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O-986-96 06/10/96ORDINANCE NO. 9i6 ORDINANCE PROVIDING FOR THE ISSUANCE OF $ 1,400,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1996 (ALTERNATE REVENUE SOURCE), OF THE VILLAGE OF LEMONT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, ILLINOIS, AS FOLLOWS: Section 1. Authority, Purpose and Findings. This ordinance is adopted pursuant to the Local Government Debt Reform Act, 30 Illinois Compiled Statutes 350, and the Tax Increment Allocation Redevelopment Act, 65 Illinois Compiled Statutes 5/11 -74.4 (the "Redevelopment Act ") for the purpose of financing the Village's share of the costs of the Main Street infrastructure improvements (the "Project ") included in the Downtown Lemont Tax Increment Redevelopment Project and Plan, dated March, 1991, and approved by Ordinance No. 690 of the Village of Lemont, Illinois, adopted May 28, 1991. Pursuant to Ordinance No. 908, adopted by President and Board of Trustees of the Village on September 25, 1995, and entitled: "Ordinance Authorizing the Issuance of $1,500,000 Tax Increment Revenue Bonds of the Village of Lemont, Illinois for the Purpose of Financing Redevelopment Project Costs," the Village authorized the issuance of $1,500,000 tax increment revenue bonds pursuant to the Redevelopment Act, for the purpose of financing the $1,500,000 estimated cost of the Project. Pursuant to Ordinance No. 909, adopted by said President and Board of Trustees on September 25, 1995, and entitled: "Ordinance Authorizing the Issuance of $1,500,000 General Obligation Alternate Bonds of the Village of Lemont, Illinois for the Purpose of Financing Redevelopment Project Costs" (the "Authorizing Ordinance ") the Village is authorized to issue $1,500,000 general obligation bonds for the purpose of financing costs of the Project. Said general obligation bonds are authorized to be issued as "alternate bonds" under Section 15 of the Local Government Debt Reform Act and in lieu of the issuance of the revenue bonds authorized by Ordinance No. 908. No bonds authorized by Ordinance No. 908 or Ordinance No. 909 have been issued. The Village determines that the costs of the Project are Redevelopment Project Costs as defined in the Redevelopment Act. Pursuant to the Redevelopment Act, the proceeds of sale of the bonds authorized by the Authorizing Ordinance are pledged to pay such Redevelopment Project Costs. All bonds authorized pursuant to the Authorizing Ordinance shall be payable from the portion of real property taxes collected with respect to taxable real property in the Downtown Redevelopment Project Area, designated by Ordinance No. 689 of the Village, adopted May 28, 1991, that is paid to the Village Treasurer for deposit in the "1991 Lemont Downtown Redevelopment Project Area Special Tax Allocation Fund" (the "Tax Allocation Fund ") -2- pursuant to Section 11- 74.4 -8 of the Redevelopment Act. Such tax receipts constitute a "Revenue Source" within the meaning of Section 15 of the Local Government Debt Reform Act and are herein called the "Revenue Source." The Village determines to proceed with the financing of the Project by the issuance of $1,400,000 of the $1,500,000 principal amount of general obligation bonds authorized by the Authorizing Ordinance. In accordance with Section 5 of the Local Government Debt Reform Act, this ordinance supplements the Authorizing Ordinance. Section 2. Authorization of Bonds. The sum of $1,400,000 is appropriated to meet part of the estimated cost of the Project and the costs of issuance of the bonds herein authorized, including bond insurance. For the purpose of financing said appropriation, general obligation bonds of the Village (being the bonds authorized by the Authorizing Ordinance) are authorized to be issued and sold in an aggregate principal amount of $1,400,000, and shall be designated "General Obligation Tax Increment Bonds, Series 1996 (Alternate Revenue Source)" (the "1996 Bonds "). The 1996 Bonds are authorized and issued as "alternate bonds" pursuant to the provisions of Section 15 of the Local Government Debt Reform Act and in lieu of the issuance of revenue bonds pursuant to the Redevelopment Act. It is determined that the Revenue Source will be sufficient to provide for or pay in each year to the final maturity of the 1996 Bonds, an amount not Tess than 1.25 times debt service on all (i) alternate bonds payable from such Revenue Source previously issued and outstanding and (ii) the 1996 Bonds. The determination of the sufficiency of the Revenue Source is supported by the Independent Auditor's Report on Financial Statements regarding the financial -3- statements of the Village for the fiscal year ended April 30, 1995, which Report was dated May 26, 1995 and prepared by Pandolfi, Topolski, Weiss & Co., Ltd., certified public accountants. Section 3. Terms of Bonds. The 1996 Bonds shall be issuable in the denominations of $5,000 or any integral multiple thereof and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of 1996 Bonds. Unless otherwise determined in the order to authenticate the 1996 Bonds, each 1996 Bond delivered upon the original issuance of the 1996 Bonds shall be dated as of June 1, 1996. Each 1996 Bond thereafter issued upon any transfer, exchange or replacement of 1996 Bonds shall be dated so that no gain or loss of interest shall result from such transfer, exchange or replacement. The 1996 Bonds shall mature on March 1 in each year shown in the following table in the respective principal amount set forth opposite each such year and the 1996 Bonds maturing in each such year shall bear interest at the respective rate per annum set forth opposite such year: Principal Interest Principal Interest Year Amount Rate Year Amount Rate 1999 $60,000 9.00% 2006 $100,000 5.25% 2000 65,000 9.00 2007 100,000 5.35 2001 75,000 9.00 2008 115,000 5.45 2002 80,000 9.00 2009 120,000 5.55 2003 85,000 6.10 2010 125,000 5.65 2004 100,000 5.15 2011 135,000 5.75 2005 100,000 5.20 2012 140,000 5.80 Each 1996 Bond shall bear interest from its date, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the -4- United States of America on September 1, 1997 and semiannually thereafter on each March 1 and September 1 at the rates per annum herein determined. The