1988-044.J
ORDINANCE NO. 88 -44
ORDINANCE PROVIDING FOR THE ISSUANCE OF $2,000,000 OF
GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1988,
OF THE VILLAGE OF BUFFALO GROVE, LAKE AND COOK COUNTIES,
ILLINOIS, AND PROVIDING FOR THE LEVY OF A DIRECT ANNUAL
TAX FOR THE PAYMENT OF PRINCIPAL OF AND INTEREST ON
THOSE BONDS
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF BUFFALO GROVE, LAKE AND COOK COUNTIES,
ILLINOIS, AS FOLLOWS:
Section 1. It is found and declared by the Presi-
dent and Board of Trustees of the Village of Buffalo Grove,
Lake and Cook Counties, Illinois (the "Village "), as follows:
(a) It is necessary and in the best interests of
the Village to undertake a progxam.of improvements
to and extensions of the public works and facili-
ties in the Village for the betterment of the
:-, Village. The program includes, without limitation,
the improvement of the storm water and drainage
system in a portion of the Village and the construc-
tion of an extension of Buffalo Grove Road. The
Village presently estimates the total cost of such
program, together with costs of borrowing money
for that purpose, to be approximately $2,000,000.
(b) The Village does not have sufficient funds on
hand or available from other sources with which to
0
pay the costs of its program of improvements and
extensions or to pay the Village's costs in connec-
tion with the borrowing of money as described in
this Ordinance.
(c) It is in the best interests of the Village to
issue $2,000,000 principal amount of its general
obligation corporate purpose bonds, as provided in
this Ordinance, to pay the costs described above
or to pay the costs of other lawful expenditures
to be incurred by the Village.
(d) The borrowing of the sum of $2,000,000 and
the issuance of general obligation corporate pur-
pose bonds of the Village in that amount for the'
purpose of paying these costs prer-t-ains- to the
government and affairs of the Village, is for a
proper public purpose of the Village and is in the
public interest.
(e) The Village has caused an Official Statement,
together with a Notice of Sale and Official Bid
Form, to be prepared and distributed calling for
bids to purchase the bonds to be issued as provided
in this Ordinance.
(f) The Village has received 8 sealed bids for
the purchase of the bonds to be issued as provided
-2-
e •
in this Ordinance. The bid of First National Bank of Chicago
is the best bid. It is in the best interests of
the Village and the public for the Village to ac-
cept that bid and to issue and deliver such bonds
to the purchasers named in that bid in accordance
with the term of the bid and this Ordinance.
Section 2. The sum of $2,000,000 shall be borrowed
by the Village for its corporate purposes, including (a)
paying costs of the Village for the program of improvements
and extensions described in Section 1(a) above or any other
lawful corporate purpose of the Village, and (b) paying costs
of the Village in connection with the issuance of the bonds
authorized by this Ordinance. In evidence of such borrowing,
negotiable bonds of the Village in the "aggro -gate principal
amount of $2,000,000 (the "Bonds ") shall be issued as provided
in this Ordinance. The Bonds shall be issued only in fully
registered form without coupons in the denominations of $5,000
and integral multiples of that sum. The Bonds shall be
designated "General Obligation Corporate Purpose Bonds, Series
1988" and shall be numbered consecutively from R -1 upward
but need not be authenticated or delivered in consecutive
order. Bonds authenticated and delivered prior to January 1,
1989 shall be dated as of April 1, 1988. Bonds authenticated
and delivered on or after January 1, 1989 shall be dated as
-3-
o •
of the January 1 or July 1 next preceding the date of their
authentication and delivery to which interest has been paid,
except Bonds authenticated and delivered on a January 1 or
July l to which interest has been paid, which Bonds shall be
dated as of that January 1 or July 1. The Bonds shall mature
on January 1 in each of the years and amounts and shall bear
interest from their date until paid at rates per year as
follows:
Maturing
(January 1) Amount Maturing Interest Rate
1990
$ 50,000
5.30
1991
50,000
5.60
1992
75,000
5.80
1993
175,000
6.00
1994
300,000
6.20
1995
250,000
6.40
1996
1,100, 000
6.50
Interest on the Bonds shall be payable on January 1 and
July 1 in each year, with the first interest payment date
being January 1, 1989. Interest shall be computed on the
basis of a 360 -day year of twelve 30 -day months.
maturity.
The Bonds are not redeemable prior to their
Each Bond shall be executed by the manual or
facsimile signature of the Village President and the manual
or facsimile signature of the Village Clerk and shall have
the corporate seal of the Village affixed to it (or a
facsimile of that seal printed on it). The Village President
-4-
e •
and the Village 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 Village whose signature or a facsimile of whose signa-
ture 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 °pu,rpose unless and
until a certificate of authentication on that Bond substan-
tially in the form set forth in the bond form in Exhibit A
of this Ordinance shall have been duly executed by the
Authenticating Agent appointed below. That certificate upon
any Bond shall be conclusive evidence that the Bond has been
authenticated and delivered under this Ordinance.
The Bonds shall constitute the general obligations
of the Village. The full faith and credit of the Village
are pledged to the payment of the principal of and interest
on the Bonds.
2M
e •
Municipal Services Corporation, Countryside,
Illinois, is appointed Authenticating Agent and Bond
Registrar for the Bonds. United Bank of Illinois, Rockford,
Illinois, is appointed Paying Agent.
The Bonds shall be payable in lawful money of the
United States at the principal corporate trust office of the
Paying Agent. The principal of each Bond shall be payable
at maturity upon presentment of the Bond at the principal
corporate trust office of the Paying Agent. Interest on
each Bond shall be payable on each interest payment date by
check or draft of the Paying Agent mailed to the person in
whose name that Bond is registered on the books of the Bond
Registrar at the close of business on the 15th day of the
month preceding such interest payment date.;
The Bonds shall be negotiable, subject to the fol-
lowing provisions for registration and registration of transfer.
The Village shall maintain books for the registration of the
Bonds at the principal corporate trust office of the Bond
Registrar. Each Bond shall be registered on those books.
Transfer of each Bond shall be registered only on those books
upon surrender of that 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 satis-
factory to the Bond Registrar duly executed by the registered
am
o �
owner or his or her duly authorized attorney. Upon surrender
of a Bond for registration of transfer, the Village shall
execute and the Authenticating Agent shall authenticate and
deliver, in the name of the transferee, one or more new Bonds
of the same aggregate principal amount and of the same
maturity as the Bond surrendered.
Bonds may be exchanged, at the option of the
registered owner, for an equal aggregate principal amount of
Bonds of the same maturity which have any authorized denomina-
tions, upon surrender of those Bonds at the principal
corporate trust 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 Bonds is exercised, the Village shall execute,
the Authenticating Agent shall authenticate, and the Bond
Registrar shall deliver, Bonds in accordance with the pro-
visions of this Ordinance. All Bonds surrendered in any
exchange or transfer shall be cancelled immediately by the
Bond Registrar.
For every exchange or registration of transfer of
Bonds, the Village or the Bond Registrar may make a charge
sufficient to reimburse it for any tax, fee or other govern-
-7-
o •
mental charge, other than one imposed by the Village, required
to be paid with respect to that exchange or 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 Village or the Bond Registrar as a condi-
tion precedent to exchange or registration of transfer of
any Bond.
The Bond Registrar shall not be required to exchange
or register the transfer of any Bond during the period from
the 15th day of the month next preceding any interest payment
date to such interest payment date.
The Village, the Paying Agent and the Bond Registrar
may treat the registered owner of any Bohd'as- its absolute
owner, whether or not that Bond is overdue, for the purpose
of receiving payment of the principal of or interest on that
Bond and for all other purposes, and neither the Village,
the Bond Registrar nor the Paying Agent shall be affected by
any notice to the contrary. Payment of the principal of and
interest on each Bond shall be made only to its registered
owner, and all such payments shall be valid and effective to
satisfy the obligation of the Village on that Bond to the
extent of the amount paid.
o e
The Bonds shall be in substantially the form set
forth in Exhibit A to this Ordinance.
Section 3. The bid of First National Bank of Chicago
(the "Purchaser ") to purchase the Bonds at a price of
$ 1,985,000, plus accrued interest to the date of delivery,
is accepted, a copy of which is attached as Exhibit B. That
bid is approved in all respects. The Village President is
authorized and directed to execute an acceptance of that bid
in the name of and on behalf of the Village. The prior
distribution of the Official Statement of the Village dated
March 18, 1988, together with a Notice of Sale and Official
Bid Form, in the form of Exhibit C to this Ordinance, and
all other actions of the Village relating to the offering,
issuance and sale of the Bonds are ratified ,,confirmed and
approved. The Village Manager and the Director of Finance
of the Village are authorized and directed to execute that
Official Statement in the name of and on behalf of the
Village and to deliver the Official Statement to the
Purchaser.
Section 4. The Bonds shall be executed as
provided in this Ordinance and delivered to the Village
Treasurer or Director of Finance who shall deliver them to
the Authenticating Agent. The Authenticating Agent is di-
rected to authenticate the Bonds and deliver the Bonds to
0
•
the Purchaser upon receipt of the purchase price for the
Bonds. The Village President and the Village Clerk are au-
thorized and directed to execute and deliver the Bonds and
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.
Section 5. There is levied a direct annual tax
upon all taxable property within the Village sufficient
(other than as provided below) to pay and discharge the
principal of the bonds at maturity and to pay interest on
the Bonds for each year, including specifically the following
amounts for the following years:
An Amoun.t.'Strff:cient
Year of Levy To Produce the Sum of:
1988
271, 200.00
1989
173, 750.00
1990
195,950.00
1991
291,600.00
1992
406,100.00
1993
337,500.00
1994
1,171,500.00
That tax shall be in addition to all other taxes levied by
the Village. If at any time sufficient funds are not on
hand from amounts derived from this tax levy, and the First
Deposit deposited in the Bond and Interest Fund as provided
in this Section, to make a payment of interest or principal
-10-
o •
on the Bonds as it becomes due, that payment shall be made
from the general funds of the Village. Those general funds
shall be reimbursed from the amounts derived from the taxes
levied by this Ordinance when those amounts shall be on hand
(and not needed for paying other payments of interest or
principal then coming due on the Bonds).
Prior to or upon the issuance of the Bonds, an
amount equal to $ 158,000.00 shall be deposited in the Bond
and Interest Fund established in Section 6 of this Ordinance
(the "First Deposit ") from the Village's general corporate
fund. Interest on the Bonds through July 1, 1989 will be
paid from the First Deposit in lieu of borrowing funds to
cover these interest payments prior to receipt of the taxes
levied to pay them.
Section 6. The Village Clerk is directed to file
a certified copy of this Ordinance with the County Clerks of
Cook and Lake Counties. It shall be the duty of the County
Clerks annually for each of the years 1988 through 1995 to
ascertain the respective rates necessary to produce the tax
levied in this Ordinance and to extend that tax for collection
on the tax books against all of the taxable property within
the Village in connection with other taxes levied in each of
such years for general Village purposes, and such taxes shall
be computed, extended and collected in the same manner as is
-11-
0 0
now or may subsequently be provided for the computation,
extension and collection of taxes for general purposes of
the Village.
When collected, the taxes levied in this Ordinance
shall be placed in a separate and special fund established
exclusively for paying principal of and interest on the Bonds,
designated as "The Corporate Purpose Bonds, Series 1988,
Bond and Interest Fund" (the "Bond and Interest Fund "). The
deposits of such moneys in the Bond and Interst Fund and
investments of the Bond and Interest Fund may be commingled
for deposit and investment purposes with other funds of the
Village established solely for paying principal of and
interest on other general obligation bonds of the Village.
Moneys in the Bond and Interest Fund shall rrever be
commingled with or loaned to any other funds of the Village
which were not established for such a purpose or which are
used for any other purpose, as long as any Bonds are out-
standing and unpaid. All interest and other investment
earnings on the Bond and Interest Fund shall become, when
received, a part of the Bond and Interest Fund, but this
paragraph shall not prevent the Village from transferring
interest and other investment earnings on the Bond and
Interest Fund to general operating funds of the Village, as
long as doing so shall not result in the amounts in the Bond
-12-
C
and Interest Fund being insufficient to pay principal of and
interest on the Bonds as they come due.
Amounts deposited in the Bond and Interest Fund
are appropriated for and irrevocably pledged to, and shall.
be used only for the purpose of, paying the principal of and-:::.
interest on the Bonds, or reimbursing general funds of the
Village expended for those purposes as provided in Section 5
of this Ordinance, or for making transfers from the Bond and
Interest Fund of interest and other investment earnings as
allowed by the preceding paragraph of this Section or for
making rebates of interest or investment earnings to the
United States as may be required by Section 8 of this
Ordinance.
