O:\ILLINOIS DATA\Libraries\Fountaindale Library - Ehlers

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Subject to compliance by the District with certain covenants, in the opinion of Chapman and Cutler, LLP, Chicago, Illinois, Bond Counsel, under present law, interest on the Bonds
is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative
minimum tax for individuals and corporations, but such interest is taken into account in computing an adjustment used in determining the federal alternative minimum tax for
certain corporations. Interest on the Bonds is not exempt from present State of Illinois income taxes. See "TAX EXEMPTION" herein for a more complete discussion.
The District will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the
ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations.
New Issue
Rating Application Made: Standard & Poor's
PRELIMINARY OFFICIAL STATEMENT DATED AUGUST 15, 2016
FOUNTAINDALE PUBLIC LIBRARY DISTRICT
WILL AND DuPAGE COUNTIES, ILLINOIS
$9,920,000* GENERAL OBLIGATION REFUNDING LIBRARY BONDS, SERIES 2016A
BID OPENING: August 24, 2016, 10:00 A.M., C.T.
CONSIDERATION: Not later than 11:59 P.M., C.T. on August 24, 2016
PURPOSE/AUTHORITY/SECURITY: The $9,920,000* General Obligation Refunding Library Bonds, Series 2016A (the
"Bonds") of the Fountaindale Public Library District, Will and DuPage Counties, Illinois (the "District"), are being issued pursuant
to the Public Library District Act of 1991 of the State of Illinois and the Local Government Debt Reform Act of the State of
Illinois, and all laws amendatory thereof and supplementary thereto. Proceeds of the Bonds will be used to provide funds to
refinance certain outstanding bonds of the District. The Bonds are general obligations of the District, for which its full faith and
credit has been irrevocably pledged, and are payable from ad valorem taxes levied upon all the taxable property in the District
without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may
be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by
equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. Delivery is subject to
receipt of an approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois.
DATE OF BONDS:
MATURITY:
September 14, 2016
February 1 as follows:
Amount*
Year
Amount*
Year
Amount*
Year
2017
$150,000
2021
$905,000
2025
$925,000
2018
105,000
2022
885,000
2026
900,000
2019
105,000
2023
865,000
2027
1,120,000
2020
105,000
2024
945,000
2028
2,910,000
MATURITY ADJUSTMENTS: * The District reserves the right to increase or decrease the principal amount of the Bonds on
the day of sale, in increments of $5,000 each. Increases or decreases may be made in any
maturity. If any principal amounts are adjusted, the purchase price proposed will be adjusted
to maintain the same gross spread per $1,000.
See "Term Bond Option" herein.
TERM BONDS:
February 1, 2017 and semiannually thereafter.
INTEREST:
Bonds maturing February 1, 2026 and thereafter are subject to call for prior redemption on
OPTIONAL REDEMPTION:
February 1, 2025 and any date thereafter, at a price of par plus accrued interest.
$9,860,480.
MINIMUM BID:
A cashier's check in the amount of $198,400 may be submitted contemporaneously with the
GOOD FAITH DEPOSIT:
bid or, alternatively, a good faith deposit shall be made by the winning bidder by wire transfer
of funds.
Bond Trust Services Corporation, Roseville, Minnesota.
PAYING AGENT:
See "Book-Entry-Only System" herein (unless otherwise specified by the purchaser).
BOOK-ENTRY-ONLY:
*Preliminary, subject to change.
This Preliminary Official Statement will be further supplemented by an addendum specifying the offering prices, interest rates, aggregate
principal amount, principal amount per maturity, anticipated delivery date, and Syndicate Manager and Syndicate Members, together with any
other information required by law, and, as supplemented, shall constitute a "Final Official Statement" of the District with respect to the Bonds,
as defined in S.E.C. Rule 15c2-12.
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the District to give any information or to make any representation other
than those contained in this Official Statement and, if given or made, such other information or representations must not be relied upon as
having been authorized by the District. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy any
of the Bonds in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.
This Official Statement is not to be construed as a contract with the Syndicate Manager or Syndicate Members. Statements contained herein
which involve estimates or matters of opinion are intended solely as such and are not to be construed as representations of fact. Ehlers &
Associates, Inc. prepared this Official Statement and any addenda thereto relying on information of the District and other sources for which
there is reasonable basis for believing the information is accurate and complete. Bond Counsel has not participated in the preparation of this
Official Statement and is not expressing any opinion as to the completeness or accuracy of the information contained therein. Compensation
of Ehlers & Associates, Inc., payable entirely by the District, is contingent upon the sale of the issue.
COMPLIANCE WITH S.E.C. RULE 15c2-12
Certain municipal obligations (issued in an aggregate amount over $1,000,000) are subject to Rule 15c2-12 promulgated by the Securities and
Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the "Rule").
Official Statement: This Official Statement was prepared for the District for dissemination to potential investors. Its primary purpose is
to disclose information regarding the Bonds to prospective underwriters in the interest of receiving competitive proposals in accordance with
the sale notice contained herein. Unless an addendum is posted prior to the sale, this Official Statement shall be deemed nearly final for
purposes of the Rule subject to completion, revision and amendment in a Final Official Statement as defined below.
Review Period: This Official Statement has been distributed to prospective bidders for review. Comments or requests for the correction
of omissions or inaccuracies must be submitted to Ehlers & Associates, Inc. at least two business days prior to the sale. Requests for additional
information or corrections in the Official Statement received on or before this date will not be considered a qualification of a proposal received
from an underwriter. If there are any changes, corrections or additions to the Official Statement, interested bidders will be informed by an
addendum prior to the sale.
Final Official Statement: Upon award of sale of the Bonds, the Official Statement together with any previous addendum of corrections or
additions will be further supplemented by an addendum specifying the offering prices, interest rates, aggregate principal amount, principal
amount per maturity, anticipated delivery date, and Syndicate Manager and Syndicate Members, together with any other information required
by law, and, as supplemented, shall constitute a "Final Official Statement" of the District with respect to the Bonds, as defined in the Rule.
Copies of the Final Official Statement will be delivered to the underwriter (Syndicate Manager) within seven business days following the
proposal acceptance.
Continuing Disclosure: Subject to certain exemptions, issues in an aggregate amount over $1,000,000 may be required to comply with
provisions of the Rule which require that underwriters obtain from the issuers of municipal securities (or other obligated party) an agreement
for the benefit of the owners of the securities to provide continuing disclosure with respect to those securities. This Official Statement describes
the conditions under which the Bonds are required to comply with the Rule.
CLOSING CERTIFICATES
Upon delivery of the Bonds, the underwriter (Syndicate Manager) will be furnished with the following items: (1) a certificate of the appropriate
officials to the effect that at the time of the sale of the Bonds and all times subsequent thereto up to and including the time of the delivery of
the Bonds, this Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) a receipt signed by the
appropriate officer evidencing payment for the Bonds; (3) a certificate evidencing the due execution of the Bonds, including statements that
(a) no litigation of any nature is pending, or to the knowledge of signers, threatened, restraining or enjoining the issuance and delivery of the
Bonds, (b) neither the corporate existence or boundaries of the District nor the title of the signers to their respective offices is being contested,
and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded; and (4) a certificate setting forth
facts and expectations of the District which indicates that the District does not expect to use the proceeds of the Bonds in a manner that would
cause them to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or within the meaning
of applicable Treasury Regulations.
ii
TABLE OF CONTENTS
TAX LEVIES, COLLECTIONS, AND TAX RATES . . . . . . 18
TAX LEVIES AND COLLECTIONS . . . . . . . . . . . . . . 18
DISTRICT TAX RATES . . . . . . . . . . . . . . . . . . . . . . . . 18
INTRODUCTORY STATEMENT . . . . . . . . . . . . . . . . . . . . . 1
THE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GENERAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OPTIONAL REDEMPTION . . . . . . . . . . . . . . . . . . . . . .
AUTHORITY; PURPOSE . . . . . . . . . . . . . . . . . . . . . . . .
ESTIMATED SOURCES AND USES . . . . . . . . . . . . . .
SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTINUING DISCLOSURE . . . . . . . . . . . . . . . . . . . .
LEGAL OPINION
........................................
CERTAIN LEGAL MATTERS . . . . . . . . . . . . . . . . . . . .
QUALIFIED TAX-EXEMPT OBLIGATIONS . . . . . . . .
MUNICIPAL ADVISOR . . . . . . . . . . . . . . . . . . . . . . . . .
MUNICIPAL ADVISOR AFFILIATED COMPANIES .
INDEPENDENT AUDITORS . . . . . . . . . . . . . . . . . . . . .
RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
1
1
2
3
3
3
3
5
7
8
8
8
8
9
THE DISTRICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISTRICT INFORMATION . . . . . . . . . . . . . . . . . . . . .
EMPLOYEES; PENSIONS AND UNIONS . . . . . . . . .
POST EMPLOYMENT BENEFITS . . . . . . . . . . . . . . .
FUNDS ON HAND . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
20
21
22
22
22
GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . .
LARGER EMPLOYERS . . . . . . . . . . . . . . . . . . . . . . . .
U.S. CENSUS DATA . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMPLOYMENT/UNEMPLOYMENT DATA . . . . . . .
BUILDING PERMITS . . . . . . . . . . . . . . . . . . . . . . . . . .
26
26
27
28
28
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . A-1
FORM OF LEGAL OPINION . . . . . . . . . . . . . . . . . . . . . . . B-1
ILLINOIS PROPERTY VALUATIONS . . . . . . . . . . . . . . . . 11
PROPERTY TAX ASSESSMENT . . . . . . . . . . . . . . . . 11
BOOK-ENTRY-ONLY SYSTEM . . . . . . . . . . . . . . . . . . . . C-1
PROPERTY TAX EXTENSION LIMITATION LAW . . . .
CURRENT PROPERTY VALUATIONS . . . . . . . . . . .
2015 EQUALIZED ASSESSED VALUE BY
CLASSIFICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TREND OF VALUATIONS . . . . . . . . . . . . . . . . . . . . .
LARGER TAXPAYERS . . . . . . . . . . . . . . . . . . . . . . . .
11
12
DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DIRECT GENERAL OBLIGATION DEBT . . . . . . . . .
OTHER OBLIGATIONS . . . . . . . . . . . . . . . . . . . . . . . .
GENERAL OBLIGATION DEBT LIMIT . . . . . . . . . . .
SCHEDULE OF BONDED INDEBTEDNESS . . . . . . .
OVERLAPPING DEBT . . . . . . . . . . . . . . . . . . . . . . . . .
DEBT RATIOS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEBT PAYMENT HISTORY . . . . . . . . . . . . . . . . . . . .
FUTURE FINANCING . . . . . . . . . . . . . . . . . . . . . . . . .
14
14
14
14
15
16
17
17
17
FORM OF CONTINUING DISCLOSURE CERTIFICATE D-1
NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1
12
12
13
iii
THE BOARD OF LIBRARY TRUSTEES
Term Expires
Peggy J. Danhof
President
2019
Robert A. Kalnicky
Vice President
2017
Steven J. Prodehl
Secretary
2021
Kathryn J. Spindel
Treasurer
2019
Thomas J. Gilligan
Trustee
2021
Dennis R. Raga
Trustee
2021
Ruth M. Newell
Trustee
2017
ADMINISTRATION
Paul Mills, Executive Director
Shirley Williams, Finance Manager
PROFESSIONAL SERVICES
Tressler LLP, District Attorney, Bolingbrook, Illinois
Chapman and Cutler LLP, Bond Counsel, Chicago, Illinois
Ehlers & Associates, Inc., Municipal Advisors, Chicago, Illinois
(Other offices located in Roseville, Minnesota, Pewaukee, Wisconsin and Denver, Colorado)
iv
INTRODUCTORY STATEMENT
This Preliminary Official Statement contains certain information regarding the Fountaindale Public Library District,
Illinois (the "District"), and the issuance of its $9,920,000* General Obligation Refunding Library Bonds, Series
2016A (the "Bonds"). Any descriptions or summaries of the Bonds, statutes, or documents included herein are not
intended to be complete and are qualified in their entirety by reference to such statutes and documents and the form
of the Bonds to be included in the ordinance authorizing the sale of the Bonds, as supplemented by a notification of
sale of bonds (together, the "Bond Ordinance") adopted by The Board of Library Trustees on July 21, 2016.
