1985-090-1
VILLAGE OF BUFFALO GROVE
ORDINANCE NO. a-,5-5P6
ADOPTED BY THE PRESIDENT
AND BOARD OF TRUSTEES OF THE VILLAGE
OF BUFFALO GROVE
THIS DAY OF1Oo.e., -- /•.. 19�
Published in pamphlet form by authority of the
President and Board of Trustees of the Village
of Buffalo Grove, Cook & Lake Counties, Illinois,
this - L day of A• _ , 19 ��.
Vii geclerk
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ORDINANCE NO'. 85 -90
AN ORDINANCE providing for the issue of
T3,100,000 Special Service Area Number
Three Bonds, Series 1985, of the Village
of Buffalo Grove, Cook and Lake Counties,
Illinois, and the levy of a direct annual
tax sufficient to pay the principal and
interest on said bonds.
WHEREAS, pursuant to the provisions of Section 6(a) of
Article VII of the 1970 Constitution of the State of Illinois
and "AN ACT to provide the manner of levying or imposing taxes
for the provision of special services to areas within the boundaries
of home rule units and non -home rule municipalities and counties,"
approved September 21, 1973, as amended, the Village of Buffalo
Grove, Cook and Lake Counties, Illinois (the "Village "), is
authorized to create special service areas within the Village,
issue bonds secured by the full faith and credit of such areas
for providing special services to such areas and levy taxes
against the property; included in-such area to pay the principal
and interest on said bonds; and
WHEREAS, the President and Board of Trustees of the
Village (the "Board ") by Ordinance No. 85 -54 adopted on the 9th
day of September, 1985, did propose the establishment of Special
Service Area Number One of the Village (the "Area ") and the issuance
of bonds of the Area (the "Bonds ") in not to exceed the amount
of $3,100,000, bearing interest at a rate or rates not to exceed 15%
per annum and maturing within 20 years from the issuance thereof
and did call a public hearing thereon for the 7th day of October,
1985 (the "Hearing "); and
WHEREAS, proper notice was given of the Hearing and at
the Hearing held on the 7th day of October, 1985, all interested
persons affected by the Area were allowed to file written objections
thereto and to be heard orally thereon; and
WHEREAS, the Board by Ordinance No. 85-59 adopted on
the 7th day of October, 1985, did establish the Area; and
WHEREAS, the Area is contiguous and is totally within
the corporate limits of the Village; and
WHEREAS, the Area will benefit specially from the municipal
services to be provided (the "Services "), and the Services are
unique and in addition to municipal services provided to the Village
as a whole; and
WHEREAS, no petition has been filed objecting to the
creation of the Area, the levy or imposition of a tax or the
issuance of the Bonds, the Board is authorized to issue the
Bonds and levy a direct annual tax against all of the taxable
property included in the Area sufficient to pay the principal
and interest on the Bonds; and
WHEREAS, the Board has determined and does hereby .
determine that it is advisable, necessary and in the best interest
of the Village and the Area to provide for the construction of
sewer and water improvements, streets, curbs, water distribution
system and facilities, street lights, storm water retention
lakes and landscaping, fire protection and design engineering/
surveying (the "Project "), all of the Services to be in and for
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the Area and all of said construction to be on existing public
property or property to be acquired by the Village, including
public easements; and
WHEREAS, it has heretofore been and it is hereby estimated
that the cost of the Project will be not less than $3,100,000; and
WHEREAS, it is in the public interest to issue Bonds
in the amount of $3,100,000 to pay the cost of the Project; and
WHEREAS, the proceeds of the Bonds shall be used solely
and only for improvements for which the Village is authorized under
the provisions of the Illinois Municipal Code, as amended, to
levy taxes or special assessments or to appropriate the funds of
the Village:
NOW, THEREFORE, Be It Ordained by the President and Board
of Trustees of the Village of Buffalo Grove, Cook and Lake Counties,
Illinois, as follows:
Section 1. Incorporation of Preambles. The Board
hereby finds that all of the recitals contained in the preambles
to this ordinance are full, true and correct and does incorporate
them into this ordinance by this reference.
Section 2. Authorization. It is hereby found and
determined that by and at the proceedings hereinabove described
in the preambles of this ordinance, the Village was authorized to
issue Bonds in the amount of $3,100,000 payable solely and only
from ad valorem property taxes levied against all of the taxable
property included in the Area for the purpose of paying the cost
of the Project.
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Section 3. Bond Details.