Section 7. The proceeds of tthe Rordds shall be
deposited in the Series 1988 Bond Proceeds Account (the
"Bond Proceeds Account ") which is created and established by
this Ordinance. Such amounts shall be used for the purposes
described in Section 2 of this Ordinance. All amounts
received upon the sale of the Bonds, together with all
interest and other investment earnings on those amounts, are
appropriated and set aside for the purposes for which the
Bonds are being issued as set forth in this Ordinance, or
for making rebates of interest or investment earnings to the
United States as may be required by Section 8 of this
Ordinance.
-13-
Section 8. The Village 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 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 in the
Bond Proceeds Account, the Bond and Interest Fund or any
other funds of the Village which would result in making
interest on the Bonds includable in gross income for federal
income tax purposes by reason of causing the 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 Bonds. The
-14-
0
o .
President, Clerk, Treasurer and Director of Finance of the
Village are authorized and directed to take such action as
is 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 per-
taining to the use of the proceeds of the Bonds and moneys
in the Bond and Interest Fund and the Bond Proceeds Account
in order to establish that the Bonds shall not constitute
arbitrage bonds as so defined, and to cause amounts to be
rebated to the United States as required by Section 148 of
the Code. All amounts required so to be rebated are ir-
revocably appropriated for that purpose. A special fund of
the Village entitled The Series 1988 Bond Rebate Fund is
established for deposit of investment earming- subject to
rebate.
The President and Treasurer are authorized and
directed to cause the Village to designate the Bonds as
"qualified obligations" within the meaning of Section 265(b)
of the Code, the Village not reasonably anticipating issuing
more than $10,000,000 of such obligations.
The Village 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
-15-
levy, extension, collection and application of the
taxes levied by this Ordinance;
(b) it will not take any action which would
adversely affect the levy, extension, collection
and application of the taxes levied by this
Ordinance, except to abate those taxes to the
extent that money is on hand and set aside to pay
principal of and interest on the Bonds; and
(c) it will comply with all present and future
laws concerning the levy, extension and collection
of the taxes levied by this Ordinance; in each
case so that the Village shall be able to pay the
principal of and interest on the Bonds as they
come due.
Section 9. All ordinances, resolutions and orders
or parts of ordinances, resolutions and orders in conflict
with this Ordinance are repealed to the extent of such con-
flict. The Village Clerk shall cause this ordinance to be
published in pamphlet form. This Ordinance shall be in full
force and effect after passage and publication as provided
by law. This Ordinance shall not be codified.
-16-
•
e
PASSED by the President and Board of Trustees of
the Village this April 4, 1988.
Voting Aye ( list names) : 6 - Marienthal, Glover, Reid, Shields,
Voting Nay (list names):
Abstaining (list names):
Absent (list names):
ATTEST:
Kowalski. Shifrin.
0 - None
0 - None
I - V11 1,L Lt,u
illage Clerk
SIGNED by the Village President this April 4, 1988.
Village President
NMA-M.
ViLlAge Clerk
Published in pamphlet form April 5
-17-
1988.
e •
EXHIBIT A
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTIES OF LAKE AND COOK
VILLAGE OF BUFFALO GROVE
GENERAL OBLIGATION CORPORATE PURPOSE BOND,
SERIES 1988
Bond No. R-
Principal Amount: $
Interest Rate:
Date of Bond: Date of Maturity:
Registered Owner:
The Village of Buffalo Grove, Lake and Cook Counties,
Illinois (the "Village "), for value received, promises to
pay to the Registered Owner specified above or registered
assigns, upon presentation and surrender of this bond at the
principal corporate trust office of MunfC-1-pa`1` -S'ervices Corpora-
tion, Countryside, Illinois (the "Bond Registrar ") 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
payment of this bond, payable semiannually on January 1 and
July 1, with the first interest payment date being January 1,
1989. Interest shall be computed on the basis of a 360 -day
year of twelve 30 -day months. Interest on this bond shall
be payable on each interest payment date by check or draft
A -1
•
•
of the Paying Agent mailed to the person in whose name this
bond is registered at the close of business on the 15th day
of the month preceding that interest payment date. The
principal of and interest on this bond are payable in lawful
money of the United States 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 $2,000,000, the proceeds
of which are to be used for corporate purposes of the Village
as described in the Ordinance of the Village authorizing the
issuance of this bond and the issue of bonds of which it is
a part (the "Ordinance "). This bond wags sssued in accordance
with the Illinois Constitution and pursuant to the Ordinance.
This bond and the issue of which it is a part (together the
"Bonds ") have been issued by the Village upon full payment
therefor as provided in the Ordinance. The full faith and
credit of the Village and the tax levy referred to below are
irrevocably pledged to the punctual payment of the principal
of and the interest on this bond. This bond is a general
obligation of the Village.
Bonds are not redeemable prior to their maturity.
A -2
This bond is negotiable, subject to the following
provisions for registration and registration of transfer.
The Village maintains books for the registration and registra-
tion of transfer of Bonds at the principal corporate trust
office of Municipal Services Corporation, as Bond Registrar.
This bond is registered on those books 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 registra-
tion of transfer, a new bond or bonds in the same aggregate
principal amount and of the same maturitr-y will be issued to
the transferee as provided in the Ordinance.
This bond may be exchanged, at the option of the
registered owner, for an equal aggregate principal amount of
bonds of the same maturity which have any authorized denomina-
tion, upon surrender of this bond at the principal corporate
trust 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 Village or the Bond Registrar may make a charge
A -3
sufficient to reimburse it for any tax, fee or other govern-
mental charge, other than one imposed by the Village, required
to be paid with respect to that exchange or 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 Village or the Bond Registrar as a condi-
tion precedent to exchange or registration of transfer of
this bond.
The Bond Registrar.will not be required to exchange
or register the transfer of any Bond during the period from
the 15th day of the month next preceding any interest payment
date to such interest payment date.
The Village, the Paying Agent -and "the Bond Registrar
may 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 Village,
the Bond Registrar nor the Paying Agent 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 Village on this bond to the
extent of the amount paid.
A -4
r�
•
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 and collection of a direct annual
tax, in addition to all other 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
Bonds by the Village will not cause the Village to exceed or
violate any applicable limitation or condition respecting
the issuance of bonds imposed by the law of Illinois or by
any ordinance or resolution of the Village. The Bonds are
issued for purposes for which the Village is authorized by
law to issue bonds including but not limited to the payment
of costs of the Village for the improveent•`and extension of
the Village's public works and public facilities and the
payment of costs of the Village in connection with the issuance
of the 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 Authenticating Agent.
IN WITNESS WHEREOF, the Village of Buffalo Grove,
Lake and Cook Counties, Illinois, by its President and Board
of Trustees, has caused this bond to be executed by the manual
or facsimile signature of its Village President and the manual
A -5
•
0
or facsimile signature of its Village 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 the Bond specified above.
VILLAGE OF BUFFALO GROVE, ILLINOIS
By
Village President
(SEAL)
ATTEST:
Village Clerk
This bond is one of the bonds.des.cribed in the
Ordinance authorizing the issuance of $2,000,000 Village of
Buffalo Grove, Lake and Cook Counties, Illinois General
Obligation Corporate Purpose Bonds, Series 1988.
MUNICIPAL SERVICES CORPORATION
By:
Authorized Officer
For Value Received, the undersigned sells, assigns and
transfers to
this
bond and all rights and title under this bond, and
A -6
irrevocably constitutes and appoints
attorney to transfer this bond on the books kept for registra-
tion of this bond.
Dated:
A -7
5-t; kc,W `ltd it
0
Village of Buffalo Grove
Village Hall
50 Raupp Boulevard
Buffalo Grove; Illinois 60089
Board Members:
OFFICIAL BID FORM 10
April 4, 1988
For the $2,000,000 General Obligation Corporate Purpose Bonds, Series 1988, of the Village of Buffalo Grove,
Illinois ? s desc ' ed in the annexed Official Notice of Sale, which is expressly made a part of this bid, we will pay you
plus accrued interest from April 1, 1988, to the date of delivery for Bonds bearing interest as follows
(each rate a multiple of or ho of 1 %).
MATURITIES— January 1
$50,000 .... 1990 S % $ 75,000 ... 1992 6_`?o% $ 250,000 .. 1995 G �v %
50,000 .... 1991 �% 175,000 ... 1993 �6-6--X2% 1,100,000 .. 1996 _%
300,000 ... 1994 %
Said bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the ap-
proving legal opinion of Schiff Hardin & Waite, Chicago, Illinois. You are to pay for the legal opinion and for printing the
Bonds. Unless we notify you to the contrary within 24 hours, CUSIP numbers are to be applied for Rand printed on the
Bonds, and we agree to accept the Bonds at delivery with the CUSIP numbers as printed.
As evidence of our good faith, we enclose herewith a check to the order of the Treasurer of the Village of Buffalo
Grove, Illinois, in the sum of $40,000 under the terms provided in your Official Notice of Sale. Attached hereto is a list of
members of our account on whose behalf this bid is made.
Description of Check:
Amount: $40,000
Name of Bank
The First National Bank of Chicago
City Chicago State Illinois
)GWK (Cashier's) Check No.
Dated April 4, 1988
(For Use by District Only)
The above check was returned and received for the
above named Account Manager
Respectfully submitted,
Name The First National Bank of Chicago
Account Manager
B Y V.P.
Address One first National Plaza
City Chicago State Illinois
NOT A PART OF BID
Our calculation of net interest cost from above is:
Total Interest .................. $ 817 AX)
Less Premium /Plus Discount ..... $ 1-5�6X)0
Net Interest Cost ............... $ X82 65>0.&)
Net Interest Rate ...............
The foregoing bid was accepted and Bonds sold by resolution of the Village of Buffalo Grove, Illinois, April 4, 1988,
and receipt is hereby acknowledged of the good faith check which is being held in accordance with the terms of the
annexed Official Notice of Sale.
VILY7WE OF BU FAL�VE, ILLINOIS
Village A4 gor_
TOTAL BOND YEARS: 13,275.000
AVERAGE LIFE: 6.638 Years
EXHIBIT "C"
New Issue vestment Rating;
Date of Sale: Monday, AprT4, 1988 Moody's Investors Service... Al .
1:00 P.M., C.D.T. (Outstanding- Review Requested)
OFFICIAL STATEMENT
Subject to compliance by the Village with certain covenants, in the opinion of Schiff Hardin & Waite, Bond
Counsel, under present law interest on the Bonds is not included in gross income for Federal income tax purposes
and thus is exempt from Federal income taxes based on gross income; in addition, interest on the Bonds is not an
item of tax preference for purposes of calculation of the individual alternative minimum tax, all as more fully
discussed under the heading "TAX EXEMPTION" herein.
Dated April 1, 1988
Fully Registered
$2,000,000
VILLLAGE OF BUFFALO GROVE
Lake and Cook Counties, Illinois
General Obligation Corporate Purpose Bonds, Series 1988
Non - Callable Due January 1, 1990 -1996
Denomination: Multiples of $5,000
Principal and semiannual interest payable at the United Bank of Illinois, Rockford, Illinois, the Village's
paying agent. Interest on each Bond shall be paid by check or draft of the paying agent 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 on the books of registration of the Village (the "Bond Register "), kept for that purpose by Municipal Services
Corporation, Countryside, Illinois (the "Bond Registrar "). The principal of the Bonds shall be payable in lawful
money of the United States of America upon presentation and surrender thereof at the principal corporate trust
office of the paying agent in Rockford, Illinois. Interest will be payable each January 1 and July 1, with the first
interest payment due January 1, 1989.
MATURITIES — January 1
$50,000 .............1990 $ 75,000 ............1992 $ 250,000 ........... 1995
50,000 .............1991 175,000 ............1993 1,100,000 ........... 1996
300,000 ............1994
PURPOSE, LEGALITY AND SECURITY
These General Obligation Corporate Purpose Bonds, Series 1988 (the "Bonds "), are being issued pursuant to
the home rule powers of the Village of Buffalo Grove (the "Village ") for the purpose of constructing street
improvements and drainage improvements.
The Bonds, in the opinion of bond counsel, Schiff Hardin & Waite, Attorneys, Chicago, Illinois, will constitute
valid and legally binding obligations of the Village, payable both as to principal and interest from ad valorem taxes
levied Against all taxable property therein without limitation as to rate or amount. The Village will furnish the
approving opinion of said bond attorneys evidencing legality of the Bonds and that the interest thereon is exempt
from Federal income taxes as described under the heading "Tax Exemption" herein. Bond counsel has not reviewed
nor participated in the preparation of this Official Statement.