Inquiries may be directed to Ehlers & Associates, Inc. ("Ehlers" or the "Municipal Advisor"), Chicago, Illinois, (312)
638-5250, the District's Municipal Advisor. A copy of this Official Statement may be downloaded from Ehlers’ web
site at www.ehlers-inc.com by connecting to the link to the Bond Sales and following the directions at the top of the
site.
THE BONDS
GENERAL
The Bonds will be issued in fully registered form as to both principal and interest in denominations of $5,000 each
or any integral multiple thereof, and will be dated, as originally issued, as of September 14, 2016. The Bonds will
mature on February 1 in the years and amounts set forth on the cover of this Preliminary Official Statement. Interest
will be payable on February 1 and August 1 of each year, commencing February 1, 2017, to the registered owners
of the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a
business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of
twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board
("MSRB"). The rate for any maturity may not be more than 2.00% less than the rate for any preceding
maturity. (For example, if a rate of 4.50% is proposed for the 2019 maturity, then the lowest rate that may be
proposed for any later maturity is 2.50%.) All Bonds of the same maturity must bear interest from the date of issue
until paid at a single, uniform rate. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1%. The
rate or rates named shall not exceed 5.00%.
Unless otherwise specified by the purchaser, the Bonds will be registered in the name of Cede & Co., as nominee for
The Depository Trust Company, New York, New York ("DTC"). (See "Book-Entry-Only System" herein.) As long
as the Bonds are held under the book-entry system, beneficial ownership interests in the Bonds may be acquired in
book-entry form only, and all payments of principal of, premium, if any, and interest on the Bonds shall be made
through the facilities of DTC and its participants. If the book-entry system is terminated, principal of, premium, if
any, and interest on the Bonds shall be payable as provided in the Bond Ordinance.
The District has selected Bond Trust Services Corporation, Roseville, Minnesota, to act as bond registrar and paying
agent. Bond Trust Services Corporation and Ehlers are affiliate companies. The District will pay the charges for
Bond Registrar services. The District reserves the right to remove the Bond Registrar and to appoint a successor.
OPTIONAL REDEMPTION
At the option of the District, the Bonds maturing on or after February 1, 2026 shall be subject to optional redemption
prior to maturity on February 1, 2025 and on any date thereafter, at a price of par plus accrued interest.
Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection
of the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the District. If only part of
the Bonds having a common maturity date are called for redemption, then the District or Bond Registrar will
1
notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each
participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial
ownership interest in such maturity to be redeemed.
Notice of such call shall be given by mailing a notice not more than 60 days and not less than 30 days prior to the date
fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration
books.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed are received by the Bond Registrar
prior to the giving of a notice of redemption, such notice may, at the option of the District, state that said redemption
will be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date fixed for redemption.
If such moneys are not received, such notice will be of no force and effect, the District will not redeem such Bonds,
and the Bond Registrar will give notice, in the same manner in which the notice of redemption has been given, that
such moneys were not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption
date, the District will deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of
all the Bonds or portions of Bonds which are to be redeemed on the date.
Subject to the provisions for a conditional redemption described above, notice of redemption having been given and
described above and in the Bond Ordinance, the Bonds or portions of Bonds so to be redeemed will, on the
redemption date, become due and payable at the redemption price therein specified, and from and after such date
(unless the District 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 will be
paid by the Bond Registrar at the redemption price.
AUTHORITY; PURPOSE
The Bonds are being issued pursuant to the Public Library District Act of 1991of the State of Illinois and the Local
Government Debt Reform Act of the State of Illinois, and all laws amendatory thereof and supplementary thereto.
Proceeds of the Bonds will be used to refund the District’s outstanding General Obligation Library Refunding Bonds,
Series 2008 (the “2008 Bonds”) of the District as follows:
Issue Being Refunded
Series 2008 Bonds
Date of
Refunded
Issue
Call
Date
Call
Price
10/28/08
2/1/18
Par
Maturities
Being
Refunded
(February 1)
2020
2021
2022
2023
2024
2025
2026
2027
2028
Interest
Rates
4.20%
4.30%
4.40%
4.40%
4.50%
4.50%
4.60%
4.60%
5.00%
Total Maturities Being Refunded
2
Principal
to be
Refunded
$
0
800,000
800,000
800,000
900,000
900,000
900,000
1,140,000
2,960,000
$6,240,000
CUSIP
Base
350830
AQ8
AR6
AS4
AT2
AU9
AV7
AW5
AX3
AY1
Certain proceeds received from the sale of the Bonds will be deposited in an Escrow Account (the “Escrow Account”)
to be held by U.S. Bank, National Association, Chicago, Illinois (the “Escrow Agent”), under the terms of an Escrow
Agreement, dated as of the date of issuance of the Bonds, between the District and the Escrow Agent. The moneys
so deposited in the Escrow Account will be applied by the Escrow Agent to purchase direct non-callable obligations
of, or obligations guaranteed by the full faith and credit of, the United States of America (the “Government
Securities”) and to provide an initial cash deposit. The Government Securities together with interest earnings thereon
and a beginning cash deposit will be sufficient to pay when due the principal of and interest on the Refunded Bonds
up to and including the maturity or prior redemption dates thereof.
The accuracy of (a) the mathematical computations regarding the adequacy of the maturing principal of and interest
earnings on the Government Securities together with an initial cash deposit in the Escrow Account to pay the debt
service described above on the Refunded Bonds, and (b) the mathematical computations supporting the conclusion
that the Bonds are not “arbitrage bonds” under Section 148 of the Internal Revenue Code of 1986, as amended (the
“Code”) will be verified by Barthe & Wahrman, Certified Public Accountants, Bloomington, Minnesota (the
“Verification Agent”). Such verification shall be based upon information supplied by the Underwriter.
The District will continue to pay the principal of and interest due on the non-callable 2008 Bonds through
February 1, 2018.
ESTIMATED SOURCES AND USES*
Sources
Par Amount of Bonds
Total Sources
$9,920,000
Deposit to Net Cash Escrow Fund
Contingency
Estimated Discount
Finance Related Expenses
Total Uses
$9,778,327
2,153
59,520
80,000
$9,920,000
Uses
$9,920,000
SECURITY
The Bonds are valid and legally binding upon the District and are payable from any funds of the District legally
available for such purpose, and all taxable property in the District is subject to the levy of taxes to pay the same
without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the
Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting
creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial
discretion.
3
RATING
General obligation debt of the District, with the exception of any outstanding credit enhanced issues, is currently rated
"AA" by Standard & Poor’s.
The District has requested a rating on this issue from Standard & Poor's, and bidders will be notified as to the assigned
rating prior to the sale. Such rating reflects only the views of such organization and explanations of the significance
of such rating may be obtained from Standard & Poor's. Generally, a rating agency bases its rating on the information
and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that such
rating will continue for any given period of time or that it will not be revised downward or withdrawn entirely by such
rating agency, if in the judgement of such rating agency circumstances so warrant. Any such downward revision or
withdrawal of such rating may have an adverse effect on the market price of the Bonds.
Such rating is not to be construed as a recommendation of the rating agency to buy, sell or hold the Bonds, and the
rating assigned by the rating agency should be evaluated independently. Except as may be required by the Disclosure
Undertaking described under the heading "CONTINUING DISCLOSURE" neither the District nor the underwriter
undertake responsibility to bring to the attention of the owner of the Bonds any proposed changes in or withdrawal
of such rating or to oppose any such revision or withdrawal.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 promulgated by the Securities and Exchange
Commission, pursuant to the Securities Exchange Act of 1934 (hereinafter the "Rule"), the District shall covenant
to take certain actions pursuant to a Resolution adopted by The Board of Library Trustees by entering into a
Continuing Disclosure Undertaking (the "Disclosure Undertaking") for the benefit of holders, including beneficial
holders. The Disclosure Undertaking requires the District to provide electronically or in the manner otherwise
prescribed certain financial information annually and to provide notices of the occurrence of certain events
enumerated in the Rule. The details and terms of the Disclosure Undertaking for this issue are set forth in Appendix
D to be executed and delivered by the District at the time of delivery of the Bonds. Such Disclosure Undertaking
will be in substantially the form attached hereto.
In the previous five years, the District believes it has not failed to comply in all material respects with its prior
undertakings under the Rule.
A failure by the District to comply with any Disclosure Undertaking will not constitute an event of default on this
issue or any issue outstanding. However, such a failure may adversely affect the transferability and liquidity of the
Bonds and their market price.
The District will file its continuing disclosure information using the Electronic Municipal Market Access ("EMMA")
system or any system that may be prescribed in the future. Investors will be able to access continuing disclosure
information filed with the MSRB at www.emma.msrb.org. Ehlers is currently engaged as disclosure dissemination
agent for the District.
4
LEGAL OPINION
An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will be
furnished by Chapman and Cutler LLP, Bond Counsel to the District, and will be available at the time of delivery
of the Bonds. The legal opinion will be issued on the basis of existing law and will state that the Bonds are valid and
binding general obligations of the District; provided that the rights of the owners of the Bonds and the enforceability
of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting
creditors' rights and by equitable principles (which may be applied in either a legal or equitable proceeding).
TAX EXEMPTION
Federal tax law contains a number of requirements and restrictions which apply to the Bonds, including investment
restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond
proceeds and the facilities financed therewith, and certain other matters. The District has covenanted to comply with
all requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross income for
federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the Bonds to
become includable in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.
Subject to the District's compliance with the above-referenced covenants, under present law, in the opinion of Bond
Counsel, interest on the Bonds is excludable from the gross income of the owners thereof for federal income tax
purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for
individuals and corporations, but interest on the Bonds is taken into account, however, in computing an adjustment
used in determining the federal alternative minimum tax for certain corporations.
In rendering its opinion, Bond Counsel will rely upon certifications of the District with respect to certain material facts
within the District's knowledge and upon the mathematical computation of the yield on the Bonds and the yield on
certain investments by the Verification Agent. Bond Counsel’s opinion represents its legal judgment based upon its
review of the law and the facts that it deems relevant to render such opinion and is not a guarantee of a result.
The Internal Revenue Code of 1986, as amended (the "Code"), includes provisions for an alternative minimum tax
("AMT") for corporations in addition to the corporate regular tax in certain cases. The AMT, if any, depends upon
the corporation's alternative minimum taxable income ("AMTI"), which is the corporation's taxable income with
certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain
exceptions) is an amount equal to 75% of the excess of such corporation's "adjusted current earnings" over an amount
equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). "Adjusted
current earnings" would include certain tax-exempt interest, including interest on the Bonds.
Ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including,
without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies,
certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may
be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations. Prospective
purchasers of the Bonds should consult their tax advisors as to the applicability of any such collateral consequences.
The issue price (the "Issue Price") for each maturity of the Bonds is the price at which a substantial amount of such
maturity of the Bonds is first sold to the public. The Issue Price of a maturity of the Bonds may be different from the
price set forth, or the price corresponding to the yield set forth, on the cover page hereof.
