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HomeMy WebLinkAboutOrdinances - ORD-12-1599 - 08/27/2012 - ISSUE GO BONDS SERIES 2012 AND PROVIDE FOR LEVY ANORDINANcF NUMBER ORD-12-1599 AN ORDNANCE providing for the issuance of $3, 100,000 General Obligation Bonds, Series 2012, of the City of McHenry, McHenry County, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. Adopted by the City Council on the 27th day of August, 2012. TABLF OF CONTFNTS SECTION HEADING PAGE PREAMBLES 1 SECTION 1. DEFINITIONS 2 SECTION 2. INCORPORATION OF PREAMBLES 4 SECTION 3. DETERMINATION TO ISSUE BONDS 4 SECTION 4. BOND DETAILS 4 SECTION 5. GLOBAL BooK-ENTRY SYSTEM ............................................................... 6 SECTION 6. EXECUTION; AUTHENTICATION .......................................................................... 8 SECTION 7. TERM BONDS, MANDATORY REDEMPTION AND COVENANTS ............................. 8 SECTION 8. OPTIONAL REDEMPTION ................................................................................... 10 SECTION 9. TERM BONDS PURCHASE OR REDEMPTION ....................................................... Io SEC'rfON 10. REDEMPTION PROCEDURE ................................................................................ 10 SECTION 11. REGISTRATION AND ExCHANGE OR TRANSFER OF BONDS; PERSONS TREATED AS OWNERS .................................................................. 13 SECTION12. FORM OF BOND ................................................................................................. 15 SECTION13. TAx LEVY ......................................................................................................... 22 SECTION 14. FILING WITH COUNTY CLERK ........................................................................... 24 SECTION15. SALE OF BONDS ......................................... .............................. ....................... 24 SECTION 16. CREATION OF FUNDS AND APPROPRIATIONS ..................................................... 25 -i- SECTION 17. GENERAL ARBITRAGE COVENANTS .................................................................. 26 SECTION 18. REGISTERED FORM ........................................................................................... 28 SECTION 19. RIGHTS AND DUTIES OF BOND REGISTRAR AND PAYING AGENT ...................... 28 SECTION20. DEFEASANCE .................................................................................................... 29 SECTION 21. CONTINUING DISCLOSURE UNDERTAKING ........................................................ 29 SECTION 22. PUBLICATION OF ORDINANCE ........................................................................... 30 SECTION 23. REcoRD-KEEPiNG POLICY AND POST -ISSUANCE COMPLIANCE MATTERS.................................................................................................... 30 SECTION24. SEVERAWLITY .................................................................................................. 31 SECTION 25. SUPERSEDER AND EFFECTIVE DATE .................................................................. 32 ORDINANCE NUMBER ORD-12-1599 AN ORDiNANcE providing for the issuance of $3,100,000 General Obligation Bonds, Series 2012, of the City of McHenry, McHenry County, Illinois, and providing for the levy and collection of a direct annual tax sufficient for the payment of the principal of and interest on said bonds. WHEREAS by virtue of its population, the City of McHenry, McHenry County, Illinois (the "City'), and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the City is a home rule unit and may exercise any power or perform any fimction pertaining to its government and affairs including, but not limited to, the power to tax and to incur debt; and W14EREAS pursuant to the provisions of said Section 6, the City has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within 40 years from the time it is incurred without prior referendum approval; and WHEREAS the City Council has considered the needs of the City and has heretofore determined and does hereby determine that it is advisable, necessary and in the best interests of the City to construct various capital improvements, including (without limitation) improvements to the City's Water Treatment Facilities and HVAC systems (all of such improvements to be the "Series 2012 Project " or "Project "); and WHEREAS the estimated cost to the City of the Series 2012 Project is the sum of $3,100,000 plus any estimated available amount of interest earnings on said sum prior to its expenditure; and WHEREAS there are insufficient funds on hand and available to pay the costs of the Series 2012 Project, and it is necessary for that purpose that a sum to pay such costs be borrowed at this time, and in evidence of such indebtedness, General Obligation Bonds of the City be issued in the principal amount of $3,100,000, and that such indebtedness be incurred in accordance with the Act as hereinafter defined, and without sub"tting the question of incurring such indebtedness to the electors of the City for their approval; and WHEREAs the City Council does hereby determine that it is advisable and in the best interests of the City to borrow $3,100,000 at this time pursuant to the Act for the purpose of paying the costs of the Series 2012 Project arid, in evidence of such borrowing, issue its full faith and credit bonds in the principal amount of $3,100,000; Now THEREFoRE Be It Ordained by the City Council of the City of McHenry, McHenry County, Illinois, in the exercise of its home rule powers and in accordance with the Enabling Ordinance, as follows: Section 1. Definitions. In addition to such other words and terms used and defined in this Ordinance, the following words and terms used in this Ordinance shall have the following meanings, unless, in either case, the context or use clearly indicates another or different meaning is intended: "Act" means, collectively, the Illinois Municipal Code, as supplemented and amended, the home rule powers of the City under Section 6 of Article VII of the Illinois Constitution of 1970 and the Enabling Ordinance adopted pursuant to such home rule powers; and, in the event of conflict between the provisions of said code and home rule powers, the home rule powers shall be deemed to supersede the provisions of said code. "Bond" or "Bonds" means one or more, as applicable, of the $3,100,000 General Obligation Bonds, Series 2012, authorized to be issued by this Ordinance. "Bond Fund" means the Bond Fund established and defined in Section 16 of this Ordinance. "Bond Moneys" means the Pledged Taxes and any other moneys deposited into the Bond Fund and investment income earned in the Bond Fund. -2- "Bond Register" means the books of the City kept by the Bond Registrar to evidence the registration and transfer of the Bonds. "Bond Registrar" means The Bank of New York Mellon Trust Company, National Association, Chicago, Illinois, a national banking association having trust powers, or a successor thereto or a successor designated as Bond Registrar hereunder. "City" means the City of McHenry, McHenry County, Illinois. "City Council" means the City Council of the City. "Code" means the Internal Revenue Code of 1986, as amended. "County Clerk" means the County Clerk of The County of