principal of the 1996 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 Bank One Wisconsin Trust Company, National Association, in the City of Milwaukee, Wisconsin, which is hereby appointed as bond registrar and paying agent for the 1996 Bonds. Interest on the 1996 Bonds shall be payable on each interest payment date to the registered owners of record thereof appearing on the registration books maintained by the Village for such purpose at the principal corporate trust office of the bond registrar, as of the close of business on the 15th day of the calendar month next preceding the applicable interest payment date. Interest on the 1996 Bonds shall be paid by check or draft mailed to such registered owners at their addresses appearing on the registration books or by wire transfer pursuant to an agreement by and between the Village and the registered owner. The 1996 Bonds maturing on or after March 1, 2009 shall be subject to redemption prior to maturity at the option of the Village and upon notice as herein provided, in such principal amounts and from such maturities as the Village shall determine and by lot within a single maturity, on March 1, 2008 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. In the event of the redemption of less than all the 1996 Bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof and the bond registrar shall assign to each 1996 Bond of such maturity a distinctive number for each $5,000 principal amount of such 1996 Bond -5- The bond registrar shall not be required to transfer or exchange any 1996 Bond after notice of the redemption of all or a portion thereof has been mailed. The bond registrar shall not be required to transfer or exchange any 1996 Bond during a period of 15 days next preceding the mailing of a notice of redemption that could designate for redemption all or a portion of such 1996 Bond. Section 4. Sale and Delivery. The 1996 Bonds are sold to Banc One Capital Corporation, as purchaser, at a price of $1,400,000 and accrued interest from their date to the date of delivery and payment therefor. The Official Statement prepared with respect to the 1996 Bonds is approved and "deemed final" as of its date for purposes of Securities and Exchange Commission Rule 15(c12 -12 promulgated under the Securities Exchange Act of 1934. The Village President, Village Clerk and other officials of the Village are authorized and directed to do and perform, or cause to be done or performed for or on behalf of the Village each and every thing necessary for the issuance of the 1996 Bonds, including the proper execution and delivery of the 1996 Bonds and the Official Statement. Section 5. Execution and Authentication. Each 1996 Bond shall be executed in the name of the Village by the manual or authorized facsimile signature of its Village President and the corporate seal of the Village, or a facsimile thereof, shall be thereunto affixed or otherwise reproduced thereon and attested by the manual or authorized facsimile signature of its Village Clerk. In case any officer whose signature, or a facsimile of whose signature, shall appear on any 1996 Bond shall cease to hold such office before the issuance of the 1996 Bond, such 1996 Bond shall nevertheless be valid and sufficient for all -7- and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount of such 1996 Bonds to be redeemed. The 1996 Bonds to be redeemed shall be the 1996 Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each 1996 Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. Notice of the redemption of 1996 Bonds shall be mailed not Tess than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of 1996 Bonds to be redeemed at their last addresses appearing on said registration books. The 1996 Bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the 1996 Bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such 1996 Bonds or portions thereof shall cease to accrue and become payable. If there shall be drawn for redemption Tess than all of a 1996 Bond, the Village shall execute and the bond registrar shall authenticate and deliver, upon the surrender of such 1996 Bond, without charge to the owner thereof, in exchange for the unredeemed balance of the 1996 Bond so surrendered, 1996 Bonds of like maturity and of the denomination of $5,000 or any integral multiple thereof. -6- purposes, the same as if the person whose signature, or a facsimile thereof, appears on such 1996 Bond had not ceased to hold such office. Any 1996 Bond may be signed, sealed or attested on behalf of the Village by any person who, on the date of such act, shall hold the proper office, notwithstanding that at the date of such 1996 Bond such person may not have held such office. No recourse shall be had for the payment of any 1996 Bonds against any officer who executes the 1996 Bonds. Each 1996 Bond shall bear thereon a certificate of authentication executed manually by the bond registrar. No 1996 Bond shall be entitled to any right or benefit under this ordinance or shall be valid or obligatory of any purpose until such certificate of authentication shall have been duly executed by the bond registrar. Section 6. Transfer, Exchange and Registry. The 1996 Bonds shall be negotiable, subject to the provisions for registration of transfer contained herein. Each 1996 Bond shall be transferable only upon the registration books maintained by the Village for that purpose at the principal corporate trust office of the bond registrar, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the bond registrar and duly executed by the registered owner or his duly authorized attorney. Upon the surrender for transfer of any such 1996 Bond, the Village shall execute and the bond registrar shall authenticate and deliver a new 1996 Bond or 1996 Bonds registered in the name of the transferee, of the same aggregate principal amount, series, maturity and interest rate as the surrendered 1996 Bond. 1996 Bonds, upon surrender thereof at the principal corporate trust office of the bond registrar, with a written instrument satisfactory to the bond registrar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged -8- for an equal aggregate principal amount of 1996 Bonds of the same series, maturity and interest rate and of the denominations