HomeMy WebLinkAboutORDINANCE - 1794 - 4/15/1986 - CORPORATE PURPOSE BONDSVILLAGE OF ELK GROVE VILLAGE k
COOK AND DUPAGE COUNTIES, ILLINOIS
ORDINANCE NO. 1794
ORDINANCE SUPPLEMENTING AN "ORDINANCE PROVIDING FOR THE
ISSUANCE OF $9,750,000 OF CORPORATE PURPOSE BONDS, SERIES 1985,
OF THE VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES,
ILLINOIS, AND PROVIDING FOR THE LEVY OF A DIRECT ANNUAL TAX FOR
THE PAYMENT OF PRINCIPAL OF AND INTEREST ON THOSE BONDS."
Passed by the President and Board of Trustees of the Village of
Elk Grove Village, Cook and DuPage Counties, Illinois this 15th
day of April, 1986 A.D.
Published in pamphlet form by the authority of the President
and Board of. Trustees of the Village of Elk Grove Village, Cook
and Dupage Counties, Illinois this 15th day of April, 1986 A.D.
S. Smith
Patricia S. Smith
Village Clerk
Village of Elk Grove Village
j
STATE OF ILLINOIS )
SS
COUNTY OF COOK )
I, Patricia S. Smith, Clerk of the Village of Elk Grove
Village, Cook and DuPage Counties, Illinois and keeper of the
records, files and Seal of said Village do hereby certify that
the attached is a true copy of an Ordinance of the Village of
Elk Grove Village, Cook and DuPage Counties, Illinois, entitled
"Ordinance No. 1794, Ordinance Supplementing an Ordinance
providing for the issuance of $9,750,000 of Corporate Purpose
Bonds, Series 1985, of the Village of Elk Grove Village, Cook
and DuPage Counties, Illinois, and providing for the levy of a
Direct Annual Tax for the payment of principal of and interest
on those Bonds," passed by the President and Board of Trustees
of the Village of Elk Grove Village, Cook and DuPage Counties,
Illinois on the 15th day of April, 1986 A.D., as appears from
the records and files in my office remaining.
Given under my hand and Seal of said Village of Elk Grove
Village, Illinois this 15th day of April, 1986 A.D.
Patricia S. Smith
Patricia S. Smith
Vallage Clerk
Village of Elk Grove Village
Ordinance No. 1794
ORDINANCE SUPPLEMENTING AN "ORDINANCE PROVIDING FOR
THE ISSUANCE OF $9,750,000 OF CORPORATE PURPOSE BONDS,
SERIES 1985, OF THE VILLAGE OF ELK GROVE VILLAGE, COOK
AND DUPAGE 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 ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES,
ILLINOIS, AS FOLLOWS:
Section 1. It is found and declared by the President
and Board of Trustees of the Village of Elk Grove Village, Cook
and DuPage Counties, Illinois (the "Village"), as follows:
(a) The President and the Board of Trustees of
the Village adopted Ordinance No. 1766 on December 17, 1985
(the "Bond Ordinance") which: (i) provided for the issuance
of $9,750,000 of general obligation corporate purpose bonds
(the "Bonds") of the Village of Elk Grove Village for the
purposes of paying for the costs of certain improvements to
and extensions of the existing public works systems in the
Village and paying for the costs of the issuance of the
Bonds and (ii) provided for the levy of a direct annual tax
upon all taxable property within the Village sufficient to
pay the principal of and interest on the Bonds for each
year. The Bond Ordinance authorized the Village to solicit
bids for the sale of the Bonds and to approve the
acceptance of a bid in a supplemental ordinance which
ordinance would set forth the name of the purchaser, the
aggregate purchase price, the initial date of the Bonds,
the maturity schedule, the actual interest rates to be
borne by the Bonds, the exact amounts needed from the taxes
levied in the Bond Ordinance (but in no event greater in
any period than the amounts provided in Section 4 of the
Bond Ordinance) to pay the principal of and interest on the
Bonds as they become due and the amount of taxes in excess
of such exact amounts to be abated. The Bond Ordinance
also authorized the Village to appoint in a supplemental
ordinance a Paying Agent, Authenticating Agent and Bond
Registrar.
(b) The Village has advertised and solicited
bids for the sale of the Bonds. On April 14, 1986 the
Village received two sealed bids. The bid from Merrill
Lynch Capital Markets is the best bid, and it is in the
best interest of the Village to accept that bid and to sell
the Bonds pursuant to that bid. The aggregate purchase
price of the Bonds, as stated in that bid, is
$9,457,571.80, plus accrued interest to the date of
delivery of the Bonds to the Purchaser, as defined below.
Section 2.
(a) The offer of Merrill Lynch Capital Markets
(the "Purchaser") to purchase the Bonds upon the terms and
conditions set forth in the Purchaser's bid is accepted. The
President and Clerk of the Village are authorized and directed
to execute the bid on behalf of the Village. The prior
distribution of the Preliminary Official Statement of the
Village, dated April 4, 1986, together with the Official Notice
-2-
of Sale and Official Bid Form, in the form of Exhibit A
attached 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 Official
Statement of the Village substantially in the form of Exhibit B
attached to this Ordinance is approved and the Village
President and Manager are authorized and directed to sign
copies of the Official Statement in the name of and on behalf
of the Village and to deliver the executed Official Statement
to the Purchaser.
The Bonds shall be executed as provided in Section 2
of the Bond Ordinance. The Bonds shall be delivered to the
Purchaser upon receipt of the purchase price of the Bonds.
(b) American National Bank and Trust Company of
Chicago, Chicago, Illinois, is appointed as Paying Agent, Bond
Registrar and Authenticating Agent.
(c) The Bonds shall be in substantially the form
set forth in Exhibit C to this Ordinance.
Section 3. The Bonds shall initially be dated May 1,
1986, and shall bear interest from that date until paid.
Interest on the Bonds shall be payable on June 1 and December 1
in each year, with the first interest payment date being
December 1, 1986. The Bonds shall mature on December 1 in the
years and the amounts and shall bear interest at the rates, all
as set forth below:
-3-
Maturing
(December 1)
Principal Amount
Interest Rate
1988
255,000
5.00%
1989
265,000
5.25
1990
280,000
5.50
1991
300,000
5.75
1992
315,000
6.00
1993
335,000
6.15
1994
360,000
6.30
1995
380,000
6.45
1996
405,000
6.60
1997
435,000
6.70
1998
465,000
6.80
1999
495,000
6.90
2000
530,000
7.00
2001
570,000
7.10
2002
610,000
7.20
2003
650,o00
7.25
2004
695,000
7.30
2005
745,000
7.35
2006
800,000
7.40
2007
860,000
5.75
The Bonds maturing on and after December 1, 1996 shall
be subject to optional redemption, in whole or in part, at a
price equal to their principal amount, without premium, on any
interest payment date occuring on or after December 1, 1995.
If less than all of the Bonds of a single maturity are to be
redeemed, the Bonds (or portions of them) to be redeemed shall
be selected by lot as provided in Section 2(e) of the Bond
Ordinance.
Section 4. There is abated the amount of those taxes
levied pursuant to the Bond Ordinance to the extent the taxes
levied by the Bond Ordinance are in excess of the amounts
needed to pay and discharge the principal of the Bonds at
maturity and to pay interest on the Bonds for each year at the
rates set forth above. For each of the following levy years
and periods specified below are (a) the taxes levied by`Section
4 of the Bond Ordinance, (b) the amount of taxes levied by the
Bond Ordinance which are abated pursuant to this Ordinance and
(c) the exact amount of those taxes required to be produced to
pay interest on the Bonds and to discharge the principal of the
Bonds at maturity (such amounts being equal, for each levy year
and period, to the difference between the amount specified in
column (a) and the amount specified in column (b)).
Year
of
Levy
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
(a)
Taxes Levied by
the Bond Ordinance
$ 745,000.00
745,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
1,130,000.00
(b)
Taxes Abated
$7-365, 592. 71
94,587.50
224,587.50
227,337.50
226,250.00
221,650.00
223,900.00
222,800.00
218,402.50
221,082.50
220,592.50
217,322.50
216,467.50
218,087.50
217,242.50
214,342.50
214,812.50
218,732.50
220,857.50
221,592.50
221,350.00
220,550.00
(c)
Exact Amount of
Taxes Required to
be Produced to
Pay Principal
and Interest
$ 379,407.29
650,412.50
905,412.50
902,662.50
903,750.00
908,350.00
906,100.00
907,200.00
911,597.50
908,917.50
909,407.50
912,677.50
913,532.50
911,912.50
912,757.50
915,657.50
915,187.50
911,267.50
909,142.50
908,407.50
908,650.00
909,450.00
Section 5. It is the duty of the County Clerks to
abate the taxes for each of the years 1985 through 2006 as
provided in Section 4 of this Ordinance.
-5-
Section 6. Section 6 of the Bond Ordinance is amended
to read as follows:
The Village covenants with the holders of the Bonds
from time to time outstanding that it will take no action in
the investment of the proceeds of the Bonds, amounts in the
Fund or any other funds of the Village which would result in
making interest on the Bonds subject to federal income taxes by
reason of causing the Bonds to be "arbitrage bonds" within the
meaning of Section 103(c) (or any successor section) of the
Internal Revenue Code of 1954, as amended, and any lawful
regulations promulgated or proposed under that Section (or its
successor). The President, Clerk and Treasurer 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 pertaining to the use of the
proceeds of the Bonds and moneys in the Fund in order to
establish that the Bonds shall not constitute arbitrage bonds
as to defined.
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 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 (i) to abate those taxes
pursuant to the Supplemental Ordinance, to the extent the taxes
levied by this Ordinance are in excess of the amounts needed to
pay principal of and interest on the Bonds as they come due in
each year; and (ii) 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 7. All ordinances, resolutions and orders or
parts of ordinances (including the Bond Ordinance), resolutions
and orders in conflict with this Ordinance are repealed to the
extent of such conflict.
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.
PASSED by the President and Board of Trustees of the
Village this April 15, 1986.
-7-
Voting Aye (list names): Trustees Joseph T. Bosslet, Dennis J. Gallitano,
Edward R. Hauser, James P. Petri, Michael A. Tosto
Voting Nay (list names): none
Abstaining (list names): none
Absent (list names): Trustee Ronald L. Chernick
Patricia S. Smith
Village Clerk
SIGNED by the President this April 15, 1986.
Charles J. Zettek
ATTEST:
Patricia S. Smith
Village Clerk
President
Published in pamphlet form April 15, 1986.
cm
EXI-1i4 7"
' [
LP Na r stns t�ls
Q�oK- OA) FIC& WI ` H I
p121Gt,Jftl..,
NEW ISSUE MOODY'S RATING: Aa
In the opinion of Bond Counsel, interest on the Bonds is exempt from federal income taxes under
existing law. Interest on the Bonds is not exempt from Illinois income taxes.
