidence of insurance procured by the City and deposited to the credit of the Reserve Fund (or any account or subaccount therein) in lieu of or in partial substitution for cash or securities on deposit therein, in order to guarantee or assure the timely payment of principal or interest, or both, of outstanding Bonds in a stated amount subject only to notification that there are insufficient funds therefor. Any such Reserve Fund Surety Policy shall constitute an unconditional senior obligation of the issuer thereof. The issuer of the Reserve Policy shall be , and the issuer of any substitute or additional Reserve Fund Surety Policy shall be a municipal bond insurer which has been approved by the Bond Insurer. This definition shall also include any related covenants or agreements contained in a side document with the insurer in order to obtain the Reserve Fund Surety Policy, including, but not limited to, the Debt Service Reserve Agreement dated , 2025 between the City and "Reserve Requirement" means an amount equal to $ as reduced by the amount of Reserve Fund Credits in connection with prepayments as set forth in Section 6.1 of this Indenture. "Security Documents" shall mean this Indenture, the Bond Ordinance, the Series 2025 Bonds and/or any additional or supplemental document executed in connection with the Series 2025 Bonds. "Series 2025 Bonds " means the City's Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project) in the aggregate principal amount of "Special Redemption Account" means the account by that name established pursuant to Section 6.1 of this Indenture. "Special Reserve Fund" means the fund by that name created pursuant to Section 6.3 of this Indenture. "Special Reserve Fund Credit" means, with respect to each Parcel, the difference between (A) the amount of the prepayment of the principal allocable to such Parcel calculated in accordance with the Special Tax Roll and Report and (B) the principal allocable to such Parcel calculated in accordance with the Special Tax Roll and Report if the Prior Bonds remained outstanding and the Series 2025 Bonds were not issued, as determined by the Consultant. "Special Reserve Fund Requirement" means an amount equal to $ to fund Special Reserve Fund Credits for possible prepayments. "Special Service Area" means United City of Yorkville Special Service Area Number 2004-104, described more fully in Exhibit A to this Indenture. "Special Service Area Act " means the Special Service Area Tax Law, 35 ILCS §200/27-5 et seq., as amended. "Special Services" means the improvements benefiting the Special Service Area consisting of the acquisition, construction and installation of public improvements including, but not limited to, engineering, soil testing and appurtenant work, mass grading and demolition, storm water management facilities, storm drainage systems and storm sewers, site clearing and tree removal, public water facilities, sanitary sewer facilities, erosion control measures, roads, streets, curbs, gutters, street lighting, traffic controls, sidewalks, equestrian paths and related street improvements, and equipment and materials necessary for the maintenance thereof, public parks, park improvements, bicycle paths, landscaping, wetland mitigation and tree installation, costs for land and easement acquisitions relating to any of the foregoing improvements, required tap -on and related fees for water or sanitary sewer services and other eligible costs to serve the Special Service Area. "Special Tax Requirement" means the "Special Tax Requirement" as defined in Section II of the Special Tax Roll and Report, provided that credit may be given for any amounts on deposit in the Funds and Accounts created by this Indenture and available to pay the Special Tax Requirement. "Special Tax Roll" means the special tax roll for the payment of the Series 2025 Bonds established and amended from time to time pursuant to the Special Tax Roll and Report. "Special Tax Roll and Report" means the United City of Yorkville Special Service Area Number 2004-104 Special Tax Roll and Report including all exhibits attached thereto, prepared by the Consultant as amended from time to time. "Special Taxes" means the taxes levied by the City on all taxable real property within the Special Service Area pursuant to the Special Tax Roll and this Indenture. "Supplemental Indenture " means an indenture adopted by the Corporate Authorities of the City as provided in Article 10 hereof which amends or supplements this Indenture. "Tax Agreement " or "Tax Agreements " means the Tax Certificate of the City dated the date of issuance and delivery of the Series 2025 Bonds, as amended from time to time. 10 "Trustee " means U.S. Bank Trust Company, National Association, Chicago, Illinois and its successors and assigns. "Trust Estate" means the property conveyed to the Trustee pursuant to the Granting Clauses of this Indenture. ARTICLE 2 BOND DETAILS Section 2.1 Purpose of Issuance; Amount of Series 2025 Bonds. The sum of $ shall be borrowed by the City pursuant to the Special Service Area Act and the Local Government Debt Reform Act for the purpose of paying a portion of the costs of defeasing and currently refunding the Prior Bonds, including the costs of the City in connection with the issuance of the Series 2025 Bonds (including, without limitation, the premiums for the Bond Insurance Policy and the Reserve Policy) and deposits to the Reserve Fund. In evidence of such borrowing, Series 2025 Bonds in the aggregate principal amount of $ shall be issued as provided in this Indenture. The total principal amount of Bonds that may be issued pursuant to this Indenture is $ Section 2.2 Form; Denominations; Numbers. The Series 2025 Bonds shall be issued only in fully registered form without coupons and in the denominations of $5,000 and integral multiples of $1,000 in excess of that sum. Section 2.3 Date of Bonds: CUSIP Identification Numbers. The Series 2025 Bonds shall be dated as of the date of delivery of the Series 2025 Bonds to the Purchaser upon original issuance. CUSIP identification numbers shall be imprinted on the Series 2025 Bonds, provided that any failure on the part of the City or the Trustee to use such CUSIP numbers in any notice to any Bondholders shall not constitute an event of default or any violation of the City's contract with such Bondholders and shall not impair the effectiveness of such notice. Section 2.4 Maturity, Interest Rate. The Series 2025 Bonds shall mature and become payable on the date and in the amount and shall bear interest at the rate set forth below: (March 1) Interest Year Amount Rate 2026 2027 2028 2029 2030 2031 2032 2033 2034 11 Section 2.5 Interest. The Series 2025 Bonds shall bear interest at the rates set forth in Section 2.4 payable on the Interest Payment Dates in each year with the first Interest Payment Date being March 1, 2026. Interest on the Series 2025 Bonds shall be calculated on the basis of a 360- day year composed of twelve 30-day months. Each Series 2025 Bond shall bear interest from the Interest Payment Date next preceding the date of authentication of such Series 2025 Bond unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from its dated date; provided, however, that if at the time of authentication of a Series 2025 Bond, interest is in default on such Series 2025 Bond, such Series 2025 Bond shall bear interest from the Interest Payment Date to which interest had previously been paid or made available for payment on such Series 2025 Bond. Section 2.6 Form of Series 2025 Bonds: Execution; Authentication. The Series 2025 Bonds shall be in substantially the form set forth in Exhibit B to this Indenture. Each Series 2025 Bond shall be executed by the manual or facsimile signature of the Mayor and the manual or facsimile signature of the City Clerk and shall have the corporate seal of the City affixed to it (or a facsimile of that seal printed on it). The Mayor and the City Clerk (if they have not already done so) are authorized and directed to file with the Illinois Secretary of State their manual signatures certified by them pursuant to the Uniform Facsimile Signatures of Public Officials Act, as amended, which shall authorize the use of their facsimile signatures to execute the Series 2025 Bonds. Each Series 2025 Bond so executed shall be as effective as if manually executed. In case any officer of the City whose signature or a facsimile of whose signature shall appear on the Series 2025 Bonds shall cease to be such officer before authentication and delivery of any of the Series 2025 Bonds, that signature or facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. No Series 2025 Bond shall be valid for any purpose unless and until a certificate of authentication on that Series 2025 Bond substantially in the form set forth in the bond form in Exhibit B to this Indenture shall have been duly executed by the Trustee appointed by this Indenture as authenticating agent of the City. Execution of that certificate upon any Series 2025 Bond shall be conclusive evidence that the Series 2025 Bond has been authenticated and delivered under this Indenture. Section 2.7 Payment of the Series 2025 Bonds. The Series 2025 Bonds shall be payable in lawful money of the United States at the office of the Trustee. The principal of each Series 2025 Bond shall be payable at maturity upon presentment of the Series 2025 Bond at the office of the Trustee. Interest on each Series 2025 Bond shall be payable on each Interest Payment Date by check or draft of the Trustee mailed to the person in whose name that Series 2025 Bond is registered on the books of the Bond Registrar at the close of business on the Record Date. During such time as the Series 2025 Bonds are registered so as to participate in a securities depository system with DTC, principal of and interest and redemption premium on each Series 2025 Bond shall be payable by wire transfer pursuant to instructions from DTC. 12 Section 2.8 Appointment of Trustee. U.S. Bank Trust Company, National Association, Chicago, Illinois, is appointed Trustee and Bond Registrar for the Series 2025 Bonds. Section 2.9 Registration of Series 2025 Bonds; Persons Treated as Owners. The Series 2025 Bonds shall be negotiable, subject to the following provisions for registration and registration of transfer. The City shall maintain books for the registration of the Series 2025 Bonds at the office of the Bond Registrar. Each Series 2025 Bond shall be fully registered on those books in the name of its owner, as to both principal and interest. Transfer of each Series 2025 Bond shall be registered only on those books upon surrender of that Series 2025 Bond to the Bond Registrar by the registered owner or his or her attorney duly authorized in writing together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his or her duly authorized attorney. Upon surrender of a Series 2025 Bond for registration of transfer, the City shall execute, the Trustee shall authenticate, and the Bond Registrar shall deliver, in the name of the transferee, one or more new Series 2025 Bonds of the same aggregate principal amount and of the same maturity as the Series 2025 Bond surrendered. Series 2025 Bonds may be exchanged, at the option of the registered owner, for an equal aggregate principal amount of Series 2025 Bonds of the same maturity of any other Authorized Denominations, upon surrender of those Series 2025 Bonds at the office of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his or her duly authorized attorney. In all cases in which the privilege of exchanging or transferring Series 2025 Bonds is exercised, the City shall execute, the Trustee shall authenticate, and the Bond Registrar shall deliver, Series 2025 Bonds in accordance with the provisions of this Indenture. All Series 2025 Bonds surrendered in any exchange or transfer shall be canceled immediately by the Bond Registrar. For every exchange or registration of transfer of Series 2025 Bonds, the City or the Bond Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge, other than one imposed by the City, required to be paid with respect to that exchange or registration of transfer, and payment of that charge by the person requesting exchange or registration of transfer shall be a condition precedent to that exchange or registration of transfer. No other charge may be made by the City or the Bond Registrar as a condition precedent to exchange or registration of transfer of any Series 2025 Bond. The Bond Registrar shall not be required to exchange or register the transfer of any Series 2025 Bond following the close of business on the 15'h day of the month preceding any Interest Payment Date on such Series 2025 Bond, nor to transfer or exchange any Series 2025 Bond after notice calling such Series 2025 Bond for redemption has been mailed, nor during a period of 15 days next preceding mailing of a notice of redemption of any Series 2025 Bonds. The City, the Trustee and the Bond Registrar may treat the registered owner of any Series 2025 Bond as its absolute owner, whether or not that Series 2025 Bond is overdue, for the purpose of receiving payment of the principal of or interest on that Series 2025 Bond and for all other purposes, and neither the City, the Bond Registrar nor the Trustee shall be affected by any notice 13 to the contrary. Payment of the principal of and interest on each Series 2025 Bond shall be made only to its registered owner, and all such payments shall be valid and effective to satisfy the obligation of the City on that Series 2025 Bond to the extent of the amount paid. Section 2.10 Global Form; Securities Depository. It is intended that the Series 2025 Bonds be registered so as to participate in a securities depository system with DTC, as set forth herein. The Series 2025 Bonds shall be initially issued in the form of a single fully registered Series 2025 Bond for each of the maturities as established in Section 2.4 of this Indenture. Upon initial issuance, the ownership of the Series 2025 Bonds shall be registered in the name of Cede & Co., or any successor thereto, as nominee for DTC. The City and the Trustee are authorized to execute and deliver such letters to or agreements with DTC as shall be necessary to effectuate the securities depository system of DTC, including the Letter of Representations. With respect to Series 2025 Bonds registered in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Trustee shall have no responsibility or obligation to any broker -dealer, bank or other financial institution for which DTC holds Series 2025 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 Series 2025 Bonds (each such person being herein referred to as an "Indirect Participant"). Without limiting the immediately preceding sentence, the City, the Bond Registrar and the Trustee shall have no responsibility or obligation with respect to (a) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to the ownership interest in the Series 2025 Bonds, (b) the delivery to any Depository Participant or any Indirect Participant or any other person, other than a registered owner of a Series 2025 Bond, of any notice with respect to the Series 2025 Bonds, including any notice of redemption or (c) the payment to any Depository Participant or Indirect Participant or any other person, other than a registered owner of a Series 2025 Bond, of any amount with respect to principal of, premium, if any, or interest on, the Series 2025 Bonds. While in the securities depository system of DTC, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a Series 2025 Bond certificate with respect to any Series 2025 Bond. Upon delivery by DTC to the Trustee of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions of this Indenture with respect to the payment of interest by the mailing of checks or drafts to the registered owners of Series 2025 Bonds at the close of business on the record date applicable to any interest payment date, the name "Cede & Co." in this Indenture shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Letter of Representations, (b) the Letter of Representations shall be terminated for any reason or (c) the City determines that it is in the best interests of the Beneficial Owners of the Series 2025 Bonds that they be able to obtain certificated Series 2025 Bonds, the City shall notify DTC of the availability through DTC of Series 2025 Bond certificates and the Series 2025 Bonds shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Series 2025 Bonds shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City or such depository's agent or designee, and if the City does not select such alternate securities depository system then the Series 14 2025 Bonds may be registered in whatever name or names registered owners of Bonds transferring or exchanging Series 2025 Bonds shall designate, in accordance with the provisions hereof. Notwithstanding any other provisions of this Indenture to the contrary, so long as any Series 2025 Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on the Series 2025 Bonds and all notices with respect to the Series 2025 Bonds shall be made and given, respectively, in the manner provided in the Letter of Representations. Section 2.11 Additional Bonds. Only the Series 2025 Bonds will be issued under this Indenture. No additional bonds will be issued that are secured by a pledge of the Special Taxes other than bonds or other obligations issued for the purpose of refunding all or a portion of the Series 2025 Bonds. ARTICLE 3 REDEMPTION OF SERIES 2025 BONDS Section 3 .1 Optional Redemption. The Series 2025 Bonds maturing on and after March 1, 20_ are subject to optional redemption prior to maturity at the option of the City, in whole or in part, on any date on or after March 1, 20_, at a redemption price of par plus accrued and unpaid interest to the date of redemption. Any optional redemption of Series 2025 Bonds in part shall be applied, to the extent possible, to reduce pro rata the amount of Series 2025 Bonds maturing pursuant to this Indenture and so as to maintain the proportion of principal maturing in each year to the total original principal amount of Series 2025 Bonds. Section 3.2 Mandatory Redemption upon Condemnation. The Series 2025 Bonds are subject to mandatory redemption on any Interest Payment Date, in part, at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from amounts in the Bond and Interest Fund consisting of the proceeds received by the City in connection with a condemnation of any of the Special Services or any other property dedicated to, or owned by, the City within the Special Service Area and allocable to the Series 2025 Bonds as determined by the Consultant and which proceeds are not used by the City to rebuild the Special Services. Any mandatory redemption of the Series 2025 Bonds pursuant to this Section 3.2 shall be applied, to the extent possible, to reduce pro rata the amount of Series 2025 Bonds maturing pursuant to this Indenture and so as to maintain the proportion of principal maturing in each year to the total original principal amount of Series 2025 Bonds. Section 3.3 Special Mandato Redemption from Optional Prepayment of Special Tax. The Series 2025 Bonds are also subject to mandatory redemption on any March 1, June 1, September 1, or December 1, in part, from optional prepayments of the Special Taxes from amounts available for disbursement from the Special Redemption Account pursuant to Section 6.1(d) and from amounts transferred from the Special Reserve Fund and the Reserve Fund to the III Special Redemption Account pursuant to Section 6.1(d), at a redemption price (expressed as a percentage of the principal amount of the Series 2025 Bonds to be redeemed), as set forth below, together with accrued interest on such Series 2025 Bonds to the date fixed for redemption: Redemption Redemption Dates Prices Any special mandatory redemption of the Series 2025 Bonds pursuant to this Section 3.3 shall be applied, to the extent possible, to reduce pro rata the amount of the Series 2025 Bonds maturing pursuant to this Indenture and so as to maintain the proportion of principal maturing in each year to the total original principal amount of Series 2025 Bonds. Section 3.4 Redemption Provisions; Notice of Redemption. If less than all the Series 2025 Bonds of any maturity are to be redeemed on any redemption date, by mandatory or optional redemption, written notice shall be given in writing to the Trustee at least 45 days prior to the redemption date from the City or the Consultant. Notice shall include the pro-rata breakdown for any such redemption. The Bond Registrar appointed in this Indenture shall assign to each Series 2025 Bond of the maturity to be redeemed a distinctive number for each $5,000 of principal amount of that Series 2025 Bond. The Bond Registrar shall then select by lot from the numbers so assigned, using such method as it shall deem proper in its discretion, as many numbers as, at $5,000 per number, shall equal the principal amount of Series 2025 Bonds of that maturity to be redeemed; provided that following any redemption, no Series 2025 Bond shall be outstanding in an amount less than the minimum Authorized Denomination except to effect a special mandatory redemption from optional prepayments when the total aggregate principal amount of Bonds outstanding is $5,000 or less. Notice of the redemption of any Series 2025 Bonds, which by their terms shall have become subject to redemption, shall be given to the registered owner of each Series 2025 Bond or portion of a Series 2025 Bond called for redemption not less than 30 or more than 60 days before any date established for redemption of Series 2025 Bonds, by the Bond Registrar, on behalf of the City, by first class mail sent to the registered owner's last address, if any, appearing on the registration books kept by the Bond Registrar. All notices of redemption shall include at least the designation, date and maturities of Series 2025 Bonds called for redemption, CUSIP Numbers, if available, and the date of redemption. In the case of a Series 2025 Bond to be redeemed in part only, the notice shall also specify the portion of the principal amount of the Series 2025 Bond to be redeemed. The mailing of the notice specified above to the registered owner of any Series 2025 Bond shall be a condition precedent to the redemption of that Series 2025 Bond, provided that any notice which is mailed in accordance with this Indenture shall be conclusively presumed to have been duly given whether or not the owner received the notice. The failure to mail notice to the owner of any Series 2025 Bond, or any defect in that notice, shall not affect the validity of the redemption of any other Series 2025 Bond for which notice was properly given. With respect to an optional redemption of any Series 2025 Bonds, unless moneys sufficient to pay the principal of, redemption premium, if any, and interest on the Series 2025 Bonds to be redeemed shall have been received by the Trustee prior to the giving of such notice of redemption, such notice may, at the option of the City, state that said redemption shall be conditional upon the receipt of such moneys by the Trustee on or prior to the date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Series 2025 Bonds and the Trustee shall give notice, in the same manner in which the notice of redemption was given, that such moneys were not so received and that such Series 2025 Bonds will not be redeemed. Section 3.5 Purchase in Lieu of Redemption. In lieu of redemption as provided in this Article 3, moneys in the Bond and Interest Fund may be used and withdrawn by the City, subject to the prior written consent of the Bond Insurer, for the purchase of outstanding Series 2025 Bonds, at public or private sale as and when, and at such prices (including brokerage and other charges) as the City may provide, but in no event may Series 2025 Bonds be purchased at a price in excess of the principal amount of such Series 2025 Bonds, plus interest accrued to the date of purchase and any premium which would otherwise be due if such Series 2025 Bonds were to be redeemed in accordance with this Indenture. ARTICLE 4 APPLICATION OF PROCEEDS AND OTHER AMOUNTS Section 4.1 Application of Proceeds. The proceeds of the sale of the Series 2025 Bonds in the amount of $ , which is net of original issue premium of $ , less underwriter's discount in the amount of $ , shall be applied as follows immediately upon receipt of the purchase price: (1) The amount of shall be deposited into the Escrow Account and used, together with funds held by the Prior Bonds Successor Trustee and transferred into the Escrow Account pursuant to Section 4.2, to currently refund all of the Outstanding Prior Bonds at a Redemption Price equal to 100% of the principal amount of Prior Bonds to be redeemed, plus all accrued interest thereon to the Redemption Date. (2) The amount of $ shall be deposited into the Reserve Fund. (3) The amount of $ shall be deposited into the Special Reserve Fund. (4) The amount of $ shall be deposited into the Costs of Issuance Account of the Administrative Expense Fund. (5) The amount of $ shall be paid directly to the Bond Insurer by the Purchaser for the premium owed to the Bond Insurer for the Bond Insurance Policy. (6) The amount of $ shall be paid directly to the Bond Insurer by the Purchaser for the premium owed to the Bond Insurer for the Reserve Policy. 17 All amounts received upon the sale of the Series 2025 Bonds, together with all interest and other investment earnings on those amounts, are appropriated and set aside for the purposes for which the Series 2025 Bonds are being issued as set forth in this Indenture. Section 4.2 Amounts Held for Prior Bonds, The City and the Trustee (in its capacity as Prior Bonds Successor Trustee) shall transfer and deposit into the Escrow Account (a) the amount of $ held by the Prior Bonds Successor Trustee in the Prior Bonds Bond and Interest Fund, and (b) the amount of $ held by the Prior Bonds Successor Trustee in the Special Reserve Fund, to be applied (together with $ of proceeds of the Series 2025 Bonds) to pay the redemption price of the Prior Bonds to be redeemed on the Redemption Date pursuant to the Escrow Agreement. Any additional Special Taxes collected from the levy for the Prior Bonds shall be deposited into the Bond and Interest Fund for the Series 2025 Bonds and applied in accordance with Section 6.1 hereof. ARTICLE 5 SECURITY FOR THE SERIES 2025 BONDS Section 5.1 Limited Obligations. The Series 2025 Bonds shall constitute limited obligations of the City, payable from the Special Taxes and other moneys deposited in the Funds and Accounts established pursuant to Article 6 other than the Administrative Expense Fund, the Special Reserve Fund and the Rebate Fund. The Series 2025 Bonds shall not constitute general obligations of the City and neither the full faith and credit nor the unlimited taxing power of the City shall be pledged as security for payment of the Series 2025 Bonds. Section 5.2 Levy of Special Tax. Pursuant to the Bond Ordinance there has been levied a Special Tax upon all taxable real property within the Special Service Area subject to the Special Taxes sufficient to pay and discharge the principal of the Series 2025 Bonds at maturity and to pay interest on the Series 2025 Bonds for each year at the interest rates set forth in Section 2.4 of this Indenture and to pay estimated Administrative Expenses of the City for each year, to replenish the Reserve Fund to an amount equal to the Reserve Requirement (or to restore the amount available under any Reserve Fund Surety Policy, together with cash on deposit in the Reserve Fund, to the Reserve Requirement), and to fund and replenish the Special Reserve Fund to an amount equal to the Special Reserve Fund Requirement. (a) The City Clerk has been directed to file a certified copy of the Bond Ordinance with the County Clerk of Kendall County. The Special Taxes shall be computed, extended and collected in accordance with the Special Tax Roll and Report and the Special Tax Roll, and divided among the taxable real property within the Special Service Area in accordance with the terms of the Establishing Ordinance and the Special Tax Roll and Report. It shall be the duty of the City and the City hereby covenants, annually on or before the last Tuesday of December for each of the years 2025 through 2032 to calculate or cause the Consultant to calculate the Special Tax Requirement; to amend the Special Tax Roll pursuant to Section VIE of the Special Tax Roll and Report and provide the County tax collector with the amended Special Tax Roll; and to adopt an ordinance approving the amount of the current calendar year's Special Tax Requirement and abating the Special Taxes levied pursuant to the Bond Ordinance to the extent the taxes levied pursuant to the Bond Ordinance exceed the Special Tax Requirement as calculated by the City 18 pursuant to the Establishing Ordinance and the Special Tax Roll and Report. On or before the last Tuesday of January for each of the years 2026 through 2033 the City shall notify the Trustee of the amount of the Special Tax Requirement and the amount of the Special Taxes to be abated. The City shall take all actions which shall be necessary to provide for the levy, extension, collection and application of the taxes levied by the Bond Ordinance, including enforcement of such taxes by providing the County with such information as is deemed necessary to enable the County to include any property subject to a delinquent Special Tax in the County Collector's annual tax sale and as further provided in Section 7.2(c) hereof; and in the event the tax lien is forfeited at such tax sale upon request of any Bond Insurer or a majority of the Bondholders by instituting proceedings, including assigning to the Trustee its right to purchase as a taxing district the unpaid taxes due upon the property all in the manner provided by law; provided, however, that the obligation to purchase unpaid taxes, or institute any proceeding shall only arise in the event the City makes the determination that sufficient funds are on deposit in the Administrative Expense Fund to (i) pay all remaining Administrative Expenses expected for such levy year, and (ii) apply to the purchase of the unpaid taxes and/or pay the costs of any proceeding. (b) Upon receipt by the Trustee of any prepayment of Special Tax in an amount calculated by the Consultant as being required pursuant to the Special Tax Roll and Report to satisfy the lien on a Parcel within the Special Service Area, the City and the Trustee shall execute a Satisfaction of Tax Lien substantially in the form of Exhibit C hereto, appropriately completed and the Trustee shall deliver the Satisfaction of Tax Lien to the City for filing with the Recorder of Deeds of Kendall County, Illinois. The City shall deliver a copy of each such Satisfaction of Tax Lien to the property owner of record and a copy of the recorded Satisfaction of Tax Lien to the Trustee. Section 5.3 Bond Insurance Policy Covenants in Favor of Bond Insurer. (a) Payment Procedure Under the Bond Insurance Policy. (1) In the event that principal and/or interest due on the Series 2025 Bonds shall be paid by the Bond Insurer pursuant to the Bond Insurance Policy, the Series 2025 Bonds shall remain outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the City, the assignment and pledge of the trust estate and all covenants, agreements and other obligations of the City to the registered owners shall continue to exist and shall run to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the rights of such registered owners. (2) In the event that, on the second (2 d) Business Day prior to any payment date on the Series 2025 Bonds, the Trustee has not received sufficient moneys to pay all principal of and interest on the Series 2025 Bonds due on such payment date, the Trustee shall immediately notify the Bond Insurer or its designee on the same Business Day by telephone or electronic mail, of the amount of the deficiency. If any deficiency is made up in whole or in part prior to or on the payment date, the Trustee shall so notify the Bond Insurer or its designee. (3) In addition, if the Trustee has notice that any holder of the Series 2025 Bonds has been required to disgorge payments of principal or interest on the Series 2025 Bonds pursuant to r a final, non -appealable order by a court of competent jurisdiction that such payment constitutes a voidable preference to such Bondholder within the meaning of any applicable bankruptcy law, then the Trustee shall notify the Bond Insurer or its designee of such fact by telephone or electronic mail, or by overnight or other delivery service as to which a delivery receipt is signed by a person authorized to accept delivery on behalf of the Bond Insurer. (4) The Trustee is hereby irrevocably designated, appointed, directed and authorized to act as attorney -in -fact for the holders of the Series 2025 Bonds as follows: (i) If there is a deficiency in amounts required to pay interest and/or principal on the Series 2025 Bonds, the Trustee shall (A) execute and deliver to the Bond Insurer, in form satisfactory to the Bond Insurer, an instrument appointing the Bond Insurer as agent and attorney -in -fact for such holders of the Series 2025 Bonds in any legal proceeding related to the payment and assignment to the Bond Insurer of the claims for interest on the Series 2025 Bonds, (B) receive as designee of the respective holders (and not as Paying Agent) in accordance with the tenor of the Bond Insurance Policy payment from the Bond Insurer with respect to the claims for interest so assigned, (C) segregate all such payments in a separate account (the "Bond Insurer Policy Payment Account") to only be used to make scheduled payments of principal of and interest on the Series 2025 Bond, and (D) disburse the same to such respective holders. (ii) If there is a deficiency in amounts required to pay principal of the Series 2025 Bonds, the Trustee shall (A) execute and deliver to the Bond Insurer, in form satisfactory to the Bond Insurer, an instrument appointing the Bond Insurer as agent and attorney -in - fact for such holder of the Series 2025 Bonds in any legal proceeding related to the payment of such principal and an assignment to the Bond Insurer of the Series 2025 Bonds surrendered to the Bond Insurer, (B) receive as designee of the respective holders (and not as Paying Agent) in accordance with the tenor of the Bond Insurance Policy payment therefore from the Bond Insurer, (C) segregate all such payments in the Bond Insurer Policy Payment Account to only be used to make scheduled payments of principal of and interest on the Series 2025 Bond, and (D) disburse the same to such holders. The Trustee shall designate any portion of payment of principal on Series 2025 Bonds paid by the Bond Insurer, whether by virtue of mandatory redemption, maturity or other advancement of maturity, on its books as a reduction in the principal amount of Series 2025 Bonds registered to the then current holder, whether DTC or its nominee or otherwise, and shall issue a replacement Series 2025 Bond to the Bond Insurer, registered in the name directed by the Bond Insurer, in a principal amount equal to the amount of principal so paid (without regard to authorized denominations); provided that the Trustee's failure to so designate any payment or issue any replacement Series 2025 Bond shall have no effect on the amount of principal or interest payable by the City on any Series 2025 Bond or the subrogation or assignment rights of the Bond Insurer. (5) Payments with respect to claims for interest on and principal of Series 2025 Bonds disbursed by the Trustee from proceeds of the Bond Insurance Policy shall not be considered to discharge the obligation of the City with respect to such Series 2025 Bonds and the Bond Insurer shall become the owner of such unpaid Series 2025 Bonds and claims for the interest in accordance 20 with the tenor of the assignment made to it under the provisions of the preceding paragraphs or otherwise. The Security Documents shall not be discharged or terminated unless all amounts due or to become due to the Bond Insurer have been paid in full or duly provided for. Irrespective of whether any such assignment is executed and delivered, the City and the Trustee agree for the bencfit of the Bond Insurer that: (1) They recognize that to the extent the Bond Insurer makes payments directly or indirectly (e.g., by paying through the Paying Agent or Trustee), on account of principal of or interest on the Series 2025 Bonds, the Bond Insurer will be subrogated to the rights of such holders to receive the amount of such principal and interest from the City, with interest thereon, as provided and solely from the sources stated in the Security Documents and the Series 2025 Bonds; and (2) They will accordingly pay to the Bond Insurer the amount of such principal and interest, with interest thereon as provided in the Security Documents and the Series 2025 Bonds, but only from the sources and in the manner provided therein for the payment of principal of and interest on the Series 2025 Bonds to holders, and will otherwise treat the Bond Insurer as the owner of such rights to the amount of such principal and interest (b) Additional Payments. The City hereby agrees unconditionally that it will pay or reimburse the Bond Insurer on demand, to the extent permitted by law and solely from the Special Tax and amounts available under this Indenture, any and all reasonable charges, fees, costs, losses, liabilities and expenses which the Bond Insurer may pay or incur, including, but not limited to, fees and expenses of the Bond Insurer's agents, attorneys, accountants, consultants, appraisers and auditors and reasonable costs of investigations, in connection with the administration (including waivers and conserrts, if any), enforcement, defense, exercise or preservation of any rights and remedies in respect of the Security Documents ( "Administrative Costs"). For purposes of the foregoing, costs and expenses shall include a reasonable allocation of compensation and overhead attributable to the time of employees of the Bond Insurer spent in connection with the actions described in the preceding sentence. The City agrees that failure to pay any Administrative Costs from the Special Tax on a timely basis will result in the accrual of interest on the unpaid amount at the Late Payment Rate, compounded semi-annually, from the date that payment is first due to the Bond Insurer until the date the Bond Insurer is paid in full. Notwithstanding anything herein to the contrary, the City agrees to pay to the Bond Insurer, solely from the Special Tax and Trust Estate, (i) a sum equal to the total of all amounts paid by the Bond Insurer under the Bond Insurance Policy (the "Bond Insurer Policy Payment"); and (ii) interest on the Bond Insurer Policy Payments from the date paid by the Bond Insurer until payment thereof in full by the City, payable to the Bond Insurer at the Late Payment Rate per annum (collectively, the "Bond Insurer Reimbursement Amounts ") compounded semi-annually. Notwithstanding anything to the contrary, including without limitation the post -default application of revenue provisions, the Bond Insurer Reimbursement Amounts shall be, and the City hereby covenants and agrees that the Bond Insurer Reimbursement Amounts are, payable from and secured by a lien on and pledge of the same revenues and other collateral pledged to the Series 2025 Bonds on a parity with debt service due on the Series 2025 Bonds. 21 (c) Notice and Other Information. The City will provide the Bond Insurer with all notices and other information it is obligated to provide (i) under its Continuing Disclosure Agreement and (ii) to the holders of the Series 2025 Bonds or the Trustee under the Security Documents. The notice address of the Bond Insurer is: . In each case in which notice or other communication refers to an event of default or a claim on the Bond Insurance Policy, then a copy of such notice or other communication shall also be sent to the attention of the General Counsel at the same address and at claims@buildamerica.com or at Telecopier: and shall be marked to indicate "URGENT MATERIAL ENCLOSED." (d) Defeasance. The investments in the defeasance escrow relating to the Series 2025 Bonds shall be limited to non -callable, direct obligations of the United States of America and securities fully and unconditionally guaranteed as to the timely payment of principal and interest by the United States of America, or as otherwise maybe authorized under State law and approved by the Bond Insurer. At least three (3) Business Days prior to any defeasance with respect to the Series 2025 Bonds other than a cash defeasance of 30 days or less, the City shall deliver to the Bond Insurer draft copies of an escrow agreement, an opinion of bond counsel regarding the validity and enforceability of the escrow agreement and the defeasance of the Series 2025 Bonds, a verification report (a "Verification Report") prepared by a nationally recognized independent financial analyst or firm of certified public accountants regarding the sufficiency of the escrow fund. Such opinion and Verification Report shall be addressed to the Bond Insurer and shall be in form and substance satisfactory to the Bond Insurer. In addition, any escrow agreement shall provide that: (1) Any substitution of securities following the execution and delivery of the escrow agreement shall require the delivery of a Verification Report, an opinion of bond counsel that such substitution will not adversely affect the exclusion (if interest on the Series 2025 Bonds is excludable) from gross income of the holders of the Series 2025 Bonds of the interest on the Series 2025 Bonds for federal income tax purposes and the prior written consent of the Bond Insurer, which consent will not be unreasonably withheld. (2) The City will not exercise any prior optional redemption of the Series 2025 Bonds secured by the escrow agreement or any other redemption unless (i) the right to make any such redemption has been expressly reserved in the escrow agreement and such reservation has been disclosed in detail in the official statement, if any, for the refunding bonds, and (ii) as a condition to any such redemption there shall be provided to the Bond Insurer a Verification Report as to the sufficiency of escrow receipts without reinvestment to meet the escrow requirements remaining following any such redemption. (3) The City shall not amend the escrow agreement or enter into a forward purchase agreement or other agreement with respect to rights in the escrow without the prior written consent of the Bond Insurer. 22 (e) Trustee and Paying Agent. (1) The Bond Insurer shall receive prior written notice of any name change of the Trustee, or, if applicable, any Paying Agent for the Series 2025 Bonds or the resignation or removal of the Trustee or, if applicable, the Paying Agent. Any Trustee must be (A) a national banking association that is supervised by the Office of the Comptroller of the Currency and has at least $250 million of assets, (B) a state -chartered commercial bank that is a member of the Federal Reserve System and has at least $1 billion of assets, or (C) otherwise approved by the Bond Insurer in writing. (2) No removal, resignation or termination of the Trustee or, if applicable, the Paying Agent shall take effect until a successor, meeting the requirements above, or acceptable to the Bond Insurer, shall be qualified and appointed. (f) Amendments, Supplements and Consents. The Bond Insurer's prior written consent is required for all amendments and supplements to the Security Documents, with the exceptions noted below. The City shall send copies of any such amendments or supplements to the Bond Insurer and the rating agencies which have assigned a rating to the Series 2025 Bonds. (g) Consent of the Bond Insurer. Any amendments or supplements to the Security Documents shall require the prior written consent of the Bond Insurer with the exception of amendments or supplements: (i) To cure any ambiguity or formal defect or omissions or to correct any inconsistent provisions in the transaction documents or in any supplement thereto, or (ii) To grant or confer upon the holders of the Series 2025 Bonds any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the holders of the Series 2025 Bonds, or (iii) To add to the conditions, limitations and restrictions on the issuance of bonds or other obligations under the provisions of the Security Documents other conditions, limitations and restrictions thereafter to be observed, or (iv) To add to the covenants and agreements of the City in the Security Documents other covenants and agreements thereafter to be observed by the City or to surrender any right or power therein reserved to or conferred upon the City, or (v) To issue additional parity debt in accordance with the requirements set forth in the Security Documents (unless otherwise specified herein). (2) Consent of the Bond Insurer in Addition to Bondholder Consent. Whenever any Security Document requires the consent of holders of the Series 2025 Bonds, the Bond Insurer's consent shall also be required. In addition, any amendment, supplement, modification to, or waiver of, any of the Security Documents that adversely affects the rights or interests of the Bond Insurer shall be subject to the prior written consent of the Bond Insurer. 23 (3) Insolvency. Any reorganization or liquidation plan with respect to the City must be acceptable to the Bond Insurer. The Trustee and each owner of the Series 2025 Bonds hereby appoint the Bond Insurer as their agent and attorney -in -fact with respect to the Series 2025 Bonds and agree that the Bond Insurer may at any time during the continuation of any proceeding by or against the City under the United States Bankruptcy Code or any other applicable bankruptcy, insolvency, receivership, rehabilitation or similar law (an "Insolvency Proceeding") direct all matters relating to such Insolvency Proceeding, including without limitation, (A) all matters relating to any claim or enforcement proceeding in connection with an Insolvency Proceeding (a "Claim "), (B) the direction of any appeal of any order relating to any Claim, (C) the posting of any surety, supersedeas or performance bond pending any such appeal, and (D) the right to vote to accept or reject any plan of adjustment. In addition, the Trustee and each owner of the Series 2025 Bonds delegate and assign to the Bond Insurer, to the fullest extent permitted by law, the rights of the Trustee and each owner of the Series 2025 Bonds with respect to the Series 2025 Bonds in the conduct of any Insolvency Proceeding, including, without limitation, all rights of any party to an adversary proceeding or action with respect to any court order issued in connection with any such Insolvency Proceeding. (4) Control by the Bond Insurer Upon Default. Anything in the Security Documents to the contrary notwithstanding, upon the occurrence and continuance of a default or an Event of Default under this Indenture, the Bond Insurer shall be entitled to control and direct the enforcement of all rights and remedies granted to the holders of the Series 2025 Bonds or the Trustee or Paying Agent for the benefit of the holders of the Series 2025 Bonds under any Security Document. No default or Event of Default may be waived without the Bond Insurer's written consent. (5) The Bond Insurer as Owner. Upon the occurrence and continuance of a default or an Event of Default, the Bond Insurer shall be deemed to be the sole owner of the Series 2025 Bonds for all purposes under the Security Documents, including, without limitations, for purposes of exercising remedies and approving amendments. (6) Consent of the Bond Insurer for acceleration. The Bond Insurer's prior written consent is required as a condition precedent to and in all instances of acceleration. (7) Grace Period for Payment Defaults. No grace period shall be permitted for payment defaults on the Series 2025 Bonds. No grace period for a covenant default shall exceed 30 days without the prior written consent of the Bond Insurer. (8) Special Provisions for Insurer Default. If an Insurer Default shall occur and be continuing, then, notwithstanding anything in paragraphs (f)(I)-(5) above to the contrary, (1) if at any time prior to or following an Insurer Default, the Bond Insurer has made payment under the Bond Insurance Policy, to the extent of such payment the Bond Insurer shall be treated like any other holder of the Series 2025 Bonds for all purposes, including giving of consents, and (2) if the Bond Insurer has not made any payment under the Bond Insurance Policy, the Bond Insurer shall have no further consent rights until the particular Insurer Default is no longer continuing or the 24 Bond Insurer makes a payment under the Bond Insurance Policy, in which event, the foregoing clause (1) shall control. (g) The Bond Insurer As Third Party Beneficiary. The Bond Insurer is recognized as and shall be deemed to be a third party beneficiary of the Security Documents and may enforce the provisions of the Security Documents as if it were a party thereto. (h) The Reserve Fund. The prior written consent of the Bond Insurer shall be a condition precedent to the deposit of any credit instrument provided in lieu of a cash deposit into the Reserve Fund, if any. Amounts on deposit in the Reserve Fund shall be applied solely to the payment of debt service due on the Series 2025 Bonds. (i) Exercise of Rights by the Bond Insurer The rights granted to the Bond Insurer under the Security Documents to request, consent to or direct any action are rights granted to the Bond Insurer in consideration of its issuance of the Bond Insurance Policy. Any exercise by the Bond Insurer of such rights is merely an exercise of the Bond Insurer's contractual rights and shall not be construed or deemed to be taken for the benefit, or on behalf, of the holders of the Series 2025 Bonds and such action does not evidence any position of the Bond Insurer, affirmative or negative, as to whether the consent of the holders of the Series 2025 Bonds or any other person is required in addition to the consent of the Bond Insurer. The Bond Insurer shall be entitled to pay principal or interest on the Series 2025 Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the issuer (as such terms are defined in the Bond Insurance Policy), whether or not the Bond Insurer has received a claim upon the Bond Insurance Policy. No contract shall be entered into or any action taken by which the rights of the Bond Insurer or security for or source of payment of the Series 2025 Bonds may be impaired or prejudiced in any material respect except upon obtaining the prior written consent of the Bond Insurer. If an event of default occurs under any agreement pursuant to which any Obligation of the City has been incurred or issued and that permits the holder of such Obligation or trustee to accelerate the Obligation or otherwise exercise rights or remedies that are adverse to the interest of the holders of the Series 2025 Bonds or the Bond Insurer, as the Bond Insurer may determine in its sole discretion, then an event of default shall be deemed to have occurred under this Indenture and the related Security Documents for which the Bond Insurer or the Trustee, at the direction of the Bond Insurer, shall be entitled to exercise all available remedies under the Security Documents, at law and in equity. For purposes of the foregoing, "Obligation" shall mean any bonds, loans, certificates, installment or lease payments or similar obligations that are payable and/or secured on a parity or subordinate basis to the Series 2025 Bonds. Section 5.4 Provisions Relating to Reserve Policy. The City hereby represents, warrants and covenants, and the Trustee hereby covenants, as follows, and agrees that the provisions of this Section 5.4 shall govern, notwithstanding anything to the contrary set forth in the Security Documents: 25 (a) The City shall repay the Bond Insurer any draws under the Reserve Policy and pay all related reasonable charges, fees, costs, losses, liabilities and expenses ( "Reserve Policy Administrative Expenses") that the Bond Insurer may pay or incur. Interest shall accrue and be payable on such draws and Reserve Policy Administrative Expenses from the date of payment by the Bond Insurer at the Late Payment Rate. Repayment of draws and payment of Reserve Policy Administrative Expenses and interest accrued thereon at the Late Payment Rate (collectively, "Reserve Policy Costs ") shall commence in the first month following each draw, and each such monthly payment shall be in an amount at least equal to 1/12th of the aggregate of Reserve Policy Costs related to such draw. Amounts in respect of Reserve Policy Costs paid to the Bond Insurer shall be credited first to interest due, then to the expenses due and then to principal due. As and to the extent that payments are made to the Bond Insurer on account of principal due, the coverage under the Reserve Policy will be reinstated by a like amount, subject to the terms of the Reserve Policy. All cash and investments in the Reserve Fund shall be transferred to the debt service fund for payment of the debt service on the Series 2025 Bonds before any drawing may be made on the Reserve Policy or any other Reserve Fund Surety Policy or alternative credit instrument on deposit in the Reserve Fund in lieu of cash (the "Alternative Credit Instrument"). Payment of any Reserve Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all Alternative Credit Instruments (including the Reserve Policy) on which there is available coverage shall be made on a pro-rata basis (calculated by reference to the available coverage under each such Alternative Credit Instrument) after applying all available cash and investments in the Reserve Fund. Payment of Reserve Policy Costs and reimbursement of amounts with respect to other Alternative Credit Instruments shall be made on a pro-rata basis prior to replenishment of any cash drawn from the Reserve Fund. For the avoidance of doubt, "available coverage" means the coverage then available for disbursement pursuant to the terms of the applicable alternative credit instrument without regard to the legal or financial ability or willingness of the provider of such instrument to honor a claim or draw thereon or the failure of such provider to honor any such claim or draw. (b) Draws on the Reserve Policy may only be used to make payments on the Series 2025 Bonds (and for the avoidance of doubt, not any other obligations of the City, whether issued on parity with the Series 2025 Bonds, or otherwise). (c) If the City shall fail to pay any Reserve Policy Costs in accordance with the requirements of subparagraph (a) hereof, the Bond Insurer shall be entitled to exercise any and all legal and equitable remedies available to it, including those provided under the Security Documents other than (i) acceleration of the maturity of the Series 2025 Bonds, or (ii) remedies which would adversely affect owners of the Series 2025 Bonds. (d) The Security Documents shall not be discharged until all Reserve Policy Costs owing to the Bond Insurer shall have been paid in full. The City's obligation to pay such amounts shall expressly survive payment in full of the Series 2025 Bonds. (e) In order to secure the City's payment obligations with respect to the Reserve Policy Costs, there is hereby granted and perfected in favor of the Bond Insurer a security interest (subordinate only to that of the owners of the Series 2025 Bonds) in all revenues and collateral pledged under this Indenture as security for the Series 2025 Bonds. (f) The Trustee shall ascertain the necessity for a claim- in accordance with the provisions of subparagraph (a) hereof and to provide notice to the Bond Insurer in accordance with the terms of the Reserve Policy at least five (5) Business Days prior to each date upon which interest or principal is due on the Series 2025 Bonds. Where deposits are required to be made by the City with the Trustee to the Reserve Fund more often than semiannually, the Trustee shall give notice to the Bond Insurer of any failure of the City to make timely payment in full of such deposits within two (2) Business Days of the date due. (g) The Reserve Policy shall expire on the earlier of the date the Series 2025 Bonds are no longer outstanding and the final maturity date of the Series 2025 Bonds. (h) Any and all amounts due from the City to the Bond Insurer with respect to the Reserve Policy shall be payable solely from the Special Taxes. Notwithstanding anything in this Indenture to the contrary, the Bond Insurer shall not have any right to compel the exercise of any taxing power of the City (other than the levy of the Special Taxes) for payment of any amounts due from the City to the Bond Insurer with respect to the Reserve Policy. ARTICLE 6 FUNDS AND ACCOUNTS Section 6.1 Bond and Interest Fund. (a) There is hereby created and established with the Trustee a separate and special fund of the City established exclusively for paying principal of, interest on and redemption premium on the Series 2025 Bonds and which shall be designated as the "Special Service Area Number 2004- 104 Special Tax Refunding Bonds Bond and Interest Fund" (the "Bond and Interest Fund"). Upon receipt by the Trustee, the Special Taxes and the Foreclosure Proceeds, including any interest and penalties collected in connection with such Special Tax or Foreclosure Proceeds shall be placed in the Bond and Interest Fund. The City may provide for the County to transmit directly to the Trustee for deposit to the Bond and Interest Fund any Special Tax collected by the County. In addition, proceeds received by the City in connection with a condemnation of any of the Special Services or any