of $5,000 or any integral multiple thereof. For every such exchange or registration of transfer of 1996 Bonds, the Village or the bond registrar may make a charge sufficient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced 1996 Bonds. The Village and the bond registrar may deem and treat the person in whose name any 1996 Bond shall be registered upon the registration books as the absolute owner of such 1996 Bond, whether such 1996 Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of or interest thereon and for all other purposes whatsoever, and all such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such 1996 Bond to the extent of the sum or sums so paid, and neither the Village nor the bond registrar shall be affected by any notice to the contrary. Section 7. General Obligations. The full faith and credit of the Village are hereby irrevocably pledged to the punctual payment of the principal of and interest on the 1996 Bonds. The 1996 Bonds shall be direct and general obligations of the Village, and the Village shall be obligated to levy ad valorem taxes upon all the taxable -9- property in the Village for the payment of the 1996 Bonds and the interest thereon, without limitation as to rate or amount. Section 8. Pledge of Revenue Source. The Tax Allocation Fund shall be maintained and administered by the Village in accordance with the provisions of the Redevelopment Act. Moneys held in the Tax Allocation Fund and the taxes and other moneys to be deposited therein pursuant to the Redevelopment Act are hereby pledged for the payment of Redevelopment Project Costs and as security for the payment of the 1996 Bonds. Nothing herein contained shall restrict the power of the Village to pledge such moneys and taxes for the benefit and security of the holders of additional bonds issued pursuant to the Redevelopment Act; to subordinate existing pledges of such moneys or to alter the use and distribution of moneys in the Tax Allocation Fund to the extent such alteration shall be made in furtherance of the purposes of the Redevelopment Act. Moneys held in the Tax Allocation Fund that are to be used for the payment of the principal of and interest on the 1996 Bonds may be deposited in the 1996 Debt Service Fund established by this ordinance, and upon such deposit such moneys shall be used solely for the payment of such principal and interest. The President and Board of Trustees of the Village covenants to provide for, collect and apply the Revenue Source to the payment of the 1996 Bonds and the provision of not Tess than an additional .25 times the annual debt service on the 1996 Bonds. Section 9. Form of Bonds. The 1996 Bonds shall be issued as fully registered bonds and shall be in substantially the following form, the blanks to be appropriately completed when the 1996 Bonds are printed: No. United States of America State of Illinois Counties of Cook, DuPage and Will VILLAGE OF LEMONT GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1996 (ALTERNATE REVENUE SOURCE) INTEREST RATE MATURITY DATE DATED DATE CUSIP • March 1, June 1, 1996 REGISTERED OWNER: Cede & Co. PRINCIPAL AMOUNT: The VILLAGE OF LEMONT, a municipal corporation of the State of Illinois situate in the Counties of Cook, DuPage and Will, acknowledges itself indebted and for value received hereby promises to pay to the registered owner of this bond, or registered assigns, the principal amount specified above on the maturity date specified above, and to pay interest on such principal amount from the date hereof at the interest rate per annum specified above, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on September 1, 1997 and semiannually thereafter on March 1 and September 1 in each year until the principal amount shall have been paid, to the registered owner of record hereof as of the 15th day of the calendar month next preceding such interest payment date, by wire transfer pursuant to an agreement by -11- and between the Village and the registered owner, or otherwise by check or draft mailed to the registered owner at the address of such owner appearing on the registration books maintained by the Village for such purpose at the principal corporate trust office of Bank One Wisconsin Trust Company, National Association, in the City of Milwaukee, Wisconsin, as bond registrar or its successor (the "Bond Registrar "). This bond, as to principal when due, will be payable in lawful money of the United States of America upon presentation and surrender of this bond at the principal corporate trust office of the Bond Registrar. The full faith and credit of the Village are irrevocably pledged for the punctual payment of the principal of and interest on this bond according to its terms. This bond is one of a series of bonds issued in the aggregate principal amount of $ 1,400,000, which are authorized and issued under and pursuant to the Local Government Debt Reform Act, 30 Illinois Compiled Statutes 350, and under and in accordance with an ordinance adopted by the President and Board of Trustees of the Village on September 25, 1995, and entitled: "Ordinance Authorizing the Issuance of $ 1,500,000 General Obligation Alternate Bonds of the Village of Lemont, Illinois for the Purpose of Financing Redevelopment Project Costs," as supplemented by an ordinance adopted by said President and Board of Trustees on June 10, 1996, and entitled: "Ordinance Providing for the Issuance of $ 1,400,000 General Obligation Tax Increment Bonds, Series 1996 (Alternate Revenue Source), of the Village of Lemont, Illinois" (the "Ordinance "). This bond is issued in accordance with the provisions of the Tax Increment Allocation Redevelopment Act, 65 Illinois Compiled Statutes 5/11 -74.4, for the purpose of financing redevelopment project costs. -12- This bond is an "alternate bond" issued pursuant to Section 15 of the Local Government Debt Reform Act and, to the extent provided in the Ordinance, is also secured by a pledge of certain taxes and other moneys deposited in the 1991 Lemont Downtown Redevelopment Project Area Special Tax Allocation Fund. The bonds of such series maturing on or after March 1, 2009 are subject to redemption prior to maturity at the option of the Village and upon notice as herein provided, in such principal amounts