5
If the Issue Price of a maturity of the Bonds is less than the principal amount payable at maturity, the difference
between the Issue Price of each such maturity, if any, of the Bonds (the "OID Bonds") and the principal amount
payable at maturity is original issue discount.
For an investor who purchases an OID Obligation in the initial public offering at the Issue Price for such maturity and
who holds such OID Obligation to its stated maturity, subject to the condition that the District complies with the
covenants discussed above, (a) the full amount of original issue discount with respect to such OID Obligation
constitutes interest which is excludable from the gross income of the owner thereof for federal income tax purposes;
(b) such owner will not realize taxable capital gain or market discount upon payment of such OID Obligation at its
stated maturity; (c) such original issue discount is not included as an item of tax preference in computing the
alternative minimum tax for individuals and corporations under the Code, but is taken into account in computing an
adjustment used in determining the alternative minimum tax for certain corporations under the Code, as described
above; and (d) the accretion of original issue discount in each year may result in an alternative minimum tax liability
for corporations or certain other collateral federal income tax consequences in each year even though a corresponding
cash payment may not be received until a later year. Based upon the stated position of the Illinois Department of
Revenue under Illinois income tax law, accreted original issue discount on such OID Bonds is subject to taxation as
it accretes, even though there may not be a corresponding cash payment until a later year. Owners of OID Bonds
should consult their own tax advisors with respect to the state and local tax consequences of original issue discount
on such OID Bonds.
Owners of the Bonds who dispose of Bonds prior to the stated maturity (whether by sale, redemption or otherwise),
purchase Bonds in the initial public offering, but at a price different from the Issue Price or purchase Bonds
subsequent to the initial public offering should consult their own tax advisors.
If an Obligation is purchased at any time for a price that is less than the Obligation’s stated redemption price at
maturity or, in the case of an OID Obligation, its Issue Price plus accreted original issue discount (the "Revised Issue
Price"), the purchaser will be treated as having purchased an Obligation with market discount subject to the market
discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable
ordinary income and is recognized when an Obligation is disposed of (to the extent such accrued discount does not
exceed gain realized) or, at the purchaser's election, as it accrues. Such treatment would apply to any purchaser who
purchases an OID Obligation for a price that is less than its Revised Issue Price. The applicability of the market
discount rules may adversely affect the liquidity or secondary market price of such Obligation. Purchasers should
consult their own tax advisors regarding the potential implications of market discount with respect to the Bonds.
An investor may purchase an Obligation at a price in excess of its stated principal amount. Such excess is
characterized for federal income tax purposes as "bond premium" and must be amortized by an investor on a constant
yield basis over the remaining term of the Obligation in a manner that takes into account potential call dates and call
prices. An investor cannot deduct amortized bond premium relating to a tax-exempt bond. The amortized bond
premium is treated as a reduction in the tax-exempt interest received. As bond premium is amortized, it reduces the
investor’s basis in the Obligation. Investors who purchase an Obligation at a premium should consult their own tax
advisors regarding the amortization of bond premium and its effect on the Obligation’s basis for purposes of
computing gain or loss in connection with the sale, exchange, redemption or early retirement of the Obligation.
There are or may be pending in the Congress of the United States legislative proposals, including some that carry
retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the
market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or
whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the Bonds should
consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no
opinion regarding any pending or proposed federal tax legislation.
6
The Internal Revenue Service (the "Service") has an ongoing program of auditing tax-exempt obligations to determine
whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income of the
owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an
audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the District as a
taxpayer and the holders of the Obligation may have no right to participate in such procedure. The commencement
of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless
of the ultimate outcome.
Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the
Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any
such payments to any Obligation owner who fails to provide an accurate Form W-9 Request for Taxpayer
Identification Number and Certification, or a substantially identical form, or to any Obligation owner who is notified
by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The
reporting and backup withholding requirements do not affect the excludability of such interest from gross income for
federal tax purposes.
Interest on the Bonds is not exempt from present State of Illinois income taxes. Ownership of the Bonds may result
in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such
collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their
tax advisors regarding the applicability of any such state and local taxes.
CERTAIN LEGAL MATTERS
Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal
opinion of Bond Counsel who has been retained by, and acts as, Bond Counsel to the District. Bond Counsel has
not been retained or consulted on disclosure matters, and has not undertaken to review or verify the accuracy,
completeness or sufficiency of this Preliminary Official Statement or other offering material relating to the Bonds,
and assumes no responsibility for the statements or information contained in or incorporated by reference in this
Preliminary Official Statement, except that in its capacity as Bond Counsel, Chapman and Cutler LLP has, at the
request of the District, reviewed only those portions of this Official Statement involving the description of the Bonds,
the security for the Bonds (excluding forecasts, projections, estimates or any other financial or economic information
in connection therewith), the description of the federal tax exemption of interest on the Bonds and the "bank qualified"
status of the Bonds. This review was undertaken solely at the request and for the benefit of the District and did not
include any obligation to establish or confirm factual matters set forth herein.
QUALIFIED TAX-EXEMPT OBLIGATIONS
Subject to the District’s compliance with certain covenants, in the opinion of Bond Counsel, the Bonds are “qualified
tax-exempt obligations” under the small issuer exception provided under Section 265(b)(3) of the Code, which affords
banks and certain other financial institutions more favorable treatment of their deduction for interest expense than
would otherwise be allowed under Section 265(b)(2) of the Code.
7
MUNICIPAL ADVISOR
Ehlers has served as municipal advisor to the District in connection with the issuance of the Bonds. The Municipal
Advisor cannot participate in the underwriting of the Bonds. The financial information included in this Official
Statement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit or
certified forecast of future events and may not conform with accounting principles applicable to compilations of
financial information. Ehlers is not a firm of certified public accountants. Ehlers is registered with the Securities and
Exchange Commission and the MSRB as a Municipal Advisor.
MUNICIPAL ADVISOR AFFILIATED COMPANIES
Bond Trust Services Corporation ("BTSC") and Ehlers Investment Partners, LLC ("EIP") are affiliate companies of
Ehlers. BTSC is chartered by the State of Minnesota and authorized in Minnesota, Wisconsin and Illinois to transact
the business of a limited purpose Trust Company. BTSC provides paying agent services to debt issuers. EIP is a
Registered Investment Advisor with the Securities and Exchange Commission. EIP assists issuers with the investment
of bond proceeds or investing other issuer funds. This includes escrow bidding agent services. Issuers, such as the
District, have or may retain BTSC and/or EIP to provide these services. If hired, BTSC and/or EIP would be retained
by the District under an agreement separate from Ehlers.
INDEPENDENT AUDITORS
The basic financial statements of the District for the fiscal year ended June 30, 2015 have been audited by Lauterbach
& Amen, Warrenville, Illinois, independent auditors (the "Auditor"). The report of the Auditor, together with the basic
financial statements, component units financial statements, and notes to the financial statements are attached hereto
as "APPENDIX A – FINANCIAL STATEMENTS". The Auditor has not been engaged to perform and has not
performed, since the date of its report included herein, any procedures on the financial statements addressed in that
report. The Auditor also has not performed any procedures relating to the Official Statement.
RISK FACTORS
Following is a description of possible risks to holders of the Bonds without weighting as to probability. This
description of risks is not intended to be all-inclusive, and there may be other risks not now perceived or listed here.
Taxes: The Bonds are general obligations of the District, the ultimate payment of which rests in the District's ability
to levy and collect sufficient taxes to pay debt service. In the event of delayed billing, collection or distribution of
property taxes, sufficient funds may not be available to the District in time to pay debt service when due.
State Actions: Many elements of local government finance, including the issuance of debt and the levy of property
taxes, are controlled by State government. Future actions of the State may affect the overall financial condition of
the District, the taxable value of property within the District, and the ability of the District to levy and collect property
taxes.
8
Future Changes in Law: Various State and federal laws, regulations and constitutional provisions apply to the
District and to the Bonds. The District can give no assurance that there will not be a change in or interpretation of
any such applicable laws, regulations and provisions which would have a material effect on the District or the taxing
authority of the District.
Ratings; Interest Rates: In the future, the District's credit rating may be reduced or withdrawn, or interest rates for
this type of obligation may rise generally, either possibility resulting in a reduction in the value of the Bonds for resale
prior to maturity.
Tax Exemption: If the federal government taxes all or a portion of the interest on municipal bonds or notes or if the
State government increases its tax on interest on bonds and notes, directly or indirectly, or if there is a change in
federal or state tax policy, then the value of these Bonds may fall for purposes of resale. Noncompliance by the
District with the covenants in the Award Resolution relating to certain continuing requirements of the Code may result
in inclusion of interest to be paid on the Bonds in gross income of the recipient for United States income tax purposes,
retroactive to the date of issuance.
Continuing Disclosure: A failure by the District to comply with the Disclosure Undertaking for continuing
disclosure (see "CONTINUING DISCLOSURE") will not constitute an event of default on the Bonds. Any such
failure must be reported in accordance with the Rule and must be considered by any broker, dealer, or municipal
securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Such a failure may
adversely affect the transferability and liquidity of the Bonds and their market price.
State Economy; Local Government Aids: State cash flow problems could affect local governments and possibly
increase property taxes.
Book-Entry-Only System: The timely credit of payments for principal and interest on the Bonds to the accounts of
the Beneficial Owners of the Bonds may be delayed due to the customary practices, standing instructions or for other
unknown reasons by DTC participants or indirect participants. Since the notice of redemption or other notices to
holders of these obligations will be delivered by the District to DTC only, there may be a delay or failure by DTC,
DTC participants or indirect participants to notify the Beneficial Owners of the Bonds.
Economy: A combination of economic, climatic, political or civil disruptions or terrorist actions outside of the
control of the District, including loss of major taxpayers or major employers, could affect the local economy and result
in reduced tax collections and/or increased demands upon local government. Real or perceived threats to the financial
stability of the District may have an adverse affect on the value of the Bonds in the secondary market.
Secondary Market for the Bonds: No assurance can be given that a secondary market will develop for the purchase
and sale of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. The
underwriters are not obligated to engage in secondary market trading or to repurchase any of the Bonds at the request
of the owners thereof. Prices of the Bonds as traded in the secondary market are subject to adjustment upward and
downward in response to changes in the credit markets and other prevailing circumstances. No guarantee exists as
to the future market value of the Bonds. Such market value could be substantially different from the original purchase
price.
Bankruptcy: The rights and remedies of the holders may be limited by and are subject to the provisions of federal
bankruptcy laws, to other laws, or equitable principles that may affect the enforcement of creditors’ rights, to the
exercise of judicial discretion in appropriate cases and to limitations on legal remedies against local governments.
The opinion of Bond Counsel to be delivered with respect to the Bonds will be similarly qualified.
9
ILLINOIS PROPERTY VALUATIONS
PROPERTY TAX ASSESSMENT
State law requires local assessors to conduct the assessment of all real property and non-operating railroad property
to determine the fair market value of each parcel. Railroad property used for transportation is assessed by the Illinois
Department of Revenue. To determine the Equalized Assessed Value of a property, Illinois statutes set the level of
assessment at 33 1/3% of fair market value of the property. The Illinois Department of Revenue reviews local
assessments (after any appeal and review at the county level) to ensure compliance with the 33 1/3% assessment level.
A state multiplier is applied to any county, if needed, so that all counties are equally applying the 33 1/3% standard.
