1982-02-22 - Resolution 1982-08 - AUTHORIZING SOLICITATION OF BIDS FOR THE PURCHASE OF $8,500,000.00OF CORPORATE PURPOSE BONDS, SERIES 1982 OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS �.J \./
RESOLUTION NO. 82-8
RESOLUTION AUTHORIZING SOLICITATION OF BIDS
FOR THE PURCHASE OF $8,500,000 OF CORPORATE
PURPOSE BONDS, SERIES 1982, OF THE VILLAGE
OF BUFFALO GROVE, COOK AND LAKE COUNTIES,
ILLINOIS
BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE
COUNTIES, ILLINOIS, AS FOLLOWS:
Section 1. It is found and declared by the Board
of Trustees of the Village of Buffalo Grove, Cook and Lake
Counties, Illinois (the "Village") , as follows:
(a) The Board of Trustees of the Village has
previously found it adviseable and in the best interests
of the Village to acquire and operate a common source
of supply of Lake Michigan water through the Northwest
Water Commission (the "Commission") . The Village and
three other municipalities are the members of the
Commission.
(b) The Village has previously determined and
agreed, in the exercise of its home rule powers and its
power and authority under the intergovernmental co-
operation provisions of Article VII , Section 10 of the
1970 Illinois Constitution and the Illinois Inter-
governmental Cooperation Act (Ill. Rev. Stat. ch. 127 ,
§ 741 et seq. ) , and in consideration of the Village's
participation in the activities of the Commission, to
obligate itself for a portion of the Commission' s costs
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of constructing and acquiring a system to provide Lake
Michigan water to the members of the Commission, in-
cluding the Village (the "Commission System") . It is
necessary and in the best interests of the Village for
it to obtain through the Commission a source of Lake
Michigan water for providing water service to the
customers of the Village' s own water system.
(c) The Village is presently obligated to provide
the Commission in 1982 with the sum of $4,546,075 for
paying costs of the Commission of constructing and
acquiring the Commission System.
(d) It is necessary and in the best interests of
the Village to capitalize the interest to be due on
bonds issued to fund the Village's required contribu-
tion to the Commission for the period through January 1,
1984 in order to avoid an increase in tax rates during
the construction of the Commission System. The sum so
needed to be capitalized is $1,207,500.
(e) In order to accommodate Lake Michigan water,
various improvements and extensions to the Village's
own water system are required. These include the
construction and acquisition of two one million gallon
subsurface reinforced concrete reservoirs, appurten-
ances in connection therewith and various water main
improvements. Various engineering, land acquisition
and construction costs of $2,746,425 will need to be
undertaken promptly for these water system improvements.
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(f) The Village does not have sufficient funds on
hand or available from other sources with which to make
its required contribution to the Commission as described
in paragraph (c) above, to pay the costs of capitalized
interest on the Village' s required contribution to the
Commission through January 1, 1984 as described in
paragraph (d) above, to pay costs of engineering, land
acquisition and construction for the water system
improvements described in paragraph (e) above, and to
pay the Village's own costs in connection with those
purposes and in connection with the borrowing of money
as authorized by this Ordinance. The borrowing of the
sum of $8, 500, 000 and the issuance of general obligation
corporate purpose bonds of the Village in that amount
for the purpose of paying these various costs is necessary
for the welfare of the government and affairs of the
Village, is for a proper public purpose of the Village
and is in the public interest.
(g) It is necessary now, in order to effect the
sale of such general obligation bonds of the Village,
to provide for the solicitation of bids for the pur-
chase of such bonds and to provide for the preparation
and distribution of a Notice of Sale and Official
Statement relating thereto.
Section 2. Sealed bids for the purchase of
$8, 500, 000 aggregate principal amount of Corporate Purpose
Bonds, Series 1982, of the Village (the "Bonds") , shall be
received by the Village until12:00 Noon, Chicago Time, on
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March 15, 1982, and all bids so received shall at that time
' be publicly opened and read, all at the time and place and
in the manner specified in the Notice of Sale pertaining to
the Bonds. The award of the sale of the Bonds will be made
at the special meeting of the President and Board of Trustees
of the Village to be held on March 15, 1982.