and from such maturities as the Village shall determine and by lot within a single maturity, on March 1, 2008 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. Notice of the redemption of bonds will be mailed not Tess than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on such registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender -13- hereof at the principal corporate trust office of the Bond Registrar together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or by his duly authorized attorney, and thereupon a new registered bond or bonds, in the authorized denominations of $5,000 or any integral multiple thereof and of the same aggregate principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange therefor. In like manner, this bond may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of any of such authorized denominations. The Village or the Bond Registrar may make a charge sufficient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this bond. No other charge shall be made for the privilege of making such transfer or exchange. The Village and the Bond Registrar may treat and consider the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal and interest due hereon and for all other purposes whatsoever. This bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this bond in order to make it a legal, valid and binding obligation of the Village have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the series of bonds of which this bond is one, together with -14- all other indebtedness of the Village, is within every debt or other limit prescribed by law. IN WITNESS WHEREOF, the Village of Lemont has caused this bond to be executed in its name and on its behalf by the manual or facsimile signature of its Village President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon and attested by the manual or facsimile signature of its Village Clerk. Dated: !o 74 CERTIFICATE OF AUTHENTICATION This bond is one of the General Obligation Tax Increment Bonds, Series 1996 (Alternate Revenue Source), described in the within mentioned Ordinance. BANK ONE WISCONSIN TRUST COMPANY, NATIONAL ASSOCIATION, as Bond Registrar By Authorized Signer / VI GE OF LEMONT I tea ■ 'fill. Pr-si•e 't -15- illage Clerk ASSIGNMENT For value received the undersigned sells, assigns and transfers unto the within bond and hereby irrevocably constitutes and appoints attorney to transfer the said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated Signature Guarantee: Section 10. Levy and Extension of Taxes. For the purpose of providing the money required to pay the interest on the 1996 Bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature, there is hereby levied upon all the taxable property in the Village, in each year while any of the 1996 Bonds shall be outstanding, a direct annual tax sufficient for that purpose in addition to all other taxes, as follows: Tax Levy Year 1996 1997 1998 1999 2000 2001 2002 2003 A Tax Sufficient to Produce $152,613.13 147, 207.50 146, 807.50 150,957.50 149, 207.50 147,007.50 156,822.50 151,672.50 Tax Levy Year 2004 2005 2006 2007 2008 2009 2010 A Tax Sufficient to Produce $146,472.50 141,222.50 150,872.50 149, 605.00 147, 945.00 150,882.50 148,120.00 Interest or principal coming due at any time when there shall be insufficient funds on hand to pay the' same shall be paid promptly when due from current funds on hand in advance of the collection of the taxes herein levied; and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. As soon as this ordinance becomes effective, a copy thereof certified by the Village Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be filed with the County Clerk of Cook County, Illinois, the County Clerk of DuPage County, Illinois and the County Clerk of Will County, Illinois, who are each hereby directed to ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in the years 1996 to 2010, inclusive, and to extend the same for collection on the tax books in connection with other taxes levied in said -17- years, in and by the Village for general corporate purposes of the Village, and in said years such annual tax shall be levied and collected in like manner as taxes for general corporate purposes for said years are levied and collected and, when collected, such taxes shall be used for the purpose of paying the principal of and interest on the 1996 Bonds herein authorized as the same become due and payable. The Village shall not abate the debt service taxes levied pursuant to this Section or take any action to restrict the extension and collection of those taxes except that the Village may abate any such debt service taxes for any tax levy year to the extent that, at the time of such abatement, moneys then held in the 1996 Debt Service Fund established by this ordinance, or otherwise held in trust for the payment of debt service on the 1996 Bonds, together with the amount to be extended for collection taking into account the proposed abatement, will be sufficient for the punctual payment of the principal of and interest on the 1996 Bonds otherwise payable from the debt service taxes levied for such tax levy year. For the purpose of providing the moneys needed to abate such debt service taxes, the Village shall apply the Revenue Source pledged under this ordinance and may deposit any other available funds. Section 11. Debt Service Fund. Moneys derived from taxes herein levied are appropriated and set aside for the purpose of paying principal of and interest on the 1996 Bonds when and as the same come due. All of such moneys, and all other moneys to be used for the payment of the principal of and interest on the 1996 Bonds, shall be deposited in the "1996 Redevelopment Project Debt Service Fund" (the "1996 Debt Service Fund "), which is hereby established as a special fund of the Village and shall be administered as a bona fide debt service fund under the Internal -18- Revenue Code of 1986. All accrued interest received upon the issuance of the 1996 Bonds shall be deposited in the 1996 Debt Service Fund. Section 12. Bond Proceeds Fund. All of the proceeds of sale of the 1996 Bonds (exclusive of accrued interest) shall be deposited in the "1996 Redevelopment Project Bond Proceeds Fund" (the "1996 Bond Proceeds