State law provides some relief to certain taxpayers in the form of partial exemptions and some limitations on increases
in assessed valuation. The aggregate Equalized Assessed Value for all parcels as assessed by the local assessor within
each taxing jurisdiction, including the valuation of operating railroad property, certified pollution control facilities,
and farms that are assessed by the State, constitute the total tax base that is used by the county to calculate tax rates
for that taxing jurisdiction.
Property taxes of the District are levied and filed with the DuPage and Will County Clerks. The County Clerks
determine the maximum tax extension allowing for statutory limitations, such as the Property Tax Extension
Limitation Law and any rate limitations. The tax rates and taxes payable for each parcel of property, subject to the
levies filed and any limitations determined, are computed and given to the billing and collecting officials of the
county. Taxes are due and payable in two installments following the year in which the levy was made. Those
installments are usually payable on June 1 and September 1.
PROPERTY TAX EXTENSION LIMITATION LAW
The Property Tax Extension Limitation Law of the State of Illinois, as amended (the "Tax Limitation Law") became
effective on October 1, 1991 for the Illinois counties of DuPage, Kane, Lake, McHenry and Will (the Cook County
"collar counties") and on March 1, 1995 for Cook County. In general, the Tax Limitation Law limits the annual
growth in the amount of taxes to be extended by individual taxing bodies, including the District, to the "Extension
Limitation". The extension limitation under the Tax Limitation Law is (i) the lesser of 5% or the percentage increase
in the Consumer Price Index during the calendar year preceding the levy year or (ii) the rate of increase approved by
voters at a referendum election held pursuant to the Tax Limitation Law.
The effect of the Limitation Law is to limit the amount of property taxes that can be extended for a taxing body. In
addition, general obligation bonds, notes and installment contracts payable from ad valorem taxes unlimited as to rate
and amount cannot be issued by the affecting taxing bodies unless they are approved by referendum, are alternate
bonds or are for certain refunding purposes (such as the Bonds).
The Limitation Law does not apply to taxes levied by the District to pay the principal of and interest on the Bonds.
10
CURRENT PROPERTY VALUATIONS
Will County
DuPage County
Total
2015 Estimated
Market Value
2015 Equalized
Assessed Value
$ 5,274,362,235
$ 1,758,120,745
109,696,890
36,565,630
$ 5,384,059,125
$ 1,794,686,375
2015 EQUALIZED ASSESSED VALUE BY CLASSIFICATION1
2015 Equalized
Assessed Value
Percent of
Total Value
$1,043,454,082
58.14%
Commercial
276,696,240
15.42%
Industrial
472,226,742
26.31%
Agricultural
1,005,605
0.06%
Railroad
1,303,706
0.07%
$1,794,686,375
100.00%
Residential
Total
TREND OF VALUATIONS
1
Year
Estimated
Market Value
Equalized
Assessed Value
Percent Increase/Decrease
In Equalized Value
2011
$6,192,451,146
$2,064,150,382
-6.34%
2012
5,602,861,707
1,867,620,569
-9.52%
2013
5,339,137,221
1,779,712,407
-4.71%
2014
5,295,615,162
1,765,205,054
-0.82%
2015
5,384,059,125
1,794,686,375
1.67%
Local assessors set the fair market value for all real property and railroad property not used for transportation
purposes. Railroad property used for transportation purposes is assessed by the Illinois Department of Revenue.
11
LARGER TAXPAYERS 1
Taxpayer
Type of Property
PDV Midwest Refining
Industrial
SOF-IX PB Owner LP
Commercial
Bolingbrook Investors LLC
2015 Equalized
Assessed Value
$
Percent of
District's Total
Equalized
Assessed Value
106,829,193
5.95%
20,402,700
1.14%
Industrial
9,343,000
0.52%
Teachers Ins & Annuity of America
Industrial
7,564,305
0.42%
Hart 90 Carlow LLC
Industrial
7,349,605
0.41%
FRG River Run I LLC & II LLC
Commercial
7,231,000
0.40%
Lit Industrial LP
Industrial
7,200,000
0.40%
G&W Electric Co
Industrial
7,136,200
0.40%
AMB Instnl Alliance FND III LP
Industrial
7,110,000
0.40%
DCT 1450 Remington LLC
Industrial
6,510,100
0.36%
$186,676,103
10.40%
Total
District's Total 2015 EAV
$1,794,686,375
Source: Property Valuations and Larger Taxpaying Parcels provided by Will County and DuPage Counties.
1
Some of the taxpayers listed above may own multiple parcels. The valuations stated above for some of the
taxpayers may not include all parcels or all classifications of property.
12
DEBT
DIRECT GENERAL OBLIGATION DEBT (see schedule following) (as of the issuance of the Bonds and refunding
of 2008 Bonds)*
The 2008 Bonds
$
General Obligation Library Building Bonds dated February 11, 2009
800,000
15,725,000
Taxable General Obligation Library Building Bonds dated December 15, 2009
8,525,000
The Bonds
9,920,000
$ 34,970,000
Total General Obligation Debt*
OTHER OBLIGATIONS - None
GENERAL OBLIGATION DEBT LIMIT (includes the Bonds)*
Illinois Library Districts have no statutory debt limit for indebtedness incurred for acquiring or improving sites,
constructing, extending or improving and equipping sites for public library purposes or for the establishment, support
and maintenance of a public library. The debt limit for other obligations is 2.875% of the District’s equalized assessed
valuation.
2015 Equalized Assessed Value
Multiply by
$ 1,794,686,375
0.02875
Current Statutory General Obligation Debt Limit
Less: Direct General Obligation Debt Applied to Debt Limit
$
51,597,233
0
Unused General Obligation Debt Limit
$
51,597,233
13
14
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
$117,600
800,000
$800,000
Interest
16,800
33,600
33,600
33,600
Principal
2/1
Maturity
Fiscal Year
Ending 6/30
10/28/2008
$10,000,000
Dated
Amount
$15,725,000
1,175,000
1,300,000
1,475,000
850,000
1,025,000
1,200,000
1,425,000
1,550,000
1,800,000
2,000,000
1,925,000
Principal
2/1
313,406
594,500
555,500
496,500
462,500
421,500
373,500
316,500
250,625
174,125
86,625
Interest
$4,045,281
2/11/2009
$20,750,000
Library Building Bonds Library Building Bonds
SCHEDULE OF BONDED INDEBTEDNESS
General Obligation Debt Being Paid From Taxes
(As of September 14, 2016)
FOUNTAINDALE PUBLIC LIBRARY DISTRICT
$8,525,000
100,000
200,000
600,000
3,725,000
3,900,000
Principal
$6,697,275
505,975
505,975
505,975
505,975
505,975
505,975
505,975
505,975
505,975
505,975
500,175
488,575
453,775
195,000
Interest
12/15/2009
$8,750,000
Series 2009B
2/1 and 12/1/2029
Library Building Bonds
$1,660,368
72,680
189,110
187,745
186,275
184,700
170,220
155,175
139,605
122,123
104,085
86,085
62,565
Interest*
$9,920,000
150,000
105,000
105,000
105,000
905,000
885,000
865,000
945,000
925,000
900,000
1,120,000
2,910,000
Principal*
9/14/2016
$9,920,000*
Series 2016A
2/1
Library Refunding Bonds
$34,970,000
0
1,325,000
1,405,000
1,580,000
1,755,000
1,930,000
2,085,000
2,290,000
2,495,000
2,725,000
3,000,000
3,245,000
3,510,000
3,725,000
3,900,000
Total
Principal*
$12,520,524
0
908,862
1,323,185
1,282,820
1,222,350
1,153,175
1,097,695
1,034,650
962,080
878,723
784,185
672,885
551,140
453,775
195,000
Total
Interest*
$47,490,524
0
2,233,862
2,728,185
2,862,820
2,977,350
3,083,175
3,182,695
3,324,650
3,457,080
3,603,723
3,784,185
3,917,885
4,061,140
4,178,775
4,095,000
34,970,000
33,645,000
32,240,000
30,660,000
28,905,000
26,975,000
24,890,000
22,600,000
20,105,000
17,380,000
14,380,000
11,135,000
7,625,000
3,900,000
0
Total
Principal
P & I* Outstanding*
0.00%
3.79%
7.81%
12.32%
17.34%
22.86%
28.82%
35.37%
42.51%
50.30%
58.88%
68.16%
78.20%
88.85%
100.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Fiscal Year
% Paid Ending 6/30
OVERLAPPING DEBT1
District's
Proportionate
Share
Total
2015 EAV
% In
District
Total
G.O. Debt2
$ 18,461,135,662
9.52%
$ 16,935,000
Will County Forest Preserve
18,461,135,662
9.52%
124,699,709
11,871,412
DuPage County
33,900,296,790
0.11%
43,590,000
47,949
DuPage County Forest Preserve
33,900,296,790
0.11%
169,664,637
186,631
Bolingbrook Park District
1,827,027,979
88.77%
21,290,000
18,899,133
Naperville Park District
2,062,442,277
0.05%
25,785,000
12,893
Lemont Park District
26,908,180
33.48%
11,345,000
3,798,306
Woodridge Park District
66,124,117
3.45%
3,185,000
109,883
Village of Bolingbrook
1,825,413,159
90.91%
133,100,000
121,001,210
Village of Romeoville
1,065,515,505
0.25%
86,585,884
216,465
School District Number 68
739,005,137
4.93%
1,274,840
62,850
676,146,197
18.26%
7,725,000
1,410,585
265,454,474
0.04%
11,016,049
4,406
School District Number 202-U
2,793,618,803
7.44%
6,775,000
504,060
2,598,466,258
0.65%
246,740,000
1,603,810
2,172,781,711
63.21%
184,776,123
116,796,987
High School District Number 99
3,942,254,093
0.92%
23,609,207
217,205
High School District Number 205
2,212,775,634
5.58%
5,435,000
303,273
Community College 502
2,360,738,851
3.76%
208,870,000
7,853,512
Community College 525
15,054,518,164
11.33%
79,505,000
9,007,917
Taxing Body
Will County
District‘s Share of Total Overlapping Debt
$
1,612,212
$295,520,698
1
Overlapping debt is as of the dated date of the Bonds. Only those taxing jurisdictions with general obligation debt
outstanding are included in this section. Alternate Revenue Source Debt is not shown in this table. Multiple taxing
bodies have alternate source revenue debt such as: DuPage County ($7,373,636); Bolingbrook Park District
($7,176,877); High School District Number 99 ($5,900,000); Community College 502 ($5,295,000); Community
College 525 ($125,740,000); and Village of Lemont ($29,620,000).
2
Outstanding debt is based on information in official statements obtained on EMMA and the Municipal Advisor's
records.
15
DEBT RATIOS
Total General Obligation Debt*
District's Share of Total Overlapping Debt
Total*
G.O. Debt
Debt/Estimated
Market Value
$5,384,059,125
Debt/ Per Capita
Pop. 67,683
$ 34,970,000
0.65%
$517
301,304,072
5.60%
4,452
$ 336,274,072
6.25%
$4,968
DEBT PAYMENT HISTORY
The District has no record of default in the payment of principal and interest on its debt.
FUTURE FINANCING
The District has no current plans for additional financing in the next 12 months.
16
TAX LEVIES, COLLECTIONS, AND TAX RATES
TAX LEVIES AND COLLECTIONS
Tax Extension
Collections to Date
and Back Taxes
Percent of Current
and Back Taxes
Collected to Date
2011/12
$9,011,980
$8,939,549
99.20%
2012/13
9,452,203
9,048,916
95.73%
2013/14
10,020,357
10,019,781
99.99%
2014/15
10,247,015
10,236,040
99.89%
2015/16
10,258,634
Tax Year
In process of collection
DISTRICT TAX RATES
Property tax rates are expressed in dollars per $100 of Equalized Assessed Value.