$9,750,000
Village of Elk Grove Village
Cook and DuPage Counties, Illinois
Corporate Purpose Bonds, Series 1985
Dated: May 1, 1986
Due: December 1 as shown below
The Bonds will be issued in fully registered form in denominations of $5,000 or any integral
multiple of that sum. Interest on the Bonds will accrue from their date, payable on December 1, 1986
and on each succeeding June 1 and December 1. Interest will be paid by check or draft mailed to the
registered owners of the Bonds by American National Bank and Trust Company of Chicago (the
"Registrar" and "Paying Agent"). Principal of the Bonds will be payable at the principal corporate
trust office of the Paying Agent.
The Bonds are subject to redemption prior to maturity as described in this Official Statement.
The Bonds are general obligations of the Village of Elk Grove Village, payable from ad valorem
taxes to be levied upon all taxable property in the Village, in addition to all other taxes, without
limitation as to rate or amount.
The Bonds are being issued to fund the Village's capital improvement program, which includes an
expansion of the Village Hall and certain public works projects.
AMOUNTS, MATURITIES, INTEREST RATES AND YIELDS
Principal
Due
Interest
Principal
Due
Interest
Amount
December 1
Rate
Yield
Amunt
December 1
Rate
Yield
$255,000
1988
5.00%
5.00%
$465,000
1998
6.80%
6.80%
265,000
1989
5.25
5.25
495,000
1999
6.90
6.90
280,000
1990
5.50
5.50
530,000
2000
7.00
7.00
300,000
1991
5.75
5.75
570,000
2001
7.10
7.10
315,000
1992
6.00
6.00
610,000
2002
7.20
7.20
335,000
1993
6.15
6.15
650,000
2003
7.25
7.25
360,000
1994
6.30
6.30
695,000
2004
7.30
7.30
380,000
1995
6.45
6.45
745,000
2005
7.35
7.35
405,000
1996
6.60
6.60
800,000
2006
7.40
7.40
435,000
1997
6.70
6.70
860,000
2007
5.75
7.50
The Bonds are offered when, as
and if issued and received by the Underwriter, subject to the
approval of
legality by Isham, Lincoln & Beale, Chicago, Illinois,
Bond Counsel.
It is expected that
the Bonds in definitive form will be
available for
delivery in Chicago, Illinois on or about May 14,
1986.
May 1, 1986
OFFyCIAL NOTICE OF SAS.
$997509000
Village of Elk Grove Village
Cook and DuPage Counties, Illinois
Corporate Purpose Bonds, Series 1985
The Village of Elk Grove Village, Illinois will receive sealed bids for its $9,750,000 General Obligation Bonds
on an all or none basis at the offices of John Nuveen & Co., 33rd Floor, 333 West Wacker Drive, Chicago, Illinois
60606 until 12:00 Noon, C.S.T., Monday, April 14, 1986 at which time the bids will be publicly opened and read.
Award will be made, or all bids rejected at a meeting of the Village Board of Trustees on April 15, 1986.
General Obligations
These bonds are full faith and credit obligations both the principal and interest of which are payable from
property taxes to be levied without limit as to rate or amount on all ad valorem property of the Village of Elk
Grove Village.
Registration
These bonds will be in fully registered form and will be in the denomination of $5,000 and integral multiples
thereof. Principal and semiannual interest will be payable by the Village's registration and paying agent, the
American National Bank and Trust Company of Chicago, the "Registrar." Interest on each bond shall be paid
by check or draft of the Registrar to the person in whose name such bond is registered at the close of business on
the 15th day of the month next preceding the interest payment date. The principal of the bonds shall be payable
in lawful money of the United States of America at the corporate trust office of the Registrar in Chicago, Illinois.
Bonds are dated May 1, 1986. The first interest payment is December 1, 1986.
W. IlJAM1
Principal
Due
Principal
Due
Amount
December I
Amount
December I
$255,000
1988
$465,000
1998
265,000
1989
495,000
1999
280,000
1990
530,000
2000
300,000
1991
570,000
2001
315,000
1992
610,000
2002
335,000
1993
650,000
2003
360,000
1994
695,000
2004
380,000
1995
745,000
2005
405,000
1996
800,000
2006
435,000
1997
860,000
2007
Optional Redemption
Bonds due December 1, 1988-1995, inclusive, are non -callable. Bonds due December 1, 1996.2007,
inclusive, are callable on any interest payment date on or after December 1, 1995. If less than all of the bonds are
called, they shall be redeemed in the inverse order of maturity and within any maturity by lot. Bonds called shall
be paid at par and accrued interest.
Bid Specifications
These 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 May 1, 1986, to the respective maturity dates. All
interest rates must be in multiples of one -twentieth or one-eightb of one percent (1/20 or '/a of I%) and not more
than one for a single maturity shall be specified. The rates bid shall be such that the differential between the
highest rate bid and the lowest rate bid shall not exceed three percent (3%). All bids must be for all of the bonds,
must be for not less than $9,457,500 (97% of par) plus accrued interest from May 1, 1986, to 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 above.
True )interest _'ost ("TP7
The Bonds will be awarded to the bidder making a bid conforming to the terms of the offering which, on the
basis of the lowest net effective interest rate for the Bonds, determined in the manner hereinafter stated, is the
best bid. The net effective interest rate for the Bonds shall be the interest rate determined on a,true interest cost
("TIC") basis by doubling the semiannual interest rate, necessary to discount the debt service payments to the
dated date of the Bonds and to the price bid, excluding accrued interest to the date of delivery. In the event of
more than one proposal specifying the lowest such rate, the Bonds will be awarded to the bidder whose proposal is
selected by lot from among all such proposals. For purposes of determining the best bid, the net effective interest
rate will be calculated based on the amount of Bonds being offered as set forth in the Official Statement and the
Official Bid Form.
Good Faith Check
Each bid shall be accompanied by a certified or cashier's check on a solvent bank or trust company for
$195,000 payable to the Village Treasurer of the Village of Elk Grove Village, 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 promptly returned. No interest will be allowed on any check. 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 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.
Delivery
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 May 14. Should delivery be delayed beyond
sixty 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 cancel the 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 Isham, Lincoln & Beale, Chicago, Illinois, that the bonds are lawful and enforceable obligations of the Village
in accordance with their terms and are full faith and credit obligations of the Village; (2) the opinion of said
attorneys that the interest on the bonds is exempt from Federal Income Taxes in effect on the date of such
delivery; 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.
Authorization
The Village Board of Trustees has authorized the preparation and distribution of an Official Statement
containing pertinent information relative to the Village. Copies of the Statement or additional information may
be obtained from the undersigned at the Village Hall, 901 Wellington Avenue, Elk Grove Village, Illinois 60007,
or from the Financial Advisor to the Village, John Nuveen & Co., Incorporated, 33rd Floor, 333 West Wacker
Drive, Chicago, Illinois 60606, Telephone (312) 917-7894.
GEORGE C. CONEY
Treasurer and Director of Finance
Village of Elk Grove Village
OFFICIAL BID FORM
Village of Elk Grove Village. Illinois
c/o John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606
President and Village Board of Trustees:
April 14, 1986
For your $9,750,000 Corporate Purpose Bonds, Series 1985 (maturing 1988 through 2007) of the Village of Elk Grove
Village, 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 May 1, 1986, to the date of delivery for bonds bearing interest as follows (each
rate a multiple of 1/8 or 1/20 of 1%).
AMOUNTS, MATURITIES, AND INTEREST RATES
Principal
Due
Interest
Prindpal
Due
Interest
Amount
December I
Rates
Amount
December 1
Rates
$255,000
1988
_%O
$465,000
1998
—%r
265,000
1989
495,000
1999
280,000
1990
_96
530,000
2000
300,000
1991
_%
570,000
2001
_0/c
315,000
1992
_%
610,000
2002
—%
335,000
1993
_%
650,000
2003
360,000
1994
_96
695,000
2004
_0/0
380,000
1995
_46
745,000
2005
405,000
1996
800,000
2006
435,000
1997
—rR
860,000
2007
Said bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving
legal opinion of Isham, Lincoln & Beale, Chicago, Illinois. You are to pay for said legal opinion and for printing the bonds.
Unless we notify you to the contrary within 24 hours, CUSIP numbers are to be printed on the bonds at our expense 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 payable to the order of the Treasurer of the Village of Elk
Grove Village, Illinois in the sum of $195,000 under the terms provided in your Official Notice of Sale. Attached hereto is a
list of the members of our account on whose behalf this bid is made.
Description of Check:
Amount: 5195,000
Name of Bank
City State
Certified (Cashier's) Check No
Dated
Respectfully Submitted,
Nam
Account Manager
Address
For Use by Village Only
The above check was returned and received
for the above named Account Manager
By
State
The foregoing bid was accepted and bonds sold by resolution of the Village of Elk Grove Village, Illinois, April 15, 1986,
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 ELK GROVE VILLAGE, ILLINOIS
Village Clerk
— NOT A PART OF BID —
Our calculation on a true interest cost ("TIC') basis
produces a net effective interest rate of %
TOTAL BOND YEARS: 138,502.500 Years
AVERAGE LIFE: 14.205 Years
President
EXHIBIT B
- v —
NEW ISSUE MOODY'S R TING: 413,
In the opinion of Bond Counsel, interest on the Bonds is exempt from federal incomN4xes under
existing law. Interest on the Bonds is not exempt from Illinois income taxes. x-'..•
$9,750,000 JVU
VILLAGE OF ELK GROVE VILLAGE!
Cook and DuPage Counties, Illinois
Corporate Purpose Bonds, Series 1985
Dated: May 1, 1986
Due: December I as shown below
The Bonds will be issued in fully registered form in denominations of $5,000 or any integral
multiple of that sum. Interest on the Bonds will accrue from their date, payable on December 1, 1986
and on each succeeding June 1 and December 1. Interest will be paid by check or draft mailed to the
registered owners of the Bonds by American National Bank and Trust Company of Chicago (the
"Registrar" and "Paying Agent"). Principal of the Bonds will be payable at the principal corporate
trust office of the Paying Agent.
The Bonds are subject to redemption prior to maturity as described in this Official Statement.
The Bonds are general obligations of the Village of Elk Grove Village, payable from ad valorem
taxes to be levied upon all taxable property in the Village, in addition to all other taxes, without
limitation as to rate or amount.
The Bonds are being issued to fund the Village's capital improvement program, which includes an
expansion of the Village Hall and certain public works projects.
Yield
6.go %
tr, ql 0
1.00
1,10
7. io
7.1f
1.30
7.40
7. So
The Bonds are offered when, as and if issued and received by the Underwriter, subject to the
approval of legalit} by Isham, Lincoln & Beale, Chicago, Illinois, Bond Counsel. It is expected that
the Bonds in definitive form will be available for delivery in Chicago, Illinois on or about May 14,
1986.