McHenry, Illinois. "Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and passed by the City Council on the 27th day of August, 2012. "Paying Agent" means The Bank of New York Mellon Trust Company, National Association, Chicago, Illinois, a national banking association having trust powers, or a successor thereto or a successor designated as Paying Agent hereunder "Pledged Taxes" means the taxes levied on the taxable property within the City sufficient to pay principal of and interest on the Bonds as made in Section 13 hereof. "Project" or "Series 2012 Project" means the City's various capital improvement projects as described and defined as such in the preambles to this Ordinance. "Tax-exempt" means, with respect to the Bonds, the status of interest paid and received thereon as excludable from the gross income of the owners thereof under the Code for federal income tax purposes. "Term Bonds" means Bonds subject to mandatory redemption by operation of the Bond Fund and designated as term bonds herein. -3- Section 2. Incorporation of Preambles. The City Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Determination to Issue Bonds. It is necessary and in the best interests of the City to construct the Series 2012 Project, to pay all related costs and expenses incidental thereto, and to borrow money and issue the Bonds for such purposes. It is hereby found and determined that such borrowing of money is necessary for the welfare of the government and affairs of the City, is for a proper public purpose or purposes and is in the public interest, and is authorized pursuant to the Act; and these findings and determinations shall be deemed conclusive. Section 4. Bond Details. For the purpose of providing for such costs, there shall be issued and sold the Bonds in the principal amount of $3,100,000. The Bonds shall each be designated "General Obligation Bond, Series 2012 "; be dated September 11, 2012 (the "Dated Date"); and shall also bear the date of authentication thereof. The Bonds shall be in fully registered form, shall be in denominations of $5,000 or integral multiples thereof (but no single Bond shall represent principal maturing on more than one date), shall be numbered consecutively in such fashion as shall be determined by the Bond Registrar, and shall become due and payable (subject to right of prior redemption as hereinafter set forth) on December 15 of the years and in the amounts and bearing interest at the rates percent per annurn as follows: El YEAR AmouNT ($) RATE (%) 2013 120,000 2.00 2014 145,000 2.00 2015 145,000 2.00 2016 145,000 2.00 2017 150,000 2.00 2018 155,000 2.00 2019 155,000 2.00 2020 155,000 2.00 2022 325,000 2.00 2024 345,000 2.10 2026 M5,000 2.35 2028 325,000 2.50 2030 275,000 2.70 2032 295,000 2.80 Each Bond shall bear interest from the later of its Dated Date as herein provided or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of such Bond is paid or duly provided for, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on June IS and December IS of each year, commencing on June 15, 2013. Interest on each Bond shall be paid by check or draft of the Paying Agent, payable upon presentation thereof in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the applicable Record Date (the "Record Date"), and mailed to the registered owner of the Bond as shown in the Bond Register or at such other address furnished in writing by such Registered Owner. The Record Date shall be the lst day of the month of any regular or other interest payment date occurring on the 15th day of any month and 15 days preceding any interest payment date occasioned by the redemption of Bonds on other than the 15th day of a month. The principal of or redemption price due on the Bonds shall be payable in lawful money of the United States of America upon presentation thereof at the principal corporate trust off -ice of the Paying Agent in the City of Chicago, Illinois, or at successor Paying Agent and locality. -5- Section 5. Global Book -Entry System. The Bonds shall be initially issued in the form of a separate single fully registered Bond for each of the maturities of the Bonds as provided in Section 4 hereof, and the ownership of each such Bond shall be registered in the Bond Register in the name of Cede & Co., or any successor thereto ("Cede"), as nominee of The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). All of the outstanding Bonds shall be registered in the Bond Register in the name of Cede, as nominee of DTC, except as hereinafter provided. The Mayor, Treasurer and Clerk of the City are hereby authorized to execute and deliver on behalf of the City such letters to or agreements with DTC and the Bond Registrar as shall be necessary to effectuate such book -entry system (any such letter or agreement being referred to herein as the "Representation Letter"). With respect to the Bonds registered in the Bond Register in the name of Cede, as nominee of DTC, the City and the Bond Registrar shall have no responsibility or obligation to any broker -dealer, bank or other financial institution for which DTC holds Bonds from time to time as securities depository (each such broker -dealer, bank or other financial institution being referred to herein as a "DTC Participant") or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Bond Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to principal of or interest on the Bonds. The City and the Bond Registrar may treat and consider the person in whose name each Bond is registered in the Bond Register as 0 the holder and absolute owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of and interest on the Bonds only to or upon the order of the respective registered owners of the Bonds, as shown in the Bond Register, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of a Bond as shown in the Bond Register, shall receive a Bond certificate evidencing the obligation of the City to make payments of principal and interest with respect to any Bond. Upon delivery by DTC to the Bond Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede, the name "Cede" in this Ordinance shall refer to such new nominee of DTC. In the event that (i) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (ii) the agreement among the City, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated for any reason or (iii) the City determines that it is in the best interests of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC Participants of the availability through DTC of Bond certificates and the Bonds shall no longer be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC. At the time, the City may determine that the Bonds shall be registered in the name of and deposited with such other depository operating a global book -entry system, as may be acceptable to the City, or such depository's agent or designee, and if the City does not select such alternate global book -entry system, then the Bonds may be registered in whatever name or names -7- registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with the provisions of Section 11 hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. Section 6. Execution; Authentication. The Bonds shall be executed on behalf of the City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, as they may determine, and shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the