In order to raise the sum
of $3,100,000 presently needed for the purpose aforesaid, there
be borrowed on behalf of the Area the sum of $3,100,000 and that
the Bonds, payable solely and only from ad valorem taxes levied
against all of the taxable property in the Area, without limit
as to rate or amount, be issued in said amount and shall be
known as "Special Service Area Number Three Bonds, Series 1985,"
the Bonds shall be dated December 1, 1985, and shall also bear
the date of authentication, shall be in fully registered form,
shall be in denominations of $5,000 each and authorized integral
multiples thereof (but no single Bond shall represent installments
of principal maturing on more than one date), shall be numbered
1 and upward, and the Bonds shall become due and payable serially
(subject to prior redemption as hereinafter set forth) on December
1 of each of the years, in the amounts and bearing interest per
annum as follows:
Year of
Principal
Rate of
Maturity
Amount
Interest
1999
$300,000
9.50%
2000
350,000
9.50%
2001
400,000
9.50%
2002
425,000
9.60%
2003
475,000
9.70%
2004
550,000
9.80%
2005
600,000
9.90%
The Bonds shall bear interest from their date or
from the most recent interest payment date to which interest has
been paid or duly provided for, until the principal amount of the
Bonds is paid, such interest (computed upon the basis of a 360 -day
year of twelve 30 -day months) being payable on the first days of
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June and December of each year, commencing on December 1, 1986.
Interest on each Bond shall be paid by check or draft of the
American National Bank and Trust Company of Chicago, Chicago,
Illinois (the "Bond Registrar "), payable upon presentation in
lawful money of the United States of America, to the person in
whose name such Bond is registered at the close of business on
the 15th day of the month next preceding the interest payment
date. The principal of and premium (if any) on the Bonds shall be
payable in lawful money of the United States of America at the
Bond Registrar.
The seal of the Village shall be affixed to or printed on
each of the Bonds, and the Bonds shall be signed by the facsimile
signature of the President of the Village and attested by the
facsimile signature of the Village Clerk of the Village, and in case
any officer whose signature shall appear on any Bond shall cease
to be such officer before the delivery of such Bond, such signature
shall nevertheless be valid and sufficient for all purposes, the
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same as if such officer had remained in office until delivery.
All Bonds shall have thereon a certificate of authen-
tication substantially in the form hereinafter set forth duly
executed by the Bond Registrar as authenticating agent of the
Village and showing the date of authentication. No Bond shall be
valid or obligatory for any purpose or be entitled to any security
or benefit under this ordinance unless and until such certificate
of authentication shall have been duly executed by the Bond
Registrar by manual signature, and such certificate of
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authentication upon any such Bond shall be conclusive evidence
that such Bond has been authenticated and delivered under this
ordinance. The certificate of authentication on any Bond shall
be deemed to have been executed by the Bond Registrar if signed
by an authorized officer of the Bond Registrar, but it shall not
be necessary that the same officer sign the certificate of authen-
tication on all of the Bonds issued hereunder.
Section 4. Registration of Bonds; Persons Treated as
Owners. The Village shall cause books (the "Bond Register ") for
the registration and for the transfer of the Bonds as provided
in this ordinance to be kept at the principal corporate trust
office of the Bond Registrar, which is hereby constituted and
appointed the registrar of the Village. The Village is authorized
to prepare, and the Bond Registrar shall keep custody of, multiple
Bond blanks executed by the Village for use in the transfer and
exchange of Bonds.
Upon surrender for transfer of any Bond at the principal
corporate trust office of the Bond Registrar, duly endorsed by,
or accompanied by a written instrument or instruments of transfer
in form satisfactory to the Bond Registrar and duly executed by,
the registered owner or his attorney duly authorized in writing,
the Village shall execute and the Bond Registrar shall authenticate,
date and deliver in the name of the transferee or transferees a
new fully registered Bond or Bonds of the same maturity of
authorized denominations, for a like aggregate principal amount.
Any fully registered Bond or Bonds may be exchanged at said
office of the Bond Registrar for a like aggregate principal
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amount of Bond or Bonds of the same maturity of other authorized
denominations. The execution by the Village of any fully registered
Bond shall constitute full and due authorization of such Bond
and the Bond Registrar shall thereby be authorized to authenticate,
date and deliver such Bond, provided, however, the principal
amount of outstanding Bonds of each maturity authenticated by
the Bond Registrar shall not exceed the authorized principal
amount of Bonds for such maturity less previous retirements.
The Bond Registrar shall not.be required to transfer or exchange
any Bond during the period beginning at the close of business on
the 15th day of the month next preceding any interest payment
date on such Bond and ending on such interest payment date nor to
transfer or exchange any Bond after notice calling such Bond for
redemption has been mailed, nor during a period of fifteen (15)
days next preceding mailing of a notice of redemption of any Bonds.
The person in whose name any Bond shall be registered
shall be deemed and regarded as the absolute owner thereof for
all purposes, and payment of the principal of, premium (if any)
on or interest on any Bond shall be made only to or upon the
order of the registered owner thereof or his legal representative.
All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Bond to the extent of the
sum or sums so paid.