May 1, 1986
Date of Sale: April 14, 1986
Sealed bids will be received until 12:00 p.m. Central Standard
AMOUNTS, MATURITIES, INTEREST RATES AND YIELDS
Principal
Due
Interest
WMMIA—
Principal
Dm
Interest
Amami
December 1
Rate
Yield
Amount
December 1
Rue
$255,000
1988
<00 %
5'06 qc,
$465,000
1998
(,,$ 0%
265,000
1989
S, y ,
; zS
495,000
1999
(0.90
280,000
1990
s i0
S. So
530,000
2000
'7.00
300,000
1991
5-7 S
r-75'
570,000
2001
7, 10
315,000
1992
(6.00
6.00
610,000
2002
7.20
335,000
1993
to. 1 S
6,1 S
650,000
2003
360,000
1994
6, 30
&.;o
695,000
2004
380,000
1995
6:vS
(..4S
745,000
2005
—I, 3 S
405,000
1996
to. 6x0
6.60
800,000
2006
'7.46( 0
435,000
1997
6.70
(o.'70
860,000
2007
5..7 S
Yield
6.go %
tr, ql 0
1.00
1,10
7. io
7.1f
1.30
7.40
7. So
The Bonds are offered when, as and if issued and received by the Underwriter, subject to the
approval of legalit} by Isham, Lincoln & Beale, Chicago, Illinois, Bond Counsel. It is expected that
the Bonds in definitive form will be available for delivery in Chicago, Illinois on or about May 14,
1986.
May 1, 1986
Date of Sale: April 14, 1986
Sealed bids will be received until 12:00 p.m. Central Standard
This Official Statement does not constitute an offer to sell the
Bonds in any jurisdiction to any person to whom it is unlawful to make
such offer in such jurisdiction. No dealer, broker, salesman or other
person has been authorized to give any information or to make any
representation other than those contained in this Official Statement in
connection with the offering of the Bonds, and, if given or made, such
information or representation must not be relied upon. Certain
information set forth in this Official Statement has been obtained from
sources other than the Village that are believed to be reliable, but the
information is not guaranteed as to accuracy or completeness by the
Village. The information and expressions of opinion in this Official
Statement are subject to change without notice, and neither the delivery
of this Official Statement, nor any sale made under it, shall in any
circumstance create an implication that there has been no change in the
affairs of the Village since the date of this Official Statement.
TABLE OF CONTENTS
Page
INTRODUCTION...................................................
1
PURPOSE OF ISSUE ...............................................
1
SECURITY FOR THE BONDS .........................................
2
DESCRIPTION OF THE BONDS .......................................
2
THE VILLAGE OF ELK GROVE VILLAGE ...............................
3
REAL PROPERTY ASSESSMENT, TAX LEVY
AND COLLECTION PROCEDURES ....................................
18
RATINGS........................................................
24
LITIGATION.....................................................
24
LEGALITY.......................................................
24
TAX EXEMPTION ..................................................
25
PENDING FEDERAL TAX LEGISLATION ................................
25
MISCELLANEOUS..................................................
26
Village of Elk Grove Village
Cook and DuPage Counties, Illinois
901 Wellington Avenue
Elk Grove Village, Illinois 60007
VILLAGE PRESIDENT
Charles J. Zettek
VILLAGE BOARD OF TRUSTEES
Joseph T. Bosslet James P. Petri
Ronald L. Chernick Michael A. Tosto
Edward R. Hauser Dennis J. Gallitano
ADMINISTRATION
Village Manager Charles Willis
Village Clerk Patrici . Smith
Village Treasurer George C. Coney
FINANCIAL ADVISOR
John Nuveen and Co. Incorporated
BOND COUNSEL
Isham, Lincoln & Beale
Chicago, Illinois
VILLAGE ATTORNEY
George B. Knickerbocker
Samuelson, Knickerbocker & Associates
SUMMARY STATEMENT
The following presents summary information regarding the terms of
the Bonds. The information is qualified in its entirety by reference to
the more detailed descriptions appearing in this Official Statement and
should be read together with those more detailed descriptions.
The Village . . . . . . . . . . . . . . The Village was incorporated as a
Village in 1956. It is a "home
rule" unit pursuant to Section 6
of Article VII of the 1970
Constitution of the State of
Illinois.
Denomination of Bonds . . . . . .
Interest on the Bonds . . . . . .
The Bonds will be issuable only
in denominations of $5,000 and
integral multiples of that sum.
The Bonds will pay interest
semiannually on each June 1 and
December 1, with the first
interest payment date being
December 1, 1986. Interest will
be paid by check or draft mailed
to the registered address of each
Bondholder.
Optional Redemption . . . . . . . . . . The Bonds maturing on and after
December 1, 1996 are subject to
optional redemption, in whole or
in part, on not less than 30
days' notice, at a price equal to
their principal amount, without
premium, on any interest payment
date occurring on or after
December 1, 1995.
Mandatory Redemption. . . . . . . . . . The Bonds are not subject to
mandatory redemption prior to
their maturity.
Security for the Bonds. . . . . . . . . The Bonds 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.
Tax Levy . . . . . . . . . . . . . . . . The Village has levied taxes, in
addition to all other taxes, in
an amount suffient to pay the
principal of and interest on the
Bonds.
i
OFFICIAL STATEMENT
$9,750,000
VILLAGE OF ELK GROVE VILLAGE
COOK AND DUPAGE COUNTIES, ILLINOIS
Corporate Purpose Bonds, Series 1985
INTRODUCTION
This Official Statement is furnished by the Village of Elk Grove
Village, Cook and DuPage Counties, Illinois (the "Village"), in
connection with the offering of $9,750,000 aggregate principal amount of
its Corporate Purpose Bonds, Series 1985 (the "Bonds").
The Bonds are issued pursuant to and in accordance with the
authority granted to the home rule units of local government by Article
VII, Section 6 of the 1970 Constitution of the State of Illinois and an
ordinance of the Village adopted on December 17, 1985, as supplemented by
an ordinance of the Village adopted on April 15, 1986 (together, the
"Ordinance").
The Bonds are general obligations of the Village, secured by a
pledge of its full faith and credit. Pursuant to the Ordinance, the
Village has levied a direct annual tax, in addition to all other taxes,
upon all taxable property of the Village sufficient to pay and discharge
the principal of the Bonds at maturity and to pay interest on the Bonds
as it falls due.
This Official Statement, which includes its cover page, Summary
Statement and Appendix, provides information concerning the Village and
the Bonds. This Official Statement should be read in its entirety by any
prospective purchaser of the Bonds.
PURPOSE OF ISSUE
The Bonds are being issued to provide funds to finance the Village's
capital improvement program, which includes improvements to the Village
Hall, and certain public works improvements, all of which are more fully
described under the heading "THE VILLAGE OF ELK GROVE VILLAGE -- Capital
Improvement Program."
Sources and Uses of Funds
Sources of Funds
Principal Amount of Bonds 9,750,000
Interest Earnings (1) $ 1,078,560
Total Sources of Funds $10,828,560
Uses of Funds
Cost of Projects (2)
Cost of Issuance
Total Uses of Funds
$10,630,000
198,560
$10,828,560
(1) Interest earnings assumed at 7.5% on Construction Fund.
(2) Estimated costs of construction, right-of-way, land acquisition and
contingencies. (See "THE VILLAGE OF ELK GROVE VILLAGE -- Capital
Improvement Program," below).
SECURITY FOR THE BONDS
The Bonds, together with interest on them, will be payable from ad
valorem taxes to be levied on all taxable property in the Village, in
addition to all other taxes, without limitation as to rate or amount.
The Ordinance requires the Village to levy taxes in an amount such that
proceeds from actual tax collections will be sufficient to pay principal
and interest on the Bonds when due.
The full faith and credit of the Village are pledged to the payment
of principal and interest on the Bonds.
DESCRIPTION OF THE BONDS
Principal Amount, Date and Maturities. The Bonds will be issued in
the principal amount of $9,750,000. The Bonds will initially be dated
and will bear interest from May 1, 1986. The Bonds will mature on the
dates and will bear interest at the respective interest rates shown on
the front cover. Interest on the Bonds is payable on June 1 and December
1 in each year, with the first interest payment date being December 1,
1986. Interest is to be computed on the basis of a 360 -day year of
twelve 30 -day months.
Paying Agent. Principal of the Bonds will be payable at the
principal corporate trust office of American National Bank and Trust
Company of Chicago, Chicago, Illinois, the Paying Agent. Interest on the
Bonds will be payable by check or draft mailed by the Paying Agent to the
persons in whose names the Bonds are registered as of the 15th day of the
month preceding each June 1 or December 1 on which interest is due.
Optional Redemption. The Bonds maturing on and after December 1,
1996 are subject to optional redemption, in whole or in part, at a price
equal to their principal amount, without premium, on any interest payment
date occurring on or after December 1, 1995. If less than all of the
Bonds of a single maturity are to be redeemed, the Bonds (or portions of
them) to be redeemed shall be selected by lot.
- 2 -
Notice of Redemption. Notice of the redemption of any Bond shall be
given by registered or certified mail to its holder of record not less
than 30 days or more than 60 days prior to the redemption date.
Form, Denomination and Registration. The Bonds will be issued in
fully registered form in the denomination of $5,000 or any integral
multiple of that sum. The transfer of Bonds must be registered upon the
Village's registration books at the principal corporate trust office of
American National Bank and Trust Company of Chicago, Chicago, Illinois
(the "Registrar"). Bonds may also be exchanged for an equal aggregate
principal amount of Bonds of the same maturity of any other authorized
denominations at the principal corporate trust office of the Registrar.
The Registrar is authorized to charge any person transferring or
exchanging Bonds an amount sufficient to reimburse it for any tax, fee or
other governmental charge required to be paid with respect to that
exchange or transfer.
THE VILLAGE OF ELK GROVE VILLAGE
General Information
The Village, incorporated in 1956, is located 26 miles northwest of
downtown Chicago and is adjacent to Chicago's O'Hare International
Airport, the world's busiest airport. The Village had a 1980 U.S. Census
population of 28,679; the 1984 U.S. Census Bureau population estimate for
Elk Grove Villlage is 30,476. By the year 2005, the Northeastern
Illinois Planning Commission projects that the population of the Village
will increase to 42,714.
The Village's other contiguous municipal neighbors include Arlington
Heights to the north, Itasca, Wooddale and Bensenville to the south, Des
Plaines to the east and Schaumburg to the west. The approximately 12
square miles of the Village include approximately three square miles in
DuPage County and nine square miles in Cook County.
Government of the Village '}
The Village is a home rule municipality under the Constitution and p
laws of the State of Illinois.
The Village was .incorporated in 1956. The governing body of the
Village is the President and Board of Trustees. The Village President is
elected for a four year term. He is the Chief Executive Officer of the
Village, and presides over Board meetings and executes official
documents. Ma apps&s" , with the consent of the Board of Trustees, the
Village Treasurer and the members of
Committ es and Commissions. ' J
ubufilr R� : �1 I
L��
O _ 3 , 111111-4U
�AWJ ffiv vo-t)
The Village Board of Trustees consists of six members elected at
large for four year staggered terms. With the President, the Board
enacts ordinances, oversees the finances of the Village, levies taxes,
establishes policies for Village services and procedures and bears the
responsibility for all municipal government. The Trustees serve on
various Standing Committees. These Committees include Judiciary,
Planning and Zoning, Capital Improvement and Personnel.