other property owned by or dedicated to the City within the Special Service Area and allocable to the Series 2025 Bonds as determined by the Consultant which are not used to rebuild the Special Services shall be deposited in the Bond and Interest Fund. Moneys deposited in the Bond and Interest Fund and investments of the Bond and Interest Fund shall never be commingled with or loaned to any other funds of the City. All interest and other investment earnings on the Bond and Interest Fund shall become, when received, a part of the Bond and Interest Fund. When the amount of condemnation proceeds deposited to the Bond and Interest Fund equals $1,000 or more, such amount shall be used to redeem Series 2025 Bonds pursuant to Section 3.2 of this Indenture on the next Interest Payment Date. Any amounts representing condemnation proceeds 27 which remain on deposit in the Bond and Interest Fund for a continuous period of thirty (30) months and which will not be used to redeem the Series 2025 Bonds on the next Interest Payment Date in accordance with Section 3.2 and this section shall be used to pay debt service on the Series 2025 Bonds on the next Interest Payment Date. (b) Amounts deposited in the Bond and Interest Fund are appropriated for and irrevocably pledged to, and shall be used solely for the purpose of, paying the principal of and interest and redemption premium on the Series 2025 Bonds, or for transfers to the Reserve Fund, the Special Reserve Fund or the Administrative Expense Fund as permitted by paragraph (c) of this Section 6.1 and by Section 6.2. (c) At any time after September 1 but in no event later than December 1 of each year, the Trustee shall determine the amount needed to pay principal of and interest and redemption premium on the Series 2025 Bonds on March 1 of the next succeeding year. After the Trustee has determined that sufficient amounts are on deposit in the Bond and Interest Fund to pay principal of, interest on and redemption premium due on the Series 2025 Bonds on the next March 1, the Trustee shall notify the City and the Consultant of any excess amounts on deposit in the Bond and Interest Fund, and, at the written direction of the City, shall transfer an amount from the Bond and Interest Fund to the Administrative Expense Fund which the City after consultation with the Consultant has determined will be adequate, together with other amounts in the Administrative Expense Fund or reasonably expected to be transferred to or deposited in such Fund, to pay all Administrative Expenses during the succeeding calendar year. After making such transfer to the Administrative Expense Fund any excess amounts on deposit in the Bond and Interest Fund shall be transferred to the Reserve Fund to the extent necessary to replenish the Reserve Fund to the Reserve Requirement (or to restore the amount available under any Reserve Fund Surety Policy, together with cash on deposit in the Reserve Fund, to the Reserve Requirement). After (i) making such transfer to the Administrative Expense Fund, and (ii) the Reserve Fund has amounts on deposit equal to the Reserve Requirement, any excess amounts on deposit in the Bond and Interest Fund shall be transferred to the Special Reserve Fund to the extent necessary to fund the Special Reserve Fund to the Special Reserve Fund Requirement. The total amount transferred from time to time to the Special Reserve Fund shall not exceed $ , giving consideration to amounts that may have previously been transferred from the Special Reserve Fund. Thereafter any remaining excess shall be retained in the Bond and Interest Fund and applied to pay principal and interest coming due on the next succeeding Interest Payment Date. (d) There is hereby created within the Bond and Interest Fund established with the Trustee a separate account designated the "Special Redemption Account. " Amounts deposited in the Special Redemption Account shall be applied to the redemption of the Series 2025 Bonds pursuant to Section 3.2(b) or Section 3.3 of this Indenture. All prepayments of Special Tax made in accordance with the Special Tax Roll and Report shall be deposited in the Special Redemption Account. Moneys in the Special Redemption Account shall be used exclusively to redeem Series 2025 Bonds pursuant to Section 3.2(b) or Section 3.3 or to pay debt service on the Series 2025 Bonds pursuant to this Section 6.1. In the event of any optional prepayment of Special Tax pursuant to Section 3.3, prior to giving notice of the redemption of Series 2025 Bonds in accordance with Section 3A of this Indenture, the Trustee shall transfer from the Reserve Fund to the Special Redemption. Account an amount equal to the Reserve Fund Credit and from the Special Reserve 28 Fund (to the extent funds are available) to the Special Redemption Account an amount equal to the Special Reserve Fund Credit, if any, upon the direction of the Consultant in accordance with the Special Tax Roll and Report. When the amount on deposit in the Special Redemption Account from amounts deposited pursuant to Section 3.2 equals or exceeds $1,000, such amount shall be used to redeem the Series 2025 Bonds on the next Interest Payment Date in accordance with Section 3.2. On each such Interest Payment Date, the Trustee shall withdraw from the Special Redemption Account and pay to the owners of the Series 2025 Bonds the amounts to redeem the Series 2025 Bonds pursuant to Section 3.2(b). When the amount on deposit in the Special Redemption Account from amounts deposited pursuant to Section 3.4 equals or exceeds $1,000, such amount shall be used to redeem the Series 2025 Bonds on the next March 1, June 1, September 1 or December 1 in accordance with Section 3.3. On each such redemption date, the Trustee shall withdraw from the Special Redemption Account and pay to the owners of the Series 2025 Bonds the amounts to redeem the Series 2025 Bonds pursuant to Section 3.3. Notwithstanding the foregoing, any amounts contained in the Special Redemption Account for a continuous period of thirty (30) months and which will not be used to redeem the Series 2025 Bonds in accordance with the two immediately preceding sentences shall be used to pay debt service on the Series 2025 Bonds on the next Interest Payment Date. Any amounts contained in the Special Redemption Account on the final maturity date of the Series 2025 Bonds shall be used to pay outstanding debt service on the Series 2025 Bonds. Section 6.2 Reserve Fund. There is hereby created and established with the Trustee a separate and special fund of the City which shall be designated as the "Special Service Area Number 2004-104 Special Tax Refunding Bonds, Reserve Fund" (the "Reserve Fund"), which must be maintained in an amount equal to the Reserve Requirement. The Reserve Requirement shall be an amount equal to $ as reduced by Reserve Fund Credits in connection with prepayments pursuant to Section 6.1(d). The Reserve Requirement shall be satisfied by the deposit into the Reserve Fund of (i) cash in the amount of $ from the proceeds of the Series 2025 Bonds, and (ii) the Reserve Policy in the amount of $ . For as long as the Series 2025 Bonds remain outstanding, fifty percent (50%) of the Reserve Requirement shall be satisfied by cash, unless the Bond Insurer otherwise consents in writing. Subject to the foregoing, the City may at any time and from time to time substitute cash, a Reserve Fund Surety Policy or any combination thereof for either of the foregoing then on deposit in the Reserve Fund, and, thereupon, the Trustee shall release all or a portion of such cash or Reserve Fund Surety Policy and shall cause such excess cash, if any, to be deposited into the Bond and Interest Account and used for the payment of interest on the Series 2025 Bonds on the next following Interest Payment Date, so long as the combination of the foregoing remaining in the Reserve Fund following such release shall equal the Reserve Requirement. Amounts deposited in the Reserve Fund shall be used solely for the purpose of (i) making transfers to the Bond and Interest Fund to pay the principal of and interest and any premium on, all Series 2025 Bonds when due, in the event that moneys in the Bond and Interest Fund are insufficient therefor without further direction from the City, (ii) making any transfers to the Bond and Interest Fund if the balance in the Reserve Fund and the Special Reserve Fund exceeds the amount required to redeem all Series 2025 Bonds then outstanding, (iii) making transfers to the Special Redemption Account in an amount equal to any Reserve Fund Credit in the event of an optional prepayment of the Special Tax as provided in Section 6.1(d) of this Indenture, or (iv) if 29 the amount then on deposit in the Reserve Fund is at least equal to the Reserve Requirement, for transfer in accordance with the next paragraph. Notwithstanding anything herein to the contrary, draws on Reserve Fund Surety Policy shall be used solely to make payments of principal of and interest on the Series 2025 Bonds (and for the avoidance of doubt, not any other obligations of the City, whether issued on parity with the Series 2025 Bonds, or otherwise). On the Business Day prior to each September 1 Interest Payment Date, (a) moneys in the Reserve Fund in excess of the Reserve Requirement shall be transferred by the Trustee from the Reserve Fund to the Bond and Interest Fund to be used for the payment of interest on the Series 2025 Bonds on such September l Interest Payment Date, and (b) moneys in the Reserve Fund in excess of (i) the Reserve Requirement and (ii) the interest due on the Series 2025 Bonds on such September I Interest Payment Date, shall be used for the payment of principal on the Series 2025 Bonds on the next following March 1 Interest Payment Date. On the Business Day prior to each March I Interest Payment Date, (a) moneys in the Reserve Fund in excess of the Reserve Requirement shall be transferred by the Trustee from the Reserve Fund to the Bond and Interest Fund to be used for the payment of principal of and interest and redemption premium (if any) on the Series 2025 Bonds on such March l Interest Payment Date, and (b) moneys in the Reserve Fund in excess of (i) the Reserve Requirement and (ii) the principal of and interest and redemption premium (if any) due on the Series 2025 Bonds on such March l Interest Payment Date, shall be used for the payment of interest on the Series 2025 Bonds on the next following September 1 Interest Payment Date. Any amounts contained in the Reserve Fund on the final maturity date of the Series 2025 Bonds shall be transferred to the Bond and Interest Fund, and used to pay outstanding debt service on the Series 2025 Bonds. Withdrawals from the Reserve Fund shall be made from the following sources in the following order of priority: (1) cash, and (2) from drawings under a Reserve Fund Surety Policy in the order of priority provided for in such instruments. Any replenishment of the Reserve Fund hereunder shall be applied first to the reimbursement of drawings under a Reserve Fund Surety Policy and then to the restoration of cash. In the event that the City chooses to deposit a Reserve Fund Surety Policy into the Reserve Fund, it may make reasonable covenants and agreements with the issuer of the policy, surety or other facility including, but not limited to, covenants and agreements related to the following: (a) The application and priority of amounts deposited to the credit of the Reserve Fund after a draw under the Reserve Fund Surety Policy to reimburse the issuer of the Reserve Fund Surety Policy or to reimburse or replenish cash in the Reserve Fund; (b) Not less than fifteen (15) days advance notice of the need for a draw by the Trustee under the Reserve Fund Surety Policy and to maintain records; and (c) The status of the issuer of the Reserve Fund Surety Policy as a third party beneficiary under this Indenture and its ability to enforce the provisions of this Indenture to the extent such rights may in fact benefit such issuer of the policy or facility. 30 Section 6.3 Special Reserve Fund. There is hereby created and established with the Trustee a separate and special fund of the City which shall be designated as the "Special Service Area Number 2004-104 Special Tax Refunding Bonds, Special Reserve Fund" (the "Special Reserve Fund"). The Special Reserve Fund shall be initially funded by the deposit of the amount of $ from the proceeds of the Series 2025 Bonds. Thereafter, Special Taxes shall be deposited in the Special Reserve Fund in accordance with Section 6.1 until the amounts on deposit in the Special Reserve Fund equal the Special Reserve Fund Requirement. The total amount transferred from time to time to the Special Reserve Fund shall not exceed $ , giving consideration to amounts that may have previously been transferred from the Special Reserve Fund. Amounts deposited in the Special Reserve Fund shall be used solely for the purpose of (i) making any transfers to the Bond and Interest Fund if the aggregate balance in the Special Reserve Fund and the Reserve Fund exceeds the amount required to redeem all Series 2025 Bonds then outstanding, (ii) for transfer to the Special Redemption Account in an amount equal to the Special Reserve Fund Credit in accordance with Section 6.1(d), (iii) on for transfer to the Bond and Interest Fund as described below, (iv) at the direction of an Authorized Officer for transfer to the Bond and Interest Fund or any other fund established hereunder, or (v) at the direction of an Authorized Officer for any use permitted by the Special Service Area Act, provided an opinion of bond counsel is delivered to the Trustee to the effect that such use will not violate the Special Service Area Act or adversely affect the tax-exempt status of interest on the Series 2025 Bonds. On (on which date the Special Reserve Fund Credit shall be zero), the Trustee shall without further direction, transfer any remaining amounts on deposit in the Special Reserve Fund to the Bond and Interest Fund to pay principal of and interest and redemption premium on the Series 2025 Bonds on the next succeeding Interest Payment Date. Any amounts in the Special Reserve Fund that are used to pay principal of, or interest or premium on, the Series 2025 Bonds shall be treated as Special Taxes paid by the owners of the affected Parcels for purposes of the Special Tax Roll and Report. Amounts on deposit in the Special Reserve Fund are not pledged to the payment of principal of or interest on the Series 2025 Bonds. Section 6.4 Administrative Expense Fund. There is hereby created and established with the Trustee a separate and special fund of the City which shall be designated as the "Special Service Area Number 2004-104 Special Tax Refunding Bonds, Administrative Expense Fund" (the "Administrative Expense Fund"). Amounts in the Administrative Expense Fund shall be withdrawn by the Trustee and paid to the City or its order upon receipt by the Trustee of a written request from an Authorized Officer stating the amount to be withdrawn, that such amount is to be used to pay an Administrative Expense, and the nature of such Administrative Expense. There is hereby created within the Administrative Expense Fund established with the Trustee a separate account designated the "Costs of Issuance Account". Amounts deposited into the Cost of Issuance Account shall be used solely for the purpose of paying costs incurred in 31 connection with the issuance of the Series 2025 Bonds (including, without limitation, the premiums for any Bond Insurance Policy and Reserve Fund Surety Policy). Disbursement from the Costs of Issuance Account shall be made by the Trustee upon receipt of a Written Request from the City in the form of Exhibit D which shall (i) set forth the amount required to be disbursed, the purpose for which the disbursement is to be made, that the disbursement is a proper expenditure from the Costs of Issuance Account, and payment instructions to the Trustee for the amount to be disbursed and (ii) certify that no portion of the amount then being requested to be disbursed was set forth in any previous request for disbursement. On the date which is six months after the date of issuance of the Series 2025 Bonds, the Trustee will transfer all amounts remaining in the Costs of Issuance Account to the Administrative Expense Fund. Section 6.5 Rebate Fund. There is hereby created and established with the Trustee a separate and special fund of the City which shall be designated as the "Special Service Area Number 2004-104 Special Tax Refunding Bonds, Rebate Fund" (the "Rebate Fund"), into which there shall be deposited as necessary investment earnings in the Bond and Interest Fund, the Reserve Fund and the Special Reserve Fund to the extent required so as to maintain the tax-exempt status of interest on the Series 2025 Bonds all at the direction of the City. All rebates, special impositions or taxes for such purpose payable to the United States of America (internal Revenue Service) shall be payable from the Rebate Fund at the direction of the City. Section 6.6 Investment of Funds. Moneys on deposit in Funds and Accounts established hereunder may be invested from time to time in Qualified Investments pursuant to and solely at the direction of the City to the Trustee provided that moneys on deposit in the Special Redemption Account shall be invested in Qualified Investments having a maturity of 180 days or less. Except as otherwise expressly provided herein, earnings or losses on such investments shall be attributed to the Fund or Account for which the investment was made. In the event that the Trustee does not receive directions from the City to invest funds held hereunder, the Trustee shall invest such funds in a money market fund which invests in short-term securities issued or guaranteed by the United States Government, its agencies or instrumentalities. The Trustee is hereby authorized to execute purchases and sales of Qualified Investments through the facilities of its own trading or capital markets operations or those of any affiliated entity. The Trustee shall send statements to the City and the Consultant on a monthly basis reflecting activity in the funds and accounts established pursuant to this Indenture for the preceding month as required by Section 9.9 of this Indenture. Although the City recognizes that it may obtain a broker confirmation or written statement containing comparable information at no additional cost, the City hereby agrees that confirmations of Qualified Investments are not required to be issued by the Trustee for each month in which a monthly statement is rendered. Notwithstanding anything herein to the contrary, at the written direction of the City the Trustee shall invest amounts on deposit in the (1) Special Redemption Account of the Bond and Interest Fund and (2) the Special Reserve Fund such that the yield on the investment does not exceed the yield on the Series 2025 Bonds. The Reserve Fund shall be invested only in Qualified Investments with maturities not longer than ten (10) years, the average life of which is no longer than five (5) years. investments on deposit in all funds and accounts established hereunder shall be valued at market value at least quarterly. 32 ARTICLE 7 COVENANTS AND AGREEMENTS OF THE CITY Section 7.1 Tax Covenants. (a) The City covenants with the holders of the Series 2025 Bonds from time to time outstanding that it (i) will take all actions which are necessary to be taken (and avoid any actions which it is necessary to avoid being taken) so that interest on the Series 2025 Bonds will not be or become included in gross income for federal income tax purposes under existing law, including without limitation the Code; (ii) will take all actions reasonably within its power to take which are necessary to be taken (and avoid taking any actions which are reasonably within its power to avoid taking and which are necessary to avoid) so that interest on the Series 2025 Bonds will not be or become included in gross income for federal income tax purposes under the federal income tax laws as in effect from time to time; and (iii) will take no action or permit any action in the investment of the proceeds of the Series 2025 Bonds, amounts in the Bond and Interest Fund or any other funds of the City which would result in making interest on the Series 2025 Bonds subject to federal income taxes by reason of causing the Series 2025 Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code, or direct or permit any action inconsistent with the regulations under the Code as promulgated and as amended from time to time and as applicable to the Series 2025 Bonds. The Mayor, City Clerk and City Treasurer are authorized and directed to take such action as is necessary in order to carry out the issuance and delivery of the Series 2025 Bonds including, without limitation, to make any representations and certifications they deem proper pertaining to the use of the proceeds of the Series 2025 Bonds and moneys in the Funds and Accounts established hereunder in order to establish that the Series 2025 Bonds shall not constitute arbitrage bonds as so defined. (b) The City further 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: (i) Unless an applicable exception to the Rebate Requirement is available to the City, the City will meet the Rebate Requirement. (ii) Relating to applicable exceptions, the City shall make such elections under the Code as it shall deem reasonable and in the best interests of the City. (iii) The City shall, not less frequently than annually, cause a rebate report to be prepared and delivered to the Trustee and upon receipt of such report cause the Trustee to transfer to the Rebate Fund the amount determined to be the accrued liability under the Rebate Requirement from other funds held pursuant to this Indenture. The City shall cause to be paid to the United States, without further order or direction from the Corporate Authorities, from time to time as required, amounts sufficient to meet the Rebate Requirement. 33 (iv) Interest earnings in the Bond and Interest Fund and the Reserve Fund are hereby authorized to be transferred, upon written direction from an Authorized Officer, from time to time as required, to the Rebate Fund for the purposes herein provided; and proceeds of the Series 2025 Bonds, investment earnings or amounts on deposit in any of the other funds and accounts created hereunder and any other Fund of the City are also hereby authorized to be used to meet the Rebate Requirement, but only if necessary after application of investment earnings as aforesaid and only as appropriated and directed by the Corporate Authorities. Section 7.2 Levy and Collection of Taxes. The City covenants with the holders of the Series 2025 Bonds from time to time outstanding that: (a) it will take all actions, if any, which shall be necessary, in order further to provide for the levy, extension, collection and application of the taxes levied by this Indenture and the Bond Ordinance including enforcement of the Special Taxes as described in clause (c) below; (b) it will not take any action which would adversely affect the levy, extension, collection and application of the taxes levied by this Indenture and the Bond Ordinance, except to abate those taxes to the extent permitted by this Indenture and the Special Tax Roll and Report; (c) it will comply with all requirements of the Special Service Area Act, the Bond Ordinance and other applicable present and future laws concerning the levy, extension and collection of the taxes levied by this Indenture and the Bond Ordinance; in each case so that the City shall be able to pay the principal of and interest on the Series 2025 Bonds as they come due, replenish the Special Reserve Fund to the Special Reserve Requirement and the Reserve Fund to the Reserve Requirement (or to restore the amount available under any Reserve Fund Surety Policy, together with cash on deposit in the Reserve Fund, to the Reserve Requirement), and will take all actions necessary to assure the timely collection of the Special Taxes, including without limitation, the enforcement of any delinquent Special Tax by providing the County with such information as is deemed necessary to enable the County to include any property subject to a delinquent Special Tax in the County Collector's annual tax sale and upon receipt of the written request of the Bond Insurer or a majority of the Bondholders in the event the tax lien is forfeited at such tax sale, by assigning to the Trustee its right to institute foreclosure proceedings, and/or assigning to the Trustee its right to purchase as a taxing district the unpaid taxes due upon the property all in the manner provided by law; provided, however, that the obligation to purchase unpaid taxes, or institute any proceeding shall only arise in the event the City or the Trustee, as applicable, makes the determination that sufficient funds are on deposit in the Administrative Expense Fund to (i) pay all remaining Administrative Expenses expected for such levy year, and (ii) apply to the purchase of the unpaid taxes and/or pay the costs of any proceeding; (d) in the event the City approves any change in the plats of subdivision for the Special Service Area which changes the density of either of the Special Service Area or otherwise becomes aware of a change in density, it shall provide prompt written notice to the Consultant of such fact and the circumstances resulting in the change in density; and 34 (e) to the extent possible, it will direct the County to deposit all Special Taxes when collected including Foreclosure Proceeds, condemnation proceeds and prepayments directly with the Trustee to be applied as set forth herein. Section 7.3 Proper Books and Records. The City will keep, or cause the Trustee to keep, proper books of record and accounts, separate from all other records and accounts of the City, in which complete and correct entries shall be made of all transactions relating to the deposits to and expenditure of amounts disbursed from the Funds and Accounts created hereunder and the Special Taxes. Such books of record and accounts shall at all times during business hours be subject to the inspection of the holders of not less than ten percent (10%) of the principal amount of the Series 2025 Bonds then outstanding, or their representatives authorized in writing. The City, or the Trustee on behalf of the City, upon written request will mail to the Purchaser and the Bond Insurer any information relating to the Series 2025 Bonds, the Special Service Area orthe Special Services, including, but not limited to, the annual audits of the Funds and Accounts established under this Indenture for each and every year. Section 7.4 Against Encumbrances. The City will not encumber, pledge or place any charge or lien upon any of the Special Taxes or other amounts pledged to the Series 2025 Bonds superior to, on a parity with, or junior to, the pledge and lien created in this Indenture for the benefit of the Series 2025 Bonds, except as permitted by, or specifically set forth in, this Indenture. Section 7.5 Continuina Disclosure Undertaking. The reports, statements and other documents required to be furnished to or by the Trustee pursuant to any provisions of this Indenture shall be available to the Purchaser and the Trustee shall submit to the Municipal Securities Rulemaking Board (the "MSRB ") through the Electronic Municipal Market Access System ("EMMA ") all information as required pursuant to the Continuing Disclosure Agreement. ARTICLE 8 DEFAULTS AND REMEDIES Section 8.1 Events of Default. "Events of Default" under this Indenture are as follows: (a) Default shall be made by the City in the payment of the principal of or premium, if any, on any Series 2025 Bond when and as the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise. (b) Default shall be made by the City in the payment of any installment of interest on any Series 2025 Bond when and as such installment of interest shall become due and payable. (c) The City shall (1) commence a voluntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or state bankruptcy, insolvency or other similar law, (2) make an assignment for the benefit of its creditors, (3) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or (4) be adjudicated a bankrupt or have entered against it any order for relief in respect of any involuntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable 35 Federal or state bankruptcy, insolvency or other similar law and such order shall continue in effect for a period of 60 days without stay or vacation. (d) A court of competent jurisdiction shall enter an order, judgment or decree appointing a receiver of the City, or of the whole or any substantial part of its property, or approving a petition seeking reorganization of the City under the Federal bankruptcy laws or any other applicable Federal or state law or statute and such order, judgment or decree shall not be vacated or set aside or stayed within 60 days from the date of the entry thereof. (e) Under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property, and such custody or control shall not be terminated or stayed within 60 days from the date of assumption of such custody or control. (f) The City shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Series 2025 Bonds, the Bond Ordinance or in this Indenture on the part of the City to be performed, and such default shall continue for 30 days after written notice specifying such default and requiring the same to be remedied shall have been given to the City by the Trustee (which may give such notice whenever it reasonably determines that such a default exists and shall give such notice at the written request of the holders of not less than 25% in principal amount of the Series 2025 Bonds then outstanding). Section 8.2 Remedies. Upon the occurrence of an Event of Default the Trustee may, and upon the written request of the Bond Insurer or the holders of 25% in principal amount of the outstanding Series 2025 Bonds affected (with the consent of the Bond Insurer) by the Event of Default and upon being indemnified as provided in Section 9.2(h) hereof shall, proceed to protect and enforce its rights and the rights of the holders of the Series 2025 Bonds by a suit, action or special proceeding in equity or at law, by mandamus or otherwise, either for the specific performance of any covenant or agreement contained herein or in aid or execution of any power herein granted or for any enforcement of any proper legal or equitable remedy as the Trustee, being advised by counsel, shall deem most effective to protect and enforce the rights aforesaid. During the continuance of an Event of Default, all moneys received by the Trustee under this Indenture from the City or from any other source shall be applied by the Trustee in accordance with the terms of Section 8.10 hereof. Any judgment against the City shall be enforceable only against the amounts pledged pursuant to this Indenture. There shall not be authorized any deficiency judgment against any assets of, or the general credit of, the City, its officers or employees or independent contractors. The Series 2025 Bonds shall not he subject to acceleration upon the occurrence of an Event of Default. Section 8.3 Notice of Default. The Trustee shall, within 10 days after the Trustee receives notice or obtains knowledge of the occurrence of an Event of Default, mail to the City, and the Bondholders at the address shown on the registration books of the City maintained by the EEO Bond Registrar, notice of all Events of Default known to the Trustee unless such Events of Default shall have been cured before the giving of such notice. Section 8.4 Termination of Proceedings by Trustee. In case any proceedings taken by the Trustee on account of any Event of Default shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case the City, the Trustee and the Bondholders shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies and powers of the Trustee shall continue as though no such proceeding had been taken. Section 8.5 Right of Bondholders to Control Proceedings. Anything in this Indenture to the contrary notwithstanding, the Bond Insurer or, if the Bond Insurer has defaulted on any payments required by the Bond Insurance Policy, the holders of a majority in principal amount of the Series 2025 Bonds then outstanding shall have the right, by an instrument in writing executed and delivered to the Trustee, to direct the method and place of conducting all remedial proceedings to be taken by the Trustee hereunder in respect of the Series 2025 Bonds; provided that such direction shall not be otherwise than in accordance with law and the Trustee shall be indemnified to its satisfaction against the costs, expenses and liabilities to be incurred therein or thereby. Section 8.6 Right of Bondholders to Institute Suit. No holder of any of the Series 2025 Bonds shall have any right to institute any suit, action or proceeding in equity or at law for the execution of any trust hereunder, or for any other remedy hereunder or on the Series 2025 Bonds unless such holder previously shall have given to the Trustee written notice of an Event of Default as hereinabove provided, and unless also the Bond Insurer or the holder, or holders, of 25% in principal amount of the outstanding Series 2025 Bonds affected (with the consent of the Bond Insurer) by the Event of Default shall have made written request of the Trustee after the right to exercise such powers, or right of action, as the case may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers hereinbefore granted, or to institute such action, suit, or proceeding in its name; and unless, also, there shall have been offered to the Trustee security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee shall have refused or neglected to comply with such request within a reasonable time; and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers and trusts of this Indenture or for any other remedy hereunder; it being understood and intended that no one or more holders of the Series 2025 Bonds shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Indenture, or to enforce any right hereunder, except in the manner herein provided, and that all proceedings at law or in equity shall be instituted, had and maintained in the manner herein provided and for the equal benefit of all holders of the outstanding Series 2025 Bonds. Nothing in this Section 8.6 contained shall, however, affect or impair the right of any Bondholder, which is absolute and unconditional, to enforce the payment of the principal of and interest on the Bondholder's Series 2025 Bonds out of the Bond and Interest Fund, or the obligation of the City to pay the same, out of the Bond and Interest Fund, at the time and place in the Series 2025 Bonds expressed. 37 Section 8.7 Suits by Trustee. All rights of action under this Indenture, or under any of the Series 2025 Bonds, enforceable by the Trustee, may be enforced by it without the possession of any of the Series 2025 Bonds or the production thereof at the trial or other proceeding relative thereto, and any such suit, or proceeding, instituted by the Trustee shall be brought in its name for the ratable benefit of the holders of the Series 2025 Bonds affected by such suit or proceeding, subject to the provisions of this Indenture. Section 8.8 Remedies Cumulative. No remedy herein conferred upon or reserved to the Trustee or to the Bondholders is intended to be exclusive of any other remedy or remedies, and each and every remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. Section 8.9 Waiver of Default. No delay or omission of the Trustee or of any Bondholder to exercise any right or power shall be construed to be a waiver of any such default, or an acquiescence therein; and every power and remedy given by this Article 8 to the Trustee and the Bondholders, respectively, may be exercised from time to time, and as often as may be deemed expedient. Section 8.10 Application of Moneys After Default. The City covenants that if an Event of Default shall happen and shall not have been remedied, the Trustee shall apply moneys, securities and funds on deposit in the Funds and Accounts established pursuant to Article b or received by the Trustee pursuant to any right given or action taken under the provisions of this Section as follows and in the following order: (a) To the payment of the reasonable and proper fees, charges, expenses and liabilities of the Trustee, the Bond Registrar and any paying agent, including the fees and expenses of outside counsel for the Trustee, Bond Registrar and any paying agent and the payment of Administrative Expenses owed to the City or the Consultant. (b) To the payment of the principal and interest then due on the Series 2025 Bonds as follows: (i) first, to the payment to the persons entitled thereto of all interest then due or payable on the Series 2025 Bonds in the order of the maturity of such installments; (ii) second, to the payment to the persons entitled thereto of the unpaid installments of principal of any of the Series 2025 Bonds which have become due in the order of the maturity of such installments; and (iii) third, to the payment of amounts due and payable to the Bond Insurer, not paid pursuant to (i) and (ii) above. Whenever moneys are to be applied by the Trustee pursuant to the provisions of this paragraph, such moneys shall be applied by the Trustee at such times, and from time to time, as the Trustee in its sole discretion shall determine, having due regard for the amount of such moneys available 38 for application and the likelihood of additional moneys becoming available for such application in the future. The deposit of such moneys with the paying agent, or otherwise setting aside such moneys, in trust for the proper purpose, shall constitute proper application by the Trustee; and the Trustee shall incur no liability whatsoever to the City, to any Bondholder or to any other person for any delay in applying any such funds, so long as the Trustee acts with reasonable diligence, having due regard to the circumstances, and ultimately applies the same in accordance with such provisions of this Indenture as may be applicable at the time of application by the Trustee. Whenever the Trustee shall exercise such discretion in applying such funds, it shall fix the date (which shall be an Interest Payment Date unless the Trustee shall deem another date more suitable) upon which such application is to be made and upon such date interest on the amounts of principal paid on such date shall cease to accrue. The Trustee shall give such notice as it may deem appropriate of the fixing of any such date and of the endorsement to be entered on each Series 2025 Bond on which payment shall be made, and shall not be required to make payment to the holder of any unpaid Series 2025 Bond until such Series 2025 Bond shall be presented to the Trustee for appropriate endorsement, or some other procedure deemed satisfactory by the Trustee. Section 9.11 Bond Insurer Control. Anything in this Indenture to the contrary notwithstanding, upon the occurrence and continuance of an Event of Default as defined herein, the Bond Insurer shall be entitled to control and direct the enforcement of all rights and remedies granted to the Bondholders, or the Trustee for the benefit of the Bondholders, under this Indenture provided the Bond Insurer has not defaulted on any payments required by the terms of the Bond Insurance Policy. The Bond Insurer also shall be entitled to approve all waivers of Events of Default provided the Bond Insurer has not defaulted on any payments required by the terms of the Bond Insurance Policy. ARTICLE 9 TRUSTEE Section 9.1 Appointment of the Trustee. The Trustee hereunder is hereby constituted and appointed as the trustee of an express trust hereby created for the Bondholders. The further rights and duties of the Trustee are set forth in this Article 9. Section 9.2 Performance of Duties. The Trustee shall perform such duties and only such duties as are specifically set forth in this Indenture, using such care as a corporate trustee ordinarily would use in performing trusts under a corporate indenture or trust or depositary agreement. No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: (a) The duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee. 39 (b) In the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificate or opinion furnished to the Trustee conforming to the requirements of this Indenture; but in the case of any such certificate or opinion which by any provision hereof is specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not it conforms to the requirements of this Indenture. (c) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Bond Insurer or the holders of not less than a majority (or such other percentage as is otherwise specifically required by the terms hereof) in aggregate principal amount of all the Series 2025 Bonds at the time outstanding other than actions taken or omitted by the Trustee which are adjudicated to have resulted from the negligence of the Trustee. (d) None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur individual financial liability in the exercise of any of its rights or powers. (e) At any and all reasonable times, upon first providing 48 hours' notice to the City, the Trustee, and its duly authorized agents, attorneys, experts, engineers, accountants and representatives, shall have the right fully to inspect any and all of the books, papers and records of the City pertaining to the Special Services and the Series 2025 Bonds, and to copy such memoranda from and in regard thereto as may be desired. (f) The Trustee shall not be required to give any bond or surety in respect of the execution of the trusts and powers granted by this Indenture or otherwise in respect of the premises. (g) Notwithstanding anything elsewhere in this Indenture contained, the Trustee shall have the right, but shall not be required, to demand, in respect of the withdrawal of any cash or any action whatsoever within the purview of this Indenture, any showings, certificates, opinions, appraisals or other information or corporate action or evidence thereof, in addition to that by the terms hereof required as a condition of such action by the Trustee, reasonably necessary to establish the right of the City to the withdrawal of any cash or the taking of any other action by the Trustee. (h) Before taking any action under Section 8.2, the Trustee may require that a satisfactory indemnity bond or other security satisfactory to it be furnished by the party requesting that the Trustee take such action for the reimbursement of all expenses to which it may be put and to protect it against all liability, except liability which is adjudicated to have resulted from the negligence or willful default of the Trustee in connection with any action so taken or failure to act in accordance with this Indenture. 40 (i) All moneys received by the Trustee or any paying agent shall, until used or applied or invested as herein provided, be held in trust for the purposes for which they were received. Section 9.3 Instruments Upon Which Trustee May Rely. Except as otherwise provided in paragraph (b) hereof: (a) The Trustee may rely and shall be protected in acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties; (b) Any notice, request, direction, election, order or demand of the City mentioned herein shall be sufficiently evidenced by an instrument signed in the name of the City by an Authorized Officer (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Corporate Authorities may be evidenced to the Trustee by a copy thereof certified by the City Clerk under the City seal; (c) The Trustee may consult with reputable counsel (who may but need not be counsel for the City) and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel; (d) Whenever in the administration of the trusts under this Indenture, the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by a certificate of the City; and such certificate of the City shall, in the absence of negligence or bad faith on the part of the Trustee, be full warranty to the Trustee for any action taken or suffered by it under the provisions of this Indenture upon the faith thereof. Section 9.4 Trustee not Responsible for Recitals and Other Matters. The Trustee shall not be responsible in any manner whatsoever for the correctness of the recitals herein or in the Series 2025 Bonds (except the Trustee's certificate of authentication thereon), all of which are made by the City solely; and the Trustee shall not be responsible or accountable in any manner whatsoever for or with respect to the validity or execution or sufficiency of this Indenture, or of any indenture supplemental hereto, or of the Bond Ordinance or the Series 2025 Bonds, or the sufficiency of the taxes levied to pay the principal of and interest on the Series 2025 Bonds, or for the security afforded hereby or for the validity of any securities at any time held hereunder, and the Trustee makes no representation with respect thereto. The Trustee shall not be accountable for the use or application by the City of the proceeds of any Series 2025 Bonds authenticated and delivered hereunder, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture. 41 Section 9.5 Trustee May Acquire Series 2025 Bonds. The Trustee and its officers and directors may acquire and hold, or become the pledgee of, Series 2025 Bonds and may otherwise deal with the City in the manner and to the same extent and with like effect as though it were not Trustee hereunder. Section 9.6 Qualification of Trustee. There shall at all times be a Trustee hereunder which shall be a corporation organized and doing business under the laws of the United States or any state thereof, authorized under such laws to exercise corporate trust powers, having a combined capital, surplus and undivided profits of at least $25,000,000, and subject to supervision or examination by federal or state authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this paragraph the combined capital, surplus and undivided profits of such corporation shall be deemed to be its combined capital, surplus and undivided profits as set forth in its most recent report of condition so published. In case at any time the Trustee shall cease to be eligible in `accordance with the provisions of this paragraph, the Trustee shall resign immediately in the manner and with the effect specified in Section 9. 7. Section 9.7 Resignation or Removal of Trustee and Appointment of Successor. The Trustee may at any time resign by giving written notice to the City, the Bond Insurer, and the Bondholders by first class mail to the names and addresses shown on the list maintained by the Bond Registrar. Upon receiving such notice of resignation, the City shall promptly appoint a successor Trustee by an instrument in writing executed by order of the City. If no successor Trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee, or any Bondholder who has been a bona fide holder of a Series 2025 Bond or Series 2025 Bonds for at least six months may, on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor Trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor Trustee. (a) In case at any time any of the following shall occur: (i) The Trustee shall cease to be eligible in accordance with the provisions of Section 9.6 and shall fail to resign after written request therefor by the City or by any Bondholder who has been a bona fide holder of a Series 2025 Bond or Series 2025 Bonds for at least six months, or (ii) The Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case, the City may remove the Trustee and appoint a successor Trustee by an instrument in writing executed by order of the City or any Bondholder may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the 42 Trustee and the appointment of a successor Trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor Trustee. (b) After the recurrence of an Event of Default, the Bond Insurer or the holders of a majority in aggregate principal amount of all the Series 2025 Bonds at the time outstanding may remove the Trustee and appoint a successor Trustee by an instrument or concurrent instruments in writing signed by the Bond Insurer or such Bondholders. Such successor Trustee shall be a corporation authorized under applicable laws to exercise corporate trust powers, may be incorporated under the laws of the United States or of any State within the United States. Such successor Trustee shall satisfy the minimum combined capital, surplus and undivided profits requirement set forth in Section 9.6. (c) Provided no Event of Default has occurred hereunder, the City may at any time remove the Trustee and appoint a successor Trustee by an instrument in writing signed by the City. (d) Any resignation or removal of the Trustee and appointment of a successor Trustee pursuant to any of the provisions of this Section 9.7 shall become effective upon acceptance of appointment by the successor Trustee as provided in Section R.S. Section 9.8 Concerning the Successor Trustee. Any successor Trustee appointed as provided in Section 9.7 shall execute, acknowledge and deliver to the City and to its predecessor Trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts, duties and obligations of its predecessor in the trusts hereunder, with like effect as if originally named as Trustee herein; but nevertheless on the written request of the City or the request of the successor Trustee, the Trustee ceasing to act shall execute and deliver an instrument transferring to such successor Trustee, upon the trusts herein expressed, all the rights, powers and trusts of the Trustee so ceasing to act. Upon request of any such successor Trustee, the City shall execute any and all instruments in writing more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and duties. Any Trustee ceasing to act shall nevertheless be entitled to receive the amounts due it as compensation, reimbursement, expenses and indemnity afforded to it by this Article 9. No successor Trustee shall accept appointment as provided in this Section 9.8 unless at the time of such acceptance such successor Trustee shall be eligible under the provisions of Section 9.6. Upon the acceptance of appointment by a successor Trustee as provided in this Section 9.8, the City shall mail a copy of such notice to each person whose name appears as an owner of Series 2025 Bonds on the list maintained by the Bond Registrar. If the City fails to mail such notice within 10 days after acceptance of appointment by the successor Trustee, the successor Trustee shall cause such notice to be mailed at the expense of the City from amounts on deposit in the Administrative Expense Fund. 43 Section 9.9 Monthly Statements. The Trustee shall provide to the Consultant and the City, or their designees, a monthly statement, commencing on , 2026, itemizing all moneys received by it and all payments made by it under this Indenture during the preceding monthly period and annual reports relating to the Funds and Accounts created under this Indenture and such other information relating to the Series 2025 Bonds and the Funds and Accounts maintained by the Trustee under this Indenture as the Purchaser, the Bond Insurer and the City shall reasonably request. ARTICLE 10 SUPPLEMENTAL INDENTURES Section 10.1 Supplemental Indentures Not Requiring Consent of Bondholders. The City by the Corporate Authorities, and the Trustee from time to time and at any time, subject to the conditions and restrictions in this Indenture contained including, without limitation, the provisions of Section 10.6 hereof, may pass and accept an indenture or indentures supplemental hereto, which indenture or indentures thereafter shall form a part hereof, for any one or more of the following purposes: (a) To add to the covenants and agreements of the City in this Indenture contained, other covenants and agreements thereafter to be observed or to surrender, restrict or limit any right or power herein reserved to or conferred upon the City; (b) To grant to or confer upon the Trustee for the benefit of the owners of the Series 2025 Bonds any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners or the Trustee; (c) To modify, amend or supplement this Indenture in such manner as to permit, if presented, the qualification of this Indenture under the Trust Indenture Act of 1939 or any similar federal statute then in effect or under any state blue sky law; (d) To surrender any right, power or privilege reserved to or conferred upon the City by the terms of this Indenture, provided that the surrender of such right, power or privilege is not contrary to or inconsistent with the covenants and agreements of the City contained in this Indenture; (e) To issue refunding bonds subject to the limitations set forth in the Special Tax Roll and Report and the Establishing Ordinance; and (f) To permit any other amendment that, in the judgment of the Trustee, is not materially adverse to the Trustee or the Holders. Any supplemental indenture authorized by the provisions of this Section 10.1 may be executed by the City, by the Corporate Authorities, and by the Trustee without the consent of the registered owners of any of the Series 2025 Bonds at the time outstanding, but only upon receipt of an opinion of bond counsel if requested pursuant to the provisions of Section 10.6, notwithstanding any of the provisions of Section 10.2, but the Trustee shall not be obligated to 44 accept any provision of such supplemental indenture to the extent that it affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. Section 10.2 Supplemental Indentures Requiring Consent of Bondholders. With the consent (evidenced as provided herein) of the Bond Insurer and the registered owners of not less than a majority in aggregate principal amount of the Series 2025 Bonds, respectively, at the time outstanding, but only upon receipt of an opinion of bond counsel if requested pursuant to the provisions of Section 10.6, the City, by the Corporate Authorities may pass, and the Trustee may accept from time to time and at any time an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this indenture or of any supplemental indenture; provided that no such modification or amendment shall extend the maturity or reduce the principal of or the interest rate on or otherwise alter or impair the obligation of the City to pay the principal, interest or redemption premium, if any, at the time and place and at the rate and in the currency provided therein of any Series 2025 Bond without the express consent of the registered owner of such Series 2025 Bond or permit the creation of a preference or priority of any Series 2025 Bond or Series 2025 Bonds over any other Series 2025 Bond or Series 2025 Bonds or reduce the percentage of Series 2025 Bonds, respectively, required for the affirmative vote or written consent to an amendment or modification, or deprive the registered owners of the Series 2025 Bonds, respectively, (except as aforesaid) of the right to payment of the Series 2025 Bonds, respectively, from the Special Taxes and the Foreclosure Proceeds without the consent of the registered owners of all the Series 2025 Bonds (as the case may be) then outstanding. Upon receipt by the Trustee of a certified copy of such Indenture and upon the filing with the Trustee of evidence of the consent of the Bond Insurer and Bondholders as aforesaid, the Trustee shall accept such supplemental indenture, but the Trustee shall not be obligated to accept any provision of such supplemental indenture to the extent that it affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. It shall not be necessary for the consent of the Bondholders under this paragraph to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof. Promptly after the passage by the City and the acceptance by the Trustee of any supplemental indenture pertaining to the Series 2025 Bonds pursuant to the provisions of this paragraph, the City shall cause the Trustee to mail a notice by first class mail to the Bond Insurer and the Bondholders, setting forth in general terms the substance of such supplemental indenture, and that the supplemental Indenture has been consented to by the Bond Insurer and the requisite percentage of the Bondholders. Any failure of the City to give such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture. Section 10.3 Supplemental Indenture to Modify this Indenture. Upon the execution of any supplemental indenture pursuant to the provisions of this Article 10, and upon receipt of the opinion of bond counsel if required by the provisions of Section 10.6, this Indenture shall be modified and amended in accordance therewith and the respective rights, duties and obligations under this Indenture of the City, the Trustee and all registered owners of Series 2025 Bonds, respectively, outstanding thereunder shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modification and amendments, and all the terms and 45 conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. Section 10.4 Trustee May RelyUpon Opinion of Counsel Re: Supplemental Indenture. The Trustee may receive an opinion of counsel as conclusive evidence that any supplemental indenture executed pursuant to the provisions of this Article 10 complies with the requirements of this Article 10. Section 10.5 Notation. Series 2025 Bonds authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article 10 may bear a notation, in form approved by the Trustee, as to any matter provided for in such supplemental indenture, and if such supplemental indenture shall so provide, new Series 2025 Bonds, so modified as to conform, in the opinion of the Trustee and the Corporate Authorities, to any modification of this Indenture contained in any such supplemental indenture, may be prepared by the City, authenticated by the Trustee and