No service charge shall be made for any transfer or
exchange of Bonds, but the Village or the Bond Registrar may require
payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or
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exchange of Bonds except in the case of the issuance of a Bond or
Bonds for the unredeemed portion of a Bond surrendered for
redemption.
Section 5. Redemption. Bonds shall be subject to
redemption prior to maturity at the option of the Village as a
whole, or in part in integral multiples of $5,000 in inverse order
of their maturity (less than all of the Bonds of a single maturity
to be selected by the Bond Registrar), on December 1, 1996, and on
any interest payment date thereafter, at the redemption price
(expressed as percentages of principal amount) in accordance with
the following schedule plus accrued interest to the redemption
date:
of $5,000 each and integral multiples thereof. The Village shall,
at least forty -five (45) days prior to the redemption date (unless
a shorter time period shall be satisfactory to the Bond Registrar)
notify the Bond Registrar of such redemption date and of the
principal amount of Bonds to be redeemed. For purposes of any
redemption of less than all of the outstanding Bonds of a single
maturity, the particular Bonds or portions of Bonds to be redeemed
shall be selected not more than sixty (60) days prior to the
Date of
Redemption
(dates
inclusive)
Redemption Price
December
1, 1996
and June
1,
1997
103.00%
December
1, 1997
and June
1,
1998
102.50%
December
1, 1998
and June
1,
1999
102.00%
December
1, 1999
and June
1,
2000
101.50%
December
1, 2000
and thereafter
101.00%
F
The Bonds shall
be
redeemed only
in the principal amount
of $5,000 each and integral multiples thereof. The Village shall,
at least forty -five (45) days prior to the redemption date (unless
a shorter time period shall be satisfactory to the Bond Registrar)
notify the Bond Registrar of such redemption date and of the
principal amount of Bonds to be redeemed. For purposes of any
redemption of less than all of the outstanding Bonds of a single
maturity, the particular Bonds or portions of Bonds to be redeemed
shall be selected not more than sixty (60) days prior to the
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redemption date by the Bond Registrar, from the outstanding Bonds
of the longest maturity or maturities by such method as the Bond
Registrar shall deem fair and appropriate and which may provide
for the selection for redemption of Bonds or portions of Bonds in
the principal amounts of $5,000 and integral multiples thereof.
The Bond Registrar shall promptly notify the Village in
writing of the Bonds or portions of Bonds selected for redemption
and, in case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
Section 6. Redemption Procedure. Unless waived by any
holder of Bonds to be redeemed, notice of the call for any such
redemption shall be given by the Bond Registrar on behalf of the
Village by mailing the redemption notice by registered or certified
mail at least thirty (30) days and not more than sixty (60) days
prior to the date fixed for redemption to the registered owner of
the Bond or Bonds to be redeemed at the address shown on the Bond
Register or at such other address =as is furnished in writing by
such registered owner to the Bond Registrar.
All notices of redemption shall state:
(1) the redemption date,
(2) the redemption price,
(3) if less than all of the outstanding Bonds are to
be redeemed, the identification (and, in the case of partial
redemption, the respective principal amounts) of the Bonds
to be redeemed,
(4) that on the redemption date the redemption price
will become due and payable upon each such Bond or portion
thereof called for redemption, and that interest thereon
shall cease to accrue from and after said date, and
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(5) the place where such Bonds are to be surrendered
for payment of the redemption price, which place of payment
shall be the principal corporate trust office of the Bond
Registrar.
Prior to any redemption date, the Village shall deposit
with the Bond Registrar an amount of money sufficient to pay the
redemption price on all the Bonds or portions of Bonds which are
to be redeemed on that date.
Notice of redemption having been given as aforesaid,
the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price
therein specified, and from and after such date (unless the
Village shall default in the payment of the redemption price)
such Bonds or portions of Bonds shall cease to bear interest.
Upon surrender of such Bonds for redemption in accordance with
said notice, such Bonds shall be paid by the Bond Registrar at
the redemption price. Installments of interest due on or prior
to the redemption date shall be payable as herein provided for
payment of interest. rUpon surrender for any partial redemption
of any Bond, there shall be prepared for the registered holder a
new Bond or Bonds of the same maturity in the amount of the unpaid
principal.
If any Bond or portion of Bond called for redemption
shall not be so paid upon surrender thereof for redemption, the
principal, and premium, if any, shall, until paid, bear interest
from the redemption date at the rate borne by the Bond or portion
of Bond so called for redemption. All Bonds which have been
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redeemed shall be cancelled and destroyed by the Bond Registrar
and shall not be reissued.