The Village Manager is the Chief Administrative -)Officer of the
Village and is responsible for the management of a11=Village operations
under the direction of the President and Board of Trustees. The Manager
is appointed by the President and Board of Trustees and serves at their
pleasure. The Village Department Heads report to the Village Manager.
Village Officers
Charles J. Zettek, Village President
Charles A. Willis, Village Manager
George C. Coney, Finance Director and Village Treasurer
Hilda Ingebrigtsen, Assistant Director of Finance
Settlement
The Village was developed as a planned industrial and residential
community. Its initial settlement was aided by the opening of O'Hare
International Airport in October, 1955 and the completion of the
Northwest route of the Illinois Tollway shortly thereafter. The Centex
Construction Company purchased and began developing nine square miles of
farmland that was incorporated as the Village in 1956. The Centex
Industrial Park originally contained approximately 2,250 acres but has
been expanded to include 4,000 acres. Centex sold a 3,500 acre parcel of
land to the Cook County Forest Preserve District for permanent
recreational use by the County's citizens.
Transportation
Automobile access to Elk Grove Village is provided by Interstate 90
(the Northwest Tollway), Interstate 290 and U.S. Highways 72, 53 and 83.
Commuters may reach Chicago in 45 minutes on the Northwest Tollway
and other suburban office and commercial centers in Schaumburg, Arlington
Heights, Des Plaines and Elmhurst in shorter commuting times.
Education
Community Consolidated School District #59 and District #54 serve,
for the most part, the Village's elementary -school-age children. Of the
Districts' 21 original schools, seven elementary schools and one junior
- 4 -
high school have been closed. No further closings are currently
planned. Elementary school enrollments in the two districts have
declined from 5,047 in 1975 to 4,291 in 1985. The Districts' enrollment
is projected to be 5,362 in school year 1986-87 and 5,370 in school year
1987-88.
High School Districts /1211 and #214 serve, for the most part, the
Village's high -school-age children. These districts have seven high
schools, one of sihich is in the Village. Secondary school enrollment has
declined from a level of 2,481 in 1975 to 1,495 in 1985, and is expected
to decline for the next six to seven years, necessitating the closing of
one additional high school.
:n
Community College District 11512 .'serves, for the most part, the
Village's post -secondary school residents.
Wealth and Population
The 1980 Median Family Income of the Village was $28,210 (according
to the U.S. Census Bureau), which was 33.4% greater than the State
average. In the City and County Data Book, 1983 (published by the U. S.
Census Bureau), the Village's Median Household Income of $28,210 ranked
36th among the Median Family Incomes of the 952 U.S. cities whose
populations exceed 25,000.
The following table shows Illinois's ten wealthiest communities with
a population of 25,000 or more as of the 1980 Census. The Village ranked
ninth.
ILLINOIS'S TEN WEALTHIEST COMMUNITIES WITH 25.000 PLUS POPULATION AT 1960 CENSUS
(Lis too
In Oeseanding Order or Median HOuaah0ld Income) (Note)
- 5 -
bodlan
Uousello ld Income,Ronk
Persons -
Population
-9'2`;S
Income
Inc rle[!
ii1575 Vi[n
pl rcln[
Btlz
WOrM
1960
Over
25.000+
or
O.S.
Poverty
force
Ant
NunlClo44IH/County
Census
1970
Amount
P90ulation
MO,,n
(Percent)
Uneaoloved
1
borth6 rook. Cook
30,776
o21.1s
$39,926
]rd
237.1;
2.0;
2.45
2
Highland Park, Lake
]0,611
-5.11
36,542
4th
226.9;
2.11
2.4;
3
Wilmette, cook
25,221
-12.21
36,960
Sth
219.6;
2.6;
2.6;
Y
No perville, Ou Page
42,601
-66.91
34,147
6th
2D2.5;
1.9;
1.9�
5
Olanv iev, Cook
32,060
N26.9;
33,0I5
9[N
196.4;
1.6;
2.5.
6
Park aio9e, Cook
36,70$
-9.2;
31,056
lath
16$.4;
1.9'.
2.7;
7
Palatine, Cook
32.166
-23.51
30,396
16th
160.5;
2.0;
3.6;
p
Arl,ngton Ne.ghts,
Cook
66,116
-1.61
30,205
21st
179.4;
2.6;
2.9;
9
Elk Grove village,
Cook arM Wpa9e
26.679
!41.01
21.210
36th
167.5;
1.7;
2.7%
10
wileaton, DUPa9e
47,043
X31.21
27,996
37th
166.21
3.3;
3.2;
State or Illinois
11.427,414
.2.91
19,321
-
114.71
11.01
7.21
United states
2PN.545,/05
•11.41
16,141
-
-
12.4;
6.51
botH
As ranked 6y the U.
S. Census bureau
In the puolicatlon
County
are City Oats
book.
1953
la Statistical
A4stroct Supplement).
- 5 -
Housin (1980 Data)
Owner Occupied Dwelling Units 6,392
Rental Dwelling Units 3,199
Median Home Value $78,300
Median Rental (per month) $ 325
Building Activity
In the years 1975-1985, the Village experienced substantial building
activity reflecting population increases and continued industrial
development. The following table details construction activity in the
Village,
Building Permit Values: 1975-1985
pesib entiel
ns tructipn !1
Number Of
Commercial
end
Value
,nouttrlB. COn6tryctlon
(1)
Calendar
Number of
525
Year
permits
Value
1975
254
$29,582,149
1976
38'21,222.097
4,011,949
1977
354
30,590,770
1978
32326,518,818
31,831,171
1979
306
28,092,793
1980
240
32,273,105
1981
267
19,571,704
1982
256
7,130,602
19e3
252
73.711,521
1964
292
33,171,033
1985
335
22,547,436
pesib entiel
ns tructipn !1
Number Of
perm) is
Value
434
5 4,699,645
590
14,167,726
525
15,473,583
455
12,862,679
315
17,244,353
240
5,206,171
206
4,011,949
176
5,957,087
324
16,166,346
571
31,831,171
471
27,029,225
Miscellaneous
unstructior I
Number of
permits
vs lue
258
5 311,486
247
244,336
292
388,079
275
467,157
241
640,643
272
661,079
236
381,658
266
430,297
350
1,617,574
336
2,194.852
435
961,209
Notes:
111 Includes ail construction activities Including now buildings, additions and remodeling.
(2) Includes permits for signs, pool,, fences and other •Istel unsous permits.
5o u rce:
Construction information frpm the year-end report of the Building end Development Department,
Village of Elk Grove Village.
Economic Development
The Village experiences a net inflow of employees every working day
to its many business establishments. The 1980 Census reported an
"employment/residence ratio" (number of persons working in the Village
divided by the number of resident workers in the Village who reported
their place of work) of 2.842. This figure was the highest in the State
for communities with populations greater than 25,000 (Northbrook was
second with a ratio of 1.8666). Of the 952 communities in the U.S. with
populations greater than 25,000, only 11 had a higher ratio.
The Centex Industrial Park, located in the eastern portion cf the
Village, adjacent _to O'Hare International Airport, includes an estimated
2,400 firms employing approximately 44,000 persons. Employment in the
Industrial Park comes from its 1,600 manufacturing and distribution
firms, 700 service businesses and 100 commercial establishments.
The 1977 and 1982 Census of Wholesale Trade ranked the Village
second in Illinois in the number of employees, establishments and
payroll. In terms of sales, the Village ranked fifth in 1977 and 4th in
1982. Between the 1972 and the 1977 Census, wholesale sales in the
Village increased 117.6% versus 59.2% for Cook County and 84.0% for
Illinois. Growth between 1977 and 1982, as reported by the Census of
Wholesale Trade, is reported below:
Elk Grove Vill
Census of Wholesale Trade
Census
1977 1982
Percent
Increase 1977-82
Elk Grove State
Number
of Establishments
435
604
+38.9%
+2.3%
Number
of Employees
7,819
12,103
+54.8%
+2.50,,
Annual
Payroll (000)
$ 125,206
$ 250,267
+99.9%
+45.3%
Sales
(000)
$2,646,000
$4,302,511
+62.5%
+35.0%
Employment
The diversity of employment within the Cook and DuPage County area
is reflected in a wide variety of employers and employment opportunities
within the Village. Principal employers are listed on the following
schedule:
Ms
Principal Employers
Name Employees
Alexian Brothers Med'cal
Center
1,500
McGraw -Edison
q Vw ti
r.'t
-1,000
Sola Basic ' '%-.0
Y.' -=
C7q_,•_�
800
Alden Press
1983
f
600
TRW/CINCH
500
Enesco
2.0%
2.7%
400
Zenith
8.6%
6.6%
400
Pioneer Screw
and Nut
8.5%
400
The Village's diverse employment opportunities and exceptional
locational advantages are revealed in lower unemployment rates than those
of the County or the State.
Unemployed Rates -Civilian Labor Force (1)
Notes: (1) By place of residence, not place of work.
(2) 1984 Annual Average includes preliminary December data.
Source: U.S. Department of Labor and Illinois Department of Labor.
1970
1980
Annual
Average
Census
Census
1981
1982
1983
1984(2)
Village of Elk Grove Village
2.0%
2.7%
5.2%
8.1%
8.6%
6.6%
Cook County
3.7%
7.5%
8.5%
10.8%
10.6%
8.6%
State of Illinois
3.7%
7.2%
8.5%
11.3%
11.4%
9.1%
United States
4.9%
6.6%
7.6%
9.5%
9.6%
7.5%
Notes: (1) By place of residence, not place of work.
(2) 1984 Annual Average includes preliminary December data.
Source: U.S. Department of Labor and Illinois Department of Labor.
Tax Base
The Village's proximity to O'Hare International Airport and location
in the center of the transportation crossroads of the Northwest suburban
area have fostered the strong growth of the industrial and manufacturing
sector of the Village. The Village's ten largest property taxpayers and
their facility descriptions reflect these influences.
Taxpayer
Trammell Crow Company
Arthur J. Rogers, Inc.
McGraw Edison
Draper & Kramer Realty
Liberty Properties, Inc.
Elk Grove Terrace
General Tire & Rubber Company
Jewel Companies
GTE
Goodyear Tire Company
Total Ten Largest Taxpayers
Ten Largest Taxpayers
Percentage
of Total
1984 Assessed
Description of Facility Valuation Valuation
Elk Grove Industrial Park -
$24,771,277
3.67%
Rogers Industrial Park
10,591,563
1.57%
Mfg. of Incandescent Lamps
7,320,640
SDK Industrial Park
6,938,718
1.03%
Office Complex
5.499,450
.61%
Apartment Complex
4,890,090
.73%
warehouse/Distribution Center
3,534,394
.52%
warehouse/Distribution Center
3,372,897
.50%
warehouse/Distribution Center
3,191,026
.47%
We rehouse/Distribution Center
_3.154.769
•47 Z,
573.264.824 10.85%
Source: Addison Township Assessor's Office and Elk Grove Township Assessor's Office.
Village Employees
The Village employs 284 persons and the Library employs another 55.