The Village intends to designate the Bonds as "qualified tax - exempt obligations" pursuant to the small issuer
exception provided by the Internal Revenue Code of 1986, which affords banks and thrift institutions purchasing
the Bonds more favorable treatment of their deduction for interest expense than would otherwise be allowed under
the Code for taxable years of such institutions ending after December 31, 1986.
The information in this Official Statement has been compiled from sources believed to be reliable, but is not
guaranteed. As far as any statements herein involve matters of opinion, whether or not so stated, they are intended
as such and not as representations of fact.
This Official Statement has been prepared under the authority of the President and Board of Trustees of the
Village of Buffalo Grove, Illinois. Additional copies may be obtained from Mr. William R. Balling, Village
Manager, Village Hall, 50 Raupp Boulevard, Buffalo Grove, Illinois 60089, or from the Public Finance Consultants
to the Village:
Established 1954
Speer Financial, Inc.
PUBLIC FINANCE CONSULTANTS
55 EAST MONROE STREET • CHICAGO, ILLINOIS 60603
Area 312 -346 -3700
MW Statement of Bonded Indebtedness
As of April 1, 1988 (Including the Bonds)
Total Net Direct and Overlapping Bonded Debt .......... $ 25,334,517 10.11% 3.37% $ 844.48
Note: (1) Excludes $14,341,000 of general obligation debt which is scheduled to be abated from other revenue
sources. See `Debt Retirement" section of this Official Statement.
REGISTRATION, TRANSFER AND EXCHANGE
The Village shall cause books (the "Bond Register ") for the registration and for the transfer of the Bonds to be kept
at the principal business office of the Bond Registrar in Countryside, Illinois.
Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of
the charges as set forth in the Bond Ordinance. Upon surrender for transfer or exchange 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 such owner's attorney
duly authorized in writing, the Village shall execute and the Bond Registrar shall authenticate, date and deliver in the
name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the
same maturity and interest rate of authorized denominations, for a like aggregate principal amount.
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 Bonds previously paid.
The Bond Registrar shall not be required to transfer or exchange any Bond during the period from the 15th day of
the month next preceding any interest payment date to such interest payment date.
The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof
for all purposes, and payment of the principal of or interest on any Bonds shall be made 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 exchange of Bonds.
Ratio To
Amount
Estimated
Per Capita
Applicable
Assessed
Actual
(Est. 30,000)
Equalized Assessed Valuation of Taxable Property, 1986 ...
$250,558,340
100.00%
33.33%
$ 8,351.94
Estimated Actual Value, 1986 .........................
$751,675,020
300.00%
100.00%
$25,055.83
Total Direct Debt .... ...............................
$ 24,162,000
9.64%
3.21%
$ 805.40
Net Direct Debt(]) ... ...............................
$ 9,821,000
3.92%
1.31%
$ 327.37
Overlapping Debt (Detail Inside):
Schools ......... ...............................
9,981,194
3.98%
1.33%
332.71
All Other ....... ...............................
5,532,323
2.21%
0.73%
184.40
Total Net Direct and Overlapping Bonded Debt .......... $ 25,334,517 10.11% 3.37% $ 844.48
Note: (1) Excludes $14,341,000 of general obligation debt which is scheduled to be abated from other revenue
sources. See `Debt Retirement" section of this Official Statement.
REGISTRATION, TRANSFER AND EXCHANGE
The Village shall cause books (the "Bond Register ") for the registration and for the transfer of the Bonds to be kept
at the principal business office of the Bond Registrar in Countryside, Illinois.
Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of
the charges as set forth in the Bond Ordinance. Upon surrender for transfer or exchange 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 such owner's attorney
duly authorized in writing, the Village shall execute and the Bond Registrar shall authenticate, date and deliver in the
name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the
same maturity and interest rate of authorized denominations, for a like aggregate principal amount.
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 Bonds previously paid.
The Bond Registrar shall not be required to transfer or exchange any Bond during the period from the 15th day of
the month next preceding any interest payment date to such interest payment date.
The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof
for all purposes, and payment of the principal of or interest on any Bonds shall be made 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 exchange of Bonds.
OVILLAGE OF BUFFALO (OVE
Lake and Cook Counties, Illinois
Verna L. Clayton
President
Bond of Trustees
Gary Glover John Marienthal
Melanie E. Kowalski William Reid
William R. Balling
Village Manager
William H. Brimm
Director of Finance
and General Services
Brian Rubin
Village Treasurer
GENERAL INFORMATION
Patrick Shields
Jordan Shifrin
William G. Raysa
Village Attorney
Janet M. Sirabian
Village Clerk
The Village of Buffalo Grove is located in Lake and Cook Counties approximately 30 miles northwest of downtown
Chicago. It is 7.5 square miles in size and has a currently estimated population of 30,000. A special census in 1985
reported a population of 26,168. About 75% of the Village's land area is in Lake County. The Cook County portion of the
Village is largely developed and virtually all of its future growth is expected to take place in Lake County. Buffalo Grove
is a home rule unit under the terms of Illinois law pursuant to a 1980 referendum, during which year it had a population of
22,230. The 1970 Census population was 12,333. Buffalo Grove was incorporated as a Village on March 7, 1958.
The Village President and six - member Board of Trustees are elected on at -large basis. A Village Manager has been
in charge of the day -to -day operations of Buffalo Grove since 1967, and the current Manager has held the position for 11
years. The Village has 140 full -time employees. Emergency services are centered in the police station and two fire
stations. There are presently 46 full -time police officers as well as a support staff of 21 civilians. Each of the Village's 22
full -time firefighters is also a fully certified paramedic. The Village owned water and sewer system distributes Lake
Michigan water which is taken from the lake and treated by the City of Evanston and delivered to Buffalo Grove by the
Northwest Water Commission. There are also three wells which are maintained on a standby basis. The sewage collection
system delivers sewage for treatment to the Metropolitan Sanitary District of Greater Chicago (Cook County) and to the
Lake County Public Works Department.
SOCIOECONOMIC INFORMATION
The following U.S. Census statistics show that the residents of Buffalo Grove have higher incomes and have had
more education than those of the State of Illinois as a whole and of Lake and Cook Counties. Median family income
within the Village was 42% greater than the State's amount and the median value of owner occupied homes was 67%
greater than the State's. In addition, median household income was $30,417 in 1979, and 67% of the households had an
income of $25,000 or more.
Selected Census Statistics
1980 Census
Median Median % Homes Persons 25 Years Old and Older
High School
Family
Home
0
Owner
88.8%
Income
Value
Occupied
Buffalo Grove ....... ...............................
$32,338
$89,800
82.7%
Lake County ....... ...............................
28,045
74,100
73.3%
Cook County ....... ...............................
23,077
63,000
52.1%
Illinois ............. ...............................
22,746
53,900
62.6%
High School
4 Years or More
Graduates
of College
88.8%
35.5%
77.6%
25.1%
64.3%
17.1%
66.5%
16.2%
As can be seen in the following table, Census Bureau estimates show slightly higher rates of growth in per capita money
income from 1979 to 1985 within Buffalo Grove than for the State and the two counties.
Per Capita Money Income C
1979-1985,
1979 1983 1985 Increase
Buffalo Grove:
Lake Portion .............................
$10,664
$13,700
$16,381
53.61%
Cook Portion .............................
10,085
13,028
14,461
43.39%
Lake County .. ...............................
10,103
12,869
15,029
48.76%
Cook County . ...............................
8,229
10,589
11,514
39.92%
Illinois ....... ...............................
8,065
10,299
11,302
40.14%
Business and Industry
-s
There are indications that retail, wholesale and service activities within the Village have increased greatly over the
last decade. The sales of retail and wholesale establishments were withheld in 1977 by the Census of Business in order to
avoid disclosure, and service industry receipts were under $3,000,000 during the year. The 1982 Census of Business
reported approximately $79 million of retail sales and $46.8 million of wholesale sales. Service receipts increased six -fold
to over $17 million.
Retail Trade Wholesale Trade
1982 1982
1977
Service Industries
1982
Estab. Sales(000) Estab. Sales(000) Estab. Receipts(000) Estab. Receipts(000)
Buffalo Grove - Lake ................. 4 $ 742 14 $ 6,152 14 $ 273 9 $ 1,949
Buffalo Grove - Cook ................. 107 78,245 25 40,622 106 2,444 87 15,249
Buffalo Grove Total ................. 111 $78,987 39 $46,774 120 $2,717 96 $17,198
Although the "sales" tax receipts received by the Village from its 1% tax is not directly comparable to any of the above
Census of Business categories, they indicate considerable growth in such activities since 1982. Such tax receipts doubled
from calendar 1982 to 1987: $928,245 to $1,857,000. The receipts for 1987 are estimated, based on 11 months.
Buffalo Grove is not included in the 1977 or 1982 Census of Manufactures. The Census lists data for places with 450
manufacturing employees or more and it is assumed the Village had less than the minimum number of employees during
the census years. It is believed this circumstance is changing. There are three areas along the Lake -Cook Road corridor
being developed for light industry and office buildings by Hamilton Partners. In addition, three other business and
industrial parks are under active development in the Lake County portion of the Village. Firms that have located in these
areas include Johnson & Johnson, Hospital Services; Chicago Boiler Company; W.R. Grace and Company; Industrial
Towel and Uniform; Okamoto Corp.; Transtaafl Electric Cable, Inc. (USA); Toshiba American, Inc.; W.W. Grainger,
Inc. and Yanmar Diesel America, Inc.
Employment
The Village has several employers who have in excess of 100 employees. These include a J.C. Penney order
processing center, a Harris Bank credit card office, Mid -West Automation Systems, Inc. (manufacturer) and R.G. Ray
Corporation (manufacturer). Employers with more than 1,000 employees located in nearby communities include:
Motorola Communications and Electronics, Inc.; Seaquist Value Company; Bausch and Lomb, Inc.; Inventory Control
Services Corporation; Cooper Tire & Rubber; United Parcel Service; Del E. Webb Construction Inc.; Baxter Travenol
Laboratories, Inc.; Littlefuse Inc.; Talman Home Federal; Allstate Insurance Company; Universal Oil Products;
Northwest Community Hospital; Lutheran Social Services of Illinois; General Data Communications Industries, Inc.;
AAR Corporation; Honeywell; Central Telephone Company of Illinois; Underwriters Laboratories, Inc.; Kitchens of
Sara Lee; Falcon Jet Corporation; Symons Corporation; Alexian Brothers Medical Center; Holy Family Hospital; and
Super Plus Food Warehouse, Inc.
According to the preliminary January, 1988, figures of the Illinois Bureau of Employment Security, the Village of
Buffalo Grove had an unemployment rate of 3.3 %. The State of Illinois recorded an unemployment rate of 7.4 %, Cook
County 6.7 %, and Lake County 4.7 %.
Housing
Building permits in recent years show a higher proportion of permit value for non - residential purposes than during
the early 1980's. Recent large nonresidential permits have been for buildings which house companies listed above under
"Business and Industry ".
4
® Value of Building Permits* •
(Excludes Value of Land)
Calendar
Year
1982 .. ...............................
Single- Family
Units Value
46 $ 2,192,239
Multi- Family
Units Value Other Total
78 $ 2,540,500 $ 8,433,643 $13,166,382
1983 .. ...............................
211
10,440,750
242
1984 .. ...............................
489
22,002,799
360
1985 .. ...............................
358
22,999,380
324
1986 .. ...............................
450
28,282,306
894
1987 .. ...............................
386
33,662,567
631
* Source: Bell Federal Savings Survey of Building.
DEBT RETIREMENT
8,590,204 4,488,513 23,519,467
12,617,598 8,642,101 43,262,498
8,515,316
25,512,075
57,026,771
38,290,714
22,316,739
88,889,759
22,652,845
21,546,753
77,862,165
During the current fiscal year ending April 30, 1988, the Village has retired in advance of maturity $470,000 of
various general obligation notes issued for fire station and roadway improvement purposes. The following debt retirement
table excludes $3,340,000 Waterworks and Sewerage Revenue Bonds, due May 1, 1988 -2000 and $8,500,000 Tax
Increment Area Bonds due September 1, 1996. These Tax Increment Bonds are payable solely from incremental revenues
and are not a general obligation of the Village. The table also excludes three issues of Special Service Area
Bonds in the combined amount of $13,450,000 due December 1, 2000 -2006. The Special Service Area Bonds were issued
in 1985 to pay the cost of public improvements in three specific areas within the Village and are payable from taxes levied
only within those areas. The land within the Special Service Areas is owned and is being developed for light industry and
office buildings by Hamilton Partners. One of the areas is almost completely developed, another is being enlarged and is
above one -third developed, and development on the third area is expected to start within the next year. The combined
1986 equalized assessed valuation of the three areas was less than 1% of the Village valuation but is expected to increase
materially as existing development is added to the tax rolls and as development proceeds. The debt retirement table
includes $357,000 principal amount Golf Course Installment Purchase Contract payments due each May 1 and
November 1, 1988 -1991. Payments on this contract have been made in full from golf course revenues and this practice is
expected to continue.