City. In case any such officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. All Bonds shall have thereon a certificate of authentication, substantially in the form hereinafter set forth, duly executed by the Bond Registrar as authenticating agent of the City and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Ordinance unless and until such certificate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed by it if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder. Section 7. Term Bonds, Mandatory Redemption and Covenants. The Bonds due on December 15, 2022, are subject to mandatory redemption, in integral multiples of $5,000 Ea selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on December 15, 2021, in the principal amount of $160,000. The Bonds due on December 15, 2024, are subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on December 15, 2023, in the principal amount of $170,000. The Bonds due on December 15, 2026, are subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on December 15, 2025, in the principal amount of $180,000. The Bonds due on December 15, 2028, are subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on December 15, 2027, in the principal amount of $195,000. The Bonds due on December 15, 2030,,are subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on December 15, 2029, in the principal amount of $135,000. The Bonds due on December 15, 2032, are subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on December 15, 2031, in the principal amount of $145,000. The City covenants that it will redeem Term Bonds pursuant to the mandatory redemption requirement for such Term Bonds Proper provision for mandatory redemption in having been made, the City covenants that the Term Bonds so selected for redemption shall be payable as at maturity, and taxes shall be levied and collected as provided herein accordingly. Section 8. Optional Redemption. The Bonds due on and after December 15, 2022, are subject to redemption prior to maturity at the option of the City, from any available funds, in whole or in part, on any date on or after December 15, 2020, and if in part, in any order of maturity as selected by the City, and if less than an entire maturity, in integral multiples of $5,000, selected by lot by the Bond Registrar as hereinafter provided, at the redemption price of par plus accrued interest to the date fixed for redemption. Section 9. Term Bonds Purchase or Redemption. If the City redeems pursuant to optional redemption as hereinabove provided or purchases Term Bonds of any maturity and cancels the same from Bond Moneys as hereinafter described, then an amount equal to the principal amount of Term Bonds so redeemed or purchased shall be deducted from the mandatory redemption requirements provided for Term Bonds of such maturity, first, in the current year of such requirement, until the requirement for the current year has been fully met, and then in any order of such Term Bonds as due at maturity or subject to mandatory redemption in any year, as the City shall determine. If the City redeems pursuant to optional redemption or purchases Term Bonds of any maturity and cancels the same from moneys other than Bond Moneys, then an amount equal to the principal amount of Term Bonds so redeemed or purchased shall be deducted from the amount of such Term Bonds as due at maturity or subject to mandatory redemption requirement in any year, as the City shall determine. Section 10. Redemption Procedure. For a mandatory redemption of Term Bonds, the Bond Registrar shall proceed without further authorization or direction to provide for such redemption. For optional redemptions, the City shall, at least 45 days prior to the redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar), notify the Bond -10- Registrar for the Bonds of such redemption date and of the maturities and principal amounts of Bonds to be redeemed. In the event of an optional redemption of less than all of a given maturity of Term Bonds, the City shall also notify the Bond Registrar of the allocat , ion of the amount to be redeemed to the mandatory redemption requirements for such Term Bonds. For purposes of any redemption of less than all of the Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot not more than 60 days prior to the redemption date by the Bond Registrar for the Bonds of such maturity by such method of lottery as the Bond Registrar shall deem fair and appropriate; provided, however, that such lottery shall provide for the selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for redemption as any other such $5,000 Bond or $5,000 portion. The Bond Registrar shall promptly notify the City and the Paying Agent in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed. Unless waived by the registered owner of Bonds to be redeemed, official notice of any such redemption shall be given by the Bond Registrar on behalf of the City by mailing the redemption notice by first class mail not less than 30 days and not more than 60 days prior to the date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. All official notices of redemption shall include the full name of the Bonds to be redeemed and at least the information as follows: (a) the redemption date; (b) the redemption price; -11- (c) if less than all of the outstanding Bonds of a particular maturity are to be redeemed, the identification (and, in the case of partial redemption of Bonds within such maturity, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after said date; and (e) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal corporate trust office of the Paying Agent. Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed shall have been received by the Paying Agent prior to the giving of such notice of redemption, such notice may, at the option of the City, state that said redemption shall be conditional upon the receipt of such moneys by the Paying Agent on or prior to the date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds, and the Bond Registrar shall give notice, in the same manner in which the notice of redemption shall have been given, that such moneys were not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption date, the City shall deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. Subject to the provisions for a conditional redemption described above, notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Paying -12- Agent at the redemption price. The procedure for the payment of interest due as part of the redemption price shall be as herein provided for payment of interest otherwise due. Upon surrender for any partial redemption of any Bond, there shall be prepared for the registered owner a new Bond or Bonds of like tenor, of authorized denominations, of the same maturity, and bearing the same rate of interest in the amount of the unpaid principal. If any Bond or portion of a Bond called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duty provided for, bear interest from the redemption. date at the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued. As part of their respective duties hereunder, the Bond Registrar and Paying Agent shall prepare and forward to the City a statement as to notice given with respect to each redemption together with copies of the notices as mailed and published. Section 11. Registration and Exchange or Transfer of Bonds; Persons Treated as Owners. The City shall cause books (the "Bond Register") for the registration and for the transfer of the Bonds as provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, which is hereby constituted and appointed the registrar of the City for the Bonds. The City is authorized to prepare, and the Bond Registrar or such other agent as the City may designate shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and exchange of Bonds. Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender for transfer or exchange of any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by or accompanied by a written instrument or instruments of transfer or exchange in form satisfactory to the Bond Registrar and duly executed by the registered owner or an -13- attorney for such owner duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees or, in the case of an exchange, the registered owner, a new fully registered Bond or Bonds of like tenor, of the same maturity, bearing the same interest rate, of authorized denominations, for a like aggregate principal amount. The Bond Registrar shall not be required to transfer or exchange any Bond during the period from the close of business on the Record Date for an interest payment to the opening of business on such interest payment date, nor during the period of 15 days preceding the giving of notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has been called for redemption. The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond; provided, however, that the principal amount of Bonds of each maturity authenticated by the Bond Registrar shall not at any one time exceed the authorized principal amount of Bonds for such maturity less the amount of such Bonds which have been paid. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds, -14- except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption. Section 12. Form of Bond. The Bonds shall be in substantially the form hereinafter set forth; provided, however, that if the text of the Bonds is to be printed in its entirety on the front side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side for Additional Provisions" shall be ornitted and the text of paragraphs set forth for the reverse side shall be inserted immediately after the first paragraph. -15- [Form of Bond - Front Side] REGISTERED REGISTERED No. UNITED STATES OF AmFRiCA STATE OF ILLINOIS THE COUNTY OF MCHENRY CITY OF MCHENRY GENERAL OBLIGATION BOND, SERIES 2012 See Reverse Side for Additional Provisions. Interest Maturity Dated Rate: % Date: December 15, Date: September 11, 2012 CUSIP: 581170 Registered Owner: CEDE & CO. Principal Amount: DOLLARS KNOW ALL PERSONS BY TBESE PRESENTS that the City of McHenry, McHenry County, Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above (subject to right of prior redemption as hereinafter stated), the Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the later of the Dated Date of this Bond identified above or from the most recent interest payment date to which interest has been paid or duly provided for, at the Interest Rate per annum identified above, such interest to be payable on June 15 and December 15 of each year, commencing June 15, 2013, until said Principal Amount is paid or duly provided for. The principal of or redemption price on this Bond is payable in lawful money of the United States of America upon presentation hereof at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, in the City of Chicago, Illinois, as paying agent (the "Paying Agent"). Payment of interest shall be made to -16- the Registered Owner hereof as shown on the registration books of the City maintained by The Bank of New York Mellon Trust Company, National Association, in the City of Chicago, Illinois, as bond registrar (the "Bond Registrar"), at the close of business on the applicable Record Date (the "Record Date"). The Record Date shall be the lst day of the month of any regular or other interest payment date occurring on the 15th day of any month and 15 days preceding any interest payment date occasioned by the redemption of Bonds on other than the 15th day of a month. Interest shall be paid by check or draft of the Paying Agent, payable upon presentation in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on such registration books or at such other address furnished in writing by such Registered Owner to the Bond Registrar, or as otherwise agreed by the City and Cede & Co., as nominee, or successor, for so long as this Bond is held by The Depository Trust Company, New York, New York, the depository, or nominee, in book -entry only form as provided for same. Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. It is hereby certified and recited that all conditions, acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Bond, including the authorizing Act, have existed and have been properly done, happened and been performed in regular and due form and time as required by law; that the indebtedness of the City, represented by the Bonds, and including all other indebtedness of the City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other lawful limitation; and that provision has been made for the collection of a direct annual tax, in 17- addition to all other taxes, on all of the taxable property in the City sufficient to pay the interest hereon as the same falls due and also to pay and discharge the principal hereof at maturity. This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Bond Registrar. IN WITNESS WHEREoF the City of McHenry, McHenry County, Illinois, by.its City Council, has caused this Bond to be executed by the manual or duly authorized facsimile signature of its Mayor and attested by the manual or duly authorized facsimile signature of its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date identified above. ATTEST: City Clerk, City of McHenry McHenry County, Illinois [SEAL] Mayor, City of McHenry McHenry County, Illinois M Date of Authentication: CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within -mentioned Ordinance and is one of the General Obligation Bonds, Series 2012, having a Dated Date of September 11, 2012, of the City of McHenry, McHenry County, Illinois. Bond Registrar and Paying Agent: THE BANK OF NEw YORK MELLON TRUST ComPANY. NATIONAL ASSOCIATION Chicago, Illinois THE BANK OF NEw YORK MELLON TRUST CoNwANY, NATIONAL ASSOCIATION, as Bond Registrar .0 Authorized Officer 19- (Form of Bond - Reverse Side] This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of $3,100,000 issued by the City for the purpose of paying the costs of the Series 2012 Project and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Bonds (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of the Illinois Municipal Code, as supplemented and amended, and as further supplemented and, where necessary, superseded, by the powers of the City as a home rule unit under the provisions of Section 6 of Article VII of the Illinois Constitution of 1970 (such code and powers being the "Act"), and with the Ordinance, which has been duly passed by the City Council of the City, approved by the Mayor, and published, in all respects as by law required. Subject to the provisions relating to this Bond remaining in