Fund "), which is hereby established as a special fund of the Village. Moneys in the 1996 Bond Proceeds Fund shall be used for the purposes specified in Section 1 of this ordinance and for the payment of costs of issuance of the 1996 Bonds, but may hereafter be reappropriated and used for other purposes if such reappropriation is permitted under Illinois law and will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the 1996 Bonds. Section 13. Investment Regulations. No investment shall be made of any moneys in the 1996 Debt Service Fund or the 1996 Bond Proceeds Fund except in accordance with the tax covenants set forth in Section 14 of this ordinance. All income derived from such investments in respect of moneys or securities in any Fund shall be credited in each case to the Fund in which such moneys or securities are held. Any moneys in any Fund that are subject to investment yield restrictions may be invested in United States Treasury Securities, State and Local Government Series, pursuant to the regulations of the United States Treasury Department, Bureau of Public Debt, or in any tax - exempt bond that is not an "investment property" within the meaning of Section 148(b)(2) of the Internal Revenue Code of 1986. The Village Treasurer and agents designated by her are hereby authorized to submit, on behalf of the Village, subscriptions for such United States Treasury Securities and to request redemption of such United States Treasury Securities. -19- Section 14. Tax Covenants. The Village shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on any 1996 Bond to become subject to federal income taxes in addition to federal income taxes to which interest on such 1996 Bond is subject on the date of original issuance thereof. The Village shall not permit any of the proceeds of the 1996 Bonds, or any facilities financed with such proceeds, to be used in any manner that would cause any 1996 Bond to constitute a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986. The Village shall not permit any of the proceeds of the 1996 Bonds or other moneys to be invested in any manner that would cause any 1996 Bond to constitute an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986 or a "hedge bond" within the meaning of Section 149(g) of the Internal Revenue Code of 1986. The Village shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic intervals to the United States of America. Section 15. Bank Qualified Designation. The Village hereby designates the 1996 Bonds as "qualified tax - exempt obligations" as defined in Section 265(b)(3)(B) of the Internal Revenue Code of 1986. The Village represents that the reasonably anticipated amount of tax - exempt obligations that are required to be taken into account for the purpose of Section 265(b)(3)(C) of the Code and will be issued by or on behalf of the Village and all subordinate entities of the Village during 1996 does not exceed $10,000,000. The Village covenants that it will not designate and issue -20- more than $10,000,000 aggregate principal amount of tax - exempt obligations in the year in which the 1996 Bonds are issued. For purposes of the two preceding sentences, the term "tax- exempt obligations" includes "qualified 501(c)(3) bonds" (as defined in the Section 145 of the Internal Revenue Code of 1986) but does not include other "private activity bonds" (as defined in Section 141 of the Internal Revenue Code of 1986). Section 16. Continuing Disclosure. For the benefit of the beneficial owners of the 1996 Bonds, the Village covenants and agrees to provide an annual report containing certain financial information and operating data relating to the Village and to provide notices of the occurrence of certain enumerated events, if material. The annual report shall be filed with each Nationally Recognized Municipal Securities Information Repository and with the Illinois state information depository, if any, within 180 days after the close of the Village's fiscal year. The information to be contained in the annual report shall consist of the annual audited financial statement of the Village and such additional information as noted in the Official Statement under the caption "Continuing Disclosure." Each annual audited financial statement will conform to generally accepted accounting principles applicable to governmental units and will be prepared in accordance with standards of the Governmental Accounting Standards Board. If the audited financial statement is not available, then an unaudited financial statement shall be included in the annual report and the audited financial statement shall be filed within 30 days after it becomes available. The Village also covenants and agrees, for the benefit of the beneficial owners of the 1996 Bonds, to provide timely notice to the Municipal Securities Rulemaking -21- Board and to the Illinois state information depository, if any, of any failure of the Village to file any such annual report within the 180 day period and of the occurrence of any of the following events with respect to the 1996 Bonds, if material: (1) principal and interest payment delinquencies; (2) non - payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax - exempt status of the bonds; (7) modifications to rights of bondholders; (8) bond calls; (9) defeasances; (10) release, substitution or sale of property securing repayment of the bonds; and (11) rating changes. It is found and determined that the Village has agreed to the undertakings contained in this Section in order to assist participating underwriters of the 1996 Bonds and brokers, dealers and municipal securities dealers in complying with Securities and Exchange Commission Rule 15c2- 12(b)(5) promulgated under the Securities Exchange Act of 1934. The chief financial officer of the Village is authorized and directed to do and perform, or cause to be done or performed, for or on behalf of the Village, each and every thing necessary to accomplish the undertakings of the Village contained in this Section for so long as Rule 15c2- 12(b)(5) is applicable to the 1996 Bonds and the Village remains an "obligated person" under the Rule with respect to the 1996 Bonds. The undertakings contained in this Section may be amended by the Village upon a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of