The Village has in the past abated a portion of the taxes for its general obligation debt from Water and Sewer System
revenues, golf course revenues, motor fuel taxes, and transfers from other Funds. Slightly over 51% of the levy amounts
for principal and interest on Village -wide tax supported debt were abated during tax levy years 1980 -1986. The amount
abated for 1987 amounted to 48% of that year's debt service levy. Proceeds from the $3,500,000 General Obligation
Corporate Purpose Bonds of 1987 are being used to construct a second Village owned golf course. Tax levies for the 1987
bonds are expected to be abated from available pledged revenues in the Village Golf Course Enterprise Fund from both
courses. The tax levies for the Series 1988 Bonds now being issued have been structured so as to be abated from estimated
developer fees to be received annually by the Village. It is the current policy of the Village to continue to abate some
general obligation debt levies in whole or in part, but this policy is subject to change based upon the sufficiency of funds for
abatement or for any other reason. The following debt retirement table includes the combined annual principal retirement
schedule for all general obligation debt, the amount expected to be abated and paid from other funds and the net
combined principal retirement schedule expected to be paid from Village -wide property taxes. The actual amount of debt
levies to be abated will be determined on a year -by -year basis.
Debt Retirement Schedule
C
Fiscal
Year Total Cumulative
Net
Cumulative
Ending Principal Percent
Paid From
Principal
Percent
April 30 Due Retired
Other Funds*
Due
Retired
1989 ........ ............................... $ 1,098,000 4.54%
$ 526,250
$ 571,750
5.82%
1990 ........ ............................... 1,183,000 9.44%
562,000
621,000
12.14%
1991 ........ ............................... 1,458,000 15.47%
784,250
673,750
19.00%
1992 ........ ............................... 1,578,000 22.01%
836,250
741,750
26.56%
1993 ........ ............................... 1,600,000 28.63%
809,000
791,000
34.61%
1994 ........ ............................... 1,825,000 36.18%
963,250
861,750
43.39%
1995 ........ ............................... 1,660,000 43.05%
1,033,000
627,000
49.77%
1996 ........ ............................... 1,635,000 49.82%
993,500
641,500
56.30%
1997 ........ ............................... 2,450,000 59.96%
1,778,000
672,000
63.14%
1998 ........ ............................... 1,170,000 64.80%
661,250
508,750
68.32%
1999 ........ ............................... 1,270,000 70.06%
715,500
554,500
73.97%
2000 ........ ............................... 1,400,000 75.85%
787,250
612,750
80.21%
2001 ........ ............................... 825,000 79.26%
504,000
321,000
83.48%
2002 ........ ............................... 885,000 82.93%
540,500
344,500
86.98%
2003 ........ ............................... 970,000 86.94%
589,500
380,500
90.86%
2004 ........ ............................... 1,055,000 91.31%
638,500
416,500
95.10%
2005 ........ ............................... 845,000 94.81%
542,500
302,500
98.18%
2006 ........ ............................... 615,000 97.35%
436,250
178,750
100.00%
2007 ........ ............................... 310,000 98.63%
310,000
-0-
2008 ....................................... 330,000 100.00%
330,000
-0-
Total ....... ............................... $24,162,000
$14,340,750
$9,821,250
* Amount represents abatement of 100% of the Series 1981 and Series 1987 debt service from
golf course revenues,
abatement of 100% of the Series 1988 debt service from developer's fees, 25% of the Series 1982A debt service from
water revenues, 50% of the Series 1984 debt service from water revenues, and 45% of the 1986 debt service from golf
course revenues and use of existing fund balances within the Village's Corporate Fund.
The Village has no plans for 1988 debt issuance related to public improvements.
Detailed Overlapping Bonded Debt
(As of April 1, 1988)
Outstanding
Applicable
Overlapping Body
Debt
Percent(])
Amount
School Districts:
Wheeling School District #21 .. ............................... $
9,600,000
14.858% $
1,426,368
Harper Community College #512 ..............................
10,695,000
1.583%
169,302
Kildeer Countryside Community Consolidated #96 ................
2,500,000
53.083%
1,327,075
Aptakisic -Tripp Community Consolidated #102 ..................
8,075,000
50.411%
4,070,688
Adlai E. Stevenson High School District #125 ....................
9,400,000
31.549%
2,965,606
College of Lake County #532 .. ...............................
5,575,000
3.853%
22,155
Total School Districts ............................ ...............................
$
9,981,194
Other Than School Districts()):
Cook County ................ ............................... $313,550,000(3)
0.244% $
765,062
Cook County, Forest Preserve District ..........................
21,550,000(3)
0.244%
52,582
Metropolitan Sanitary District of Greater Chicago ................
647,390,000(3)
0.250%
1,618,475
Lake County (Includes Public Building Commission) ..............
33,080,000
3.193%
1,056,244
Lake County Forest Preserve District ...........................
17,665,000
3.193%
564,043
Buffalo Grove Park District .... ...............................
1,475,000
94.961%
1,400,675
Wheeling Park District ........ ...............................
2,425,000
1.306%
31,671
Vernon Area Public Library District ............................
245,000
17.784%
43,571
Total Other Than Schools ........................ ...............................
$
5,532,323
Total Overlapping Debt .......................... ...............................
$15,513,517
Notes: (1) Overlap percentages are based on 1986 Equalized Assessed Valuation.
(2) Not included are obligations totaling $13,450,000 that are obligations of Village of Buffalo Grove Special
Service Areas #1 -3 that are payable by the Hamilton Partners or
their assignees
from ad valorem taxes
extended only in the defined areas.
(3) As of December 31, 1987
6
OESSED VALUATION AND TAX INFOATION
The 1986 Equalized Assessed Valuation of Buffalo Grove was twice the amount in 1979. Most of the recent growth
has taken place in the Lake County portion of the Village and this trend is expected to continue. The Cook County portion
is already largely developed and annexation opportunities exist in Lake County. The Village's 1986 valuation in Lake
County was nearly equal to its total valuation in 1980.
Equalized Assessed Valuation
Last Ten Fiscal Years
Year
1977 ................ ...............................
1978 ................ ...............................
1979 ................ ...............................
1980 ................ ...............................
1981 ................ ...............................
1982 ................ ...............................
1983 ...............................................
1984 ................ ...............................
1985 ................ ...............................
1986 ................ ...............................
Lake
$ 33,305,344
49,425,922
65,828,832
81,286,826
86,413,201
89,707,131
95,215,991
104,846,000
124,316,165
154,845,447
Real Prop
Assessed Values
Cook
$52,325,287
54,570,919
58,029,223
73,669,999
79,265,576
85,057,050
81,251,426
91,270,981
90,721,731
95,712,893
,rty
Percent
of
Total Growth
$ 85,630,631 5.5%
103,966,841 21.4%
123,858,055 19.1 %
154,956,825 25.1%
165,678,777 6.9%
174,764,181 5.5%
176,467,417 1.0%
196,116,981 11.1%
215,037,896 9.6%
250,558,340 16.5%
The property tax levies of Illinois municipalities located in more than one county are usually allocated between the
counties based upon the equalized assessed valuation of the municipality within each one. Buffalo Grove uses a different
method due to the variances in property assessment practices in Lake and Cook Counties. The Village tax levy is
apportioned between taxpayers in the two counties based upon an annual statistical analysis by the Illinois Department of
Revenue which results in an allocation of taxes based on market value. The Village believes this in the fairest method of
distributing its property tax requirements.
The Village reports that is has never had a properly tax collection ratio of less than 97% and that its ten year
collection average, to April 30, 1987, is 99.44 %. Due to this historically high level of collection, the Village each year
adopts a formal resolution requesting the two county governments (the tax levying and collecting agencies) to not add any
additional amounts to the Village levy for the costs and losses of collection.
Tax Extensions and Collections*
Lake County
Cook County
Percent of
Percent of
Total
Current
Current
Percentage
Levy
Year
Collection
Year
Taxes
Levied
Taxes
Collected
Levy
Collected
Taxes
Levied
Taxes
Collected
Levy
Collected.
of Levy
Collected
1976
....... 1977 .......
$ 185,354
$ 177,370
95.69%
$ 447,042
$ 439,333
98.28%
97.52%
1977
....... 1978 .......
227,927
227,989
100.03%
445,112
420,281
94.42%
96.32%
1978
....... 1979 .......
333,126
328,192
98.52%
486,057
485,735
99.93%
99.36%
1979
....... 1980 .......
435,129
424,251
97.50%
429,997
425,059
98.85%
98.17%
1980
....... 1981 ........
942,927
933,398
98.99%
766,530
764,469
99.73%
99.32%
1981
....... 1982 .......
1,076,709
1,073,887
99.74%
1,028,867
1,008,015
97.97%
98.88%
1982
....... 1983 .......
954,484
952,573
99.80%
1,124,454
1,119,734
99.58%
99.68%
1983
....... 1984 .......
1,494,891
1,478,297
98.89%
1,612,841
1,608,932
99.76%
99.34%
1984
....... 1985 .......
1,762,461
1,759,476
99.83%
1,804,428
1,820,275
100.88%
100.36%
1985
....... 1986 .......
. 1,965,439
1,960,348
99.74%
1,729,156
1,724,222
99.72%
99.73%
1986
....... 1987 .......
2,160,094
2,156,741
99.84%
1,705,796
1,692,963
99.26%
99.59%
*Source:
Village of Buffalo Grove tax collection registers forwarded with remittances from County Treasurers of
Cook and Lake Counties,
Illinois.
Ta es Per $100 Equalized Assessed Valuation
Lake County
8
f
1982
1983
1984
1985
1986
Village of Buffalo Grove:
General ..................... ...............................
$0.222
$0.237
$0.168
$0.211
$0.186
Fire Service .................. ...............................
0.442
0.499
0.469
0.464
0.408
Street and Bridge ............. ...............................
0.083
0.089
0.084
0.086
0.076
Street Lighting ............... ...............................
0.021
0.027
0.028
0.027
0.026
Police Protection .............. ...............................
0.062
0.067
0.063
0.065
0.057
Bond and Interest ............. ...............................
0.061
0.476
0.679
0.534
0.497
Police Pension ................ ...............................
0.055
0.054
0.057
0.061
0.035
Fire Pension .................. ...............................
0.026
0.027
0.033
0.030
0.020
Illinois Municipal Retirement Fund ..............................
0.074
0.081
0.089
0.094
0.082
Other(]) ..................... ...............................
0.018
0.013
0.011
0.009
0.008
Total Village .......... ...............................
$1.064
$1.570
$1.681
$1.581
$1.395
County, Including Forest Preserve District ........................
0.594
0.583
0.696
0.758
0.802
Combined Schoo Districts #96, #125, and #532 ....................
4.583
4.838
4.836
5.046
5.063
Buffalo Grove Park District ..... ...............................
0.401
0.404
0.448
0.421
0.526
Indian Trails Public Library District .............................
0.229
0.255
0.332
0.328
0.336
All Other .................... ...............................
0.250
0.273
0.192
0.243
0.180
Total Tax Rate(2) ..... ...............................
$7.121
$7.923
$8.185
$8.377
$8.302
Cook County
1982
1983
1984
1985
1986
Village of Buffalo Grove
General ..................... ...............................
$0.278
$0.301
$0.197
$0.258
$0.243
Fire Service .................. ...............................
0.552
0.635
0.554
0.568
0.533
Street and Bridge ............. ...............................
0.104
0.113
0.099
0.106
0.099
Street Lighting ............... ...............................
0.026
0.034
0.034
0.034
0.034
Police Protection .............. ...............................
0.078
0.085
0.074
0.079
0.074
Bond and Interest ............. ...............................
0.073
0.595
0.796
0.626
0.629
Police Pension ................ ...............................
0.068
0.068
0.068
0.072
0.031
Fire Pension .................. ...............................
0.030
0.034
0.038
0.037
0.024
Illinois Municipal Retirement Fund ..............................