The Village is not a party to any collective bargaining agreements, but
is aware of certain organizational activity currently being conducted
with respect to its employees. In general, the Village enjoys good
relations with its employees.
�)C
PK-- -
Pension Fund Obligations
The Village participates in three defined benefit pension plans
which cover substantially all employees. Retirement benefits are
provided for employees who meet certain age and service requirements.
Payments are generally correlated with the employees length of service
and earnings. Legal requirements of the plans (including contributions,
vesting, benefit and fund deficit provisions) are governed by Chapter
108-1(2 of the Illinois Statutes. The plans are funded by employee and
employer contributions and interest earnings, with all administration
costs borne by the Village.
All employees, other than police officers, fire fighters and those
working fewer than 1000 hours per year, are covered by the Illinois
Municipal Retirement Fund (the "IMRF") which is a statewide
multi-employer plan governed by a state board of trustees.
The IMRF determines the contribution rate for the Village to provide
for full funding of prior service costs, as determined actuarially, over
a future period of not more than 40 years. Amortization of prior service
costs began in 1962. The Village funds its portion of the plan through
annual tax levies, which for Fiscal 1985 totalled $269,593.
All Village police officers are covered by the Police Pension Fund
and all firefighters are covered by the Firefighters's Pension Fund.
Both plans are governed by separate Boards of Trustees constituted of
Village officials and police or fire employee representatives. The
Village funds its portion of each plan from annual tax levies. In Fiscal
1985, contributions totalled $293,796 and $467,901 for the Police and
Firefighters's Pension Funds, respectively. Both funds are fully funded
on an actuarial basis.
Financial Operations of the Village
Budget Process. The Village's Fiscal Year commences on May 1 of
each year and ends on April 30 of the next succeeding year. The Village
prepares its annual budget and appropriation ordinance and maintains its
books on a modified accrual basis. Budgets are adopted by resolution of
the Village Board in April.
At least six months prior to the end of a Fiscal Year, each Village
department begins preparation of its individual budget for the next
Fiscal Year. During January the departmental budgets are reviewed and
adjusted by the Village Manager. The proposed budget is presented to the
Village Board by the Village Manager and is normally adopted by
resolution during the month of April. The budget resolution forms the
general outline from which the Appropriation Ordinance is derived. The
Appropriation Ordinance, as adopted, is the legal spending authorization
of the Village, and expenditures set forth in the Appropriation Ordinance
may not be exceeded. All appropriations lapse at the end of the Fiscal
Year and reappropriations are required in the following Fiscal Year.
- 10 -
Supplemental appropriation ordinances may be passed by the Village
Board in the event that new sources of revenue become available within a
Fiscal Year. The Village Board may approve line item budget transfers
within a fund, but transfers among funds are not allowed.
The Public Library Fund is administered by an elected Board of
Directors. The Illinois Statutes provide the Library Board with
authority to manage the operation of the Library, including financial
management. The Library Board submits its appropriation and levy for the
next fiscal year, which is included, without changes, with other funds of
the Village in the Appropriation Ordinance.
independent Audit. The Village's financial statements are audited
annually by the independent accounting firm of Coopers and Lybrand,
Chicago, Illinois who have audited the Village's financial statements
since 1976. The Village's financial statement of governmental funds is
prepared on a modified accrual basis of accounting.
Financial Control Procedures. The Village's expenditures are
monitored on a regular basis by the Director of Finance. Disbursements
are made only if an expenditure is within the authorized appropriation.
For each expenditure a purchase order is prepared and approved and the
related appropriation is encumbered by the Treasurer before a check is
issued.
Fund Accounting. The Village reports financial results based on
generally accepted accounting principles as promulgated by National
Council on Governmental Accounting (NCGA) and its successor Governmental
Accounting Standards Board (GASB). The accounts of the Village are
divided into separate self -balancing funds comprised of its assets,
liabilities, fund equity, revenues and expenditures, as appropriate.
Government resources are allocated to and accounted for in six broadly
defined governmental fund groups (General, Special Revenue, Capital
Projects, Debt Service, Enterprise and Trust). The General Fund is the
general operating fund of the Village. During Fiscal 1985 approximately
55% of the Village's revenues and expenditures were accounted for in the
General Fund.
Revenues. The principal sources of Village revenue for all funds,
fund groups, and accounts are sales taxes, water and sewer fees, property
taxes, federal grants and intergovernmental receipts.
The primary sources of General Fund revenues are sales tax, property
tax, intergovernmental receipts and license fees. For Fiscal 1985, the
Village General Fund received revenues from the sources, in the amounts,
and representing the percentages, as follows:
Fund balance carry -forwards are also a significant factor in the
financial condition of the General Fund. In recent Fiscal Years, fund
balance carry -forwards have approximated $5,000,000, and since 1983
General Fund revenues exceeded expenditures prior to consideration of
fund balance carry -forwards from the previous year.
The Village has developed budgets and managed expenditures toward
the goal of producing a General Fund balance at the end of the fiscal
year sufficient to fund approximately one quarter's continuing General
Fund operations. On April 30, 1985, out of a General Fund balance of
$5.7 million, $4.6 million was held in cash and investments.
Expenditures. The principal Village expenditures for all funds,
fund groups and accounts are for public safety, water and sewer service,
capital outlays, public works and general government.
The Village's General Fund accounts for most of the basic services
provided for by the Village. For Fiscal 1985, the Village General Fund
had expenditures for the uses,__in the amounts, and representing the
percentages, as follows:
Increase
Percent
(Decrease)
Revenue Source
Amount
of Total
From 1984
Property Taxes
$ 4,353,386
28.5%.
$ 485,835
Municipal Sales Tax
5,542,940
36.2:
729,739
Other Taxes
430,665
2.8
173,006
Licenses and Permits
1,003,019
6.6
47,805
Intergovernmental Revenues
2,301,565
13.0
141,981
Charges for Services
82,855 -
1,, 6.,,
( 8,301)
Fines and Forfeits
569,057
3.7
88,931
Interest Earned
829,266
5.4
148,310
Miscellaneous & Other Sources
179,951
1.2
( 96,147)
Total
$15,292,704
100.0%
$1,711,159
Fund balance carry -forwards are also a significant factor in the
financial condition of the General Fund. In recent Fiscal Years, fund
balance carry -forwards have approximated $5,000,000, and since 1983
General Fund revenues exceeded expenditures prior to consideration of
fund balance carry -forwards from the previous year.
The Village has developed budgets and managed expenditures toward
the goal of producing a General Fund balance at the end of the fiscal
year sufficient to fund approximately one quarter's continuing General
Fund operations. On April 30, 1985, out of a General Fund balance of
$5.7 million, $4.6 million was held in cash and investments.
Expenditures. The principal Village expenditures for all funds,
fund groups and accounts are for public safety, water and sewer service,
capital outlays, public works and general government.
The Village's General Fund accounts for most of the basic services
provided for by the Village. For Fiscal 1985, the Village General Fund
had expenditures for the uses,__in the amounts, and representing the
percentages, as follows:
- 12 -
Increase
Percent
(Decrease)
Function
Amount
of Total
From 1984
General Government
$ 1,788,022
14.4%
$ 128,066
Public Safety
6,643,236
53.6
957,656
Highways and Streest
2,430,613
19.6
628,816 .
Health
110,572
0.9
7,691
Community Services
54,461
0.4
4,555
Intellectual Environment
947,502
7.6
116,126
Public Works
91,288
0.7
( 23,699)
Pension Contributions
269,593
2.2
40,739
Debt Service
65,573
0.6
( 18,038)
Total
$12,400,860
100.0%
$1,841,912
- 12 -
The following table represents a summary of revenues and
expenditures prepared on a cash basis for the Village's General Fund for
its five most recent -Fiscal Years. The tabulation on the second, page
following presents the Combined Statement of all funds for the past five
years, with a breakdown of the revenues and expenditures, and fund
balances, for Fiscal -1985.
- 13 -
General Fund
Statement of
Revenues
Expenditures
and Changes in Fund Balance
(1)
Year Ended April 30
1985
1984
1983
1962
198:
Property Tax
$ 3,020,671
$ 3,021,361
41,060,462
$1,142,699
$1,291,105
• Municipal Sales Tax
5,542,940
4,813,201
4,380,076
2,280,030
--
Other Taxes
430,665
257,659
214,604
206,276
4,658,870
Licenses and permits
1,003,019
955,214
310,687
702,898
601,770
Intergovernmental Revenues
- 1,365,951
1,305,434
1,152,967
1,078,391
346,47E
Charges for Services
60,270
89,281
61,677
114,232
60,479
Fines and Forfeits-
552,434
461,602
357,438
272,565
216,295
• Interest Earned
693,243
549,867
517,959
697,854
641,951
Miscellaneous and Other Services 114,050
209,811
63:964
143,985
40,666
Total Revenues
$12,833,243
$11,663,430
$8,119,834
$8,638,930
$7,857,612
. Expenditures -
General Goveroment
1,719,241
1,652,277
1,751-1546
1,660,752
1,797,504
Public Safety
6,274,151
5,593,090
5,941,095
5,510,761
4,761,875
Highways and Streets
1,885,569
1,438,570
1,438,927
1,427,977
1,427,049
Health
110,572
102,881
106,075
94,316
69,046
Community Services
46,295
42,141
42,556
42,328
35,5:.-
5,8:.Total
TotalExpenditures
$10,035,828
$8,828,959
$9,280,199
$8,736,134
$8,091,286
Revenue Over (Under)
Expenditures
$ 2,797,415
$2,834,471
($1,160,365)
($ 97,204)
($ 233,674)
Other Financing Sources
(Uses) (6)
i
(2,730,425)
(10,837)
65,925
(6,555)
205,872
Adjustments to Fund Balance
(3,000,000)(2)
(252,178 (3)
(565,864)(4) (505,559)(5)
--
Fund Balance
$3,050,463
$5,983,473
$3,412,017
$5,072,321
$5,6E:,6
5,6E,639(1)
(1)Compiled from audita of
Coopers and Lybrand,
Chicago, Illinois.
(2) Used to acquire Lake Michigan
water. Transferred
to Waterworks
and Beverage Fund during
Fiscal Year 1985.
(3) Adjustment for change ln.accounting
treatment
for
compensated absences for
Village employees.
(4) Adjustment for change in
accounting treatment
for
property taxes.
(5) Adustment for change in
accounting treatment
for
pmparty taxes and residual
equity transfer
(838,313) from Debt Service
Reserve Fund.
(6) Figure includes "operating
transfers" and issuance
of installment notes.
- 13 -
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- 14 -
Capital Improvement Program
The Village's "3 Year Capital Projects Program" for the Fiscal Years
1987-89 identifies capital projects and their associated costs for a
three year time horizon. The projects and financing needs contained in
this plan are detailed below:
CAPITAL PROJECTS PROGRAM
FOR THE FISCAL YEARS 1987, 1988, 1989
Fiscal
Cost
E.C.V.