Section 7. Form of Bond. The Bonds shall be prepared
in compliance with the National Standard Specifications for Fully
Registered Municipal Securities prepared by the American National
Standards Institute and shall be in substantially the following
form; provided, however, that if the text of the Bond is to be
printed in its entirety on the front side of the Bond, then para-
graph [2] and the legend, "See Reverse Side for Additional Provisions ",
shall be omitted and paragraphs [6] through [11] shall be inserted
immediately after paragraph [1]:
t -
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REGISTERED
NO.
v
(Form of Bond - Front Side)
UNITED STATES OF AMERICA
STATE OF ILLINOIS '
COUNTIES OF COOK AND LAKE
VILLAGE OF BUFFALO GROVE
REGISTERED
SPECIAL SERVICE AREA NUMBER THREE BOND, SERIES 1985
:See Reverse Side:
:for Additional
:Provisions
Interest Maturity Dated
Rate: % Date: December 1, Date: December 1, 1985 CUSIP
Registered Owner:
Principal Amount:
[1] KNOW ALL MEN BY THESE PRESENTS, that the Village of
Buffalo Grove, Cook and Lake Counties, Illinois (the "Village"),
hereby acknowledges itself to owe and for value received promises
to pay to the Registered Owner identified above, or registered
assigns as hereinafter provided, solely from the collection of
taxes levied against all of the taxable property in that part of
said Village known as Special Service Area Number Three and not
otherwise, on the Maturity Date identified above, the Principal
Amount identified above and to pay interest (computed on the basis
of a 360 -day year of twelve 30 -day months) on such Principal Amount
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from the date of the Bond or from the most recent interest payment
date to which interest has been paid at the Interest Rate per annum
set forth above on June 1 and December 1 of each year commencing
December 1, 1986, until said Principal Amount is paid. Both
principal of and premium (if any) on this Bond are payable in
lawful money of the United States of America at the principal
corporate trust office of the American National Bank and Trust
Company of Chicago, Chicago, Illinois, as bond registrar and
paying agent (the "Bond Registrar "). Payment of the installments
of interest shall be made to the Registered Owner hereof as
shown on the registration books of the Village maintained by the
Bond Registrar at the close of business on the 15th day of the
month next preceding each interest payment date and shall be
paid by check or draft of the Bond Registrar, payable upon
presentation in lawful money of the United States of America,
mailed to the address of such Registered Owner as it appears on
such registration books or at such other address furnished in
writing by such Registered Owner to the Bond Registrar.
[2] Reference is hereby made to the further provisions
of this Bond set forth on the reverse hereof and such further
provisions shall for all purposes have the same effect as if set
forth at this place.
[3] It is hereby certified and recited that all condi-
tions, acts and things required by law to exist or to be done
precedent to and in the issuance of this bond did exist, have
happened, been done and performed in regular and due form and
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time'as required by law; that the indebtedness of the Village,
including the issue of bonds of which this is one, does not exceed
any limitation imposed by law; and that provision has been made
for the collection of a direct annual tax in said Special Service
Area sufficient to pay the interest hereon as it falls due and
also to pay and discharge the principal hereof at maturity.
[4] This Bond shall not be valid or become obligatory
for any purpose until the certificate of authentication hereon
shall have been signed by the Bond Registrar.
[5] IN WITNESS WHEREOF, said Village of Buffalo Grove,
Cook and Lake Counties, Illinois, by its President and Board of
Trustees, has caused its corporate seal to be imprinted by facsimile
hereon or hereunto affixed, and this bond to be signed by the
duly authorized facsimile signature of the President of the
Village and attested by the duly authorized facsimile signature
of the Village Clerk of the Village, all as of the Dated Date
f
identified above.
Attest:
(Facsimile Signature)
Village Clerk
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(Facsimile Signature)
President
o •
Date of Authentication: ,
CERTIFICATE
OF
AUTHENTICATION
This Bond is one of
the Bonds described in
the within mentioned
ordinance and is one of
the Special Service Area
Number Three Bonds, Series
1985, of the Village of Buffalo
Grove, Cook and Lake Counties,
Illinois.
American National Bank and Trust
Company of Chicago
as Bond Registrar
By (Manual Signature)
Authorized Officer
Bond Registrar and Paying Agent:
American National Bank and Trust
Company of Chicago, Chicago,
Illinois
[Form of Bond - Reverse Side]
. Village of Buffalo Grove
Cook and Lake Counties, Illinois
Special Service Area Number Three, Series 1985
[6] This bond is one of a series of bonds issued by
the Village for the purpose of constructing public improvements in
said Special Service Area, pursuant to and in all respects in
compliance with the provisions of Section 6(a) of Article VII
of the 1970 Constitution of the State of Illinois and "AN ACT to
provide the manner of levying or imposing taxes for the provision
of special services to areas within boundaries of home rule
units and non -home rule municipalities and counties," approved
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September 21, 1973, as amended, and in compliance with an ordinance
providing for the issue of this series of bonds duly passed by
the President and Board of Trustees of said Village (the "Bond
Ordinance "), and published, in all respects as by law required.