Fund
2011
2012
2013
2014
2015
$0.2974
$0.3361
$0.3625
$0.3587
$0.3778
Audit
0.0001
0.0001
0.0001
0.0006
0.0006
Liability
0.0045
0.0058
0.0074
0.0061
0.0022
Social Security
0.0029
0.0033
0.0031
0.0165
0.0149
IMRF
0.0371
0.0410
0.0398
0.0411
0.0309
Building & Maintenance
0.0136
0.0150
0.0159
0.0177
0.0126
Total Limited Rate
$0.3556
$0.4013
$0.4288
$0.4407
$0.4390
Bond & Interest
$0.0809
$0.1047
$0.1342
$0.1398
$0.1445
Total
$0.4365
$0.5060
$0.5630
$0.5805
$0.5835
Corporate
Source: Tax Collections and Tax Rates have been furnished by Will County.
Public Act 94-0976, effective June 30, 2006 provides that the only ceiling on a particular tax rate is the ceiling set
by statute above which the rate is not permitted to be further increased by referendum or otherwise.
17
TYPICAL TAX BILL
Following is a typical tax bill for a taxpayer living in the Village of Bolingbrook within the District. Property tax rates
are expressed in dollars per $100 of Equalized Assessed Value.
2011
2012
2014
2015
$0.5551
$0.5908
$0.6216
$0.6433
$0.6358
Will County Forest Preserve
0.1693
0.1859
0.1970
0.1977
0.1937
DuPage Township
0.0708
0.0769
0.0805
0.0824
0.0823
5.9062
6.7687
7.3668
7.6318
7.5388
Community College District Number 525
0.2463
0.2768
0.2955
0.3085
0.0000
0.6968
0.8647
0.9823
0.9833
1.0963
0.5429
0.6235
0.6628
0.6704
0.6543
Fountaindale Public Library
0.4365
0.5060
0.5630
0.5805
0.5835
$8.6239
$9.8933
$10.7695
$11.0979
$10.7847
Will County
Total Tax Rate
2013
Source: Tax Collections and Tax Rates have been furnished by Will County.
18
THE DISTRICT
DISTRICT INFORMATION
The District, established in 1970, is governed by an elected seven-member Board of Library Trustees, who are elected
to six-year terms. The appointed Director is responsible for overall daily administration of the District.
The Fountaindale Public Library District, with an estimated population of 67,683 (excludes the Village of
Romeoville) and comprising an area of 21 square miles, is located in Will and DuPage Counties in the Greater
Chicago metropolitan area approximately 25 miles southwest of downtown Chicago in the Village of Bolingbrook.
In 2008, the District de-annexed the Village of Romeoville portion of the District to DesPlaines Valley Public Library
District. The de-annexation was done with the cooperation of the DesPlaines Valley Public Library District Library
Board and the Fountaindale Public Library District Library Board for the purposes of improving library services and
for consolidating library services for residents of the Village of Romeoville.
Transportation
The District is served by I-355 Tollway with a southern extension linking to I-80. I-55 has two interchanges in
Bolingbrook with allows easy access to Chicago or to St. Louis. I-294 is seven miles east of Bolingbrook providing
north and eastbound travel and I-88 is ten miles to the north providing east/west routes. Route 53 and Weber Road
are also main routes. Freight and passenger rail service are provided by all major railroads which converge on the
Chicago area and by local and interstate trucking companies. Local bus transportation is furnished by Pace, which
provides scheduled service throughout the Chicago area. Commercial air freight and passenger service are available
at O'Hare Airport, within 23 miles and Midway Airport, within 25 miles. Clow Airport in Bolingbrook and Joliet
Regional Port District provide regional air transportation.
Parks and Recreation
The Bolingbrook Park District provides residents with recreational facilities in a area of 26 square miles. The Park
District operates three community centers, an indoor/outdoor aquatic park, golf course, banquet hall and restaurant,
two fitness centers, two outdoor skate parks, a sports complex, nature center and conservation area, and 48 parks along
with their many playgrounds, picnic shelters and more over 1,087 acres of land.
Business and Commerce
The extension of the Tollway makes the Village of Bolingbrook one of the most accessible suburbs in the southwest
metropolitan Chicago area with extensive commercial and industrial space. Among other companies, Goya Foods and
WeatherTech are located within Bolingbrook. The Promenade is a major shopping center consisting of 60 shops and
12 restaurants with indoor and outdoor seating. The Promenade is anchored by Macy’s, DSW, H&M, Barnes & Noble
and Bass Pro Shops. The shopping center also includes a movie theatre with in-theatre dining. The shopping area
around the Promenade includes IKEA, Meijer, DSW and many other retailers.
Housing
The median home value in Bolingbrook is approximately $200,000. There are also the executive homes of Americana
Estates. This golf course community has a capacity of 225 homes with prices that range between $600,000 and
$700,000.
19
Education
The District is primarily served by Valley View School District Number 365-U. The School District provides both
elementary and secondary education with 12 elementary schools, five junior high schools, two high schools and
WILCO Area Career Center (a technical high school) and an early childhood center. St. Dominic’s parochial school
provides educational services for pre-kindergarten through eighth grade. Parts of the District are also served by
Naperville School District 203, Indian Prairie School District 204, Plainfield School District 202, Woodridge School
District 68 and Downers Grove High School District 99. Residents have access to four institutions of higher learning
within a five mile radius, Benedictine University, Joliet Junior College, Lewis University and North Central College.
Other numerous facilities are also available in the Chicago metropolitan area.
Health Care
Adventist Bolingbrook Hospital opened in February 2008. It was the first new hospital to be built in Illinois in more
than 25 years. The 138 all private bed hospital specializes in cardiac care, imaging services, Women’s Care Center,
outpatient services, pain treatment and management, surgical services and interventional radiology. The Level II
Trauma Center includes 20 exam rooms, two specialized trauma rooms and a Children’s Emergency Rom. There is
also a 12-bed Intensive Care Unit and electronic medical records. Other nearby health facilities include Rush Copley
Memorial Hospital in Aurora about 6 miles from Bolingbrook; Linden Oaks Hospital in Naperville about 7 miles
away; and The Rock Creek Center in Lemont located about 8 miles away.
EMPLOYEES; PENSIONS AND UNIONS
The District employs a staff of 114. The District is a participant in the Illinois Municipal Retirement Fund (IMRF).
Employees who meet prescribed annual hourly standards are members of IMRF. See the Notes to Financial
Statements in Appendix A for a detailed description of the plans. The District has no bargaining units.
POST EMPLOYMENT BENEFITS
The District provides COBRA health benefits to all prior employees as required by federal law. The District also
provides continued health benefits to eligible retirees as required by Illinois Public Act 86-1444. The prior employees
and retirees pay 100 percent of the premiums. The District has determined the provisions of GASB Statement No. 45
Financial Reporting for Post-Employment Benefits Other Than Pension Funds to be immaterial to the financial
statements based on membership in the plan and the fact that the District has no explicit cost for post-employment
benefits.
20
FUNDS ON HAND (As of June 30, 2016)
Fund
Amount
General
$7,380,637
Special Revenue
1,155,473
Debt Service
1,105,143
Capital Projects
13,771,357
Permanent Funds
652,423
Total Cash and Investments
$24,065,033
LITIGATION
There is no litigation threatened or pending questioning the organization or boundaries of the District or the right of
any of its officers to their respective offices or in any manner questioning their rights and power to execute and deliver
the Bonds or otherwise questioning the validity of the Bonds.
The District’s Attorney reports that any litigation and claims currently pending against the District are being handled
by the District‘s insurance carrier or outside counsel and will not affect the issuance of the Bonds.
21
SUMMARY FINANCIAL INFORMATION
Following are summaries of revenues and expenditures for the District’s General Fund, Non-Governmental Funds
and Special Reserve Fund for the past five fiscal years. These summaries are not purported to be the complete audited
financial statements of the District. The audits have been prepared in accordance with the modified accrual basis of
accounting in conformance with the generally accepted accounting principles. Copies of the complete statements are
available upon request.
FISCAL YEAR ENDING JUNE 30
GENERAL FUND
Revenues
Taxes
Fines and Lost Books
Intergovernmental
Interest
Miscellaneous
2011
2012
2013
2014
2015
$ 6,047,110
66,046
60,550
$ 6,123,032
91,906
132,841
$ 5,569,976
108,654
2,500
$ 6,476,453
127,876
154,158
$ 6,564,414
127,122
149,904
11,345
7,220
9,187
5,260
4,609
104,336
20,937
520,418
45,458
17,680
$ 6,289,387
$ 6,375,936
$ 6,210,735
$ 6,809,205
$ 6,863,729
3,133,452
302,059
379,697
856,021
61,682
22,997
36,906
0
3,325,469
243,972
380,454
897,635
1,890
49,904
56,182
189,823
3,605,053
323,042
418,785
897,705
71,549
58,031
326,000
90,646
3,805,037
362,810
478,182
913,352
154,254
56,920
125,302
0
3,651,918
370,354
438,940
861,089
150,671
59,632
108,375
0
$ 4,792,814
$ 5,145,329
$ 5,790,811
$ 5,895,857
$ 5,640,979
Excess revenues over (under) expenditures $ 1,496,573
$ 1,230,607
$
$
$ 1,222,750
Total Revenues
Expenditures
Current
Culture and Recreation
Personnel Services
Contractual Services
Supplies and Utilities
Library Materials
State Grant
Miscellaneous
Capital Outlay
Debt Service
Total Expenditures
Other Financing Sources (Uses)
Operating transfers in (out)
36,366
21,693
(502,637)
$ (502,637)
$
$
$
$
36,366
$
21,693
Excess of Revenues and Other Financing
Sources over (Under) Expenditures and
Other Uses
$
0
$
0
General Fund Balance July 1
Prior Period Adjustments
Restated General Fund Balance July 1
General Fund Balance June 30
1,400,743
$
0
$ 1,400,743
$ 2,933,682
Total Other financing sources (uses)
2,933,682
$
0
$ 2,933,682
$ 4,185,982
22
419,924
0
4,185,982
$
0
$ 4,185,982
$ 4,103,269
913,348
(18,369)
(18,369)
0
4,103,269
$ (60,551)
$ 4,042,718
$ 4,937,697
0
$
0
$
0
4,937,697
$
0
$ 4,937,697
$ 6,160,447
NONMAJOR GOVERNMENTAL
FUNDS1
2011
2012
2013
2014
2015
Revenues
Taxes
Interest
Total Revenues
$ 1,198,702
17,734
$ 1,216,436
$ 1,272,378
21,693
$ 1,294,071
$ 1,135,796
(3,934)
$ 1,131,862
$ 1,194,165
6,380
$ 1,200,545
$ 1,322,317
5,184
$ 1,327,501
Expenditures
Current
Culture and Recreation
Total Expenditures
947,641
$ 947,641
1,082,141
$ 1,082,141
1,360,661
$ 1,360,661
1,289,909
$ 1,289,909
1,235,856
$ 1,235,856
$
211,930
$ (228,799)
$
(21,693)
(21,693)
$
190,237
$ (228,799)
Excess revenues over (under) expenditures $ 268,795
$
Other Uses
$ 232,429
Nonmajor Governmental Fund Balance
July 1
Prior Period Adjustments
Restated Nonmajor Governmental Fund
Balance July 1
Nonmajor Governmental Fund Balance
June 30
1
(36,366)
(36,366) $
$
0
0
$
$
(89,364) $
0
0
91,645
$
0
0
(89,364) $
91,645
1,499,768
1,732,197
1,922,434
1,693,635
1,604,271
$
0
$ 1,499,768
$
0
$ 1,732,197
$
0
$ 1,922,434
$
0
$ 1,693,635
$
75,301
$ 1,679,572
$ 1,732,197
$ 1,922,434
$ 1,693,635
$ 1,604,271
$ 1,771,217
Nonmajor Funds include Audit Fund, Liability Insurance Fund, Illinois Municipal Retirement and Social Security Fund,
Equipping and Maintenance Fund and Working Cash Fund.