Section 3. A draft Notice of Sale pertaining to
the Bonds has been prepared by R. V. Norene & Associates,
Inc. , the financial advisor for the Village, which draft is
attached to this resolution as Exhibit A. The maturity
schedule for the Bonds contained in that draft is approved.
R. V. Norene & Associates, Inc. , is authorized and directed
to publish, mail and/or distribute to potential bidders for
the Bonds the Notice of Sale in substantially the form
attached as Exhibit A (or a summary thereof) and also to
prepare and distribute an Official Statement pertaining to
the Bonds.
Section 4. This resolution is effective upon its
adoption and approval.
PASSED by the President and Board of Trustees of
the Village of Buffalo Grove this 22nd. day of February, 1982.
Vil ge C erk
APPROVED by the President of the Village of
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Buffalo Grove this 22nd day of February 1982 .
AYES : 5 - Marienthal , Stone, O'Reilly, Hartstein, Gerschefske
NAYES : 0 - None
ABSENT : 1 - Schwartz
President of the
Village of Buffalo Gr e
ATTEST:_ ,
11 efl _
.f.
OFFICIAL NOTICE OF SALE
$8,500,000
VILLAGE OF BUFFALO GROVE
Cook and Lake Counties, Illinois
CORPORATE PURPOSE BONDS, SERIES 1982
The Village of Buffalo Grove, Illinois will receive sealed bids for its . $8,500,000
Corporate Purpose Bonds, Series 1982 at The Northern Trust Company (Bond Syndicate Room - 12th
Floor), 50 South LaSalle Street, Chicago, Illinois untill2:00Noon, C.S.T. , Monday, March 15,
1982 at which time the bids will be publicly opened and read. Award will be made or all bids
rejected, at the meeting of the President and Board of Trustees on the date of sale.
The bonds are callable generalsobligations of the Village of Buffalo Grove, Illinois,
payable both principal and interest from unlimited ad valorem taxes to be levied on all
taxable property within said Village, Bonds will be coupon bonds registrable as to principal
only in the denomination of $5,000. Principal and semiannual interest (January 1 and July 1)
will be payable at such bank or trust company as may be mutually agreed upon between the
purchaser and the Village. Bonds are dated April 1, 1982. First coupon due July 1, 1983.
MATURITIES - January 1
$350,000 1985 $575,000_ 1989 $1,000,000 1994
400,000 1986 650,000 1990 625,000 1995
450,000 1987 725,000 1991 .725,000 1996
525,000 1988 800,000 1992 S00,000 1997
875,000 1993
Bonds due January 1, 1985-1993 are not callable. Bonds due January 1, 1994-1997 are
callable in whole or in part and if in part, in the inverse order of maturity and within a
maturity by lot on interest payment dates beginning January 1, 1993 and therafter at par plus
a premium of 2%, such premium reducing by 1/2 of 1% at each subsequent interest payment date.
Notice of redemption shall be given by publication at least once not less than 30 days prior
to the date of redemption in The Bond Buyer, or in the event it ceases to be published, then
in a financial journal published either in Chicago or New York.
These bonds will be awarded to the best bidder determined upon the basis of the lowest
total interest at the rate or rates designated in said bid from April 1, 1982 to the respective
maturity dates after deducting therefrom the premium bid. Each bidder shall name a rate or
rates of interest which the bonds are to bear and each must be a multiple of one-quarter or
one-tenth of one percent (1/4 or 1/10 of 1%). Not more than one interest rate shall be
specified for a single maturity. Each interest payment will be evidenced by a single compon
on each bond. The differential between the highest rate bid and the lowest rate bid shall not
exceed 2%. Bids must be for all or none of the bonds, must be for not less than par plus
accrued interest to date of dellivery and must be made upon the Ofiicial Bid Form and
delivered in a sealed envelope marked "Bid for Bonds" at the time set out above. The Village
reserves the right to reject any or all bids, to determine the best bid in its sole discretion
and to waive any informality in any bid.
Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust
company for$170,000 payable to the Village 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. All other checks will be returned
promptly. 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 his bid and this Notice, his
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. Otherwise
his check will be returned uncashed at delivery or applied on the purchase price.
The 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
be within thirty days of the date of sale. Should delivery of these bonds be delayed sixty
days from the date of award for any reason except failure of performance by the successful
bidder, then the bidder may cancel his agreement to purchase the bonds and receive back his
check and thereafter his interest in and liability for the bonds will cease.
The Village will deliver the bonds without expense 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 furnish to the purchaser the written opinion of Isham, Lincoln &
Beale, Attorneys, Chicago, Illinois, evidencing the legality of the bonds, which will be
printed on the reverse of each bond. The Village will furnish the transcript of proceedings
on which said opinion is based and a certificate of no-litigation then pending affecting the
legality of the bonds or the right of the Village to issue them. Interest on the bonds is
exempt, in the opinion of counsel, from Federal Income Taxes under existing law.
The Village has authorized the preparation of an Official Statement containing pertinent
infromation relative to the Village and its finances. For copies of that Statememt or for any
additional information, any prospective purchaser is referred to the undersigned at the
Village Hall, 50 Raupp Boulevard, Buffalo Grove, Illinois 60090 or the Municipal Finance
Consultants to the Village, R. V. Norene & Associates, Inc. , 2215 Sanders Road, Northbrook,
Illinois 60062. Telephone: Area 312-498-9844.
/s/ William R. Balling
Village Manager
February 24, 1982
TABLE B - 1
VILLAGE OF BUFFALO GROVE, ILLINOIS •
$8,500,000 Corporate Purpose Bonds, Series 1982
(Bonds Dated March 1, 1982)
$5,750,000 NWWC Portion(Note) $2,750,000 Internal Portion
Tax Levy Interest Principal Interest Principal Combined Combined
Levy Collection @ 12% Amount Due Total @ 11 1/2% Amount Due Total Total Principal
1982 1983 $1,207,500* $ - 0 - 1 1 84 $ 1,207,500 $ 553,437.50* 7 - 0 - , , 1/1/84 $ 553,437.50 $ 1,760,937.50 $ _ 0 _
1983 1984 690,000 200,000 1/1/85 890,000 316,250.00 150,000 ' 1/1/85 466,250.00 1,356,250.00 350,(
1984 1985 666,000 225,000 • 1/1/86 891,000 299,000.00 175,000 1/1/86 474,000.00 1,365,000.00 400,0 0 (
1985 1986 639,000 250,000 1/1/87 889,000 278,875.00 200,000 1/1/87 478,875.00 1,367,875.00 450,000
1986 1987 609,000 300,000 1/1/88 909,000 255,875.00 225,000 1/1/88 480,875.00 1,389.875.00 525,000
1987 1988 573,000 325,000 ' 1/1/89 898,000 230,000.00 250,000 1/1/89 480,000.00 1,378,000.00 575,000
1988 1989 534,000 375,000 1/1/90 909,000 201,250.00 275,000 1/1/90 476,250.00 1,385,250.00 650,000
1989 1990 489,000 400,000 1/1/91 889,000 169,625.00 325,000 1/1/91 494,625.00 1,383,625.00 725,000
1990 1991 • 441,000 450,000 1/1/92 891,000 132,250.00 350,000 1/1/92 482,250.00 1,373,250.00 800,000
1991 1992 387,000 500,000 1/1/93 887,000 92,000.00 375,000 1/1/93 467,000.00 1,354,000.00 875,000
1992 1993 327,000 575,000 1/1/94 902,000 48,875.00 425,000 1/1/94 473,875.00 1,375,875.00 1,000,000
1993 1994 258,000 625,000 1/1/95 883,000 - 0 - - 0 - - 0 - 883,000.00 625,000
1994 1995 183,000 725,000 1/1/96 908,000 908,000.00 725,000
1995 1996 96,000 800,000 1/1/97 . 896,000 896,000.00 800,000
$7,099,500 $5,750,000 $12,849,500 $2.,577,437.50 $3,350,000 $5,327,437.50 $18,171,937.50 $8,500,000
- 600,000
$2,750,000
Bond Years 59,162.50 22,412.50 81 ,575.00 (
Average Life 10.2891 years • 8. 1500 years 9.5971 years
* 21 months from 4/1/82 - 1/1/84.