Amount
Year
Protects
Estimate
Share
To Fund
1987
Municipal Building Addition
$5,000,000
100%
$5,000,000
-
Watermaln Replacement - Landmeir Road
300,000
100%
300,000
Drainage Ditch Cleaning - Industrial Park
100,000
100%
100,000
Nicholas Boulevard Reconstruction
2,000,000
100%
2,000,000
Railroad Crossing Repairs (8)
20,000
100%
20,000
Sanitary Sewer Rehab -S. Devon/W. Meacham
200,000
100%
200,000
Carriage walks -Remove & Relocate
200,000
100%
200,000
Traffic Signals:
Rohlwing/Biesterfield
110,000
100%
110,000
Devon/Ridge
150,000
25%
40.000
Total Estimate FY 1987
S 7.970.000
1988
Drainage Ditch Cleaning Program
100,000
100%
100,000
Pratt Avenue Reconstruction
2,500,000
100%
2,500,000
Carriage walks Program
200,000
100%
200,000
Ridge Avenue Life Station Rehabilitation
50,000
100%
50,000
Sanitary Force Main Replacement-Ridge/Laurel
300,000
100%
300,000
Tonne/Landmeier Intersection Improvement
300,000
50%
300,000
Touhy Avenue Life State Rehabilitation
70,000
100%
70,000
Traffic Signal Improvement-Higgins/Landmeier
150,000
25%
40,000
Intersection Improvement-Tonne/Devon
350,000
33%
120.000
Total Estimate FY 1988 (1)
S 3.530.000
1989
Interchange- 1290/Biesterfield
6,000,000
33%
2,000,000
Traffic Signal-Biesterfield/Beisner
150,000
100%
150,000
Drainage Ditch Cleaning Program
100,000
100%
100,000
Carriage Walks Program
200,000
100%
200.000
Total Estimate FY 1989 $ 2.450.000
Total Three Year Program $13,950,000
Note:
(1) Adjustment for Projects Completed in FY 1987
Tonne/Devon Intersection Improvement $3,530,000
Pratt Boulevard 165.000
$3,365,000
- 15 -
The "3 Year Capital Projects Program" was initially presented to the
Village Board in November, 1985 and adopted in April, 1986. The capital
spending budget was passed by the Village Board along with its operating
budget.
Cash and Investment
The two major sources of the Village's revenues are distributions
from state municipal sales taxes and collections of the Village's
property tax. Sales tax proceeds are received each month and real
property taxes are received as collected. See "REAL PROPERTY ASSESSMENT,
TAX LEVY AND COLLECTION PROCEDURES." Consistent with anticipated
operating cash needs, the Village invests the maximum amount of its
available funds in interest bearing securities. Investments are made in
accordance with Illinois statutes and consist of Certificates of Deposit
or U.S. Treasury Obligations. On April 30, 1985, approximately 99% of
such available funds were so invested. During Fiscal 1985 the Village's
interest receipts from such investments provided 5% of General Fund
Revenue.
Indebtedness
As a home rule community, the Village may issue an unlimited dollar
amount of general obligation debt. The Village became a home rule
community in October, 1974 and has issued no general obligation bonds
since that date. The Village had no general obligation debt outstanding
prior to the issuance of the Bonds. Several installment purchases, all
subject to annual appropriation, aggregate approximately $98,850
principal value. The Village has always paid principal and interest on a
timely basis on all of its General Obligation and Revenue Bonds.
- 16 -
Statement of Direct and Overlapping General Obligation Debt
(as of April 30, 1986)
n;rrrr nohr
Village of Elk Grove Village $9,750,000
Total Direct Debt $9,750,000
OverlaDDinz Debt
Total Overlapping Debt $26,268,675
Total Direct and Overlapping Debt $36,018,675
Sources: DuPage County Clerk's Office and Cook County Clerk's Office.
- 17 -
Applicable to
the Village
Outstanding
Taxing Body
Bonds
Percent (1)
Amount
Cook County
$290,550,000
1.816
$ 5,276,388
Cook County Forest Preserve District
24,650,000
1.816
447,644
Metropolitan Sanitary District
of Chicago
681,200,000
1.858
12,656,696
Elk Grove Village Park District
3,900,000
97.768
3,812,952
Mt. Prospect Park District
3,100,000
7.668
237,708
Schaumburg Park District
19,570,000
.863
168,889
School District #54
15,295,000
4.702
719,171
Elk Grove Rural Fire
Protection District
335,000
.478
1,601
Palatine High School District {211
8,455,000
2.747
232,259
Township High School District X1214
2,005,000
21.562
432,318
Community College District #512
2,000,000
13.208
264,160
DuPage County
17,609,000
.619
109,000
DuPage County Forest
Preserve District
68,335,000
.619
422,994
Bensenville Park District
1,160,000
6.997
81,165
Wood Dale Park District
575,000
17.376
99,912
School District #2
1,225,000
8.583
105,142
School District #7
175,000
19.452
34,041
High School District #100
8,985,000
12.228
1,098,686
Community College District #502
11,900,000
.571
671949
Total Overlapping Debt $26,268,675
Total Direct and Overlapping Debt $36,018,675
Sources: DuPage County Clerk's Office and Cook County Clerk's Office.
- 17 -
Debt Ratios and Per Capita Debt
Village Population (U.S. Census 1984) 30,416
Estimated True Market Value of Property $2,024,822,000
Assessed Valuation of the Property (1984)
Cook County 631,097,496
DuPage County 43,843,080
$ 674,940,576
True Value/Capita
$66,440
Direct Debt/True Value
0.48%
Assessed Value/Capita
22,147
Direct Debt/Assessed Value
1.44%
Direct Debt/Capita
320
Direct and Overlapping
Debt/True Value
1.78%
Direct and Overlapping
Direct and Overlapping
Debt/Capita
1,182
Debt/Assessed Value
5.34%
REAL
PROPERTY
ASSESSMENT, TAX LEVY
AND COLLECTION PROCEDURES
The information set forth under this caption relates to the
procedures for assessing real property and levying and collecting real
property taxes in Illinois. Separate taxes to pay principal of and
interest on the Bonds have been levied on all taxable property within the
Village. Most of the equalized assessed valuation of taxable property in
the Village is located in Cook County (the "County"). The remainder is
located in DuPage County. This Official Statement describes the
procedures in the County; DuPage County is substantially similar.
Assessment
The County Assessor (the "Assessor") is responsible for the
assessment of all taxable real property within the County except for
certain railroad property that is assessed directly by the State. One
quarter of the County is reassessed each year on a repeating quadrennial
schedule established by the Assessor.
Property in the County is separated into eight classifications for
assessment purposes. After the Assessor establishes the fair market
value of a parcel of land, that value is multipled by one of the
classification percentages to arrive at the assessed valuation (the
"Assessed Valuation") for that parcel. The classification percentages
range from 16' for certain residential, commercial and industrial
property to 40°; for other commercial and industrial property.
The Assessor has established procedures enabling taxpayers to
contest their Assessed Valuation set by the Assessor. Taxpayers can also
petition for review of their assessments by the Cook County Board of
(Tax) Appeals. In addition, limited judicial review of assessments is
available during the collection process when the County Collector
presents the Warrant Books (as defined below) to the Circuit Court for
judgment.
- 18 -
Equalization
After the Assessor has established the Assessed Valuation for each
parcel for a given year, and following any revisions by the Cook County
Board of (Tax) Appeals, the Illinois Department of Revenue is recjuired by
statute to review the Assessed Valuations. The Department of Revenue
establishes an equalization factor (the "Equalization Factor"), commonly
called the "multiplier," for each county to make all valuations uniform
among the 102 counties in the State. Under State law, the aggregate of
the assessments within each county is to be equalized at 33 1/3% of
estimated fair market value of the real property located within the
county prior to any applicable exemptions.
Once the Equalization Factor is established, the Assessed Valuation
for each parcel determined by the Assessor, as revised by the Board of
(Tax) Appeals, is multiplied by the Equalization Factor to Determine the
equalized assessed valuation of that parcel. The Equalization Factor for
1984 taxes collected in 1985 was 1.8445. The equalized assessed
valuation for each parcel is the final property valuation used for
determination of tax liability. The aggregate equalized assessed
valuation for all parcels in any taxing body's jurisdiction, plus the
valuation of certain railroad property assessed directly by the State,
constitutes the total real estate tax base for that taxing body and is
the figure used to calculate tax rates.
Equalized Assessed Valuation Exemptions
The Annual Homestead Exemption provides that the equalized assessed
valuation of certain property owned and used exclusively for residential
purposes may be reduced for 1979 and subsequent years by the amount of
any increase over the 1977 equalized assessed valuation, up to a maximum
reduction of $3,500 beginning with the 1983 equalized assessed
valuation. Additional exemptions exist for (i) senior citizens, whereby
the Assessor may annually reduce the equalized assessed valuation on a
senior citizen's home by $2,000, and (ii) disabled veterans, whereby the
Assessor may annually exempt up to $30,000 of the Assessed Valuation of
property owned and used exclusively by such veterans for residential
purposes. The Homestead Improvement Exemption allows owners of single
family residences to make up to $30,000 in home improvements without
increasing the Assessed Valuation of their property for at least four
years.
Tax Increment Financinft
i Municipalities are permitted to issue tax increment bonds to finance
costs of redevelopment of vacant or blighted areas. Upon the issuance of
any tax increment bonds, all tax revenues resulting from increases in the
equalized assessed valuation of property in such redevelopment areas
could be pledged to the tax increment bonds. Those revenues would not,
accordingly, be available to pay debt service on the Bonds. However,
taxes levied to pay debt service on the Bonds must nevertheless be
extended at rates sufficient to produce amounts to pay the principal of
the Bonds at maturity and the interest on the Bonds when due. No tax
increment bonds have as yet been issued by the Village.
- 19 -
Tax Levy
There are over six hundred units of local government in whole or in
part in the County having taxing powers (the "Units"). The major Units
having taxing power over property within the Village are the Village,
School District No. 54, High School Districts Nos. 211 and 214, Community
College District No. 502, the Metropolitan Sanitary Distric of Greater
Chicago, the County and the Forest Preserve District of Cook County.
As part of the annual operating budgetary process of the Units,
ordinances are adopted by the designated body for each Unit in each year
in which they determine to levy real estate taxes. These tax levy
ordinances impose their respective real estate taxes in terms of a dollar
amount. Each unit certifies its real estate tax levy, as established by
ordinance, to the County Clerk's Office. The remaining administration
and collection of the real estate taxes is statutorily assigned to the
County Clerk and the County Treasurer.
After the Units file their annual tax levies, the County Clerk
computes the annual tax rate for each Unit by dividing the levy of each
Unit by the equalized assessed valuation of the respective Unit. If any
tax rate thus calculated exceeds any applicable statutory rate limit, the
County Clerk disregards the excessive rate and applies the maximum rate
permitted by law. (Taxes levied for debt service on the Bonds are not
subject to any statutory rate limit.)
The County Clerk then computes the total tax rate applicable to each
parcel of real property by aggregating the tax rates of all of the Units
having jurisdiction over the particular parcel. The County Clerk enters
the tax determined by multiplying that total tax rate by the equalized
assessed valuation of that parcel in the books prepared for the County
Collector (the "Warrant Books") along with the tax rates, the Assessed
Valuation and the equalized assessed valuation. The Warrant Books are
the Collector's authority for the collection of taxes and are used by the
Collector as the basis for issuing tax bills to all property owners.