23
2012
2013
2014
SPECIAL RESERVE FUND
2011
Revenues
Interest
Miscellaneous
Total Revenues
198,706
2,493,800
$ 2,692,506
$
$
$
Expenditures
Special Reserve Projects
Principal
Interest
Total Expenditures
$
0
0
0
0
Excess revenues over (under)
expenditures
$
116,322
0
116,322
$
0
0
0
0
$ 2,692,506
$
0
0
Other Uses
Special Reserve Fund Balance July 1
Special Reserve Fund Balance June 30
$
$
0
0
0
0
116,322
$
$
0
0
$ 2,692,506
$
116,322
10,203,239
$12,895,745
12,895,745
$ 13,012,067
Source: Audited Financial Statements of the District.
24
$
1,460
55,236
56,696
$
26,809
0
26,809
$
$
$
0
0
0
0
56,696
$
26,809
$
48,783
$
0
0
$
0
0
$
0
0
$
56,696
$
26,809
$
48,783
13,068,763
$ 13,095,572
$
48,783
0
48,783
0
0
0
0
13,012,067
$ 13,068,763
$
2015
13,095,572
$13,144,355
GENERAL INFORMATION
LARGER EMPLOYERS1
Larger employers within the District include the following:
Firm
Type of Business/Product
Valley View CUSD 365-U
WeatherTech (Corporate office) 3
R.R. Donnelly Logistic3
Ulta Beauty (Corporate office) 3
Adventist Bolingbrook Hospital
Bolingbrook Medical Center3
G & W Electric Co.
COTG
Education
Manufacturing
Direct mail advertising
Park district
Cosmetics
Hospital
Medical center
Government
Electric contractors
Xerox technology consulting firm
Source:
No. of
Employees
2,900
1,159
750
700
700
648
502
304
250
287
2
4
Reference USA (July 2016), written and telephone survey.
1
Bolingbrook also has a large mall called The Promenade, which has 60 shops and 12 restaurants, which includes
1,000-1,200 employees.
2
Reflects company-wide number of employees, not all located at Bolingbrook facility.
3
Located in Bolingbrook.
4
Full-time employees.
25
U.S. CENSUS DATA
Estimated Population Trend: Village of Bolingbrook
2000 Estimated Population
56,321
73,366
74,306
Percent of Change 2000 - 2010
30.26%
Housing Statistics
All Housing Units
2000
2014
Percent of Change
17,884
23,601
31.97%
Source: 2000 and 2014 Census of Population and Housing.
Income and Age Statistics
Village of
Bolingbrook
Will
County
State of
Illinois
United
States
2014 per capita income
$28,049
$30,791
$29,666
$28,051
2014 median household income
$78,230
$76,142
$56,797
$53,046
2014 median family income
$83,740
$87,503
$70,344
$64,585
$1,163
$1,025
$890
$889
2014 median value owner occupied units
$209,500
$212,700
$182,300
$181,400
2014 median age
34.3 yrs.
36.2 yrs.
36.8 yrs.
37.2 yrs.
2014 median gross rent
State of Illinois
94.55%
119.04%
Township % of 2014 per capita income
Township % of 2014 median family income
Source: 2014 American Community Survey (Based on a five-year estimate)
26
United States
99.99%
129.66%
EMPLOYMENT/UNEMPLOYMENT DATA
Rates are not compiled for individual Ilinois communities within counties less than 25,000.
Average Employment
Year
Will County
2012
2013
2014
2015
2016, May
Source:
Average Unemployment
Will County
322,195
324,147
330,751
334,132
340,741
State of Illinois
9.7%
9.7%
7.4%
6.0%
5.6%
9.7%
9.0%
9.1%
7.1%
5.6%
Employment/Unemployment data was furnished by the Illinois Department of Labor.
BUILDING PERMITS
2011
2012
2013
2014
2015
New Single Family Homes
No. of Homes
Stated Value of Single
Family Permits
53
68
108
124
124
$8,978,383
$13,661,492
$18,304,771
$20,447,878
$20,282,596
Source: U.S. Census.
27
APPENDIX A
FINANCIAL STATEMENTS
Potential purchasers should read the included financial statements in their entirety for more complete information
concerning the District’s financial position. Such financial statements have been audited by the Auditor, to the extent
and for the periods indicated thereon. The District has not requested the Auditor to perform any additional
examination, assessments or evaluation with respect to such financial statements since the date thereof, nor has the
District requested that the Auditor consent to the use of such financial statements in this Official Statement. Although
the inclusion of the financial statements in this Official Statement is not intended to demonstrate the fiscal condition
of the District since the date of the financial statements, in connection with the issuance of the Bonds, the District
represents that there have been no material adverse change in the financial position or results of operations of the
District, nor has the District incurred any material liabilities, which would make such financial statements misleading.
Copies of the complete audited financial statements for the past three years and the current budget are available upon
request from Ehlers.
A-1
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-19
A-20
A-21
A-22
A-23
A-24
A-25
A-26
A-27
A-28
A-29
A-30
A-31
A-32
A-33
A-34
A-35
A-36
A-37
A-38
A-39
A-40
A-41
A-42
A-43
A-44
A-45
A-46
A-47
A-48
A-49
A-50
A-51
A-52
A-53
A-54
A-55
APPENDIX B
FORM OF LEGAL OPINION
(See following pages)
B-1
PROPOSED FORM OF OPINION OF BOND COUNSEL
[LETTERHEAD OF CHAPMAN AND CUTLER LLP]
[TO BE DATED CLOSING DATE]
We hereby certify that we have examined certified copy of the proceedings (the
“Proceedings”) of The Board of Library Trustees of the Fountaindale Public Library District,
Will and DuPage Counties, Illinois (the “District”), passed preliminary to the issue by the
District of its fully registered General Obligation Refunding Library Bonds, Series 2016A (the
“Bonds”), to the amount of $_____________, dated ____________, 2016, due serially on
February 1 of the years and in the amounts and bearing interest as follows:
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
$
%
the Bonds due on or after February 1, 20___, being subject to redemption prior to maturity at the
option of the District as a whole or in part in any order of their maturity as determined by the
District (less than all of the Bonds of a single maturity to be selected by the Bond Registrar), on
February 1, 20___, or on any date thereafter, at the redemption price of par plus accrued interest
to the redemption date, as provided in the Proceedings, and we are of the opinion that the
Proceedings show lawful authority for said issue under the laws of the State of Illinois now in
force.
We further certify that we have examined the form of bond prescribed for said issue and
find the same in due form of law, and in our opinion said issue, to the amount named, is valid
and legally binding upon the District and is payable from any funds of the District legally
available for such purpose, and all taxable property in the District is subject to the levy of taxes
to pay the same without limitation as to rate or amount, except that the rights of the owners of the
Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency,
moratorium, reorganization and other similar laws affecting creditors’ rights and by equitable
principles, whether considered at law or in equity, including the exercise of judicial discretion.
It is our opinion that, subject to the District’s compliance with certain covenants, under
present law, interest on the Bonds is excludable from gross income of the owners thereof for
Draft Opinion
2244879
B-2
federal income tax purposes and is not included as an item of tax preference in computing the
alternative minimum tax for individuals and corporations under the Internal Revenue Code of
1986, as amended (the “Code”), but is taken into account in computing an adjustment used in
determining the federal alternative minimum tax for certain corporations. Failure to comply with
certain of such District covenants could cause interest on the Bonds to be includible in gross
income for federal income tax purposes retroactively to the date of issuance of the Bonds.
Ownership of the Bonds may result in other federal tax consequences to certain taxpayers, and
we express no opinion regarding any such collateral consequences arising with respect to the
Bonds. In rendering our opinion on tax exemption, we have relied on the mathematical
computation of the yield on the Bonds and the yield on certain investments by Barthe &
Wahrman, Certified Public Accountants, Bloomington, Minnesota.
It is also our opinion that the Bonds are “qualified tax-exempt obligations” pursuant to
Section 265(b)(3) of the Code.
We express no opinion herein as to the accuracy, adequacy or completeness of any
information furnished to any person in connection with any offer or sale of the Bonds.
In rendering this opinion, we have relied upon certifications of the District with respect to
certain material facts within the District’s knowledge. Our opinion represents our legal judgment
based upon our review of the law and the facts that we deem relevant to render such opinion and
is not a guarantee of a result. This opinion is given as of the date hereof and we assume no
obligation to revise or supplement this opinion to reflect any facts or circumstances that may
hereafter come to our attention or any changes in law that may hereafter occur.
B-3
APPENDIX C
BOOK-ENTRY-ONLY SYSTEM
1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the securities (the
"Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One
fully-registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal
amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue
exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an
additional certificate will be issued with respect to any remaining principal amount of such issue.]
2. DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct
Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges
between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct
Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard &
Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security
("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants
acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership
interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name
of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative
of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC
nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners
of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities
are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of their customers.
C-1
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
[Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding
the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices
be provided directly to them.]
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless
authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails
an Omnibus Proxy to District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s
consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the District or Agent,
on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, Agent, or the District, subject to any statutory or regulatory requirements as may be in
effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or
such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District
or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
[Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer
the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for
physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied
when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by
a book-entry credit of tendered Securities to [Tender/Remarketing] Agent's DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the District or Agent. Under such circumstances, in the event that a successor depository is not
obtained, Security certificates are required to be printed and delivered.
11. The District may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that
the District believes to be reliable, but the District takes no responsibility for the accuracy thereof.
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APPENDIX D
FORM OF CONTINUING DISCLOSURE UNDERTAKING
(See following pages)
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CONTINUING DISCLOSURE UNDERTAKING
FOR THE PURPOSE OF PROVIDING
CONTINUING DISCLOSURE INFORMATION
UNDER SECTION (b)(5) OF RULE 15c2-12
This Continuing Disclosure Undertaking (this “Agreement”) is executed and delivered by
the Fountaindale Public Library District, Will and DuPage Counties, Illinois (the “District”), in
connection with the issuance of $_________ General Obligation Refunding Library Bonds,
Series 2016A (the “Bonds”). The Bonds are being issued pursuant to an ordinance adopted by
The Board of Library Trustees of the District on the 21st day of July, 2016, as supplemented by a
notification of sale of the bonds (the “Ordinance”).
In consideration of the issuance of the Bonds by the District and the purchase of such
Bonds by the beneficial owners thereof, the District covenants and agrees as follows:
1. PURPOSE OF THIS AGREEMENT. This Agreement is executed and delivered by the
District as of the date set forth below, for the benefit of the beneficial owners of the Bonds and in
order to assist the Participating Underwriters in complying with the requirements of the Rule (as
defined below). The District represents that it will be the only obligated person with respect to
the Bonds at the time the Bonds are delivered to the Participating Underwriters and that no other
person is expected to become so committed at any time after issuance of the Bonds.
2. DEFINITIONS. The terms set forth below shall have the following meanings in this
Agreement, unless the context clearly otherwise requires.