delivered without cost to the registered owners of the Series 2025 Bonds then outstanding, upon surrender for cancellation of such Series 2025 Bonds in equal aggregate principal amounts. Section 10.6 Opinion of Bond Counsel. Prior to the adoption of a supplemental indenture executed pursuant to the provisions of this Article 10 the Trustee shall give written notice by mail to the registered owners of all Series 2025 Bonds Outstanding at the addresses as set forth in the Register of the Series 2025 Bonds held by the Bond Registrar of the substance of the proposed supplemental indenture. If within 10 days of Trustee's mailing such notice any registered owner of the Series 2025 Bonds requests that an opinion of bond counsel be delivered to the effect that such supplemental indenture will not adversely affect the exclusion from gross income of interest on the Series 2025 Bonds for federal income tax purposes, such supplemental indenture shall not become effective until such opinion has been delivered to the Trustee. ARTICLE 11 DEFEASANCE Section 11.1 Defeasance. (a) If the City shall pay or cause to be paid, or there shall otherwise be paid, to the Owners of all Series 2025 Bonds the principal or Redemption Price, if applicable, and interest due or to become due thereon, at the times and in the manner stipulated therein and in this Indenture, then the pledge of the Trust Estate, and all covenants, agreements and other obligations of the City to the Bondholders, shall thereupon cease, terminate and become void and be discharged and satisfied. In such event, the Trustee shall cause an accounting for such period or periods as shall be requested by the City to be prepared and filed with the City and, upon the request of the City, shall execute and deliver to the City all such instruments as may be desirable to evidence such discharge and satisfaction, and the Trustee shall pay over or deliver to the City all moneys or securities held pursuant to this Indenture which are not required for the payment of principal or Redemption Price, if applicable, of and interest on Series 2025 Bonds. If the City shall pay or cause to be paid, or there shall otherwise be paid, to the Owners of any Outstanding Series 2025 Bonds the principal or Redemption Price and interest due or to become due thereon, at the times 46 and in the manner stipulated therein and in this Indenture, such Series 2025 Bonds shall cease to be entitled to any lien, benefit or security under this Indenture, and all covenants, agreements and obligations of the City to the Owners of such Bonds shall thereupon cease, terminate and become void and be discharged and satisfied. (b) Series 2025 Bonds or interest installments for the payment or redemption of which moneys shall have been set aside and shall be held in trust by the Trustee (through deposit by the City of funds for such payment or redemption or otherwise) at the maturity or redemption date thereof shall be deemed to have been paid within the meaning and with the effect expressed in subsection (a) of this Section 11.1. In addition, any Outstanding Series 2025 Bonds shall, prior to the maturity or redemption date thereof, be deemed to have been paid within the meaning and with the effect expressed in subsection (a) of this Section 11.1 upon compliance with the provisions of subsection (c) of this Section 11.1. (c) Subject to the provisions of subsection (d) of this Section 11.1, any Outstanding Series 2025 Bonds shall, prior to the maturity or redemption date thereof, be deemed to have been paid within the meaning and with the effect expressed in subsection (a) of this Section 11.1 if- (i) in case any of said Series 2025 Bonds are to be redeemed on any date prior to their maturity, the City shall have given to the Trustee irrevocable instructions accepted in writing by the Trustee to give as provided in Section 3.4 notice of redemption of such Bonds on said date; (ii) there shall have been deposited with the Trustee either moneys in an amount which shall be sufficient or Defeasance Securities, the principal of and the interest on which when due will provide moneys which, together with the moneys, if any, deposited with the Trustee at the same time, shall be sufficient, to pay when due the principal or Redemption Price, if applicable, and interest due and to become due on said Series 2025 Bonds on or prior to the redemption date or maturity date thereof, as the case may be; and (iii) in the event said Series 2025 Bonds do not mature, are not by their terms subject to redemption or, under the plan of refunding applicable thereto, are not to be redeemed, in each case, within the next succeeding ninety (90) days, the City shall have given the Trustee in form satisfactory to it irrevocable instructions to give, as soon as practicable, by first-class mail, postage prepaid, to the owners of such Series 2025 Bonds at their last addresses appearing on the books of the City kept at the office of the Bond Registrar a notice that the deposit required by (ii) above has been made with the Trustee and that said Series 2025 Bonds are deemed to have been paid in accordance with this Section 11.1 and stating such maturity or redemption date upon which moneys are to be available for the payment of the principal or Redemption Price, if applicable, on said Series 2025 Bonds. In the event Defeasance Securities are deposited with the Trustee the City shall also provide a Verification verifying the sufficiency of the Defeasance Securities to pay the Series 2025 Bonds in full on the maturity or redemption date. 47 (d) Anything in this Indenture to the contrary notwithstanding, any moneys held in trust for the payment and discharge of any of the Series 2025 Bonds which remain unclaimed for one year after the date when such Series 2025 Bonds have become due and payable, either at their stated maturity dates or by call for earlier redemption shall be repaid to the City, as its absolute property and free from trust, and the Trustee shall thereupon be released and discharged, with respect thereto and the Bondholders shall look only to the City for the payment of such Series 2025 Bonds; provided, however, that before being required to make any such payment to the City, the Trustee shall, at the expense of the City, give to the owners of such Series 2025 Bonds as to which any moneys remain unclaimed, by first class mail, postage prepaid, at the last address of such owners appearing on the books of the City kept at the office of the Bond Registrar, a notice that said moneys remain unclaimed and that, after a date named in said notice, which date shall be not less than thirty (30) days after the date of the mailing of such notice, the balance of such moneys then unclaimed will be returned to the City. . (e) Upon the payment or defeasance of all outstanding Series 2025 Bonds as provided in this Article 11, the Trustee and the City shall execute a Satisfaction of Tax Lien for all Parcels for which a satisfaction of tax lien has not previously been delivered and the City shall file or cause to be filed such Satisfaction of Tax Lien with the Recorder of Deeds of Kendall County, Illinois. ARTICLE 12 MISCELLANEOUS Section 12.1 Severability. If any provision of this Indenture shall be held or deemed to be illegal, inoperative or unenforceable under applicable law or interpreted in such manner as to be prohibited by or be held invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Indenture. Section 12.2 Notices. Except as otherwise provided in this Indenture, all notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when personally delivered or mailed by certified mail, postage prepaid, or when sent by telecopy (receipt confirmed by telephone) or telegram, addressed as follows: If to the City: United City of Yorkville 651 Prairie Pointe Drive Yorkville, IL 60560 Attention: Mayor Telephone: (630) 553-4350 Bond Counsel: Croke Fairchild Duarte & Beres LLC 180 North LaSalle St., Suite 3400 Chicago, IL 60601 Attention: Randall S. Kulat Telephone: (312) 529-5137 If to the Trustee: U.S. Bank Trust Company, National Association 48 140 South LaSalle Street Chicago, IL 60603 Attention: Merci Stahl Telephone: (312) 332-6774 If to the Purchaser: Raymond James & Associates, Inc. 263 Shuman Boulevard, Suite 275 Naperville, IL 60563 Attention: Dalena Welkomer Telephone: (312) 612-7642 If to the Bond Insurer: With a copy to. - The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods, provided, however, that the Trustee shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. Section 12.3 Holidays. If any date for the payment of an amount hereunder or the taking of any other action required or permitted to be taken hereunder, is not a Business Day, then such payment shall be due, or such action shall or may be taken, as the case may be, on the first Business Day thereafter with the same force and effect as if done on the nominal date provided in this Indenture. Section 12.4 Execution of Counterparts. This Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 12.5 Applicable Law. This Indenture shall be governed by and construed in accordance with the internal laws of the State. Section 12.6 Immunityof Officers. Employees, Elected Officials of the Ci . No recourse shall be had for the payment of the principal of or premium, if any, or interest on any of the Series 2025 Bonds or for any claim based thereon or upon any obligation, covenant or agreement contained in this Indenture or any agreement supplemental hereto, against any past, present or future Mayor, trustee or other officer, director, member, employee, attorney or agent of the City, or any incorporator, officer, director, member, trustee, employee or agent of any successor corporation or body politic, as such, either directly or through the City or any successor corporation or body politic, under any rule of law or equity, statute or constitution or by the enforcement of any assessment or penalty or otherwise, and all such liability of any such incorporators, officers, directors, trustees, members, employees or agents, as such, is hereby expressly waived and released as a condition of and consideration for the execution of this Indenture and the issuance of any of the Series 2025 Bonds. (Signature page follows) 50 IN WITNESS WHEREOF, the United City of Yorkville, Illinois has caused these presents to be signed in its name and on its behalf by its Mayor and its corporate seal to be hereunto affixed and attested by its City Clerk and to evidence its acceptance of the trusts hereby created U.S. Bank Trust Company, National Association has caused these presents to be signed in its name and on its behalf by its Authorized Officer, its official seal to be hereunto affixed and the same to be attested by its Authorized Officer, all as of the day and year first above written. [SEAT.] Attest: By: City Clerk [SEAL] Attest: Authorized Officer UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS In Mayor U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee M. Authorized Officer [Signature Page to Trust Indenture] 51 EXHIBIT A UNITED CITY OF YORKVILLE SPECIAL SERVICE AREA NUMBER 2004-104 THAT PART OF THE SOUTHEAST QUARTER OF SECTION 11, THAT PART OF SECTION 14, AND THAT PART OF THE NORTH HALF OF SECTION 23, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF KENNEDY ROAD WITH THE SOUTHERLY LINE OF THE BURLINGTON NORTHERN RAILROAD RIGHT-OF-WAY THROUGH SAID SECTION 14; THENCE NORTH 73 DEGREES 14 MINUTES 21 SECONDS EAST ALONG SAID SOUTHERLY LINE 1239.61 FEET TO THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 14; THENCE NORTH 88 DEGREES 04 MINUTES 00 SECONDS EAST, ALONG SAID NORTH LINE, 610.29 FEET TO THE NORTHEAST CORNER OF SAID NORTHWEST QUARTER; THENCE NORTH 87 DEGREES 54 MINUTES 03 SECONDS EAST ALONG THE SOUTH LINE OF SAID SOUTHEAST QUARTER OF SECTION 11, A DISTANCE OF 1329.33 FEET TO THE WEST LINE OF THE SOUTHEAST QUARTER OF SAID SOUTHEAST QUARTER; THENCE NORTH 01 DEGREES 21 MINUTES 20 SECONDS WEST ALONG SAID WEST LINE, 511.01 FEET TO SAID SOUTHERLY LINE OF THE BURLINGTON NORTHERN RAILROAD; THENCE NORTH 73 DEGREES 14 MINUTES 21 SECONDS EAST, ALONG SAID SOUTHERLY LINE, 837.66 FEET TO THE CENTERLINE OF MILL ROAD; THENCE SOUTH 74 DEGREES 18 MINUTES 13 SECONDS EAST ALONG SAID CENTERLINE 546.02 FEET TO THE EAST LINE OF SAID SOUTHEAST QUARTER OF SECTION 11; THENCE SOUTH 01 DEGREE 19 MINUTES 08 SECONDS EAST ALONG SAID EAST LINE, 556.17 FEET TO THE SOUTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE SOUTH 01 DEGREE 19 MINUTES 08 SECONDS EAST ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 14, A DISTANCE OF 1122.0 FEET; THENCE SOUTH 87 DEGREES 45 MINUTES 51 SECONDS WEST, 438.0 FEET TO THE NORTHEAST CORNER OF LYNWOOD SUBDIVISION, EXTENSION FOUR; THENCE SOUTH 87 DEGREES 45 MINUTES 51 SECONDS WEST, ALONG THE NORTHERLY LINE OF SAID LYNWOOD SUBDIVISION, EXTENSION FOUR, 1168.80 FEET TO THE NORTHWEST CORNER THEREOF; THENCE SOUTH 01 DEGREE 46 MINUTES 18 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSIONS FOURAND FIVE, 1173.80 FEET TO AN IRON STAKE; THENCE SOUTH 01 DEGREE 47 MINUTES 49 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSION FIVE, 376.25 FEET TO AN IRON STAKE; THENCE SOUTH 02 DEGREES 01 MINUTES 46 SECONDS EAST ALONG THE WESTERLY LINES OF LYNWOOD SUBDIVISION, EXTENSIONS FIVE AND SIX, 1950.62 FEET TO AN IRON STAKE; THENCE SOUTH 01. DEGREE 51 MINUTES 08 SECONDS EAST, ALONG THE WESTERLY LINE OF LYNWOOD SUBDIVISION, EXTENSION SIX, 879.29 FEET TO THE CENTERLINE OF U. S. ROUTE NO. 34; THENCE SOUTH 45 DEGREES 14 MINUTES 47 SECONDS WEST ALONG SAID CENTERLINE 878.60 FEET; THENCE NORTH 37 DEGREES 07 MINUTES 26 SECONDS WEST, 2106.30 FEET; THENCE NORTH 47 DEGREES 17 MINUTES 26 SECONDS WEST, 1500.85 FEET TO THE CENTERLINE OF KENNEDY ROAD AND THE EASTERNMOST CORNER OF A TRACT DESCRIBED IN A QUIT CLAIM DEED TO GEORGE AND GLENNA 52 PATTERSON, HUSBAND AND WIFE, RECORDED AS DOCUMENT NO. 72375 ON JANUARY 25,1972; THENCE NORTH 25 DEGREES 56 MINUTES 49 SECONDS EAST ALONG SAID CENTERLINE 236.34 FEET; THENCE NORTHEASTERLY AND NORTHERLY, A RADIUS OF 800.0 FEET; AN ARC DISTANCE OF 419.10 FEET; THENCE NORTH 04 DEGREES 04 MINUTES 07 SECONDS WEST ALONG SAID CENTERLINE 531.06 FEET; THENCE NORTH 05 DEGREES 06 MINUTES 07 SECONDS WEST ALONG SAID CENTERLINE 1866.0 FEET TO THE POINT OF BEGINNING IN BRISTOL TOWNSHIP, KENDALL COUNTY, ILLINOIS AND CONTAINING 372.223 ACRES. ALSO: THAT PART OF SECTIONS FOURTEEN (14), FIFTEEN (15) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. I RECORDED AS DOCUMENT #71-215; THENCE NORTH 60 DEGREES 17 MINUTES 26 SECONDS EAST, 724.86 FEET ALONG THE CENTERLINE OF KENNEDY ROAD TO THE POINT OF CURVATURE OF A 1094.72 FOOT RADIUS CURVE TO THE LEFT; THENCE NORTHEASTERLY 631.18 FEET ALONG SAID CURVE WHOSE CHORD BEARS NORTH 43 DEGREES 46 MINUTES 24 SECONDS EAST 622.47 FEET TO THE POINT OF TANGENCY OF SAID CURVE; THENCE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 11.57 FEET ALONG SAID CENTERLINE TO A POINT, THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1776.45 FEET TO A POINT; THENCE SOUTH 52 DEGREES 21 MINUTES 00 SECONDS WEST 1343.89 FEET TO A POINT IN THE CENTERLINE OF BRISTOL ROAD; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 1778.085 FEET ALONG SAID CENTERLINE TO THE POINT OF BEGINNING. ALSO: THAT PART OF SECTIONS FOURTEEN (14) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL'S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO. 1, RECORDED AS DOCUMENT #71-215; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 1778.85 FEET ALONG THE CENTERLINE OF BRISTOL ROAD FOR THE POINT OF BEGINNING; THENCE NORTH 52 DEGREES 21 MINUTES 00 SECONDS EAST 1343.89 FEET TO A POINT; THENCE SOUTH 37 DEGREES 39 MINUTES 00 SECONDS EAST 53 1645.23 FEET TO A POINT IN THE CENTERLINE OF ILLINOIS ROUTE 34; THENCE SOUTH 46 DEGREES 33 MINUTES 17 SECONDS WEST 1350.80 FEET ALONG SAID CENTERLINE OF ILLINOIS ROUTE 34 TO THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 1781.63 FEET ALONG SAID CENTERLINE OF BRISTOL ROAD TO THE POINT OF BEGINNING. ALSO: THAT PART OF SECTIONS FOURTEEN (14) AND TWENTY-THREE (23), ALL IN TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE SEVEN (7) EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERLY CORNER OF STRUKEL' S PARADISE LAKE UNIT NO. 1, (SAID POINT ALSO BEING THE INTERSECTION OF THE CENTERLINE OF BRISTOL ROAD AND THE CENTERLINE OF KENNEDY ROAD), AS SHOWN ON THE SUBDIVISION PLAT OF STRUKEL'S PARADISE LAKE UNIT NO, 1, RECORDED AS DOCUMENT #71-215; THENCE NORTH 60 DEGREES 17 MINUTES 26 SECONDS EAST 724.86 FEET ALONG THE CENTERLINE OF KENNEDY ROAD TO THE POINT OF CURVATURE OF A 1094.72 FOOT RADIUS CURVE TO THE LEFT; THENCE NORTHEASTERLY 631.18 FEET ALONG SAID CURVE WHOSE CHORD BEARS NORTH 43 DEGREES 46 MINUTES 24 SECONDS EAST 622.47 FEET TO THE POINT OF TANGENCY OF SAID CURVE; THENCE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 11.57 FEET ALONG SAID CENTERLINE FOR THE POINT OF BEGINNING; THENCE CONTINUE NORTH 27 DEGREES 15 MINUTES 21 SECONDS EAST 551.92 FEET ALONG SAID CENTERLINE TO A POINT; THENCE SOUTH 45 DEGREES 56 MINUTES 15 SECONDS EAST 1501.96 FEET ALONG AN EXISTING FENCE LINE TO A POINT; THENCE SOUTH 35 DEGREES 48 MINUTES 56 SECONDS EAST 2104.69 FEET ALONG SAID FENCE LINE TO A POINT IN THE CENTERLINE OF ILLINOIS ROUTE 34; THENCE SOUTH 46 DEGREES 33 MINUTES 17 SECONDS WEST 652.29 FEET ALONG SAID CENTERLINE TO A POINT; THENCE NORTH 37 DEGREES 39 MINUTES 00 SECONDS WEST 3421.68 FEET TO THE POINT OF BEGINNING. ALSO: THAT PART OF THE SOUTH HALF OF SECTION 11 AND PART OF THE NORTHWEST QUARTER OF SECTION 14, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SECTION 11; THENCE SOUTH 0 DEGREES 57 MINUTES 0 SECONDS WEST 442 FEET TO THE NORTH LINE OF THE RIGHT OF WAY OF THE CHICAGO, BURLINGTON AND QUINCY RAILROAD; THENCE NORTH 75 DEGREES 17 MINUTES 0 SECONDS EAST 1728 FEET ALONG SAID RIGHT OF WAY LINE TO THE SOUTH LINE OF SECTION 11; THENCE SOUTH 89 DEGREES 53 MINUTES 0 SECONDS EAST 1001.25 FEET ALONG THE SOUTH LINE OF SAID SECTION 11 TO THE SOUTHEAST CORNER 54 OF THE WEST HALF OF SAID SECTION 11; THENCE NORTH 89 DEGREES 54 MINUTES 0 SECONDS EAST 1339.5 FEET ALONG THE SOUTH LINE OF SAID SECTION 1 I TO THE SOUTHEAST CORNER OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 11; THENCE NORTH 0 DEGREES 40 MINUTES 0 SECONDS EAST 977.5 FEET TO THE CENTERLINE OF THE HIGHWAY; THENCE NORTH 74 DEGREES 15 MINUTES 0 SECONDS WEST 727.2 FEET ALONG SAID CENTERLINE; THENCE NORTH 79 DEGREES 10 MINUTES 0 SECONDS WEST 2877.4 FEET ALONG SAID CENTERLINE TO THE CENTERLINE OF A NORTH AND SOUTH HIGHWAY; THENCE SOUTH 7 DEGREES 7 MINUTES 0 SECONDS EAST 364.8 FEET ALONG THE CENTER OF SAID NORTH AND SOUTH HIGHWAY; THENCE NORTH 89 DEGREES 47 MINUTES 0 SECONDS WEST 503.33 FEET TO THE WEST LINE OF SAID SECTION 11; THENCE SOUTH 0 DEGREES 52 MINUTES 0 SECONDS WEST ALONG SAID WEST LINE 1327.6 FEET TO THE POINT OF BEGINNING; EXCEPT THAT PART LYING NORTHERLY OF THE SOUTHERLY RIGHT OF WAY LINE OF THE CHICAGO, BURLINGTON AND QUINCY RAILROAD AFORESAID IN THE TOWNSHIP OF BRISTOL, KENDALL COUNTY, ILLINOIS. 55 EXHIBIT B FORM OF BOND "), New York, New York, has delivered its municipal bond insurance policy (the "Policy") with respect to the scheduled payments due of principal of and interest on this Bond to U.S. Bank Trust Company, National Association, Chicago, Illinois, or its successor, as trustee for the Bonds (the "Trustee "). Said Policy is on file and available for inspection at the principal office of the Trustee and a copy thereof may be obtained from or the Trustee. All payments required to be made under the Policy shall be made in accordance with the provisions thereof. By its purchase of these Bonds, the owner acknowledges and consents (i) to the subrogation and a[] other rights of _ as more fully set forth in the Policy and (ii) that upon the occurrence and continuance of a default or an event of default under the Indenture or this Bond, _ shall be deemed to be the sole owner of the Bonds for all purposes and shall be entitled to control and direct the enforcement of all rights and remedies granted to the owners of the Bonds or the trustee. paying agent, registrar or similar agent for the benefit of such owners under the Indenture, at law or in equity. UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF KENDALL UNITED CITY OF YORKVILLE SPECIAL SERVICE AREA NUMBER 2004-104 SPECIAL TAX REFUNDING BOND, SERIES 2025 (GRANDE RESERVE PROJECT) Bond No.: R-_ Principal Amount: $ Date of Bond: December _, 2025 Interest Rate: ^% CUSIP: Date of Maturity: March 1, 20_ Registered Owner: Cede & Co. The United City of Yorkville, Kendall County, Illinois (the "City"), for value received, promises to pay to the Registered Owner specified above or registered assigns, upon presentation and surrender of this bond at the office of U.S. Bank Trust Company, National Association, Chicago, Illinois, as Trustee (the "Trustee"), the Principal Amount of this bond specified above on the Date of Maturity specified above and to pay the Registered Owner of this bond interest on that sum at the Interest Rate per year specified above from the Date of Bond specified above to the Date of Maturity specified above, payable semiannually on March l and September 1, with the first interest payment date being March 1, 2026. Interest shall be computed on the basis of a 360 day year of twelve 30 days months. Interest on this bond shall be payable on each interest payment date by check or draft of the Trustee mailed to the person in whose name this bond is registered at the close of business on the 15th day of the month preceding such interest payment date. During such time as this bond is registered so as to participate in a securities depository system with The Depository Trust Company ("DTC"), principal of and interest on this Bond shall be payable by wire transfer pursuant to instructions from DTC. The principal of, interest on and redemption premium on this bond are payable in lawful money of the United States of America. No interest shall accrue on this bond after its Date of Maturity unless this bond shall have been presented for payment at maturity and shall not then have been paid. This bond is one of an authorized issue of bonds in the aggregate principal amount of $ This bond and the issue of which it is a part (together, the "Series 2025 Bonds ") are issued pursuant to the provisions of the "Special Service Area Tax Law," 35 ILCS §200/27 5, et seq., as amended, and the provisions of the Local Government Debt Reform Act, 30 ILCS §350/1, W et seq., as amended, and the principal of and interest on the Series 2025 Bonds are payable from special taxes designated as Special Taxes (the "Special Taxes") levied on all taxable real property within the United City of Yorkville Special Service Area Number 2004-104 (the "Special Service Area ") pursuant to a special tax roll. The Series 2025 Bonds are being issued for the purpose of paying a portion of refunding certain special service area bonds of the City, all as more fully described in an ordinance adopted by the Mayor and City Council of the City on November 25, 2025 as supplemented by a Bond Order executed pursuant thereto (collectively, the "Bond Ordinance") and a Trust Indenture dated as of December 1, 2025 between the City and the Trustee (the "Indenture "), to all the provisions of which the holder by the acceptance of this bond assents. Terms not otherwise defined herein shall have the meanings ascribed to such terms in the Indenture. The Series 2025 Bonds, together with the interest thereon, are limited obligations of the City, payable solely from the collection of the Special Taxes and other moneys deposited in certain Funds and Accounts established pursuant to the Indenture. For the prompt payment of the principal of and interest on this bond the Special Taxes are hereby irrevocably pledged. THE SERIES 2025 BONDS DO NOT CONSTITUTE GENERAL OBLIGATIONS OF THE CITY AND NEITHER THE FULL FAITH AND CREDIT NOR THE UNLIMITED TAXING POWER OF THE CITY SHALL BE PLEDGED AS SECURITY FOR THE PAYMENT OF THE SERIES 2025 BONDS. The Series 2025 Bonds maturing on and after March 1, 20_ are subject to optional redemption prior to maturity at the option of the City, in whole or in part, on any date on or after March 1, 20 , at a redemption price equal to the principal amount of the Bonds to be redeemed, plus accrued and unpaid interest to the date of redemption. Any optional redemption of Series 2025 Bonds shall be applied to the extent possible, to reduce pro rata the amount maturing pursuant to the Indenture, and so as to maintain the proportion of principal maturing in each year to the total original principal amount of Series 2025 Bonds. The Series 2025 Bonds are also subject to mandatory redemption on any interest payment date, in part, at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from amounts in the Bond and Interest Fund consisting of the proceeds received by the City in connection with a condemnation of any of the special services or any other property owned by or dedicated to the City within the Special Service Area and allocable to the Series 2025 Bonds as determined by the Consultant and which proceeds are not used by the City to rebuild the Special Services. The Series 2025 Bonds are also subject to mandatory redemption on any March 1, June 1, September 1 or December 1, in part, from amounts available for disbursement from the Special Redemption Account and from amounts transferred from the Reserve Fund and the Special Reserve Fund to the Special Redemption Account in connection with optional prepayments of the Special Taxes, at a redemption price (expressed as a percentage of the principal amount of the Series 2025 Bonds to be redeemed), as set forth below, together with accrued interest on such Series 2025 Bonds to the date fixed for redemption: 57 Redemption Redemption Dates Prices Any mandatory redemption of the Series 2025 Bonds in part from proceeds from condemnation or prepayments of the Special Taxes shall be applied to reduce pro rata the amount of Series 2025 Bonds maturing pursuant to the Indenture, and so as to maintain the proportion of principal maturing in each year to the total original principal amount of Series 2025 Bonds. If less than all the Series 2025 Bonds of any maturity are to be redeemed on any redemption date by mandatory or optional redemption, written notice shall be given to the Trustee as provided in the Indenture. The Bond Registrar named below will assign to each Series 2025 Bond of the maturity to be redeemed a distinctive number for each $1,000 of principal amount of that Series 2025 Bond. The Bond Registrar will then select by lot from the numbers so assigned, using such method as it shall deem proper in its discretion, as many numbers as, at $1,000 per number, shall equal the principal amount of Series 2025 Bonds of that maturity to be redeemed; provided that following any redemption, no Series 2025 Bonds shall be outstanding in an amount less than the minimum Authorized Denomination except to effect a special mandatory redemption from optional prepayments when the total aggregate principal amount of Bonds outstanding is $5,000 or less. Notice of the redemption of any Series 2025 Bonds, which by their terms shall have become subject to redemption, will be given to the registered owner of each Series 2025 Bond called for redemption in whole or in part not less than 30 or more than 60 days before any date established for redemption of Series 2025 Bonds, by the Bond Registrar, on behalf of the City, by registered or certified mail sent to the registered owner's last address, if any, appearing on the registration books kept by the Bond Registrar. All notices of redemption shall include at least the designation, date and maturities of Series 2025 Bonds called for redemption, CUSIP Numbers, if available, and the date of redemption. In the case of a Series 2025 Bond to be redeemed in part only, the notice will also specify the portion of the principal amount of the Series 2025 Bond to be redeemed. The mailing of the notice specified above to the registered owner of any Series 2025 Bond will be a condition precedent to the redemption of that Series 2025 Bond, provided that any notice which is mailed in accordance with the Indenture will be conclusively presumed to have been duly given whether or not the owner received that notice. The failure to mail notice to the owner of any Series 2025 Bond, or any defect in that notice, shall not affect the validity of the redemption of any other Series 2025 Bonds. With respect to an optional redemption of any Series 2025 Bonds, unless moneys sufficient to pay the principal of, redemption premium, if any, and interest on the Series 2025 Bonds to be redeemed shall have been received by the Trustee prior to the giving of such notice of redemption, such notice may, at the option of the City, state that said redemption shall be conditional upon the receipt of such moneys by the Trustee on or prior to the date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Series 2025 Bonds and the Trustee shall give notice, in the same manner in which the notice of redemption 58 was given, that such moneys were not so received and that such Series 2025 Bonds will not be redeemed. This bond is negotiable, subject to the following provisions for registration and registration of transfer. The City maintains books for the registration and registration of transfer of Series 2025 Bonds at the office of the Trustee, as Bond Registrar. This bond is fully registered on those books in the name of its owner, as to both principal and interest, and transfer of this bond may be registered on those books upon surrender of this bond to the Bond Registrar by the registered owner or his or her attorney duly authorized in writing together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his or her duly authorized attorney. Upon surrender of this bond for registration of transfer, a new bond or bonds in the same aggregate principal amount and of the same maturity will be issued to the transferee as provided in the Indenture. This bond may be exchanged, at the option of the Registered Owner, for an equal aggregate principal amount of bonds of the same maturity of any other Authorized Denominations, upon surrender of this bond at the office of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the Registered Owner or his or her duly authorized attorney. For every exchange or registration of transfer of this bond, the City or the Bond Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge, other than one imposed by the City, required to be paid with respect to that exchange or registration of transfer, and payment of that charge by the person requesting exchange or registration of transfer shall be a condition precedent to that exchange or registration of transfer. No other charge may be made by the City or the Bond Registrar as a condition precedent to exchange or registration of transfer of this bond. The Bond Registrar shall not be required to exchange or register the transfer of any Series 2025 Bond following the close of business on the 15t" day of the month preceding any interest payment date on such Series 2025 Bond, nor to transfer or exchange any Series 2025 Bond after notice calling such Series 2025 Bond for redemption has been mailed, nor during a period of 15 days next preceding mailing of a notice of redemption of any Series 2025 Bonds. The City, the Trustee and the Bond Registrar may deem and treat the registered owner of this bond as its absolute owner, whether or not this bond is overdue, for the purpose of receiving payment of the principal of or interest on this bond and for all other purposes, and neither the City, the Bond Registrar nor the Trustee shall be affected by any notice to the contrary. Payment of the principal of and interest on this bond shall be made only to its registered owner, and all such payments shall be valid and effective to satisfy the obligation of the City on this bond to the extent of the amount paid. All conditions which by law must have existed or must have been fulfilled in the issuance of this bond existed and were fulfilled in compliance with law. Provision has been made for the levy, collection and segregation of Special Taxes sufficient to pay and discharge the principal of this bond at maturity and to pay interest on this bond as it falls due. The issuance of the Series 59 2025 Bonds by the City will not cause the City to exceed or violate any applicable limitation or condition respecting the issuance of bonds imposed by the law of the State of Illinois or by any Indenture, ordinance or resolution of the City. The Series 2025 Bonds are issued for purposes for which the City is authorized by law to issue bonds including but not limited to finance or refinance a portion of the costs of the special services to be provided to the Special Service Area, making deposits to a reserve fund, administrative expense fund and paying costs of the City in connection with the issuance of the Series 2025 Bonds. This bond shall not be valid for any purpose unless and until the certificate of authentication on this bond shall have been duly executed by the Trustee. [SIGNATURE PAGE TO FOLLOW] 60 IN WITNESS WHEREOF, the United City of Yorkville, Kendall County, Illinois, by its Mayor and City Council, has caused this bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk and has caused its corporate seal to be affixed to this bond (or a facsimile of its seal to be printed on this bond), all as of the Date of Bond specified above. [SEAL] Attest: City Clerk UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS Cif Mayor CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the Indenture authorizing the issuance of $ United City of Yorkville, Kendall County, Illinois Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project). U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee By: Authorized Signatory 62 FORM OF ASSIGNMENT For Value Received, the undersigned sells, assigns and transfers to bond and all rights and title under this bond, and irrevocably constitutes and appoints attorney to transfer this bond on the books kept for registration of this bond. Dated: 63 this EXHIBIT C FORM OF SATISFACTION OF TAX LIEN This Document was prepared by Croke Fairchild Duarte & Beres LLC and after recording return to: U.S. Bank Trust Company, National Association 190 South LaSalle Street Chicago, IL 60603 (The Above Space For Recorder's Use Only) SATISFACTION OF TAX LIEN The undersigned duly elected and acting Mayor of the United City of Yorkville, Kendall County, Illinois (the "City"), in consideration of the receipt of the sum of $ , hereby acknowledges and certifies that special taxes levied and to be extended in accordance with the Special Tax Roll approved by the Mayor and City Council of the City pursuant to Ordinance No. 2004-49 adopted on September 14, 2004, as amended by Ordinance Number 2004-60 adopted on October 26, 2004 (the "Establishing Ordinance ") are paid and the lien of such taxes satisfied with respect to the following lots in the City's Special Service Area Number 2004-104 (the "SSA") legally described on Exhibit A attached hereto: Lot PIN The undersigned further certifies that pursuant to Exhibit B to the United City of Yorkville Special Service Area Number 2004-104 Special Tax Roll and Report which is incorporated in the Establishing Ordinance as Exhibit F (the "Special Tax Roll and Report"), upon payment of the prepayment amount as calculated pursuant to the Special Tax Roll and Report, the Consultant shall cause the satisfaction of tax lien to be recorded within 30 working days of receipt of the prepayment. Dated: 20 UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS 64 Authorized Officer Approved by: Consultant The Trustee hereby acknowledges receipt of the sum of $ U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee In 65 STATE OF ILLINOIS ) ) SS. COUNTY OF KENDALL } I, , a Notary Public in and for such County and State aforesaid, do hereby certify that , personally known to me to be the of the United City of Yorkville, Kendall County, Illinois, whose name is subscribed to the foregoing Satisfaction, appeared before me this day in person and acknowledged that as such officer he signed and delivered the foregoing Satisfaction as such officer of the United City of Yorkville, Kendall County, Illinois, as his free and voluntary act, and as the free and voluntary act and deed of such City, for the uses and purposes therein set forth. Given under my hand and notarial seal, this _ day of , 20^ Notary Public Commission expires _, 20_ EXHIBIT D FORM OF COSTS OF ISSUANCE DISBURSEMENT REQUEST TO: U.S. Bank Trust Company, National Association 190 South LaSalle Street Chicago, IL 60603 RE: $ United City of Yorkville, Kendall County, Illinois Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project) Amount Requested: Total Disbursements to Date: 1. Each obligation for which a disbursement is hereby requested is described in reasonable detail in Schedule I hereto together with the name and address of the person, firm, or corporation to whom payment is due and any other payment instructions. 2. The bills, invoices, or statements of account for each obligation referenced in Schedule I are attached hereto as Schcdule II. The City hereby certifies that: a. This written requisition is for payment of costs in connection with the issuance of the above -referenced Series 2025 Bonds and the specific purpose for which this request is made is described in Schedule 1. Payment instructions sufficient to make the requested payment are set forth in Schedule 1. C. No portion of the amount being requested to be disbursed was set forth in any previous request for disbursement. 4. All capitalized terms herein shall have the meanings assigned to them in the Trust Indenture for the above -referenced Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project) dated as of December 1, 2025 by and between the United City of Yorkville, Kendall County, Illinois and U.S. Bank Trust Company, National Association, as Trustee. LZA Authorized Signatory 67 Exhibit C Form of Bond Purchase Agreement (See attached) 15 UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS SPECIAL SERVICE AREA NO.2004-104 SPECIAL TAX REFUNDING BONDS (GRANDE RESERVE PROJECT), SERIES 20^ BOND PURCHASE AGREEMENT United City of Yorkville 652 Prairie Pointe Drive Yorkville, Illinois 60560 Ladies and Gentlemen: 20 The undersigned, Raymond James & Associates, Inc., Naperville, Illinois (the "Purchaser"), offers to purchase from United City of Yorkville, Kendall County, Illinois (the "Issuer"), all (but not less than all) of the $ Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 20—, of the Issuer (the "Bonds "). This offer is made subject to the Issuer's acceptance of this Bond Purchase Agreement (this "Agreement") on or before 11:59 p.m., Central Daylight Saving Time, on the date hereof. Upon the Issuer's acceptance of this offer, it will be binding upon the Issuer and upon the Purchaser. 1. Upon the terms and conditions and upon the basis of the representations set forth herein, the Purchaser hereby agrees to purchase from the issuer, and the Issuer hereby agrees to sell and deliver to the Purchaser, the Bonds. Exhibit A, which is incorporated by reference into this Agreement, contains a brief description of the Bonds, the manner of their issuance, the purchase price to be paid and the date of delivery and payment therefor (the "Closing" or "Closing Date "). 2. (a) Concurrently with the execution hereof, the Issuer will approve an Official Statement (the "Official Statement") in substantially the form of the Preliminary Official Statement of the Issuer, dated December , 2025, relating to the Bonds (the "Preliminary Official Statement") with such changes from the Preliminary Official Statement as the Purchaser and the Issuer shall approve, and will deliver an ordinance adopted by the City Council of the Issuer (the "City Council") on the 25th day of November, 2025 (the "Bond Ordinance "), and a related Bond Order (the "Bond Order"), satisfactory in form and substance to the Purchaser. The Bonds are being issued pursuant to (i) Ordinance No. 2004-49, adopted by the City Council on the 14th day of September, 2004, as amended by Ordinance No. 2004-60, adopted by the City Council on October 26, 2004 (together, the "Establishing Ordinance "), (ii) the Bond Ordinance, as amended by the Bond Order and (iii) a Trust Indenture (the "Trust Indenture"), dated as of December 1, 2025, between the Issuer and U.S. Bank Trust Company, National Association, Chicago, Illinois, as trustee (the "Trustee ") (the Establishing Ordinance, the Bond Ordinance, the Bond Order and the Trust Indenture being collectively referred to herein as the "Authorization Documents "). The United City of Yorkville - Bond Purchase Agreement 4904-8586-7131 v2 10001906 Purchaser is authorized by the Issuer to use the Authorization Documents and the information contained in them in connection with the public offering and sale of the Bonds. The Issuer has heretofore deemed the Preliminary Official Statement to be "final" as of its date for purposes of paragraph (b)(1) of Rule 15c2-12 ("Rule 15c2-12") of the Securities and Exchange Commission (the "Commission") under the Securities Exchange Act of 1934, as amended (the "Exchange Act "). The Issuer hereby agrees to provide to the Purchaser within seven business days of the date hereof sufficient copies of the Official Statement to enable the Purchaser to comply with the requirements of paragraph (b)(4) of Rule 15c2-12 and Rule G-32 of the Municipal Securities Rulemaking Board. (b) The Issuer hereby covenants and agrees to enter into a written agreement or contract, constituting an undertaking (the "Undertaking") to provide ongoing disclosure about the Issuer, for the benefit of the beneficial owners of the Bonds on or before the date of delivery of the Bonds as required under paragraph (b)(5) of Rule 15c2-12. The Undertaking shall be as described in the Preliminary Official Statement, with such changes as may be agreed to in writing by the Purchaser. Except as noted in the Official Statement, there have been no instances in the previous five years in which the Issuer has failed to comply, in all material respects, with each and every undertaking previously entered into by it pursuant to Rule 15c2-12. 3. The Issuer represents and covenants to the Purchaser that: (a) the Issuer is duly created and existing under the Constitution and laws of the State of Illinois (the "State") and has and will have at the Closing the power and authority to, as the case may be, adopt, enter into and perform this Agreement, the Authorization Documents, the Tax Certificate (as hereinafter defined), the Administrative Services Agreement (as hereinafter defined), the Undertaking and all other agreements and certificates executed and delivered in connection with the issuance and sale of the Bonds (collectively, the "Legal Documents "), to issue, deliver and sell the Bonds to the Purchaser and to carry out and consummate the transactions contemplated by the Authorization Documents, including the Undertaking; (b) the Legal Documents and the Bonds do not and will not conflict with or create a breach or default under any existing law, regulation, order or agreement to which the Issuer is subject or by which it is bound; (c) no governmental approval or authorization other than the Authorization Documents is required in connection with the sale of the Bonds to the Purchaser; (d) this Agreement is, and this Agreement, the Trust Indenture and the Bonds will be at the time of the Closing, the legal, valid and binding obligation of the Issuer enforceable in accordance with their respective terms, subject only to applicable bankruptcy, insolvency or other similar laws generally affecting creditors' rights and subject to the exercise of judicial discretion; (e) the information in the Preliminary Official Statement (except as changed by the Official Statement) was, and in the Official Statement is, true and correct in all material -2- respects and did not and does not omit any statement or information required to be stated therein or which is necessary to make the statements and information contained therein not misleading in any material respect; (f) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, pending or, to the knowledge of the Issuer, threatened against or affecting the Issuer in any material respect or affecting the corporate existence of the Issuer, the titles of its officers to their respective offices or the boundaries of the Issuer, or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or in any way contesting or affecting the transactions contemplated hereby or the validity or enforceability of the Bonds or the Legal Documents, including this Agreement, or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement, or contesting the powers of the Issuer or any authority for the issuance of the Bonds, the adoption of the Bond Ordinance or the execution and the delivery of this Agreement; (g) the Issuer is not in default on any material contractual or financial obligation, including the punctual payment of principal and interest on indebtedness, and the Issuer is not in breach of or in default under any existing law, court or administrative regulation, decree or order, ordinance, resolution, agreement, indenture, mortgage, lease, sublease or other instrument to which the Issuer is a party or by which the Issuer or its property is or may be bound, and no event has occurred or is continuing that, with the passage of time or the giving of notice, or both, would constitute a default or an event of default thereunder, in either case, in any manner or to any extent that could have a material adverse effect on the financial condition of the Issuer, the operations of the Issuer or the transactions contemplated by this Agreement and the Official Statement, or have an adverse effect on the validity or enforceability in accordance with the respective terms of the Bonds or the Legal Documents or in any way adversely affect the existence or powers of the Issuer or the excludability from gross income for federal income tax purposes of interest on the Bonds; (h) the Issuer's audited general purpose financial statements as of and for the fiscal year ended April 30, 2025, are a fair presentation of the financial position of the Issuer as of the date indicated and the results of its operations and changes in its fund balances for the periods specified. Since April 30, 2025, there has been no material adverse change in the condition, financial or otherwise, of the Issuer from that set forth in the audited financial statements as of and for the period ended that date, except as disclosed in the Official Statement; and the Issuer has not since April 30, 2025, incurred any material liabilities, directly or indirectly, except in the ordinary course of its operations or as disclosed in the Official Statement; (i) the Issuer will not take or omit to take any action that will in any way cause the proceeds from the sale of the Bonds to be applied or results in such proceeds being applied in a manner other than as provided in the Bond Ordinance or the Trust Indenture; -3- 0) each representation, warranty or agreement stated in any certificate signed by any officer of the Issuer and delivered to the Purchaser in connection with the transactions contemplated by the Bond Ordinance, the Trust Indenture and this Agreement, at or before the Closing, shall constitute a representation, warranty or agreement by the Issuer upon which the Purchaser shall be entitled to rely; and (k) if between the date of this Agreement and 25 days following the End of the Underwriting Period (as hereinafter defined) any event shall occur which, in the Issuer's opinion, might or would cause the Official Statement to contain any untrue statement of a material fact or to omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Issuer shall notify the Purchaser, and if, in the opinion of the Purchaser, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Issuer will supplement or amend the Official Statement in a form and in a manner approved by the Purchaser; any approval by the Purchaser of such supplement or amendment to the Official Statement prior to the Closing shall not preclude the Purchaser from thereafter terminating this Agreement, and if the Official Statement is amended or supplemented subsequent to the date hereof, the Purchaser may terminate this Agreement by notification to the Issuer at any time prior to the Closing if, in the reasonable judgment of the Purchaser, such amendment or supplement has or will have a material adverse effect on the marketability of the Bonds. For purposes of this Agreement, "End of the Underwriting Period" means the later of (A) the Closing or (B) the date on which the Purchaser no longer retains an unsold balance of the Bonds, provided, however, that, unless otherwise advised by the Purchaser in writing on or prior to the Closing, the End of the Underwriting Period shall be the Closing. 4. At the Closing, the Issuer will deliver or make available to the Purchaser: (a) The Bonds, in definitive form, duly executed and bearing proper CUSIP numbers; (b) Certified copies of the Establishing Ordinance and the Bond Ordinance and a fully executed copy of the Bond Order; (c) A fully executed copy of the Trust Indenture; (d) A fully executed copy of the Administrative Services Agreement, dated 2025, between the Issuer and DTA (the "Administrative Services Agreement (e) A fully executed copy of the Tax Certificate as to Arbitrage and Compliance with Provisions of Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code "), dated the Closing Date, executed by the Issuer and the Trustee, related to the Bonds (the "Tax Certificate "); (f) A fully executed copy of the Undertaking; -4- (g) A copy of the Special Tax Roll and Report for SSA Number 2004-104 in substantially the form attached to the Official Statement as Exhibit C (the "Special Tax Roll and Report "); (h) A letter of the preparer of the Special Tax Roll and Report, dated the Closing Date, addressed to the Purchaser, providing such preparer's consent to the inclusion of the Special Tax Roll and Report in the Official Statement; (i) A copy of the executed Information Return for Tax -Exempt Governmental Obligations, Form 8038-G; 0) The approving opinion of Croke Fairchild Duarte & Beres, Chicago, Illinois, Bond Counsel ( "Bond Counsel "), in substantially the form set forth in Appendix E to the Official Statement, dated the Closing Date, relating to the legality of, and federal tax treatment of interest on, the Bonds, and either addressed to the Purchaser or with a letter authorizing the Purchaser to rely thereon; (k) The supplemental opinion of Bond Counsel, dated the Closing Date and addressed to the Purchaser, satisfactory to the Purchaser in its reasonable discretion, substantially in the form set forth in Exhibit B hereto; (1) The opinion of Ottosen DiNolfo Hasenbalg & Castaldo, Ltd., counsel to the Issuer, dated the Closing Date and addressed to the Purchaser, satisfactory to the Purchaser in its reasonable discretion, substantially in the form set forth in Exhibit C hereto; (m) The opinion of Chapman and Cutler LLP, Chicago, Illinois ("Underwriter's Counsel "), in form and substance satisfactory to the Purchaser addressing such matters as the Purchaser shall reasonably request; (n) A Municipal Bond New Issue Insurance Policy (the "Insurance Policy") of (the "Bond Insurer ") insuring the Bonds; (o) Evidence satisfactory to the Purchaser that the Insurance Policy with respect to the Bonds issued by the Bond Insurer is in full force and effect and all conditions precedent to the issuance thereof have been satisfied and all premiums due and payable thereon on the date of Closing have been paid; (p) A certificate from the Bond Insurer and an opinion from counsel to the Bond Insurer with respect to the valid issuance and effectiveness of the Insurance Policy and to the accuracy and completeness of the Official Statement as to the Bond Insurer and the Insurance Policy; (q) A letter of representations to DTC, in the form executed by the Issuer; (r) Evidence satisfactory to the Purchaser that the Bonds have an insured rating of " by based on the Insurance Policy issued by the Insurer; -5- (s) A closing certificate of an authorized officer of the Issuer, dated the Closing Date, in form and substance reasonably satisfactory to the Purchaser and addressing such matters as the Purchaser may reasonably request including, but not limited to, representations that (i) there is no proceeding contesting the legality of the Bonds, the Authorization Documents, or the Special Tax Roll and Report or any of the proceedings pursuant to which the Establishing Ordinance and the Bond Ordinance were authorized, (ii) the Legal Documents have been duly authorized and executed and are in full force and effect, (iii) the Official Statement is true and correct in all material respects and does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (iv) there have been no instances in the previous five years in which the Issuer failed to comply, in all material respects, with any undertaking previously entered into by it pursuant to Rule 15c2-12, except as noted in the Official Statement and (v) that the representations of the Issuer contained in this Agreement are true and correct when made and as of the Closing; (t) A certificate of an authorized officer of the Trustee acceptable in form and substance to the Purchaser; (u) Any certificate required to be furnished by any Legal Document required to be obtained or furnished by the issuer at or prior to Closing; and (v) Such additional certificates, instruments and other documents (including, without limitation, those set forth on ExhibitA hereto) as the Purchaser may deem necessary with respect to the issuance and sale of the Bonds, all in form and substance satisfactory to the Purchaser. 