the obligated person, or type of business conducted, provided that (a) the undertaking, as amended, would have -22- complied with the requirements of Rule 15(c)2- 12(b)(5) at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances and (b) in the opinion of nationally recognized bond counsel selected by the Village, the amendment does not materially impair the interests of the beneficial owners of the 1996 Bonds. Section 17. Bond Registrar. The Village covenants that it shall at all times retain a bond registrar with respect to the 1996 Bonds, that it will maintain at the designated office of such bond registrar a place where 1996 Bonds may be presented for payment and registration of transfer or exchange and that it shall require that the bond registrar maintain proper registration books and perform the other duties and obligations imposed upon the bond registrar by this ordinance in a manner consistent with the standards, customs and practices of the municipal securities business. The bond registrar shall signify its acceptance of the duties and obligations imposed upon it by this ordinance by executing the certificate of authentication on any 1996 Bond, and by such execution the bond registrar shall be deemed to have certified to the Village that it has all requisite power to accept, and has accepted such duties and obligations not only with respect to the 1996 Bond so authenticated but with respect to all the 1996 Bonds. The bond registrar is the agent of the Village and shall not be liable in connection with the performance of its duties except for its own negligence or default. The bond registrar shall, however, be responsible for any representation in its certificate of authentication on the 1996 Bonds. The Village may remove the bond registrar at any time. In case at any time the bond registrar shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of -23- the bond registrar, or of its property, shall be appointed, or if any public officer shall take charge or control of the bond registrar or of its property or affairs, the Village covenants and agrees that it will thereupon appoint a successor bond registrar. The Village shall mail notice of any such appointment made by it to each registered owner of 1996 Bonds within twenty days after such appointment. Any bond registrar appointed under the provisions of this Section shall be a bank, trust company or national banking association maintaining its principal corporate trust office in the State of Illinois, the City of St. Louis, Missouri or the Borough of Manhattan, City and State of New York. Section 18. Book -Entry System. In order to provide for the initial issuance of the 1996 Bonds in a form that provides for a system of book -entry only transfers, the ownership of one fully registered 1996 Bond for each maturity, in the aggregate principal amount of such maturity, shall be registered in the name of Cede & Co., as a nominee of The Depository Trust Company, as securities depository for the 1996 Bonds. The Village Administrator is authorized to execute and deliver on behalf of the Village such letters to, or agreements with, the securities depository as shall be necessary to effectuate such book -entry system. The Village may remove the securities depository at any time. In case at any time the securities depository shall resign or shall be removed or shall become incapable of acting, then the Village shall appoint a successor securities depository to provide a system of book -entry only transfers for the 1996 Bonds, by written notice to the predecessor securities depository directing it to notify its participants (those persons for whom the securities depository holds securities) of the appointment of a successor securities depository. -24- The Village may terminate the system of book -entry only transfers for the bonds at any time, by written notice to the securities depository directing it to notify its participants of the availability of bond certificates. In such event, the Village shall issue and the bond registrar shall authenticate, register and deliver to the beneficial owners of the 1996 Bonds, bond certificates in replacement of such beneficial owners' beneficial interests in the 1996 Bonds, all as shown in the records maintained by the securities depository. Section 19. Defeasance and Payment of Bonds. (A) If the Village shall pay or cause to be paid to the registered owners of the 1996 Bonds, the principal and interest due or to become due thereon, at the times and in the manner stipulated therein and in this ordinance, then the pledge of taxes, securities and funds hereby pledged and the covenants, agreements and other obligations of the Village to the registered owners and the beneficial owners of the 1996 Bonds shall be discharged and satisfied. (B) Any 1996 Bonds or interest installments appertaining thereto, whether at or prior to the maturity or the redemption date of such 1996 Bonds, shall be deemed to have been paid within the meaning of paragraph (A) of this Section if (1) in case any such 1996 Bonds are to be redeemed prior to the maturity thereof, there shall have been taken all action necessary to call such 1996 Bonds for redemption and notice of such redemption shall have been duly given or provision shall have been made for the giving of such notice, and (2) there shall have been deposited in trust with a bank, trust company or national banking association acting as fiduciary for such purpose either (i) moneys in an amount which shall be sufficient, or (ii) "Federal Obligations" as defined in paragraph (C) of this Section, the principal of and the -25- interest on which when due will provide moneys which, together with any moneys on deposit with such fiduciary at the same time for such purpose, shall be sufficient, to pay when due the principal of and interest due and to become due on said 1996 Bonds on and prior to the applicable redemption date or maturity date thereof. (C) As used in this Section, the term "Federal Obligations" means (i) non - callable, direct obligations of the United States of America, (ii) non - callable and non - prepayable, direct obligations of any agency of the United States of America, which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii) non - callable, non - prepayable coupons or interest installments from the securities described in clause (i) or clause (ii) of this paragraph, which are stripped pursuant to programs of the Department of the Treasury of the United States of America, or (iv) coupons or interest installments stripped from bonds of the Resolution Funding Corporation. Section 20. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the Village and the registered owners of the 1996 Bonds. Any pledge made in this ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Village shall be for the equal benefit, protection and security of the owners of any and all of the 1996 Bonds. All of the 1996 Bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the 1996 Bonds over any other thereof except as expressly provided in or pursuant to this ordinance. The Authorizing Ordinance and this ordinance shall constitute full authority for the issuance of the 1996 Bonds and to the extent that the provisions of the Authorizing Ordinance, as supplemented by this ordinance, conflict with the provisions -26- of any other ordinance or resolution of the Village, the provisions of the Authorizing Ordinance as so supplemented, shall control. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 21. Publication. The Village Clerk is hereby authorized and directed to publish this ordinance in pamphlet form and to file copies thereof for public inspection in her office. Section 22. Effective Date. This ordinance shall become effective upon its passage and approval in the manner provided by law. Adopted this 10th day of June, 1996, by roll call vote as follows: Ayes: 6 Nays: 0 Published in pamphlet form: June 11, 1996 (SEAL) Attest: Village Clerk -27- Village President CERTIFICATE I, Charlene M. Smollen, Village Clerk of the Village of Lemont, Illinois, hereby certify that the foregoing ordinance entitled: "Ordinance Providing for the Issuance of $1,400,000 General Obligation Tax Increment Bonds, Series 1996 (Alternate Revenue Source), of the Village of Lemont, Illinois," is a true copy of an original ordinance that was duly adopted by the recorded affirmative votes of a majority of the members of the President and Board of Trustees of the Village at a meeting thereof that was duly called and held at 7:30 p.m. on June 10, 1996, at Village Hall, 418 Main Street, and at which a quorum was present and acting throughout, and that said copy has been compared by me with the original ordinance signed by the Village President on June 10, 1996, and thereafter published in pamphlet form on June 11, 1996 and recorded in the Ordinance Book of the Village and that it is a correct transcript thereof and of the whole of said ordinance, and that said ordinance has not been altered, amended, repealed or revoked, but is in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of / the Village, this `d a, day of June, 1996. (SEAL) .DOCUMENT #: CHG005A (05779- 00002 -4) 240435 .1;DATE:06 /07/96/T1ME:14:11 -28- CERTIFICATION OF MINUTES I, Charlene M. Smollen, Village Clerk of the Village of Lemont, Illinois, hereby certify that annexed hereto is a copy of the minutes of a meeting of the President and Board of Trustees of the Village of Lemont, Illinois, duly called and held on June 10, 1996, and at which a quorum was present and acting throughout. I further certify that I have compared said copy with the original minutes of said meeting as recorded in the minute book of said President and Board of Trustees and that said copy is a true and correct copy of the whole of said original minutes. IN WITNESS WHEREOF, I have hereunto set my hand and have caused the seal of said Village to be affixed, this /04 day of June, 1996. Village Clerk (SEAL) . DOCUMENT #: CH0005A ( 05779 - 00002 -4) 240575 .1;DATE:05 /22/96/TIMR:16:33 VILLAGE BOARD METING June 10, 1996 The regular meeting of the Lemont Village Board took place on Monday, June 10, 1996 at 7:30 p.m., President Richard Kwasneski presiding. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo present. Schobert absent. HL CONSENT AGENDA/OMNIBUS VOTE A. Approval of Minutes B. Approval of Disbursements. C. Referral of Petition for Rezoning (R4 to B3) at 1013 State Street to Planning & Zoning Commission. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo; ayes. Schobert absent. Motion passed. IV. MAYOR'S REPORT A Proclamation honoring Rev. Thomas Enright was passed upon motion of Buschman, seconded by Rimbo. Voice vote: 5 yeas. Motion passed. Mr. Schobert arrived at 7:32 p.m. A presentation by IDOT and National Highway Traffic Safety Association regarding Lemont Police Department Image Grant was made. Pete Sanders, Operation Buckle Down, thanked Lemont and Sgt. Sitkowski for all the effort. 1996 Mayoral Endowment Scholarship to Joliet Junior College was presented to Jennifer Standard, a graduating senior from Lemont High School. Former Mayor Forzley spoke about the efforts to create the scholarship which began while he was Mayor. AUDIENCE PARTICIPATION A new resident of 8 Kettering Lane spoke about flooding problems on that street. Dan Fielding will look into this. Kettering Lane is part of the combined sewer system. Plans to separate the system are in Phase II of the Road Program. Pamela Maksimovic, a resident of Archer Avenue, asked for an update regarding the spillway abutting their property from Chestnut Crossing. Dana Jenkins noted that staff is pursuing two issues: 1) how stormwater detention will be accomplished since removal of one previously approved spillway. Developer has been advised of his responsibility to resolve this issue; 2) resolution of the complaint by developer of Chestnut Crossing that Maksimovic home is improperly discharching into the ravine in Chestnut Crossing. Mr. Bob Gaggiano, MWRD Pollution Control Office, will be meeting with staff on 6/11 and will follow up on possible contamination of the stream bed. Staff will advise the Board as further information becomes available. George Petecki, Jr. of George's Landscaping, 700 Main Street, spoke about requests for variation on agenda this evening. V. CLERK'S REPORT After several months of cataloging documents and preparing certificates, the Illinois State Archives has given us approval to dispose of superfluous records. We are in the process of doing that now. Notice of a Public Hearing regarding AT &T wireless PCS application to provide commercial mobile radio services to be held at the Illinois Commerce Commission, 160 N. LaSalle on June 13 at 1:30 pm. Chaired my last meeting as President of the South & West Municipal Clerks' Association in Bridgeview on 6/6. Senator Pat O'Malley was the guest speaker. After turning the gavel over to Chuck White, Posen, I was presented with a lovely bouquet of flowers and a gold bracelet from the membership. I was also presented the MCI pin which was presented at the International Clerks' Meeting in New Mexico in May. I have been appointed Chairman of the Audit Committee for this year. B. ORDINANCES Ordinance # 986, Ordinance Approving Issuance of $1A Million Alternate Revenue TIF Bond for Main Street Improvements. Motion by Markiewicz, seconded by Latz, to adopt said ordinance. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance #987, Ordinance Authorizing Execution of An Annexation Agreement fora 78 Acre Parcel at the NW Corner of Smith Road and 127th Street (Aero Heights). Motion by Latz, seconded by Buschman, to adopt said Ordinance with the deletion of Paragraph 24. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance #988, Ordinance Authorizing Execution of An Annexation Agreement fora 76 Acre Parcel West of the 1-355 Alignment between 127th Street and Big Run Acres (Rolling Meadows). Motion by Latz, seconded by Rimbo, to adopt said ordinance. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance #989, Ordinance Authorizing Execution of a Utility and Annexation Participation Agreement among Jurinek & Riskus, Inc., Aero Heights Partnership, and the Village of Lemont. Motion by Rimbo, seconded by Buschman, to adopt said ordinance. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance # 990, Ordinance Authorizing Execution of a Recapture Agreement for Sewer and Water among Jurinek & Riskus, Inc., Aero Heights Partnership, and the Village of Lemont. Motion by Schobert, seconded by Markiewicz, to adopt said ordinance. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance #991, Ordinance Providing for the Collection of Garbage. Motion by Latz, seconded by Buschman, to adopt said ordinance. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance #992, Ordinance Approving Standard Specifications for the Design and Construction of Public Improvements and Private Site Improvements. Motion by Rimbo, seconded by Schobert, to adopt said ordinance. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance # 993, Ordinance Approving Installation of a Stop Sign on Northbound Walker Road at McCarthy Road. Motion by Latz, seconded by Buschman, to adopt said ordinance. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Ordinance #994, Ordinance Granting a Special Use to Permit Outdoor Sales and Storage at 700 Main Street (George's Landscaping). Motion by Rimbo, seconded by Chin to adopt said ordinance. Roll call: Buschman, no; Chin, abstain; Latz, no; Markiewicz, no; Rimbo, no; Schobert; no. Motion denied. Ordinance #995, Ordinance Granting Variances at 700 Main Street (George's Landscaping). Motion by Latz, seconded by Rimbo, to adopt said ordinance. Motion by Schobert, seconded by Latz, to accept previous roll call. Voice vote: 6 yeas. Motion denied. C. RESOLUTIONS Resolution # 430, Resolution Approving 2nd Amendment to Main Street Phase II Engineering Contract with Beam, Longest & Neff. Motion by Buschman, seconded by Markiewicz, to adopt said resolution. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Resolution # 431, Resolution Approving Letter of Credit Reduction for Hirsekorn Ridge Subdivision. Motion by Rimbo, seconded by Markiewicz, to adopt said resolution. Roll call: Buschman,Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Resolution #432, Resolution Approving Village Participation in Facade Grant Program: 103 Stephen Street. Motion by Buschman, seconded by Latz, to adopt said resolution. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. VL VILLAGE ATTORNEY REPORT. VII. VILLAGE ADMINISTRATOR REPORT - Notice has been received from METRA that State funds were made available for paving of the area under the bridge. Project will begin after Labor Day. VIII. STAFF REPORTS Dan Fielding Public Works. Met with BLN regarding Road Program. Engineering is moving along well. Bids will probably go out in July. lain Vasey Economic Development/Downtown Lemont. Economic Development seminar was well attended last Friday by the business community although the State Treasurer did not make it and sent staff members instead. IL BOARD REPORTS Buschman Downtown Development. Attended Jaycees 40th anniversary celebration dinner. Festival Commission will be meeting every Wednesday to complete plans for Heritage Fest on July 13. Volunteers still needed. Lemont Street paving is now complete. Clock for Budnik Plaza has not been selected yet by the Design Committee. Chin Public Works. Motion to accept bid for backhoe/loader in the amount of $64,790 from Casey Equipment by Chin, seconded by Rimbo. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Lutz Legislative. Attended I -355 Public Hearing at Lincolnway High School from 7:00 - 12:00 m. Trustee Latz gave testimony around 10:00 p.m. in favor of the project. Markiewicz Finance. Preliminary audit is complete. Report will be prepared by auditors. Motion by Rimbo, seconded by Schobert, to move into Executive Session for the purpose of discussing personnel. Roll call: Buschman, Chin, Latz, Markiewicz, Rimbo, Schobert; ayes. Motion passed. Motion by Buschman, seconded by Markiewicz, to move into Executive Session for the purpose of discussing pending and threatened litigation. Motion to use previous roll call by Latz, seconded by Chin. Voice vote: 6 yeas. Motion passed. Trustee Rimbo excused to return to work. Back in regular session, a motion was made by Schobert, seconded by Markiewicz, to hold an Executive Session to discuss pending litigation at 6:30 pm. on Monday, June 24. Roll call: Buschman, Chin, Latz, Markiewicz, Schobert; ayes. Rimbo absent. Motion passed. There being no further business, a motion was made by Buschman, seconded by Markiewicz, to adjourn the meeting at 10:27 pm. Voice vote: 5 ayes. Motion passed.