0.092
0.103
0.104
0.115
0.105
Other(]) ..................... ...............................
0.021
0.017
0.013
0.011
0.010
Total Village .......... ...............................
$1.322
$1.985
$1.977
$1.906
$1.782
County, Including Forest Preserve District ........................
0.937
1.023
1.059
0.954
0.964
Metropolitan Sanitary District of Greater Chicago .................
0.664
0.715
0.694
0.612
0.635
Combined School Districts #21, #214, and #512 ....................
4.701
4.761
4.672
4.725
5.052
Buffalo Grove Park District ..... ...............................
0.406
0.473
0.502
0.579
0.649
Indian Trails Public Library District .............................
0.247
0.256 ,
0.329
0.329
0.334
All Other .................... ...............................
0.045
0.061
0.044
0.096
0.125
Total Tax Rate ........ ...............................
$8.322
$9.274
$9.277
$9.201
$9.541
Notes: (1) Includes: Auditing, Crossing Guard, and Emergency Service
and Disaster Agency.
(2) Overlapping tax rates for Lake County represented include only District #96 and Indian Trails Library
District, as the majority of Buffalo Grove is within those districts.
8
f
Note: (1) This shopping center is now owned by Hamilton Partners
FINANCIAL INFORMATION
It is the Village's policy to maintain a high level of invested cash balances. Small operating balances are maintained
in savings accounts which act as initial depository accounts. One checking account is maintained along with two "zero
balance" disbursement clearing accounts for payables and payroll. The Village has a formal investment and deposit
policy which is utilized for all its operational and debt service funds, along with its self- managed pension funds. There are
monthly treasury reports and quarterly monitoring of the policy in relation to cash and investment balances. All deposi-
tory institutions have been notified as to the Village policy on the control of its monies and investments.
Investments are stated at cost or amortized cost, which approximates market. The following is a summary of cash
and investments at April 30, 1987:
Interest- bearing deposits in banks, savings and loans, and money market
funds; insured or collateralized with securities held by the Village's agent. .
Interest - bearing deposits in banks and savings and loans; uncollateralized and
uninsured................. ...............................
Illinois Public Treasurer's Investment Pool ...........................
Registered U.S. Government securities ..............................
Deferred compensation plan investments directed and held by plan
administrator .................. ...............................
Funds
Other Than
Pension Pension
Trust Trust
Funds Funds Total
$1,377,950 $ 8,702,938 $10,080,888
-0- 76,179 76,179
332,000 21,263,000 21,595,000
2,552,814 998,305 3,551,119
-0- 359,521 359,521
$4,262,764 $31,399,943 $35,662,707
The Village did not utilize repurchase agreements during the year. Uncollateralized and uninsured balances during
the year did not significantly exceed the April 30, 1987 balances shown above.
The Village's accounting records for the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project
Funds, and Agency Fund are maintained using the modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The
primary revenue sources that are treated as susceptible to accrual under the modified accrual basis of accounting are
property taxes, sales taxes, income taxes, and interest income. Expenditures, other than interest on long -term debt, are
recorded when the liability is incurred.
The financial statements are audited annually by certified public accountants. For each of the years presented in the
following table, the Village has received the Government Finance Officers Association Certificate of Achievement for ex-
cellence in Financial Reporting. The following reports are summaries and do not purport to be the complete audits, copies
of which are available upon request.
Principal Taxpayers a
1986
Name
Type of Business
Assessed
Valuation
Individual . ...............................
Plaza Verde Shopping Center .................
$ 4,52,495
American National Bank ...................
Corporate Grove ............................
2,387,810
CNC Realty .............................
Apartments. ...............................
2314 910
Sidcor Management .......................
Strathmore Court Shopping Center .............
2,051,896
Lexington Development ....................
Commercial Center ..........................
1,213,490
Wheeling Trust & Savings Bank Trust #76 -237 .
Commercial Property ........................
1,033,724
Continential Bank of Buffalo Grove ...........
Commercial Banking ........................
996,526
LaSalle National Bank Trust #104353 ........
Grove Court . ...............................
992,537
Gregg Builders ...........................
Commercial Property ........................
987,369
Trammel Crow Company(]) .................
Chase Plaza . ...............................
891,658
Total
...
$17,422,415
Total as Percent of Village ($250,558,340) ........... ...............................
6.95%
Note: (1) This shopping center is now owned by Hamilton Partners
FINANCIAL INFORMATION
It is the Village's policy to maintain a high level of invested cash balances. Small operating balances are maintained
in savings accounts which act as initial depository accounts. One checking account is maintained along with two "zero
balance" disbursement clearing accounts for payables and payroll. The Village has a formal investment and deposit
policy which is utilized for all its operational and debt service funds, along with its self- managed pension funds. There are
monthly treasury reports and quarterly monitoring of the policy in relation to cash and investment balances. All deposi-
tory institutions have been notified as to the Village policy on the control of its monies and investments.
Investments are stated at cost or amortized cost, which approximates market. The following is a summary of cash
and investments at April 30, 1987:
Interest- bearing deposits in banks, savings and loans, and money market
funds; insured or collateralized with securities held by the Village's agent. .
Interest - bearing deposits in banks and savings and loans; uncollateralized and
uninsured................. ...............................
Illinois Public Treasurer's Investment Pool ...........................
Registered U.S. Government securities ..............................
Deferred compensation plan investments directed and held by plan
administrator .................. ...............................
Funds
Other Than
Pension Pension
Trust Trust
Funds Funds Total
$1,377,950 $ 8,702,938 $10,080,888
-0- 76,179 76,179
332,000 21,263,000 21,595,000
2,552,814 998,305 3,551,119
-0- 359,521 359,521
$4,262,764 $31,399,943 $35,662,707
The Village did not utilize repurchase agreements during the year. Uncollateralized and uninsured balances during
the year did not significantly exceed the April 30, 1987 balances shown above.
The Village's accounting records for the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project
Funds, and Agency Fund are maintained using the modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The
primary revenue sources that are treated as susceptible to accrual under the modified accrual basis of accounting are
property taxes, sales taxes, income taxes, and interest income. Expenditures, other than interest on long -term debt, are
recorded when the liability is incurred.
The financial statements are audited annually by certified public accountants. For each of the years presented in the
following table, the Village has received the Government Finance Officers Association Certificate of Achievement for ex-
cellence in Financial Reporting. The following reports are summaries and do not purport to be the complete audits, copies
of which are available upon request.
General Fund
$ -0-
$ -0-
$ 69,110
$ 106,113
Balance Sheet
163,087
254,160
245,258
71,597
Deposits ............... ...............................
Audited As Of April 30
209,953
314,633
1984
1985
1986
1987
Assets:
86,402
32,741
46,890
Deferred Property Tax Revenue ..........................
Cash and Investments .... ...............................
$1,354,726
$2,713,079
$2,710,000
$4,234,000
Receivables:
$1,928,487
$2,033,008
$2,417,653
Property Taxes ..... ...............................
1,513,532
1,377,813
1,535,858
1,659,422
Municipal Sales Tax . ...............................
265,830
302,962
328,386
430,796
Illinois Income Tax .. ...............................
40,136
42,683
49,196
88,286
Interest ........... ...............................
15,029
20,956
23,406
28,045
Miscellaneous ...... ...............................
10,000
10,000
10,000
10,000
Due From Other Funds .. ...............................
4,183
6,757
6,988
4,284
Total Assets .... ...............................
$3,203,436
$4,474,250
$4,663,834
$6,454,833
Liabilities and Fund Equity:
Bank Overdraft ......... ...............................
$ -0-
$ -0-
$ 69,110
$ 106,113
Accounts Payable and Accrued Liabilities ..................
163,087
254,160
245,258
71,597
Deposits ............... ...............................
209,953
314,633
534,686
667,511
Due To Other Funds .... ...............................
41,915
86,402
32,741
46,890
Deferred Property Tax Revenue ..........................
1,513,532
1,377,813
1,535,858
1,659,422
Total Liabilities . ...............................
$1,928,487
$2,033,008
$2,417,653
$2,551,533
Unreserved Fund Equity . ...............................
1,274,949
2,441,242
2,246,181
3,903,300
Total Liabilities and Fund Equity .................
$3,203,436
$4,474,250
$4,663,834
$6,454,833
General Fund
Revenues and Expenditures
Audited Years Ending April 30
Estimated
1984
1985
1986
1987
1988
Revenues:
Property Taxes .............................
$1,608,544
$1,927,442
$1,854,547
$2,010,681
$2,071,962
Licenses and Permits ........................
796,648
1,360,146
1,584,037
2,170,447
2,290,984
State Income Tax ...........................
486,340
515,682
565,009
692,397
692,752
Sales Tax ... ...............................
1,095,055
1,248,977
1,388,966
1,969,484
1,854,975
Other Intergovernmental Revenues .............
63,434
108,783
45,145
85,922
101,773
Fines ...... ...............................
290,158
312,864
342,686
373,031
381,118
Interest Income .............................
124,777
196,561
187,452
222,950
314,344
Miscellaneous ..............................
76,151
158,120
145,113
172,215
172,750
Total Revenues .....................
$4,541,107
$5,828,575
$6,112,955
$7,697,127
$7,880,658
Expenditures:
General Government ........................
$1,234,089
$1,293,124
$1,577,621
$1,563,469
$2,002,933
Public Safety ...............................
2,788,151
3,047,424
3,207,191
3,557,402
3,993,672
Highways and Streets ........................
730,628
782,552
823,049
797,643
723,880
Total Expenditures ..................
$4,752,868
$5,123,100
$5,607,861
$5,918,514
$6,720,485
Excess of Revenues Over Expenditures ..........
$ (211,761)
$ 705,475
$ 505,094
$1,778,613
$1,160,173
Net Transfers ..............................
396,467
347,619
(700,155)
(121,494)
(612,876)
Excess (Deficiency) of Revenues and Transfers Over
(Under) Expenditures and Transfers ..........
$ 184,706
$1,053,094
$ (195,061)
$1,657,119
$ 547,297
Residual Equity Transfer .....................
-0-
113,199
-0-
-0-
-0-
Beginning Fund Balance .....................
1,090,243
1,274,949
2,441,242
2,246,181
3,903,300
Ending Fund Balance ........................
$1,274,949
$2,441,242
$2,246,181
$3,903,300
$4,450,597
10
Pension Fund Obligations
Municipal employees, other than police and fire, are covered by the Illinois Municipal Retirement Fund (IMRF). As
of December 31, 1986, the latest date for which figures are available, the present value of future contributions to be made
by the City on behalf of its employees was $1,712,421. Future City contributions include a normal cost factor expected to
produce $485,708 and a prior cost factor expected to produce $1,226,713. The latter amount is the unfunded liability as of
December 31, 1986. Employer contribution rates provide for full funding of this cost including interest over a 40 -year
period.
The Police Pension Fund covers all sworn members of the City's Police Department and the Firemen's Pension Fund
covers all uniformed members of the City's Fire Department. The board of Trustees of each fund is required to maintain a
reserve to ensure the payment of all obligations incurred. The reserves shall be equal to the estimated total actuarial
requirements of the respective Funds. Accumulated plan benefits and plan net assets as of April 30, 1987 (the date of the
latest computation), are as follows:
Actuarial Present Value of Accumulated Plan Benefits:
Participants Currently Receiving Payments .................
Other Participants .....................................
Net Assets Available for Plan Benefits ........................ .
Actuarial Surplus (Unfunded Accrued Liability) ................
The vested and non - vested portions of the above are not available.
TAX EXEMPTION
Police Firemen's
Pension Fund Pension Fund
$3,535,297 $598,275
-0- -0-
$3,535,297 $598,275
3,334,169 748,877
$(201,127) $150,602
In the opinion of Bond Counsel, interest on the Bonds under present law is not included in "gross income" for Federal
income tax purposes, and thus is exempt from Federal income taxes based on gross income. This opinion is subject to com-
pliance by the Village with the covenant of the Village described below.
Certain requirements must be met in order for the interest on the Bonds to be not included in gross income for Feder-
al income tax purposes. These requirements relate to the use and investment of various proceeds and funds of the Village
in connection with the Bonds and the use of property financed by the Bonds. The Village has covenanted to comply with
all of these requirements. If the Village were to fail to comply with these requirements, interest on the Bonds could
become included in gross income for Federal income tax purposes retroactively to the date the Bonds are issued.