Annual Financial Information means information of the type contained under the
following headings and subheadings of, and in the following appendices and exhibits to, the
Official Statement:
PROPERTY TAX EXTENSION LIMITATION LAW
—Current Property Valuations
—Trend of Valuations
DEBT
—Direct General Obligation Debt
TAX LEVIES, COLLECTIONS AND TAX RATES
—Tax Levies and Collections
—District Tax Rates
Annual Financial Information Disclosure means the dissemination of disclosure
concerning Annual Financial Information and the dissemination of the Audited Financial
Statements as set forth in Section 4.
Audited Financial Statements means the audited financial statements of the District
prepared pursuant to the principles and as described in Exhibit I.
Commission means the Securities and Exchange Commission.
Draft CDU
2244879
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Dissemination Agent means any agent designated as such in writing by the District and
which has filed with the District a written acceptance of such designation, and such agent’s
successors and assigns.
EMMA means the MSRB through its Electronic Municipal Market Access system for
municipal securities disclosure or through any other electronic format or system prescribed by
the MSRB for purposes of the Rule.
Exchange Act means the Securities Exchange Act of 1934, as amended.
MSRB means the Municipal Securities Rulemaking Board.
Official Statement means the Final Official Statement, dated August ___, 2016, and
relating to the Bonds.
Participating Underwriter means each broker, dealer or municipal securities dealer
acting as an underwriter in the primary offering of the Bonds.
Reportable Event means the occurrence of any of the Events with respect to the Bonds set
forth in Exhibit II.
Reportable Events Disclosure means dissemination of a notice of a Reportable Event as
set forth in Section 5.
Rule means Rule 15c2-12 adopted by the Commission under the Exchange Act, as the
same may be amended from time to time.
State means the State of Illinois.
Undertaking means the obligations of the District pursuant to Sections 4 and 5.
3. CUSIP NUMBERS. The CUSIP Numbers of the Bonds are set forth in Exhibit III.
The District will include the CUSIP Numbers in all disclosure materials described in Sections 4
and 5 of this Agreement.
4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 8 of this
Agreement, the District hereby covenants that it will disseminate its Annual Financial
Information and its Audited Financial Statements (in the form and by the dates set forth in
Exhibit I) to EMMA in such manner and format and accompanied by identifying information as
is prescribed by the MSRB or the Commission at the time of delivery of such information and by
such time so that such entities receive the information by the dates specified. MSRB Rule G-32
requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all
documents required to be filed with EMMA, including financial statements and other externally
prepared reports.
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If any part of the Annual Financial Information can no longer be generated because the
operations to which it is related have been materially changed or discontinued, the District will
disseminate a statement to such effect as part of its Annual Financial Information for the year in
which such event first occurs.
If any amendment or waiver is made to this Agreement, the Annual Financial Information
for the year in which such amendment or waiver is made (or in any notice or supplement
provided to EMMA) shall contain a narrative description of the reasons for such amendment or
waiver and its impact on the type of information being provided.
5. REPORTABLE EVENTS DISCLOSURE. Subject to Section 8 of this Agreement, the
District hereby covenants that it will disseminate in a timely manner (not in excess of ten
business days after the occurrence of the Reportable Event) Reportable Events Disclosure to
EMMA in such manner and format and accompanied by identifying information as is prescribed
by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32
requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all
documents required to be filed with EMMA, including financial statements and other externally
prepared reports. Notwithstanding the foregoing, notice of optional or unscheduled redemption
of any Bonds or defeasance of any Bonds need not be given under this Agreement any earlier
than the notice (if any) of such redemption or defeasance is given to the Bondholders pursuant to
the Ordinance.
6. CONSEQUENCES OF FAILURE OF THE DISTRICT TO PROVIDE INFORMATION. The
District shall give notice in a timely manner to EMMA of any failure to provide Annual
Financial Information Disclosure when the same is due hereunder.
In the event of a failure of the District to comply with any provision of this Agreement,
the beneficial owner of any Bond may seek mandamus or specific performance by court order, to
cause the District to comply with its obligations under this Agreement. A default under this
Agreement shall not be deemed a default under the Ordinance, and the sole remedy under this
Agreement in the event of any failure of the District to comply with this Agreement shall be an
action to compel performance.
7. AMENDMENTS; WAIVER. Notwithstanding any other provision of this Agreement,
the District by ordinance or resolution authorizing such amendment or waiver, may amend this
Agreement, and any provision of this Agreement may be waived, if:
(a) (i) The amendment or waiver is made in connection with a change in
circumstances that arises from a change in legal requirements, including without
limitation, pursuant to a “no-action” letter issued by the Commission, a change in law, or
a change in the identity, nature, or status of the District, or type of business conducted; or
(ii)
This Agreement, as amended, or the provision, as waived, would
have complied with the requirements of the Rule at the time of the primary
offering, after taking into account any amendments or interpretations of the Rule,
as well as any change in circumstances; and
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(b) The amendment or waiver does not materially impair the interests of the
beneficial owners of the Bonds, as determined by parties unaffiliated with the District
(such as Bond Counsel).
In the event that the Commission or the MSRB or other regulatory authority shall
approve or require Annual Financial Information Disclosure or Reportable Events Disclosure to
be made to a central post office, governmental agency or similar entity other than EMMA or in
lieu of EMMA, the District shall, if required, make such dissemination to such central post
office, governmental agency or similar entity without the necessity of amending this Agreement.
8. TERMINATION OF UNDERTAKING. The Undertaking of the District shall be
terminated hereunder if the District shall no longer have any legal liability for any obligation on
or relating to repayment of the Bonds under the Ordinance. The District shall give notice to
EMMA in a timely manner if this Section is applicable.
9. DISSEMINATION AGENT. The District may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Agreement, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination
Agent.
10. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to prevent
the District from disseminating any other information, using the means of dissemination set forth
in this Agreement or any other means of communication, or including any other information in
any Annual Financial Information Disclosure or notice of occurrence of a Reportable Event, in
addition to that which is required by this Agreement. If the District chooses to include any
information from any document or notice of occurrence of a Reportable Event in addition to that
which is specifically required by this Agreement, the District shall have no obligation under this
Agreement to update such information or include it in any future disclosure or notice of
occurrence of a Reportable Event.
11. BENEFICIARIES. This Agreement has been executed in order to assist the
Participating Underwriters in complying with the Rule; however, this Agreement shall inure
solely to the benefit of the District, the Dissemination Agent, if any, and the beneficial owners of
the Bonds, and shall create no rights in any other person or entity.
12. RECORDKEEPING. The District shall maintain records of all Annual Financial
Information Disclosure and Reportable Events Disclosure, including the content of such
disclosure, the names of the entities with whom such disclosure was filed and the date of filing
such disclosure.
13. ASSIGNMENT. The District shall not transfer its obligations under the Ordinance
unless the transferee agrees to assume all obligations of the District under this Agreement or to
execute an Undertaking under the Rule.
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14.
GOVERNING LAW. This Agreement shall be governed by the laws of the State.
FOUNTAINDALE PUBLIC LIBRARY DISTRICT,
WILL AND DUPAGE COUNTIES, ILLINOIS
By ____________________________________
President,
The Board of Library Trustees
Date: September _____, 2016
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EXHIBIT I
ANNUAL FINANCIAL INFORMATION AND TIMING AND AUDITED
FINANCIAL STATEMENTS
All or a portion of the Annual Financial Information and the Audited Financial
Statements as set forth below may be included by reference to other documents which have been
submitted to EMMA or filed with the Commission. If the information included by reference is
contained in a Final Official Statement, the Final Official Statement must be available on
EMMA; the Final Official Statement need not be available from the Commission. The District
shall clearly identify each such item of information included by reference.
Annual Financial Information exclusive of Audited Financial Statements will be
submitted to EMMA by 210 days after the last day of the District’s fiscal year (currently June
30), beginning with the fiscal year ending June 30, 2016. Audited Financial Statements as
described below should be filed at the same time as the Annual Financial Information. If
Audited Financial Statements are not available when the Annual Financial Information is filed,
Audited Financial Statements will be submitted to EMMA within 30 days after availability to the
District.
Audited Financial Statements will be prepared in accordance with accounting principles
generally accepted in the United States of America.
If any change is made to the Annual Financial Information as permitted by Section 4 of
the Agreement, the District will disseminate a notice of such change as required by Section 4.
EXHIBIT I
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EXHIBIT II
EVENTS WITH RESPECT TO THE BONDS
FOR WHICH REPORTABLE EVENTS DISCLOSURE IS REQUIRED
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Principal and interest payment delinquencies
Non-payment related defaults, if material
Unscheduled draws on debt service reserves reflecting financial difficulties
Unscheduled draws on credit enhancements reflecting financial difficulties
Substitution of credit or liquidity providers, or their failure to perform
Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security
Modifications to the rights of security holders, if material
Bond calls, if material, and tender offers
Defeasances
Release, substitution or sale of property securing repayment of the securities, if material
Rating changes
Bankruptcy, insolvency, receivership or similar event of the District
The consummation of a merger, consolidation, or acquisition involving the District or the
sale of all or substantially all of the assets of the District, other than in the ordinary course
of business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to
its terms, if material
Appointment of a successor or additional trustee or the change of name of a trustee, if
material
This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal
agent or similar officer for the District in a proceeding under the U.S. Bankruptcy Code or in any other
proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the District, or if such jurisdiction has been assumed by
leaving the existing governing body and officials or officers in possession but subject to the supervision
and orders of a court or governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement or liquidation by a court or governmental authority having supervision or
jurisdiction over substantially all of the assets or business of the District.
EXHIBIT II
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EXHIBIT III
CUSIP NUMBERS
YEAR OF
MATURITY
CUSIP
NUMBER
(350830)
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
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APPENDIX E
NOTICE OF SALE
$9,920,000* GENERAL OBLIGATION REFUNDING LIBRARY BONDS, SERIES 2016A
FOUNTAINDALE PUBLIC LIBRARY DISTRICT, WILL AND DuPAGE COUNTIES, ILLINOIS
Bids for the purchase of $9,920,000* General Obligation Refunding Library Bonds, Series 2016A (the "Bonds"), of
the Fountaindale Public Library District, Will and DuPage Counties, Illinois (the "District") will be received at the
offices of Ehlers & Associates, Inc. ("Ehlers"), 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105,
Municipal Advisors to the District, until 10:00 A.M., Central Time, and ELECTRONIC PROPOSALS will be
received via PARITY, in the manner described below, until 10:00 A.M. Central Time, on August 24, 2016, at which
time they will be opened, read and tabulated. The Board of Library Trustees adopted an ordinance on July 21, 2016,
which authorized the designated officials of the District to accept bids for the Bonds and to award the sale of the
Bonds if the parameters and conditions set forth in the ordinance (the “Parameters Ordinance”) are satisfied. If the
parameters and conditions set forth in the Parameters Ordinance are not met through the competitive bids received
on August 24, 2016, the designated officials will not have the authority to accept a bid for the Bonds and all bids for
the Bonds will be rejected.
PURPOSE
The Bonds are being issued pursuant to the Public Library District Act of 1991 of the State of Illinois and the Local
Government Debt Reform Act of the State of Illinois, and all laws amendatory thereof and supplementary thereto.
Proceeds of the Bonds will be used to provide funds to refund certain outstanding bonds of the District.
DATES AND MATURITIES
The Bonds will be dated September 14, 2016, will be issued as fully registered Bonds in the denomination of $5,000
each, or any integral multiple thereof, and will mature on February 1 as follows:
Year
2017
2018
2019
2020
Amount*
$150,000
105,000
105,000
105,000
Year
2021
2022
2023
2024
Amount*
$905,000
885,000
865,000
945,000
Year
2025
2026
2027
2028
Amount*
$925,000
900,000
1,120,000
2,910,000
ADJUSTMENT OPTION
* The District reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in
increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are
adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000.