book -entry only form, this Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in the Ordinance. Upon surrender for transfer or exchange of this Bond at the principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, duly endorsed by or accompanied by a written instrument or instruments of transfer or exchange in form satisfactory to the Bond Registrar and duly executed by the Registered Owner or an attorney for such owner duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees or, in the case of an exchange, the Registered Owner, a new fully registered Bond or Bonds of like tenor, of the same maturity, bearing the same interest rate, of authorized denominations, for a like aggregate principal amount. The Bond Registrar shall not be required to transfer or exchange any Bond during the period from the close of business on the Record Date for an interest payment to the opening of business on such interest payment date or during the period of 15 days preceding the giving of -20- notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has been called for redemption. The Bonds may be subject to optional redemption, and the holder of this Bond shall refer to the provisions of the Ordinance for the terms and provision for notice of redemption. The City, the Bond Registrar and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the City, the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary. AsSIGNMENT FOR VALuE RFcEivED, the undersigned sells, assigns and transfers unto Here insert Social Security Number, Employer Identification Number or other Identifying Number (Name and Address of Assignee) the within Bond and does hereby irrevocably constitute and appoint as attorney to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. -21- Section 13. Tax Levy. For the purpose of providing funds required to pay the interest on the Bonds promptly when and as the same falls due, and to pay and discharge the principal thereof at maturity, there is hereby levied upon all of the taxable property within the City, in the years for which any of the Bonds are outstanding, a direct annual tax sufficient for that purpose; and there is hereby levied on all of the taxable property in the City, in addition to all other taxes, the following direct annual taxes (the Pledged Taxes as hereinabove defined): FORTHEYEAR A TAX SUFFICIENT TO PRODUCETHE DOLLAR SUM OF: 2012 $207,688.21 for interest and principal up to and including December 15,2013 2013 $212,132.50 for interest and principal 2014 $209,232.50 for interest and principal 2015 $206,332.50 for interest and principal 2016 $208,432.50 for interest and principal 2017 $210,432.50 for interest and principal 2018 $207,332.50 for interest and principal 2019 $204232.50 for interest and principal 2020 $206,132.50 for interest and principal 2021 $207,932.50 for interest and principal 2022 $209,632.50 for interest and principal 2023, $211,062.50 for interest and principal 2024 $212,387.50 for interest and principal 2025 $213,157.50 for interest and principal 2026 $218,810.00 for interest and principal 2027 $148,935.00 for interest and principal 2028 $150,685.00 for interest and principal 2029 $152,040.00 for interest and principal 2030 $153,260.00 for interest and principal 2031 $154200.00 for interest and principal -22- The Pledged Taxes and other moneys (excepting proceeds of the Bonds) on deposit (collectively, the "Bond Moneys") in the Bond Fund shall be applied to pay principal of and interest on the Bonds as follows: A. Bond Moneys shall be applied to the payment of interest when due and principal or redemption price when due at maturity or as redeemed pursuant to mandatory redemption from the Bond Fund, or B. On or before October 10 in each calendar year preceding a December 15 mandatory redemption date in the successive calendar year, Bond Moneys up to the amount of the redemption requirement on such mandatory redemption date plus interest due on Term Bonds on such date may be applied (1) to the purchase of Term Bonds of the maturity for which such mandatory redemption requirement was established at prices (including commissions and charges, if any) not exceeding par and accrued interest to such December 15 or (2) to the redemption of such Bonds, without premium, pursuant to optional redemption provisions applicable thereto. Upon the purchase or redemption of Term Bonds of any maturity pursuant to this paragraph (B), an amount equal to the principal amount of such Bonds or applicable portion thereof so purchased or redeemed shall be deducted from the next mandatory redemption requirement thereafter to become due on such Bonds and any excess over the amount of such requirement shall be deducted from the future requirement for such Bonds as the City shall determine. Interest or principal coming due at any time when there are insufficient funds on hand from the Pledged Taxes to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the Pledged Taxes herein levied; and when the Pledged Taxes shall have been collected, reimbursement shall be made to said funds in the amount so advanced. The City covenants and agrees with the purchasers and registered owners of the -23- Bonds that so long as any of the Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to levy and collect the foregoing tax levy. The City and its officers will comply with all present and future applicable laws in order to assure that the Pledged Taxes may be levied, extended and collected as provided herein and deposited into the Bond Fund. Whenever other funds from any lawful source are made available for the purpose of paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied herein for the payment of same, the City Council shall, by proper proceedings, direct the deposit of such funds into the Bond Fund and further shall direct the abatement of the taxes by the amount so deposited. A certified copy or other notification of any such proceedings abating taxes may then be filed with the County Clerk in a timely manner to effect such abatement. Section 14. Filing with County Clerk. Promptly, as soon as this Ordinance becomes effective, a copy hereof, certified by the City Clerk of the City, shall be filed with the County Clerk; and the County Clerk shall in and for each of the years 2012 to 2031, inclusive, ascertain the rate percent required to produce the aggregate tax hereinbefore provided to be levied in each of said years; and the County Clerk shall extend the same for collection on the tax books in connection with other taxes levied in said years in and by the City for general corporate purposes of the City; and in said years such annual tax shall be levied and collected by and for and on behalf of the City in like manner as taxes for general corporate purposes for said years are levied and collected, and in addition to and in excess of all other taxes. Section 15. Sale of Bonds. The Bonds hereby authorized shall be executed as in this Ordinance provided as soon after the passage hereof as may be, and thereupon be deposited with the City Treasurer, and be by said Treasurer delivered to Robert W. Baird & Co. Incorporated, Milwaukee, Wisconsin, the purchaser thereof (the "Purchaser"), upon receipt of the purchase K, IS price therefor, the same being $3,119,606.35, plus accrued interest, if any, to date of delivery; the