Bond Counsel is also of the opinion that interest on the Bonds is not an item of tax preference for purposes of compu-
tation of the alternative minimum tax for individuals or corporations. Interest on the Bonds is, however, included in "book
income" and "earnings and profits" of certain corporations and this may be taken into account in calculation of the alter-
native minimum tax for those corporations. Interest on the Bonds may also be taken into account in calculating Federal
income taxes based in whole or in part on "book income" or "earnings and profits" for certain corporations, such as the
branch profits tax and the environmental tax.
Ownership of the Bonds may also result in other federal income tax consequences to certain taxpayers, including
without limitation, certain financial institutions, certain insurance companies, certain S corporations, individual
recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or con-
tinued) indebtedness to purchase or carry tax - exempt obligations. Prospective purchasers of the Bonds should consult
their tax advisor as to applicability of any such consequences.
INVESTMENT RATING
The Village has supplied certain information and material to the rating service shown on the cover page as part of its
application for an investment rating on these Bonds. A rating, if assigned, is subject to revision, suspension or withdrawal
at any time by the rating agency. An explanation of the significance of investment ratings may be obtained from the rating
agency: Moody's Investors Service, 99 Church Street, New York, New York 10007, telephone (212) 553 -0300.
11
vo
Ai iORIZATION AND CERTIFICATION 0
The foregoing Official Statement has been prepared for the Village of Buffalo Grove, Illinois, and is authorized for
distribution to prospective purchasers of the Bonds. All statements, information, and statistics herein are believed to be
correct but are not guaranteed by the consultants or by the Village, and all expressions of opinion, whether or not so
stated, are intended only as such. Appropriate certification will be obtained from the Village related to non - litigation, the
use and investment of bond proceeds and other matters.
We have examined the attached Official Statement dated March 18, 1988, for the $2,000,000 General Obligation
Corporate Purpose Bonds, Series 1988, believe it to be true and correct and will provide to the purchaser of the Bonds at
the time of delivery a certificate confirming to the purchaser that to the best of our knowledge and belief information in
the Official Statement was at the time of acceptance of the bid for the Bonds, and including any addenda thereto, was at
the time of delivery 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 the light of the circumstances under which they were made, not misleading.
/S/ WILLIAM H. BRIMM
Director of Finance
Village of Buffalo Grove
March 18, 1988
12
/S/ WILLIAM R. BALLING
Village Manager
Village of Buffalo Grove
U
[THIS PAGE INTENTIONALLY LEFT BLANK]
x
[THIS PAGE INTENTIONALLY LEFT BLANK]
Village of Buffalo Grove
Village Hall
50 Raupp Boulevard
Buffalo Grove, Illinois 60089
Board Members:
OFFICIAL BID FORM 0
April 4, 1988
For the $2,000,000 General Obligation Corporate Purpose Bonds, Series 1988, of the Village of Buffalo Grove,
Illinois, as described in the annexed Official Notice of Sale, which is expressly made a part of this bid, we will pay you
$ plus accrued interest from April 1, 1988, to the date of delivery for Bonds bearing interest as follows
(each rate a multiple of or, 6 of 1 %).
MATURITIES — January 1
$50,000 .... 1990 % $ 75,000 ... 1992 % $ 250,000 .. 1995 %
50,000.... 1991 % 175,000... 1993 % 1,100,000 .. 1996
300,000... 1994 %
Said bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the ap-
proving legal opinion of Schiff Hardin & Waite, Chicago, Illinois. You are to pay for the legal opinion and for printing the
Bonds. Unless we notify you to the contrary within 24 hours, CUSIP numbers are to be applied for and printed on the
Bonds, and we agree to accept the Bonds at delivery with the CUSIP numbers as printed.
As evidence of our good faith, we enclose herewith a check to the order of the Treasurer of the Village of Buffalo
Grove, Illinois, in the sum of $40,000 under the terms provided in your Official Notice of Sale. Attached hereto is a list of
members of our account on whose behalf this bid is made.
Description of Check:
Amount: $40,000
Name of Bank
City State
Certified (Cashier's) Check No.
Dated
(For Use by District Only)
The above check was returned and received for the
above named Account Manager
Respectfully submitted,
N
By
City.
Account Manager
State
NOT A PART OF BID
Our calculation of net interest cost from above is:
Total Interest .................. $
Less Premium /Plus Discount ..... $
Net Interest Cost ...............
Net Interest Rate ...............
The foregoing bid was accepted and Bonds sold by resolution of the Village of Buffalo Grove, Illinois, April 4, 1988,
and receipt is hereby acknowledged of the good faith check which is being held in accordance with the terms of the
annexed Official Notice of Sale.
VILLAGE OF BUFFALO GROVE, ILLINOIS
Village Manager
TOTAL BOND YEARS: 13,275.000
AVERAGE LIFE: 6.638 Years
OFFICIAL NOTICE OF SALE 0
$2,000,000
VILLAGE OF BUFFALO GROVE
Lake and Cook Counties, Illinois
General Obligation Corporate Purpose Bonds, Series 1988
The Village of Buffalo Grove, Lake and Cook Counties, Illinois, will receive sealed bids for its $2,000,000 General Obligation Corporate Purpose
Bonds, Series 1988 (the "Bonds "), on an all or none basis, in Suite 4510, 55 East Monroe Street, Chicago, Illinois, until 1:00 P.M., C.D.T., April 4,
1988, at which time the bids will be publicly opened and read. Award will be made or all bids rejected on that date.
The Bonds are payable as to both principal and interest from ad valorem taxes levied against all taxable property of the Village, without limitation
as to rate or amount. The Bonds are being issued for the purpose of constructing street improvements. These Bonds are non - callable.
The Bonds will be in fully registered form and will be in the denomination of $5,000 and integral multiples thereof. Principal and semiannual
interest payable at the United Bank of Illinois, Rockford, Illinois, the Village's paying agent. Interest on each Bond shall be paid by check or draft of the
paying agent 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 on the books of registration of the Village (the "Bond Register "), kept for that purpose by Municipal Services Corporation, Countryside,
Illinois (the "Bond Registrar "). The principal of the Bonds shall be payable in lawful money of the United States of America upon presentation and
surrender thereof at the principal corporate trust office of the paying agent in Rockford, Illinois. Interest will be payable each January 1 and July 1, with
the first interest payment due January 1, 1989.
MATURITIES— January 1
$50,000 ................. 1990 $ 75,000 ................ 1992 $ 250,000............... 1995
50,000 ................. 1991 175,000 ................ 1993 1,100,000............... 1996
300,000 ................ 1994
The Bonds will be awarded to the single and best bidder whose bid will be determined upon the basis of the lowest cost at the rate or rates designated
in said bid from April 1, 1988, to the respective maturity dates after deducting the premium or adding the discount bid. All interest rates must be in the
multiples of one - eighth or one - twentieth of one percent (1/8 or 1/20 of 1 %), and not more than one rate for a single maturity shall be specified. No
individual rate shall exceed 8 %. The differential between the highest rate bid and the lowest rate bid shall not exceed two percent (2 %). All bids must be
for all the Bonds, must be for not less than $1,980,000 plus accrued interest from April 1, 1988, to the date of delivery, must be made upon the Official
Bid Form and delivered in a sealed envelope marked "Bid for Bonds" at the time set forth hereinabove.
Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust company for $40,000 payable to the Treasurer of the
Village of Buffalo Grove, Illinois, as evidence of good faith of the bidder. The check of the successful bidder will be retained uncashed by the Village
pending delivery of the Bonds and all others will be promptly returned. No interest will be allowed on any checks. Should the successful bidder fail to
take up and pay for the Bonds when tendered in accordance with this Notice and his bid, said check shall be cashed by the Village and the proceeds
retained as full and liquidated damages to the Village caused by failure of the bidder to carry out his offer of purchase. The check will otherwise be
applied on the purchase price or be returned to the purchaser upon delivery of the Bonds.
The Village reserves the right to reject any or all bids and to determine the best bid in its sole discretion and to waive any informality in any bid.
Bonds will be delivered to the successful purchaser against full payment in immediately available funds as soon as they can be printed and executed,
which is expected to occur within 30 days of the date of sale. Should delivery be delayed beyond 60 days from the date of sale for any reason beyond the
control of the Village except failure of performance by the purchaser, the Village may award or the purchaser may withdraw his check and thereafter his
interest in and liability for the Bonds will cease.
The Village will, at its expense, deliver the Bonds to the purchaser in Chicago, Illinois, and will pay for the printing of the Bonds and the bond
attorney's opinion. At the time of delivery, the Village will also furnish to the purchaser the following documents, each dated as of the date of delivery of
the Bonds: (1) the unqualified opinion of Schiff Hardin & Waite, Attorneys, Chicago, Illinois, that the Bonds are valid and binding obligations of the
Village and are payable from ad valorem taxes levied against all taxable property of the Village without limitation as to rate or amount; (2) the opinion
of said attorneys that the interest on the Bonds is exempt from Federal Income Taxes as and to the extent set forth in the Official Statement for the
Bonds; and (3) a certificate by the Village confirming that no litigation is pending affecting the legality of the Bonds or the right of the Village to issue
them. The Village will also provide to the purchaser a transcript of proceedings on which the legal opinion is based. The legal opinion will be printed on
the reverse side of each Bond.
The Village intends to designate the Bonds as "qualified tax - exempt obligations" pursuant to the small issuer exception provided by the Internal
Revenue Code of 1986.
The Village Board has authorized the preparation and distribution of an Official Statement containing pertinent information relative to the Village.
Copies of the Official Statement or additional information may be obtained from the undersigned at Village Hall, 50 Raupp Boulevard, Village of
Buffalo Grove, Illinois 60089, or from the Public Finance Consultants to the Village, Speer Financial, Inc., Suite 4510, 55 East Monroe Street, Chicago,
Illinois 60603. Telephone: Area 312- 346 -3700.
/S/ WILLIAM R. BALLING
Village Manager
Village of Buffalo Grove
March 18, 1988
0 OFFICIAL BID FORM 0
Village of Buffalo Grove April 4, 1988
Village Hall
50 Raupp Boulevard
Buffalo Grove, Illinois 60089
Board Members:
For the $2,000,000 General Obligation Corporate Purpose Bonds, Series 1988, of the Village of Buffalo Grove,
Illinois, as described in the annexed Official Notice of Sale, which is expressly made a part of this bid, we will pay you
$ plus accrued interest from April 1, 1988, to the date of delivery for Bonds bearing interest as follows
(each rate a multiple of 1/8 or 6 of 1 %).
MATURITIES— January 1
$50,000 .... 1990 % $ 75,000 ... 1992 % $ 250,000 .. 1995 %
50,000.... 1991 % 175,000... 1993 % 1,100,000 .. 1996 %
300,000... 1994 %
Said bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the ap-
proving legal opinion of Schiff Hardin & Waite, Chicago, Illinois. You are to pay for the legal opinion and for printing the
Bonds. Unless we notify you to the contrary within 24 hours, CUSIP numbers are to be applied for and printed on the
Bonds, and we agree to accept the Bonds at delivery with the CUSIP numbers as printed.
As evidence of our good faith, we enclose herewith a check to the order of the Treasurer of the Village of Buffalo
Grove, Illinois, in the sum of $40,000 under the terms provided in your Official Notice of Sale. Attached hereto is a list of
members of our account on whose behalf this bid is made.
Description of Check:
Amount: $40,000
Name of Bank
City State
Certified (Cashier's) Check No.
Dated
(For Use by District Only)
The above check was returned and received for the
above named Account Manager
By
Respectfully submitted,
Account Manager
L-In
Address
City State
NOT A PART OF BID
Our calculation of net interest cost from above is:
Total Interest .................. $
Less Premium /Plus Discount ..... $
Net Interest Cost ............... $
Net Interest Rate ............... %
The foregoing bid was accepted and Bonds sold by resolution of the Village of Buffalo Grove, Illinois, April 4, 1988,
and receipt is hereby acknowledged of the good faith check which is being held in accordance with the terms of the
annexed Official Notice of Sale.
VILLAGE OF BUFFALO GROVE, ILLINOIS
Village Manager
TOTAL BOND YEARS: 13,275.000
AVERAGE LIFE: 6.638 Years
EXHIBIT "C"
_ OFFICIAL NOTICE OF SALE
$2,000,000
VILLAGE OF BUFFALO GROVE
Lake and Cook Counties, Illinois
General Obligation Corporate Purpose Bonds, Series 1988
The Village of Buffalo Grove, Lake and Cook Counties, Illinois, will receive sealed bids for its $2,000,000 General Obligation Corporate Purpose
Bonds, Series 1988 (the "Bonds "), on an all or none basis, in Suite 4510, 55 East Monroe Street, Chicago, Illinois, until 1:00 P.M., C.D.T., April 4,
1988, at which time the bids will be publicly opened and read. Award will be made or all bids rejected on that date.