[71 Bonds of the issue of which this Bond is one are
subject to redemption prior to maturity at the option of the
Village as a whole, or in part in integral multiples of $5,000 in
inverse order of their maturity (not less than all the Bonds of a
single maturity to be selected by the-Bond Registrar in such
manner as it shall deem fair and appropriate), on December 1,
1996, and on any interest payment date thereafter, at the redemption
price (expressed as percentages of principal amount) in accordance
with the following schedule plus accrued interest to the redemption
date:
Date of Redemption
(dates inclusive) Redemption Price
December
1,
1996
and
June
1,
1997_
103.00%
December
1,
1997
and
June
1,
1998
102.50%
December
1,
1998
and
June
1,
1999
102.00%
December
1,
1999
and
June-1,
2000
101.50%
December
1,
2000
and
thereafter
101.00%
[8] Notice of any such redemption shall be sent by
registered or certified mail no
more than sixty (60) days prior
to the registered owner of each
shown on the registration books
Bond Registrar or at such other
by such registered owner to the
t less than thirty (30) days nor
to the date fixed for redemption
Bond to be redeemed at the address
of the Village maintained by the
address as is furnished in writing
Bond Registrar. When so called for
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redemption, this Bond will cease to bear interest on the specified
redemption date, provided funds for redemption are on deposit at
the place of payment at that time_, and shall not be deemed to be
outstanding.
[9] This Bond is transferable by the registered holder
hereof in person or by his attorney duly authorized in writing
at the principal corporate trust office of the Bond Registrar
in Chicago, Illinois, but only in the manner, subject to the
limitations and upon payment of the charges provided in the Bond
Ordinance, and upon surrender and cancellation of this Bond.
Upon such transfer a new Bond or Bonds of authorized denominations
of the same maturity and for the same aggregate principal amount
will be issued to the transferee in exchange therefor.
[10] The Bonds are issued in fully registered form in
the denomination of $5,000 each or authorized integral multiples
thereof. This Bond may be exchanged at the principal corporate
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trust office of the Bond Registrar for a like aggregate principal
amount of Bonds of the same maturity of other authorized denomi-
nations, upon the terms set forth in the Bond Ordinance.
[11] The Village and the Bond Registrar may deem and
treat the registered holder hereof as the absolute owner hereof
for the purpose of receiving payment of or on account of prin-
cipal hereof, premium (if any) and interest due hereon and for
all other purposes and neither the Village nor the Bond Registrar
shall b,. affected by any notice to the contrary.
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(ASSIGNMENT)
r.]
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers
unto
Name and Address of Assignee
the within Bond and does hereby irrevocably constitute and appoint
attorney to transfer the said Bond on the books kept for registra-
tion thereof with full power of substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this assignment must correspond with
the name of the registered owner as it appears upon
the face of the within Bond in every particular, without
alteration or enlargement or any change whatever.
Section 8. Sale of Bonds. Forthwith after this
ordinance has become effective, as provided by law, the Bonds
shall be executed and delivered to the Village Treasurer of the
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Village (the "Treasurer ") and be by him delivered to the purchaser
thereof, namely, Griffin, Kubik, Stephens & Thompson, Inc.,
Chicago, Illinois, upon receipt of the purchase price therefor,
same to be not less than par plus accrued interest to date of
delivery; and that the contract for the sale of the Bonds heretofore
entered into, be and is in all respects ratified, approved and
confirmed, it being hereby found and determined that said contract
is in the best interest of the Village and that no person holding
any office of the Village either by election or appointment, is in
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any manner interested, either directly or indirectly, in his own
name or in the name of any other person, association, trust or
corporation, in said contract for the purchase of the Bonds.
Section 9. Tax Levy. For the purpose of providing
the funds required to pay the interest.on the Bonds as it falls
due, and also to pay and discharge the principal thereof at
maturity, there be and there shall be levied upon all the taxable
property within the Area a direct annual tax for each of the
years while the Bonds or any of them are outstanding in amounts
sufficient for that purpose, and that there be and there is
levied upon all of the said taxable property in the Area in
addition to all other taxes the following direct annual tax,
to -wit:
For the Year
A Tax Sufficient to Produce the Sum of:
1985
$449,887.50
for
interest
up to and
including June 1, 1987
1986
$299,925.00
for
interest
1987
$299,925.00
for
interest
1988
$299,925.00
for
interest
1989
$299,925.00
for
interest
1990
$299,925.00
for
interest
1991
$299,925:=00
for
interest
1992
$299,925.00
for
interest
1993
$299,925.00
for
interest
1994
$299,925.00
for
interest
1995
$299,925.00
for
interest
1996
$299,925.00
for
interest
1997
$299,925.00
for
interest
1998
$585,675.00
for
interest
and principal
1999
$604,800.00
for
interest
and principal
2000
$619,175.00
for
interest
and principal
2001
$604,775.00
for
interest
and principal
2002
$611,337.50
for
interest
and principal
2003
$636,350.00
for
interest
and principal
2004
$629,700.00
for
interest
and principal
The Village covenants and agrees
with the purchasers and
the holders of the Bonds
that so long
as any
of the
Bonds remain
outstanding, the Village
will take no
action or fail to take any
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action which in any way would adversely affect the ability of
the Village to levy and collect the foregoing tax levy, and that
the Village and its officers will comply with all present and future
applicable laws imposing any duty on the Village and its officers
in order to assure that the foregoing taxes will be levied,
extended and collected as provided herein and deposited in the
fund established to pay the principal of and interest on the
Bonds. The Village and its officers shall not be responsible for
any duty imposed by law upon County Clerks, Collectors or Treasurers.