contract for the sale of the Bonds heretofore entered into (the 'Turchase Contract") is in all respects ratified, approved and confirmed, it being hereby found and deterinined that the Bonds have been sold at such price and bear interest at such rates that neither the true interest cost (yield) nor the net interest rate received upon such sale exceed the maximum rate otherwise authorized by Illinois law and that the Purchase Contract is in the best interests of the City and that no person holding any office of the City, either by election or appointment, is in any manner financially interested directly in his own name or indirectly in the name of any other person, association, trust or corporation, in the Purchase Contract. The use by the Purchaser of any Preliminary Official Statement and any final Official Statement relating to the Bonds is hereby ratified, approved and authorized; the execution and delivery of said final Official Statement is hereby authorized; and the officers of the City Council are hereby authorized to take any action as may be required on the part of the City to consummate the transactions contemplated by the Purchase Contract, this Ordinance, said Preliminary Official Statement, said final Official Statement and the Bonds. Section 16. Creation of Funds and Appropriations. A . There is hereby created the "General Obligation Bonds, Series 2012, Bond Fund" (the "Bond Fund"), which shall be the fundfor the payment of principal of and interest on the Bonds. B . The Pledged Taxes shall either be deposited into the Bond Fund and used solely and only for paying the principal of and interest on the Bonds or be used to reimburse a fund or account from which advances to the Bond Fund may have been made to pay principal of or interest on the Bonds prior to receipt of Pledged Taxes. Interest income or investment profit earned in the Bond Fund shall be retained in the Bond Fund for payment of the principal of or -25- interest on the Bonds on the interest payment date next after such interest or profit is received or, to the extent lawful and as determined by the City Council, transferred to such other fund as may be determined. The City hereby pledges, as equal and ratable security for the Bonds, all present and future proceeds of the Pledged Taxes for the sole benefit of the registered owners of the Bonds, subject to the reserved right of the City Council to transfer certain interest income or investment profit earned in the Bond Fund to other funds of the City, as described in the preceding sentence. C. Accrued interest on the Bonds plus the remaining principal proceeds of the Bonds shall be set aside in a separate fund, hereby created, and designated as the "Series 2012 Project Fund" (the "Project Fund"), hereby created as the fund to provide for the receipt and disbursement of proceeds of the Bonds for the Series 2012 Project and to pay costs of issuance of the Bonds. Alternatively, the Treasurer may allocate such remaining proceeds to one or more related project funds of the City already in existence; provided, however, that this shall not relieve the Treasurer of the duty to account for the proceeds as herein provided. (Any such one or more funds shall also be referred to hereinafter, collectively, as the "Project Fund".) The City Council reserves the right, as it becomes necessary from time to time, to revise the list of expenditures hereinabove set forth, to change priorities, to revise cost allocations between expenditures and to substitute projects, in order to meet current needs of the City; subject, however, to the tax covenants set forth herein. Section 17. General Arbitrage Covenants. The City hereby covenants that it will not take any action, omit to take any action or permit the taking or ornission of any action within its control (including, without limitation, making or permitting any use of the proceeds of the Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be an arbitrage bond or a private activity bond within the meaning of the Code or would otherwise -26- cause the interest on the Bonds to be included in the gross income of the recipients thereof for federal income tax purposes. The City acknowledges that, in the event of an examination by the Internal Revenue Service of the exemption from Federal income taxation of interest on the Bonds, under present rules, the City may be treated as a "taxpayer" in such examination and agrees that it will respond in a commercially reasonable manner to any inquiries from the Internal Revenue Service in connection with such an examination. The City also agrees and covenants with the purchasers and holders of the Bonds from time to time outstanding that, to the extent possible under Illinois law, it will comply with whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax-exempt status of the Bonds. The City Council hereby authorizes the officials of the City responsible for issuing the Bonds, the same being the Mayor, Clerk and Treasurer of the City, to make such further covenants and certifications as may be necessary to assure that the use thereof will not cause the Bonds to be arbitrage bonds and to assure that the interest on the Bonds will be exempt from federal income taxation. In connection therewith, the City and the City Council further agree: (a) through their officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (b) to consult with counsel approving the Bonds and to comply with such advice as may be given; (c) to pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Bonds; (d) to file such forms, statements, and supporting documents as may be required and in a timely manner; and (e) if deemed necessary or advisable by their officers, to employ and pay fiscal agents, financial advisors, attorneys, and other persons to assist the City in such compliance. -27- Section 18. Registered Form. The City recognizes that Section 149 of the Code requires the Bonds to be issued and to remain in fully registered form in order to be and remain Tax-exempt. In this connection, the City agrees that it will not take any action to permit the Bonds to be issued in, or converted into, bearer or coupon form. Section 19. Rights and Duties of Bond Registrar and Paying Agent. If requested by the Bond Registrar or the Paying Agent, or both, any officer of the City is authorized to execute standard forms of agreements between the City and the Bond Registrar or Paying Agent with respect to the obligations and duties of the Bond Registrar or Paying Agent hereunder. In addition to the terms of such agreements and subject to modification thereby, the Bond Registrar and Paying Agent by acceptance of duties hereunder agree: (a) to act as bond registrar, paying agent, authenticating agent, and transfer agent as provided herein; (b) as to the Bond Registrar, to maintain a list of Bondholders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential to the extent permitted by law; herein; (c) as to the Bond Registrar, to give notice of redemption of Bonds as provided (d) as to the Bond Registrar, to cancel and/or destroy Bonds which have been paid at maturity or upon redemption or submitted for exchange or transfer; (e) as to the Bond Registrar, to furnish the City at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (f) to furnish the City at least