5. (a) The Purchaser agrees to assist the Issuer in establishing the issue price of the Bonds and shall execute and deliver to the Issuer at Closing an "issue price" or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit E, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Purchaser, the Issuer and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the Public of the Bonds. All actions to be taken by the Issuer under this section to establish the issue price of the Bonds may be taken on behalf of the Issuer by the Issuer's municipal advisor identified herein and any notice or report to be provided to the Issuer may be provided to the Issuer's municipal advisor. (b) Except as otherwise set forth in Exhibit attached hereto, the Issuer will treat the first price at which 10% of each maturity of the Bonds (the "10% Test") is sold to the Public as the issue price of that maturity. At or promptly after the execution of this Agreement, the Purchaser shall report to the Issuer the price or prices at which it has sold to the Public each maturity of Bonds. If at that time the 10% Test has not been satisfied as to any maturity of the Bonds, the Purchaser agrees to promptly report to the Issuer the prices at which it sells the unsold Bonds of that maturity to the Public. That reporting obligation shall continue until either (i) the Purchaser has sold all Bonds of that maturity or (ii) the 10% Test has been satisfied as to the Bonds of that maturity, provided that, the Purchaser's reporting obligation after Closing may be at reasonable M periodic intervals or otherwise upon the request of the Issuer or Bond Counsel. For purposes of this section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds. [Include Hold the price column in Exhibit A and subsection (c) hereof only if the Purchaser agrees to apply the hold -the -offering -price rule, as described below.] (c) The Purchaser confirms that it has offered the Bonds to the Public on or before the date of this Agreement at the offering price or prices (the "Initial Offering Price "), or at the corresponding yield or yields, set forth in Exhibit A, except as otherwise set forth therein. Exhibit A also sets forth, as of the date of this Agreement, the maturities, if any, of the Bonds for which the 10% Test has not been satisfied and for which the Issuer and the Purchaser agree that the restrictions set forth in the next sentence shall apply, which will allow the Issuer to treat the Initial Offering Price to the Public of each such maturity as of the Sale Date as the issue price of that maturity (the "Hold -the -Offering -Price Rule "). So long as the Hold -the -Offering -Price Rule remains applicable to any maturity of the Bonds, the Purchaser will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the Initial Offering Price to the Public during the period starting on the Sale Date and ending on the earlier of the following: (1) the close of the fifth business day after the Sale Date; or (2) the date on which the Purchaser has sold at least 10% of that maturity of the Bonds to the Public at a price that is no higher than the Initial Offering Price to the Public. The Purchaser will advise the Issuer promptly after the close of the fifth (5th) business day after the Sale Date whether it has sold 10% of that maturity of the Bonds to the Public at a price that is no higher than the Initial Offering Price to the Public. (d) The Purchaser confirms that: (i) any selling group agreement and any third -party distribution agreement relating to the initial sale of the Bonds to the Public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker -dealer that is a party to such third -party distribution agreement, as applicable (A) (i) to report the prices at which it sells to the Public the unsold Bonds of each maturity allocated to it, whether or not the Closing has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Purchaser that the 10% Test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing may be at reasonable periodic intervals or otherwise upon request of the Purchaser and (ii) to comply with the Hold -the -Offering -Price Rule, if applicable, if and for so long as directed by the Purchaser, (B) to promptly notify the Purchaser of any sales of Bonds that, to its knowledge, are made to a purchaser who is a Related Party to an Underwriter participating in the initial sale of the Bonds to the Public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker -dealer, the Purchaser shall assume that each order submitted by the dealer or broker -dealer is a sale to the Public. -7- (ii) any selling group agreement relating to the initial sale of the Bonds to the Public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third -party distribution agreement to be employed in connection with the initial sale of the Bonds to the Public to require each broker -dealer that is a party to such third -party distribution agreement to (A) report the prices at which it sells to the Public the unsold Bonds of each maturity allocated to it, whether or not the Closing has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Purchaser or the dealer that the 10% Test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing may be at reasonable periodic intervals or otherwise upon request of the Purchaser or the dealer, and (B) comply with the Hold -the -Offering -Price Rule, if applicable, if and for so long as directed by the Purchaser or the dealer and as set forth in the related pricing wires. (e) The Issuer acknowledges that, in making the representations set forth in this section, the Purchaser will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the Public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third -party distribution agreement was employed in connection with the initial sale of the Bonds to the Public, the agreement of each broker -dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule, if applicable to the Bonds, as set forth in the third -party distribution agreement and the related pricing wires. The Issuer further acknowledges that the Purchaser shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker -dealer that is a party to a third -party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule if applicable to the Bonds. (f) The Purchaser acknowledges that sales of any Bonds to any person that is a Related Party to an Underwriter participating in the initial sale of the Bonds to the Public (each such term being used as defined below) shall not constitute sales to the Public for purposes of this section. Further, for purposes of this section: (i) "Public " means any person other than an Underwriter or a Related Party, (ii) a purchaser of any of the Bonds is a "Related Party " to an Underwriter if the Underwriter and such purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a -8- corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), (iii) "Sale Date " means the date of execution of this Agreement by all parties, and (iv) "Underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer (or with the Purchaser to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, including the Purchaser, and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a third -party distribution agreement participating in the initial sale of the Bonds to the Public). b. The fees and disbursements of counsel to the Issuer, Bond Counsel, Underwriter's Counsel, the financial advisor, the cost of preparing and printing the Bonds, the cost of obtaining any ratings in connection with the issuance of the Bonds, including rating agency fees, the fees of the bond registrar and paying agent for the Bonds, the cost of printing and mailing the Preliminary Official Statement and the Official Statement and miscellaneous expenses of the Issuer incurred in connection with the offering and delivery of the Bonds, including the assignment of CUSIP identification numbers, shall all be the obligation of the Issuer. The obligation of the Issuer to pay the above -described fees and expenses shall survive the termination of this Agreement or the failure to consummate the transactions described herein. 7. This Agreement is intended to benefit only the parties hereto, and the Issuer's representations and warranties shall survive any investigation made by or for the Purchaser, delivery and payment for the Bonds and the termination of this Agreement. 8. The Issuer acknowledges and agrees that (a) the purchase and sale of the Bonds pursuant to this Agreement is an arm's-length commercial transaction between the Issuer and the Purchaser, (b) in connection with such transaction, the Purchaser is acting solely as a principal and not as an agent or a fiduciary of the Issuer; (c) the Purchaser has not assumed a fiduciary responsibility in favor of the Issuer with respect to the offering of the Bonds or the process leading thereto (whether or not the Purchaser, or any affiliate of the Purchaser, has advised or is currently advising the Issuer on other matters) nor has it assumed any other obligation to the Issuer except the obligations expressly set forth in this Agreement, (iv) the Purchaser has financial and other interests that differ from those of the Issuer; and (v) the Issuer has consulted with its own legal and financial advisors to the extent it deemed appropriate in connection with the offering of the Bonds. 9. The Purchaser shall have the right to cancel its obligation to purchase the Bonds, without liability to the Purchaser, by written notice to the Issuer if, between the date of this ME Agreement and the Closing, in the Purchaser's sole and reasonable judgement any of the following events shall occur: (a) the marketability of the Bonds or the market price thereof, in the opinion of the Purchaser, has been materially or adversely affected by disruptive events, occurrences or conditions in the securities or debt markets, or the marketability of the Bonds or the market price thereof, or the ability of the Purchaser to enforce contracts for the sale of the Bonds, shall be materially adversely affected by any of the following events: (i) legislation shall be enacted by or introduced in the Congress of the United States (the "Congress") or recommended to the Congress for passage by the President of the United States, or the Treasury Department of the United States or the Internal Revenue Service or any member of the Congress or favorably reported for passage to either House of the Congress by any committee of such House to which such legislation has been referred for consideration, a decision by a court of the United States or of the State or the United States Tax Court shall be rendered, or an order, ruling, regulation (final, temporary or proposed), press release, statement or other form of notice by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be made or proposed, the effect of any or all of which would be to impose, directly or indirectly, federal income taxation upon interest received on obligations of the general character of the Bonds as described in the Official Statement, or other action or events shall have transpired which may have the purpose or effect, directly or indirectly, of changing the federal income tax consequences of any of the transactions contemplated herein; (ii) there shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; (iii) a general suspension of trading on the New York Stock Exchange or other major exchange shall be in force, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of the Commission or any other governmental authority having jurisdiction; (iv) legislation shall be introduced in or enacted (or resolution passed) by the Congress or an order, decree or injunction shall be issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary, or proposed), press release or other form of notice shall be issued or made by or on behalf of the Commission, or any other governmental agency having jurisdiction over the subject matter, to the effect that obligations of the general character of the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended M (the "Securities Act "), or that the Bond Ordinance or the Trust Indenture are not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended (the "Trust Indenture Act"), or that the issuance, offering or sale of obligations of the general character of the Bonds, including any or all underlying arrangements, as contemplated hereby or by the Official Statement or otherwise, is or would be in violation of the federal securities law as amended and then in effect; or (v) there shall have occurred since the date of this Agreement any materially adverse change in the affairs or financial condition of the Issuer. (b) there shall have occurred or any notice shall have been given of any intended downgrading, suspension, withdrawal or negative change in credit watch status by any national rating service to any of the Issuer's obligations or any rating of the Bond Insurer; (c) a decision by a court of the United States shall be rendered, or a stop order, release, regulation or no -action letter by or on behalf of the Commission or any other governmental agency having jurisdiction of the subject matter shall have been issued or made, to the effect that the issuance, offering or sale of the Bonds, including the underlying obligations as contemplated by this Agreement or by the Official Statement, or any document relating to the issuance, offering or sale of the Bonds, is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act, the Exchange Act and the Trust Indenture Act; (d) any state blue sky or securities commission or other governmental agency or body shall have withheld registration, exemption or clearance of the offering of the Bonds as described herein, or issued a stop order or similar ruling relating thereto; (e) a general banking moratorium declared by federal, State of New York, or State officials authorized to do so; (f) a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; (g) the New York Stock Exchange or other national securities exchange or any governmental authority, shall impose, as to the Bonds or as to obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or the charge to the net capital requirements of, the Purchaser; (h) any amendment to the federal or State Constitution or action by any federal or state court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Issuer, its property, income securities (or interest thereon), the validity or enforceability of the assessments or the levy of taxes to pay principal of and interest on the Bonds; -ll- (i) any event occurring, or information becoming known which, in the judgment of the Purchaser, makes untrue in any material respect any statement or information contained in the Official Statement, or has the effect that the Official Statement contains any untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; 0) any fact or event shall exist or have existed that, in the judgment of the Purchaser, requires or has required an amendment of or supplement to the Official Statement; or (k) the purchase of and payment for the Bonds by the Purchaser, or the resale of the Bonds by the Purchaser, on the terms and conditions herein provided shall be prohibited by any applicable law, governmental authority, board, agency or commission. 12. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 13. This Agreement shall be governed by the laws of the State, without giving effect to conflict of laws principles. -12- Accepted on behalf of UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS Its Very truly yours, RAYMOND .TAMES & ASSOCIATES, INC., NAPERVILLE, ILLINOIS Its [SIGNATURE PAGE TO BOND PURCHASE AGREEMENT] EXHIBIT A DESCRIPTION OF BONDS a. PURCHASE PRICE: $ (representing the $ aggregate principal amount of the Bonds, plus [net] original issue premium of $ , less an underwriting discount of $ ). b. DETAILS: The Bonds shall be issued in an aggregate principal amount of $ , shall be dated the date of their issuance, and shall become due and payable serially (with option of prior redemption as set forth below) on of the years, in the amounts, bearing interest at the rates per annum and reoffered at the yields per annum as follows: INTEREST YEAR AMOUNT RATE YIELD % % HOLD -THE - OFFERING PRICE MATURITY (MARKED *) The first interest payment date on the Bonds shall be , 20_ c. FORM: The Bonds shall be delivered in the form of a separate, single, certificated, fully registered Bond for each of the maturities set forth above, and each such Bond shall be registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), all as provided in the Bond Ordinance. The Bonds shall be available at such place as is designated by the Purchaser in New York, New York, or such other place as the Purchaser and the issuer agree upon, for examination and packaging by the Purchaser at least 24 hours prior to the Closing and at the Closing shall be delivered to the Purchaser through the facilities of DTC. d. REDEMPTION: The Bonds are subject to redemption prior to maturity as set forth in the Official Statement. A-1 e. CLOSING DATE: , 20_, or such other date mutually agreed to by the Issuer and the Purchaser. f. DELIVERY: Delivery and payment shall be made at the offices of Croke Fairchild Duarte & Beres, 180 North LaSalle Street, 34th Floor Chicago, Illinois 60601, or such other place as shall have been mutually agreed upon by the issuer and the Purchaser. A-2 Exx[BiT B FIM EXHIBIT C C-1 EXHIBIT E CERTIFICATE OF PURCHASER The undersigned, on behalf of Raymond .lames & Associates, Inc., Naperville, Illinois (the "Purchaser"), hereby certifies as set forth below with respect to the sale and issuance of the $ Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 2025 (the "Bonds "), of United City of Yorkville, Kendall County, Illinois (the "Issuer "). I. General The Purchaser, as underwriter of the Bonds, and the Issuer have executed a bond purchase agreement in connection with the Bonds on the Sale Date (the "Agreement"). The Purchaser has not modified the Agreement since its execution on the Sale Date. II. Price A. General Rule Only, At Least 10% of Each Maturity Sold by Closing As of the date of this certificate, for each Maturity of the Bonds, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A (the "First Sale Price "). B. General Rule Only, Not all Maturities Sold by Closing l . As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A (the "First Sale Price "). 2. Expected first Sale Price. With respect to each of the Maturities other than the General Rule Maturities of the Bonds: (a) As of the date of this certificate, the Purchaser has not sold at least 10% of the Bonds of this Maturity at any price. (b) As of the date of this certificate, the Purchaser reasonably expects that the first sale to the Public of an amount of Bonds of this Maturity equal to 10% or more of this Maturity will be at or below the Expected Sale Price listed on the attached Schedule A (the "Expected First Sale Price "). C. All Maturities use Hold the Offering Price 1. The Purchaser offered the Bonds to the Public for purchase at the respective initial offering prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale Date. A E-1 copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B. 2. As set forth in the Agreement, the Purchaser agreed in writing that, (i) for each Maturity, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "Hold -the -Offering -Price Rule"), and (ii) any selling group agreement would contain the agreement of each dealer who is a member of the selling group, and any third -party distribution agreement would contain the agreement of each broker -dealer who is a party to the third -party distribution agreement, to comply with the Hold -the -Offering -Price Rule. 3. No Underwriter (as defined below) has offered or sold any Bonds of any Maturity at a price that is higher than the respective Initial Offering Price for that Maturity during the Holding Period. D. Some Maturities Use Hold the Offering Price I . As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A (the "First Sale Price "). 2. A. The Purchaser offered the Hold -the -Offering -Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the "Initial Offering Prices ") on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B. B. As set forth in the Agreement, the Purchaser has agreed in writing that, (i) for each Maturity of the Hold -the -Offering -Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "Hold -the -Offering -Price Rule"), and (ii) any selling group agreement would contain the agreement of each dealer who is a member of the selling group, and any third -party distribution agreement would contain the agreement of each broker -dealer who is a party to the third -party distribution agreement, to comply with the Hold - the -Offering -Price Rule. C. No Underwriter (as defined below) has offered or sold any Bonds of any Maturity of the Hold -the -Offering -Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity during the Holding Period. III. Defined Terms [ l . General Rule Maturities means those Maturities of the Bonds not listed in Schedule A hereto as the "Hold -the -Offering -Price Maturities."] [2. Hold -the -Offering -Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "Hold -the -Offering -Price Maturities."] E-2 [3. Holding Period means, with respect to a Hold -the -Offering -Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date ( , 20_), or (ii) the date on which the Purchaser has sold at least 10% of such Hold -the -Offering -Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold -the -Offering -Price Maturity.] 4. Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. 5. Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. 6. A person is a "Related Party" to an Underwriter if the Underwriter and the person are subject, directly or indirectly, to (i) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). 7. Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is S. Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the Underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, including, specifically, the Purchaser, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a third -party distribution agreement participating in the initial sale of the Bonds to the Public). IV. Credit Facility The present value of the fees paid and to be paid to for insuring the Bonds (the "Credit Facility") (using as a discount rate the expected yield on the Bonds treating the fee paid as interest on the Bonds) is less than the present value of the interest reasonably expected to be saved on the Bonds over the term of the Bonds as a result of the Credit Facility. The fees paid and to be paid for the Credit Facility does not exceed a reasonable, arm's-length charge for the transfer of credit risk. The fee does not include any payment for any direct or indirect services other than the transfer of credit risk. E-3 V. Use of Representations The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in its documents and with respect to compliance with the federal income tax rules affecting the Bonds, and by Croke Fairchild Duarte & Beres in connection with rendering its opinion that the interest on the Bands is excluded from gross income for federal income tax purposes, the preparation of Internal Revenue Service Form 8038-G, and other federal income tax advice it may give to the Issuer from time to time relating to the Bonds. IN WITNESS WHEREOF, I hereunto affix my signature, this day of , 20 RAYMOND .TAMES & ASSOCIATES, INC., NAPERVILLE, ILLINOIS By: Title: E-4 GENERAL RULE, ALL MATURITIES SOLD PRINCIPAL YEAR AMOUNT ($) 20 20 20 20 20 20 20 20 20 20 20 Total SCHEDULE A INTEREST RATE (%) GENERAL RULE, NOT ALL MATURITIES SOLD 10% NOT SOLD TO THE PUBLIC BY CLOSING IF MARKED YEAR 20 20 20 20 20 20 20 20 20 20 20 20 20 Total PRINCIPAL INTEREST AMOUNT ($) RATE (%) E-5 FIRST SALE PRICE OF AT LEAST 10% (% OF PAR) ISSUE PRICE ($) FIRST SALE EXPECTED FIRST PRICE OF AT SALE PRICE LEAST 10% OF AT LEAST 10% (% OF PAR) (% OF PAR) HOLD THE OFFER PRICE HOLD-THE- OFFERING- FIRST SALE INITIAL PRICE PRICE OF AT OFFERING MATURITY IF PRINCIPAL INTEREST LEAST 10% PRICE ISSUE MARKED YEAR AMOUNT ($) RATE (%) (% OF PAR) (% OF PAR) PRICE ($) 20 20 20 20 20 20 20 20 20 Total E-6 SCHEDULE B PRICING WIRE OR EQUIVALENT COMMUNICATION E-7 Exhibit D Form of the Preliminary Official Statement (See attached) Ro s New Issue 0 38cPGlobal � r Insured) V h � 0 0 o Preliminary Official Statement Dated December _, 2025 T fit the opinion of Croke Fairchild Duane &Beres LLC, Chicago, Illinois ("Bond Counsel "}, assuming compliance by the City with all covenants contained in the Bond a o Ordinance, interest on the Bonds is not includable in gross income for purposes of federal income taxation under existing statutes, regulations, rulings and court decisions, subject to the o condition described in "TAX EXEMPTION" herein, and interest on the Bands is not includible as an item of tax preference for purposes of the federal alternative minimum tax; however, asuch interest is taken into account in determining the annual adjusted financial statement income of applicable corporations (a defined in Section 59(k) of the Internal Revenue Code of a 1986, as amended} for the purpose of computing the alternative minimum tax imposed on applicable corporations. Under the current laws of the Stare of Illinois, interest on the Bonds is not exempt from Stare of Illinois income tales. $3,675,000* UNITED CITY OF YORKVILLE Kendall County, H inois Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 2025 o Dated Date of Delivery Book -Entry Due March 1, as Detailed Below Tbis Official Statement is being furnished in connection with the issuance of the Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), o Series 2025 (the `Bonds") by the United City of Yorkville, Kendall County, Illinois (the "City"). The Bonds are issuable only as fully registered bonds without coupons and, when °c issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). Individual purchases will be made in book -entry form only, in denominations of S5,000 or integral multiples of $1,000 in excess thereof. Beneficial Owners of the Bonds will not receive physical certificates representing their interest a a in the Bonds purchased. Principal of, premium, if any, and interest (payable on March t and September t of each year, commencing March 1, 2026) on the Bonds are payable by U.S. Bank Trust Company, National Association, Chicago, Illinois, as Trustee, to DTC, which will remit such principal, premium, if any, and interest to DTC's Participants, who in turn c° will be responsible for remitting such payments to the Beneficial Owners of the Bands, as described herein. � a 'ta AMOUNTS'", MATURITIES, INTEREST RATES, YIELDS AND CUSIP NUMBERS Principal Due Interest CUSIP Principal Due Interest CUSIP y Amount* March 1 Rate Yield Number(1) Amount* March 1 Rate Yield _Number(l) $315,000 2026 $430,000................2031 350,000 2027 450,000................ 2032 c 365,000 2028 475,000................ 2033 385,000 2029 500,OCO................2034 405,000 2030 ° w {I) CUSIP numbers appearing In this Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by FacrSet o Research Systems lnc. The City is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth within this Official Statement. The Bonds are subject to optional and special mandatory redemption prior to maturity as set forth herein. See "THE BONDS — Redemption" berein. THE BONDS ARE BEING ISSUED PURSUANT TO THE SPECIAL SERVICE AREA TAX LAW OF THE STATE OF ILLINOIS, AS AMENDED, AND, IN THE. o OPINION OF BOND COUNSEL, WILL CONSTITUTE VALID AND LEGALLY BINDING LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY AND ONLY FROM o Zy THE SPECIAL TAX AND AMOUNTS ON DEPOSIT IN CERTAIN OF THE FUNDS ESTABLISHED AND MAINTAINED PURSUANT TO THE TRUST INDENTURE, AS SET FORTH HEREIN. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY AND NEITHER THE FULL FAITH AND CREDIT NOR THE GENERAL TAXING w POWER OF THE CITY, THE COUNTY OF KENDALL, THE STATE OF ILLINOIS, OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. NO HOLDER OF ANY BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY TAXING POWER OF THE CITY (OTHER THAN THE LEVY c OF THE SPECIAL TAX AS DESCRIBED HEREIN) FOR PAYMENT OF THE PRINCIPAL AMOUNT OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS" herein. v w BOND INSURANCE h V � C � c The scheduled payment of the principW of and interest on the Bonds when due will be guaranteed by a municipal bond insurance policy to be issued by c° v simultaneously with the delivery of the Bonds. See APPENDIX B - "SPECIMEN MUNICIPAL BOND o v INSURANCE POLICY" herein. Ea The City will use the proceeds of the Bonds to: (i) currently refund all of the City's outstanding Special Service Area No. 2004-104 Special Tax Bonds, Series 2004, dated December 29, 2004; (ii) fund a portion of the Reserve Fund and (iii) pay certain costs of issuance of the Bouds. See "PLAN OF FINANCE" and "ESTIMATED SOURCES AND USES OF FUNDS" herein. b� s The Bands are offered when, as and if issued, subject to prior sale, withdrawal or modification of the offer without notice, delivery of the approving legal opinion of Bond h Counsel, and certain other conditions. See "TAX EXEMPTION" herein and APPENDIX E hereto. Certain legal matters will be passed upon for Raymond James & Associates, Inc., O � Naperville Illinois (the "Underwriter") by Chapman and Cutler LLP, Chicago, Illinois, and for the City by Ortosen D1Noffo Hasenbafg & Castaldo, Ltd., Naperville, Illinois. It is expected that the Bonds will be available for delivery to DTC in New York, New York on or about December 15, 2025. c a RAYMOND JATME.S® "Subject to change y � o NOTICE TO INVESTORS This Official Statement is being furnished by the United City of Yorkville, Kendall County, Illinois (the "City") solely for the purpose of each investor's consideration of the purchase of the Bonds described herein and is not to be used for any other purpose or made available to anyone not directly concerned with the decision regarding such purchase. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person, in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale in such jurisdiction. No dealer, broker, salesman or other person has been authorized by the City or Raymond James & Associates, Inc., Naperville, Illinois (the "Underwriter") to give any information or to make any representation other than as contained in this Official Statement in connection with the offering described herein, and, if given or made, such information or representation must not be relied upon as having been authorized. Certain information contained herein has been obtained from the City, DTC, and other sources which are believed by the Underwriter to be reliable, but it is not guaranteed as to accuracy or completeness. In accordance with, and as part of, its responsibilities to investors under the federal securities laws, as applied to the facts and circumstances of this transaction, the Underwriter has reviewed the information in this Official Statement, but does not guarantee the accuracy or completeness of such information. Neither the delivery of this Official Statement nor the sale of any of the Bonds shall imply that the information herein is correct as of any time subsequent to the date hereof. This Official Statement should be considered in its entirety and no one factor should be considered more or less important than any other by reason of its position in this Official Statement. Where statutes, reports, agreements or other documents are referred to herein, reference should be made to such statutes, reports, agreements or other documents for more complete information regarding the rights and obligations of parties thereto, facts and opinions contained therein and the subject matter thereof. References to web site addresses presented in this Official Statement are for informational purposes only and may be in the form of a hyperlink solely for the reader's convenience. Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this Official Statement. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE, THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS THE BOND ORDINANCE OR TRUST INDENTURE BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF LAW OF THE STATES IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding ® supplied by ® and presented under the heading APPENDIX B - "SPECIMEN MUNICIPAL BOND INSURANCE POLICY". H TABLE OF CONTENTS Page BOND ISSUE SUMMARY ..... ... ...... ..... ..... ..... .... .. ... .... .... ...... ...... .... .... ... ........... ..... ...... I UNITED CITY OF YORKVILLF ....... ........... .... .... ............. .... ...... ... ....... ............ ... .. ..... ... .. 2 INTRODUCTORY STATEMENT .... ....... ..... ........... ... .... ... .. .. ..... ...... ...... .... ..... ...... ...... ..... .... 3 THEBONDS. .... .... ... I ........... ...... .... ... .... .. ... ................... .... .... ... . .. ... .... .............. ..... . .. ....................4 General Desc,, pnur of the Bonds ..... ... .... .... ........... . ........... ... .... ... ...... ...... ..... .... .. . .... .... ................... .... 4 Redempt-on....... ... ..... ....... ... ............ ... .... ... ...... .... ...... ............ .... ..... I ..... ............. .... ... ....... . 5 Optional Prepayments of Special Tax ..... ..... ........... ..... ........... .... ... . .... ...... ........... .... .... .... ........... ..... ..... ..... ..... .6 AdditionalRands ... ... .. ..... - ...... ........... ..... .... ...... .... ... ... .... ............ ...... ..... .... .... . ... ........... ..... ..... ..... ..... .... .7 Book -Entry -Only System .... ..... ...... ........... ..... ..... ........... ...... ....... ..... ..... ..... ..... ... ..... ..... ...... .7 BONDINSURANCE ...... ...... ................. ...... ..... ... ..... ............. ..... .... ----....... ...... ..... .... . 9 PLANOF FINANCE I ............ ........................ ... ... ..... ...... ........... ...... ... ...... ............ ...... .... ....... ..... ......... 10 General.... ..... ............. ..... ..... ..... ... ................. ....... .... .... ................... .... .... ............ 10 TheRefunded Bonds-.__. _„.... .... ..... ...... ...... ....... ..... .... .. .... .... - .... ............ .............. ....... 10 SOURCES AND USES OF FUNDS .. ... .... ........... .... ... .... ....... .... .......... .... . ...... ...... ............. Aj DEBT SERVICE REQUIREMENTS,,...,,,,... ............................... ..... .... . .... .... ...... .... ............ ..... .... .... .... I .......... ..... .... ..... ...... ............. .11 SECURITY AND SOURCE OF PAYMENT FOR THE BONDS ... .... .... ..... ... .... ... ......................... ...... ...... ................... . ..... .............. .12 General...... ............ .... . .... .... ... ..... ...... ..... ...... ..... ...... ... ... ..... .................. ... . .... .. ..... ................ .17 TheSpecial Tax ...... ....................... ..... .... ... .................. .... ........... ...... .... ..... ..... . .1� PledgedFunds ... ............ ..... ................. .... .. ..... ...... ............ ...... .... .... .... ... ...... ................. . .. ....... ............ ... . 14 Non -Pledged Funds . .. .... ................... ............ ...... .... ... .... ...... .... ............. ...... .... ....................... ... ..... ............ Investmentof Funds ... .............. ........... ... . ... .............. ... . ..... ...... ............ .... ..... ..... ..... .................. ..... ... I ...... .... ... . Securityfor the Bands. ... .... ... ............... ............ .... ..... .... .. .. .. I - .... ................... ..... ..... ..... .... ............ .... .... ..... ..... ...... ... ..Is Covenantsof the City . .. .... .. ... ........ ..... .... ...... ... ...... . . .... ...... ...... ..... ..... ..... ...... ..... ....... .... .... ..... .... ............. ..... 19 Enforcement of Payment of Special Taxes ....... ........... ........... ..... ..., .... .... ..... - I ............. ...... ..... ... ............ .... .... .... ... ...... ...... 711 Tax Sales and Foreclosures. .. .... ...... ...... ...... ....... ... ... .... . .. .... ...... ..... ..... ..... .... ... .... ... ..... - ..... ..... ..... .... 21 THE SPECIAL SERVICE AREA AND SPECIAL TAX .................... ..... ... ..... ............ .... .... ..... ..... ...22 TheSpecial Service Area Act ..... ....... ...... ..... ............ ..... ..... .. ..... ...... ............ .... .... ..... ... .... ..... ..... .... .... .... .... ............ .... Establishment ofthe Area ......... ..................... .. ..... ... ..... ... ... ..... .... ............ ... I .. ...... ....... ..... .... .. 22 Boundaries of the Area ....... ..... ..... .............. ............. ... .... ....... ...... ..... .... ............ ... .... ........... ..22 Levy, Abatement and Collection ofSpecialTax ..................... .... ... ... .. ..... .... ............ .... ... ........ ...... .... .. . . 23 Special Service Area Speciai Tax Report ........................... .... ... ... ..... ........ ..... ...... ... ... .. ... . .. .................. .... .. I .., ............ .24 Maximum Parcel Special Tax ............. ....... ...... ..... .... .... ..... ... ... ...................... ... ..... ....... .... ........ ..24 AdministrativeServices .. ...... .... ..... ................... ..... ...... ...... ........... ... ..... ..... .. .... .... ..... ..... .......... .... .... ..... ...... ....... ...... ..... .. .2� Value -to -Lien Ratio of Special Service Area Property .. ............ ..... ..... .... ........ ....... .... ... ...... ....... ...... ........ . 2i Tax Assessment and Collection Procedures .............. ..... ..... ...... .................. ...... ..... ... ..... ............ ..... ..... ............. .......... '2� Full Value and Equalized Assessed Value of the Area .. ..... ... .... ........... ..... ..... .... ... ... .... I ........... .... .... ..... ....... ..... .... ... ..26 Historyof Special Tax Payments ..... ............. ........... ......... .... ........ ... ..... ...... ..... ..... .... . ... .... ...... ................. ..... .... I ............ .... 27 THECITY . ... .. ..... I ....... ...... ........... ...... .. ... .... ... .. ....... ...... .... ...... ..... ..... .... ............................ ... ... . ..... ............ ... .... 29 City Government and Services - ................. ........... ... .... .... .. ... ... ............ .... ...... ..... ..... ... .... .... ................ .. . - ........... .... ... 79 Transportation.. ....... ................. ...... ...... .... .... .. .. .... ... ............... ...... . .... 29 Commerceand Industry .... ....... .... ....... ............ ........... ... ... .... .............. ... ..... ...... .......... ..... .... .. - ...... ...... .... 29 Recent Economic Development .... .... ........ ........... .......... .... . . .... .... .................. .... ... ... . . . ........ ...... .... ... .29 CommunityLife. . . ... ... .... ... ... ..... ............. ..... ... ..... ........... ..... ....... ..... ........... ........... ... ... . . .... ...... .................. .31) Education. .. - .. 1 _ ....... ...... ..... ..... ..... ... .... ..... ... ................... ..... ..... .... ..... ... . ...... ...... ..... ...... . . 31 SOCIOECONOMIC INFORMATION .. ... .............. ................. ..... ... . ... ... .... ..... ...... ..... ...... ... .... ........... .... .... .. ..... ...................... .. . 31 Employment.......... .......... ...... ... .. I .............. .... ... .... ........... .......... ... ...... ....... .... ....... ..31 BuildingPermits ... .. ... . .... ... .................... .... .... ... .... ..... ..... ............ .... ..... -------- .............. .... ..... . .. .... - ........ ..... .... - 33 Housing... ... ... ..... ..... ...... .... .... .... . ... .. ... ... .... ...... ..... ..... ...... ........... .... ... ......... .... . .... ... 133 Income... ... ............. ....... .... ..... ... .... ... ..... .... .......... ..... .... ..... ....... .......... ..... ..... . ... ....... ............... .... ..., . 34 RetailActivity .. .. .. ..... .................... .... .... ...... . ..... ..... ...... .......... ... ... .... ................... ... I ........... ....... .... ... .135 IncomeTax_ .... ....... ...... ...... ..... ... ..... ............ ............ ..... ..... ................ .... .... ..... ........ .......... .... 16 PROPERTY ASSESSMENT AND TAX INFORMATION....... ... ... I ............... .... ..... .......... .... ... L ....... ...... ..... , 36 TAX INCREMENT FINANCING DISTRICTS LOCATED WITHIN THE CITY ..... ..... ..... ........... ............. . .. ... - ................ .... ... . .. ..... .... 39 RISKFACTORS " L . ... .... . .... .......................... .... ... ... ... ..... ..... I ..... ..... ... .... .................... .....,,.._,,..--I . .... ........ ..... ... . .... 38 LimitedSource of Funds . .. ..... ........... ............ ..... .... ........... ..... ..... .. ..... ... ... ..... ................. ...... . . . ...... ............. . . 38 OverlappingIndebtedness .. .... ...... ....... .................. .... .... . .. ... ... I ....... ...... .... ..... ..... .... ...................... ... I ...... ............ .... .38 TaxDelinquencies--'---_.___. ... .... ..... ..................... ............ ................ ... ..... ..... .... ....... ..... ... ..... .................. ..... ... ... .... ..... ............. ... .39 Potential Delay and Limitations in Foreclosure Proceedings,,... ... ..... ...... .... ............. ..... .... ............ ... ... ..... ...... ............ ... . 39 Condemnation- ..... ..... ...... ........... .... ..... ..... .... ... .... ...... ...... ...... ...... ..... ... .... ........... .... .... .... ...... .......... . ..40 Bankruptcy.. ..... ............ .... ...... ........... .... ............. ..... .......................... ..... ...... .... I ................. ..... .......... .. ... 40 Lossof avic Exemption ..... ..... ..... ...... ...... ............ ... ... .............. ... .... ........... .... ..... .... .... ..... ....................... ........ ...... ..41 Factors Relating to Tax Exemption ..... ........................ ..... ... ... .... ................ . ... .... .................. ... ... ... ..... ....... .............. ..41 LimitedSecondary Mzirket. .... ...... ....... ................. .... ... . ... .. ..... ....... .... . ..... ..... .... .. ........... ..... .... ...... ..... I ...... ........ ... 41 SecondaryMarket and Prices .. .... . . ........... ..... ..... ...... ...... .... .... .... I ................... ..... .... I ........... .... ...... ..... .... .... ..41 Risk of Legislative and Judicial Changes ..... ..... ................ ...... ............ . ......... .......... ..... .... ... .. ... .... ................. .... .... ... ......... . 42 InformationNot Verified . ..... ............... ... ..... .... .. ... ......................... ... ..... .... .......... ........... .. ..... ..... ..... ..... ...... . 42 NO ACMICFaIiOu . ........ .... .... ....... ..... ..... ..... .... ... ................ .... ""' 42 Ma-mrim Parcel Special Taxes ........................ ..... ..... .... ... ................. .... ..... ... ... .... ................ ... I . .... .............. 42 Disclosure to F.hiie Purchasers I ................... . .... ........... ............ .... ..... .... ........... ...... .... .. 42 MUNICIPALADVISOR,_._, .. .... ...... - ............................. .... ... ... ... ...._I... ...... .... .... ... ... ..... ....................... .... .. ..... ........ . 43 UNDERWRITING .... .. .. ... I. .......... .... ...... .. ........ ........ ..... .... 43 . ........... .... .... ................... ...... .... ... LEGAL OPINIONS..,,...,,... ... ... ... ... . .I... ... I ...... ............ .... 43 REGISTRATION, TRANSFER AND EXCHANGE..... ......._ ....... ... ... ..... ........... ..... ....... ..... .... ................... .... .... ..... ..... 43 TAX EXEMPTION ................. .... ... ... .... ... I .................. ...... ..... ... ................. ...... .... ..44 Tax Exemption - Opun on of Bond Counsel .... ..... ...... .......... ..... .... ...... ............... ... .... ............. ..... .... ..... ...... .... ........... .... .. .... .... . .. ,w AlternativeMinimum Tax - ... .. .... ... ..... ...... ... ......... .... ...----'---.,..,,..,,,.....,.....I. .............. ..... ..... ............ .... ... I ........... 45 Deduction for Interest Paid by Financial Institutions to Purchase or Carry Tax -Exempt Obligations I ............ ...... ...... ............. ............ ...... ... . ...... .. 45 Reportable Payments and Backup Withholding ... ..... ...... ..... ... .. ..... ........................... ..... .... ..... ..... ..... ............ ..... 45 CHANGES IN FEDERAL AND STATE TAX LAW I ..... ................ .... . .. .................... ...... ... .... I ....... ...... ..... ....... 46 NO LITIGATION .... .... .... .... .. ...... ...................... .... ... .............. ...... ................... .... .. ...47 INVESTMENT RATING..... ....... ... .... ....................... ................ ..... .... .... ... . . .... ... ......................... ... 47 MISCELLANEOUS . ........... ..................... ..... .... .. ............ .............. ... .... ..... ............. .... .47 AUTHORIZATION........... ..... .... .. .. ............ ....................... ..... ............ ....... .... ..... ... ..... ............. ..... ... 49 APPENDIX A - DEFINITIONS FROM TRUST INDENTURE APPENDIX B - SPECIMEN MUNICIPAL BOND INSURANCE POLICY APPENDIX C - SPECIAL TAX REPORT APPENDIX D - THE SERVICING AGREEMENT APPENDIX E - PROPOSED FORM OF OPINION OF BOND COUNSEL APPENDIX F - FISCAL YEAR 2025 AUDITED FINANCIAL STATEMENTS APPENDIX 0 - MAP OF THE AREA APPENDIX H - LEGAL DESCRIPTION OF THE AREA APPENDIX I - CONTINUING DISCLOSURE AGREEMENT Uniied City of Yorkville, Kendall Gmmy, Illinois Special Senice Area No. 2004.104 Special Tar Refunding Bonds, Series 2025 BOND ISSUE SUMMARY This Band Issue Summary is expressly qualified by the entire Official Statement, which is provided for the convenience of potential investors, and which should be reviewed in its entirety by potential investors. Other terms specific to the Bonds are provided herein. Issuer: United City of Yorkville, Kendall County, Illinois (the "City"). Issue: $3,675,000* Special Service Area No. 2004-I04 Special Tax Refunding Bonds (Grande Reserve Project), Series 2025 (the "Bonds") Dated Date: Date of delivery, expected to be on or about December 15, 2025. Interest Due: March 1 and September I of each year, commencing March 1, 2026. Principal Due: Serially each March 1, commencing March 1, 2026 through 2034, as detailed on the cover page of this Official Statement. Optional Redemption: The Bonds maturing on or after * are callable at the option of the City in whole or in part from any available moneys on any date on or after *, at a price of par plus accrued interest. See "THE BONDS - Redemption" herein. Authorization: The Bonds will be issued by the City pursuant to (i) the Illinois Constitution of 1970, as amended; (the "Illinois Constitution") (ii) the Special Service Area Tax Law of the State of Illinois, as amended (the "Special Service Area Act"); (iii) the Illinois Local Government Debt Reform Act of the State of Illinois, as amended; (iv) Ordinance No. - of the City adopted by the Mayor and Council of the City (the "City Council") at a meeting held on November 25, 2025 as supplemented by a bond order (collectively, the "Bond Ordinance") providing for the issuance of the Bands; and (v) a Trust Indenture dated as of December _ 2025 (the "Trust Indenture" or "Indenture") between the City and U.S. Bank Trust Company, Nationai Association, Chicago, Illinois, as trustee (the "Trustee"), Security: THE BONDS ARE BEING ISSUED PURSUANT TO THE SPECIAL SERVICE AREA TAX LAW OF THE STATE OF ILLINOIS, AS AMENDED, AND, IN THE OPINION OF CROKE FAIRCHILD DUARTE & BERES LLC, CHICAGO, ILLINOIS ("BOND COUNSEL"), WILL CONSTITUTE VALID AND LEGALLY BINDING LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY AND ONLY FROM THE SPECIAL TAX AND AMOUNTS ON DEPOSIT IN CERTAIN OF THE FUNDS ESTABLISHED AND MAINTAINED PURSUANT TO THE TRUST INDENTURE, AS SET FORTH HEREIN, THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY AND NEITHER THE FULL FAITH AND CREDIT NOR THE GENERAL TAXING POWER OF THE CITY, THE COUNTY OF KENDALL, THE STATE OF ILLINOIS, OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. NO HOLDER OF ANY BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY TAXING POWER OF THE CITY (OTHER THAN THE LEVY OF THE SPECIAL TAX AS DESCRIBED HEREIN) FOR PAYMENT OF THE PRINCIPAL AMOUNT OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. Reserve Fund: A separate and special fund of the City exists with the Trustee and designated as the "Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Reserve Fund, Series 2025" (the "Reserve Fund"), which must be maintained in an amount equal to the Reserve Requirement. Amounts deposited in the Reserve Fund shall be used solely for the purpose described herein in "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS - Pledged Funds - Reserve Funds". Rating/Insurance: S&P Global Ratings, a business unit of Standard & Poor's Financial Services LLC, New York, New York ("S&P"), is expected to assign their municipal bond sating of "AA" (Stable Outlook), to this issue of Bonds with the understanding that upon delivery of the Bonds, apolicy guaranteeinga meat when due of the principal of and interest on the Bonds will be issued by See APPENDIX B "SPECIMEN MUMCIPAL BOND INSURANCE POLICY" herein. Purpose: The City will use the proceeds of the Bonds to: (i) currently refund all of the City's outstanding Special Service Area No. 2004- 104 Special Tax Bonds, Series 2004, dated December 29, 2004; (ii) fund a portion of the Reserve Fund and (iii) pay certain costs of issuance of the Bonds. See "PLAN OF FINANCE" and "ESTIMATED SOURCES AND USES OF FUNDS" herein. Tax Exemption: Bond Counsel will provide an opinion as to the federal tax exemption of the interest on the Bonds as discussed under "TAX EXEMPTION" in this Official Statement. Interest on the Bonds is not exempt from present State of Illinois income taxes. No Bank Qualification: The Bonds are not "qualified tax-exempt obligations" under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. Delivery: The Bonds are expected to be delivered on or about December 15, 2025. Book -Entry Form: The Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository of the Bonds. See "TFIE BONDS - Book Entry Only System" herein. Denomination: $5,000 or integral multiples thereof. *Subject to change. United On of Yorlviile. Kendall Conn, Illinois Special Service Area No. 2004-104 Special Tax Ref&nding Bands, Series 2025 UNITED CITY OF YORKVILLE Kendall County, Illinois John Purcell Mayor Aldermen Rusty Corneils Ken Koch Chris Funkhouser Matt Marek Rusty Hyett Jori Contrino City Clerk Eric Dhuse Director of Public Works Officials Rob Fredrickson Finance Director PROFESSIONAL SERVICES BOND COUNSEL Croke Fairchild Duarte & Beres LLC Chicago, Illinois MUNICIPAL ADVISOR Speer Financial, Inc. Chicago, Illinois UNDERWRITER Raymond James & Associates, Inc. Naperville, Illinois Arden Joe Plocher Craig Soling Daniel V. Transier Bart Olson City Administrator Kathleen Field Orr, Esq. City Attorney TRUSTEE U.S. Bank Trust Company, National Association Chicago, Illinois SPECIAL SERVICE AREA ADMINISTRATOR DTA Irvine, California UNDERWRITER'S COUNSEL Chapman and Cutler LLP Chicago, Illinois LOCAL COUNSEL Ottosen DiNolfo Hasenbalg & Castaldo, Ltd. Naperville, Illinois 2 Owed Cirs of Yorkville, Kendall Coanrv, Illinois Special service Area No. 2004-104 Special Tar Refandmg Ronds, Series 2025 UNITED CITY OF YORKVILLE Kendall County, Illinois $3,675,000* Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 2025 INTRODUCTORY STATEMENT The purpose of this Official Statement, which includes the cover page and Appendices attached hereto (the "Official Statement""), is to set forth certain information in connection with the issuance and sale by the United City of Yorkville, Kendall County, Illinois (the "City") of $3,675,000* aggregate principal amount Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 2025 (the "Bonds"). Certain factors that may affect an investment decision concerning the Bonds are described throughout this Official Statement. Persons considering a purchase of the Bonds should read this Official Statement in its entirety. Copies of statutes, the Trust Indenture (defined below), ordinances, resolutions, reports or other documents referred to herein are available, upon request, from the City. The Bonds will be issued by the City pursuant to (i) the Illinois Constitution of 1970, as amended; (the "Illinois Constitution") (ii) the Special Service Area Tax Law of the State of Illinois, as amended (the "Special Service Area Act"); (iii) the Illinois Local Government Debt Reform Act of the State of Illinois, as amended; (iv) Ordinance No. — of the City adopted by the Mayor and Council of the City (the "City Council") at a meeting held on November 25, 2025 as supplemented by a bond order (collectively, the "Bond Ordinance") providing for the issuance of the Bonds; and (v) a Trust Indenture dated as of December S, 2025 (the "Trust Indenture" or "Indenture") between the City and U.S. Bank Trust Company, National Association, Chicago, Illinois, as trustee (the "Trustee"). The Bonds will be issued as fully registered bonds without coupons in book -entry only form in denominations of $5,000 or multiples of $1,000 in excess thereof. The Bonds will be secured primarily by the proceeds of Special Taxes (as defined in the Trust Indenture and compiled, extended and collected in accordance with each Special Tax Roll and Report attached hereto as APPENDIX C and hereafter referred to as the "Special Tax Report") levied on certain property within the United City of Yorkville Special Service Area No. 2004-104 (the "Area"). In addition, the Bonds will be payable from and secured by certain funds established pursuant to the Trust Indenture. See "THE BONDS". Capitalized terms used but not defined herein shall have the meaning given such terms in the Trust Indenture. See APPENDIX A — DEFINITIONS FROM TRUST INDENTURE. The Area, also known as the Central Grand Reserve SSA, was developed by MPI-2 Yorkville Central LLC, an Illinois limited liability company owned equally by Moser Enterprises, Inc, Pasquinelli Futures I, LLC and Melvin Isenstein, collectively (the "Developer"). The Area has been developed with finished lots for 723 detached single family homes ("Single Family Homes"), 224 duplex homes ("Duplexes") and 298 twnhomes ("Townhomes"), a clubhouse property and a school property. The development of such Single Family Homes, Duplexes and Townhomes within the Area is hereinafter referred to as the "Project". A finished lot for a Single Family Home shall be sometimes referred to herein as a "Single Family Home Parcel" and finished lots for Duplexes and Townhomes shall sometimes be referred to herein as a "Multifamily Parcel", The Single Family Home Parcels and Multifamily Parcels are sometimes collectively referred to as the "Parcels". *.Preliminary, subject to change. United City of Yorlwihe, Kendall County, llllnnds Special Service Area No. 2004-104 Special Tax Refunding BofWs, Series -1025 The City previously issued its $13,200,000 Special Service Area Number 2004-104 Special Tax Bonds, Series 2004 (Grande Reserve Project) (the "Series 2004 Bonds") pursuant to a Trust Indenture dated as of October 26, 2004 between the City and LaSalle Bank National Association, as trustee. The proceeds of the Series 2004 Bonds were used by the City, or by the Developer on its behalf, to construct the Special Services benefiting a portion of the Area, which enabled the Developer or other builders to complete construction of and obtain certificates of occupancy from the City for 490 Single Family Parcels in the Area within Neighborhoods 10-15 (the "First Series Property"). Per DTA's (the "Special Service Area Administrator") SSA No. 2004-104 Administrative Report dated November 10, 2025, 272 of the First Series Property had fully prepaid their Special Taxes, with the remaining 218 having been sold to third parties. See "THE SPECIAL SERVICE AREA AND SPECIAL TAX" for a more detailed description. The City had previously covenanted in the Public Improvement Agreement to issue additional special tax bonds (fine "Additional Bonds"), to the extent not prohibited by applicable laws or ordinances and subject to the conditions set forth in the Indenture for the Series 2004 Bonds, to fund the completion of the Special Services benefiting Neighborhoods 6-9 and 16 (the "Second Series Property"), enabling the Developer to obtain certificates of occupancy for the remaining i 3 Sin le Family Homes, 298 Townhomes and 224 Duplexes to be built in the Area. Pursuant to Ordinance No. a adopted on _, Additional Bonds would not be issued to finance the construction of the Special Services benefiting the Second Series Property. Hence, annual Special Taxes of Second Series Property have been fully abated and will not be available to secure the annual debt service payments on the Bonds and the administrative costs associated therewith. The proceeds of the Bonds will be used to (i) currently refund all of the City's outstanding Series 2004 Bonds, (ii) fund a portion of the Reserve Fund and (iii) pay certain costs of issuance of the Bonds. See "PLAN OF FINANCE" and "ESTIMATED SOURCES AND USES OF FUNDS" herein. IN THE OPINION OF CROKE FAIRCHILD DUARTE & BERES LLC, CHICAGO, ILLINOIS ("BOND COUNSEL"), THE BONDS WILL CONSTITUTE VALID AND LEGALLY BINDING LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY AND ONLY FROM THE SPECIAL TAX (AS PROVIDED IN THE BOND ORDINANCE, THE SPECIAL TAX REPORT AND THE TRUST INDENTURE) AND AMOUNTS ON DEPOSIT IN CERTAIN OF THE FUNDS AND ACCOUNTS ESTABLISHED AND MAINTAINED UNDER THE TRUST INDENTURE, AS SET FORTH HEREIN. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY AND NEITHER THE FULL FAITH AND CREDIT NOR THE GENERAL TAXING POWER OF THE CITY, THE COUNTY OF KENDALL (THE "COUNTY"), THE STATE OF ILLINOIS (THE "STATE"), OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. NO HOLDER OF ANY BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY TAXING POWER OF THE CITY (OTHER THAN THE LEVY OF THE SPECIAL TAX) FOR PAYMENT OF THE PRINCIPAL AMOUNT OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. A copy of any document or agreement referred to herein may be obtained upon request from the City. THE BONDS General Description of the Bonds The Bonds will be issued in the aggregate principal amount of $3,675,000*, will bear interest at the rates, and will mature on the dates, as set forth on the cover page of this Official Statement and are subject to redemption as described herein. The Bonds will be issued only as fully registered bonds without coupons in book -entry form, initially in authorized denominations of $5,000 principal amount or any authorized integral multiple thereof. *Preliminary, subject to change. 