Section 8. Filing of Ordinance. Forthwith as soon as
this ordinance becomes effective, the Village Clerk of the Village
be and is hereby directed to file a copy of said ordinance with
the County Clerk of Lake County, Illinois, and it shall be the
duty of said County Clerk in and for each of the years 1985 to
2004, inclusive, to ascertain the rate percent required to produce
the aggregate tax hereinbefore levied, and extend the same for
collection on the tax books against all of the taxable property
within the Area in addition to other taxes levied in each of
said years in the Area in order to raise the respective amounts
levied aforesaid, and such tax shall be computed, extended and
collected in the same manner as now or hereafter provided by law
for the computation, extension and collection of taxes for general
corporate purposes of the Village, and when collected, the tax
hereby levied shall be placed to the credit of a special fund to
be designated and known as "Village of Buffalo Grove Special
Service Area Number Three Bond and Interest Fund" (the "Bond
Fund "), and the Bond Fund is hereby irrevocably pledged to and
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shall be used only for the purpose of paying the principal
of and interest on the Bonds.
Section 11. Creation of Funds and Appropriations. The
funds derived from such levy be and the same are hereby appropriated
and set aside for the sole and only purpose of paying principal
of and interest on the Bonds when and as the same become due, and
the funds derived from the sale of the Bonds be and they are hereby
appropriated and set aside for paying the cost of the Project.
The accrued received on the sale of the Bonds and
principal proceeds of the Bonds in the amount of $30,000 shall be
credited to and deposited pursuant to the direction-of the Treasurer
in the Bond Fund. The balance of the proceeds of the Bonds
shall be credited to and deposited pursuant to the direction of
the Treasurer in a fund to be designated and known as "Village
of Buffalo Grove Special Service Area Number Three Construction
Fund" (the "Construction Fund "), and the Construction Fund shall
be held in trust for the benefit of the property owners, residents,
taxpayers and voters of the Area and for the purchasers and
holders from time to time of the Bonds. The money in the
Construction Fund shall be used solely and only for paying the
costs of the Project and for paying the principal of and interest
on the Bonds if there are not sufficient funds on hand in the
Bond Fund therefor, in which case said money shall be loaned to
the Bond Fund. From time to time as necessary, the Treasurer
shall withdraw money from the Construction Fund for the purpose
of paying (i) the costs of that portion of the Project related
to fire protection; (2) the expenses of issuing the Bonds; and
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(3) principal of or interest on the Bonds. The Treasurer shall
withdraw money from the Construction Fund to pay all other costs
of the Project only upon receipt of the Village of a Special Service
Area Number Three Affidavit in the form attached hereto as Exhibit A
and made a part hereof, which said form of affidavit is hereby
approved. All interest earned on or increment to money in the
Construction Fund shall be deposited in the Construction Fund, and
all interest earned on or increment to money on the Bond Fund
shall be deposited in the Bond Fund. After all the costs of the
Project have been paid, any and all money remaining on deposit in
the Construction Fund shall be deposited by the Treasurer into the
Bond Fund.
Section 12. Non- Arbitrage. The principal proceeds of
the sale of the Bonds shall be devoted to and used with due
diligence for the completion of the Project, and that the Board
covenants, represents and certifies as follows:
(1) That the Village has incurred, or within six
(6) months after the delivery of the Bonds expects to
incur, substantial!binding obligations with respect to
the Project, said binding obligations to include the
affidavit referred to in Section 11 of this ordinance
requiring the expenditure of Bond proceeds for the
construction of the Project in the amount of not less
than $100,000, said amount being not less than 2 -1/2%
of that portion of the cost of the Project to be
financed with the proceeds of the Bonds.
(2) That the Village expects that all of the money
derived from the sale of the Bonds and deposited in the
Construction Fund, which ins the fund from which the cost
of the Project is to be paid, will be expended on or
before December 1, 1988, for the purpose of paying the
cost of the Project, said date being within three (3)
years following the date of issue of the Bonds.