The Bonds are payable as to both principal and interest from ad valorem taxes levied against all taxable property of the Village, without limitation
as to rate or amount. The Bonds are being issued for the purpose of constructing street improvements. These Bonds are non - callable.
The Bonds will be in fully registered form and will be in the denomination of $5,000 and integral multiples thereof. Principal and semiannual
interest payable at the United Bank of Illinois, Rockford, Illinois, the Village's paying agent. Interest on each Bond shall be paid by check or draft of the
paying agent 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 on the books of registration of the Village (the "Bond Register "), kept for that purpose by Municipal Services Corporation, Countryside,
Illinois (the "Bond Registrar "). The principal of the Bonds shall be payable in lawful money of the United States of America upon presentation and
surrender thereof at the principal corporate trust office of the paying agent in Rockford, Illinois. Interest will be payable each January 1 and July 1, with
the first interest payment due January 1, 1989.
MATURITIES — January 1
$50,000 ................. 1990 $ 75,000 ................ 1992 $ 250,000............... 1995
50,000 ................. 1991 175,000 ................ 1993 1,100,000............... 1996
300,000 ................ 1994
The Bonds will be awarded to the single and best bidder whose bid will be determined upon the basis of the lowest cost at the rate or rates designated
in said bid from April 1, 1988, to the respective maturity dates after deducting the premium or adding the discount bid. All interest rates must be in the
multiples of one - eighth or one - twentieth of one percent (1/8 or 1/20 of 1 %), and not more than one rate for a single maturity shall be specified. No
individual rate shall exceed 8 %. The differential between the highest rate bid and the lowest rate bid shall not exceed two percent (2 %). All bids must be
for all the Bonds, must be for not less than $1,980,000 plus accrued interest from April 1, 1988, to the date of delivery, must be made upon the Official
Bid Form and delivered in a sealed envelope marked "Bid for Bonds" at the time set forth hereinabove.
Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust company for $40,000 payable to the Treasurer of the
Village of Buffalo Grove, Illinois, as evidence of good faith of the bidder. The check of the successful bidder will be retained uncashed by the Village
pending delivery of the Bonds and all others will be promptly returned. No interest will be allowed on any checks. Should the successful bidder fail to
take up and pay for the Bonds when tendered in accordance with this Notice and his bid, said check shall be cashed by the Village and the proceeds
retained as full and liquidated damages to the Village caused by failure of the bidder to carry out his offer of purchase. The check will otherwise be
applied on the purchase price or be returned to the purchaser upon delivery of the Bonds.
The Village reserves the right to reject any or all bids and to determine the best bid in its sole discretion and to waive any informality in any bid.
Bonds will be delivered to the successful purchaser against full payment in immediately available funds as soon as they can be printed and executed,
which is expected to occur within 30 days of the date of sale. Should delivery be delayed beyond 60 days from the date of sale for any reason beyond the
control of the Village except failure of performance by the purchaser, the Village may award or the purchaser may withdraw his check and thereafter his
interest in and liability for the Bonds will cease.
The Village will, at its expense, deliver the Bonds to the purchaser in Chicago, Illinois, and will pay for the printing of the Bonds and the bond
attorney's opinion. At the time of delivery, the Village will also furnish to the purchaser the following documents, each dated as of the date of delivery of
the Bonds: (1) the unqualified opinion of Schiff Hardin & Waite, Attorneys, Chicago, Illinois, that the Bonds are valid and binding obligations of the
Village and are payable from ad valorem taxes levied against all taxable property of the Village without limitation as to rate or amount; (2) the opinion
of said attorneys that the interest on the Bonds is exempt from Federal Income Taxes as and to the extent set forth in the Official Statement for the
Bonds; and (3) a certificate by the Village confirming that no litigation is pending affecting the legality of the Bonds or the right of the Village to issue.
them. The Village will also provide to the purchaser a transcript of proceedings on which the legal opinion is based. The legal opinion will be printed on
the reverse side of each Bond.
The Village intends to designate the Bonds as "qualified tax - exempt obligations" pursuant to the small issuer exception provided by the Internal
Revenue Code of 1986.
The Village Board has authorized the preparation and distribution of an Official Statement containing pertinent information relative to the Village.
Copies of the Official Statement or additional information may be obtained from the undersigned at Village Hall, 50 Raupp Boulevard, Village of
Buffalo Grove, Illinois 60089, or from the Public Finance Consultants to the Village, Speer Financial, Inc., Suite 4510, 55 East Monroe Street, Chicago,
Illinois 60603. Telephone: Area 312 - 346 -3700.
/S/ WILLIAM R. BALLING
Village Manager
Village of Buffalo Grove
March 18, 1988
k
i
E
F
4 =
r
k
VILLAGE OF BUFFALO GROVE
ORDINANCE NO. ft-V4
= 1
" ADOPTED BY THE PRESIDENT
C AND BOARD OF TRUSTEES OF THE VILLAGE
OF BUFFALO GROVE
THIS 401 DAY OF 19 �( .
i
k _
f
F
f -
- Published in pamphlet form by authority of the
E -- President and Board of Trustees of the Village
of Buffalo Grove, Cook & Lake Counties, Illinois,
this 501 day of 19
t
#Lut M -
Village Clerk
E BY
Tj
Deputy C.ler
1
I
- f
_ L
ORDINANCE N0. 88 -44
ORDINANCE PROVIDING FOR THE ISSUANCE OF $2,000,000 OF
GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1988,
OF THE VILLAGE OF BUFFALO GROVE, LAKE AND COOK COUNTIES,
ILLINOIS, AND PROVIDING FOR THE LEVY OF A DIRECT ANNUAL
TAX FOR THE PAYMENT OF PRINCIPAL OF AND INTEREST ON
THOSE BONDS
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF BUFFALO GROVE, LAKE AND COOK COUNTIES,
ILLINOIS, AS FOLLOWS:
Section 1. It is found and declared by the Presi-
dent and Board of Trustees of the Village of Buffalo Grove,
Lake and Cook Counties, Illinois (the "Village "), as follows:
(a) It is necessary and in the best interests of
the Village to undertake a program of improvements
to and extensions of the public works and facili-
ties in the Village for the betterment of the
Village. The program includes, without limitation,
the improvement of the storm water and drainage
system in a portion of the Village and the construc-
tion of an extension of Buffalo Grove Road. The
Village presently estimates the total cost of such
program, together with costs of borrowing money
for that purpose, to be approximately $2,000,000.
(b) The Village does not have sufficient funds on
hand or available from other sources with which to
pay the costs of its program of improvements and
extensions or to pay the Village's costs in connec-
tion with the borrowing of money as described in
this Ordinance.
(c) It is in the best interests of the Village to
issue $2,000,000 principal amount of its general
obligation corporate purpose bonds, as provided in
this Ordinance, to pay the costs described above
or to pay the costs of other lawful expenditures
to be incurred by the Village.
(d) The borrowing of the sum of $2,000,000 and
the issuance of general obligation corporate pur-
pose bonds of the Village in that amount for the
purpose of paying these costs pertains to the
government and affairs of the Village, is for a
proper public purpose of the Village and is in the
public interest.
(e) The Village has caused an Official Statement,
together with a Notice of Sale and Official Bid
Form, to be prepared and distributed calling for
bids to purchase the bonds to be issued as provided
in this Ordinance.
(f) The Village has received 8 sealed bids for
the purchase of the bonds to be issued as provided
-2-
in this Ordinance. The bid Of First National Bank of Chicago
is the best bid. It is in the best interests of
the Village and the public for the Village to ac-
cept that bid and to issue and deliver such bonds
to the purchasers named in that bid in accordance
with the term of the bid and this Ordinance.
Section 2. The sum of $2,000,000 shall be borrowed
by the Village for its corporate purposes, including (a)
paying costs of the Village for the program of improvements
and extensions described in Section 1(a) above or any other
lawful corporate purpose of.the Village, and (b) paying costs
of the Village in connection withrthe issuance of the bonds
authorized by this Ordinance. In evidence of such borrowing,
negotiable bonds of the Village in the aggregate principal
amount of $2,000,000 (the "Bonds ") shall be issued as provided
in this Ordinance. The Bonds shall be issued only in fully
registered form without coupons in the denominations of $5,000
and integral multiples of that sum. The Bonds shall be
designated "General Obligation Corporate Purpose Bonds, Series
1988" and shall be numbered consecutively from R -1 upward
but need not be authenticated or delivered in consecutive
order. Bonds authenticated and delivered prior to January 1,
1989 shall be dated as of April 1, 1988. Bonds authenticated
and delivered on or after January 1, 1989 shall be dated as
-3-
of the January 1 or July 1 next preceding the date of their
authentication and delivery to which interest has been paid,
except Bonds authenticated and delivered on a January 1 or
July 1 to which interest has been paid, which Bonds shall be
dated as of that January 1 or July 1. The Bonds shall mature
on January 1 in each of the years and amounts and shall bear
interest from their date until paid at rates per year as
follows:
Maturing
(January 1) Amount Maturing Interest Rate
1990
$ 50,000
5.30
1991
50,000
5.60
1992
75,000
5.80
1993
175, 000
6.00
1994
300000
6.20
1995
250,000
6.40
1996
1,100,000
6.50
Interest on the Bonds shall be payable on January 1 and
July 1 in each year, with the first interest payment date
being January 1, 1989. Interest shall be computed on the
basis of a 360 -day year of twelve 30 -day months.
maturity.
The Bonds are not redeemable prior to their
Each Bond shall be executed by the manual or
facsimile signature of the Village President and the manual
or facsimile signature of the Village Clerk and shall have
the corporate seal of the Village affixed to it (or a
facsimile of that seal printed on it). The Village President
-4-
and the Village 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 Village whose signature or.a facsimile of whose signa-
ture 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 substan-
tially in the form set forth in the bond form in Exhibit A
of this Ordinance shall have been duly executed by the
Authenticating Agent appointed below. That certificate upon
any Bond shall be conclusive evidence that the Bond has been
authenticated and delivered under this Ordinance.
The Bonds shall constitute the general obligations
of the Village. The full faith and credit of the Village
are pledged to the payment of the principal of and interest
on the Bonds.
-5-
Municipal Services Corporation, Countryside,
Illinois, is appointed Authenticating Agent and Bond
Registrar for the Bonds. United Bank of Illinois, Rockford,
Illinois, is appointed Paying Agent.
The Bonds shall be payable in lawful money of the
United States at the principal corporate trust office of the
Paying Agent. The principal of each Bond shall be payable
at maturity upon presentment of the Bond at the principal
corporate trust office of the Paying Agent. Interest on
each Bond shall be payable on each interest payment date by
check or draft of the Paying Agent mailed to the person in
whose name that Bond is registered on the books of the Bond
Registrar at the close of business on the 15th day of the
month preceding such interest payment date.
The Bonds shall be negotiable, subject to the fol-
lowing provisions for registration and registration of transfer.
The Village shall maintain books for the registration of the
Bonds at the principal corporate trust office of the Bond
Registrar. Each Bond shall be registered on those books.
Transfer of each Bond shall be re *gistered only on those books
upon surrender of that 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 satis-
factory to the Bond Registrar duly executed by the registered
cm
owner or his or her duly authorized attorney. Upon surrender
of a Bond for registration of transfer, the Village shall
execute and the Authenticating Agent shall authenticate and
deliver, in the name of the transferee, one or more new Bonds
of the same aggregate principal amount and of the same
maturity as the Bond surrendered.
Bonds may be exchanged, at the option of the
registered owner, for an equal aggregate principal amount of
Bonds of the same maturity which have any authorized denomina-
tions, upon surrender of those Bonds at the principal
corporate trust 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 Bonds is exercised, the Village shall execute,
the Authenticating Agent shall authenticate, and the Bond
Registrar shall deliver, Bonds in accordance with the pro-
visions of this Ordinance. All Bonds surrendered in any
exchange or transfer shall be cancelled immediately by the
Bond Registrar.
For every exchange or registration of transfer of
Bonds, the Village or the Bond Registrar may make a charge
sufficient to reimburse it for any tax, fee or other govern-
-7-
mental charge, other than one imposed by the Village, required
to be paid with respect to that exchange or 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 Village or the Bond Registrar as a condi-
tion precedent to exchange or registration of transfer of
any Bond.
The Bond Registrar shall not be required to exchange
or register the transfer of any Bond during the period from
the 15th day of the month next preceding any interest payment
date to such interest payment date.