4 United Clry of Yorwille, Kendall CouriA% Illinois Special Service Area No. 2004-104 Special Tax Refunding Bonds, Series 2025 The Depository Trust Company, New York, New York ("DTC"), will act as securities depository for the Bonds. Principal of and interest on the Bonds will be paid by the Trustee directly to DTC, which will remit such principal, premium, if any, and interest to DTC's Participants, who, in turn will be responsible for remitting such payments to the Beneficial Owners of the Bonds. See "THE BONDS - Book -Entry -Only System". Interest on the Bonds will be paid in lawful money of the United States of America semiannually on March 1 and September I of each year (each, an "Interest Payment Date"), commencing March 1, 2026. Interest on the Bonds shall be calculated on the basis of a 360-day year composed of twelve 30-day months. The Bonds shall be designated "Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 2025". Each Bond shall be dated the date of delivery (the "Dated Date") and shall bear interest from the Interest Payment Date next preceding the date of registration and authentication thereof unless such Bond is registered as of an Interest Payment Date, in which event it shall bear interest from the date thereof, or unless such Bond is registered prior to the first Interest Payment Date, in which event it shall bear interest from the Dated Date, or unless, as shown by the records of the Trustee, interest on such Bond shall be in default, in which event it shall bear interest from the date to which interest has been paid in full. Redemption Optional Redemption. The Bonds maturing on and after March 1, 200* are subject to optional redemption prior to maturity at the option of the City, from such maturities and in such principal amounts as the City shall determine and within a maturity by lot, on any date on and after March 1, 200*, at a redemption price of 100% of the principal amount to be redeemed, plus accrued interest to the redemption date, without premium. Any optional redemption of the Bonds shall be applied, to the extent possible, to reduce pro rata the amount of Bonds maturing in each year and required to be redeemed by mandatory sinking fund redemption, and so as to maintain the proportion of principal maturing, or subject to mandatory sinking fund redemption, in each year to the total original principal amount of the Bonds as of the date of issuance. Mandatory Redemption Upon Condemnation. The Bonds are subject to mandatory redemption on any Interest Payment Date, in part at a redemption price of 100% of the principal amount to be redeemed, plus accrued interest to the date fixed for redemption, without premium, from amounts in the Bond and Interest Fund consisting of the proceeds received by the City in connection with a condemnation of any of the Special Services or any other property dedicated to, or owned by, the City within the Special Service Area and allocable to the Bonds as determined by DTA. (the "Special Service Area Administrator") and which proceeds are not used by the City to rebuild the Special Services. Any mandatory redemption of the Bonds as described in the preceding paragraph will be applied, to the extent possible, to reduce pro rats the amount of Bonds maturing in each year and required to be redeemed by mandatory sinking fund redemption so as to maintain the proportion of principal maturing or subject to mandatory sinking fund redemption in each year to the total original principal amount of the Bonds as of the date of issuance. Special Mandatory Redemption from Optional Prepayment of Special Tax. The Bonds are also subject to mandatory redemption on any Interest Payment Date, in part, from prepayments of the Special Tax, from amounts available for disbursement from the Special Redemption Account, as applicable, pursuant to the Trust Indenture and from amounts transferred from the Reserve Fund and the Special Reserve Fund to the Special Redemption Account pursuant to the Trust Indenture, at par, together with accrued interest on such Bonds to the date fixed for redemption. *Preliminary, subject to change. United City of Yorkmlle, Kendal! Coum. Minim Special SeMre Area No. 2004-104 Special Tar Refunding Bonds. Ser[es '025 Any special mandatory redemption of the Bonds pursuant to the previous paragraph will be applied, to the extent possible, to reduce pro rata the amount of the Bonds required to be redeemed by mandatory sinking fund redemption and paid at maturity pursuant to the Trust Indenture and so as to maintain the proportion of principal maturing in each year and subject to mandatory sinking fund redemption to the total original principal amount of the Bonds. Redemption Provisions; Notice of Redemption. If less than all the Bonds of any maturity are to be redeemed on any redemption date, the Bond Registrar appointed in the Trust Indenture shall assign to each Bond of the maturity to be redeemed a distinctive number for each $5,000 of principal amount of that Bond. The Bond Registrar shall then select by lot from the numbers so assigned, using such method as it shall deem proper in its discretion, as many numbers as, at $5,000 per number, shall equal the principal amount of the Bonds of that maturity to be redeemed; provided that following any redemption, no Bond shall be outstanding in an amount less than the minimum authorized denomination. Notice of the redemption of any Bonds, which by their terms shall have become subject to redemption, shall be given to the registered owner of each Bond or portion of a Bond called for redemption not less than 20 or more than 60 days before any date established for redemption of Bonds, by the Trustee, on behalf of the City, in the manner required by DTC or by first class mail sent to the registered owner's last address, if any, appearing on the Bond Register. All notices of redemption shall include at least the series designation, dated date, maturities of Bonds called for redemption, CUSIP numbers, the date of redemption, and state that such redemption is subject to the irrevocable deposit of funds sufficient to redeem the Bonds to be redeemed on the redemption date. In the case of a Bond to be redeemed in part only, the notice shall also specify the portion of the principal amount of the Bond to be redeemed. The sending of the notice specified above to the registered owner of any Bond shall be a condition precedent to the redemption of that Bond, provided that any notice which is sent in accordance with the Indenture shall be conclusively presumed to have been duly given whether or not the owner received the notice. The failure to send notice to the owner of any Bond, or any defect in that notice, shall not affect the validity of the redemption of any other Bond for which notice was properly given. Any notice of optional redemption may also state (and shall state if the City shall so direct) that the redemption is conditioned on receipt of moneys for such redemption by the Trustee on or prior to the redemption date; if such moneys are not received, the redemption of the Bonds for which notice was given shall not be made. In the event of any revocation of notice of optional redemption, the Trustee shall send notice of such revocation to the registered owners of the Bonds within three (3) Business Days after such proposed redemption date. Purchase in Lieu of Redemption. In lieu of redemption as provided in the Trust Indenture, moneys accumulated in the Bond and Interest Fund may be used, as directed by the City, subject to prior written consent of the Bond Insurer (as hereinafter defined), for the purchase of outstanding Bonds at public or private sale, as and when and at such prices as the City may in its discretion determine, but at a price not exceeding the principal amount thereof plus accrued interest to the date of purchase which would otherwise be due if such Bonds were to be redeemed in accordance with the Indenture. All Bonds so purchased shall at such times as shall be selected by the City be delivered to and cancelled by the Trustee and no Bonds shall be issued in place thereof. Optional Prepayments of Special Tax The manner in which Special Taxes may be prepaid is described in the Special Tax Report, attached hereto as APPENDIX C. Generally, the Special Taxes may be prepaid with respect to any Parcel of property (as defined in the Special Tax Report) at any time and the obligation to pay the Special Taxes permanently satisfied by the payment of (i) an amount equal to all delinquent Special Taxes on such Parcel, including any applicable penalties and related costs as required by law, and Special Taxes due on such Parcel but not yet paid for the Calendar Year in which such prepayment is made, plus (ii) an amount equal to the amount of prepayment determined in accordance with the formula set forth in the Special Tax Report. See APPENDIX C hereto for a more complete discussion of the calculation of the amount of prepayment of Special Taxes. Uured Grp of Yorkville, Kendali Counn, Minnis Special SeMce Area No. 2004-104 Special Tax RgftMmg &muds. Series 2025 Additional Bonds Other than the Bonds, no obligations may be issued under the Trust Indenture other than obligations to refund part or all of the Bonds then Outstanding. Book -Entry -Only System THE INFORMATION PROVIDED IMMEDIATELY BELOW CONCERNING DTC AND THE BOOK - ENTRY -ONLY SYSTEM, AS IT CURRENTLY EXISTS, IS BASED SOLELY ON INFORMATION PROVIDED BY DTC AND IS NOT GUARANTEED AS TO ACCURACY OR COMPLETENESS BY, AND IS NOT TO BE CONSTRUED AS A REPRESENTATION BY, THE UNDERWRITER (AS DEFINED HEREIN) OR THE CITY. When the Bonds are issued, ownership interests will be available to purchasers only through the Book -Entry - Only System maintained by DTC. DTC will act as securities depository for the Bonds. Initially, the Bonds will be issued as fully registered Bonds, registered in the name of Cede & Co. (DTC's partnership nominee). One fully registered bond will be issued in the aggregate original principal amount of each maturity of the Bonds and will be deposited with DTC. The following discussion will not apply to the Bonds if issued in certificate form due to the discontinuance of the DTC Book -Entry -Only system, as described below. DTC, the world's largest depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that its participants (the "Direct Participants) deposit with the DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U. S. and non-U. S. securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is a wholly owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries of DTCC), as well by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, and trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants" and together with the Direct Participants, the "DTC Participants"). The DTC Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission (the "Commission"). The DTC Rules applicable to its Participants are on file with the Commission. DTC has an S&P Global Ratings ("S&P") rating of AA+. More information about DTC can be found at www.dtcc.com. Purchase of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC r s records. The ownership interest of each actual purchaser of each Bond (the "Beneficial Owner") is, in turn, to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holders, from the Direct and Indirect Participants through which the Beneficial Owner entered into the transaction. Transfer of beneficial ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of the Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interest of the Bonds, except in the event that use of the book entry system for the Bonds is discontinued. United City 4 Yarbille, Kendall County, Illinois Special Service Area No. 2004-104 Special Tat Refunding Bouts, Series 2025 To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time, redemption notices shall be sent to DTC. If less than all of the Bonds are being redeemed, DTC's practice is to determine by lot the amount of interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Trustee as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Redemption proceeds and payments of principal and interest on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Trustee, on payable dates in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name" and will be the responsibility of such Participant and not of DTC, the Trustee, or the City, subject to any statutory and regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Trustee, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving written notice to the City or the Trustee. Under such circumstances, in the event that a successor securities depository is not obtained, Bonds are required to be printed and delivered as described in the Trust Indenture. The City may discontinue use of the system of book -entry transfers through DTC (or a successor securities depository) as described in the Trust Indenture. In that event, Bonds will be printed and delivered as described in the Trust Indenture. NEITHER THE CITY, THE UNDERWRITER, NOR THE TRUSTEE WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OR THE PERSONS FOR WHOM THEY ACT WITH RESPECT TO (1) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY SUCH DIRECT PARTICIPANT OR INDIRECT PARTICIPANT; (2) THE PAYMENT BY ANY PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OF OR INTEREST OR PREMIUM ON THE BONDS; (3) THE DELIVERY BY ANY SUCH DIRECT PARTICIPANT OR INDIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER THAT IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE TRUST INDENTURE TO BE GIVEN TO BONDHOLDERS; (4) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (5) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS BONDHOLDER. �;I United City of Yort_ville, Kendail Coantp, Illinois Speelaf Service Area No. 2004-I04 Special Tux Refunding Bands, Series 2025 JEWNSURANCE COME] United Cay of Yorkville, Kendall Cuunry. Illinois Special Seniee Area No. 1004-I04 Special Tar Refunding Bands, Series 2025 PLAN OF FINANCE General The City will use the proceeds of the Bonds, together with amounts on hand under the prior indenture for the Series 2004 Bonds to: (i) currently refund all of the City's outstanding Series 2004 Bonds, as described below (the "Refunded Bonds"), (ii) fund a portion of the Reserve Fund, and (iii) pay certain expenses incurred in connection with the issuance of the Bonds. See "SOURCES AND USES OF FUNDS" herein. The Refunded Bonds The City has determined the defeasance and current refunding of the Refunded Bonds to be in the public interest and in furtherance of the public purposes of the City. The table below sets forth the redemption date and principal amount of the Refunded Bonds to be redeemed. SSA No. 2004-104 Special Tax Bonds (Grande Reserve), Series 2004 Bond Year Outstanding Refunded Redemption Redemption CUSIPS(2) (3/1) Amount Amount(1) Price Date(1) (Base: 987361) 2026.................... I...... $ 276,000(3) $ 276,000 100.00% 1/14/2026 2027........... --........... 305,000(3) 305,000 100.00% 1/14/2026 2028........................... 328,000(3) 328,000 100A0% 111412026 2029........................... 359,000(3) 359,000 100,00% 1/14/2026 2030........................... 391,000(3) 391,000 100.00% 1/1412026 2031........................... 424,000(3) 424,000 100,00% 111412026 2032........................... 460,000(3) 460,000 100.00% 1/14/2026 2033........................... 495,000(3) 496,000 100.00% 1/14/2026 2034........................... 534,000 534,000 100.00% 1/14/2026 AD4 Total ........................ $3,572,000 $3,572,000 Notes: (1) Subject to change. (2) CUSIP numbers appearing in this Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. The City is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Series 2004 Bonds or as set forth in this Official Statement. (3) Amount subject to mandatory redemption on such date. Proceeds of the Bonds and amounts transferred from funds and accounts for the Refunded Bonds will be used to fund an irrevocable escrow account (the "Escrow Account") to be invested in cash and direct obligations of the United States of America. The Escrow Account will be held by the U.S. Bank Trust Company, National Association, Chicago, Illinois, as Successor Trustee for the Series 2004 Bonds and in its capacity as escrow agent (the "Escrow Agent") and will be used to effect the defeasance and current refunding of the Refunded Bonds. The Escrow Account will be held by the Escrow Agent pursuant to an escrow agreement (the "Escrow Agreement") which irrevocably directs the Escrow Agent to (i) pay the redemption price of the outstanding Refunded Bonds, plus accrued interest, on January 14, 2026* (the "Redemption Date") and (ii) take all steps necessary to call the outstanding Refunded Bonds on the Redemption Date. The Escrow Account will be funded in such amounts so that the cash and the principal and interest payments received on the investments therein will be sufficient to pay, the redemption price of, and interest on, the refunded Bonds on the Redemption Date. *Preliminary, subject [o change. Fri Unned Cry of YUrkTille, Kendall County, Alinois Special Service Area No. 2004-104 Spee[ai Tar Refunding Bonds, Series 2025 SOURCES AND USES OF FUNDS SOURCES: PrincipalAmount..................................................................................... .$. Transfer from Bond and Interest Fund under Prior Trust Indenture ........ Transfer from Reserve Fund under Prior Trust Indenture ....................... TotalSources....................................................................................... $ USES: Deposit to Escrow Account...................................................................... $ Deposit to Reserve Fund......................................................................... Costsof Issuance(1)................................................................................ TotalUses............................................................................................ $ Note: (1) Includes Underwriter's discount, bond insurance premium and other issuance costs and contingencies. DEBT SERVICE REQUIREMENTS The following table sets forth the debt service schedule for the Bonds based on the maturity, and interest rate set forth on the cover of this Preliminary Official Statement, assuming no redemptions are made: Debt Service Requirements(]) (2) Bond Year Totai 3( 11) Principal Interest Debt Service 2026............. $ 315,000 $ 26,859 $ 341,859 2027............. 350,000 117,778 467,778 2028............. 365,000 106,928 471,928 2029............. 385,000 95,430 480,430 2030............. 405,000 82,918 487,918 2031............. 430,000 69,350 499.350 2032............. 450,000 54,300 504,300 2033............. 475,000 37,650 512,650 2034 ............. 500,000 19,600 519,60 Total........... $3,675,000 $610,812 $4,285,812 Notes: (1) Source: the City. (2) Preliminary and subject to change. Special Tax and Debt Service Coverage(])(2) Bond Year The Trustee 8, Adjusted Maximum Debt Service 3( 11) Bonds(3) Admin. Fees(4) Dent Service(3) Special Tax Coverage(3). 2026......... $ 341,859 $ 25,331 $ 367,190 $ 492,082 1.34x 2027......... 467,778 25,711 493.489 612,385 1.24x 2028......... 471,928 26,097 498,025 621,486 1.25x 2029......... 480,430 26,488 506,918 630,804 1.24x 2030......... 487,918 26,885 514,803 640,339 1.24x 2031......... 499,350 27,289 526,639 649,874 1.23x 2032......... 504,300 27,698 531,998 659,625 1.24x 2033......... 512,650 28,113 540,763 669,593 1.24x 2034......... 519,600 28,535 548,135 679,561 1.24x Total....... _ $4,285,812 $242,147 $4,527,959 $5,655,750 Notes: (1) Source: the City and the Special Service Area Administrator. (2) Excludes the Refunded Bonds and is subject to change. (3) Subject to change. (4) Trustee and Administrative Fees are estimated to increase 1.5% per year. I United MY of Yor, w!!e. Kendall Caunrv, Illinois Special Service Area No. 2004-104 Spracil Tax Refunding Hands, Series 2025 SECURITY AND SOURCE OF PAYMENT FOR THE BONDS General The Bonds and the interest thereon are limited obligations of the City secured and payable solely from the Special Taxes and other moneys deposited in the Funds and Accounts established pursuant to the Trust Indenture other than the Administrative Expense Fund, the Special Reserve Fund and the Rebate Fund. When collected, the Special Taxes and any foreclosure proceeds shall be placed in the Bond and Interest Fund. In addition, proceeds received by the City from a condemnation of any of the Special Services or any other property owned by or dedicated to the City within the Special Service Area and allocable to the Bonds which is not used to rebuild the Special Services shall be deposited into the Bond and Interest Fund as security for the Bonds. IN THE OPINION OF BOND COUNSEL, THE BONDS WILL CONSTITUTE VALID AND LEGALLY BINDING LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY AND ONLY FROM THE SPECIAL TAXES (AS PROVIDED IN THE BOND ORDINANCE, THE SPECIAL TAX REPORT AND THE TRUST INDENTURE) AND AMOUNTS ON DEPOSIT IN CERTAIN OF THE FUNDS AND ACCOUNTS ESTABLISHED AND MAINTAINED UNDER THE TRUST INDENTURE, AS SET FORTH HEREIN. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY AND NEITHER THE FULL FAITH AND CREDIT NOR THE GENERAL TAXING POWER OF THE CITY, THE COUNTY, THE STATE, OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. NO HOLDER OF ANY BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY TAXING POWER OF THE CITY (OTHER THAN THE LEVY OF THE SPECIAL TAX) FOR PAYMENT OF THE PRINCIPAL AMOUNT OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. The amount of Special Taxes that the City may levy in the Area in any year is strictly limited by the maximum amounts approved by the corporate authorities at the time of establishment of such Area. The City is legally authorized under the Special Service Area Act, and has covenanted in the Trust Indenture, to extend and collect the Special Taxes in an amount determined according to the Special Tax Report. The City has levied the Special Taxes in the amounts set forth in the Maximum Special Taxes column in the Table under the caption "THE SPECIAL SERVICE AREA AND SPECIAL TAX - Special Service Area Special Tax Report" herein below and will abate such tax each year to the extent it is not needed. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS - The Special Tax" below. The Special Tax Report apportion the total amount of Special Taxes to be collected among the Parcels in the Area as more particularly described herein. See "THE SPECIAL SERVICE AREA AND SPECIAL TAX - Special Tax Report' and "APPENDIX C - Special Tax Report". The Special Tax The levying of the Special Tax was authorized by the corporate authorities in Ordinance No.2004-49, adopted at a meeting held on September 14, 2004, as amended by Ordinance No. 2004-60 adopted at a meeting held on October 26, 2004 (the "Establishing Ordinance"). Pursuant to the Establishing Ordinance, the City caused the Establishing Ordinance and the Declaration of Consent of the Developer to be recorded with the County. 12 United Ciry of Yorkville, Kendall Coutirv, 11hricis Sperial Service Area Na. 2004 104 Special Tat Rof dit Bonds, Series 102 The Bonds are secured by, among other things, a pledge of Special Taxes including all scheduled payments of Special Taxes collected by the County and received by the City, interest thereon, and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of Special Taxes. Pursuant to the Bond Ordinance the City has levied the Special Taxes in the amounts set forth in the Total Maximum SSA Special Taxes column in the Table set forth below in "THE SPECIAL SERVICE AREA AND SPECIAL TAX - Special Service Area Special Tax Report" and will abate such tax each year to the extent it exceeds the Special Tax Requirement as calculated by the Special Service Area Administrator on its behalf. The City has covenanted in the Bond Ordinance and the Trust Indenture annually on or before the last Tuesday of December for each of the years 2025 through 2032 to calculate or cause the Special Service Area Administrator to calculate the Special Tax Requirements; to amend the Special Tax Roll and provide the county tax collector with the amended Special Tax Roll; and to direct the County Clerk of Kendall County (the "County Clerk") to extend the Special Taxes for collection on the tax books against all of the taxable real property within the Area in connection with other taxes levied in each of such years for general City purposes. The Special Taxes shall be computed, extended and collected in accordance with the Special Tax Report and the Special Tax Roll, and divided among the taxable real property within the Area in accordance with the terms of the Establishing Ordinance and the Special Tax Report. The Special Taxes authorized to be levied by the Bond Ordinance shall be abated each year to the extent the taxes levied pursuant to the Bond Ordinance exceed the Special Tax Requirements as calculated by the Special Service Area Administrator pursuant to the Establishing Ordinance and the Special Tax Report. See "THE SPECIAL SERVICE AREA AND SPECIAL TAX - Special Service Area Special Tax Report". The levy of the Special Taxes is subject to certain limitations. The levy of the Special Taxes on each Parcel within the Area is constrained by the Maximum Parcel Special Tax amount applicable to such Parcel. See "THE SPECIAL SERVICE AREA AND SPECIAL TAX - Special Service Area Special Tax Report" and Maximum Special Taxes column in the Table under the caption "THE SPECIAL SERVICE AREA AND SPECIAL TAX - Special Service Area Special Tax Report" herein. The full amount of the Maximum SSA Special Taxes as set forth in the subcaption under the caption "Special Tax Report" has been levied pursuant to the Bond Ordinance. Although the Special Tax, when levied, will constitute a lien on Parcels within the Area, it does not constitute a personal indebtedness of the owners of such Parcels within the Area. There is no assurance that the owners of such Parcels in the Area will be financially able to pay the annual Special Taxes or that they will pay such tax even if financially able to do so. See "RISK FACTORS" herein. 13 (Inked OrY of YorIxTife, Kendall Cuunrr, himols Special Semce Area Na. 2004104 Special Tar Rej4ndmg Hands, Senes 2025 Pledged Funds Band and Interest Fund. The Trust Indenture creates and establishes with the Trustee a separate and special fund of the City established exclusively for paying principal of interest on and redemption premium on the Bonds and which is designated as the "Special Service Area No. 2004-104 Special Tax Refunding Bonds, Bond and Interest Fund" (the "Bond and Interest Fund"). When collected, the Special Taxes, including certain amounts transferred to the Trustee from the Bond and Interest Fund created for the Bonds, and the Foreclosure Proceeds, including any interest and penalties collected in connection with such Special Taxes or Foreclosure Proceeds, shall be placed in the Bond and Interest Fund. The City may provide for the County to transmit directly to the Trustee for deposit to the Bond and Interest Fund any Special Taxes collected by the County. In addition, proceeds received by the City in connection with a condemnation of any of the Special Services or any other property dedicated to or owned by the City within the Special Service Area allocable to the Bonds which is not used to rebuild the Special Services shall be deposited in the Bond and Interest Fund and the City shall identify for the Trustee the amount so deposited. Moneys deposited in the Bond and Interest Fund and investments of the Bond and Interest Fund shall never be commingled with or loaned to any other funds of the City. All interest and other investment earnings on the Bond and Interest Fund shall become, when received, a part of the Bond and Interest Fund. When the amount of condemnation proceeds deposited to the Bond and Interest Fund equals $1,000 or more, such amount will be used to redeem Bonds on the next Interest Payment Date. Any amounts representing condemnation proceeds which remain on deposit in the Bond and Interest Fund for a continuous period of thirty (30) months and which will not be used to redeem the Bonds on the next Interest Payment Date will be used to pay debt service on the Bonds on the next Interest Payment Date. Amounts deposited in the Bond and Interest Fund are appropriated for and irrevocably pledged to, and shall be used solely for the purpose of paying the principal of and interest and redemption premium, if any, on the Bonds, or for transfers to the Special Reserve Fund, the Reserve Fund or the Administrative Expense Fund, as permitted in the Trust Indenture. At any time after September 1 but in no event later than December I of each year, the Trustee will determine the amount needed to pay principal of and interest and redemption premium, if any, on the Bonds on the next succeeding Interest Payment Date. If the Trustee determines that sufficient amounts are on deposit in the Bond and Interest Fund to pay principal of, and interest and redemption premium, if any due on the Bonds on the next succeeding Interest Payment Date, the Trustee shall notify the City and the consultant of any excess amounts on deposit in the Bond and Interest Fund and, at the written direction of the City, shall transfer an amount from the Bond and Interest Fund to the Administrative Expense Fund which the City after consultation with the consultant has determined will be adequate, together with other amounts in the Administrative Expense Fund or reasonably expected to be transferred to or deposited in such Fund, to pay all Administrative Expenses during the succeeding calendar year. After making such transfer to the Administrative Expense Fund any excess amounts on deposit in the Bond and Interest Fund will be transferred to the Reserve Fund to the extent necessary to replenish the Reserve Fund to the Reserve Requirement (as defined below under the subcaption "Reserve Fund") (or to restore the amount available under any Reserve Fund Policy, together with cash on deposit in the Reserve Fund, to the Reserve Requirement). After (i) making such transfer to the Administrative Expense Fund, and (ii) the Reserve Fund has amounts on deposit equal to the Reserve Requirement, any excess amounts on deposit in the Bond and Interest Fund shall be transferred to the Special Reserve Fund to the extent necessary to fund and replenish the Special Reserve Fund to the Special Reserve Fund Requirement. The total amount transferred from time to time to the Special Reserve Fund will not exceed $15,000 giving consideration to amounts that may have previously been transferred from the Special Reserve Fund. Thereafter, any remaining excess shall be retained in the Bond and Interest Fund and applied to pay principal and interest coming due on the next succeeding Interest Payment Date. 14 United Ciry of Yorkville, Kendall Couna', iilpiais SperW Servtre Area No. 2004-104 Sperial Tax Refunding Bonds, Series 2025 Special Redemption Account. The Trust Indenture creates and establishes with the Trustee a separate account designated the "Special Redemption Account" within the Bond and Interest Fund established with the Trustee. All prepayments of the Special Taxes made in accordance with the Special Tax Report shall be deposited in the Special Redemption Account. Moneys in the Special Redemption Account shall be used exclusively to redeem Bonds pursuant to the Trust Indenture as described under the caption "THE BONDS — Redemption - Special Mandatory Redemption from Optional and Mandatory Prepayment of Special Tax" or to pay debt service on the Bonds pursuant to the Trust Indenture. In the event of any optional prepayment of Special Tax, prior to giving notice of the redemption of Bonds in accordance with the Trust Indenture, the Trustee shall transfer from the Reserve Fund to the Special Redemption Account an amount equal to the Reserve Fund credit and from the Special Reserve Fund (to the extent funds are available) to the Special Redemption Account an amount equal to the Special Reserve Fund Credit, if any, upon the direction of the Consultant in accordance with the Special Tax Roll and Report. When the amount on deposit in the Special Redemption Account from mandatory redemption upon redemption equals $5,000, such amount shall be used to redeem the Bonds on the next Interest Payment Date in accordance with the Trust Indenture. On each such interest payment date, the Trustee shall withdraw from the Special Redemption Account and pay to the owners of the Bonds the amounts to redeem the Bonds pursuant to the Trust Indenture. When the amount on deposit in the Special Redemption Account from mandatory redemption from optional prepayment of Special Taxes equals or exceeds $1,000, such amount will be used to redeem the Bonds on the next March 1, June 1, September 1 or December 1 in accordance with the Trust Indenture. On each such redemption date, the Trustee will withdraw from the Special Redemption Account and pay to the owners of the amounts to redeem the Bonds pursuant to the Trust Indenture. Notwithstanding the foregoing, any amounts contained in the Special Redemption Account for a continuous period of thirty (30) months and which will not be used to redeem the Bonds on the next Interest Payment Date in accordance with the immediately preceding sentences and under the caption "THE BONDS — Redemption - Special Mandatory Redemption from Optional Prepayment of Special Tax" shall be used to pay debt service on the Bonds on the next Interest Payment Date. Any amount contained in the Special Redemption Account on the final maturity date of the Bonds shall be used to pay outstanding debt service on the Bonds. Reserve Fund. The Trust Indenture creates and establishes with the Trustee a separate and special fund of the City which is designated as the "Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Reserve Fund, Series 2025" (the "Reserve Fund"), and which must be maintained in an amount equal to the Reserve Requirement. At closing, the cash portion of the Reserve Requirement will be equal to 50% of the total Reserve Requirement or $183,750*, as reduced by the amount of any Reserve Fund Credits transferred to the Special Redemption Account in connection with a redemption of the Bonds from prepayments pursuant to the Trust Indenture and as described in the preceding paragraph, with the remaining 50 % of the Reserve Requirement funded by the Reserve Fund Policy (as defined hereinafter). Amounts deposited in the Reserve Fund shall be used solely for the purpose of (i) making transfers to the Bond and Interest Fund to pay the principal of, including mandatory sinking fund payments, and interest on, all Bonds when due, in the event that moneys in the Bond and Interest Fund are insufficient therefor, (ii) making any transfers to the Bond and Interest Fund if the aggregate cash balance in the Reserve Fund and the Special Reserve Fund (as hereinafter defined) exceeds the amount required to redeem all Bonds then outstanding, (iii) making transfers to the Special Redemption Account of the Bond and Interest Fund pursuant to the Indenture or (iv) if the amount then on deposit in the Reserve Fund is at least equal to the Reserve Requirement, for transfer in accordance with the Trust Indenture, and as described in the next paragraph. On the Business Day prior to each Interest Payment Date, moneys in the Reserve Fund in excess of the applicable cash portion of the Reserve Requirement shall be transferred by the Trustee from the Reserve Fund to the Bond and Interest Fund to be used for the payment of interest on Bonds on the next following Interest Payment Date. *Preliminary, subject to change. 15 United Ciq+ of Yorkville, Kendall Caunrv, Illinois Special Service Area No, 2004-104 Wrial Tar Refunding Bonds, Series 2025 On the Business Day prior to each March 1 Interest Payment Date, (a) moneys in the Reserve Fund in excess of the Reserve Requirement shall be transferred by the Trustee from the Reserve Fund to the Bond and Interest Fund to be used for the payment of principal of and interest and redemption premium (if any) on the Bonds on such March 1 Interest Payment Date, and (b) moneys in the Reserve Fund in excess of (i) the Reserve Requirement and (ii) the principal of and interest and redemption premium (if any) due on the Bonds on such March 1 Interest Payment Date, shall be used for the payment of interest on the Bonds on the next following September 1 Interest Payment Date. Any amounts contained in the Reserve Fund on the final maturity date of the Bonds shall be transferred to the Bond and Interest Fund and used to pay outstanding debt service on the Bonds. Withdrawals from the Reserve Fund shall be made from the following sources in the following order of priority: (1) cash, and (2) from drawings under a Reserve Fund Policy in the order of priority provided for in such instruments. Any replenishment of the Reserve Fund shall be applied first to the reimbursement of drawings under a Reserve Fund Policy and then to the restoration of cash. In the event that the City chooses to deposit a Reserve Fund Policy into the Reserve Fund, it may make reasonable covenants and agreements with the issuer of the policy, surety or other facility including, but not limited to, covenants and agreements related to the following: (a) The application and priority of amounts deposited to the credit of the Reserve Fund after a draw under the Reserve Fund Policy to reimburse the issuer of the Reserve Fund Surety Policy or to reimburse or replenish cash in the Reserve Fund; (b) Not less than fifteen (15) days advance notice of the need for a draw by the Trustee under the Reserve Fund Policy and to maintain records; and (c) The status of the issuer of the Reserve Fund Policy as a third party beneficiary under the Trust Indenture and its ability to enforce the provisions of the Trust Indenture to the extent such rights may in fact benefit such issuer of the policy or facility. The Reserve Requirement is equal to 10 % of the principal amount of the Bonds. will pay each portion of an Insured Payment that is due for payment and unpaid by reason of nonpayment by the City to the Trustee, as beneficiary of the Reserve Policy on behalf of the holders of the Bonds on the later to occur of (i) the date such scheduled principal or interest becomes due for payment or (ii) the business day next following the day on. which - receives a demand for payment therefor in accordance with the terms of the Reserve Policy. No payment shall be made under the Reserve Policy in excess of fifty percent (50 %) of the Reserve Requirement established for the Bonds (the "Reserve Policy Limit"). Pursuant to the terms of the Reserve Policy, the amount available at an articular time to be paid to the Trustee shall automatically be reduced to the extent of any payment made by under the Reserve Policy, provided, that, to the extent of the reimbursement of such payment by the City to, the amount available under the Reserve Policy shall be reinstated in full or in part, in an amount not to exceed the Reserve Policy Limit. The premium on the Reserve Policy is included in the Costs of Issuance for the Bonds. See "SOURCES AND USES OF FUNDS" herein. 16 United Cin of Yorbille, Ken&dt County, lifiaais Sperial Semce Area No. 2004-104 Sperial Tax Refunding Bonds, Series 2025 Non -Pledged Funds Special Reserve Fund. A separate and special fund of the City which shall be designated as the "Special Service Area Number 2004-107 Special Tax Refunding Bonds, Special Reserve Fund" (the "Special Reserve Fund"). Special Taxes shall be deposited in the Special Reserve Fund in accordance with the Indenture until the amounts on deposit in the Special Reserve Fund equal the Special Reserve Fund Requirement. The total amount transferred from time to time to the Special Reserve Fund shall not exceed $-, giving consideration to amounts that may have previously been transferred from the Special Reserve Fund. Amounts deposited in the Special Reserve Fund-shali-be used solely for the purpose of (i) making any transfers to the Bond and Interest Fund if the aggregate balance in the Special Reserve Fund and the Reserve Fund exceeds the amount required to redeem all Bonds then outstanding, (ii) for transfer to the Special Redemption Account in an amount equal to the Special Reserve Fund Credit in accordance with the Indenture, (iii) on March 1, 20M for transfer to the Bond and Interest Fund as described below, (iv) at the direction of an Authorized Officer for transfer to the Bond and Interest Fund or any other fund established under the Trust Indenture, or (v) at the direction of an Authorized Officer for any use permitted by the Special Service Area Act, provided an opinion of bond counsel is delivered to the Trustee to the effect that such use will not violate the Special Service Area Act or adversely affect the tax-exempt status of interest on the Bonds. On March 1, 200 (on which date the Special Reserve Fund Credit shall be zero), the Trustee shall without further direction, transfer any remaining amounts on deposit in the Special Reserve Fund to the Bond and Interest Fund to pay principal of and interest and redemption premium on the Bonds on the next succeeding Interest Payment Date. Any amounts in the Special Reserve Fund that are used to pay principal of, or interest or premium on, the Bonds shall be treated as Special Taxes paid by the owners of the affected Parcels for purposes of the Special Tax Roll and Report. Amounts on deposit in the Special Reserve Fund are not pledged to the payment of principal of or interest on the Bonds. The Reserve Policy does not insure against nonpayment caused by the insolvency or negligence of the Trustee or Paying Agent. The Reserve Policy. - has made a commitment to issue a financial guaranty insurance policy for fifty percent (50 %) of the Reserve Requirement with respect to the Bonds (the "Reserve Fund Policy"), effective as of the date of issuance of the Bonds and held by the Trustee in the Reserve Fund. See APPENDIX B for a specimen Reserve Fund Policy. The Reserve Policy, together with a portion of the proceeds of the Bonds to be deposited in the Reserve Fund, will equal the Reserve Requirement. All amounts on deposit under the Indenture available to pay debt service on the Bonds (exclusive of the Reserve Policy) shall be used to pay such debt service before any draw may be made on the Reserve Policy. Draws on the Reserve Policy may be used only to pay principal of and/or interest on the Bonds. The Bonds will be delivered only upon the issuance of the Reserve Policy. Under the terms of the Reserve Policy, will unconditionally and irrevocably guarantee to pay that portion of the scheduled principal and interest on the Bonds that becomes due for payment but shall be unpaid by reason of nonpayment by the City (the "Insured Payment(s)"), Costs of Issuance Fund. The Trust Indenture creates and establishes with the Trustee a separate and special fund of the City within the Administrative Expense Fund which is designated as the "Special Service Area No. 2004-104 Special Tax Refunding Bonds, Costs of Issuance Fund, Series 2025" (the "Costs of Issuance Fund"). Amounts deposited in the Costs of Issuance Fund shall be used solely for the purpose of paying costs incurred in connection with the issuance of the Bonds and the refunding of the Series 2004 Bonds. On the date which is six (6) months after the date of issuance of the Bonds, the Trustee shall transfer all amounts remaining in the Costs of Issuance Fund to the Bond and Interest Fund. 17 Untied Viy uj Yorkville, Kendail Counn. Ilirnnis Special Service Area No. 2004404 Speciul Tac ReAnding Roads, Series 2025 Administrative Expense Fund. The Trust Indenture creates and establishes with the Trustee a separate and special fund of the City which is designated as the "Special Service Area No. 2004-104 Special Tax Refunding Bonds, Administrative Expense Fund" (the "Administrative Expense Fund"). Amounts in the Administrative Expense Fund shall be withdrawn by the Trustee and paid to the City or its order upon receipt by the Trustee of a written request from an Authorized Officer stating the amount to be withdrawn, that such amount is to be used to pay an Administrative Expense, and the nature of such Administrative Expense. Rebate Fund. The Trust Indenture creates and establishes with the Trustee a separate and special fund of the City which is designated as the "Special Service Area No. 2004-104 Special Tax Refunding Bonds, Rebate Fund" (the "Rebate Fund"), into which there shall be deposited as necessary investment earnings in the Bond and Interest Fund, the Reserve Fund and the Special Reserve Fund to the extent required so as to maintain the federal tax-exempt status of interest on the Bonds. All rebates, special impositions or taxes for such purpose payable to the United States of America (Internal Revenue Service) shall be payable from the Rebate Fund. Amounts in the Special Reserve Fund, Administrative Expense Fund, and the Rebate Fund are not pledged to the repayment of the Bonds. Investment of Funds Moneys on deposit in the various funds and accounts established under the Trust Indenture may be invested from time to time in Qualified Investments pursuant to directions from the City to the Trustee provided that moneys on deposit in the Special Redemption Account shall be invested only in Qualified Investments having a maturity of 180 days or more. Except as otherwise expressly provided in the Trust Indenture, earnings or losses on such investments will be attributed to the fund or account for which the investment was made. In the event that the Trustee does not receive directions from the City to invest funds held under the Trust Indenture, the Trustee shall invest such funds in a money market fund which invests in short-term securities issued or guaranteed by the United States Government, its agencies or instrumentalities. Notwithstanding anything in the Trust Indenture to the contrary, at the written direction of the City, the Trustee shall invest amounts on deposit in the (1) Special Redemption Account of the Bond and Interest Fund and (2) the Special Reserve Fund such that the yield on the investment does not exceed the yield on the Bonds. The Reserve Fund shall be invested only in Qualified Investments with maturities not longer than ten (10) years, the average life of which is no longer than five (5) years. Investments on deposit in all funds and accounts established under the Trust Indenture shall be valued at market value at least quarterly. Security for the Bonds The Bonds and the interest thereon are secured and payable primarily from (i) the Special Taxes levied, and to be extended and collected on all taxable property within the Area subject to the Special Taxes, including interest on such Special Taxes and the proceeds of the redemption or sale of property sold as a result of any actions to foreclose the lien of Special Taxes and any interest accrued thereon, brought following a delinquency in the payment of the Special Taxes (the "Special Taxes"), (ii) any amounts transferred by the City to the Bond and Interest Fund, including the allocable portion of condemnation proceeds received by the City not used to rebuild the Special Services, and (iii) the Reserve Policy and amounts deposited in the Bond and Interest Fund and the Reserve Fund. 18 United QY gFYnrkv fle, Kendall CuunN, lllfnaiv Specfaf Servire Area No. 2004.104 Sperlaf Tar Refunding 8arufs, Series 2025 Covenants of the City Pursuant to the Trust Indenture, the City has covenanted for the benefit of the holders of the Bonds (the "Bondholders") that the City will: (a) take all actions, if any, which shall be necessary, in order further to provide for the levy, extension, collection and application of the taxes levied by the Trust Indenture and the Bond Ordinance, including enforcement of the Special Taxes as provided by law; (b) not take any action which would adversely affect the levy, extension, collection and application of the taxes levied pursuant to the Bond Ordinance and the Trust Indenture, except to abate those taxes to the extent permitted by the Trust Indenture and the Special Tax Report; (c) comply with all requirements of the Special Service Area Act, the Bond Ordinance and other applicable present and future laws concerning the levy, extension and collection of the Special Taxes levied pursuant to the Bond Ordinance and Indenture, in each case so that the City shall be able to pay the principal of and interest on the Bonds as they come due and replenish the Special Reserve Fund to the Special Reserve Requirement and the Reserve Fund to the Reserve Requirement (or to restore the amount available under any Reserve Fund Surety Policy, together with cash on deposit in the Reserve Fund, to the Reserve Requirement), and it will take all actions necessary to assure the timely collection of the Special Taxes, including without limitation, the enforcement of any delinquent Special Taxes by providing the County with such information as is deemed necessary to enable the County to include any property subject to a delinquent Special Taxes in the County Collector's annual tax sale and, upon receipt of the written request of the Bond Insurer or a majority of the Bondholders in the event the tax lien is forfeited at such tax sale, by assigning to the Trustee its right to institute foreclosure proceedings, and/or assigning to the Trustee its right to purchase as a taxing district the unpaid taxes due upon the property all in the manner provided by law; provided, however, that the obligation to purchase unpaid taxes, or institute any proceeding shall only arise in the event the City or the Trustee, as applicable, makes the determination that sufficient funds are on deposit in the Administrative Expense Fund to (i) pay all remaining Administrative Expenses expected for such levy year, and (ii) apply to the purchase of the unpaid taxes and/or pay the costs of any proceeding; (d) not encumber, pledge or place any charge or lien upon any of the Special Taxes or other amounts pledged to the Bonds superior to, or on a parity with, or junior to, the pledge and lien created in the Trust Indenture for the benefit of the Bonds, except as permitted by, or specifically set forth in, the Trust Indenture including in connection with the issuance of refunding Bonds; (e) take all actions which are necessary to be taken (and avoid any actions which it is necessary to avoid being taken), so that interest on the Bonds will not be or become included in gross income for federal income tax purposes under existing law; (f) keep, or cause the Trustee to keep, proper books of record and accounts, separate from all other records and accounts of the City, in which complete and correct entries will be made of all transactions relating to the deposits to and expenditure of amounts disbursed from the Funds and Accounts created under the Trust Indenture and the Special Tax; and (g) to the extent possible, it will direct the County to deposit all Special Taxes when collected including Foreclosure Proceeds, condemnation proceeds and prepayments directly with the Trustee to be applied as set forth in the Trust Indenture. W United Cny of Yorbille, Kendall Couruy, Illinois Sperrnl Semce Area No 2004-104 Special Tax Refunding Bonds, Series 2025 Enforcement of Payment of Special Taxes In Illinois, general ad valorem property taxes are levied in one year and become payable during the following year. At the end of each collection year, the County Treasurer applies to the Circuit Court of Kendall County for a judgment for all unpaid general ad valorem property taxes. The Circuit Court of Kendall County order resulting from that application for judgment provides for a sale of all property with unpaid general ad valorem property taxes. A public sale is held, at which time successful bidders pay the unpaid general ad valorem property taxes plus penalties (i.e., interest penalties and certain other costs). The annual tax sale is usually held during October of any given year in the County. Unpaid general ad valorem property taxes accrue penalties at the rate of 1 112 % per month from their due date until the date of sale. Taxpayers can redeem their property by paying the purchaser of the delinquent taxes on the property at the general tax sale the amount paid at the sale, plus a penalty. If redemption does not occur within two and one half years and certain procedural requirements are met, the purchaser of the property at the tax sale may petition for, and receive a deed to the property which has been sold for delinquent taxes. Any delinquent Special Taxes for any given year would be included in this general tax sale. If there is no sale of the tax lien on a parcel of property at the annual tax sale, and the taxes remain unpaid, the taxes are forfeited and eligible to be purchased at any time thereafter at an amount equal to all delinquent taxes and interest to the date of purchase. Redemption periods and procedures are the same as applicable to the annual tax sale. In addition to using the annual tax sale as an enforcement mechanism, a municipality may seek enforcement of unpaid Special Taxes through commencement of foreclosure proceedings pursuant to the Special Service Area Act. If a delinquency in the payment of the Special Taxes occurs, the City is authorized by the Special Service Area Act to assign to the Trust its right to institute an action pursuant to Article 9 of the Illinois Municipal Code (65 ILCS 519- 1-1, et seq.) (the "Municipal Code") to foreclose any lien therefor securing the Special Taxes. In such an action, a court having jurisdiction would enter a foreclosure decree authorizing the sale of the property subject to the lien of the Special Taxes, and the real property subject to the lien of the Special Taxes would be sold at a judicial foreclosure sale. The ability of the City to foreclose the lien of delinquent unpaid Special Taxes may be limited in certain instances and may require prior consent of the property owner in the event that the property is owned by any receivership of the Federal Deposit Insurance Corporation (the "FDIC"). See "RISK FACTORS — Bankruptcy". Such judicial foreclosure proceedings are not mandatory under the Special Service Area Act. However, in the Trust Indenture, the City has covenanted with the Bondholders to take all actions, if any, which shall be necessary to provide for the levy and extension, collection and application of the Special Taxes, and to assure the timely collection of the Special Taxes, including without limitation, the enforcement of any delinquent Special Taxes assigning to the Trustee its right to commence and maintain an action to foreclose the lien of any delinquent Special Taxes; provided, however, that the City`s obligation to institute any foreclosure action shall only arise if the City makes the determination that the proceeds from each foreclosure action have a commercially reasonable expectation of exceeding the costs thereof. 20 United City of Vorbiile, Kendal County, Ninois Special Service Area No a 2004-104 Speelol Tar Aelunding Bands, Series 2025 No assurances can be given that a judicial foreclosure action, once commenced, will be completed or that it will be completed in a timely manner. See "RISK FACTORS - Potential Delay and Limitations in Foreclosure Proceedings" below. Article 9 of the Municipal Code provides that the municipality or its assignee may file a complaint to foreclose a special service area tax lien in the same manner that foreclosures are permitted by law in case of delinquent general taxes. The "law in case of delinquent general taxes" to which the Municipal Code refers is the Illinois Revenue Code. Under such foreclosure proceedings, the court adjudicates the existence of a default in the payment obligation and authorizes a foreclosure sale; the sale is conducted and the proceeds distributed according to the respective priorities; the successful bidder is given a certificate of sale; and, if the redemption period expires without a redemption of the special service area taxes, the certificate of sale may be converted to a deed. Although the municipality holds the lien for the local improvement and is therefore the proper party to commence foreclosure procedures, bondholders with bonds secured by special service area taxes may compel the municipality to perform its duty and use all lawful means, including foreclosure, to collect the taxes out of which the bondholders are to be paid. Special service area taxes create a lien that is superior to other liens and encumbrances, and when general property taxes and Special Taxes are both delinquent, the proceeds of any foreclosure action, if insufficient to pay each in full, are divided between them on a pro rata basis. If special service area taxes are not paid in full at a foreclosure sale, and the lien amounts are bid in at such foreclosure sale, then unless the special service area taxes are then redeemed through payment of the amount of the special service area taxes plus interest, the certificate of sale can be converted into a deed to the property only after expiration of the applicable redemption period. The Illinois Constitution prescribes certain minimum redemption periods for unpaid taxes on property, including special service area taxes, but the Illinois General Assembly may create longer redemption periods. For residential property with less than seven dwelling units, the Illinois Constitution provides for a minimum two year redemption period. The corresponding statute, however, permits the delinquent owner of such property to redeem it for two and one half years (35 ILCS 200121-350). Additionally, in certain circumstances the redemption period may be extended for a period which will expire no later than three years from the date of the sale (35 ILCS 200/21-385). If the property can also be considered "vacant non -farm real estate," the Illinois Constitution authorizes a reduction of the redemption period to one year, but the statute applicable to special service area taxes contains no such exception. No assurances can be given that the real property subject to sale or foreclosure and sale will be sold or, if sold, that the proceeds of sale will be sufficient to pay any delinquent installment of special service area taxes. Neither the Special Service Area Act nor Article 9 of the Municipal Code requires the City to purchase or otherwise acquire any lot or parcel of property offered for sale or subject to foreclosure if there is no other purchaser at such sale. Article 9 of the Municipal Code does specify that the special service area taxes will have the same lien priority in the case of delinquency as the priority of the lien of ad valorem property taxes. If the Reserve Fund is depleted and delinquencies in the payment of Special Tax exist, there could be a default or delay in payments to the Bond owners pending the annual tax sale and/or prosecution of foreclosure proceedings and receipt by the City of the sale and/or foreclosure sale proceeds, if any. However, within the limits of the Special Tax Report and the Special Service Area Act, the City may adjust the Special Tax levied on all property within the Area in future calendar years to provide an amount, taking into account such delinquencies, required to pay debt service on the Bonds and to replenish the Reserve Fund. The amounts of the maximum Special Taxes are sufficient to pay the amounts required by the Trust Indenture to be paid on the Bonds; however, there are no assurances that the taxes levied will always be collected in their entirety. Tax Sales and Foreclosures Parcels delinquent on payment of Levy Year 2024 special taxes were subject to the County Tax Sale held on October 27, 2025. Prior to County Tax Sale, purchasers of delinquent property taxes at previous tax sales are eligible to purchase current delinquent property taxes of properties for which they hold outstanding claims. Prior to the tax sale, there were 4 parcels with delinquent special taxes of $ $9,083.76. Delinquent property taxes for 4 parcels with special taxes of $9,083.76 were purchased at the County Tax Sale. The lien and foreclosure remedies provided for in Article 9 of the Municipal Code shall apply upon the nonpayment of the special tax. No foreclosures have commenced as of the date of this Official Statement. 