Note: $5,750,000 Portion: Basic . . . , ;. . . . $1,095,000
1982 NWWC 3,451,075
Capital Int. @ 12% . . 1,207,500
Rounding 6,425
Total $5,750,000 .
R. V. Norene & Associates, Inc.
February 10, 1982
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TABLE B - 1
i
VILLAGE OF BUFFALO GROVE, ILLINOIS
$8,500,000 Corporate Purpose Bonds, Series 1982
(Bonds Dated March 1, 1982)
$5,750,000 NWWC Portion(Note) $2,750,000 Internal Portion
Tax Levy Interest Principal Interest Principal Combined Combined
Levy Collection @ 12% Amount Due Total @ 11 1/2% Amount Due Total Total Principal
1982 1983 $1,207,500* $ - 0 - i 1 84 $ 1,207,500 $ 553,437.50* $ - U -' , , 1/1/84 $ 553,437.50 $ 1,760,937.50 $ _ 0 _
1983 1984 690,000 200,000 1/1/85 890,000 316,250.00 150,000 1/1/85 466,250.00 1,356,250.00 350,;
1984 1985 666, 225,000 1Z1/86 891,000 299,000.00 175,000 1/1/86 474,000.00 1,365,000.00 400,0 0
1985 1986 639,000 250,000 1/1/87 889,000 278,875.00 200,000 1/1/87 478,875.00 1,367,875.00 450,000
1986 1987 609,000 300,000 1/1/88 909,000 255,875.00 225,000 1/1/88 480,875.00 1,389.875.00 525,000
1987 1988 573,000 325,000 ' 1/1/89 898,000 230,000.00 250,000 1/1/89 480,000.00 1 ,378,000.00 575,000
1988 1989 534,000 375,000 1/1/90 909,000 201,250.00 275,000 1/1/90 476,250.00 1 ,385,250.00 650,000
1989 1990 489,000 400,000 1/1/91 889,000 169,625.00 325,000 1/1/91 494,625.00 1 ,383,625.00 725,000
1990 1991 441,000 450,000 1/1/92 891,000 132,250.00 350,000 1/1/92 482,250.00 1 ,373,250.00 800,000
1991 1992 387,000 500,000 1/1/93 887,000 92,000.00 375,000 1/1/93 467,000.00 1,354,000.00 875,000
1992 1993 327,000 575,000 1/1/94 902,000 48,875.00 425,000 1/1/94 473,875.00 1 ,375,875.00 1,000,000
1993 1994 258,000 625,000 1/1/95 883,000 - 0 - - 0 - - 0 - 883,000.00 625,000
1994 1995 183,000 725,000 1/1/96 908,000 908,000.00 725,000
1995 1996 96,000 800,000 1/1/97 . 896,000 896,000.00 800,000
$7,099,500 $5,750,000 $12,849,500 $2,577,437.50 $3,350,000 $5,327,437.50 $18,171,937.50 $8,500,000
- 600,000
$2,750,000
Bond Years 59,162.50 22,412.50 81 ,575.00 ( (
Average Life
g 10.2891 years 8. 1500 years 9.5971 years
* 21 months from 4/1/82 - 1/1/84.
Note: $5,750,000 Portion: Basic . . . , $1,095,000
1982 NWWC 3,451,075
Capital Int. @ 12% 1,207,500
Rounding 6,425
Total $5,750,000 •
R. V. Norene & Associates, Inc.
February 10, 1982