(3) That the foregoing is based upon consultation
with the engineers employed to supervise the construction
of the Project.
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(4) That work on the Project is expected to pro-
ceed with due diligence to completion.
(5) That the Project has not been and is not
expected to be sold or otherwise disposed of in whole
or in part prior to the last maturity of the Bonds.
(6) That all of the proceeds of sale of the
Bonds and investment earnings thereon are needed for
the purpose for which the Bonds are issued, including
expenses incidental to such purpose and to the issuance
of the Bonds.
(7) That accrued interest received upon the sale
of the Bonds will be applied to the first interest due
thereon, and that the balance of the proceeds of sale
of the Bonds will be deposited as provided in Section 11
hereof.
(8) That except for the Bond Fund established
hereunder, the Village has not created or established any
debt service fund, redemption fund, reserve fund,
replacement fund, or any similar fund to pay principal
or interest on the Bonds.
(9) That (a) amounts deposited in the Bond Fund
will be expended within a 13 -month period beginning on the
date of deposit, said fund will be depleted at least
once annually to an amount not greater than 1/12 of the
then current annual debt service on the Bonds, and any
amounts received from investment of money in said fund
will be expended within a one year period beginning
on the date of receipt; or (b) if any portion of the
Bond Fund does not satisfy all of the requirements of
paragraph (9)(a) of Section'l2 hereof, such portion will
be in an amount equal to not more than 2% of the par amount
of the Bonds.
(10) That although money in the Construction Fund
may be required to be used to pay principal and interest
on the Bonds to prevent or remedy a default, such amounts
are not expected to be so used, and there is no assurance
(due to necessity of using such money to pay for the
Project within three (3) years of the issuance of the
Bonds) that such money will be available to pay principal
and interest on the Bonds even if all other sources of
payment are exhausted.
(11) That if at any time after the third anniversary
of the date of issuance of the Bonds, the aggregate amount
of money in the Construction Fund and that portion of the
Bond Fund that does not satisfy all of the requirements of
paragraph (9)(a) of Section 12 hereof equals or exceeds 15%
of the par amount of the Bonds (the "Minor Portion "), such
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money in excess of the Minor Portion shall not be invested
at a yield "materially higher" (within the meaning of Treas.
Reg. §1.103- 13(b)(5) (1979)) than the yield on the Bonds
unless the Village receives an opinion of an attorney at law
or a firm of attorneys of nationally recognized standing in
matters pertaining to the tax - exempt status of interest on
bonds issued by states and their political subdivisions and
duly admitted to the practice of law before the highest
court in any state or of the United States of America to the
effect that investment of such moneys in excess of the
Minor Portion at a yield materially higher than the yield on
the Bonds will not result in the inclusion of interest on
the Bonds in gross income for federal income tax purposes.
(As used herein, the term "yield" means that yield which
when used in computing the present worth of all payments or
principal and interest on an obligation produces an amount
equal to the purchase price.)
(12) That in valuing the moneys on deposit in the
Construction Fund and the Bond Fund at any time for the
purpose of compling with paragraph (11) of Section 12
hereof, investments will be taken into account at purchase
price with the following exception: if an investment is
purchased at a discount or results in interest payments for
any annual period in excess of interest payments for any
preceding 'annual period (reflecting the annual reinvestment
of accrued interest as to principal) the amount of such
discount or excess interest (not discounted to present value)
shall be added to the purchase price ratably each year over
the term of the investment. The yield on such investment
shall be calculated on the basis of the actual payments
received from and the price paid for such investment.
(13) That inf restricting the yield on the moneys
on deposit in the Construction Fund or the Bond Fund at
any time for the purpose of compling with paragraph (11) of
Section 12 hereof, the yield on and market price of
investments will be determined in accordance with Treas.
Reg. §1.103- 13(c)(1)(iii) (1979) notwithstanding that the
Bonds are not refunding bonds.
(14) That the Bonds are not being issued to pay any
principal or interest on any other issue of governmental
obligations of the Village.
(15) That the Village has not been notified of any
disqualification or proposed disqualification of it by the
Internal Revenue Service as a bond issuer which may not
certify bond issues under Treas. Reg. §1.103- 13(a)(2)(ii)
(1979).
(16) That to the best of the knowledge and belief of
the Board, there are no facts, estimates or circumstances
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that would materially change the conclusions and representa-
tions set out in this Section and the expectations set
out in this Section are reasonable.