21 United Cin rf Yurbllfe. Kendall County. Illinois Speriat Service Area Nu. 2004-104 Special Tac Refunding Bonds, Series 2025 THE SPECIAL SERVICE AREA AND SPECIAL TAX The Special Service Area Act Section 7(6) of Article VII of the Illinois Constitution permits a non -home rule unit to levy or impose additional taxes upon areas within its boundaries to provide special services to those areas and to pay debt incurred in order to provide those special services in the manner provided by law. Such areas are established pursuant to the provisions of the Special Service Area Act. Under the Special Service Area Act, the Corporate Authorities of the municipality within which the special service area lies constitute the governing body of such special service area. The Special Service Area Act provides that bonds may be issued to provide for the special services. Such bonds do not constitute indebtedness of the municipality in which the special service area is situated for the purpose of any limitation imposed by any law. Such bonds shall be retired by a tax which may be an ad valorem property tax, a special tax, or a combination of an ad valorem property tax and a special tax. A special tax may be levied or imposed on any basis that provides a rational relationship between the amount of special tax levied or imposed against each lot or parcel within the special service area and the special service benefit conferred. The Special Service Area Act further provides that the lien and foreclosure remedies provided in Article 9 of the Municipal Code shall apply on non-payment of any special tax. The Special Service Area Act contains a provision that allows residents of a special service area to petition the circuit court having jurisdiction to disconnect territory from the special service area if, among other things, such territory was not, is not, and is not intended by the corporate authorities which created the special service area to be benefited or served by services then existing or authorized, and that such territory constitutes less than 1-1/2% of the special service area's total equalized assessed valuation. The City has represented that no parcel within the Area meets this test. Establishment of the Area Pursuant to the Special Service Area Act, the Corporate Authorities of the City adopted Ordinance No. 2004-49, on September 14, 2004, as amended by Ordinance No. 2004-60 adopted on October 26, 2004 proposing to establish the Area. Pursuant to notice given by publication at least once not less than 15 days prior to the hearing, and pursuant to notice by mail to each person in whose name general taxes for the last preceding year were paid on each parcel of land within the Area, a public hearing was held on March 23, 2004 to further consider establishment of the Area. On October 26, 2004, the City Council adopted the Establishing Ordinance, which established the Area to provide certain special services, and authorized the City to levy and collect Special Taxes in the manner set forth in the Special Tax Report, to pay principal of and interest on the bonds secured by the Special Taxes in an aggregate principal amount not to exceed $14,000,000 to be retired over a period not to exceed 30 years at an interest rate not to exceed 7% per annum; the proceeds of the sale of the bonds would be used to (a) construct such Special Services; and (b) to pay administrative expenses. Pursuant to the Special Service Area Act, if a petition signed by at least 51 % of the electors residing within the Area and by at least 51 % of the owners of record of land included within the boundaries of the Area is filed with the municipal clerk within 60 days following the final adjournment of the public hearing objecting to the creation of the Area, the issuance of the Series 2004 Bonds or the provision of the Special Services, then the Area may not be created. No such petition was filed objecting to the creation of the Area. The City has caused the Establishing Ordinance to be recorded in the Office of the Recorder of Deeds of the County. Boundaries of the Area The Area is a portion of the Grande Reserve Subdivision and includes the residential components, a school property and a the Clubhouse Property of the Central Grande Reserve, which in total consists of approximately five hundred thirty-four (534) acres of land generally located north of State Route 34, northeast of Bristol Ridge Road, and east of Kennedy Road. See APPENDIX G for a map of the Area and see APPENDIX H for a legal description of the Area. 22 Cinved City of Yorkville, Kendall Coany, Illinois Special Service Area No. 2004-104 Special Tax Refunding Bonds, Senes 2025 The number of units in each plat is summarized below: The Area Land Use Summary (1 ) Prepaid/ Partially Total Fully Abate Prepaid Remaining/Taxable Classification: First Series Property: Single Family Homes .................. 490 2Z72 2 216 Subtotal ..................................... 490 272 2 216 Second Series Property: Single Family Homes .................. 233 233 0 0 Townhomes................................ 298 298 0 0 Duplexes ..................................... 224 224 0 0 Subtotal ..................................... 755 755 0 0 Grand Total ............................... 1,245 1,027 2 216 Note: (1) Source: the Special Service Area Administrator Levy, Abatement and Collection of Special Tax In Illinois, property taxes levied in one year become payable during the following year as provided in said levy. Pursuant to the Bond Ordinance, the City has levied the Maximum Parcel Special Taxes for all parcels within the Area. Pursuant to the Trust Indenture and the Special Tax Report, the City has covenanted that prior to the last Tuesday of December of each of the years 2025 to 2033 to calculate or cause the consultant to calculate the Special Tax Requirements due as provided in the Special Tax Report, taking into account other amounts that may be available to pay principal of and interest on the Bonds and administrative expenses, to amend the Special Tax Roll pursuant to the Special Tax Report and shall, by ordinance, approve the amount of the Special Tax Requirements and direct the County Clerk to extend the Special Taxes for collection on the tax books in the amounts so determined pursuant to the Special Tax Report against all parcels of taxable property in the Area. The County Clerk must receive the Special Tax Roll by the last Tuesday in December. To the extent possible, the County Clerk incorporates the Special Tax bill into the regular ad valorem property tax bill which will be payable in two equal installments. In the event the County Clerk does not incorporate the Special Tax bill into the regular ad valorem property tax bill, the City would send a separate tax bill to property owners in the Area. The first installment is payable in June and the second installment is payable in September. The Special Taxes levied by the Bond Ordinance shall be abated each year to the extent the taxes levied pursuant to the Bond Ordinance exceed the Special Tax Requirements as calculated by the City. At the end of each collection year, the County Treasurer applies to the Circuit Court of Kendall County, for a judgment for all unpaid taxes. The Circuit Court of Kendall County order resulting from that application for judgment provides for a sale of all property with unpaid taxes. A public sale is held, at which time successful bidders pay the unpaid taxes plus penalties. The annual tax sale is usually held the last week of October in the County. Unpaid taxes accrue penalties at the rate of 1 1/2% per month from their due date until the date of sale. Taxpayers can redeem their property by paying the purchaser of the property at the tax sale the amount paid at the sale, plus a penalty. If redemption does not occur within two and one half years and certain procedural requirements are met, the purchaser of the property at the tax sale can receive a deed to the property which has been sold for delinquent taxes. Alternatively, a municipality may seek enforcement of unpaid Special Tax through foreclosure proceedings by seeking in court an adjudication of the existence of a lien and a finding of a failure to pay Special Tax when due. Upon making such a finding, a court having jurisdiction would enter a foreclosure decree authorizing the sale of the property subject to the lien of the Special Tax. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS - Enforcement of Payment of Special Taxes" herein. 23 ilnued GrY of Yorbaie, Kendall County, Illinois Special Senice Area No. 2004-104 Special Tat Ref 4WIng Bowls, Series 2025 Special Service Area Special Tax Report The following description of the Special Tax Report prepared by the Special Tax Administrator is qualified in its entirety by reference to the complete form of the Special Tax Report set forth in APPENDIX A hereto. Capitalized terms used in this section, but not defined, shall have the meaning given to such terms in the Special Tax Report. The Special Tax Report set forth the provisions for apportioning and levying the Special Taxes in the Area. The Special Taxes will be levied in the Area each Levy Year from 2024 to 2032 and collected each Calendar Year from 2025 to 2033. The amount of Special Taxes levied pursuant to the Special Tax Report has been calculated to provide an amount equal to at least 110% of the annual debt service on the Bonds taking into account estimated interest earnings on the Reserve Fund and Administrative Expenses estimated at $25,331.00 per year and escalating annually through 2033 at the rate of one and one-half percent. The Maximum Parcel Special Taxes levied by the City within the Area in 2024 shall not exceed $3,096,382 and beginning in 2026 shall be increased by 1.50 % per year through 2034, provided, however, that in no event shall the Maximum Parcel Special Taxes levied exceed $3,488,102 in levy year 2032, the final year the Maximum Parcel Special Taxes shall be levied. Subject, however, to the mandatory prepayment provisions set forth in the Special Tax Report, the Special Tax Bond Prepayment amount shall not exceed the principal amount of the Bonds plus any Premium, Defeasance and Fees as such terms are defined in the Special Tax Report, less the Reserve Fund Credit and the Capitalized Interest Credit, plus any delinquent Special Taxes on the Parcel for which the prepayment is being made, including any applicable penalties and related costs. See "THE BONDS - Optional Prepayment of Special Tax" and "Redemption - Special Mandatory Redemption from Optional and Mandatory Prepayment of Special Tax". Maximum Parcel Special Tax The following table sets forth certain information concerning the Special Taxes for the Area, including the aggregate Maximum Parcel Special Tax to be levied in levy years 2025 through 2032 and to be collected in calendar years 2026 through 2033, and the Total Maximum Parcel Special Tax which will be levied pursuant to the Bond Ordinance. Maximum Parcel Special Taxes for Levy Years 2025-2032(1) Total Levy Single Family Maximum Parcel Year Home duplex Town Home Special Taxes 2025 $2,826 $2,313 $1,952 $612,385 2026 2,868 2,348 1,981 621,486 2027 2,911 2,383 2,011 630,804 2028 2,955 2,419 2,041 640,339 2029 2,999 2,455 2,072 649,874 2030 3,044 2,492 2,103 659,625 2031 3,090 2,529 2,135 669,593 2032 3,136 2.567 2,167 679,561 Note: (1) Source: the Special Service Area Administrator 24 United Cay of Yorkville, Kendall Counrv, Illinois Special Service Area ,No. 7W4-I04 Sperial Tar NeAadmg Bonds, Series 2025 Administrative Services The Special Service Area Administrator will provide administrative services for the Special Service Area for the City pursuant to an Administrative Services Agreement. DTA who served as the previous Administrator, prepared the Special Tax Report. Under the Administrative Services Agreement, the Administrator will (i) maintain a Parcel database necessary to extend, bill and collect the Special Taxes, (ii) calculate the amount of Special Taxes to be abated for the Area, (iii) prepare an annual report for the Area, (iv) facilitate billing of the Special Taxes, (v) monitor tax receipts and collections, (vi) track Special Taxes prepayment amounts and Special Reserve Fund Credits, (vii) field taxpayer inquiries, and (viii) calculate any rebate on the Bonds. Value -to -Lien Ratio of Special Service Area Property(I) Based solely upon the County Assessor Valuation information below, the following table sets forth the estimated value -to -lien ratio based on $3,675,000* aggregate principal amount of the Bonds: 2024 Assessed Market Value(1)(2)........ ..... ................................................... --................................... $78,167,181 Outstanding Bonded Debt(3)............................ ............ I.... .................................... - ...... "I",................. 3,675,000 Valueto Lien Ratio(3)(4).......................................................................................................--............ 21.27 Notes: (1) Source: the Special Service Area Administrator and the City. (2) Net of applicable General Homestead Exemptions. (3) Includes the Bonds, excludes the Refunded Bonds, and is subject to change. (4) The ratio reflects the value to lien for the Bonds and does not take into account any existing or future overlapping debt issued by the City or other public entity with the ability to levy ad valorem taxes on the Special Service Area. The estimated value -to -lien ratio is based on the County Assessor Valuation which may not accurately reflect the "market value" of the property, if determined by a licensed appraiser. No assurance can be given that the foregoing ratio can or will be given that the foregoing ratio can or will be maintained during the period of time the Bonds are outstanding both because property values could drop and because the City and other public entities over which the City has no control could issue additional indebtedness secured by a lien on a parity with the lien securing payment of the Special Taxes or payable through the levy or imposition of a tax on a parity with the Special Taxes or payable through the levy or imposition of a tax on a parity with the Special Tax. Tax Assessment and Collection Procedures Under state law, local assessment officers are responsible for determining the assessed valuation of taxable real property including railroad property not used for transportation purposes. Certain other types of taxable property, including railroad property used for transportation purposes and pollution control equipment, are assessed by the Illinois Department of Revenue (the "Department"). Valuations determined by local assessment officers are subject to appeal and review at the county level and then, in general, to equalization by the Department. Such equalization is achieved by applying to each county's assessments a multiplier determined by the Department. The purpose of equalization is to provide a common basis of assessments among counties by adjusting assessments toward the statutory standard of 33- 113 % of fair market value. Farmland is assessed according to a statutory formula which takes into account factors such as productivity and crop mix. Taxes are extended against the assessed values after equalization. Certain statutory exemptions provide for reductions in assessed valuation or for limitations upon increases in assessed valuation to qualifying taxpayers. *Preliminary, subject to change. 25 Untied Ciro of Yorkville. Keodail Cougc, Illinois Special Service Area No. 2004 104 Special Tra Reputing Bonds, Senes 2025 Property tax levies of each taxing body, such as the County, are filed in the office of the county clerk of each county in which territory of the taxing body is located. The county clerk computes the rates and amounts of taxes applicable to taxable property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to the respective parcels of taxable property. The county clerk then supplies to the appropriate collecting officials within the county the information needed to bill the taxes in respect to the various parcels therein. After the taxes have been collected, the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected. Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes not paid when due are subject to a penalty of 1-1/2% per month until paid. Unpaid property taxes constitute a lien against the property subject to the tax. Full Value and Equalized Assessed Value of the Area 2024 Full Value(1)(2).............................. .................... $78,167,181 ........................................... 2024 Equalized Assessed Value........................................................................... $26,055727 Notes: (1) Source: the Special Service Area Administrator. (2) Net of applicable General Homestead Exemptions. The following table sets forth a statement of general ad valorem taxes, based on tax year 2024 rates, that would be expected to be assessed against Parcels improved with detached Single Family Homes, Duplexes and Townhomes in the Area based on the assessed values for such property set forth below and the most recent tax bill received by an owner of property in the Area. Representative Ad Valorem Taxes for the Area(1) Single Family Home Market Value........................................................... $358,565 Average Assessed Value...... .................... ......... 119,522 Multiplier................................................................. 1 SIA Equalized Value ................................................ 119,522 Average Homeowners Exemption ........................... (3,500) Taxable Valuation .................................................... $116,022 Tax Rates (%) Single Familv(2) Taxing Agency: TheCity ........-- ................................. -- .................. $ 0.4415 The County .... ........................................ ................ - 0.5281 Bristol -Kendall Fire Protection District ..................... 0,6241 Kendall County Forest Preserve ............................. 0.1304 Community College District Number 516 ................ 0.4183 Yorkville Library....................................................... 0.1164 Kendall Township .................................................... 0.0744 Kendall Township Road District .............................. 0.1891 Unit School District Number 115 ............................. 5,7473 Total Tax Rate ....................................................... $ 8.2695 Representative Ad Valorem Tax ............................. $ 9,594 Maximum Parcel Tax 2025(3)................................. 2,826 TotalTaxes ........................................................... $12,378 Notes. (1) Source: the County Clerk, the City and the Special Service Area Administrator. (2) Tax rates are based on tax year 2024 and assume a parcel improved with a Single Family Home, Duplex or Townhome in the Area. (3) The amounts shown represent the Maximum Parcel Special Tax per parcel, which was determined by the Special Service Area Administrator, after estimating Administrative Expenses, see "Maximum Special Tax for Levy Years 2025-2032" herein. 26 Unked Cif}of Yorki,Ule, Kendall County, Illiwis Special Serv(re Area No. 3004404 Sperlaf Tax Refunding Bends, Senes _'035 History of Special Tax Payments The following table sets forth the Special Tax payments made for the past five years. History of Special Tax Payments(1) Special Taxes Special Levy Collection to be Taxes Percent Year Year Collected Paid Collected 2020- .................2021............... $453,837 $453,837 100.00% 2021....................2022............... 468,798 464,530 99.09% 2022....................2023............... 476,199 476,199 100.00% 2023....................2024............... 483,339 481,119 99.54% 2024....................2025............... 492,082 492,082 100.00% Note: (1) Source: the Special Service Area Administrator. Equalized Assessed Valuation of the Area(]) Tax Year EAV(2)^ Percent Change 2020- .......................... $18,005,941 4.66%(3) 2021 ............................. 18,893,138 4.93% 2022 ............................. 22,697,274 20.14% 2023 ............................. 21,426,384 (5.60%) 2024 ............................. 26,055,727 21.61 % Notes: (1) Source: the Special Service Area Administrator. (2) Net of applicable General Homestead Exemptions. (3) Percentage change based off 2019 EAV of $17,204,088. The Area Outstanding Bonded Debt(])(2) (Principal Only) Total Cumulative Calendar Series 2004 The Bonds(3) Less: the Outstanding Principal Retirement(3) Year (311) (311) Refunded Bonds(3) Bonds(3) Amount Percent 2026................... $ 276,000 $ 315,000 $ (276,000) $ 315,000 $ 315,000 8.57% 2027................... 305,000 350,000 (305,000) 350,000 665,000 18.10% 2028................... 328,000 365,000 (328,000) 365,000 1,030,000 28,03% 2029................... 359,000 385,000 (35%000) 385,000 1,415,000 38.50% 2030................... 391,000 405,000 (391,000) 405,000 1,820,000 49.52% 2031................... 424,000 430,000 (424,000) 430,000 2,250,000 61.22% 2032................... 460,000 450,000 (460,000) 450,000 2,700,000 73.47% 2033................... 495,000 475,000 (495,000) 475,000 3,175,000 86.39% 2034................... 534,000 500,000 _ (534,000) 500,000 3,675,000 100.00% Total,.... ............ $3,572,000 $3,675,000 $(3,572,000) $3,675,000 Notes: (1) Source: the City. (2) Mandatory redemption amounts are shown for term bonds. (3) Subject to change. 27 Unized Ciry of Yorbilie, Kendall County, Illinois Special Service Area No. 2W4-104 Speaul Tax Refunding Bonds, Senes 2025 Direct and Overlapping Bonded Debt Related to the Area(]) Outstanding Applicable to the Area Debt Percent Amount Direct Debt:(2) The Bonds............................................................................... $3,675,000 100.00% $ 3,675,000 TotalDirect Debt.............................................................................................................................................. $ 3,675,000 Overlapping Bonded Debt:(3) Schools: Grade School District Number 66........................................... $ 2,732,100 0.44% $ 12,137 Unit School District Number 88............................................... 34,240,000 1.04% 356,587 Unit School District Number 115............................................. 35,435,000 62.32% 22,084,701 Community College District Number 516................................ 49,305,000 6.30% 3,106,552 Community College District Number 525................................ 80,305,000 0.002% 1,416 TotalSchools.................................................................................................................................................. $25,561,493 Others: The County............................................................................. $ 9,520,000 17.64% $ 1,679,489 Kendall County Forest Preserve District ................................. 12,930.000 17.64% 2,281,071 Yorkville -Bristol Sanitary District ............................................. 47,135,000 98.19% 46,280,410 TotalOthers ..................................................................................................... .............................................. $50,240,970 Total Schools and Other Overlapping Bond Debt............................................................................................ $75,802.462 Total Direct and Overlapping Bond Debt(2)..................................................................................................... $79,477,462 Notes: (1) Source: the County Clerk and the MSRB's Electronic Municipal Market Access website ("EMMA"). (2) Excludes the Refunded Bonds and is subject to change. (3) Outstanding overlapping bonded debt as of August 26, 2025. Percentages are based on 2024 EAV, the most current available. THE CITY The site where the City is located was first settled in 1833; the City was officially incorporated as a Village on July 8, 1874. On April 16, 1957, the City and the Village of Bristol joined together and formed one municipality known as the United City of Yorkville. The City has been the county seat of the County since 1859. It is located in northeastern Illinois on the Fox River approximately 45 miles southwest of Chicago. Nearby communities include Oswego, Bristol, Plano, Millbrook, Hehnar, Newark, Plattville, Montgomery, Sugar Grove and Plainfield. According to the 2000 Census, the City had a population of 6,189. A special census in December of 2003 resulted in a population total of more than 8,500; a special census completed in May of 2006 showed an increase in that total of 31.8 % when the population increased to 11,204. The special census in 2008 recorded a population of 16,838 which increased to 16,921 at the 2010 Census. The City's population further increased to 19,022 per a special census conducted in 2017 and 21,533 per the 2020 Census. City Government and Services The City is at present non -home rule and follows a Mayor/City Council form of government in which the Mayor and Aldermen are each elected to a four-year term. The City is served by the Bristol/Kendall Fire Protection District which carries a Protection Class 6. It maintains a 24-hour paramedics unit and is a member of the Mutual Aid Box Alarm System. The Police Department employs 34 full-time officers and emergency medical service is available 24 hours a day. 28 United Cin' of Yorkville, Kendall Cuunty, llllno[S Special Semre Area No. 2004-104 Special Tax Refandieg Bonds, Series 2025 Certain of the City's employees are organized into collective bargaining units. The City recognizes three collective bargaining units, one for police patrol employees, one for police sergeants and one for public works/parks employees. The patrol employee union has a total of 25 members, the sergeants union has a total of 5 members, and the public works employee union has approximately 25 members. The collective bargaining agreements for the police patrol employees and police sergeants expire April 30, 2027. The collective bargaining agreement for the public works/parks employees expires 2026. The City pays for increases in employee salaries under these contracts from its general, water and sewer revenues and sizes its budget to account for such increases. Transportation The City is approximately 15 miles west of Interstate 55 (I-55); almost 20 miles north of Interstate 80 (1-80); and nearly 12 miles south of Interstate 88 (I-88). Illinois Route 47 and U.S. Route 34 intersect the City. O'Hare International Airport is approximately 50 miles northeast of the City and Midway Airport is about 45 miles to the east in Chicago. Aurora Municipal Airport, approximately ten miles to the north provides lighted runways and aircraft tiedowns, hangar, power plant repair, air frame repair and navigator aids. Additionally, it offers freight, charter and helicopter services. The Burlington Northern Santa Fe Railroad in nearby Aurora provides commuter rail service. Commerce and Industry Businesses and retailers are attracted to the City because of its location near several major thoroughfares and the Fox River. The City features several shopping centers including Kendall Marketplace and the historic downtown area as well as the retail establishments found on both the north and south ends of the City. There are three tax increment finance ("TIF") districts in the City referred to as the Countryside TIF, the Downtown TIF and the Downtown TIF II. Major private employers are found in a variety of fields including entertainment, retail, services and light industry. Some of the larger employers are Wrigley Manufacturing Company LLC (516 employees), Raging Waves Water Park (490 seasonal employees), Super Target (273 employees), Jewel/Osco (185 employees), Home Depot (140 employees), Menards Mega Store (136 employees) and Newlyweds Foods (125 employees). Recent Economic Development Recent years have marked a period of notable commercial activity and private investment throughout the City. Development has occurred across multiple sectors —including retail, dining, community services, hospitality and industrial uses --reflecting continued interest from regional and national operators in Yorkville's growing economy. A major commercial milestone was the recent opening of the Costco Wholesale Warehouse along Route 34. The development, situated on approximately 33 acres, includes a retail facility of more than 161,000 square feet and one of the company's largest fuel centers. Costco opened to the public in November 2025 and is expected to support several hundred jobs and materially expand the City's regional retail presence. Additional commercial activity underway during this period includes construction of a new QuikTrip gas station and convenience store at Routes 47 and 71, continued enhancements at Raging Waves Waterpark and the development of Fox Hill Senior Living, a 45-unit luxury apartment community designed to serve residents aged 55 and older. 29 United Cirri of YeAwille, Kendall County, Illinois Sperlal Service Area No, 1004-104 Wciai Tas Refunding Bunk. Series 2025 Yorkville's retail and restaurant sectors also continued to expand, with new establishments opening such as iBoba - The Bubble Tea Shop, Tropical Smoothie Cafe, Yolkville Cafe and Nothing Bundt Cakes, the latter of which opened in September 2025. These additions contributed to increased consumer activity within the community's primary commercial corridors. Several service -oriented businesses also opened or expanded during this time, including ACE Tackwondo, The District Salon Suites and Blank S18 Events, each contributing to the diversification of commercial activity in and around the City's historic downtown area. In September 2024, the City completed the sale of the former Parks and Recreation Department building at 201 West Hydraulic Avenue to a private developer. Following a full interior renovation completed in early 2025, the 3,850-square- foot facility reopened as The District Salon Suites, a multi -tenant salon collective offering approximately 15 to 17 private suites for independent stylists. This redevelopment introduced a new commercial use within the downtown district and supported ongoing revitalization efforts. During this same period, several community -focused and health -oriented organizations expanded their operations in Yorkville. The Association for Individual Development (AID) relocated to a larger facility in 2025, Purple Lotus Solutions began offering mental health services and We Rock the Spectrum Kids Gym opened a facility designed to accommodate children of all abilities, including those with sensory processing needs. Additional commercial openings and construction projects advanced in 2025. Gerber Collision. & Glass began construction on a new 16,800-square-foot facility that is expected to open in 2026. Lola's Handcrafted Churros continued preparations for an opening planned for late 2025, and the Reds Sports Training Facility, a 21,000-square-foot athletic training center for youth programs, progressed toward a 2025 opening. These developments collectively demonstrate sustained private investment across a range of commercial uses. In addition to traditional commercial activity, the City continued its review of large --scale industrial and technology - oriented development proposals, including two significant data -center campus concepts —known as Project Cardinal and Project Steel. Together, these proposals encompass more than 1,500 acres and contemplate multiple data -center buildings and associated electrical substations. While these projects remain under evaluation and are subject to further municipal review and approvals, they represent substantial potential for long-term non-residential growth within the City's industrial corridors." Community Life The City contains approximately 288 acres of parks with picnic areas, a gazebo and recreational fields. Programs offered include aerobics, basketball, bus trips, bowling, crafts, dance, fishing, golf, soccer, sports club, street hockey, tee ball, tennis and tumbling. Residents also enjoy a golf course and forest preserves which are nearby but outside the City boundaries. Raging Waves, the largest outdoor water park in Illinois, opened in 2009. Among its attractions are the Kangaroo Falls play structure with ladders and waterspouts, the Cyclone Bowl and Boomerang Tornado rides as well as the Great Barrier Reef wave that imitates the action of the ocean. In 2025 the park expanded by adding 20 acres and is constructing two new attractions, a "rapid river" and a family pool complex, both of which will be open for the 2026 season. Yorkville Public Library (the "Library") serves the residents of the City and is a member of the Reaching Across Illinois Library System ("RAILS"). In addition to its extensive collection of books, Library resources include dial -a - story, local history, newspapers, sheet music, audio books, large print books, paperbacks, magazines, and videos and DVDs. Services available to the community are homebound service, interlibrary loan, kits for brothers and sisters of new babies, kits for sick kids, loft meeting area, photocopier, computers, tax forms, talking books, typewriter and voter registration. The Library offers the following online resources. animals and the environment; arts and crafts; children's book and screen characters; children's books and stories online; educational resources; exploration and museums; history and geography; holidays and celebrations; literature online; math and science; music and poetry; reference tools and homework help; space; and sports and recreation. 30 United City of'YarkMlie, Kendall Couno. Minois Sperral Service Area No, 2004404 *rial Tax Refunding Bonds, Series 7025 Medical services are available at Rush/Copley Medical Center in the City and also at the Rush -Copley Medicine Center and Prime Healthcare Mercy Medical Center, both located in Aurora. Additional facilities are provided by Sandwich Community Hospital in Sandwich, Illinois. These institutions are about fifteen miles from the City. Education Community Unit School District Number 115 (the "District") meets the elementary and secondary educational requirements of the City with two elementary schools, one junior high school and one high school. The District has a staff of approximately 445 teachers and administrators and approximately 7,030 students. The District has implemented a new computer curriculum, innovative interdisciplinary projects and advanced team building and support programs for students and staff. Higher education opportunities are offered by Aurora University in nearby Aurora and Northern Illinois University in DeKalb. In addition, Waubonsee Community College District No. 516 (the "College") offers a wide variety of transfer, vocational, continuing and community education, children's and corporate development and training classes. It has 24 programs designed for transfer to senior institutions, and also offers occupational -oriented programs ranging in length from one semester to two years. The College recently opened a state-of-the-art academic computing center that houses eight classrooms and a 120 personal computer work station open lab. SOCIOECONOMIC INFORMATION Employment Following are lists of large employers located in the City and in the surrounding area. Major City Employers(1) Name BusineWService Wrigley Manufacturing Co . ........ ........_............................. ..................... Sugar Confections, Bubble Gum, and Candy ....................................... RagingWaves (Seasonal) ..................................... ......... I .... .......-,_-.. Water Park......,...................................,................................................. SuperTarget.......................................................................................... Retail Store ......... ........................... .... -.-... .... - .... ,....... ..... ,...... JewelO8C0..............--.-........ ...... ,.... ,... ............................... .-....--............ Grocery Store ....... .... .............................................................-........,...... HomeDepot ........... -............ ......................... .... -... ....- .... ...... ,.... .......... Home Improvement Store ...... .......... .............. .........-.................. ........... Menards Mega Store..... ............................. ........ ..... .......................... ...- Home Improvement Store..................................................................... Newlyweds Foods................................................................................. Food Seasonings, Cures and Binders ...................... ......_.-............. ...... BrightFarms ............. ........ ,.... ........ ...... -..-._ ... ............... ......................... Agricultural Production..................,....... ,---...... .... ........._...................... WheatlandTtle.-....... -..................... .... -................... ......... .-...-.............. Title Company...,.............................................................................. Midwest Refrigerated Services ... ........ .....- .--.... .............. .................... Frozen and Refrigerated Food Warehouse- .._. ... .. ........ ....................... Note: (1) Source: the City's Annual Comprehensive Finarcial Report for the fiscal year ended April 30, 2025. Approximate Employment 516 490 273 185 140 136 125 108 87 86 31 Unfired Ory of'Yorkmile, Kendall Counn, Iiiinou Special Semre Area No. 2004-104 Special Tas Refimding Ronds, Series 2025 Major Area Employeii Approximate Location Name Product/Service Employment Aurora ... .... ..... .............. .... ..Rush -Copley Medical Center..,...,................................ Full -Service Hospital ....... .................. ......... ........ - ................ ....... 2,200 Aurora................................School District Number 131........... ..................-...... ,.... School System ........ ....,-.... -......... ......... ............................ -.-..-.-, 1,555 Aurora... ......... ... ..... School District Number 129... -............. ...................... School System ... ..... ,....... ....................... ..........-.-- ... ......... ........., 1.550 Aurora... ........................ .... CitycfAurora.---........,............................,..................-.-Government....................,..............-.-.......................................... 1,264 Aurora... .... .... ........ ..... Prime Healthcare Mercy Medical Center..................... Medical and Psychiatric Hospital ....... .... ,... ......... .-........ ............. , 1,250 Aurora................................School District Number 204........ .................... ....-....... School System ................. -... ........-...................... ......... ..... I .... .... 1,200(2) Aurora................................Hollywood Casino ................ ...-....-.-.................... ......... Riverboat Casino -.-............................................ .......--...,........ 1,000 Plano .................................Midwest Manufacturing, Inc.........-............................... Millwork.. ... ............................. .... .........--............. ....... ................. . 1,000 Aurora.............................MetLife, Inc.. .... ......... ,,.....-.--....-...,..,........... .............. Insurance and Financial Services ....... ,........ .........-..-.................. 800 Montgomery............. ........ Carl Buddig & Co---.--... .... ,... ,........ .......... ,............ ,...-- Food Processor ... ................... .................-.........,......................... 600 Aurora ..................... ...... Old Second Bancorp, Inc....,,..............-........,..-..,........ Corporate Headquarters; Personalized Business Banking ... ... - 500 Montgomery .......................Performance Food Group, Inc. .......................... ....-..... Wholesale Food ... .............. ,.... ........ ..-.-.-..,.... ,....... .................... ... 435 Aurora................................ATMI Precast, Inc................,....................................... Concrete Products....-.-.-.-.... ........ .... ,... .................. ..... .....,----... .. 400 Aurora ... .......... ................... Entegris, Inc. ,.............-..... .............. ............................ ,. Polishing Equipment...... ..... .................. ................. I .... ,... ........ .... 400 Montgomery .............. ......... Core -Mark .... ,......... .................... ,........ ........ ................ Wholesale Tobacco and Confectionery .... ................... .... ..-.-1.... 400 Morris ... ............... ........... ...Equistar Chemicals LP _..... ... ,............. ....................... ,. Plastic Materials .... ............................... -............ - ............ .... ,...... 400 Plainfield ......... ................._Diageo North America, Inc ................... ,... ,-.- -..-,........., Gin and Vodka Distilling. -... ....................... ............. ..... ,... ......-..-. 400 Notes: (1) Source: 2025 Illinois Manufacturers Directory, 2026 Illinois Services Directory and a selective telephone survey. (2) Administrative office and majority of school sites located in the City of Aurora- Limited number of school sites located In adjacent areas. The following tables show employment by industry and by occupation for the City, the County, and the State as reported by the U.S. Census Bureau 2019-2023 American Community Survey 5-year estimated values. Employment By Industry(]) The City Classification Number Percent Agriculture, Forestry, Fishing, Hunting, and Mining ........................ 96 0.8% Construction.................................................................................... 865 7.2% Manufacturing................................................................................. 1,464 12.2% Wholesale Trade............................................................................. 407 3.4% Retail Trade.................................................................................... 1,546 12.9% Transportation and Warehousing, and Utilities ............................... 1,066 8.9% Information................................................................................ .... 137 1.1% Finance, Insurance, Real Estate, and Rental and Leasing ............. 463 3.8% Professional, Scientific, Management, Administrative, and Waste Management Services ................................................ 1,529 12.7% Educational, Health and Social Services ........................................ 2,499 20.8% Entertainment and Recreation Services, Accommodation and Food Services........................................................................ 1,285 10.7% Other Services (except Public Administration) ................................ 275 2.3% Public Administration....................................................................... 396 3.3% Total........................................................................................... 12,028 100.0% The County Number Percent 451 0.6% 5,054 7.0% 7,108 9.9% 2,272 3.2% 9,276 12.9% 5,500 7.7% 1,117 1.6% 4,593 6.4% The State Number Percent 64,288 1.0% 338,825 5.4% 728,327 11.6% 168,508 2.7% 650,779 10.4% 433,291 6.9% 103,644 1.7% 462,565 7.4% 7,890 11.0% 794,813 12.7% 17,506 24.4% 1,470,742 23.5% 6,038 8.4% 516,702 8.3% 2,442 3.4% 285,896 4.6% 2,580 3.6% 234,863 3.8% 71,827 100.0°/n 6,253,243 101 Note: (1) Source: U.S. Bureau of the Census. American Community Survey, 2019 to 2023 estimates Employment By Occupation(1) The City _ The County Classification Number Percent Number Percent Management, Business, Science and Arts .................................... 5,028 41.8% 30,296 42.2% Service........................................................................................... 1,839 15.3% 10,561 14.7% Sales and Office............................................................................ 2,369 19.7% 14,778 20.6% Natural Resources, Construction, and Maintenance ...................... 1,187 9.9% 5,837 8.1% Production, Transportation, and Material Moving ........................... 1,605 13.3% 10,355 14A%n Total ............................. _-----..................................... .................. 12,028 100.0% 71,827 100.0% Note: (1) Source: U.S. Bureau of the Census. American Community Survey, 2019 to 2023 estimates. The State Number Percent 2,660,678 42.5% 996,806 15.9% 1,235,237 19.8% 443,661 7.1 % _916,861 14.7% 6,253,243 100.0% 32 United Gryof Yo&vllle, Kendall Coun(p, Illinois Special Semre Area No. 2004-104 Sperial Tar Rejundmg Bonds, Senes 2025 Building Permits Annual Average Unemployment Rates(]) Calendar The The The Year City_ Coun State 2021........................... 5.2% 5.1% 6.1% 2022........................... 3.9% 4.0% 4.6% 2023........................... 4.3% 4.5% 4.5% 2024........................... 4.2% 4.5% 5.0% 2025(2) ....................... NIA 4.5% 4.7% Notes: (1) Source: Illinois Department of Employment Security. (2) Preliminary rates for September 2025. City Building Permits(]) Residential Construction Residential Construction Total Fiscal Commercial Construction Single- Family Multi -Family Permits Year Permits Issued Value Permits Issued Value Permits Issued Value issued Value 2021 ..... 8 $ 1,044,324 272 $41,739,549 118 $13,588,257 398 $56,372,130 2022..... 7 3,016,607 210 34,888,478 148 18,461,906 365 56,366,991 2023..... 7 1,680,000 197 34,027,249 141 19,776,340 345 55,483,589 2024..... 11 79,021,008 273 49,680,329 109 12,910,500 393 141,611,837 2025..... 7 29,188,704 141 24,603,938 42 5,846,000 190 59,638,642 Note: (1) Source: the City's Annual Comprehensive Financial Reports for the fiscal years ended April 30, 2021 to April 30, 2025. Housing The U.S. Census Bureau 5-year estimated values reported that the median value of the City's owner -occupied homes was $314,200. This compares to $298,900 for the County and $250,500 for the State. The following table represents the five year average market value of specified owner -occupied units for the City, the County and the State at the time of the 2019-2023 American Community Survey. Value Less than $50,000 ................ $50,000 to $99,999............... $100,000 to $149,999........... $150,000 to $199,999........... $200,000 to $299,999........... $300,000 to $499,999, ....... - $500,000 to $999,999.......... . $1,000,000 or more .............. TotaI .................................... Home Values(]) The City Number Percent 207 3.2% 9 0.1% 164 2.6% 462 7.2% 2,003 31.4% 3,169 49.7% 359 5.6% 0 0.0% 6,373 100.0% Note: (1) Source: 2019-2023 ACS. Value Housing Units with a Mortgage ......................... Housing Units without a Mortgage._.... ............. Total................................................................ Note: (1) Source: 2019-2023ACS. The County _ Number Percent 695 1.9% 203 0.5% 738 2.0% 3,164 8.4% 14,101 37.6% 16,116 43.0% 2,274 6.1 % 189 0.5% 37,480 100.0°% Mortgage Status (1) The City Number Percent 5,099 80.0% 1,274 20.0% 6,373 100.0% The State Number Percent 179,713 5.4% 293,418 8.8% 373,012 11.2% 402,625 12.0% 796,642 23.8% 836,453 25.0% 373,844 11.2% 87,327 2.6% 3,343,034 100.0% The County Number Percent 29,097 77.6% 8,383 22.4% 37,480 100.0% The State Number Percent 2,056,770 61.5% 1.286,264 38.5% 3,343,034 100.0% 33 United City of Yorkw(le. Kendait County, Wil wis Special Service Area No. 2004-104 Special Tar Refunding Bonds, Senes 2025 Income Per Capita Personal Income for the Highest Income Counties in the State(l) Ranking County 2019 to 2023 1....................................... OuPage County ............................ $57,051 2...................................... Lake County .................................. 55,756 3...................................... Monroe County.. ........................... 49,438 4..................................... McHenry County........................... 48,275 5...................................... Cook County .............................. 47,801 6 ...................................... Will County.................................... 46,216 7...................................... Kane County ................................. 46,013 8...................................... Grundy County.............................. 43,744 9...................................... Piatt County ........... ................... -- 43,547 10..................................... Kendall County ........................... 43,127 Note: (1) Source: 2019-2023ACS The following shows the median family income for certain counties in the Chicago metropolitan area. Ranldng of Median Family Income(]) Illinois Family Illinois County Income Rank DuPage County .................. $136,376 1 Lake County ....................... 132,828 2 Monroe County ................... 128,922 3 Will County ......................... 124,227 4 McHenry County ................ 121,624 5 Kendall County ................. 119,150 6 Kane County ...................... 116,477 7 Cook County... ................... 102,297 12 Note: (1) Source: 2019-2023 ACS The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of $121,672. This compares to $119,150 for the County and $103,504 for the State. The following table represents the distribution of family incomes for the City, the County and the State at the time of the 2019-2023 American Community Survey. Income Under $10,000...................... $10,000 to $14,999............... $15,000 to $24,999............... $25,000 to $34,999............... $35,000 to $49,999............... $50,000 to $74,999............... $75,000 to $99,999............... $100,000 to $149,999........... $150,000 to $199,999........... $200,000 or more ................. Total-- ............... - .............. Family Income M The City Number Percent 131 2.2% 0 0.0% 9 0.2% 31 0.5% 467 7.9% 871 14.6% 439 7.4% 1,571 26.4% 1,000 16.8% 1.429 24.0% 5,948 100.0% Note: (1) Source: 2019-2023ACS. The County Number Percent 658 1.9% 348 1.0% 351 1.0% 626 1.8% 1,671 4.8% 5,107 14.7% 4,538 13.1% 9,363 27.0% 5,609 16.2% 6,395 18.4% 34,666 100A% The State Number Percent 92,276 2.9% 49,504 1.6% 115,394 3.7% 144,347 4.6% 255,343 8.2% 440,350 14.1 % 413,051 13.2% 664,299 21.2% 404,823 12.9% 552,865 17.7% 3,132,252 100.0% 34 Un[red Cary of ForkAle, Kendall Coen•, 11haais Special Service Area ,No. 2004-104 Sper Tar Refunding Bonds, Series 2025 The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of $108,775. This compares to $110,474 for the County and $ $81,702 for the State. The following table represents the distribution of household incomes for the City, the County and the State at the time of the 2019-2023 American Community Survey. Income Under $10,000...................... $10,000 to $14,999............... $15,000 to $24,999............... $25,000 to $34.999............... $35,000 to $49,999............... $50,000 to $74,999............... $75,000 to $99,999............... $100,000 to $149,999......... - $150,000 to $199,999........... $200,000 or more ... ........__- Total.................................... Household Income (I) The City Number Percent 88 1.1% 16 0.2% 350 4.4% 191 2.4% 532 6.7% 1,508 19.0% 668 8.4% 1,990 25.0% 1,111 14.0% 1 492 18.8% 7,946 100.0% Note: (1) Source: 2019-2023ACS. Retail Activity The County Number Percent 1,020 2.3% 404 0.9% 989 2.2% 1,242 2.8% 2,524 5.7% 7,416 16.7% 6,189 13.9% 11,237 25.2% 6,346 14.3% 7,159 1 E3.1 % 44,526 100.0% The State Number Percent 262,472 5.2% 167,954 3.4% 312,209 6.2% 325,873 6.5% 493,412 9.9% 755,975 15A % 637,303 127%a 896,614 17.9% 494,802 9.9% 655,290 13.1 % 5,001,904 100.0% The table below shows the distribution of the municipal portion and Home Rule portion of the Retailers' Occupation, Service Occupation and Use Tax ("Sales Tax") collected by the Department from retailers within the City. The table indicates the level of retail activity in the City. Retailers' Occupation, Service Occupation and Use Tax(1) State Fiscal Year Municipal Non -Home Rule Annual Percent Ending June 30 Sales Tax(2) Sales Tax 3 Total Change + H 2016........................ $2,778,116 $2,126,851 $4,904,967 2.56%(4) 2017........................ 2,940,976 2,259,787 5,200,763 6.03% 2018........................ 3,002,133 2,282,976 5,285,109 1.62% 2019........................ 3,070,663 2,323,307 5,393,970 2.06% 2020........................ 3,217,426 2,372,845 5,590,271 3.64% 2021........................ 3.622,191 2,688,544 6,310,735 12.89% 2022........................ 4,450,012 3,431,696 7,881,708 24.89% 2023........................ 4,618,030 3,700,766 8,318,795 5.55% 2024........................ 4,873,592 3,747,232 8,620,823 3.63% 2025........................ 5,375,086 4,059,994 9,435,080 9.45% Growth from 2016 to 2025 92.36% Notes: (1) Source: the Department. (2) Tax distributions are based on records of the Department relating to the 1 % municipal portion of the Retailers' Occupation, Service Occupation and Use Tax, collected on behalf of the City. The municipal 1 % includes tax receipts from the sale of food and drugs which are not taxed by the State. (3) Non -home rule municipalities by referendum may tax sales except of food and drugs in the amount of 0,25%, 0.50%, 0.75% or 1.0%, less a State administration fee. The City's non - home rule sales tax was approved in the amount of 1.0%. Amounts shown are net of State administration fees. (4) The 2016 percentage is based on a 2015 sales tax of $4,782,712. 35 United City oy Yorkville. Kenduli Counuy, Iignois Special Service Area Nu. 2004-164 Special Tar Refunding Bonds, Series 202T Income Tax The following table shows the distribution of the municipal portion of the State Income Tax collected by the State and distributed through the Local Government Distributive Fund by the State Comptroller over the past five fiscal years. Income Tax Revenue History(1) Income Tax Fiscal Revenues Year Distributions 2021................................................................. $2,470,986 2022................................................................. 3,175, 556 2023..................... .... .................................. --- . 3,355,846 2024................................................................. 3,587,615 2025................................................................ 3,826, 828 Note: (1) Source: the City's Annual Comprehensive Financial Reports for the fiscal years ended April 30, 2021 to April 30, 2025. PROPERTY ASSESSMENT AND TAX INFORMATION For the 2024 levy year, the City's EAV was comprised of 87.37% residential, 999% commercial, 1.88% industrial, and less than 1 % farm and railroad property valuations. Equalized Assessed Valuation(])(2) Levy Years Property Class: 2020 2021 2022 2023 2024 Residential .......................... $484,024,398 $524,668,429 $594,475,190 $687,120,031 $802,816,701 Farm .................................... 3,360,133 3,524,082 3,936,704 4,209,199 6,857,723 Commercial ......................... 79,649,698 79,815,145 80,620,321 87,102,531 91,833,842 Industrial ............................. 15,586,411 15,512,284 15,925,318 16, 551,850 17,240, 090 Railroad ............................... 75,859 77,628 90,328 101,044 125,091 Total .................................. $582,696,499 $623,597,568 $695,047,861 $795,084,655 $918,873,447 Percent Change ................ 5.26%(3) 7.02% 11,46% 14.39% 15.57% Notes: (1) Source: The County Clerk. (2) Excludes TIF valuations. (3) Percentage change based on 2019 EAV of $553,579,496. 36 United City of Yorkville, Kendall Cowin, Illinois Special Service Area No. 2004-104 Speriul Tat ReJGridirig Bonds, Senes 2025 Representative Tax Rates(]) (Per $100 EAV) 2020 2021 2022 2023 2024 City Rates: Corporate................................................................................ $0.1694 $0.1579 $0.1417 $0.1239 $0,1072 Police Protection..................................................................... 0.1484 0,1596 0.1625 0.1597 0.1394 Police Pension........................................................................ 0.2291 0.2141 0.1984 0.1744 0.1596 Audit........................................................................................ 0.0051 0.0048 0.0043 0,0038 0.0033 Liability Insurance................................................................... 0.0069 0.0064 0.0058 0.0050 0,0044 Social Securisty/IMRF............................................................... 0.0258 0.0241 0.0216 0.0189 0.0272 School Cross Guard................................................................ 0.0034 0.0032 0.0029 0.0025 0.0000 Revenue Recapture................................................................ 0.0000 0.0009 0.0006 0.0040 0.0005 Total City Rate(2).................................................................. $0.5880 $0.5710 $0.5377 $0.4921 $0.4415 Kendall County........................................................................ 0.6232 0.6016 0.5908 0.5671 0,5281 Kendall County Forest Preserve ....................... ......... I ...... I .... . 0.1582 0.1620 0.1476 0.1426 0.1304 Bristol Township...................................................................... 0.0905 0.1535 0.1412 0.1280 0.1157 Bristol -Kendall Fire District... ................................................... 0.7159 0.7050 0.6988 0.6716 0.6241 Unit School District Number 115............................................. 6.9567 6.7867 6.6524 6.2178 5.7473 Community College District Number 516................................ 0.4378 0.4698 0.4642 0A515 0.4183 Yorkville Library ...................................................................... 0.2775 0.2678 0.2553 0.2350 0.1164 Total Tax Rate(3).................................................................. $9,8478 $9.7175 $9.4879 $8.9056 $8.1217 Notes: (1) Source: The County Clerk. (2) Statutory tax rate limits for the City are as follows: Corporate ($0.4375); Police Protection ($0.6000); School Grossing Guard ($0.0200). (3) Representative tax rates for other government units are from Bristol Township tax code 005, which represents the largest portion of the City's 2024 EAV, the most current available. Tax Extensions and Collections(]) (Excludes Road, Bridge and Library Levies) Levy Coll. Taxes Taxes Coliected(3) Year Year Extended(2) Amount Percent 2019........................2020..................... $3,337,703 $3,327,913 99.71%❑ 2020........................2021..................... 