annually an audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds. M The City Clerk of the City is hereby directed to file a certified copy of this Ordinance with the Bond Registrar and the Paying Agent. Section 20. Defeasance. Any Bond or Bonds which (a) are paid and cancelled, (b) which have matured and for which sufficient sums been deposited with the Paying Agent to pay all principal and interest due thereon, or (c) for which sufficient U.S. funds and direct U.S. Treasury obligations have been deposited with the Paying Agent or similar institution to pay, taking into account investment earnings on such obligations, all principal of and interest on such Bond or Bonds when due at maturity or as called for redemption, pursuant to an irrevocable escrow or trust agreement, shall cease to have any lien on or right to receive or be paid from the Bond Moneys or Pledged Taxes hereunder and shall no longer have the benefits of any covenant for the registered owners of outstanding Bonds as set forth herein as such relates to lien and security of the outstanding Bonds. All covenants relative to the Tax-exempt status of the Bonds; and payment, registration, transfer, and exchange; are expressly continued for all Bonds whether outstanding Bonds or not. Section 21. Continuing Disclosure Undertaking. The Mayor or the Treasurer of the City is hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure Undertaking (the "Continuing Disclosure Undertaking") in substantially the same form as now before the City Council, or with such changes therein as the individual executing the Continuing Disclosure Undertaking on behalf of the City shall approve, the official's execution thereof to constitute conclusive evidence of the approval of such changes. When the Continuing Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the Continuing Disclosure Undertaking will be binding on the City and the officers, employees and agents of the City, and the officers, employees and agents of the City are hereby authorized, empowered and directed to do all such acts and things and to execute all such -29- documents as may be necessary to carry out and comply with the provisions of the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of the beneficial owner of any Bond to seek mandamus or specific performance by court order, to cause the City to comply with its obligations under the Continuing Disclosure Undertaking. Section 22. Publication of Ordinance. A full, true and complete copy of this Ordinance shall be published within ten days after passage in pamphlet form by authority of the City Council. Section 23. Record -Keeping Policy and Post -Issuance Compliance Matters. On August 30, 2010, the City Council adopted a record -keeping policy to assist the City in demonstrating compliance with its covenants and expectations to ensure the appropriate federal tax status for the Bonds or other bonds or debt obligations of the City (collectively, the "Policy"). The City Council hereby amends the Policy to include the following provision: Training. The Compliance Officer shall undertake to maintain reasonable levels of knowledge concerning the rules related to tax-exempt bonds (and build America bonds and tax credit bonds to the extent the City has outstanding build America bonds or tax - credit bonds) so that such officer may fulfill the duties described in this Section. The Compliance Officer may consult with counsel, attend conferences and presentations of trade groups, read materials posted on various web sites, including the web site of the Tax -Exempt Bond function of the IRS, and use other means to maintain such knowledge. Recognizing that the Compliance Officer may not be fully knowledgeable in this area, the Compliance Officer may consult with outside counsel, consultants and experts to assist him or her in exercising his or her duties hereunder. The Compliance Officer will endeavor to make sure that the District's staff is aware of the need for continuing compliance. The Compliance Officer will provide copies of this Resolution and the Tax Exemption Certificate and Agreement or other applicable tax documents for each series of Tax -Exempt Obligations then currently outstanding (the "Tax Agreements") to -30- staff members who may be responsible, for taking actions described in such documents. The Compliance Officer will review this Resolution and each of the Tax Agreements periodically to deten-nine if there are portions that need further explanation and, if so, will attempt to obtain such explanation from counsel or from other experts, consultants or staff. Section 24. Severahility. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. -31- Section 25. Superseder and Effective Date. All ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this Ordinance shall be in full force and effect inunediately upon its passage, approval and publication. AYES: Santi, Glab, Schaefer, Blake, Wimmer, and Condon NAYS: None ABSENT: Peterson ADOPTED: August 27, 2012 APPROVED: August 27, 2012 v/ 'ei� / g2 ,.,�`Mayor, City of Meflenry McHenry County, Illinois Recorded In City Records: August 27, 2012. Published in parnphlet form by authority of the City Council on August 27, 2012. ATTEST: City Oer� City of c nry Me enry ounty, gect `�71 " [SEAL] -32- STATE OF ILLINOIS ) SS COUNTY OF MCHFNRY CERTIFICATION OF MINUTES AND ORDINANCE 1, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of McHenry, McHenry County, Illinois (the "City"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes and files of the City and of the City Council (the "City Council") thereof. I do further certify that the foregoing is a full, true and complete transcript of that portion of the minutes of the meeting of the City Council held on the 27th day of August, 2012 insofar as the same relates to the adoption of an ordinance, entitled: AN ORDINANCE providing for the issuance of $3,100,000 General Obligation Bonds, Series 2012, of the City of McHenry, McHenry County, Illinois, and providing for the levy and collection of a direct annual tax sufficient for the payment of the principal of and interest on said bonds. a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the City Council on the adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given to all newspapers, radio or television stations and other news media requesting such notice; that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the City Council at least 72 hours in advance of the holding of said meeting; that said agenda contained a separate specific item concerning the proposed adoption of said ordinance; a true, correct and complete copy of said agenda as so posted being attached to this certificate as Exhibit A; that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and the Illinois Municipal Code, as amended, and that the City Council has complied with all of the provisions of said Act and said Code and with all of the procedural rules of the City Council in the adoption of said ordinance. IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the City this 27th day of August, 2012. [SEAL] [Attach Exhibit A] E-V 0 lei r A City of McHenry 333 South Green Street McHenry, Illinois 60050-5495 www.ci.mchenry.il.us Mayor's Office (815) 363-2108 AGENDA Fax (815) 363-2119 REGULAR CITY COUNCIL MEETING Monday, August 27, 