TERM BOND OPTION
Bids for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds,
subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption
in each year conforms to the maturity schedule set forth above. All dates are inclusive.
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INTEREST PAYMENT DATES AND RATES
Interest will be payable on February 1 and August 1 of each year, commencing February 1, 2017, to the registered
owners of the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or
not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year
of twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. The
rate for any maturity may not be more than 2.00% less than the rate for any preceding maturity. (For
example, if a rate of 4.50% is proposed for the 2019 maturity, then the lowest rate that may be proposed for
any later maturity is 2.50%.) All Bonds of the same maturity must bear interest from date of issue until paid at a
single, uniform rate. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1%. The rate or rates
named shall not exceed 5.00%.
BOOK-ENTRY-ONLY FORMAT
Unless otherwise specified by the purchaser, the Bonds will be designated in the name of Cede & Co., as nominee
for The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the
Bonds, and will be responsible for maintaining a book-entry system for recording the interests of its participants and
the transfers of interests between its participants. The participants will be responsible for maintaining records
regarding the beneficial interests of the individual purchasers of the Bonds. So long as Cede & Co. is the registered
owner of the Bonds, all payments of principal and interest will be made to the depository which, in turn, will be
obligated to remit such payments to its participants for subsequent disbursement to the beneficial owners of the Bonds.
PAYING AGENT
The District has selected Bond Trust Services Corporation, Roseville, Minnesota, to act as bond registrar and paying
agent (the "Bond Registrat"). The District will pay the charges for Bond Registrar services. The District reserves the
right to remove the Bond Registrar and to appoint a successor.
OPTIONAL REDEMPTION
At the option of the District, the Bonds maturing on or after February 1, 2026 shall be subject to redemption prior to
maturity on February 1, 2025 and on any date thereafter, at a price of par plus accrued interest.
Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection
of the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the District. If only part of
the Bonds having a common maturity date are called for redemption, then the District or Bond Registrar, if any, will
notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each
participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial
ownership interest in such maturity to be redeemed.
Notice of such call shall be given by mailing a notice not more than 60 days and not less than 30 days prior to the date
fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration
books.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed are received by the Paying Agent
prior to the giving of a notice of redemption, such notice may, at the option of the District, state that said redemption
will be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date fixed for redemption.
If such moneys are not received, such notice will be of no force and effect, the District will not redeem such Bonds,
and the Bond Registrar will give notice, in the same manner in which the notice of redemption has been given, that
such moneys were not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption
date, the District will deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of
all the Bonds or portions of Bonds which are to be redeemed on the date.
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Subject to the provisions for a conditional redemption described above, notice of redemption having been given and
described above and in the Bond Ordinance, the Bonds or portions of Bonds so to be redeemed will, on the
redemption date, become due and payable at the redemption price therein specified, and from and after such date
(unless the District 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 will be
paid by the Bond Registrar at the redemption price.
DELIVERY
On or about September 14, 2016, the Bonds will be delivered without cost to the winning bidder at DTC. On the day
of closing, the District will furnish to the winning bidder the opinion of bond counsel hereinafter described, an
arbitrage certification, and certificates verifying that no litigation in any manner questioning the validity of the Bonds
is then pending or, to the best knowledge of officers of the District, threatened. Payment for the Bonds must be
received by the District at its designated depository on the date of closing in immediately available funds.
LEGAL OPINION
An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will be
furnished by Chapman and Cutler LLP, Bond Counsel to the District, and will be available at the time of delivery
of the Bonds. The legal opinion will be issued on the basis of existing law and will state that the Bonds are valid and
binding general obligations of the District; provided that the rights of the owners of the Bonds and the enforceability
of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting
creditors' rights and by equitable principles (which may be applied in either a legal or equitable proceeding).
SUBMISSION OF BIDS
Bids must not be for less than $9,860,480 plus accrued interest on the principal sum of $9,920,000 from date of
original issue of the Bonds to date of delivery. A signed bid form must be submitted to Ehlers prior to the time
established above for the opening of bids as follows:
1) In a sealed envelope as described herein; or
2) A facsimile submission to Ehlers, Facsimile Number (651) 697-8555; or
3) Electronically via PARITY in accordance with this Notice of Sale until 10:00 A.M. Central Time, but no bid will
be received after the time for receiving bids specified above. To the extent any instructions or directions set forth
in PARITY conflict with this Notice of Sale, the terms of this Notice of Sale shall control. For further
information about PARITY, potential bidders may contact Ehlers or i-Deal LLC at 1359 Broadway, 2nd Floor,
New York, New York 10018, Telephone (212) 849-5021.
Bids must be submitted to Ehlers via one of the methods described above and must be received prior to the time
established above for the opening of bids. Each bid must be unconditional except as to legality. Neither the District
nor Ehlers shall be responsible for any failure to receive a facsimile submission.
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A cashier’s check in the amount of $198,400 may be submitted contemporaneously with the bid or, alternatively, a
good faith deposit in the amount of $198,400 shall be made by the winning bidder by wire transfer of funds to
KleinBank, 1550 Audubon Road, Chaska, Minnesota, ABA No. 091915654 for credit: Ehlers & Associates
Good Faith Account No. 3208138. Such good faith deposit ("Deposit") shall be received by Ehlers no later than two
hours after the bid opening time. The District reserves the right to award the Bonds to a winning bidder whose wire
transfer is initiated but not received by such time provided that such winning bidder’s federal wire reference number
has been received by such time. In the event the Deposit is not received as provided above, the District may award
the Bonds to the bidder submitting the next best bid provided such bidder agrees to such award. The Deposit will be
retained by the District as liquidated damages if the bid is accepted and the Purchaser fails to comply therewith. The
Deposit will be returned to the Purchaser at the closing for the Bonds.
The District and the winning bidder who chooses to so wire the Deposit hereby agree irrevocably that Ehlers shall
be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: 1) All income
earned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the bid is not accepted, Ehlers
shall, at its expense, promptly return the Deposit amount to the winning bidder; 3) If the bid is accepted, the Deposit
shall be returned to the winning bidder at the closing; 4) Ehlers shall bear all costs of maintaining the escrow account
and returning the funds to the winning bidder; 5) Ehlers shall not be an insurer of the Deposit amount and shall have
no liability hereunder except if it willfully fails to perform or recklessly disregards, its duties specified herein; and
6) FDIC insurance on deposits within the escrow account shall be limited to $250,000 per bidder.
No bid can be withdrawn after the time set for receiving bids unless the meeting of the District scheduled for award
of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made.
AWARD
The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a True Interest Cost
(TIC) basis. The District’s computation of the interest rate of each bid, in accordance with customary practice, will
be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The District reserves the right to
reject any and all bids and to waive any informality in any bid.
BOND INSURANCE
If the Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole option and
expense of the winning bidder. Any cost for such insurance policy is to be paid by the winning bidder, except that,
if the District requested and received a rating on the Bonds from a rating agency, the District will pay that rating fee.
Any rating agency fees not requested by the District are the responsibility of the winning bidder.
Failure of the municipal bond insurer to issue the policy after the Bonds are awarded to the winning bidder shall not
constitute cause for failure or refusal by the winning bidder to accept delivery of the Bonds.
CUSIP NUMBERS
The District will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the
correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the winning
bidder, if the winning bidder waives any delay in delivery occasioned thereby.
QUALIFIED TAX-EXEMPT OBLIGATIONS
The District will designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
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CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securities
and Exchange Commission under the Securities Exchange Act of 1934 the District will enter into an undertaking for
the benefit of the holders of the Bonds. A description of the details and terms of the undertaking is set forth in
Appendix D of the Preliminary Official Statement.
INFORMATION FROM WINNING BIDDER
The winning bidder will be required to provide, in a timely manner, certain information relating to the initial offering
prices of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions of the Internal Revenue
Code of 1986, as amended.
PRELIMINARY OFFICIAL STATEMENT
Bidders may obtain a copy of the Preliminary Official Statement relating to the Bonds prior to the bid opening by
request from Ehlers at www.ehlers-inc.com by connecting to the link to the Bond Sales. The Syndicate Manager will
be provided with an electronic copy and up to 10 printed copies upon request of the Final Official Statement within
seven business days of the bid acceptance. Additional copies of the Final Official Statement will be available at a cost
of $10.00 per copy.
Information for bidders and bid forms may be obtained from Ehlers at 3060 Centre Pointe Drive, Roseville, Minnesota
55113-1105, Telephone (651) 697-8500.
By Order of The Board of Library Trustees
Paul Mills, Executive Director
Fountaindale Public Library District, Will and DuPage
Counties, Illinois
E-5
BID FORM
The Board of Library Trustees
Fountaindale Public Library District, Will and DuPage Counties, Illinois
RE:
DATED:
August 24, 2016
$9,920,000* General Obligation Refunding Library Bonds, Series 2016A
September 14, 2016
For all or none of the above Bonds, in accordance with the Notice of Sale and terms of the Global Book-Entry System (unless
otherwise specified by the Purchaser) as stated in this Official Statement, we will pay you $__________________ (not less than
$9,860,480) plus accrued interest to date of delivery for fully registered Bonds bearing interest rates and maturing in the stated
years as follows:
% due
2017
% due
2021
% due
2025
% due
2018
% due
2022
% due
2026
% due
2019
% due
2023
% due
2027
% due
2020
% due
2024
% due
2028
* The District reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of
$5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the purchase price
proposed will be adjusted to maintain the same gross spread per $1,000.
The rate for any maturity may not be more than 2.00% less than the rate for any preceding maturity. (For example, if
a rate of 4.50% is proposed for the 2019 maturity, then the lowest rate that may be proposed for any later maturity is
2.50%.) All Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate. Each rate must
be expressed in an integral multiple of 5/100 or 1/8 of 1%. The rate or rates named shall not exceed 5.00%.
We enclose our good faith deposit in the amount of $198,400, to be held by you pending delivery and payment. Alternatively,
if we are the winning bidder, we will wire our good faith deposit to KleinBank, 1550 Audubon Road, Chaska, Minnesota, ABA
No. 091915654 for credit: Ehlers & Associates Good Faith Account No. 3208138. Such good faith deposit shall be received
by Ehlers & Associates no later than two hours after the bid opening time. The District reserves the right to award the Bonds to
a winning bidder whose wire transfer is initiated but not received by such time provided that such winning bidder’s federal wire
reference number has been received. In the event the Deposit is not received as provided above, the District may award the Bonds
to the bidder submitting the next best bid provided such bidder agrees to such award. If our bid is not accepted, said deposit shall
be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of
Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to the Notice of Sale. This bid is for prompt
acceptance and is conditional upon delivery of said Bonds to The Depository Trust Company, New York, New York, in
accordance with the Notice of Sale. Delivery is anticipated to be on or about September 14, 2016.
This bid is subject to the District’s agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c212 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the
Preliminary Official Statement for this Issue.
We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections
to the Final Official Statement. As Syndicate Manager, we agree to provide the District with the reoffering price of the Bonds
within 24 hours of the bid acceptance.
Account Manager:
Account Members:
By:
Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the
award), the total dollar interest cost (including any discount or less any premium) computed from September 14, 2016 of the above
bid is $_______________and the true interest cost (TIC) is __________%.
The foregoing offer is hereby accepted by and on behalf of The Board of Library Trustees of the Fountaindale Public Library
District, Will and DuPage Counties, Illinois, on August 24, 2016.
By:
Title:

O:\ILLINOIS DATA\Libraries\Fountaindale Library - Ehlers

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