3,426,430 3,415,461 99.68% 2021........................2022..................... 3,560,742 3,552,451 99.77% 2022........................2023..................... 3,737.343 3,708,527 99.23% 2023........................2024..................... 3,912,373 3,912,307 100,00%❑ 2024 ........................2025 ..................... 4,056,642 In Collection Notes: (1) Source: The County Clerk and the City. (2) Tax extensions have been adjusted for abatements. (3) Total Collections include back taxes, taxpayer refunds, interest, etc. Principal Taxpayers(]) Taxpayer Name Business/Service 2024 EAV(2) WrigleyManufacturing Co LLC............................................................... Gum ................................ .................................................. $ 5,053,396 Yorkville Mada LLC........................................................... .................... Real Property.................................................................... 4,217,504 Yorkville Marketplace LLC......................................................................Yorkville Shopping Center................................................ 4,124,905 Yorkville Apartments Holdings LLG......................................................... Apartments....................................................................... 3,770,123 MenardInc............................................................................................. Retail ....................... --........................................................ 3,225,137 Fox River Essential Housing LLC........................................................... Affordable Housing Investments....................................... 2,784,071 Cedarhurst of Yorkville Real Estate LLC................................................. Senior Housing Options.................................................... 2,660,788 TargetCorporation.................................................................................. Retail................................................................................. 2,050,529 Alliance Development Corp..................................................................... Real Property................................................................. 2,017,346 Illinois Greenhouse LLC.......................................................................... Greenhouse ................. ............... ................................. - 1,970,046 Total................................................................................................................................................................................................ $31,873,845 Ten Largest Taxpayers as Percent of City's 2024 EAV($918,873,447) .......................................................................................... 3.47% Note: (1) Source: Kendall County Assessment Office, except for taxpayer descriptions which are based on publicly available information available to the City. (2) Every effort has been made to seek out and report the largest taxpayers. However, many listed taxpayers contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. The 2024 EAV is the most current available. 37 United OrY of Yorkolle, Kendall Counn6 lflsmn,v Sperms Service Area Nu. 2004 104 Special Tat Refunding Bonds, Serio 2025 TAX INCREMENT FINANCING DISTRICTS LOCATED WITHIN THE CITY A portion of the City's EAV is contained in TIF districts. When a TIF district is created within the boundaries of a taxing body, such as the City, the EAV of the portion of real property designated as a TIF district is frozen at the level of the tax year in which it was designated as such (the "Base EAV"). Any incremental increases in property tax revenue produced by the increase in EAV derived from the redevelopment project area during the life of the TIF district are not provided to the City until the TIF district expires. The current TIF districts are described below. The 2024 TIF incremental EAV in the City is $10,909,321. The City is not aware of any new TIF districts planned in the immediate future. Tax Increment Financing Districts Located Within the City(1) Base 2024 Net Net Base 2024 TIF Name of TIF Year Taxable Value EAV Increment Countryside TIF ............................... 2003 $4,183,139 $1,263,910 $ 2,919,229 Yorkville Downtown TIF.................... 2005 7,532,575 2,963,037 4,569,538 Yorkville Downtown 2 TIF................. 2016 7.859.743 4,439,189 3,420,554 Total................................................................................................................................ $ 10,909,321 2024 City EAV................................................................................................................. $918 873,447 TotalEAV............... -.................... --............................. ---................................................. $929,782,768 Note: (1) Source: The County Clerk and the City. RISK FACTORS Investment in the Bonds involves risks which may not be appropriate for certain investors. The following is a discussion of certain risk factors which should be considered, in addition to other matters set forth in this Official Statement, in evaluating the Bonds. This discussion does not purport to be comprehensive or definitive. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of property owners on the Area to pay their Special Taxes when due. Such failures to pay Special Taxes could result in the inability of the City to make full and punctual payments of debt service on the Bonds. In addition, the occurrence of one or more of the events discussed herein could adversely affect the value of the property on the Area. Limited Source of Funds The Bonds, together with the interest thereon, are limited obligations of the City, payable solely from the Special Taxes and the amounts on deposit in certain of the funds and accounts established and maintained under the Trust Indenture, all as more fully set forth therein. The Bonds are not general obligations of the City and do not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation. No Bondholder shall have the right to compel the exercise of any taxing power of the City for payment of principal thereof or interest or premium, if any, thereon. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS - General" herein. Overlapping Indebtedness The Special Taxes and any penalties assessed for failure to pay such Special Taxes will constitute a lien against the parcels of land on which they will be levied until such Special Taxes are paid. Such lien will be on a parity with all special taxes and special assessments which may be levied by other agencies and the lien for general ad valorem real property taxes regardless of when they are imposed upon the same property. The City, however, has no control over the ability of other entities and districts to issue indebtedness secured by special taxes or assessments payable from all or a portion of the property within the Area. 38 Ueiled Cln• of Yorkville, Kendall County, lilbroas Special Service Area No. 2004-I04 Special Tax Refunding Bonds, Series 2025 The ability of an owner of land within the Area to pay the Special Taxes could be adversely affected if additional debt is issued or additional taxes or assessments are levied which are payable by the owners of land within the Area. The imposition of additional liens, whether public or private, may reduce the ability or willingness of the landowners to pay the Special Taxes. Tax Delinquencies In order to pay debt service on the Bonds, it is necessary that the Special Taxes be paid in a timely manner. Under provisions of the Special Service Area Act, the Special Tax, from which funds necessary for the payment of principal of, and interest on, the Bonds are derived, are customarily billed to the property owners within the Area on the regular general ad valorem property tax bills sent to owners of such properties or on a special tax bill delivered at the same time as the regular ad valorem property tax bills. Such Special Tax installments are due and payable, and bear the same penalties and interest for nonpayment, as do general ad valorem property tax installments. The unwillingness or inability of a property owner to pay ad valorem property tax bills as evidenced by general ad valorem tax delinquencies may also indicate an unwillingness or inability to make general ad valorem tax payments and Special Tax installment payments in the future. If property owners fail to pay the Special Tax when due, there could be significant special tax delinquencies. Also, the Kendall County Collector may not be willing to bill the property owners in the Area the Special Tax on their regular ad valorem property tax bills or if the Kendall County Collector is willing to bill the property owners in the Area the Special Tax on their regular ad valorem property bills today, the Kendall County Collector may not be willing to do so in the future. In that event, the responsibility to bill and collect Special Tax would become the City's responsibility under the Special Tax Report. However, the City has limited its obligation to pay for the costs of billing and collecting to amounts on deposit in the Administrative Expense Fund. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS" for a discussion of the provisions which apply, and procedures which the City is obligated to follow under the Trust Indenture, in the event of delinquencies in the payment of Special Taxes. See "RISK FACTORS - Potential Delay and Limitations in Foreclosure Proceedings" and "- Bankruptcy" below, for a discussion of limitations on the City's ability to foreclose the lien of delinquent unpaid Special Taxes in certain circumstances. Potential Delay and Limitations in Foreclosure Proceedings The ability of the City to foreclose the lien of a delinquent unpaid Special Tax may be limited by bankruptcy, insolvency and other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. See "RISK FACTORS - Bankruptcy". In addition, the prosecution of a foreclosure could be delayed due to many reasons, including crowded local court calendars or lengthy procedural delays. The ability of the City to foreclose the lien of a delinquent unpaid Special Tax payment may be limited with regard to properties in which the FDIC or any successor to the FDIC may acquire an interest. The FDIC currently does not have an interest in the land within the Area. However, if a lender takes a security interest in property in the Area and becomes insolvent, such a lender could fall under the jurisdiction of the FDIC. The FDIC could assert federal preemptive power to challenge any prior taxes, special taxes and assessments where it is in their interest to do so, including the requirement that local agencies obtain the consent of the FDIC in order to foreclose the lien of delinquent Special Taxes. Wt United On of York ille, Kendall Counrv. Iflinnis Sperial Service Area No. 2004-10-4 Special Tat Refunding Bonds. Series 2025 If the City is required to obtain the consent of the FDIC to foreclose on property located in the Area, such consent could be denied and the City might be unable to pursue foreclosure proceedings. Additionally, obtaining such consent could delay the foreclosure proceedings. Any delay in foreclosure proceedings or the inability of the City to foreclose on property in the Area in which the FDIC has an interest could result in a delay or default in payment of the Bonds. In addition, potential investors should be aware that judicial foreclosure proceedings are not summary remedies and can be subject to significant procedural and other delays caused by crowded court calendars and other factors beyond the control of the Area or the City. In addition, the Illinois Constitution prescribes certain minimum redemption periods, which may be as long as three years, in the event of foreclosure. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS". It should be assumed that under current conditions, it is estimated that a judicial foreclosure of the lien of the Special Tax could take several years from initiation of litigation to the lien foreclosure sale. Delays and uncertainties in the Special Tax lien foreclosure process create significant risks for Bondowners. High rates of Special Tax payment delinquencies which continue during the pendency of protracted Special Tax lien foreclosure proceedings, could result in the rapid, total depletion of the Reserve Fund prior to replenishment from the resale of parcels in the Area upon foreclosure. In that event, there could be a default in payments of the principal of, and interest on, the Bonds. Condemnation There may be an occasion where property within the Site is acquired by a unit of government through condemnation. When this occurs, the unit of government that acquired the property may seek to have the property declared exempt from taxation under the general exemption provisions of the Illinois Property Tax Code. A declaration that a property is exempt from taxation under these provisions does not, however, extend to special assessments. Notwithstanding the inapplicability of general exemption laws to special assessments, special assessments have been declared invalid where the property to be assessed is either owned by the State or the United States Government. In addition, there is no assurance that future legislation will not be considered or enacted which will extend these general exemption provisions to special assessments or that judicial interpretations of existing Illinois law relating to the inapplicability of the general exemption provisions may be reconsidered or modified as to materially adversely affect the ability to collect the Special Tax from such properties owned by units of local government. Bankruptcy The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving legal opinion) will be qualified, as to the enforceability of the various legal instruments, by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. Although a bankruptcy proceeding would not cause the Special Taxes to become extinguished, the amount and priority of any Special Tax Lien could be modified if the value of the property falls below the value of the lien. If the value of the property is less than the lien, such excess amount could be treated as an unsecured claim by a bankruptcy court having jurisdiction. In addition, bankruptcy of a property owner could result in a delay in commencement and completion foreclosure proceedings. Such delay would increase the likelihood of a delay or default in payment of the principal of, and interest on, the Bonds and the possibility of delinquent tax Special Tax installments not being paid in full. MI United CIry of Yorkville, Kendall Caanrv, Illinois Special Serva e Area No, 2004-104 Special Tax Refunding $orhds, Series 2025 Loss of Tax Exemption Interest on the Bonds could become includible in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds as a result of a failure of the City to comply with certain provisions of the Code. Should such an event of taxability occur, the Bonds are not subject to early redemption and will remain outstanding to maturity or until redeemed under the optional redemption provision of the Trust Indenture. Factors Relating to Tax Exemption As discussed under "TAX EXEMPTION" herein, interest on the Bonds could become includible in gross income for purposes of federal income taxation, retroactive to the date the Bonds were issued, as a result of future acts or omissions of the City in violation of its covenants in the Bond Ordinance. Should such an event of taxability occur, the Bonds are not subject to any special redemption. There are or may be pending in the Congress of the United States legislative proposals relating to the federal tax treatment of interest on the Bonds, including some that carry retroactive effective dates, that, if enacted, could affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to Bonds issued prior to enactment. Finally, reduction or elimination of the tax-exempt status of obligations such as the Bonds could have an adverse effect on the City's ability to access the capital markets to finance future capital or operational needs by reducing market demand for such obligations or materially increasing borrowing costs of the City. The tax-exempt bond office of the Internal Revenue Service (the "Service") is conducting audits of tax-exempt bonds, both compliance checks and full audits, with increasing frequency to determine whether, in the view of the Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether the Service will commence any such audit. If an audit is commenced, under current procedures the Service may treat the City as a taxpayer and the Bondholders may have no right to participate in such proceeding. The commencement of an audit with respect to any tax-exempt obligations of the City could adversely affect the market value and liquidity of the Bonds, regardless of the ultimate outcome. Limited Secondary Market There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Occasionally, because of general market conditions, lack of current information, the absence of a credit rating for the Bonds or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. In addition, prices of issues for which a market is being made will depend on then prevailing circumstances. Such prices could be substantially different from the original purchase price. Secondary Market and Prices The Underwriter presently does not intend to engage in secondary market trading of the Bonds. The Underwriter is not obligated to engage in secondary trading or to repurchase any of the Bonds at the request of the Owners thereof. No assurance can be given that a secondary market for any of the Bonds will be available and no assurance can be given that the initial offering prices for the Bonds will continue for any period of time. 41 United OrYoyYoriille, Kendall Caurm, lAinois Specral Service Area No 2004-104 Special Tax Refunding Bonds, Series 2025 Risk of Legislative and Judicial Changes Future legislation, regulations, governmental or judicial interpretation of regulations or legislation or practices and procedures related to property tax assessment, levy, collections or distribution could have a material effect on the calculation or availability of the Special Tax. There is no assurance that legislation will not be considered or enacted in the future, and unless provision is made in such legislation for special service areas generally in Illinois, the generation of the Special Tax could be materially adversely affected. Information Not Verified Information concerning the Area has been obtained from the City, the Special Service Area Administrator., and other sources believed to be reliable, but much of that information involves predictions of future events, such as sales and ability of homeowners and other property owners to pay their share of the Special Tax; such information is, by its nature, not subject to verification. No Acceleration The Bonds are not subject to acceleration in the event of the breach of any covenantor duty under the Trust Indenture, including payment default. Maximum Parcel Special Taxes Pursuant to the Bond Ordinance, the City has levied the Special Tax in the maximum amounts permitted by the Special Tax Report. However, there is no assurance that the maximum amounts will at all times be sufficient to pay the amounts required to be paid by the Trust Indenture. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS -- The Special Tax" and "THE SPECIAL SERVICE AREA AND SPECIAL TAX — Special Service Area Special Tax Report". The Illinois State Legislature passed SB 107, which provides for an annual exemption amount from property taxes ranging from $2,500 to full exemption for veterans of the United States Military with a service -connected disability. The City cannot predict how, if at all, SB 107 will affect the City's collection of the Special Taxes. Disclosure to Future Purchasers The City has recorded the Establishing Ordinance for the property included in the Area in the Office of the Recorder of Deeds of Kendall County on or prior to the Date of Delivery and has recorded the Declarations of Consent in the Office of the Recorder of Deeds of Kendall County on or prior to the Date of Delivery. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will he made or, if made, that a prospective purchaser or lender will consider such Special Tax obligation in the purchase of single family homes or the lending of money thereon. Failure to disclose the existence of the Special Tax may affect the willingness and ability of future owners of land within the Area to pay the Special Tax when due. 42 United Cin of Yorkville, Kendail Counn+, 11knors Special Service Area No. 2004-104 Special Tar ReJPmding Bands, Series 2025 MUNICIPAL ADVISOR The City has engaged Speer Financial, Inc. as municipal advisor (the "Municipal Advisor") in connection with the issuance and sale of the Bonds. The Municipal Advisor is a Registered Municipal Advisor in accordance with the rules of the MSRB (as defined herein). The Municipal Advisor will not participate in the underwriting of the Bonds. The financial information included in the Official Statement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of financial information. The Municipal Advisor is not obligated to undertake any independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement, nor is the Municipal Advisor obligated by the City's continuing disclosure undertaking. UNDERWRITING Raymond James & Associates Inc., Naperville, Illinois (the "Underwriter") has agreed to purchase all but not less than all of the Bonds at a price of $ (reflecting the par amount of $ , less an Underwriter's discount of $ ). It is anticipated that delivery of the Bonds will occur on the date shown on the cover page hereof. The Bonds may be offered and sold to certain dealers (including the Underwriter or other dealers depositing the Bonds into investment trusts) at yields other than such public offering yields shown in the Official Statement, and such public offering yields may be changed, from time to time, by the Underwriter. LEGAL OPINIONS Legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal opinion of Croke Fairchild Duarte & Beres LLC, Chicago, Illinois, Bond Counsel. The proposed form of the opinion of Bond Counsel is included herein as APPENDIX E. Certain legal matters will be passed upon for the Underwriter by its counsel, Chapman and Cutler LLP, Chicago, Illinois; and for the City, by its counsel, Ottosen DiNolfo Hasenbalg & Castaldo, Ltd., Naperville, Illinois. REGISTRATION, TRANSFER AND EXCHANGE The Bonds will be issued in book -entry only form and DTC will act as securities depository for the Bonds. See "THE BONDS - Book -Entry -Only System". If for any reason the Bonds cease to be held in book -entry only form, the following information will be relevant. The Bonds, upon surrender thereof at the principal corporate trust office of the Trustee with a written instrument of transfer satisfactory to the Trustee, duly executed by the registered Owner or its duly authorized attorney, may, at the option of the registered Owner thereof, and upon payment by such registered Owner of any charges which the Trustee may make as provided in the Trust Indenture, be exchanged for an equal aggregate principal amount of Bonds of the same maturity and interest rate of any other Authorized Denominations. The Bonds shall be transferable only upon the Bond Register maintained by the Trustee in its capacity as Bond Registrar, at the corporate trust office of the Trustee, by the registered Owner thereof in person or by its attorney duly authorized in writing, upon surrender thereof at the principal corporate trust office of the Trustee, together with a written instrument of transfer satisfactory to the Trustee duly executed by the registered Owner or its duly authorized attorney. Upon the transfer of any such Bond the City shall cause the Trustee to issue in the name of the transferee a new Bond or Bonds of the same aggregate principal amount, maturity and interest rate as the surrendered Bond, of Authorized Denominations. 43 Un[red Ciry ujYorkmile, Kendall Couniv, Illinois Special Service Area No. 2004-104 Special Tar Refunding Buads, Series 2025 The City and the Trustee may deem and treat the person in whose name any Bond shall be registered on the Bond Register as the absolute Owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered Owner or upon its order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Trustee shall be affected by any notice to the contrary. In all cases in which the privilege of exchanging or transferring Bonds is exercised, the City shall execute and the Trustee shall authenticate and deliver Bonds in accordance with the provisions of the Indenture. All Bonds surrendered in any such exchanges or transfers shall forthwith be delivered to the Trustee and cancelled or retained by the Trustee. For every such exchange or transfer of Bonds, the City or the Trustee may charge a fee sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer. The Bond Registrar shall not be required to transfer or exchange Bonds (a) following the close of business on the Record Date preceding any Interest Payment Date, (b) for a period beginning 15 days before the sending of any notice of redemption, or (c) after notice calling any Bonds for redemption has been sent. TAX EXEMPTION Tax Exemption - Opinion of Bond Counsel The Internal Revenue Code of 1986, as amended (the "Code") contains provisions relating to the tax-exempt status of interest on obligations issued by governmental entities which apply to the Bonds. These provisions include, but are not limited to, requirements relating to the use and investment of the proceeds of the Bonds and the rebate of certain investment earnings derived from such proceeds to the United States Treasury Department on a periodic basis. These and other requirements of the Code must be met by the City subsequent to the issuance and delivery of the Bonds in order for interest thereon to be and remain excludable from gross income for purposes of federal income taxation. The City has covenanted to comply with such requirements. In the opinion of Bond Counsel, interest on the Bonds is not includable in gross income for purposes of federal income taxation under existing statutes, regulations, rulings and court decisions. The opinion of Bond Counsel is subject to the condition that the City complies with all applicable federal income tax law requirements that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon continues to be excluded from gross income. Failure to comply with certain of such requirements could cause the interest on the Bonds to be so includable in gross income retroactive to the date of issuance of the Bonds. The City has covenanted to comply with all such requirements. The opinion of Bond Counsel assumes compliance with these requirements. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the value of or the tax-exempt status of interest on the Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions or events. Interest on the Bonds is not treated as an item of tax preference for purposes of the federal alternative minimum tax; however, such interest is taken into account in determining the annual adjusted financial statement income of applicable corporations (as defined in Section 59(k) of the Code) for the purpose of computing the alternative minimum tax imposed on corporations. In addition to the matters addressed below, prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral tax consequences to certain taxpayers, including but not limited to, foreign corporations, certain S corporations, financial institutions, recipients of social security and railroad retirement benefits and property or casualty insurance companies. Bond counsel expresses no opinion regarding any other federal tax consequences relating to the Bonds or the receipt of interest thereon. Prospective purchasers of the Bonds should consult their own tax advisors as to the impact of these other tax consequences. 44 United Ory of Yorka4ile, Kendal! Gunn', 1lfiaor5 Sperial Service Area Vu. 2004-704 Special Tar Refunding Bands. Senes 2025 In the opinion of Bond Counsel, under the laws of the State of Illinois as enacted and construed on the date hereof, interest on the Bonds is not exempt from Illinois income taxes. Prospective purchasers should consult their own tax advisors as to the state and local tax consequences of investing in the Bonds. The opinion of Bond Counsel relies on certain factual representations made by the City. These factual representations include, but are not limited to, certifications by the City with respect to its reasonable expectations regarding the use and investment of Bond proceeds. Bond Counsel has not undertaken to verify these representations by independent investigation. The inaccuracy of any of these factual representations may result in interest on the Bonds being included in gross income for U.S. federal income tax purposes retroactive to the original issuance date of the Bonds. Bond Counsel's opinion will be based on existing law, which is subject to change, and any such change may be made with retroactive effect. No assurance can be given that future legislative or administrative changes, on either a prospective or retroactive basis, would not adversely affect the accuracy of the conclusions stated in such opinion. Bond Counsel assumes no duty to update or supplement its opinion to reflect any facts or circumstances that may thereafter come to Bond Counsel's attention, or to reflect any changes in law that may thereafter occur or become effective. The opinion is not binding upon the Service, the courts or any other taxing or other governmental authority. No assurance can be given that, if the matter were contested, a court would agree with the opinion and no rulings will be sought from the Service or from any other taxing authority with respect to any U.S. federal income tax consequences described in the opinion. Alternative Minimum Tax Interest on the Bonds is not treated as an item of tax preference for purposes of the federal alternative minimum tax. However, such interest is taken into account in determining the annual adjusted financial statement income of applicable corporations (as defined in Section 59(k) of the Code) for the purpose of computing the alternative minimum tax imposed on corporations. Deduction for Interest Paid by Financial Institutions to Purchase or Carry Tax -Exempt Obligations The Code, subject to limited exceptions not applicable to the Bonds, denies the interest deduction for indebtedness incurred or continued to purchase or carry tax-exempt obligations, such as the Bonds. With respect to banks, thrift institutions and other financial institutions, the denial to such institutions is one hundred percent (100%) for interest paid on funds allocable to the Bonds and any other tax-exempt obligations acquired after August 7, 1986. Reportable Payments and Backup Withholding The payments of interest on the Bonds will be reported to the Service by the payor on Form 1099 unless the holder is an "exempt person" under Section 6049 of the Code. A holder who is not an exempt person may be subject to "backup withholding" at a specified rate prescribed in the Code if the holder does not file Form W-9 with the payor advising the payor of the holder's taxpayer identification number. Holders should consult with their brokers regarding this matter. The payor will report to the holders and to the Service for each calendar year the amount of any "reportable payments" during such year and the amount of tax, if any, with respect to payments made on the Bonds. 45 Unked QrY of Yorkville, Kendall County, Illinois Special Service Area No. 2004-104 Speemi Tay Refunding Bonds, Senes 2025 CHANGES IN FEDERAL AND STATE TAX LAW Legislative or administrative actions and court decisions, at either the federal or state level, could have an impact on the treatment of interest on the Bonds for federal or state income tax purposes, and thus on the value or marketability of the Bonds. This could result from changes to federal or state income tax rates, changes in the structure of federal or state income taxes (including replacement with another type of tax), or otherwise. It cannot be predicted whether or in what form any such proposals may be enacted or whether if enacted such proposals would apply to bonds issued prior to enactment. In addition, regulatory or other actions are from time to time announced or proposed which, if implemented or concluded in a particular manner, could adversely affect the market value, marketability or tax status of the Bonds. It cannot be predicted whether any such regulatory or other actions will be implemented or whether the Bonds would be impacted thereby. Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation, regulatory initiatives or litigation. The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Blinds, and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory initiatives or litigation. Prospective purchasers of the Bonds should be aware that the ownership of tax-exempt obligations, such as the Bonds, may result in collateral federal income tax consequences. Such prospective purchasers should consult their own tax advisors as to the consequences of investing in the Bonds. CONTINUING DISCLOSURE To assist the Underwriter in complying with SEC Rule 15c2-12 promulgated by the Commission, pursuant to the Exchange Act (the "Rule"), the City will enter into a Continuing Disclosure Agreement (the "Disclosure Agreement") for the benefit of the owners (including beneficial owners) of the Bonds to be executed and delivered by the City on the date the Bonds are delivered. The Disclosure Agreement obligates the City to provide certain annual financial information and operating data relating to the City annually to the Municipal Securities Rulemaking Board (the "MSRB") and to provide to the MSRB notice of the occurrence of certain events with respect to the Bonds which are listed in the Rule. Information provided to the MSRB is required to be submitted through its Electronic Municipal Market Access system ("EMMA") or through any system that may be prescribed by the MSRB in the future. Within 240 days after the end of each fiscal year of the City (currently ending April 30) commencing with the fiscal year ending April 30, 2026, the City agrees to provide an Annual Report that will contain or incorporate by reference a copy of the annual report prepared by the Special Service Area Administrator showing the Special Taxes received, all disbursements from all Funds and Accounts administered under the Trust Indenture, including the balances in all Funds and Accounts relating to the Bonds and the Additional Special Services as of the end of such fiscal year, the collection of taxes, delinquencies, tax sales and foreclosures. The type of information comprising the annual financial information and the specific listed events are set forth in the form of the Disclosure Agreement attached hereto as APPENDIX I. A failure by the City to comply with the Disclosure Agreement will not constitute an event of default on the Bonds (although owners of the Bonds will have the right to compel performance of the obligations under the Disclosure Agreement). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer, or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the liquidity of the Bonds and their market price. 46 United Oy of Yorlroille, Kendali County, Iffiwis Spertal Service Area No. 2004-104 Spezia! Tax Refunding Bonds. Series 2625 NO LITIGATION On the date of delivery of and payment for the Bonds, the City will certify that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body, pending with respect to which the City has been served with process or is otherwise aware, or, to the knowledge of the officer of the City executing such certificate, threatened against the City affecting the existence of the City, or the titles of its officers to their respective offices or seeking to restrain or to enjoin the sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Bond Ordinance and/or the Trust Indenture, or the collection or application of the Special Taxes, or in any way contesting or affecting the validity or enforceability of the Bonds, the Bond Ordinance, the Trust Indenture or any action of the City contemplated by any of the said documents, or the collection or application of the Special Taxes, or in any way contesting the completeness or accuracy of the Bond Ordinance, the Trust Indenture or any amendments or supplements hereto, or contesting the powers of the City contemplated by any of said documents, nor, to the knowledge of the officer of the City executing such certificate, is there any basis therefor. INVESTMENT RATING S&P has assigned their rating of , to the Bonds, with the understanding that, upon delivery of the Bonds, a bond insurance policy will be issued by Such rating reflects only the views of such organization and any desired explanation of the significance of such rating should be obtained from the rating agency furnishing the same, at the following address: S&P Global Ratings, 55 Water Street, New York, New York 10041. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance such rating will continue for any given period of time or that such rating will not be revised downward or withdrawn entirely by the rating agency, if in the judgment of such rating agency, circumstances so warrant. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds. Except as may be required by the Disclosure Agreement described in "CONTINUING DISCLOSURE", the form of which is attached hereto as APPENDIX I, neither the City nor the Underwriter undertakes responsibility to bring to the attention of the owners of the Bonds any proposed change in or withdrawal of the rating or to oppose any such revision or withdrawal. MISCELLANEOUS The references, excerpts, and summaries of documents and statutes contained in this Official Statement do not purport to be complete statements of the provisions of such documents and statutes, and reference is made to all such documents and statutes for full and complete statements of their terms and provisions. The estimates, assumptions, statistical and financial information, and all other information contained in this Official Statement have been compiled from official and other sources believed to be reliable; however, none of such estimates, assumptions, or information is guaranteed by the City, the Special Service Area Administrator., or the Underwriter as to completeness or accuracy. Any statement made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, is set forth as such and not as a representation of fact; no representation is made that any of the estimates contained herein will be realized. The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official Statement nor any offer or sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or the Area since the date hereof. 47 United Qv tf Yorkwiile, Kendall County, lilkwis Special Sen4•e Area No. 20104-104 Special Tar Refunding Bonds, Series 2025 AUTHORIZATION We have examined this Official Statement dated December _, 2025 for the $3,675,000* Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 2025, believe it to be true and correct and will provide to the Underwriter on the date of issuance of the Bonds a certificate confirming that to the best of our knowledge, information, and belief, the information in the Official Statement, including any addenda thereto, was as of its date, and is on the date of issuance of the Bonds, true and correct in all material respects and does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. /s/ City Administrator UNITED CITY OF YORKVILLE Kendall County, Illinois 'Subject to change. /s/ Finance Director UNITED CITY OF YORKVILLE Kendall County, Illinois 48 APPENDIX A DEFINITIONS FROM TRUST INDENTURE APPENDIX B SPECIMEN MUNICIPAL BOND INSURANCE POLICY APPENDIX C SPECIAL TAX REPORT APPENDIX D THE SERVICING AGREEMENT APPENDIX E. PROPOSED FORM OF OPINION OF BOND COUNSEL APPENDIX F UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS FISCAL YEAR 2025 AUDITED FINANCIAL STATEMENTS APPENDIX G MAP OF THE AREA APPENDIX H LEGAL DESCRIPTION OF THE AREA APPENDIX I CONTINUING DISCLOSURE AGREEMENT Exhibit E Form of the Continuing Disclosure Agreement (See attached) 17 CONTINUING DISCLOSURE UNDERTAKING FOR THE PURPOSE OF PROVIDING CONTINUING DISCLOSURE INFORMATION UNDER SECTION (b)(5) OF RULE 15c2-12 This Continuing Disclosure Undertaking (this "Agreement") is executed and delivered by the United City of Yorkville, Kendall County, Illinois (the "Issuer") in connection with the issuance of the Issuer's $ Special Service Area No. 2004-104 Special Tax Refunding Bonds (Grande Reserve Project), Series 20_ (the "Bonds "). The Bonds are being issued pursuant to a bond ordinance adopted by the City Council of the Issuer on November 25, 2025 (as supplemented by a bond order, the "Ordinance "), and a Trust Indenture (the "Indenture "), dated as of , 20_, between the Issuer and U.S. Bank Trust Company, National Association, Chicago, Illinois, as trustee (the "Trustee "). In consideration of the issuance of the Bonds by the Issuer and the purchase of such Bonds by the beneficial owners thereof, the Issuer covenants and agrees as follows: 1. PURPOSE OF THIS AGREEMENT. This Agreement is executed and delivered by the Issuer as of the date set forth below, for the benefit of the beneficial owners of the Bonds and in order to assist the Participating Underwriters in complying with the requirements of the Rule (as defined below). The Issuer represents that it will be the only obligated person with respect to the Bonds at the time the Bonds are delivered to the Participating Underwriters and that no other person is expected to become so committed at any time after issuance of the Bonds. DEFINITIONS. The terms set forth below shall have the following meanings in this Agreement, unless the context clearly otherwise requires. Annual Financial Information means information described in Exhibit I attached hereto. Annual Financial Information Disclosure means the dissemination of disclosure concerning Annual Financial Information and the dissemination of the Audited Financial Statements as set forth in Section 4. Audited Financial Statements means the audited financial statements of the Issuer prepared Pursuant to the standards and as described in Exhibit I. Consultant means DTA, and its successors and assigns or any other firm selected by the Issuer to assist it in administering the Special Service Area and the extension and collection of Special Taxes pursuant to the Special Tax Report. Commission means the Securities and Exchange Commission. Dissemination Agent means any agent designated as such in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation, and such agent's successors and assigns. United City of Yorkville - CDU 4930-8453-6442 v2 10001906 EMMA means the MSRB through its Electronic Municipal Market Access system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule. Exchange Act means the Securities Exchange Act of 1934, as amended. Financial Obligation of the Issuer means a (i) debt obligation, (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation, or (iii) guarantee of (i) or (ii), provided, that such term does not include municipal securities as to which an Official Statement has been provided to the MSRB consistent with the Rule. year. Fiscal Year End means April 30 of each year, which is the last day of the Issuer's fiscal MSRB means the Municipal Securities Rulemaking Board. Official Statement means the Final Official Statement, dated , 2025, and relating to the Bonds. Participating Underwriter means each broker, dealer or municipal securities dealer acting as an underwriter in the primary offering of the Bonds. Reportable Event means the occurrence of any of the Events with respect to the Bonds set forth in Exhibit H. Reportable Events Disclosure means dissemination of a notice of a Reportable Event as set forth in Section 5. Rule means Rule 15c2-12 adopted by the Commission under the Exchange Act, as the same may be amended from time to time. Special Service Area means the United City of Yorkville Special Service Area Number 2004-104. Special Services has the meaning as set forth in the Indenture. Special Tax has the meaning as set forth in the Indenture State means the State of Illinois. Undertaking means the obligations of the Issuer pursuant to Sections 4 and 5. 3. CUSIP NUMBER. The CUSIP Numbers of the Bonds are set forth in Exhibit X. All filings required under this Agreement will be filed on EMMA under these CUSIP Numbers. If the Bonds are refunded after the date hereof, the Issuer will also make all filings required under this -2- Agreement under any new CUSIP Numbers assigned to the Bonds as a result of such refunding, to the extent the Issuer remains legally liable for the payment of such Bonds; provided, however, that the Issuer will not be required to make such filings under new CUSIP Numbers unless the Issuer has been notified in writing by the Participating Underwriter or the Issuer's financial advisor that new CUSIP Numbers have been assigned to the Bonds. The Issuer will not make any filings pursuant to this Agreement under new CUSIP Numbers assigned to any of the Bonds after the date hereof for any reason other than a refunding, as described in the previous sentence, including, but not limited to, new CUSIP Numbers assigned to the Bonds as a result of a holder of the Bonds obtaining a bond insurance policy or other credit enhancement with respect to some or all of the outstanding Bonds in the secondary market. 4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 8 of this Agreement, the Issuer hereby covenants that it will disseminate its Annual Financial Information and its Audited Financial Statements (in the form and by the dates set forth in Exhibit 1) to EMMA in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information and by such time so that such entities receive the information by the dates specified. MSRB Rule G-32 requires all EMMA filings to be in word -searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. If any part of the Annual Financial Information can no longer be generated because the operations to which it is related have been materially changed or discontinued, the Issuer will disseminate a statement to such effect as part of its Annual Financial Information for the year in which such event first occurs. If any amendment or waiver is made to this Agreement, the Annual Financial Information for the year in which such amendment or waiver is made (or in any notice or supplement provided to EMMA) shall contain a narrative description of the reasons for such amendment or waiver and its impact on the type of information being provided. 5. REPORTABLE EVENTS DISCLOSURE. Subject to Section 8 of this Agreement, the Issuer hereby covenants that it will disseminate in a timely manner (not in excess of ten business days after the occurrence of the Reportable Event) Reportable Events Disclosure to EMMA in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32 requires all EMMA filings to be in word -searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. Notwithstanding the foregoing, notice of optional or unscheduled redemption of any Bonds or defeasance of any Bonds need not be given under this Agreement any earlier than the notice (if any) of such redemption or defeasance is given to the Bondholders pursuant to the Ordinance. 6. CONSEQUENCES OF FAILURE OF THE ISSUER TO PROVIDE INFORMATION. The Issuer shall give notice in a timely manner to EMMA of any failure to provide Annual Financial Information Disclosure when the same is due hereunder. -3- In the event of a failure of the Issuer to comply with any provision of this Agreement, the beneficial owner of any Bond may seek mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Agreement. The beneficial owners of 25% or more in principal amount of the Bonds outstanding may challenge the adequacy of the information provided under this Agreement and seek specific performance by court order to cause the Issuer to provide the information as required by this Agreement. A default under this Agreement shall not be deemed a default under the Ordinance, and the sole remedy under this Agreement in the event of any failure of the Issuer to comply with this Agreement shall be an action to compel performance. 7. AMENDMENTS; WAIVER. Notwithstanding any other provision of this Agreement, the Issuer by ordinance authorizing such amendment or waiver, may amend this Agreement, and any provision of this Agreement may be waived, if: (a) (i) The amendment or waiver is made in connection with a change in circumstances that arises from a change in legal requirements, including without limitation, pursuant to a "no -action" letter issued by the Commission, a change in law, or a change in the identity, nature, or status of the Issuer, or type of business conducted; or (ii) This Agreement, as amended, or the provision, as waived, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (b) The amendment or waiver does not materially impair the interests of the beneficial owners of the Bonds, as determined either by parties unaffiliated with the Issuer (such as the Bond Counsel). In the event that the Commission or the MSRB or other regulatory authority shall approve or require Annual Financial Information Disclosure or Reportable Events Disclosure to be made to a central post office, governmental agency or similar entity other than EMMA or in lieu of EMMA, the Issuer shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending this Agreement. 8. TERMINATION OF UNDERTAKING. The Undertaking of the Issuer shall be terminated hereunder if the Issuer shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the Ordinance. The Issuer shall give notice to EMMA in a timely manner if this Section is applicable. 9. FUTURE CHANGES TO THE RULE. As set forth in Section 1 of this Agreement, the Issuer has executed and delivered this Agreement solely and only to assist the Participating Underwriter in complying with the requirements of the Rule. Therefore, notwithstanding anything in this Agreement to the contrary, in the event the Commission, the MSRB or other regulatory authority shall approve or require changes to the requirements of the Rule, the Issuer shall be permitted, but shall not be required, to unilaterally modify the covenants in this Agreement, without complying with the requirements of Section 7 of this Agreement, in order to comply with, -4- or conform to, such changes. In the event of any such modification of this Agreement, the Issuer shall file a copy of this Agreement, as revised, on EMMA in a timely manner. 10. DISSEMINATION AGENT. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. 11. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Agreement or any other means of communication, or including any other information in any Annual Financial Information Disclosure or notice of occurrence of Reportable Event, in addition to that which is required by this Agreement. If the Issuer chooses to include any information from any document or notice of occurrence of a Reportable Event in addition to that which is specifically required by this Agreement, the Issuer shall have no obligation under this Agreement to update such information or include it in any future disclosure or notice of occurrence of a Reportable Event. If the Issuer is changed, the Issuer shall disseminate such information to EMMA. 12. BENEFICIARIES. This Agreement has been executed in order to assist the Participating Underwriters in complying with the Rule; however, this Agreement shall inure solely to the benefit of the Issuer, the Dissemination Agent, if any, and the beneficial owners of the Bonds, and shall create no rights in any other person or entity. 13. RECORDKEEPING. The Issuer shall maintain records of all Annual Financial Information Disclosure and Reportable Events Disclosure, including the content of such disclosure, the names of the entities with whom such disclosure was filed and the date of filing such disclosure. 14. ASSIGNMENT. The Issuer shall not transfer its obligations under the Ordinance unless the transferee agrees to assume all obligations of the issuer under this Agreement or to execute an Undertaking under the Rule. 15. GOVERNING LAW. This Agreement shall be governed by the laws of the State. -5- UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLMOIS Date: , 2025 Mayor [CONTINUING DISCLOSURE UNDERTAKING] EXHIBIT I ANNUAL FINANCIAL INFORMATION AND TIMING AND AUDITED FINANCIAL STATEMENTS All or a portion of the Annual Financial Information and the Audited Financial Statements as set forth below may be included by reference to other documents which have been submitted to EMMA or filed with the Commission. If the information included by reference is contained in a Final Official Statement, the Final Official Statement must be available on EMMA; the Final Official Statement need not be available from the Commission. The Issuer shall clearly identify each such item of information included by reference. a. ANNUAL FINANCIAL INFORMATION: "Annual Financial Information" means the annual report prepared by the Consultant showing the Special Taxes received, all disbursements from the Funds and Accounts administered by the Indenture, including the balances in all Funds and Accounts relating to the Bonds and the Special Services as of the end of such fiscal year, and the collection of taxes, delinquencies, tax sales and foreclosures and the payment of recapture to the Issuer and remitted to the Trustee for payment of the Bonds. 2. The Annual Financial Information will be submitted to EMMA within ten (10) business days of receipt thereof and not later than 240 days after the Issuer's Fiscal Year End. b. AUDITED FINANCIAL STATEMENTS: "Audited Financial Statements" means the general purpose financial statements of the Issuer prepared in accordance with generally accepted auditing standards and "Government Auditing Standards" issued by the Comptroller of the United States. Audited Financial Statements will be submitted to EMMA in such format and manner and accompanied by identifying information as is prescribed by the MSRB, at the same time as the Annual Financial Information. Audited Financial Statements as described above should be filed at the same time as the Annual Financial Information. If Audited Financial Statements are not available when the Annual Financial Information is filed, unaudited financial statements shall be included, and Audited Financial Statements will be submitted to EMMA within 30 days after availability to Issuer. If any change is made to the Annual Financial Information as permitted by Section 4 of the Agreement, the Issuer will disseminate a notice of such change as required by Section 4. EXHIBIT I EXHIBIT 11 EVENTS WITH RESPECT TO THE BONDS FOR WHICH REPORTABLE EVENTS DISCLOSURE IS REQUIRED 1. Principal and interest payment delinquencies 2. Non-payment related defaults, if material 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security 7. Modifications to the rights of security holders, if material 8. Bond calls, if material, and tender offers 9. Defeasances 10. Release, substitution or sale of property securing repayment of the securities, if material 11. Rating changes 12. Bankruptcy, insolvency, receivership or similar event of the Issuer* 13. The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material 15. Incurrence of a Financial Obligation, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Issuer, any of which affect security holders, if material 16. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation, any of which reflect financial difficulties This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the issuer in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Issuer, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Issuer. EXHIBIT II EXHIBIT III CUSIP NUMBERS CUSIP MATURITY NUMBER ( } U EXHIBIT III Exhibit F Form of the Escrow Agreement (See attached) 18 ESCROW DEPOSIT AGREEMENT THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS (SPECIAL SERVICE AREA NUMBER 2004-104 CENTRAL GRANDE RESERVE SPECIAL TAX BONDS, SERIES 2004 (MPI GRANDE RESERVE PROJECT)) THIS ESCROW DEPOSIT AGREEMENT, dated as of December , 2025, between THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as escrow agent, with its principal corporate trust office in the City of Chicago, Illinois, not individually, but in the capacity as hereinafter described, in consideration of the mutual promises and agreements herein set forth: WITNESSETH: ARTICLE I. DEFINITIONS The following words and terms used in this Agreement shall have the following meanings unless the context or use clearly indicates another or different meaning: 1.01 "Agreement " means this Agreement between the City and the Escrow Agent. 1.02 "Bond Ordinance " means the Ordinance adopted by the City Council of the City on November 25, 2025, as supplemented by a Bond Order executed by the President of the City, authorizing the issuance of the Series 2025 Bonds. 1.03 "City" means the United City of Yorkville, Kendall County, Illinois. 1.04 "Code " means Section 148 of the Internal Revenue Code of 1986, as amended, and all lawful regulations promulgated under that section. 1.05 "Escrow Account" means the trust account established under this Agreement by the deposit of the Government Obligations and the initial cash deposits. 1.06 "Escrow Agent" means U.S. Bank Trust Company, National Association, with its principal corporate trust office in Chicago, Illinois, or any successor thereto, not individually but acting as escrow agent under this Agreement. 1.07 "Government Obligations" means the Qualified Government Obligations deposited under this Agreement as more particularly described at Section 1.02 and Exhibit C of this Agreement. 1.08 "Indenture " means the Trust Indenture dated as of December 1, 2025 by and between the City and U.S. Bank Trust Company, National Association, as Trustee, pursuant to which the Series 2025 Bonds were issued. 1.09 "Qualified Government Obligations " means direct, noncallable, nonprepayable full faith and credit obligations of the United States of America (currently United States Treasury Bills, Notes, Bonds or STRPS or SLGS). 1.10 "Redemption Date " means January 14, 2026. 1.11 "Refunded Bonds" means the City's Special Service Area Number 2004-104 Central Grande Reserve Special Tax Bonds, Series 2004 (MPI Grande Reserve Project), issued by the City on December 29, 2004 under the Refunded Bonds Bond Ordinance and the Refunded Bonds Indenture, as more particularly described on Exhibit A attached hereto. 1.12 "Refunded Bonds Bond Ordinance" means the ordinance adopted by the City Council of the City on October 26, 2004 authorizing the issuance and delivery of the Refunded Bonds. 1.13 "Refunded Bonds Indenture " means the Trust Indenture dated as of December 1, 2004 by and between the City and the Refunded Bonds Trustee, pursuant to which the Refunded Bonds were issued. 1.14 "Refunded Bonds Trustee " means U.S. Bank Trust Company, National Association (as successor trustee to LaSalle Bank National Association), not individually but as trustee under the Refunded Bonds Indenture. 1.15 "Refunded Bonds Payment Requirement" means the payment when due of the principal of the Refunded Bonds upon the Redemption Date, and all interest on the Refunded Bonds through and including the Redemption Date. 1.16 "Series 2004 Deposit" means the amount of $ to be transferred and deposited by the Refunded Bonds Trustee into the Escrow Account from funds and accounts held by the Refunded Bonds Trustee under the Refunded Bonds Indenture. 1.17 "Series 2025 Bonds" means the City's Special Service Area Number 2004-104 Special Tax Refunding Bonds, Series 2025 (Grande Reserve Project), issued by the City on the date hereof pursuant to the Bond Ordinance and the Indenture. 1.18 "SLGS" means U.S. Treasury Obligations of the State and Local Government Series. 1.19 "Verification Report" means the report of the Verifier attached as Exhibit C that the principal of, interest on and profit realized from the Government Obligations, when received, together with the initial cash balance described below, will be sufficient at all times to pay when due all interest on and the principal of the Refunded Bonds from and after the date of this Agreement to the Redemption Date. 1.20 "Verifier" means -2- ARTICLE II. CREATION OF ESCROW ACCOUNT AND ESCROW DEPOSIT 2.01 The City adopted the Refunded Bonds Bond Ordinance and entered into the Refunded Bonds Indenture, which (among other things) authorized the original issue and delivery of the Refunded Bonds. The City is issuing the Series 2025 Bonds pursuant to the Bond Ordinance and the Indenture to defease and refund the Refunded Bonds prior to their maturity, and is depositing sufficient funds from the proceeds of the Series 2025 Bonds which, together with the Series 2004 Deposit, will provide all moneys necessary to pay when due the Refunded Bonds Payment Requirement. 2.02 The City has deposited, or caused to be deposited, into the Escrow Account (a) $ from the proceeds of the Series 2025 Bonds, and (b) the Series 2004 Deposit of $ and the aggregate amount of $ has been used to acquire the Government Obligations described in Exhibit C and to establish an initial cash balance of $ . The Escrow Agent shall transfer the amount of $ from the Escrow Account to the Refunded Bonds Trustee on the Redemption Date in order to provide sufficient funds to the Refunded Bonds Trustee to pay the principal of and all interest on the Refunded Bonds on the Redemption Date. 2.03 The Escrow Agent and the City have each received the Verification Report and the Verification Report demonstrates that principal of and income and profit to be received from the Government Obligations held pursuant to this Agreement, when paid at on the Redemption Date, and the initial cash deposit held in accordance with Section 2.04, will be sufficient, beginning on the date of this Agreement and thereafter at all times to pay the principal of and all interest on the Refunded Bonds through and including the Redemption Date. The Escrow Agent shall utilize the funds described above to pay debt service on the Refunded Bonds in accordance with the cash flow analysis attached to this Agreement as Exhibit E. ARTICLE III. COVENANTS OF ESCROW AGENT The Escrow Agent covenants and agrees with the City as follows: 3.01 The Escrow Agent will hold the Government Obligations and the cash deposit and all interest income or profit derived from them and all uninvested cash in the Escrow Account, which shall be an irrevocable, segregated and separate trust fund account for the sole and exclusive benefit of the holders of the Refunded Bonds until final payment of the Refunded Bonds. 3.02 From time to time hereafter, certain cash balances may exist in the Escrow Account. The Escrow Agent agrees, without further order or direction whatsoever, to reinvest such cash balances in SLGS having a zero rate of interest (yield). Investments so made shall be scheduled to mature on or prior to the next succeeding interest payment date on the Refunded Bonds on which such proceeds will be needed to pay the Refunded Bonds Payment Requirement. To the extent the -3- foregoing directions require the Escrow Agent to invest and reinvest in SLGS, the Escrow Agent will reinvest all available uninvested balances in the Escrow Account on deposit from time to time, whenever said balances exceed $1,000. As stated above, such investments shall, to the fullest extent possible, be in zero -yield SLGS. 1 Such investments shall be made only to the extent permitted by, and shall be made in accordance with, the applicable statutes, rules and regulations governing such investments issued by the Bureau of the Fiscal Service, U.S. Department of the Treasury. Such rules and regulations currently require that a subscription for purchase of SLGS be submitted at least 7 days (5 days for subscriptions of $10,000,000 or less) but no more than 60 days prior to the date of investment. 3.03 The Escrow Agent shall hold all balances not invested or reinvested as described above and on deposit in the Escrow Account on demand and in trust for the purposes of this Agreement and shall secure the same in accordance with applicable Illinois law for the securing of public funds. 3.04 The Escrow Agent will take no action in the investment or securing of the amounts in the Escrow Account held pursuant to this Agreement which would cause the Refunded Bonds to be classified as "arbitrage bonds" under the Code, provided, it shall be under no obligation to affirmatively inquire whether the Government Obligations held pursuant to this Agreement as deposited are properly invested under this section, and, provided, further, it may rely on all specific directions in this Agreement in the investment or reinvestment of balances held under this Agreement. 3.05 The Escrow Agent will promptly collect the principal, interest or profit from the Government Obligations held pursuant to this Agreement and, subject to reinvestment as provided in Section 3.02, promptly apply the same as necessary to the payment of the Refunded Bonds Payment Requirement when due. 3.06 The Escrow Agent will remit to the Refunded Bonds Trustee in good funds, on each date the Refunded Bonds Payment Requirement is due, moneys sufficient to pay the Refunded Bonds Payment Requirement due on that date, all as set out in the Verification Report, and such remittances shall fully release and discharge the Escrow Agent from any further duty or obligation under this Agreement with respect to amounts so remitted. ' If the Department of the Treasury (or the Bureau of the Fiscal Service) of the United States suspends the sale of SLGS so that the Escrow Agent is unable to purchase SLGS, then the Escrow Agent will take the following actions: On the date it would have purchased SLGS had it been able to do so, the Escrow Agent will purchase Qualified Government Obligations maturing not more than 90 days after the date of the purchase and in any case not later than the Maturity Date (the "Alternate Investment"). The purchase price of the Alternate Investment shall be as close as possible to the principal amount of the SLGS that would have been purchased on such date if they had been available for purchase. The Escrow Agent will purchase each Alternate Investment at a price no higher than the fair market value of the Alternate Investment and will maintain records demonstrating compliance with this requirement. On the maturity of each Alternate Investment, the Escrow Agent shall pay the difference between the total of the receipts on the Alternate Investment and the purchase price of the Alternate Investment to the City with a notice to the City that such amount must be paid to the Internal Revenue Service pursuant to Rev. Proc. 95-47. -4- 3.07 The Escrow Agent will make no payment of fees, due or to become due, of the Refunded Bonds Trustee, and the City has either paid such fees in advance as set forth in Section 3.08 or covenants to pay the same as they become due. 3.08 The fees of the Escrow Agent shall be paid by the City from time to time as statements are rendered in the ordinary course of business. The Escrow Agent is also providing trustee, bond registrar and paying agent services for the Series 2025 Bonds. The charges, fees and expenses of the Escrow Agent for any of its escrow agent, trustee, bond registrar or paying agent services will be paid by the City to the Escrow Agent separately and not from moneys held under this Agreement. The Escrow Agent shall have no lien or right of set-off of any kind on the Escrow Account and shall look solely to the City and its other funds for payment. 3.09 The Escrow Agent has all the powers and duties set forth in this Agreement with no liability in connection with any act or commission to act under this Agreement, except for its own negligence or willful breach of trust, and shall be under no obligation to institute any suit or action or other proceeding under this Agreement or to enter any appearance in any suit, action or proceeding in which it may be a defendant or to take any steps in the enforcement of its, or any, rights and powers under this Agreement, nor shall the Escrow Agent be deemed to have failed to take any such action, unless and until it shall have been indemnified by the City to the Escrow Agent's satisfaction against any and all costs and expenses, outlays, counsel fees and other disbursements, including its own reasonable fees, and if any judgment, decree or recovery is obtained by the Escrow Agent, payment of all sums due it, as aforesaid, shall be a first charge against the amount of any such judgment, decree or recovery. 3.10 The Escrow Agent may in good faith buy, sell or hold and deal in any of the Refunded Bonds. 3.11 The form and time of the giving of the notice of refunding of the Refunded Bonds shall be as specified in Sections 3.12 and 3.13 below. 3.12 The form and time of the giving of notice of redemption shall be as specified in Section 3.13 in accordance with the requirements of the Refunded Bonds Indenture on file with the Escrow Agent authorizing the issuance and specifying the terms of the Refunded Bonds and, further, as required by The Depository Trust Company ("DTC"), which is the registered owner of all of the Refunded Bonds through its nominee Cede & Co. The Escrow Agent acknowledges receipt of copies of the Refunded Bonds Bond Ordinance and the Refunded Bonds Indenture. The Escrow Agent, as Refunded Bonds Trustee, avers that it is a participant in DTC, and as such a participant, the Escrow Agent, as Refunded Bonds Trustee, knows the rules and procedures of DTC with respect to the Refunded Bonds. The Escrow Agent shall act as agent for the City in performing all acts, giving or causing to be given all notices, and providing directions to the Refunded Bonds Trustee to effect the payment of the Refunded Bonds as aforesaid. 3.13 Promptly upon the delivery of this Agreement and in no event longer than 10 business days from the date of this Agreement, the Escrow Agent shall direct the Refunded Bonds Trustee to provide notices of the redemption of all of the Refunded Bonds to the MSR13 through the EMMA system. The notices of redemption shall be in substantially the forms attached to this -5- Agreement as Exhibit D with such additions, deletions or other changes as the Escrow Agent or the Refunded Bonds Trustee determines to be beneficial. 3.14 If at any time it shall appear to the Escrow Agent that the available proceeds of the Government Obligations and deposits on demand in the Escrow Account will not be sufficient to make any payment due to the holders of any of the Refunded Bonds, the Escrow Agent shall notify the Finance Director of the City, not less than fifteen (15) days prior to such date, and the City agrees that it will from any funds legally available for such purpose make up the anticipated deficit so that no default in the making of any such payment will occur. 3.15 The Escrow Agent will submit to the Finance Director of the City a monthly statement, commencing within one month, itemizing all moneys received by it and all payments made by it under the provisions of this Agreement during the preceding monthly period, and also listing the Government Obligations on deposit under this Agreement on the date of said report, including listing moneys held by it received as interest on or profit from the collection of the Government Obligations. ARTICLE IV. COVENANTS OF CITY The City covenants and agrees with the Escrow Agent as follows: 4.01 The Escrow Agent shall have no responsibility or liability whatsoever for (a) any of the recitals of the City in this Agreement, (b) the performance of or compliance with any covenant, condition, term or provision of the Bond Ordinance, and (c) any undertaking or statement of the City under this Agreement or under the Bond Ordinance or the Indenture. 4.02 The City will take any and all further action necessary to ensure that adequate provision is made for the payment of the Refunded Bonds and that none of the Refunded Bonds are classified as "arbitrage bonds" under the Code. 4.03 All payments to be made by, and all acts and duties required to be done by, the Escrow Agent under the terms and provisions of this Agreement, shall be made and done by the Escrow Agent without any further direction or authority of the City or the City Finance Director. ARTICLE V. AMENDMENTS AND IRREVOCABILITY OF AGREEMENT 5.01 This Agreement may be amended or supplemented to provide that all or any portion of the Government Obligations held pursuant to this Agreement may be sold or redeemed, and moneys derived from such sale or redemption invested, reinvested (but only in Qualified Government Obligations that are not redeemable by the Treasury prior to maturity) or disbursed in any manner provided (any such amendment, supplement, direction to sell or redeem or invest, reinvest or disburse to be referred to as a "Subsequent Action"), upon submission to the Escrow Agent of each of the following: IM, A. Certified copy of proceedings of the City authorizing the Subsequent Action and copy of the document effecting the Subsequent Action signed by duly designated officers of the City. B. An opinion of nationally recognized bond counsel or tax counsel nationally recognized as having an expertise in the area of tax-exempt municipal bonds that the Subsequent Action will not cause the interest on the Refunded Bonds to become includible in the gross income of their owners for federal income tax purposes and not exempt from federal income taxes of such owners under the laws of the United States of America providing for taxation of income as and to the extent contemplated when such bonds were issued and that the Subsequent Action does not materially adversely affect the legal rights of the registered owners or holders of the Refunded Bonds. C. An opinion of a firm of nationally recognized independent certified public accountants that the amounts, which must consist of funds or receipts from permitted investments under this Agreement, not subject to redemption prior to maturity, and all of which shall be held under this Agreement, available or to be available for payment of the Refunded Bonds will remain sufficient after the Subsequent Action to pay when due the Refunded Bonds Payment Requirement. D. Consent of any bond insurer for an insured series of the Refunded Bonds still remaining outstanding, but only if such consent is required pursuant to the original documents of the City relating to such bond insurance. 5.02 The City and the Escrow Agent may amend or add to the terms of this Agreement to correct errors, clarify ambiguities or insert inadvertently omitted material but only if any such correction, clarification or insertion has absolutely no adverse impact on the holders or registered owners of the Refunded Bonds. The City may supplement this Agreement by providing for notice prior to any amendment to such parties as it may name in any such supplement, which will be effective upon filing with the Escrow Agent. 5.03 Except as provided in Section 5.01, all of the rights, powers, duties and obligations of the Escrow Agent hereunder shall be irrevocable and shall not be subject to amendment by the Escrow Agent and shall be binding on any successor to the Escrow Agent during the term of this Agreement. 5.04 Except as provided in Section 5.01, all of the rights, powers, duties and obligations of the City under this Agreement shall be irrevocable and shall not be subject to amendment by the City and shall be binding on any successor to the officials now in office during the term of this Agreement. ARTICLE VI. NOTICES TO THE CITY AND THE ESCROW AGENT 6.01 All notices and communications to the City shall be addressed in writing to: -7- to: United City of Yorkville, Kendall County, 651 Prairie Pointe Drive Yorkville, Illinois 60560 Attention: Finance Director 6.02 All notices and communications to the Escrow Agent shall be addressed in writing U.S. Bank Trust Company, National Association 190 South LaSalle Street Chicago, IL 60603 Attention: Merci Stahl ARTICLE VII. TERMINATION OF AGREEMENT 7.01 Upon final disbursement of funds sufficient to pay the Refunded Bonds Payment Requirement as provided for in this Agreement, the Escrow Agent will transfer any balance remaining in the Escrow Account to the City, and thereupon this Agreement shall terminate. (SIGNATURE PAGES FOLLOW) -8- IN WITNESS WHEREOF, the United City of Yorkville, Kendall County, has caused this Agreement to be signed in its name by its Mayor and to be attested by the City Clerk of the City. ATTEST: City Clerk UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS Escrow Agreement Signature Page Mayor IN WITNESS WHEREOF, U.S. Bank Trust Company, National Association, as escrow agent, not individually, has caused this Agreement to be signed in its corporate name by one of its officers and attested but in the capacity as described in this Agreement under its corporate seal hereunto affixed. ATTEST: Its: U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Escrow Agent Its: Escrow Agreement Signature Page LIST OF EXHIBITS A — Refunded Bonds B — Verification Report C — Initial Government Obligations D — Form of Defeasance and Redemption Notice E Escrow Account Cash Flows EXHIBIT A SPECIAL SERVICE AREA NUMBER 2004-104 CENTRAL GRANDE RESERVE SPECIAL TAX BONDS, SERIES 2004 (MPI GRANDE RESERVE PROJECT) Original Principal Amount: Original Issuance Date Interest Payment Dates: REFUNDED BONDS $13,200,000 December 29, 2004 March 1 and September I MATURITY PRINCIPAL INTEREST REDEMPTION MARCH 1 AMOUNT ($) RATE % CUSIP DATE 2026 276,000 6.375% 987361 AD4 01/14/2026 2027 305,000 6.375% 987361 AD4 01/14/2026 2028 328,000 6.375% 987361 AD4 01/14/2026 2029 359,000 6.375% 987361 AD4 01/14/2026 2030 391,000 6.375% 987361 AD4 01/14/2026 2031 424,000 6.375% 987361 AD4 01/14/2026 2032 460,000 6.375% 987361 AD4 01/14/2026 2033 495,000 6.375% 987361 AD4 01/14/2026 2034 534,000 6.375% 987361 AD4 01/14/2026 EXHIBIT B VERIFICATION REPORT See attached EXHIBIT C GOVERNMENT SECURITIES See attached EXHIBIT D NOTICE OF DEFEASANCE AND REDEMPTION See attached EXHIBIT E ESCROW ACCOUNT CASH FLOWS See attached Exhibit G Form of the Agreement for Administrative Services (See attached) 19 I j www.FinanceDTA.com AGREEMENT FOR CONSULTING SERVICES SPECIAL SERVICE AREA NO.2004-104 UNITED CITY OF YORKVILLE, IL SPECIAL SERVICE AREA ADMINISTRATION SERVICES November 17, 2025 Public Finance Public -Private Partnerships Development Economics Clean Energy Bonds ta www.FinanceDTA.com AGREEMENT FOR CONSULTING SERVICES THIS AGREEMENT is made and entered into this day of November of 2025, by and between the United City of Yorkville at 651 Prairie Pointe Drive, Yorkville, IL 60560, herein called "Client," and DTA at 18201 Von Karman Avenue, Suite 220, Irvine, CA 92612, herein after called "Consultant." The Client and the Consultant in consideration of the mutual promises and conditions herein contained agree as follows. ARTICLE I DISCLOSURES AND TERM OF CONTRACT Section 1.1 As of the date of this Agreement, there are no actual or potential conflicts of interest that DTA is aware of that might impair its ability to render unbiased and competent advice or to fulfill its fiduciary duty. If DTA becomes aware of any potential conflict of interest that arise after this disclosure, DTA will disclose the detailed information in writing to the Client in a timely manner. Section 1.2 DTA, a Securities and Exchange Commission ("SEC") and MSRB registered firm, does not have any legal events and disciplinary history on its Form MA and Form MA-1, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The Client may electronically access DTA's most recent Form MA and each most recent Form MA -I filed with the Commission at the following website: https://www.sec.govledgar/searchedgar/`companysearch.html Section 1.3 While DTA has a fiduciary responsibility as a licensed Municipal Advisor, DTA is not, unless otherwise stipulated, acting as the Client's Municipal Advisor. The services discussed herein do not constitute any financial advice or fall under the category of municipal advisory services as defined by the SEC. Section 1.4 This agreement shall become effective on the date stated above and will continue in effect until the earlier of (i) that day when the services provided for herein have been performed or (b) until terminated as provided in Article 6 below. ARTICLE II SERVICES TO BE PERFORMED BY CONSULTANT Section 2.1 Consultant agrees to perform the professional services for the Client, herein after called "Project," in accordance with the applicable professional standard of care and to deliver the work products to the Client as described in the Scope of Work statement United City of Yorkville SSA No. 2004-104 November 17, 2025 Special Service Area ("SSA) Administration Services 1 ta www.FinanceDTA.com attached as Exhibit "A" hereto. Such professional services and work products, as from time to time modified in accordance with Section 2.3 hereof, are collectively referred to as the "Consulting Services." Section 2.2 Instruments of Service. All computer software (including without limitation financial models, compilations of formulas and spreadsheet models), inventions, designs, programs, improvements, processes and methods (collectively, the "Proprietary Models"), reports, drawings, specifications, computer files, field data, notes and other documents and instruments prepared by Consultant are Instruments of Service of Consultant and shall remain the property of Consultant. Consultant shall likewise retain all common law, statutory and other reserved rights, including the copyright thereto. Client acknowledges and agrees that the consideration paid by Client herein only entitles Client to a license to use the hard copy or electronically transmitted reports generated pursuant to the Consulting Services and that any Proprietary Model that Consultant uses to generate such reports is owned by, or is duly licensed from a third party to Consultant and is not being provided to Client hereunder. The reports and models used to generate such reports are for use on this Project only. The Client shall not reuse or make any modification to the hard copy or electronically transmitted reports generated pursuant to the Consulting Services without the prior written authorization of the Consultant. The Client agrees, to the fullest extent permitted by law, to indemnify and hold harmless the Consultant, its shareholders, officers, directors, employees and subconsultants (collectively, Consultant's) against any damages, liabilities or costs, including reasonable attorneys' par fees and defense costs, arising from or allegedly arising from or in any way connected with the unauthorized use, reuse or modification of the hard copy or electronically transmitted reports generated pursuant to the Consulting Services or any of Consultant's Instruments of Service, including models, by the Client or any person or entity that acquires or obtains the reports from or through the Client without the written authorization of the Consultant. Client acknowledges that Consultant may have used reports and analyses that Consultant authored for other clients as base works or templates for the reports and analyses prepared for Client pursuant to this Agreement, and Client acknowledges and agrees that Consultant has the right to use the reports and analyses that it authors pursuant to this Agreement as base works or templates for reports and analyses that Consultant authors for Consultant's other clients, provided, however that Consultant shall not use any confidential information provided by Client in such future reports and analyses. Client further acknowledges and agrees that Consultant has spent substantial time and effort in collection and compiling data and information (the "Data Compilations`) in connection with the Consulting Services and that such Data Compilations may be used by Consultant for its own purposes, including, without limitation, sale or distribution to third parties; provided, however, that Consultant will not sell or distribute any of Client's confidential information that may be contained in such Data Compilations, unless such confidential information is used only on an aggregated and anonymous basis. Section 2.3 Any proposed changes in the Consulting Services hereunder shall be submitted to the other party hereto, and any such changes agreed to by the parties shall be reflected in an amendment to Exhibit "A" in accordance with Section 7.2 hereto. United City of Yorkville SSA No. 2004-104 November 17 2025 Special Service Area ('SSA') Administration Services 2 ta www.FinanceDTA.com Section 2.4 Nothing in this Agreement shall give the Consultant possession of authority with respect to any Client decision beyond the rendition of information, advice, recommendation, or counsel. ARTICLE III COMPENSATION Section 3.1 Client agrees to pay Consultant for its Consulting Services in accordance with this Agreement, a professional fee computed according to the Professional Fee Schedule attached as Exhibit "B" hereto and incorporated herein by reference (the "Fee Schedule"). Client acknowledges and agrees that portions of Consultant's professional fees and expenses may have been incurred by Consultant prior to the execution of this Agreement (the "Pre -Agreement Fees") and Client agrees to pay such Pre -Agreement Fees in accordance with this Agreement. Section 3.2 The Client shall reimburse the Consultant for out-of-pocket and administrative expenses by paying a charge equal to 3% of DTA's monthly billings. Expenses shall include all actual expenditures made by Consultant in the performance of any Consulting Services undertaken pursuant to the Agreement, including, without limitation, the following expenditures: (a) Cost of clerical assistance, including typing, collation, printing and copying, plus copier and photography costs, including photographic reproduction of drawings and documents. (b) Transportation costs, including mileage for the use of personal automobiles at the prevailing IRS standard rate, rental vehicles, lodging and regularly scheduled commercial airline ticket costs. (c) Courier services, facsimile, and telephone expenses. Section 3.3 On or about the first two weeks of each month during which Consulting Services are rendered hereunder, Consultant shall present to Client an invoice covering the current Consulting Services performed and the reimbursable expenses incurred pursuant to this Agreement and exhibits thereto. Such invoices shall be paid by Client within thirty (30) days of the date of each invoice. A 1.2% charge may be imposed against accounts which are not paid within 30 days of the date of each invoice. Section 3.4 The maximum total fee amount set forth in Exhibit "B" may be increased as a result of any expansion of the Consulting Services to be rendered hereunder pursuant to Section 2.3 or as provided in Exhibit "A" hereto. Section 3.5 Records of the Consultant's costs relating to (i) Consulting Services performed under this Agreement and (ii) reimbursable expenses shall be kept and be United City of Yorkvflle SSA No. 2004-104 November 17, 2025 Special Service Area (S5A) Administration Services 3 ta www.Finat-tceDTA.com available to the Client or to Client's authorized representative at reasonable intervals during normal business hours. ARTICLE IV OTHER OBLIGATIONS OF CONSULTANT Section 4.1 Consultant agrees to perform the Consulting Services in accordance with Exhibit "A" and the applicable standard of care. Should any errors caused by Consultant's negligence be found in such services or products, Consultant will correct them at no additional charge by revising the work products called for in Exhibit "A" to eliminate the errors. Section 4.2 Consultant will supply all tools and instrumentalities required to perform the Consulting Services under the Agreement. Section 4.3 Neither this Agreement nor any duties or obligations under this Agreement may be assigned by Consultant without the prior written consent of Client. However, Consultant may subcontract portions of the work to be performed hereunder to other persons or concerns provided Consultant notifies Client of the name and address of said proposed subcontractor and Client either consents or fails to respond to notification with respect to the use of any particular proposed subcontractor. Section 4.4 In the performance of its Consulting Service hereunder, Consultant is, and shall be deemed to be for all purposes, an independent contractor (and not an agent, officer, employee or representative of Client) under any and all laws, whether existing or future. Consultant is not authorized to make any representation, contract, or commitment on behalf of Client. Section 4.5 Neither this Agreement, any duties or obligations under this Agreement, nor the intentions or expectations of Client will cause the Consultant to be a "public official" as that term is used in Section 87100 of Title 9 of the California Government Code. Client and Consultant agree that Consultant is not a "public official" or "participating in governmental decision" as those terms are used in Section 87100. The Client and Consultant also agree that no actions and opinions necessary for the performance of duties under the Contract will cause the Consultant to be a "public official" or "participating in a governmental decision" as those terms are used in Section 87100. United City of Yorkville SSA No, 2004-104 November 17, 2025 Special Service Area (SSA) Administration Services 4 ta www.FinanceDTA.com ARTICLE V OTHER OBLIGATIONS OF CLIENT Section 5.1 The Client shall provide full information in a timely manner regarding requirements for and limitations on the Project. Client agrees to comply with all reasonable requests of Consultant and provide access to all documents reasonably necessary to the performance of Consultant's duties under this Agreement with the exception of those documents which Exhibit "A" calls upon the Consultant to prepare. Section 5.2 Neither this Agreement nor any duties or obligations under this Agreement may be assigned by Client without the prior written consent of Consultant. Section 5.3 Consultant frequently is retained by developers, landowners, and other persons and concerns interested in development projects which often eventually lead to the preparation on a contract basis by Consultant of preliminary tax spread models for government agencies to determine tax rates and other matters necessary to accomplish various improvements to realty for financing under a special taxing district or other financing programs. The parties do not intend and nothing in this Section 5.3 is meant to imply that Consultant is a "public official," "participating in a governmental decision," or has a "financial interest" in the services provided as such terms are used in Section 87100 of Title 9 of the California Governmental Code. Section 5.4 The Client shall provide prompt written notice to the Consultant if the Client becomes aware of any fault or defect in the Project, including any errors, omissions, or inconsistencies in the Consultant's Instruments of Service. Section 5.5 Client, public agencies, landowners, consultants and other parties dealing with Client or involved in the subject development project referred to in Exhibit "A" will be furnishing to Consultant various data, reports, studies, computer printouts and other information and representations as to the facts involved in the project which Client understands Consultant will be using and relying upon in preparing the reports, studies, computer printouts and other work products called for by Exhibit "A." Consultant shall not be obligated to establish or verify the accuracy of the information furnished by or on behalf of Client, nor shall Consultant be responsible for the impact or effect on its work products of the information furnished by or on behalf of Client, in the event that such information is in error and therefore introduces error into Consultant's work products. Section 5.6 In the event that court appearances, testimony or depositions are required of Consultant by Client in connection with the services rendered hereunder, Client shall compensate Consultant at a rate of $400 per hour and shall reimburse Consultant for out-of-pocket expenses on a cost basis. United City of Yorkville SSA No. 2004-104 November 17 2025 Special Service Area (SSA) Administration Services S ta www.FinanceDTA.com ARTICLE VI TERMINATION OF AGREEMENT Section 6.1 Either party may terminate or suspend this Agreement upon thirty (30) days written notice. Unless terminated as provided herein, this Agreement shall continue in force until the Consulting Services set forth in Exhibit "A" have been fully and completely performed and all proper invoices have been rendered and paid. Section 6.2 Should either party default in the performance of this Agreement or materially breach any of its provisions, the other party at its option may terminate this Agreement by giving written notification to the defaulting party. Such termination shall be effective upon receipt by the defaulting party, provided that the defaulting party shall be allowed ten (10) days in which to cure any default following receipt of notice of same. Section 6.3 In the event of any termination that is not the fault of the Consultant, the Client shall pay the Consultant, in addition to payment for services rendered and reimbursable costs incurred, for all expenses reasonably incurred by the Consultant in connection with the orderly termination of this Agreement, including but not limited to demobilization, reassignment of personnel, associated overhead costs and all other expenses directly resulting from the termination, plus an amount for the Consultant's anticipated profit on the value of the services not performed by the Consultant. Section 6.4 Suspension and Termination for Non -Payment. (i) In addition to any other provisions in this Agreement regarding breach of the Agreement, if the Client fails to make payments when due, the Consultant may suspend performance of services upon ten (10) calendar days' notice to the Client. The Consultant shall have no liability whatsoever to the Client for any costs or damages as a result of such suspension caused by any breach of this Agreement by the Client. Upon payment in full by the Client, the Consultant shall resume services under this Agreement, and the time schedule and compensation shall be equitably adjusted to compensate for the period of suspension plus any other reasonable time and expense necessary for the Consultant to resume performance. (ii) If the Client fails to make payment to the Consultant in accordance with the payment terms herein, and/or Client has failed to cure its breach or default following a suspension of services as set forth above, this shall constitute a material breach of this Agreement and shall be cause for termination of this Agreement by the Consultant upon seven (7) days written notice to the Client. (iii) Payment of invoices shall not be subject to any discounts or set -offs by the Client, unless agreed to in writing by the Consultant. Payment to the Consultant for services rendered and expenses incurred shall be due and payable regardless of any subsequent suspension or termination of this Agreement by either party. Section 6.5 The covenants contained in Sections 3.1, 3.2, 4,4, 5.3, 5.4, 5.5 and all of Article VII shall survive the termination of this Agreement. United City of Yorkville SSA No. 2004-104 November 17 2025 Special Service Area ( SSA) Administration Services 6 ta www.FinanceDTA.com ARTICLE VII GENERAL PROVISIONS Section 7.1 Any notices to be given hereunder by either party to the other may be affected either by personal delivery in writing or by mail. Mailed notices shall be addressed to the parties at the addresses appearing in the introductory paragraph of this Agreement, but each party may change the address by written notice in accordance with the first sentence of this Section 7.1. Notices delivered personally will be deemed communicated as of actual receipt. Mailed notices will be deemed communicated as of two (2) days after mailing. Section 7.2 This Agreement and exhibits hereto supersede any and all agreements, either oral or written, between the parties hereto with respect to the rendering of service by Consultant for Client and contains all of the covenants and agreements between the parties with respect to the rendering of such services. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding. Any modification of this Agreement (including any exhibit hereto) will be effective if it is in writing and signed by the party against whom it is sought to be enforced. Section 7.3 If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. Section 7.4 Disputes. The parties agree to first try in good faith to settle the dispute by mediation pursuant to the Mediation Rules of the American Arbitration Association. If the claim or controversy is not settled by mediation, the claim or controversy may be resolved by final and binding arbitration. On the written request of one party served on the other, the dispute shall be submitted to binding arbitration in accordance with the commercial rules and regulations of the American Arbitration Association. The arbitration shall take place at the location in which the principal office of the Client is situated, or such other location as may be mutually agreed to by the parties. The arbitrator(s) shall be selected as follows: In the event that Consultant and Client agree on one arbitrator, the arbitration shall be conducted by such arbitrator. In the event Consultant and Client do not so agree, Consultant and Client shall each select an arbitrator and the two arbitrators so selected shall select the third arbitrator. If there is more than one arbitrator, the arbitrators shall act by majority vote. The parties may propose arbitrators from ,TAMS, ADR, ARC or any independent arbitrator/neutral for dispute resolution. The parties are not required to hire a AAA arbitrator for resolution of a dispute hereunder. United City of Yorkville SSA No. 2004-104 November 17 2025 Special Service Area (SSA'7 Administration Services 7 ta www,FinanceDTA.com No arbitration shall include by way of consolidation or joinder any parties or entities not a party to this Agreement without the express written consent of the Client, the Consultant and any party or entity sought to be joined with an express reference to this provision. Any party or entity joined in the arbitration, after mutual consent, shall be bound by this provision. The decree or judgment of an award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. Section 7.5 The prevailing party in any arbitration or legal action brought by one party against the other and arising out of this Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses, including court costs and reasonable attorneys' fees. The non -prevailing party shall be liable, to the extent allowable under law, for all fees and expenses of the arbitrator(s) and all costs of the arbitration. Section 7.6 This Agreement will be governed by and construed in accordance with the laws of the State of Illinois. Section 7.7 Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either the Client or the Consultant. The Consultant's services under this Agreement are being performed solely for the Client's benefit, and no other party or entity shall have any claim against the Consultant because of this Agreement or the performance or nonperformance of services hereunder. Section 7.8 Notwithstanding any other provision of this Agreement, and to the fullest extent permitted by law, neither the Consultant nor the Client, their respective officers, directors, partners, employees, contractors or subconsultants shall be liable to the other for, or shall make, any claim for any incidental, indirect or consequential damages arising out of or connected in any way to the Project or to this Agreement. This mutual waiver of consequential damages shall include, but is not limited to, loss of use, loss of profit, loss of business, loss of income, loss of reputation or any other consequential damages that either party may have incurred from any cause of action including negligence, strict liability, breach of contract and breach of strict or implied warranty. Section 7.9 It is intended by the parties to this Agreement that the Consultant's services in connection with the Project shall not subject the Consultant's individual shareholders, officers, directors, members, managers or employees to any personal legal exposure for the risks associated with this Project. Therefore, and notwithstanding anything to the contrary contained herein, Client agrees that as Client's sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against Consultant and not against any of the individual shareholders, officers, directors, members, managers or employees. United City of Yorkville SSA No. 2004-104 November 17, 2025 Special Service Area ("SSA) Administration Services S ta www.FinanceDTA.com Section 7.10 Limitation of Liability — for available insurance: In recognition of the relative risks and benefits of the Project to both the Client and the Consultant, the risks have been allocated such that the Client agrees, to the fullest extent permitted by law, to limit the liability of the Consultant to the Client for any and all claims, losses, costs, damages of any nature whatsoever or claims expenses from any cause or causes, including attorneys' fees and costs and expert -witness fees and costs, so that the total aggregate liability of the Consultant to the Client shall not exceed the sum of insurance coverage available at the time of settlement or judgment. It is intended that this limitation apply to any and all liability or cause of action however alleged or arising, except for Consultant's willful misconduct or unless otherwise prohibited by law. IN WITNESS WHEREOF, this Agreement has been executed on the date and year first above written. CONSULTANT: DTA Public Finance, Inc. By: Kelly Wright, Chief Executive Officer Date: United City of Yorkville SSA Na 2004-104 Special Service Area ("SSA) Administration Services CLIENT: United City of Yorkville By: Date: November17 2025 9 ta www.FinanceDTA.com SCOPE OF WORK The Scope of Work statement is predicated on the assumption that the special taxes for the United City of Yorkville ("City') Special Service Area No. 2004-104 (hereinafter called "SSA") will be billed and collected by the County of Kendall (the "County"). The Scope of Work statement for the administration of the SSA is comprised of those services associated with the annual calculation and billing of the special taxes, review of bond funds and accounts, responses to taxpayer inquiries (i.e., phone calls, prepayment requests, builder education/coordination), and determination of arbitrage/rebate liability as follows: Task 1 - Development Research and SSA Parcel Database This task involves gathering and organizing the information required to establish and maintain parcel databases necessary to extend, bill, and collect the special taxes, pursuant to the SSA Special Tax Roll and Report, as amended, and includes the following: 1.1 Subdivision Research: Coordinate with the City and the builder(s) to obtain copies of all final plats. Identify recording date, property use, acreage, and the lot, block and unit numbers, as applicable, for each new parcel. 1.2 Permanent Index Numbers: Coordinate with the County to determine valid Permanent Index Numbers ("PIN`) for the coming year and obtain new cadastral maps. 1.3 Classification of Property: Assign each parcel to the appropriate special tax classification in accordance with the respective SSA Special Tax Roll and Report, as amended. 1.4 SSA Parcel Database: Establish and maintain parcel databases for the SSA that will include all relevant PINs, property data, and special tax characteristics. Task 2 - Special Tax Requirement Calculation and Special Tax Abatement This task involves calculating the amount of special tax to be abated for the SSA and includes the following subtasks: 2.1 Bond Funds Accountability Analysis: This task involves the review and analysis of account statements for the funds and accounts maintained by the trustee. Consultant will prepare a monthly report that summarizes the activity for each fund and account and evaluates flow of funds for consistency with the Indenture or other controlling documents. When necessary, Consultant will communicate our findings with the City or trustee. 2.2 Determine Annual Expenses: Identify expenses for the SSAs including annual debt service, administrative expenses, and provision for delinquencies. 2.3 Year -End Reconciliation: Prepare year-end reconciliation to determine surplus funds, if any, in the bond funds and accounts, interest earnings, and other credits that may be applied to toward the abatement of the special tax. United City of Yorkville SSA No. 2004-104 November 17 2025 Special Service Area ("SSA") Administration Services A-1 ta www.FinanceDTA.com 2.4 Extension of Special Taxes: Extend the required special taxes to each PIN pursuant to the respective SSA Special Tax Roll and Report, as amended, and determine the resulting amount to be abated, if any. Task 3 - Report Preparation This task includes the preparation of an Annual Report for the SSAs, which will generally contain the following: • Brief development summary; ■ Flow of funds summary; • Special tax collection, tax sale, and foreclosure status; • Bond fund and account balance summary; ■ Special tax requirement calculation; • Current equalized assessed value; • Current property tax rates; and ■ Current equalized assessed value -to -lien ratio. Task 4 - Extension and Billing of the Special Tax This task involves coordination with and assistance to the County, as needed, to facilitate the extension and billing of the special tax. The special taxes will be established by ordinance passed by the City on or before the last Tuesday in December. The following subtasks are included: 4.1 Special Tax Roll: For the SSA, Consultant will prepare special tax roll listing each PIN and the corresponding maximum special tax, special tax amount abated, and special tax amount to be billed. 4.2 Transmittal to County: The special tax roll will be transmitted to the County in hard copy and/or electronic form as specified by the County, along with a certified copy of the abatement ordinances, to be provided to Consultant by the City, in hard copy and electronic form as specified by the County. 4.3 Coordination with Assessor: As requested, Consultant will assist the applicable Township Assessor determine the average public improvements allocable to properties in the SSA. Task 5 - Special Tax Collections DTA will review the SSA Special Tax Distribution Reports provided by the County to monitor and record the collection of special taxes as they are distributed to the SSA. DTA will request and review the County's unpaid list to determine the payment status of each individual PIN. This data will be recorded in special tax payment database and utilized to prepare an Annual Delinquent Special Tax Report that shall be distributed to the City and County as needed. DTA United City of Yorkville SSA No, 2004-104 November 1Z 2025 Special Service Area (SSA") Administration Services A-2 ta www.FinanceDTA.com will provide assistance to the County, as requested, to facilitate the collection of the special taxes. Task 6 - Delinquent Special Tax Follow -Up DTA will assist in the collection of special taxes that remain delinquent after the County has conducted its tax sale (or such other date as specified in the bond indenture). The following subtasks are included: 6.1 Final Delinquent Special Tax Report: DTA will update the report of delinquent special taxes prepared pursuant to Task 5 above. 6.2 Demand Letters: This task entails the preparation and mailing of demand letters to the property owners with delinquent special taxes. DTA will prepare a draft demand letter for review and approval by City staff. After the form of the demand letter is approved, DTA will print the demand letters on City letterhead and mail to property owners. 6.3 Coordination with Delinquent Property Owners: DTA staff will be available to answer questions from the delinquent property owners. Task 7 - Foreclosure Assistance This task involves assistance with the foreclosure of the special taxes that remain delinquent after the follow-up process. We assume that at this stage in the collection process the City will be retaining legal counsel to pursue judicial foreclosure. Therefore, our services will consist of activities to assist legal counsel and the City with the foreclosure action. The following subtasks are included: 7.1 Foreclosure Report: Following the payment deadline specified in the demand letter, DTA will prepare a report of the remaining delinquent special taxes that would be subject to foreclosure. 7.2 Reserve Fund Analysis: This analysis will ascertain if the Reserve Fund is at its required amount and if any draws will be needed to make the debt service payments on the bonds. 7.3 Exhibit to Ordinance Ordering Judicial Foreclosure: DTA will prepare an exhibit showing the delinquent special taxes, penalties, interest and collection costs to be attached to the ordinance adopted by the City ordering the judicial foreclosure. Task 8 - Prepayment Calculations This task entails the calculation of prepayment amounts and coordination with the trustee and associated record keeping in the event any special tax is prepaid. This task includes the following subtask: 8.1 Special Tax Prepayments: Upon request, DTA will calculate the amount needed to prepay the special tax pursuant to the prepayment formula as set forth and adopted in the respective Rate and Method of Levying Special Taxes, as amended. The prepayment United City of Yorkville SSA No. 2004-104 November 17, 2025 Special Service Area ('SSA) Administration Services A-3 ta www.FinanceDTA.com information provided will identify the amount due, the deadline for payment, and direction regarding where payment is to be remitted. Task 9 - Early Bond Redemption Analysis This task involves analysis of the early redemption of bonds resulting from the prepayment of special taxes or receipt of recapture funds. DTA will coordinate with the trustee to ensure the proper application of such funds and review the resulting revised debt service schedule. Task 10 - Taxpayer Inquiries This task involves responding to telephone calls from prospective or current property owners or other interested parties who have questions regarding SSA, the public improvements financed, the amount of the special tax, etc. This task includes brief written responses to property owners, as necessary. In order to efficiently and effectively handle these property owner's requests, DTA has a toll -free number for property owners who have questions. Task 11 - Arbitrage/Rebate Calculation This task encompasses those activities associated with computing the rebate liability of the bonds sold on behalf of SSA. United City of Yorkville SSA No. 2004-104 November 17, 2029 Special Service Area (SSA") Administration Services A-4 ta www.FinanceDTA.com FEE SCHEDULE DTA's annual compensation for Tasks 1-6 and 8-10 of the Scope of Work listed under Exhibit A is a fixed fee of $12,000 plus expenses. Task 7 services shall be billed on a time and materials basis in accordance with the hour rate schedule in Table 1, with payment due upon collection of the delinquent special taxes, including collection costs, through foreclosure. DTA's compensation for Task 11 is $3,000 per bond issue for the initial calculation, and $2,500 per bond issue per year for subsequent years. Additional fees will be incurred for transferred proceeds analysis, commingled funds analysis, Final or Five -Year Report, or computation period in excess of 12 months. Table 1. DTA's Fee Schedule Labor f •Labor Rate $325/Hour President/Managing Director Senior Vice President $300/Hour Vice President $275/1-four Senior Manager $230/Hour Manager $215/Hour Senior Associate $195/Hour Associate III $185/Hour Associate II $175/Hour Associate I $160/Hour Research Associate Il $150/Hour Research Associate I $135/Hour A General Terms and Conditions The preceding annual professional fees shall be billed in four equal installments, with invoices submitted by Consultant to Client on or about the first two weeks of each quarter. Such invoices shall be paid by Client within 30 days of the date of each invoice. A 1.2% charge may be imposed against accounts that are not paid within 30 days of the date of each invoice. At Client's request, services in addition to those identified in the Scope of Work statement may be provided. Unless otherwise agreed to by Client and Consultant, any additional tasks assigned by Client shall be charged at the hourly rates listed in Table 1. United City of Yorkville SSA No. 2004-104 Navem6er17. 2025 Special Service Area ( SSA "1 Administration Services B-1 ta www.FinanceDTA.com Such additional tasks may include but are not be limited to the following: ■ Manual billing of special taxes; • Administration of variable rate bonds; ■ Attendance, other than via telephone, at meetings with property owners or City staff to answer questions, review the levy, or resolve disputes regarding the calculation of the special tax; ■ Assistance with workshops, seminars, etc. concerning disclosure of the special tax; and ■ Assumption of dissemination agent responsibilities for Developer Continuing Disclosure Reports, if any. The preceding lump sum professional fees and hourly rates apply for a 12-month period from execution of the Agreement and are subject to a cost -of -living and/or other appropriate increase every 12 months thereafter. Consultant generally reviews its professional fees and hourly rates annually and, if appropriate, adjusts them to reflect increases in seniority, experience, cost -of -living, and other relevant factors. Consultant shall notify Client in advance of any such increase. United City of Yorkville SEA No. 2004-104 November 17, 2025 Special Service Area ('SSA) Administration Services �] B—L STATE OF ILLINOIS } ) ss COUNTY OF KENDALL ) FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly elected and acting County Clerk of The County of Kendall, Illinois, and as such officer I do further certify that on the day of November, 2025, there was filed in my office that certain United City of Yorkville, Illinois Ordinance 2025-92 entitled: AN ORDINANCE PROVIDING FOR ISSUANCE OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS SPECIAL SERVICE AREA NUMBER 2004-104 SPECIAL TAX REFUNDING BONDS, SERIES 2025 (GRANDE RESERVE PROJECT), AND AUTHORIZING THE EXECUTION OF A BOND ORDER duly passed and approved by the Council of the United City of Yorkville, Kendall County, Illinois, on the 25' day of November, 2025, 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 ZL�- day of November, 2025. (SEAL) County Clerk of The County of Kendall, Illinois STATE OF ILLINOIS COUNTY OF KENDALL FILED NOV 2 6 2025 j �. COUNTY CLERK Atb�; U KENDALL COUNTY