The Village, the Paying Agent and the Bond Registrar
may treat the registered owner of any Bond as its absolute
owner, whether or not that Bond is overdue, for the purpose
of receiving payment of the principal of or interest on that
Bond and for all other purposes, and neither the Village,
the Bond Registrar nor the Paying Agent shall be affected by
any notice to the contrary. Payment of the principal of and
interest on each Bond shall be made only to its registered
owner, and all such payments shall be valid and effective to
satisfy the obligation of the Village on that Bond to the
extent of the amount paid.
The Bonds shall be in substantially the form set
forth in Exhibit A to this Ordinance.
Section 3. The bid of First National Bank of Chicago
(the "Purchaser ") to purchase the Bonds at a price of
$ 1,985,000,, plus accrued interest to the date of delivery,
is accepted, a copy of which is attached as Exhibit B. That
bid is approved in all respects. The Village President is
authorized and directed to execute an acceptance of that bid
in the name of and on behalf of the Village. The prior
distribution of the Official Statement of the Village dated
March 18, 1988, together with a Notice of Sale and Official
Bid Form, in the form of Exhibit C to this Ordinance, and
all other actions of the Village relating to the offering,
issuance and sale of the Bonds are ratified, confirmed and
approved. The Village Manager and the Director of Finance
of the Village are authorized and directed to execute that
Official Statement in the name of and on behalf of the
Village and to deliver the Official Statement to the
Purchaser.
Section 4. The -Bonds shall be executed as
provided in this Ordinance and delivered to the Village
Treasurer or Director of Finance who shall deliver them to
the Authenticating Agent. The Authenticating Agent is di-
rected to authenticate the Bonds and deliver the Bonds to
WZ
the Purchaser upon receipt of the purchase price for the
Bonds. The Village President and the Village Clerk are au-
thorized and directed to execute and deliver the Bonds and
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.
Section 5. There is levied a direct annual tax
upon all taxable property within the Village sufficient
(other than as provided below) to pay and discharge the
principal of the bonds at maturity and to pay interest on
the Bonds for each year, including specifically the following
amounts for the following years:
An Amount Sufficient
Year of Levy To Produce the Sum of:
1988
271,200.00
1989
173,750.00
1990
195,950.00
1991
291,600.00
1992
406,100.00
1993
337,500.00
1994
1,171,500.00
That tax shall be in addition to all other taxes levied by
the Village. If at any time sufficient funds are not on
hand from amounts derived from this tax levy, and the First
Deposit deposited in the Bond and Interest Fund as provided
in this Section, to make a payment of interest or principal
-10-
on the Bonds as it becomes due, that payment shall be made
from the general funds of the Village. Those general funds
shall be reimbursed from the amounts derived from the taxes
levied by this Ordinance when those amounts shall be on hand
(and not needed for paying other payments of interest or
principal then coming due on the Bonds).
Prior to or upon the issuance of the Bonds, an
amount equal to $ 158,000.00 shall be deposited in the Bond
and Interest Fund established in-Section 6 of this Ordinance
(the "First Deposit ") from the Village's general corporate
fund. Interest on the Bonds through July 1, 1989 will be
paid from the First Deposit in lieu of borrowing funds to
cover these interest payments prior to receipt of the taxes
levied to pay them.
Section 6. The Village Clerk is directed to file
a certified copy of this Ordinance with the County Clerks of
Cook and Lake Counties. It shall be the duty of the County
Clerks annually for each of the years 1988 through 1995 to
ascertain the respective rates necessary to produce the tax
levied in this Ordinance and to extend that tax for collection
on the tax books against all of the taxable property within
the Village in connection with other taxes levied in each of
such years for general Village purposes, and such taxes shall
be computed, extended and collected in the same manner as is
-11-
now or may subsequently be provided for the computation,
extension and collection of taxes for general purposes of
the Village.
When collected, the taxes levied in this Ordinance
shall be placed in a separate and special fund established
exclusively for paying principal of and interest on the Bonds,
designated as "The Corporate Purpose Bonds, Series 1988,
Bond and Interest Fund" (the "Bond and Interest Fund "). The
deposits of such moneys in the Bond and Interst Fund and
investments of the Bond and Interest Fund may be commingled
for deposit and investment purposes with other funds of the
Village established solely for paying principal of and
interest on other general obligation bonds of the Village.
Moneys in the Bond and Interest Fund shall never be
commingled with or loaned to any other funds of the Village
which were not established for such a purpose or which are
used for any other purpose, as long as any Bonds are out-
standing and unpaid. All interest and other investment
earnings on the Bond and Interest Fund shall become, when
received, a part of the Bond and Interest Fund, but this
paragraph shall not prevent the Village from transferring
interest and other investment earnings on the Bond and
Interest Fund to general operating funds of the Village, as
long as doing so shall not result in the amounts in the Bond
-12-
r
and Interest Fund being insufficient to pay principal of and
interest on the Bonds as they come due.
Amounts deposited in the Bond and Interest Fund
are appropriated for and irrevocably pledged to, and shall
be used only for the purpose of, paying the principal of and:...
interest on the Bonds, or reimbursing general funds of the
Village expended for those purposes as provided in Section 5
of this Ordinance, or for making transfers from the Bond and
Interest Fund of interest and other investment earnings as
allowed by the preceding paragraph of this Section or for
making rebates of interest or investment earnings to the
United States as may be required by Section 8 of this
Ordinance.
Section 7. The proceeds of the Bonds shall be
deposited in the Series 1988 Bond Proceeds Account (the
"Bond Proceeds Account ") which is created and established by
this Ordinance. Such amounts shall be used for the purposes
described in Section 2 of this Ordinance. All amounts
received upon the sale of the Bonds, together with all
interest and other investment earnings on those amounts, are
appropriated and set aside for the purposes for which the
Bonds are being issued as set forth in this Ordinance, or
for making rebates of interest or investment earnings to the
United States as may be required by Section 8 of this
Ordinance.
-13-
Section 8. The Village 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 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 in the
Bond Proceeds Account, the Bond and Interest Fund or any
other funds of the Village which would result in making
interest on the Bonds includable in gross income for federal
income tax purposes by reason of causing the 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 Bonds. The
-14-
President, Clerk, Treasurer and Director of Finance of the
Village are authorized and directed to take such action as
is 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 per-
taining to the use of the proceeds of the Bonds and moneys
in the Bond and Interest Fund and the Bond Proceeds Account
in order to establish that the Bonds shall not constitute
arbitrage bonds as so defined, and to cause amounts to be
rebated to the United States as required by Section 148 of
the Code. All amounts required so to be rebated are ir-
revocably appropriated for that purpose. A special fund of
the Village entitled The Series 1988 Bond Rebate Fund is
established for deposit of investment earning subject to
rebate.
The President and Treasurer are authorized and
directed to cause the Village to designate the Bonds as
"qualified obligations" within the meaning of Section 265(b)
of the Code, the Village not reasonably anticipating issuing
more than $10,000,000 of such obligations.
The Village 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
-15-
levy, extension, collection and application of the
taxes levied by this Ordinance;
(b) it will not take any action which would
adversely affect the levy, extension, collection
and application of the taxes levied by this
Ordinance, except to abate those taxes to the
extent that money is on hand and set aside to pay
principal of and interest on the Bonds; and
(c) it will comply with all present and future
laws concerning the levy, extension and collection
of the taxes levied by this Ordinance; in each
case so that the Village shall be able to pay the
principal of and interest on the Bonds as they
come due.
Section 9. All ordinances, resolutions and orders
or parts of ordinances, resolutions and orders in conflict
with this Ordinance are repealed to the extent of such con-
flict. The Village Clerk shall cause this ordinance to be
published in pamphlet form. This'Ordinance shall be in full
force and effect after passage and publication as provided
by law. This Ordinance shall not be codified.
-16-
PASSED by the President and Board of Trustees of
the Village this April 4, 1988.
Voting Aye ( list names) : 6 - Marienthal, Glover, Reid, Shields,
Voting Nay (list names):
Abstaining (list names):
Absent (list names):
ATTEST:
Kowalski, Shifrin.
0 - None`
0 - None
',-Village Clerk
SIGNED by the Village President this April 4, 1988.
1,
Village President
VIUAge Clerk
Published in pamphlet form April 5
-17-
, 1988.
EXHIBIT A
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTIES OF LAKE AND COOK
VILLAGE OF BUFFALO GROVE
GENERAL OBLIGATION CORPORATE PURPOSE BOND,
SERIES 1988
Bond No. R- Principal Amount: $
Interest Rate: %
Date of Bond: Date of Maturity:
Registered Owner:
The Village of Buffalo Grove, Lake and Cook Counties,
Illinois (the "Village "), for value received, promises to
pay to the Registered Owner specified above or registered
assigns, upon presentation and surrender of this bond at the
principal corporate trust office of Municipal'Services Corpora-
tion, Countryside, Illinois (the "Bond Registrar ") 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
payment of this bond, payable semiannually on January 1 and
July 1, with the first interest payment date being January 1,
1989. Interest shall be computed on the basis of a 360 -day
year of twelve 30 -day months. Interest on this bond shall
be payable on each interest payment date by check or draft
A -1
of the Paying Agent mailed to the person in whose name this
bond is registered at the close of business on the 15th day
of the month preceding that interest payment date. The
principal of and interest on this bond are payable in lawful.
money of the United States 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 $2,000,000, the proceeds
of which are to be used for corporate purposes of the Village
as described in the Ordinance of the Village authorizing the
issuance of this bond and the issue of bonds of which it is
a part (the "Ordinance "). This bond was issued in accordance
with the Illinois Constitution and pursuant to the Ordinance.
This bond and the issue of which it is a part (together the
"Bonds ") have been issued by the Village upon full payment
therefor as provided in the Ordinance. The full faith and
credit of the Village and the tax levy referred to below are
irrevocably pledged to the punctual payment of the principal
of and the interest on this bond. This bond is a general
obligation of the Village.
Bonds are not redeemable prior to their maturity.
A -2
y
This bond is negotiable, subject to the following
provisions for registration and registration of transfer.
The Village maintains books for the registration and registra-
tion of transfer of Bonds at the principal corporate trust
office of Municipal Services Corporation, as Bond Registrar.
This bond is registered on those books 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 registra-
tion 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 Ordinance.
This bond may be exchanged, at the option of the
registered owner, for an equal aggregate principal amount of
bonds of the same maturity which have any authorized denomina-
tion, upon surrender of this bond at the principal corporate
trust 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 Village or the Bond Registrar may make a charge
A -3
4
sufficient to reimburse it for any tax, fee or other govern-
mental charge, other than one imposed by the Village, required
to be paid with respect to that exchange or 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 Village or the Bond Registrar as a condi-
tion precedent to exchange or registration of transfer of
this bond.
The Bond Registrar will not be required to exchange
or register the transfer of any Bond during the period from
the 15th day of the month next preceding any interest payment
date to such interest payment date.
The Village, the Paying Agent and'the Bond Registrar
may 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 Village,
the Bond Registrar nor the Paying Agent 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 Village on this bond to the
extent of the amount paid.
A -4
V
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 and collection of a direct annual
tax, in addition to all other 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
Bonds by the Village will not cause the Village to exceed or
violate any applicable limitation or condition respecting
the issuance of bonds imposed by the law of Illinois or by
any ordinance or resolution of the Village. The Bonds are
issued for purposes for which the Village is authorized by
law to issue bonds including but not limited to the payment
of costs of the Village for the improvement and extension of
the Village's public works and public facilities and the
payment of costs of the Village in connection with the issuance
of the 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 Authenticating Agent.
IN WITNESS WHEREOF, the Village of Buffalo Grove,
Lake and Cook Counties, Illinois, by its President and Board
of Trustees, has caused this bond to be executed by the manual
or facsimile signature of its Village President and the manual
A -5
lw
or facsimile signature of its Village 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 the Bond specified above.
VILLAGE OF BUFFALO GROVE, ILLINOIS
By
Village President
(SEAL)
ATTEST:
Village Clerk
This bond is one of the bonds described in the
Ordinance authorizing the issuance of $2,000,000 Village of
Buffalo Grove, Lake and Cook Counties, Illinois General
Obligation Corporate Purpose Bonds, Series 1988.
MUNICIPAL SERVICES CORPORATION
By:
Authorized Officer
For Value Received, the undersigned sells, assigns and
transfers to this
bond and all rights and title under this bond, and
A -6
ti
irrevocably constitutes and appoints
attorney to transfer this bond on the books kept for registra-
tion of this bond.
Dated:
A-7