2012, 7:30 PM Administration (815) 363-2 100 Fax (815) 363-2119 1. Call to Order Construction and Neighborhood Services 2. Roll Call (815) 363-2170 Fax (815) 363-2173 3. Pledge of Allegiance Finance Department 4. Public Input Session; 10 Minute Limitation Its 15) 363-2 100 Fax (8 15) 363 -2119 5, Consent Agenda: A. Authorization to seek requests for qualifications for architectural services for replacement of roof and shop furnaces at Public Works building, 1415 Industrial Drive; Parks and Recreation B. Contract for purchase of bulk rock salt through State of Illinois Joint Purchasing program: (8 15) 363-2 100 C. Ordinance authorizing donation of Police abandoned/found property to charitable Fax (815) 363-3 186 organizations; D. Temporary use permit for The Church of Holy Apostles to host free community dinners at Police Non-Ennergency 5211 W. Bull Valley Road; (8 15) 363-2200 E. Special Use/Picnic Permits; Fax (815) 363-2149 F. August 6, 2012 City Council meeting minutes G. August 13, 2012 City Council meeting minutes; and Public Works H. List of Bills. (815) 363�2186 Fax (815) 363-2214 6. Ordinance authorizing the issuance of 43.1 million in General Obligation Bonds (series 2012) to fund redevelopment of Water Treatment Plant #2 and improvements to public works building located at 1415 Industrial Drive Mayor 7. Request for an Honorary Street Slgn Susan E. Low B. Request for a conditional use permit to allow mini warehouses and a variance to allow multiple City Clerk principal buildings and land uses on one lot at 305 North Front Street Janice C. Jones 9. Parks & Recreation Committee recommendation to approve development of a Dog Park and contract with 3D Design for preparation of construction documents and bid Tmasumr Steven C. Murgatroyd specifications Aldermen 10. Mayor Statement and Reports WARD 1 11. Committee Reports Victor A. Sand 12. Staff Reports WARD 2 13. Adjournment Andrew A. Gish Posted August 22, 2012 WARD 3 Jeffrey A. Schaefer WARD 4 Geoffrey T. Blake WARD 5 Richard W. Wimmer WARD 6 Robert J. Peterson WARD 7 Geri A. Condon EXTRACT OF M=ES of the regular public meeting of the City Council of the City of McHenry, McHenry County, Illinois, held at the City Hall, located at 333 South Green Street, in said City, at 7:30 p.m., on Monday, the 27th day of August, 2012. The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon the roll being called, the following Aldermen were physically present at said location: Santi, Glab, Schaefer, Blake, Wimmer, and Condon. The following Aldermen were allowed by a majority of the members of the City Council in accordance with and to the extent allowed by rules adopted by the City Council to attend the meeting by video or audio conference: None. No Alderman was permitted to attend the meeting by video or audio conference. The following Aldermen were absent and did not participate in the meeting in any manner or to any extent whatsoever: Peterson. The City Council then discussed the proposal to fund various capital improvements and considered an ordinance providing for the issuance of $3,100,000 General Obligation Bonds, Series 2012, of the City and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. Thereupon, the City Clerk presented, the City Administrator explained, and there was read by title an ordinance as follows, a copy of which was provided to each Alderman prior to said meeting and to everyone in attendance at said meeting who requested a copy: Bond OTdinance 2199370 - KK - 9/18/12 AN ORDINANCE providing for the issuance of $3,100,000 General Obligation Bonds, Series 2012, of the City of McHenry, McHenry County, Illinois, and providing for the levy and collection of a direct annual tax sufficient for the payment of the principal of and interest on said bonds. (the "Bond Ordinance "). Alderman Wimmer moved and Alderman Blake seconded the motion that the Bond Ordinance as presented be adopted. A City Council discussion of the matter followed. During the City Council discussion, the Finance and Accounting Manager gave a public recital of the nature of the matter, which included a reading of the title of the ordinance and statements (1) that the ordinance provided for the issuance of General Obligation Bonds for the purpose of paying the costs of various capital improvements, (2) that the bonds are issuable without referendum pursuant to the home rule powers of the City, (3) that the ordinance provides for the levy of taxes sufficient to pay the bonds, and (4) that the ordinance provides many details for the bonds, including tax-exempt status covenants, provision for terms and form of the bonds, and appropriations. The Mayor directed that the roll be called for a vote upon the motion to adopt the ordinance. Upon the roll being called, the following Aldermen voted AYE: Santi, Glab, Schaefer, Blake, Wimmer, and Condon. and the following Aldermen voted NAY: None. WHEREUPON, the Mayor declared the motion carried and the ordinance adopted, and henceforth did approve and sign the same in open meeting, and did direct the City Clerk to record the same in full in the records of the City Council of the City of McHenry, McHenry County, Illinois. Other business was duly transacted at said meeting. Upon motion duly made and carried, the meeting adjourned. --(r lerk�� -2- 333 South Green Street City of McHenry McHenry, Illinois 60050-5495 C E R T I F I C A T 1 0 N 1, Marcia M. Geraghty, Executive Assistant in and for the City of McHenry, Illinois, do hereby certify that the attached document is a true and correct copy of City of McHenry ordinance No. ORD-12-1599 authorizing and providing for the issuance of $3,100,000 General obligation Bonds Series 2012 to pay for the construction of various capital projects. Said ordinance was passed and approved by Council and signed by the Mayor on August 27, 2012. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the City of McHenry, Illinois this 10� day of September, 2012. (SEAL) Ptk� /11C Marcia M. Geraghty, Zxec tive Assistant of the City of McHenry, Illinois Clerk's Office and Construction and Administration Public Works Neighborhood Services (815) 363-2100 (815) 363-2186 (815) 363-2170 Fax (815) 363-2119 Fax (815) 363-2214 Fax (815) 363-2173 www.ci.mchenry.il.us Parks and Recreation (815) 363-2160 Fax (815) 363-3186 Police (Non -Emergency) (815) 363-2200 Fax (815) 363-2149 STATE OF ILLINOIS ) SS COUNTY OF McHENRY CERTIFICATE OF FILING 1, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of The County of McHenry, Illinois, and as such officer I do hereby certify that on the 1/, day of 2012 there was filed in my office a properly certified copy of Ordinance Number ORD-12-1599, passed by the City Council of the City of McHenry, McHenry County, Illinois, on the 27th day of August, 2012 and entitled: AN ORDINANCE providing for the issuance of $3,100,000 General Obligation Bonds, Series 2012, of the City of McHenry, McHenry County, Illinois, and providing for the levy and collection of a direct annual tax sufficient for the payment of the principal of and interest on said bonds. and that the same has been deposited in, and all as appears from, the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of The County of McHenry, Illinois, this 2�p day of 44MLU 12012. �a JAL- C A� County Clerk of The ��mty of McHenry, Illinois [SEAL]