The Illinois Truth in Taxation Act imposes procedural limitations on
a Unit's real estate taxing powers. Under the Illinois Truth in Taxation
Act, notice in prescribed form must be published if the aggregate annual
levy (exclusive of debt service levies) is estimated to exceed 105% of
the levy of the preceding year, exclusive of election costs. A public
hearing must also be held, which may be in conjunction with the budget
hearing of the taxing district. No amount in excess of 105% of the
preceding year's levy may be extended unless the levy is accompanied by a
certification of compliance with the foregoing procedures. (The Illinois
Truth in Taxation Act does not impose any limitation on the rate or the
amount of the levies extended to pay principal of and interest on the
Bonds.)
- 20 -
Collection
Property taxes are collected by the Cook County Collector, who is
also the Cook County Treasurer, who remits to each Unit its share of the
collections. Taxes levied in one year become payable during the
following year in two installments, the first due on March 1 and the
second on the later of August 1 or 30 days after the mailing of the tax
bills. The first installment is an estimated bill, and is one-half of
the prior year's tax bill. The second installment is based on the
current levy, assessment and equalization, and reflects any changes from
the prior year in those factors. Taxes on railroad real property used
for transportation purposes are payable in one lump sum on the same date
as the second installment.
During the periods of peak collections, tax receipts are forwarded
to each Unit on a daily basis.
At the end of each collection year, the Collector presents the
Warrant Books to the Circuit Court, and applies for a judgment for all
unpaid taxes. The court order resulting from that application for
judgment provides for a sale of all property with unpaid taxes shown on
that year's Warrant Books. A public sale is held, at which time
successful bidders pay the unpaid taxes plus penalties. Unpaid taxes
accrue penalties at the rate of 1.5% per month from their due date until
the date of sale. Taxpayers can redeem their property by paying the tax
buyer the amount paid at the sale, plus a maximum of 18 percent for each
six month period after the sale. If no redemption is made within two
years, the tax buyer receives a deed to the property. In addition, there
are miscellaneous statutory provisions for foreclosure of tax liens.
Delay in Tax Collections
Since 1973 the first installment due date has been March 1. Delays
in certifying the final Equalization Factor or, occasionally, litigation,
have delayed sending out the second installment tax bills and have
correspondingly extended the second installment due date. The following
table shows the second installment due dates in the County in recent
years:
Year of
Leery
Second Installment
Due Date
1984 ..............................
August 30,
1985
1983 ..............................
August 20,
1984
1982 ..............................
August 15,
1983
1981 ..............................
August 6,
1982
1980 ..............................
October 1,
1981
- 21 -
The following tables provide statistical data regarding the
Village's real property tax base and comparative tax rates of certain
major local governmental units.
Village of Elk Grove Village, Illinois
Elk Grove Township Typical Tax Raise Per 5100 of Assessed Valuation
C tai Bodv
�,�4
�99.L
981
.1409_
-
-
�.8
'�L
-304
'!16%
61
Caok County
.929
.907
.820
41
790
44
.681
.106
.fi1B
.095
..66
.094
Forest Preserve
.118
.116
.117
.107
.104
.101
.100
Elk Grave Township:
.072
.077
.080
.067
.065
.045
Town
General A'sistsnc*
.057
-
.037
.021
.036
.024
.051
.013
.016
-
-
-
.018
.030
.046
.030
.047
Road and Bridge
Suburban TB Sanitarium
.013
.012
.014
.012
.014
.012
.015
.013
.043
.014
.094
.016
.018
.038
.022
.021
.011
Northwest Most. Abatement
.016
.016
.016
.015
.016
.016
All
.016
.017
.018
Metropolitan Sanitary District
.694
.715
.664
.643
.551
.607
.592
.534
.484
.390
village of Elk Grove Village
.563
.719
.671
.419
.579
.719
.801
.946
-
.950
.645
Eik Grove Village Public Library (1)
.228
-
-
-
-
.357
.372
.299
Elk Grove Village Park District
.362
.356
1.887
.324
1.918
.111
1.897
.350
2.346
.343
2.544
.385
2.519
2.542
2.602
2.588
School District #59
1.678
2.071
2.050
1.934
1.763
2.147
2.245
2.298
2.394
2.397
2.289
High School District #214
Community College District #512
176
.197
.188
.194
.219
.201
.213
.215
.218
.221
Total Tax Bill (2)
6.917
7,037
6.738
6.182
7,247
7+611
7,700
7+859
2`25
7,233
Source: Cook County Clark's Office.
Note:
(ll Prior to 1984 the Elk Grove Village Public
Library was
included
in the
Village
of Elk Grove
Village tax
raise.
(2) The Village of Elk Grove Village
is situated in
part of
two counties, Cook and
Du Page,
and three
townships,
Addison, Schaumburg, and Elk Grove. The
total
to. rate
for a taxpayer
is determined by
the taxing
agencies
located in the county and township
in which
the
property is situated.
Village of Elk Grove Village, Illinois
Schaumburg Township Typical Tax Rates Per S100 of Assessed Valuation
Governmental eodv 1984 1987 1982 1961 1980 1979_ 197D 1911 1976 7915
Cook County ,929 907 .620 .741 .790 4Y .tial .604 .618 566
Forest Preserve .118 .116 .117 .107 .104 .101 .100 .106 .095 .094
Schaumburg Township:
Town (1) ,063 .061 .026 .255 .288 .320 .252 .257 .253 .248
General Assistance .011 .010 .003 .003 .007 .020 .028 .034 .049 .048
Road and Bridge ,014 .029 .039 .057 .077 .104 .093 .069 .029 .030
Library (1) ,281 .230 .223
Suburban TB Sanitarium .012 .012 .012 .013 .014 .018 .018 .022 .021 .011
Metropolitan Sanitary District .694 .715 .664 .643 .551 .607 .592 .534 .484 .390
Northwest Most. Abatement .016 .016 .016 .015 .016 .018 .013 .016 .017 .018
Village of Elk Grove Village .563 .719 .671 .419 .579 .719 .801 .946 .950 .645
Elk Grove Village Park District .362 .356 .324 .311 .350 .343 .385 .357 .372 .299
School District #54 3.306 2.614 2.604 2.667 2.818 2.675 2.852 2.693 2.841 2.781
High School District #211 2.352 2.356 2.037 1.812 2.040 2.281 2.424 2.422 2.539 2.618
Community College District #512 .176 .197 .188 "194 .219 .207 .213 .215 JIB .221
Total Tax 8111 (2) 8.897 8.335 7.744 7.237 7,853 8.257 8.452 8.275 8.486 7.969
Source: Cook County Clerk's Office.
Note:
(1) Library included in town rate prior to 1982.
(2) The Village of Elk Grove Village is situated in part of two counties, Cook and Outage, and three township',
Addison, Schaumburg, and Elk Grove. The total tax rate for a taxpayer is determined by the taxing agencies
located in the county and township in which the property is situated.
- 22-
1
VII U9e of Elk Crvq Village,
Illinois
Asalss:r V<Iw an Estimated Trua
V.I..
•
of all Taxable "Party
(1)
Last rve $itch Year&
Vils."
Eat. as led
jl
R fro
Ra' road
lrooerty Total
True Valve
it lmvv Yeer
Coo, Du9ao
Total Coot Qu9,gt Total
1960
$443,406,454 $3!.201.637
5461,608,091 $32,502
- $32.502 6481.640,593
61,376,115,9!0
1911
601,213.316 42.256,56'
643,469,665 36,115
- 36.115 643,508,020
, 836,544, )4e
1149:.046.5B9
1982
64 B.BB4,662 44,229,707
692.614,369 3).944
- 3).944 692,652.313
1,9)9,D06.5B9
1963
640.087,510 43,566,390
681,675.920 16,903
- 38,903 683,714,823
1,953,470,923
1984
631,040,196 41.843,080
674,683,278 $7,296
57.298 674,940.576
1,978,691.391
Alot,, l
(1) The State
of Illinois DeO,rtment Of
Revenve it repUirad by lsV
to aXawin! the ....a... nt RrodadU Mt in ..on C.Ynty end
Yke ad,lustments
for O.M.-I,. ttseueent bvel s. this is dons
by aatign roq an feet., to tn! sss<sset
Va1Va
a, da to M�n10 by the IndiYld Yat ... ht,Th< IpYa 11210 atalated VIIVa It than Vted by the Caunty t. a9Ma0 the
U. "V), and tat tax retail. The lueuad value anoxh .n this exhibit is the, 1pw llxed auewad Valu..
6.0 Me:
Was, County Clork't Office
and Cook Codnty Aatataor's Office.
'j
1
s
i
Tax Extensions and Current
Collections
i
Fiscal
Fiscal
Collections Percentage
of
Year of
Year of
Total Tax
of Current Current Year's
Tax Levy
Collections
Levy
Year's Levy Levy
Collected
1975
1976
$2,035,939
$1,921,878
94.40°
1976
1977
2,163,823
1,970,376
91.06
1977
1978
3,465,039
3,050,214
88.03
1978
1979,
4,097,488
3,630,623
88.61
1979
1980
3,891,282
3,474,204
89.28
1980
1981
3,325,505
3,117,356
93.74
1981
1982
2,800,200
2,786,802
99.52
1982
1983
2,745,300
2,703,150
98.46
1983
1984
4,717,743
4,646,783
98.50
1984
1985
4,972,036
4,971,053
99.98
t
-23 -
Breakdown of 1984 Equalized Assessed Valuation
Component Valuation Percent
Residential $107,660,025 15.95%
Commercial 43,322,451 6.42%
Industrial 523,891,275 77.62%
Farms 9,527 0.00%
Railroad 57.298 0.01%
Total $674,940,576 100.00%
RATINGS
Moody's Investors Service, Inc. ("Moody's"), 99 Church Street, New
York, New York 10007, has assigned the rating set forth on the front
cover to the Bonds. Certain information was supplied by the Village to
Moody's to be considered in evaluating the Bonds. The rating expresses
only the view of Moody's, and an explanation of its significance may be
obtained only from Moody's. There is no assurance that such rating will
continue for any period of time or that it will not be revised or
withdrawn. A revision or withdrawal of the rating may have an adverse
effect on the market price of the Bonds.
LITIGATION
The Village is not a party to, nor has it been threatened with, any
litigation concerning the Bonds or the Ordinance. At the time of
delivery of the Bonds, the Village will certify that there is no
litigation or other proceeding pending or, to the knowledge of the Agency
threatened, in any court, agency or other administrative body (either
state or federal) restraining or enjoining the issuance, sale or delivery
of the Bonds, or in any way questioning or affecting (i) the proceedings
under which the Bonds are to be issued, (ii) the validity of any
provision of the Bonds or the Ordinance, (iii) the levy, extension or
collection of the taxes levied and pledged to the payment of the
principal of and interest on the Bonds or (iv) the legal existence of the
Village or the title to office of the present officials of the Village.