The Board also certifies and further covenants with the purchasers
and holders of the Bonds from time to time outstanding, that so
long as any of the Bonds remain outstanding, moneys on deposit
in any fund or account in connection with the Bonds, whether or
not such moneys were derived from the proceeds of the sale of
the Bonds or from any other sources, will not be used in a manner
which will cause the Bonds to be "arbitrage bonds" within the
meaning of Section 103(c) of the Internal Revenue Code of 1954,
as amended, and any lawful regulations promulgated or proposed
thereunder, including Treas. Reg. Sections 1.103 -13, 1.103 -14
and 1.103 -15, as the same presently exist, or may from time to
time hereafter be amended, supplemented or revised. The Board
reserves the right, however, to make any investment of such
moneys permitted by Illinois law if, when and to the extent that
said Section 103(c) or regulations promulgated thereunder shall
be repealed or relaxed or shall'b�e held void by final decision
of a court of competent jurisdiction, but only if any investment
made by virtue of such repeal, relaxation or decision would not,
in the opinion of counsel of recognized competence in such matters,
result in making the interest on the Bonds subject to federal
income taxation.
Section 13. Registered Form. The Village recognizes that
Section 103(j) of the Code requires the Bonds to be issued and
tc remain in fully registered form in order that interest thereon
is exempt from federal income taxation under laws in force at
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the time the Bonds are delivered. In this connection, the Village
agrees that it will not take any action to permit the Bonds to
be issued in, or converted into, bearer or coupon form.
Section 14. List of Bondholders. The Bond Registrar
shall maintain a list of the names and addresses of the holders
of all Bonds and upon any transfer shall add the name and address
of the new Bondholder and eliminate the name and address of the
transferor Bondholder.
Section 15. Duties of Bond Registrar. If requested by
the Bond Registrar, the President and Village Clerk of the Village
are authorized to execute the Bond Registrar's standard form of
agreement between the Village and the Bond Registrar with respect
to the obligations and duties of the Bond Registrar hereunder
which may include the following:
(a) to act as bond registrar, authenticating agent,
paying agent and transfer agent as provided herein;
(b) to maintain a list of Bondholders as set forth
herein and to furnish such -list to the Village upon request,
but otherwise to keep such list confidential;
(c) to give notice of redemption of Bonds as pro-
vided herein;
(d) to cancel and /or destroy Bonds which have been
paid at maturity or upon earlier redemption or submitted
for exchange or transfer;
(e) to furnish the Village at-least annually a certi-
ficate with respect to Bonds cancelled and /or destroyed;
and
(f) to furnish the Village at least annually an audit
confirmation of Bonds paid, Bonds outstanding and payments
made with respect to interest on the Londs.
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Section 16. Publication. This ordinance shall be
published in pamphlet form within thirty (30) days after adoption.
Sec_ 17. Effective Date. All ordinances, resolutions
and orders, or parts thereof, in conflict herewith, shall be and the
same are hereby repealed, and this ordinance shall be in full force
and effect immediately and forthwith upon its adoption, approval
and publication.
Adopted December 10, 1985.
AYES: 6 — Marienthal, O'Reilly, Glover, Reid, Shields, Kowalski
NAYS: 0 - None
ABSENT: 0 - None
Approved December 10, 1985.
President
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Published in pamphlet form on December 11 , 1985.
Attest:
VUlage Clerk
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EXHIBIT A
STATE OF ILLINOIS )
SS
COUNTY OF )
SPECIAL SERVICE AREA NUMBER THREE AFFIDAVIT
I, the undersigned, do hereby certify under oath that I
am of ,
Illinois (the "Company "), and as such officer I do further certify
under oath as follows:
1. That since submission of the last Special Service
Area Number Three Affidavit, dated , 19_, to the
Village of Buffalo Grove, Cook and Lake Counties, Illinois (the
"Village "), the Company has expended or has caused to be expended
the sum of $ (the "Expenditures ") on the cost of certain
public improvements (the "Services ") for Special Service Area Number
Three of the Village (the "Area ").
2. That the Expenditures have been expended for construction
f
work more particularly itemized as follows:
Particular Current
Item Expenditure
A. Excavation $
B. Sanitary Sewer
C. Water Main
D. Storm Sewer
E. Paving
F. Street Lighting
G. Landscaping
H. Power Line Relocation
Total $
Total Cost
to Date
$
3. That all of the Expenditures have been made in strict
compliance with (a) the ordinances of thV Village (i) proposing the
i L �
F �
establishment of the Area; (ii) establishing the Area; and (iii)
providing for the issue of the Special Service Area Number Three
Bonds of the Village (the "Bonds "); and (b) the provisions of "AN
ACT to provide the manner of levying or imposing taxes for the
provision of special services to areas within the boundaries of
home rule units and non -home rule municipalities and counties,"
approved September 21,,1973, as amended.
4. That all of the Services are in and for the Area and
are on public property, including public easements.
5. That the Company requests disbursement of proceeds of
the Bonds to it in an amount equal to the Expenditures.
IN WITNESS WHEREOF, I hereunto affix my signature, this
day of , 19 .
Title:
Subscribed and sworn to
before me this day of
, 19_.
Notary Public
My commission expires:
(NOTARY SEAL)
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