LEGALITY
Issuance of the Bonds is subject to the delivery of an approving
legal opinion by Isham, Lincoln & Beale, Chicago, Illinois, Bond Counsel,
in the form set forth as Appendix A. A copy of the approving legal
opinion will be printed on each Bond.
- 24 -
TAX EXEMPTION
In the opinion of Isham, Lincoln and Beale, Chicago, Illinois,
interest on the Bonds is exempt from federal income taxes under existing
law as of the date of original delivery of the Bonds. Interest on the
Bonds is not exempt from Illinois income taxes.
PENDING FEDERAL TAX LEGISLATION
On December 17, 1985, the United States House of Representatives
passed the Tax Reform Act of 1985, H.R. 3838 (the bill in that form is
referred to as "H.R. 3838"). H.R. 3838 is currently pending in the
United States Senate. H.R. 3638 would make substantial changes in
federal income tax law. Certain of those changes relate to the
tax-exempt status of interest on bonds issued by state and local
governments on or after January 1, 1986. H.R. 3838 would establish
various additional requirements which, if applicable, would have to be
met in order for interest on the Bonds to be exempt from federal income
taxes. Among these is a requirement that the Village spend not less than
5% of the net proceeds of the Bonds within 30 days of their date of
issuance. Under H.R. 3838 the failure of the Village to comply with
these requirements could result in interest on the Bonds being taxable,
retroactive to the date of issuance of the Bonds.
On March 14, 1986, the Chairmen and ranking members, respectively, of
the Senate Finance Committee and the House Ways and Means Committee and
the Secretary of the Treasury issued a joint statement (the "Joint
Statement") endorsing a postponement of the effective date of certain
provisions of H.R. 3838 to the earlier of September 1, 1986 or the date
of its enactment. Under the Joint Statement, the provisions of H.R. 3838
relating to expenditure within 30 days of issuance and certain other
requirements would not apply to Bonds issued prior to the earlier of
September 1, 1986 or the date of enactment of the legislation.
Upon the delivery of the Bonds, Bond Counsel is to deliver its
additional opinion to the effect that, if the effective date of the
11 provisions of H.R. 3838 referred to in the Joint Statement is subsequent
to the issuance of the Bonds, interest on the Bonds is exempt from
federal income taxes under existing law, as it would be amended by
H.R. 3838 with such an effective date as to those provisions. The
` additional opinion of Bond Counsel, however, will be to the effect that,
f if the Bonds are held by property and casualty insurance companies,
interest on the Bonds may be subject, under the provisions of H.R. 3838,
to what is, in effect, a minimum tax for taxable years beginning after
1987.
The United States Senate has referred H.R. 3838 to its Finance
Committee. On March 18, 1986, the Chairman of the Finance Committee
released a set of proposals ( the "Chairman's Proposal"), to serve as a
starting point for the Finance Committee's consideration of H.R. 3838.
- 25 -
One aspect of the Chairman's Proposal would include interest on all
existing and future bonds issued by state and local governments as a
preference item to be included in calculating an alternative minimum tax
for corporate and individual taxpayers.
On March 24, 1986, the Senate Finance Committee agreed to work from
the Chairman's Proposal in considering tax reform legislation, but agreed
that any decision made by the Finance Committee on whether to include
interest on state and local government bonds as a preference item with
respect to an alternate minimum tax would apply only to bonds issued
after 1986. Wke+tee n+ V -114)e c.. er ."It `."riy
There can be no assur nce as to what, if any, federal tax legislation
ultimately may be enacted and what effect, if any, may be on t e
taxability of interest on the Bonds
o "s.�
MISCELLANEOUS e%,g/.f+a.,
The covenants and agreements of the Village with the holders of the
Bonds are fully set forth in the Ordinance and reference is made to the
Ordinance for a definitive statement of the rights and obligations of the
Bondholders and the Village.
Neither this Official Statement nor any statement which may have been
made orally or in writing is to be construed as a contract with the
holders of any of the Bonds.
Any statement contained in this Official Statement involving matters
of opinion, whether or not expressly so stated, is intended as such and
not as a representation of fact.
The execution and delivery of this Official Statement has been duly
authorized by the Village.
May 1, 1986
VILLAGE OF ELK GROVE VILLAGE, ILLINOIS
/s/ Charles J. Zettek
Village President
ZWT-�
r
Form of Opinion of Bond Counsel
Gentlemen:
Appendix A
We have examined a certified copy of the transcript of proceedings
and accompanying certificates relating to the issuance of $9,750,000
aggregate principal amount of Corporate Purpose Bonds, Series 1985 (the
"Bonds"), of the Village of Elk Grove Village, Cook and DuPage Counties,
Illinois (the "Village"). The Bonds are initially dated May 1, 1986 and
mature on the dates and in the amounts and bear interest at the rates per
year as follows:
Maturing
(December 1) Amount Maturing
1988
$255,000
1989
265,000
1990
280,000
1991
300,000
1992
315,000
1993
335,000
1994
360,000
1995
380,000
1996
405,000
1997
435,000
1998
465,000
1999
495,000
2000
530,000
2001
570,000
2002
610,000
2003
650,000
2004
695,000
2005
745,000
2006
800,000
2007
860,000
Interest Rate
Interest on the Bonds is payable on June 1 and December 1 in each year,
with the first interest payment date being December 1, 1986. Bonds
maturing on or after December 1, 1996 are subject to redemption at such
times and upon such terms as are stated in the Bonds. We have also
examined executed Bond number 1.
E,
Based upon our examination of the certified copy of the transcript
of proceedings, the accompanying certificates and the Bond referred to
above, it is our opinion that the Bonds are valid and legally binding
' general obligations of the Village in accordance with their terms,
payable from ad valorem taxes levied against all of the taxable property
in the Village without limitation as to rate or amount.
We are further of the opinion that interest on the Bonds is exempt
from federal income taxes under existing law.
Very respectfully yours,
i
EXHIBIT C
UNITED STATES OF AMERICA
STATE OF ILLINOIS COUNTIES OF COOK AND DUPAGE
VILLAGE OF ELK GROVE VILLAGE
CORPORATE PURPOSE BOND, SERIES 1985
Bond No. R
Registered Owner:
Principal Amount: $
Interest Rate:
Date of Maturity:
The Village of Elk Grove Village, Cook and DuPage
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 American
National Bank and Trust Company of Chicago, Chicago, Illinois
(the "Paying Agent") 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 below to the date of payment of this bond,
payable semiannually on June 1 and December 1, with the first
interest payment date being December 1, 1986. 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 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 next
preceding that interest payment date. The principal of and
interest on this bond are payable in lawful money of the United
States of America. No interest shall accrue on this bond after
its Date of Maturity unless this bond shall have been presented
for payment at maturity and shall not then have been paid.
This bond is one of an authorized issue of bonds in
the aggregate principal amount of $9,750,000, the proceeds of
which are to be used for corporate purposes of the Village as
described in the Ordinances of the Village authorizing the
issuance of this bond and the issue of bonds of which it is a
part (the "Ordinances"). This bond was issued in accordance
with the Illinois Constitution and pursuant to the Ordinances.
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 Ordinances. 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 maturing on December 1 of each of the years 1988
through 1995, inclusive, are not redeemable prior to their
maturity.
C-2
Bonds maturing on December 1 of each of the years 1996
through 2007, inclusive, are redeemable prior to their maturity
at the option of the Village, in whole or in part, on any
interest payment date on or after December 1, 1995, at a
redemption price equal to their principal amount plus in each
case accrued and unpaid interest to the date of redemption.
If less than all the Bonds of any maturity are to be
redeemed on any redemption date, the Bond Registrar described
below will assign to each Bond of the maturity to be redeemed a
distinctive number for each $5,000 of principal amount of that
Bond. The Bond Registrar will then select by lot from the
numbers so assigned, using such method as it shall deem proper
in its discretion, as many numbers as, at $5,000 per number,
shall equal the principal amount of Bonds of that maturity to
be redeemed.
Notice of the redemption of any Bonds, which by their
terms shall have become subject to redemption, will be given to
the registered owner of each Bond called for redemption in
whole or in part not less than 30 or more than 60 days before
any date established for redemption of Bonds, by the Bond
Registrar, on behalf of the Village, by registered or certified
mail sent to the registered owner's last address, if any,
appearing on the registration books kept by the Bond Regis-
trar. In the case of a Bond to be redeemed in part only, the
C-3
C
notice will specify the portion of the principal amount of the
Bond to be redeemed. The mailing of the notice specified above
to the registered owner of any Bond will be a condition prece-
dent to the redemption of that Bond, provided that any notice
which is mailed in accordance with the Ordinances will be con-
clusively presumed to have been duly given whether or not the
owner received that notice. The failure to mail notice to the
owner of any Bond, or any defect in that notice, shall not
affect the validity of the redemption of any other Bonds.
This bond is negotiable, subject to the following pro-
visions for registration and registration of transfer. The
Village maintains books for the registration and registration
of transfer of Bonds at the principal corporate trust office of
the Bond Registrar appointed in the Ordinances of the Village
authorizing the sale of the Bonds. 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 registration of transfer, a new bond
or bonds in the same aggregate principal amount and of the same
maturity will be issued to the transferee as provided in the
Ordinances.
:�I
J
This bond may be exchanged, at the option of the
registered owner, for an equal aggregate principal amount of
bonds of the same maturity of any other authorized denomina-
tions, 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
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 pay-
ment of that charge by the person requesting exchange or regis-
tration 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 condition prece-
dent 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 after notice of redemption of
that Bond or any portion of that Bond has been mailed, or
during the 15 days next preceding mailing of a notice of
redemption of Bonds.
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
C-5
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 obli-
gation of the Village on this bond to the extent of the amount
paid.
All conditions which by law must have existed or must
have been fulfilled in the issuance of this bond existed and
were fulfilled in compliance with law. Provision has been made
for the levy 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 resolu-
tion of the Village. The Bonds are issued for purposes for
which the Village is authorized by law to issue bonds including
to pay costs of the Village for public works improvements and
extensions and to pay 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.
19
IN WITNESS WHEREOF, the Village of Elk Grove Village,
Cook and DuPage Counties, Illinois, by its President and Board
of Trustees, has caused this bond to be executed by the manual
or facsimile signature of its President and the manual 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
Bond specified below.
Date of Bond:
(SEAL)
ATTEST:
Patricia S. Smith
Village Clerk
VILLAGE OF ELK GROVE VILLAGE,
ILLINOIS
By Charles T ZPttek
President
C-7
Date of Authentication:
This bond is one of the bonds described in the Ordi-
nances authorizing the issuance of $9,750,000 Village of Elk
Grove Village Corporate Purpose Bonds, Series 1985.
American National Bank and Trust
Company of Chicago,
Authenticating Agent
Authorized Officer
For Value Received, the undersigned sells, assigns and
transfers to this bond and all
rights and title under this bond, and irrevocably constitutes
and appoints attorney to
transfer this bond on the books kept for registration of this
bond.
Dated: