$4,525,000 VILLAGE OF NORTH AURORA Kane County, Illinois ... AURORA.09 ADD.pdf · The $4,665,000* General Obligation Refunding Library Bonds, Series 2009 (the “Bonds”) are being

NEW ISSUE Investment Rating:

Standard & Poor’s ... AA-

ADDENDUM DATED OCTOBER 19, 2009

OFFICIAL STATEMENT DATED OCTOBER 6, 2009

$4,525,000 VILLAGE OF NORTH AURORA

Kane County, Illinois General Obligation Refunding Library Bonds, Series 2009

AMOUNTS, MATURITIES, INTEREST RATES, YIELDS AND CUSIP NUMBERS Principal Due Interest Principal Due Interest Amount Jan. 1 Rate Yield CUSIP Amount Jan. 1 Rate Yield CUSIP $325,000 ... 2011 2.000% 1.150% 657407 CW0 $440,000 .... 2017 3.750% 3.250% 657407 DC3 345,000 ... 2012 2.000% 1.500% 657407 CX8 465,000 .... 2018* 3.750% 3.400% 657407 DD1 365,000 ... 2013 2.500% 1.900% 657407 CY6 485,000 .... 2019* 3.750% 3.500% 657407 DE9 380,000 ... 2014 2.750% 2.350% 657407 CZ3 505,000 .... 2020* 3.750% 3.600% 657407 DF6 400,000 ... 2015 3.250% 2.750% 657407 DA7 395,000 .... 2021* 3.750% 3.700% 657407 DG4 420,000 ... 2016 3.500% 3.000% 657407 DB5

*These maturities have been priced to call.

The Official Statement of the Village dated October 6, 2009 (the "Official Statement") with respect to the Bonds is

incorporated by reference herein and made a part hereof. The "Final Official Statement" of the Village with respect to the Bonds as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission shall be comprised of the following:

1. Official Statement dated October 6, 2009; and 2. This Addendum dated October 19, 2009.

No dealer, broker, salesman or other person has been authorized by the Village to give any information or to make any representations with respect to the Bonds other than as contained in the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the Village. Certain information contained in the Final Official Statement may be obtained from sources other than records of the Village and, while believed to be reliable, is not guaranteed as to completeness. NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE THEREUNDER SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE VILLAGE SINCE THE DATE THEREOF.

The Village has authorized preparation of the Final Official Statement containing pertinent information relative to the Bonds and the Village. Copies of that Final Official Statement can be obtained from the Underwriter, as defined herein. Additional information may also be obtained from the Village or from the independent public finance consultants to the Village:

Established 1954

Speer Financial, Inc. INDEPENDENT PUBLIC FINANCE CONSULTANTS ONE NORTH LASALLE STREET SUITE 4100 CHICAGO, ILLINOIS 60602 Telephone: (312) 346-3700; Facsimile: (312) 346-8833

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ADDITIONAL INFORMATION

References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request.

DEBT INFORMATION

General Obligation Bonded Debt (Principal Only)

GO ARS GO Library GO ARS GO ARS GO ARS Total Less: The Cumulative Calendar Series Series Series Series Series Outstanding The Refunded Total Principal Retired Year 2000(1) 2001(2) 2003(3) 2006(3) 2008(4) Debt Bonds(2) Bonds Debt Amount Percent

2009 ..... $105,000 $ 0 $ 0 $ 305,000 $ 0 $ 410,000 $ 0 $ 0 $ 410,000 $ 410,000 2.35% 2010 ..... 115,000 275,000 185,000 325,000 255,000 1,155,000 0 0 1,155,000 1,565,000 8.96% 2011 ..... 0 300,000 170,000 360,000 310,000 1,140,000 325,000 (300,000) 1,165,000 2,730,000 15.63% 2012 ..... 0 325,000 170,000 375,000 320,000 1,190,000 345,000 (325,000) 1,210,000 3,940,000 22.56% 2013 ..... 0 350,000 0 365,000 330,000 1,045,000 365,000 (350,000) 1,060,000 5,000,000 28.63% 2014 ..... 0 375,000 0 380,000 345,000 1,100,000 380,000 (375,000) 1,105,000 6,105,000 34.96% 2015 ..... 0 400,000 0 395,000 360,000 1,155,000 400,000 (400,000) 1,155,000 7,260,000 41.57% 2016 ..... 0 425,000 0 415,000 375,000 1,215,000 420,000 (425,000) 1,210,000 8,470,000 48.50% 2017 ..... 0 450,000 0 0 390,000 840,000 440,000 (450,000) 830,000 9,300,000 53.25% 2018 ..... 0 475,000 0 0 405,000 880,000 465,000 (475,000) 870,000 10,170,000 58.23% 2019 ..... 0 500,000 0 0 420,000 920,000 485,000 (500,000) 905,000 11,075,000 63.41% 2020 ..... 0 525,000 0 0 440,000 965,000 505,000 (525,000) 945,000 12,020,000 68.82% 2021 ..... 0 425,000 0 0 460,000 885,000 395,000 (425,000) 855,000 12,875,000 73.72% 2022 ..... 0 0 0 0 485,000 485,000 0 0 485,000 13,360,000 76.50% 2023 ..... 0 0 0 0 505,000 505,000 0 0 505,000 13,865,000 79.39% 2024 ..... 0 0 0 0 530,000 530,000 0 0 530,000 14,395,000 82.42% 2025 ..... 0 0 0 0 555,000 555,000 0 0 555,000 14,950,000 85.60% 2026 ..... 0 0 0 0 585,000 585,000 0 0 585,000 15,535,000 88.95% 2027 ..... 0 0 0 0 610,000 610,000 0 0 610,000 16,145,000 92.44% 2028 ..... 0 0 0 0 645,000 645,000 0 0 645,000 16,790,000 96.14% 2029 ..... 0 0 0 0 675,000 675,000 0 0 675,000 17,465,000 100.00% Total .. $220,000 $4,825,000 $525,000 $2,920,000 $9,000,000 $17,490,000 $4,525,000 $(4,550,000) $17,465,000

Notes: (1) The Series 2000 issue is expected to be payable from motor fuel tax receipts. (2) The Series 2001 issue and the Bonds are payable from library property taxes. (3) The Series 2003 and the Series 2006 issues are expected to be payable from waterworks revenues. (4) The Series 2008 issue is payable from sales tax receipts.

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Statement of Bonded Indebtedness

Ratio To Per Capita Amount Equalized Estimated (2007 Special Applicable Assessed Actual Census 15,893) Village EAV of Taxable Property, 2008......................... $ 569,761,326 100.00% 33.33% $ 35,849.83 Estimated Actual Value, 2008.................................. $1,709,283,978 300.00% 100.00% $107,549.49 Total Direct Bonded Debt...................................... $ 17,465,000 3.07% 1.02% $ 1,098.91 Less: Self-Supporting(1)...................................... (12,665,000) (2.22%) (0.74%) (796.89) Net Direct Bonded Debt...................................... $ 4,800,000 0.84% 0.28% $ 302.02 Total Overlapping Bonded Debt(2).............................. $ 58,557,337 10.28% 3.43% $ 3,684.47 Total Direct and Overlapping Bonded Debt...................... $ 63,357,337 11.12% 3.71% $ 3,986.49

Notes: (1) Includes the Series 2000 issue, the Series 2003 issue, the Series 2006 issue and the Series 2008 issue. (2) As of September 15, 2009.

Legal Debt Margin(1)

2008 Village Equalized Assessed Valuation......................................................... $569,761,326 Statutory Debt Limitation (8.625% of EAV)......................................................... $ 49,141,914

General Obligation Debt: Series 2000................................................... $ 220,000 Series 2001................................................... 4,825,000 Series 2003................................................... 525,000 Series 2006................................................... 2,920,000 Series 2008................................................... 9,000,000 The Bonds..................................................... 4,525,000 Less: the Refunded Bonds...................................... (4,550,000) Total General Obligation Debt................................................................... $ 17,465,000

Less Self-Supporting(2): Series 2000................................................... $ (220,000) Series 2003................................................... (525,000) Series 2006................................................... (2,920,000) Series 2008................................................... (9,000,000) Total Self-Supporting Debt...................................................................... $(12,665,000)

Total Applicable Debt............................................................................. $ 4,800,000 Legal Debt Margin................................................................................. $ 44,341,914 Notes: (1) Source: the Village. (2) As general obligation alternate bonds under Illinois statutes, the Series 2000 Bonds, the Series

2003 Bonds, the Series 2006 Bonds and the Series 2008 Bonds do not count against the 8.625% of EAV debt limit for bonded debt, so long as the debt service levy for such bonds are abated annually and not extended.

INVESTMENT RATING

The Bonds have been rated "AA-" by Standard & Poor’s Ratings Services. The Village has supplied certain information and material concerning the Bonds and the Village to the rating service shown on the cover page as part of its application for an investment rating on the Bonds. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of investment ratings may be obtained from the rating agency: Standard & Poor’s Ratings Services, 55 Water Street, New York, New York 10041, telephone 212-238-2000.

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UNDERWRITING

The Bonds were offered for sale by the Village at a public, competitive sale on October 19, 2009. The best bid submitted at the sale was submitted by M&I Marshall & Ilsley Bank, Milwaukee, Wisconsin (the "Underwriter"). The Village awarded the contract for sale of the Bonds to the Underwriter at a price of $4,593,152.95, plus accrued interest. The Underwriter has represented to the Village that the Bonds have been subsequently re-offered to the public initially at the yields set forth in this Addendum.

QUALIFIED TAX-EXEMPT OBLIGATIONS Subject to the Village’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 Internal Revenue Code of 1986, as amended (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.

AUTHORIZATION

The Official Statement dated October 6, 2009, and this Addendum dated October 19, 2009, for the $4,525,000 General Obligation Refunding Library Bonds, Series 2009, have been prepared under the authority of the Village and have been authorized for distribution by the Village. /s/ DALE BERMAN /s/ WILLIAM D. HANNAH President Finance Director VILLAGE OF NORTH AURORA VILLAGE OF NORTH AURORA Kane County, Illinois Kane County, Illinois

New Issue Investment Rating: Date of Sale: Monday, October 19, 2009 Standard & Poor’s … AA- Between 10:30 and 10:45 A.M., C.D.T. (Outstanding – Review Requested) (Closed Speer Auction)

Official Statement

Subject to compliance by the Village with certain covenants, in the opinion of Chapman and Cutler LLP, 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. See “TAX EXEMPTION” herein for a more complete discussion. The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.

$4,665,000*

VILLAGE OF NORTH AURORA Kane County, Illinois

General Obligation Refunding Library Bonds, Series 2009

Dated November 15, 2009 Book-Entry Bank Qualified Due Serially January 1, 2011-2021

The $4,665,000* General Obligation Refunding Library Bonds, Series 2009 (the “Bonds”) are being issued by the Village of North Aurora, Kane County, Illinois (the “Village”). Interest is payable semiannually on January 1 and July 1 of each year, commencing July 1, 2010. Interest is calculated based on a 360-day year of twelve 30-day months. The Bonds will be issued using a book-entry system. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers. Interest is calculated based on a 360-day year of twelve 30-day months. The Bonds will mature on January 1 in the following years and amounts.

AMOUNTS*, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS

Principal Due Interest Yield or Principal Due Interest Yield or Amount* Jan. 1 Rate Price CUSIP Amount* Jan. 1 Rate Price CUSIP $350,000 ..... 2011 ______% ______% __________ $450,000 ..... 2017 ______% ______% __________ 370,000 ..... 2012 ______% ______% __________ 470,000 ..... 2018 ______% ______% __________ 385,000 ..... 2013 ______% ______% __________ 485,000 ..... 2019 ______% ______% __________ 400,000 ..... 2014 ______% ______% __________ 500,000 ..... 2020 ______% ______% __________ 420,000 ..... 2015 ______% ______% __________ 400,000 ..... 2021 ______% ______% __________ 435,000 ..... 2016 ______% ______% __________

Any consecutive maturities may be aggregated into no more than five term bonds at the option of the bidder, in which case the mandatory redemption provisions shall be on the same schedule as above.

OPTIONAL REDEMPTION

Bonds due January 1, 2011-2017, inclusive, are non-callable. Bonds due January 1, 2018-2021, inclusive, are callable in whole or in part on any date on or after January 1, 2017, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the Village and within any maturity by lot. See “OPTIONAL REDEMPTION” herein.

PURPOSE, LEGALITY AND SECURITY

Bond proceeds will be used to currently refund a portion of the Village’s outstanding General Obligation Library Bonds, Series 2001, and to pay the costs of issuance of the Bonds. See “PLAN OF FINANCING” herein.

In the opinion of Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, the Bonds will constitute valid and legally binding obligations of the Village payable both as to principal and interest from ad valorem taxes levied against all taxable property therein 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.

This Official Statement is dated October 6, 2009, and has been prepared under the authority of the Village. An electronic copy of this Official Statement is available from the www.speerfinancial.com web site under “Debt Auction Center/Competitive Sales Calendar”. Additional copies may be obtained from Mr. William D. Hannah, Finance Director, Village of North Aurora, 25 East State Street, North Aurora, Illinois 60542, or from the Independent Public Finance Consultants to the Village:

Established 1954

Speer Financial, Inc. INDEPENDENT PUBLIC FINANCE CONSULTANTS

ONE NORTH LASALLE STREET, SUITE 4100 • CHICAGO, ILLINOIS 60602 Telephone: (312) 346-3700; Facsimile: (312) 346-8833

*Subject to change. www.speerfinancial.com

Village of North Aurora, Kane County, Illinois General Obligation Refunding Library Bonds, Series 2009

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For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as

the same may be supplemented or corrected by the Village from time to time (collectively, the “Official Statement”), may be treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date hereof (or the date of any such supplement or correction) by the Village.

The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates,

principal amounts and interest rates of the Bonds, together with any other information required by law or deemed appropriate by the Village, shall constitute a “Final Official Statement” of the Village with respect to the Bonds, as that term is defined in Rule 15c2-12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference.

No dealer, broker, salesman or other person has been authorized by the Village to give any information or to

make any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the Village. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the Village and, while believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE VILLAGE SINCE THE RESPECTIVE DATES THEREOF.

References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents

do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would be unlawful.


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BOND ISSUE SUMMARY

This Bond Issue Summary is expressly qualified by the entire Official Statement, including the Official Notice of Sale and the Official Bid Form, which are provided for the convenience of potential investors and which should be reviewed in their entirety by potential investors. Issuer: Village of North Aurora, Kane County, Illinois. Issue: $4,665,000* General Obligation Refunding Library Bonds, Series 2009. Dated Date: November 15, 2009. Interest Due: Each January 1 and July 1, commencing July 1, 2010. Principal Due: Serially each January 1, commencing January 1, 2011 through 2021, as detailed on the front

page of this Official Statement. Optional Redemption: Bonds maturing on or after January 1, 2018, are callable at the option of the Village on any

date on or after January 1, 2017, at a price of par plus accrued interest. See “OPTIONAL REDEMPTION” herein.

Authorization: The Bonds were originally authorized by a successful referendum held on April 3, 2001 and

are being issued pursuant to the Illinois Municipal Code, as supplemented and amended, the Local Government Debt Reform Act of the State of Illinois, and all laws amendatory thereof and supplementary thereto.

Security: The Bonds are valid and legally binding obligations of the Village payable both as to

principal and interest from ad valorem taxes levied against all taxable property therein without limitation as to rate or amount.

Credit Rating: The Village’s outstanding general obligation rating is “AA-” from Standard & Poor’s, a

Division of the McGraw-Hill Companies; a rating for the Bonds has been requested. Purpose: Bond proceeds will be used to currently refund a portion of the Village’s outstanding

General Obligation Library Bonds, Series 2001, and to pay the costs of issuance of the Bonds. See “PLAN OF FINANCING” herein.

Tax Exemption: Chapman and Cutler LLP, Chicago, Illinois, will provide an opinion as to the tax exemption

of the Bonds as discussed under “TAX EXEMPTION” in this Official Statement. Interest on the Bonds is not exempt from present State of Illinois income taxes.

Bank Qualification: The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal

Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.

Bond Registrar/Paying Agent/ Escrow Agent: Amalgamated Bank of Chicago, Chicago, Illinois. Delivery: The Bonds are expected to be delivered on or about November 17, 2009. Book-Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository

Trust Company (“DTC”), New York, New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein.

Denomination: $5,000 or integral multiples thereof. Financial Advisor: Speer Financial, Inc., Chicago, Illinois. *Subject to change.


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VILLAGE OF NORTH AURORA Kane County, Illinois

Dale Berman President

Board of Trustees

Chris Faber Mark Guethle Vince Mancini Mark Gaffino Michael J. Herlihy III Robert Strusz

____________________________________

William D. Hannah Finance Director

Lori Murray Village Clerk

Kevin Drendel

Attorney

THE VILLAGE Overview The Village is a non-home rule municipality incorporated in 1905. It is located in east central Kane County (the “County”), approximately 36 miles west of the Chicago “Loop” business district. Immediately surrounding communities include Aurora to the south and east, Batavia to the north and unincorporated Kane County to the west. The Village has a land area of approximately 11 square miles. The Village’s developed land area reflects a balanced mixture of residential, commercial and manufacturing activity. The scenic Fox River flows through the center of the Village. The U.S. Census population for the Village was 5,940 in 1990 and 10,585 in 2000, a 78.20% increase over the ten-year period. The Village conducted a special census in 2007 which certified the Village’s population at 15,893, a 50% increase in seven years. Development attracted by the Interstate 88 “Research and Development Corridor” has contributed significantly to the Village’s recent population growth and development activity. Organization and Services The governing body of the Village is composed of a board of six Village Trustees and a Village President elected at large for four-year staggered terms. The Village Clerk is also elected at large for a four-year term. The Village Board appoints a Village Administrator (position currently vacant), Finance Director, Community Development Director, Police Chief, Superintendent of Public Works and a Superintendent of Water Operations.

The Village has 53 full-time employees and 6 part-time employees. The Village also employs numerous seasonal employees as snow plowers, crossing guards and jailers. There are two collective bargaining units, the International Union of Operating Engineers representing public works and water system workers and the Illinois Council of Police representing police officers. The Village’s current collective bargaining agreement with each union expired May 31, 2009, and negotiations with each union are on-going for a new collective bargaining agreement.


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Village services include police protection and investigation, building permit and inspection, code enforcement, planning, administrative and financial support services, street maintenance and repair, maintenance of storm and sanitary sewer conveyance systems and operation of a water supply treatment and distribution system. Sanitary sewerage treatment service is provided by the Fox Metropolitan Water Reclamation District, an independent unit of government. Fire protection services are provided by the North Aurora Fire Protection District. Solid waste collection and recycling services are administered by the Village through a contract with a private firm. Transportation The Interstate 88 East-West Tollway forms much of the Village’s southern boundary, with some area of the Village extending south of the Interstate. Major regional roads intersecting the Interstate in the Village include the north-south Illinois Routes 25 and 31 straddling the Fox River, the east-west Route 56 (Butterfield Road) and the north-south Randall and Orchard Roads. Air transportation is available from Midway and O’Hare International Airports, which are served by major national airlines and commercial air freight companies. Both airports are located approximately 25 miles from the Village. The DuPage Airport provides charter and air freight service in the area, and is located approximately seven miles from the Village in West Chicago. In addition, the Aurora Airport also provides charter and air freight service, and is located approximately seven miles southwest of the Village. Commuter rail service is available from the Burlington Northern Santa Fe Metra Line in nearby Aurora. Travel time to the Chicago “Loop” is approximately 76 minutes local and 52 minutes express. Additional commuter rail service is available from the Union Pacific/West Line in Geneva. Travel time to the Chicago “Loop” is approximately 67 minutes local and 61 minutes express. Community Life The primary park district serving Village residents is the Fox Valley Park District, a separate unit of government, which services a 50-square mile area which includes the Village. Fox Valley has over 150 parks, 36 miles of trails, 37 park shelters and 83 playgrounds on more than 2,500 acres. In addition, the Batavia Park District, a separate unit of government, provides recreational and park services to a small portion of the Village. The North Aurora Activity Center is owned and maintained by the Village and leases space to organizations and provides additional space on a rental basis for community programs and not-for-profit functions and activities. The two major tenants are the Share and Care Learning Center and the Wheaton Christian Church. The Messenger Library (the “Library”), which is located in the Village, has a seven-member board elected at large for four year staggered terms. The Library is operated by an independent board subordinate to the Village, with the Village providing oversight such as debt issuance and approval of the Library’s annual appropriations ordinance. On behalf of the Library, the Village issued $5,950,000 in general obligation bonds in 2001 to construct a new 24,000 square foot facility for the Library. The Bonds will currently refund a portion of these bonds. Currently, the Library serves a population of approximately 16,000 people and inventories approximately 76,989 books and publications (including audio and video).


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Education Batavia School District Number 101 and West Aurora School District Number 129 serve the Village and have a combined current enrollment of approximately 14,700. A small portion of the Village is served by Kaneland School District Number 302. There are no private schools in the Village. Nearby Aurora is home to the Illinois Mathematics and Science Academy, drawing students from throughout Illinois, with a current enrollment of approximately 600. Continuing education, college transfer courses and trade programs are available through Waubonsee Community College District Number 516, which has a current enrollment of approximately 10,000. Waubonsee’s main campus is located in Sugar Grove. In addition, Aurora University is a four-year liberal arts school with a current enrollment of approximately 4,000.

SOCIOECONOMIC INFORMATION

Employment Substantial employment is available in surrounding communities, the “Research and Development Corridor” immediately south of the Village, and throughout the Chicago metropolitan area. Numerous employers are located within the Village and in surrounding communities. The following employment data shows a consistently diverse and strong growth trend for employment in Kane County. This data is NOT comparable to similar U.S. Census statistics, which would include government employment, and establishments not covered by the Illinois Unemployment Insurance Program, and could classify employment categories differently.

Kane County Private, Non-Agricultural Employment Covered by the Illinois Unemployment Insurance Act(1)

(Data as of March for each Year) 2004 2005 2006 2007 2008 Farm and Forestry.................................... 669 701 737 754 735 Mining and Quarrying................................. 74 71 88 123 110 Construction......................................... 11,183 11,170 12,250 12,136 10,790 Manufacturing........................................ 35,067 34,783 34,660 34,227 33,825 Transportation, Communications, Utilities............ 6,192 3,386 7,012 7,588 8,157 Wholesale Trade...................................... 9,376 10,142 10,596 11,105 11,246 Retail Trade......................................... 21,586 21,579 21,309 21,399 21,856 Finance, Insurance, Real Estate...................... 10,116 10,028 10,118 9,898 9,614 Services(2).......................................... 72,783 75,998 77,761 80,377 79,685 Total.............................................. 167,046 171,148 174,531 177,607 176,018 Percent Increase..................................... 2.27%(3) 2.46% 1.98% 1.76% (0.89%) Notes: (1) Source: Illinois Department of Employment Security.

(2) Includes unclassified establishments. (3) Percent increase based on 163,339 employment in 2003.


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Following is a list of large employers located in the Village.

Major Village Employers(1)

Approximate Name Product/Service Employment Dart Container Corporation................................Insulated Foam Cups .......................................... 375 Aurora Packing Company, Inc...............................Beef Packing ................................................. 250 Oberweis Dairy, Inc.......................................Milk and Ice Cream ........................................... 225 Aurora Pump...............................................Pumps and Pumping Equipment .................................. 200 Woodman’s Food Market, Inc................................Grocery Store ................................................ 200 Air-Rite Heating & Cooling, Inc...........................Heating and Air Conditioning Contractors...................... 150 Best Buy..................................................Retail ....................................................... 150 Euclid Beverage Ltd.......................................Wholesale Beer ............................................... 140 DACO Incorporated.........................................Heavy Construction Equipment Components and Plywheels......... 135 Target....................................................Retail ....................................................... 135 Belson Outdoors, Inc......................................Sporting and Athletic Goods .................................. 99 JC Penney.................................................Retail ....................................................... 80 Service Pallet, LLC.......................................Wooden and Plastic Pallets, Skids and Boxes................... 60 Asbury Gardens............................................Supportive Living ............................................ 50 Douglas Floor Covering, Inc...............................Floor Laying and Floor Work .................................. 50 Reliant Data Processing, Inc..............................Mailing Lists and Direct Mail Services........................ 50 Ruddy Brothers, Inc.......................................Industrial Sheet Metal Products .............................. 50 Everest College...........................................College ...................................................... 45 Share and Care............................................Day Care ..................................................... 43 Eden Supportive Living....................................Supportive Living ............................................ 40 abelei, Inc...............................................Flavoring Extracts and Syrups ................................ 35 Arco Supply Co............................................Galvanized Ducts and Fittings ................................ 35 Gladstone Homes...........................................Single Family Home Construction .............................. 35 Industrial Noice Control, Inc.............................Sound and Vibration Control Products and Systems.............. 35 Neslund & Assocs, Inc.....................................Underground Construction Services............................. 35 Interfilm Holdings, Inc...................................Converter and Distributor of Plastic Film..................... 30 Precise Stamping, Inc.....................................Metal Stampings .............................................. 30 Note: (1) Source: 2009 Illinois Manufacturers Directory, 2009 Illinois Services Directory and a selective telephone

survey.

The following is a list of large employers located in surrounding communities. In addition, Village residents also have access to employment opportunities throughout the Chicago metropolitan area along the Interstate 88 Research and Development Corridor.

Major Area Employers(1)

Approximate Location Name Business or Product Employment Naperville....... Edward Hospital............................. General Hospital ............................................ 3,500 Naperville....... Alcetal-Lucent.............................. Telecommunications Research and Development ................. 3,400 Aurora........... Caterpillar, Inc............................ Trucks and Tractors ......................................... 3,000 Naperville....... Nicor Gas................................... Gas Utility Company ......................................... 2,264 Batavia.......... Fermi Research Alliance..................... High Energy Physics Research Laboratory ..................... 2,000 Geneva........... Delnor Hospital............................ General Hospital ............................................ 1,650 Naperville....... BP.......................................... Chemical and Petrochemical Research ......................... 1,600 Naperville....... OfficeMax, Inc.............................. Office Supplies Corporate Headquarters ...................... 1,500 Aurora........... School District Number 129.................. School System ............................................... 1,500 Aurora........... Rush Copley Medical Center.................. Hospital and Medical Center ................................. 1,400 Aurora........... Provena Mercy Medical Center................ Medical and Psychiatric Hospital ............................ 1,300 Naperville....... Tellabs..................................... Bandwidth Management Solutions Company Headquarters ......... 1,250 Aurora........... Dreyer Medical Clinic....................... Medical Services ............................................ 1,200 Naperville....... Nalco Company............................... Chemicals and Allied Products Corporate Headquarters ........ 1,200 Aurora........... School District Number 204 ................. School System ............................................... 1,200 Aurora........... Hollywood Casino............................ Riverboat Casino ............................................ 1,009 Aurora........... Metropolitan Insurance Cos.................. Insurance and Financial Services ............................ 800 Note: (1) Source: 2009 Illinois Manufacturers Directory, 2009 Illinois Services Directory and a selective telephone survey.


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The following tables show employment by industry and by occupation for the Village, Kane County and the State as reported by the 2000 Census.

Employment By Industry(1)

The Village Kane County State of Illinois Classification Number Percent Number Percent Number Percent Agriculture, Forestry, Fishing, Hunting, and Mining.. 29 0.52% 1,196 0.61% 66,481 1.14% Construction......................................... 314 5.64% 14,549 7.42% 334,176 5.73% Manufacturing........................................ 1,022 18.34% 40,752 20.77% 931,162 15.96% Wholesale Trade...................................... 334 5.99% 9,446 4.81% 222,990 3.82% Retail Trade......................................... 665 11.93% 22,459 11.45% 643,472 11.03% Transportation and Warehousing, and Utilities........ 286 5.13% 9,661 4.92% 352,193 6.04% Information.......................................... 161 2.89% 6,601 3.36% 172,629 2.96% Finance, Insurance, Real Estate, Rental and Leasing.. 440 7.90% 13,411 6.84% 462,169 7.92% Professional, Scientific, Management, Administrative, and Waste Management Services...... 599 10.75% 20,575 10.49% 590,913 10.13% Educational, Health and Social Services.............. 812 14.57% 30,608 15.60% 1,131,987 19.41% Arts, Entertainment, Recreation, Accommodation and Food Services..................................... 365 6.55% 13,781 7.02% 417,406 7.16% Other Services (Except Public Administration)........ 249 4.47% 7,991 4.07% 275,901 4.73% Public Administration................................ 296 5.31% 5,154 2.63% 231,706 3.97% Total............................................ 5,572 100.00% 196,184 100.00% 5,833,185 100.00% Note: (1) Source: U.S. Bureau of the Census.

Employment By Occupation(1)

The Village Kane County State of Illinois Classification Number Percent Number Percent Number Percent Management, Professional and Related Occupations..... 1,877 33.69% 63,523 32.38% 1,993,671 34.18% Service ............................................. 586 10.52% 24,251 12.36% 813,479 13.95% Sales and Office .................................... 1,946 34.92% 54,514 27.79% 1,609,939 27.60% Farming, Fishing and Forestry........................ 7 0.13% 608 0.31% 17,862 0.31% Construction, Extraction, and Maintenance............ 460 8.26% 17,467 8.90% 480,418 8.24% Production, Transportation, and Material Moving...... 696 12.49% 35,821 18.26% 917,816 15.73% Total.............................................. 5,572 100.00% 196,184 100.00% 5,833,185 100.00% Note: (1) Source: U.S. Bureau of the Census.

Annual Average Unemployment Rates(1)

Calendar The Kane State of Year Village County Illinois 2000.................... 2.9% 4.3% 4.5% 2001.................... 3.5% 5.4% 5.4% 2002.................... 5.0% 6.5% 6.5% 2003.................... 5.2% 6.7% 6.7% 2004.................... 4.7% 6.1% 6.2% 2005.................... 4.4% 5.8% 5.8% 2006.................... 3.3% 4.2% 4.6% 2007.................... 3.8% 4.8% 5.0% 2008.................... 5.0% 6.3% 6.5% 2009(2)................. NA 9.7% 9.9% Notes: (1) Source: Illinois Department of Employment Security. (2) Preliminary rates for the month of August 2009.


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Building Permits

Residential building permits have averaged $380,780 over the last five full years in the Village, excluding the value of land. This is higher than the 2000 Census median value of $149,400, which included land.

Village Building Permits(1) (Excludes the Value of Land)

Calendar Single-Family Multi-Family Miscellaneous Total Year Units Value Number Value Value Value

1999 .......... 286 $ 49,286,513 0 $ 0 $ 7,850,125 $ 57,136,638 2000 .......... 396 71,332,488 16 2,452,300 16,642,174 90,426,962 2001 .......... 130 27,482,060 21 3,120,500 4,115,520 34,718,080 2002(2) ....... 93 29,847,785 35 2,181,850 3,296,085 35,325,720 2003 .......... 191 63,711,247 22 4,660,000 1,918,493 70,289,740 2004 .......... 211 53,741,643 16 2,427,896 15,313,128 71,482,667 2005 .......... 241 102,158,944 0 0 4,985,139 107,144,083 2006 .......... 245 103,397,661 53 14,116,748 3,681,854 121,196,263 2007 .......... 89 38,101,915 18 5,397,673 2,039,800 45,539,388 2008 .......... 33 14,458,456 8 2,426,189 NA 16,884,645 2009(3) ....... 11 4,512,110 0 0 NA 4,512,110

Notes: (1) Source: the Village. (2) Includes only the first ten months of 2002. (3) For nine months through September 2009.

Housing The 2000 Census reported that the median value of the Village’s owner-occupied homes was $149,400, which compares with $160,400 for Kane County and $130,800 for the State. According to a special census conducted in 2004, the median value of the Village’s owner-occupied homes was $176,399. The 2000 market value of specified owner-occupied units for the Village, Kane County and the State was as follows:

Specified Owner-Occupied Units(1)

The Village Kane County State of Illinois Value Number Percent Number Percent Number Percent Under $50,000...................... 0 0.00% 565 0.61% 230,049 9.31% $50,000 to $99,999................. 129 4.15% 12,311 13.35% 651,605 26.38% $100,000 to $149,999............... 1,446 46.54% 28,217 30.60% 583,409 23.62% $150,000 to $199,999............... 944 30.38% 21,013 22.79% 429,311 17.38% $200,000 to $299,999............... 549 17.67% 19,767 21.44% 344,651 13.95% $300,000 to $499,999............... 33 1.06% 8,417 9.13% 163,254 6.61% $500,000 to $999,999............... 0 0.00% 1,699 1.84% 55,673 2.25% $1,000,000 or more................. 6 0.19% 216 0.23% 12,386 0.50% Total............................ 3,107 100.00% 92,205 100.00% 2,470,338 100.00% Note: (1) Source: U.S. Bureau of the Census.


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Income

Per Capita Personal Income for the Ten Highest Income Counties in the State(1) Rank 2000 1..................... Lake County ................. $32,102 2..................... DuPage County ............... 31,315 3..................... McHenry County .............. 26,476 4..................... Kendall County .............. 25,188 5..................... Will County ................. 24,613 6..................... Kane County ................. 24,315 7..................... Cook County ................. 23,227 8..................... Sangamon County ............. 23,173 9..................... Monroe County ............... 22,954 10..................... Grundy County ............... 22,591 Note: (1) Source: U.S. Bureau of the Census.

A special census conducted in 2004 reported the Village’s per capita income to be $28,928.

The following shows a ranking of median family income for the Chicago metropolitan area among 3,141 counties from the 2000 Census.

Ranking of Median Family Income(1)

Ill. Family Ill. County Income Rank DuPage County .............$79,314 1 Lake County ............... 76,424 2 McHenry County ............ 71,553 3 Will County ............... 69,608 4 Kendall County ............ 69,383 5 Kane County ............... 66,558 6 Cook County ............... 53,784 15 Note: (1) Source: U.S. Bureau of the Census.

According to the 2000 Census, the Village had a median family income of $70,780. This compares to $66,558 for Kane County and $55,545 for the State. The following table represents the distribution of family incomes for the Village, Kane County and the State at the time of the 2000 Census.

Median Family Income(1)

The Village Kane County State of Illinois Value Number Percent Number Percent Number Percent Under $10,000...................... 23 0.81% 2,784 2.73% 156,205 5.00% $10,000 to $14,999................. 26 0.92% 1,994 1.96% 105,747 3.38% $15,000 to $24,999................. 131 4.63% 6,418 6.30% 273,712 8.76% $25,000 to $34,999................. 217 7.67% 7,993 7.84% 331,907 10.62% $35,000 to $49,999................. 396 14.00% 14,194 13.93% 506,429 16.20% $50,000 to $74,999................. 763 26.98% 25,480 25.00% 736,897 23.58% $75,000 to $99,999................. 555 19.63% 18,001 17.66% 445,390 14.25% $100,000 to $149,999............... 554 19.59% 15,907 15.61% 356,068 11.39% $150,000 to $199,999............... 98 3.47% 4,821 4.73% 101,955 3.26% $200,000 or more................... 65 2.30% 4,331 4.25% 111,008 3.55% Total............................ 2,828 100.00% 101,923 100.00% 3,125,318 100.00% Note: (1) Source: U.S. Bureau of the Census.


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According to the 2000 Census, the Village had a median household income of $58,557. This compares to $59,351 for Kane County and $46,590 for the State. A special census conducted in 2004 reported the Village’s median household income to be $68,622. The following table represents the distribution of household incomes for the Village, Kane County and the State at the time of the 2000 Census.

Median Household Income(1)

The Village Kane County State of Illinois Value Number Percent Number Percent Number Percent Under $10,000...................... 156 3.86% 5,511 4.12% 383,299 8.35% $10,000 to $14,999................. 70 1.73% 4,486 3.35% 252,485 5.50% $15,000 to $24,999................. 314 7.76% 11,012 8.23% 517,812 11.27% $25,000 to $34,999................. 443 10.95% 12,658 9.47% 545,962 11.89% $35,000 to $49,999................. 678 16.76% 20,694 15.47% 745,180 16.23% $50,000 to $74,999................. 985 24.35% 31,358 23.45% 952,940 20.75% $75,000 to $99,999................. 639 15.79% 20,750 15.52% 531,760 11.58% $100,000 to $149,999............... 598 14.78% 17,472 13.06% 415,348 9.04% $150,000 to $199,999............... 98 2.42% 5,128 3.83% 119,056 2.59% $200,000 or more................... 65 1.61% 4,664 3.49% 128,898 2.81% Total............................ 4,046 100.00% 133,733 100.00% 4,592,740 100.00% Note: (1) Source: U.S. Bureau of the Census.

Retail Activity

Sales tax receipts exceeded 45% of Governmental Fund Type revenues in fiscal 2008. Effective January 1, 2004, the Village began collecting a 0.50% non-home rule sales tax, which the Village has dedicated to the Village’s Capital Improvement Fund. Following is a summary of the Village’s sales tax receipts as collected and disbursed by the State of Illinois.

Retailers’ Occupation, Service Occupation and Use Tax(1)

State Fiscal Year State Sales Tax Non-Home Rule Sales Total Sales Annual Percent Ending June 30 Distributions(2) Tax Distributions Tax Distributions Change +(-)

2000 ............. $1,910,697 NA $1,910,697 9.93%(3) 2001 ............. 1,883,814 NA 1,883,814 (1.41%) 2002 ............. 2,095,626 NA 2,095,626 11.24% 2003 ............. 1,975,575 NA 1,975,575 (5.73%) 2004 ............. 2,070,304 $192,988 2,263,291 14.56% 2005 ............. 2,162,610 413,498 2,576,108 13.82% 2006 ............. 2,513,204 609,531 3,122,735 21.22% 2007 ............. 3,361,641 745,804 4,107,445 31.53% 2008 ............. 3,650,294 877,068 4,527,362 10.22% 2009 ............. 3,311,169 816,995 4,128,164 (8.82%) Growth from 2000 to 2009 ................................................................... 116.06%

Notes: (1) Source: Illinois Department of Revenue.

(2) Tax distributions are based on records of the Illinois Department of Revenue relating to the 1% municipal portion of the Retailers’ Occupation, Service Occupation and Use Tax, collected on behalf of the Village, less a State administration fee. The municipal 1% includes tax receipts from the sale of food and drugs which are not taxed by the State.

(3) The 2000 percentage is based on a 1999 sales tax of $1,738,061.


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PLAN OF FINANCING

Bond proceeds will be used to fund an escrow to currently refund a portion of the Village’s outstanding General Obligation Library Bonds, Series 2001, as listed below (the “Refunded Bonds”):

The Refunded Bonds* Refunded Outstanding Amount Redemption Redemption Maturities Amount Refunded* Price Date* 1/1/2011............... $ 300,000 $ 300,000 100.00% 1/01/2010 1/1/2012............... 325,000 325,000 100.00% 1/01/2010 1/1/2013............... 350,000 350,000 100.00% 1/01/2010 1/1/2014............... 375,000 375,000 100.00% 1/01/2010 1/1/2015............... 400,000 400,000 100.00% 1/01/2010 1/1/2016............... 425,000 425,000 100.00% 1/01/2010 1/1/2017............... 450,000 450,000 100.00% 1/01/2010 1/1/2018............... 475,000 475,000 100.00% 1/01/2010 1/1/2019............... 500,000 500,000 100.00% 1/01/2010 1/1/2020............... 525,000 525,000 100.00% 1/01/2010 1/1/2021............... 425,000 425,000 100.00% 1/01/2010 Total................. $4,550,000 $4,550,000

Bond proceeds will be used to purchase direct full faith and credit obligations of the United States of America (the “Government Securities”), the principal of which together with interest to be earned thereon will be sufficient (i) to pay when due the interest on the Refunded Bonds up to and including the redemption date, and (ii) to pay principal of the Refunded Bonds on the redemption date. The remaining Bond proceeds will be used to pay the costs of issuing the Bonds.

The Government Securities will be held in an escrow account created pursuant to an escrow letter agreement dated as of date of delivery, between the Village and Amalgamated Bank of Chicago, Illinois, as escrow agent. *Subject to change.


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DEBT INFORMATION

After issuance of the Bonds, and the refunding of the Refunded Bonds, the Village will have outstanding $17,605,000* principal amount of general obligation debt, consisting of $12,665,000 general obligation alternate bonds and $4,940,000* general obligation library bonds.

The Village does not intend to issue additional debt within the next three months.

General Obligation Bonded Debt (Principal Only)

GO ARS GO Library GO ARS GO ARS GO ARS Total Less: The Cumulative Calendar Series Series Series Series Series Outstanding The Refunded Total Principal Retired(5) Year 2000(1) 2001(2) 2003(3) 2006(3) 2008(4) Debt Bonds(2)(5) Bonds Debt(5) Amount Percent

2009 ..... $105,000 $ 0 $ 0 $ 305,000 $ 0 $ 410,000 $ 0 $ 0 $ 410,000 $ 410,000 2.33% 2010 ..... 115,000 275,000 185,000 325,000 255,000 1,155,000 0 0 1,155,000 1,565,000 8.89% 2011 ..... 0 300,000 170,000 360,000 310,000 1,140,000 350,000 (300,000) 1,190,000 2,755,000 15.65% 2012 ..... 0 325,000 170,000 375,000 320,000 1,190,000 370,000 (325,000) 1,235,000 3,990,000 22.66% 2013 ..... 0 350,000 0 365,000 330,000 1,045,000 385,000 (350,000) 1,080,000 5,070,000 28.80% 2014 ..... 0 375,000 0 380,000 345,000 1,100,000 400,000 (375,000) 1,125,000 6,195,000 35.19% 2015 ..... 0 400,000 0 395,000 360,000 1,155,000 420,000 (400,000) 1,175,000 7,370,000 41.86% 2016 ..... 0 425,000 0 415,000 375,000 1,215,000 435,000 (425,000) 1,225,000 8,595,000 48.82% 2017 ..... 0 450,000 0 0 390,000 840,000 450,000 (450,000) 840,000 9,435,000 53.59% 2018 ..... 0 475,000 0 0 405,000 880,000 470,000 (475,000) 875,000 10,310,000 58.56% 2019 ..... 0 500,000 0 0 420,000 920,000 485,000 (500,000) 905,000 11,215,000 63.70% 2020 ..... 0 525,000 0 0 440,000 965,000 500,000 (525,000) 940,000 12,155,000 69.04% 2021 ..... 0 425,000 0 0 460,000 885,000 400,000 (425,000) 860,000 13,015,000 73.93% 2022 ..... 0 0 0 0 485,000 485,000 0 0 485,000 13,500,000 76.68% 2023 ..... 0 0 0 0 505,000 505,000 0 0 505,000 14,005,000 79.55% 2024 ..... 0 0 0 0 530,000 530,000 0 0 530,000 14,535,000 82.56% 2025 ..... 0 0 0 0 555,000 555,000 0 0 555,000 15,090,000 85.71% 2026 ..... 0 0 0 0 585,000 585,000 0 0 585,000 15,675,000 89.04% 2027 ..... 0 0 0 0 610,000 610,000 0 0 610,000 16,285,000 92.50% 2028 ..... 0 0 0 0 645,000 645,000 0 0 645,000 16,930,000 96.17% 2029 ..... 0 0 0 0 675,000 675,000 0 0 675,000 17,605,000 100.00% Total .. $220,000 $4,825,000 $525,000 $2,920,000 $9,000,000 $17,490,000 $4,665,000 $(4,550,000) $17,605,000

Notes: (1) The Series 2000 issue is expected to be payable from motor fuel tax receipts. (2) The Series 2001 issue and the Bonds are payable from library property taxes. (3) The Series 2003 and the Series 2006 issues are expected to be payable from waterworks revenues. (4) The Series 2008 issue is payable from sales tax receipts. (5) Subject to change.

*Subject to change.


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Detailed Overlapping Bonded Debt(1)

(As of September 15, 2009)

Outstanding Applicable to Village Debt Percent(2) Amount Schools: School District Number 101....................................................... $109,125,000 0.65% $ 709,313 School District Number 129....................................................... 114,930,000 29.28% 33,651,504 School District Number 302....................................................... 88,168,525 1.27% 1,119,740 Community College District Number 516............................................ 74,570,796 5.47% 4,079,023 Total Schools.................................................................................................................... $39,559,580

Others: Kane County ..................................................................... $ 74,835,000 3.66% $ 2,738,961 Kane County Forest Preserve District............................................. 248,800,866 3.66% 9,106,112 Batavia Park District............................................................ 8,262,970 4.78% 394,970 Fox Valley Park District......................................................... 66,044,540 9.64% 6,366,694 Batavia Library 1998 Bond District............................................... 3,200,000 6.86% 219,520 Batavia Library 1999 Bond District............................................... 2,500,000 6.86% 171,500 Total Others .................................................................................................................... $18,997,757 Total Schools and Others Overlapping Bonded Debt ................................................................................. $58,557,337 Notes: (1) Source: Kane County Clerk. (2) Overlapping debt percentages based on 2008 EAVs, the most recent available.

Statement of Bonded Indebtedness

Ratio To Per Capita Amount Equalized Estimated (2007 Special Applicable Assessed Actual Census 15,893) Village EAV of Taxable Property, 2008.................................. $ 569,761,326 100.00% 33.33% $ 35,849.83 Estimated Actual Value, 2008........................................... $1,709,283,978 300.00% 100.00% $107,549.49 Total Direct Bonded Debt(1)............................................ $ 17,605,000 3.09% 1.03% $ 1,107.72 Less: Self-Supporting(2)............................................... (12,665,000) (2.22%) (0.74%) (796.89) Net Direct Bonded Debt(1)............................................ $ 4,940,000 0.87% 0.29% $ 310.83 Total Overlapping Bonded Debt(3)....................................... $ 58,557,337 10.28% 3.43% $ 3,684.47 Total Direct and Overlapping Bonded Debt............................... $ 63,497,337 11.15% 3.72% $ 3,995.30

Notes: (1) Subject to change. (2) Includes the Series 2000 issue, the Series 2003 issue, the Series 2006 issue and the Series 2008 issue. (3) As of September 15, 2009.

Legal Debt Margin(1)

2008 Village Equalized Assessed Valuation....................................................................... $569,761,326 Statutory Debt Limitation (8.625% of EAV)....................................................................... $ 49,141,914

General Obligation Debt: Series 2000 ........................................................... $ 220,000 Series 2001 ........................................................... 4,825,000 Series 2003 ........................................................... 525,000 Series 2006 ........................................................... 2,920,000 Series 2008 ........................................................... 9,000,000 The Bonds(2) .......................................................... 4,665,000 Less: the Refunded Bonds .............................................. (4,550,000) Total General Obligation Debt(2).............................................................................. $ 17,605,000

Less Self-Supporting(3): Series 2000 ........................................................... $ (220,000) Series 2003 ........................................................... (525,000) Series 2006 ........................................................... (2,920,000) Series 2008 ........................................................... (9,000,000) Total Self-Supporting Debt ................................................................................... $(12,665,000)

Total Applicable Debt(2) ....................................................................................... $ 4,940,000 Legal Debt Margin(2) ........................................................................................... $ 44,201,914 Notes: (1) Source: the Village. (2) Subject to change. (3) As general obligation alternate bonds under Illinois statutes, the Series 2000 Bonds, the Series 2003 Bonds, the

Series 2006 Bonds and the Series 2008 Bonds do not count against the 8.625% of EAV debt limit for bonded debt, so long as the debt service levy for such bonds are abated annually and not extended.


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PROPERTY ASSESSMENT AND TAX INFORMATION

For the 2008 levy year, the Village’s EAV was comprised of 80% residential, 7% industrial, 13% commercial, and less than 1% railroad and farm property valuations.

Equalized Assessed Valuation(1)

Levy Years Property Class 2004 2005 2006 2007 2008 Residential............... $287,453,001 $333,252,680 $375,662,406 $433,340,748 $455,105,924 Farm...................... 687,557 453,980 242,413 278,939 268,650 Commercial................ 37,953,198 42,837,358 55,675,142 66,370,277 73,362,075 Industrial................ 27,961,411 29,920,087 32,164,507 34,532,131 40,855,140 Railroad.................. 136,759 126,362 132,288 147,147 169,537 Total................... $354,191,926 $406,590,467 $463,876,756 $534,669,242 $569,761,326 Percent Change +(-)....... 11.26%(2) 14.79% 14.09% 15.26% 6.56% Notes: (1) Source: Kane County Clerk. (2) Percentage change based on 2003 EAV of $318,338,788.

Representative Tax Rates(1) (Per $100 EAV)

Levy Years 2004 2005 2006 2007 2008 Village Rates: Corporate............................................ $0.1909 $0.1857 $0.1757 $0.1601 $0.1721 Liability Insurance.................................. 0.0237 0.0206 0.0177 0.0160 0.0189 I.M.R.F.............................................. 0.0183 0.0169 0.0159 0.0160 0.0189 Social Security...................................... 0.0399 0.0365 0.0360 0.0353 0.0404 Police Protection.................................... 0.0421 0.0386 0.0367 0.0401 0.0465 Audit................................................ 0.0038 0.0019 0.0018 0.0016 0.0009 Police Pension....................................... 0.0550 0.0555 0.0616 0.0623 0.0758 Unemployment Compensation............................ 0.0007 0.0006 0.0006 0.0005 0.0005 Bonds & Interest..................................... 0.1262 0.1138 0.1028 0.0915 0.0879 Total Village Rates(2)............................. $0.5007 $0.4701 $0.4489 $0.4234 $0.4619 Library Rates: Corporate............................................ $0.2439 $0.2393 $0.2333 $0.2237 $0.2249 Building Acquisition................................. 0.0195 0.0191 0.0178 0.0171 0.0171 Total Library Rates(3)............................. $0.2634 $0.2584 $0.2511 $0.2407 $0.2420 Total Village and Library Rates.................... $0.7641 $0.7285 $0.6999 $0.6642 $0.7039 Others: Kane County.......................................... 0.3467 0.3367 0.3452 0.3322 0.3336 Kane County Forest Preserve District................. 0.1432 0.1905 0.1747 0.1974 0.1932 Aurora Township...................................... 0.1612 0.1559 0.1501 0.1449 0.1450 Aurora Township Road and Bridge...................... 0.0776 0.0743 0.0715 0.0690 0.0691 Fox Valley Park District............................. 0.4068 0.3846 0.3746 0.4037 0.4014 North Aurora Fire District........................... 0.7516 0.7153 0.7376 0.6943 0.6982 School District Number 129........................... 3.8155 3.6786 3.5635 4.1252 4.1225 Community College District Number 516................ 0.4099 0.3933 0.3984 0.3950 0.3995 Total Rates(4)..................................... $6.8765 $6.6577 $6.5155 $7.0259 $7.0664 Notes: (1) Source: Kane County Clerk. (2) Statutory tax rate limits for the Village are as follows: Corporate ($0.4375); Police Protection ($0.6000); all

others have no limit. (3) Statutory tax rate limits for the Library are as follows: Corporate ($0.6000); and Building Acquisition ($0.0200). (4) Representative tax rates for other government units are from Aurora Township tax code 16, which represents

approximately 26% of the Village's 2008 EAV.


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Tax Extensions and Collections(1) (Includes Library Levy and Excludes Road and Bridge Levy)

Levy Coll. Taxes Taxes Collected Year Year Extended(2) Amount(3) Percent 2002............. 2003............ $ 2,265,484 $2,266,900 100.06% 2003............. 2004............ 2,499,596 2,483,384 99.35% 2004............. 2005............ 2,707,303 2,705,796 99.94% 2005............. 2006............ 3,058,374 3,058,503 100.00% 2006............. 2007............ 3,346,068 3,348,420 100.07% 2007............. 2008............ 3,671,513 3,670,737 99.98% 2008............. 2009(4)......... 3,780,366 2,947,305 77.96% Notes: (1) Source: Kane County Treasurer.

(2) Tax extensions have been adjusted for abatements. (3) Total collections include back taxes, taxpayer refunds, interest, etc. (4) In collection. As of September 30, 2009.

Principal Taxpayers(1)

Taxpayer Name Business/Service 2008 EAV(2) Dart Container Corporation.................................... Manufacturer ............................................. $ 5,885,679 Woodmans Food Market, Inc..................................... Grocery .................................................. 4,628,722 Summit Enterprises of Illinois, Ltd........................... Real Estate .............................................. 4,593,794 Courtyards Village West Apartments LLC........................ Apartment Complex ........................................ 3,802,322 Preferred Real Estate LLC..................................... Real Estate .............................................. 3,157,289 Metropolitan Bank & Trust Co Tr#2030.......................... Real Estate .............................................. 3,086,693 Target Corporation............................................ Retail Store ............................................. 2,848,169 J C Penny Properties Inc...................................... Department Store ......................................... 2,473,372 Fox River Corporate Center 2006 LLC........................... Business Center .......................................... 2,293,063 Liberty Illinois LP........................................... Real Estate .............................................. 2,097,189 Total................................................................................................................. $34,866,292 Ten Largest Taxpayers as Percent of Village's 2008 EAV ($569,761,326) ................................................. 6.12% Notes: (1) Source: Kane County Clerk. (2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed

contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. The 2008 EAV is the most current available.

REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES Tax Levy and Collection Procedures

Local assessment officers determine the assessed valuation of taxable real property and railroad property not

held or used for railroad operations. The Illinois Department of Revenue (the “Department”) assesses certain other types of taxable property, including railroad property held or used for railroad operations. Local assessment officers’ valuation determinations are subject to review at the county level and then, in general, to equalization by the Department. Such equalization is achieved by applying to each county’s assessments a multiplier determined by the Department. The purpose of equalization is to provide a common basis of assessments among counties by adjusting assessments toward the statutory standard of 33-1/3% of fair cash value. Farmland is assessed according to a statutory formula which takes into account factors such as productivity and crop mix. Taxes are extended against the assessed values after equalization.


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Property tax levies of each taxing body are filed in the office of the county clerk of each county in which territory of

that taxing body is located. The county clerk computes the rates and amount of taxes applicable to taxable property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to each respective parcel of taxable property. The county clerk then supplies to the appropriate collecting officials within the county the information needed to bill the taxes attributable to the various parcels therein. After the taxes have been collected, the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected. Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes that are not paid when due, or that are not paid by mail and postmarked on or before the due date, are subject to a penalty of 1-1/2% per month until paid. Unpaid property taxes, together with penalties, interest and costs, constitute a lien against the property subject to the tax. Exemptions

An annual General Homestead Exemption (the “General Homestead Exemption”) provides that the Equalized Assessed Valuation (“EAV”) of certain property owned and used for residential purposes (“Residential Property”) may be reduced by the amount of any increase over the 1977 EAV, up to a maximum reduction of $3,500 for assessment years prior to assessment year 2004 in counties with less than 3,000,000 inhabitants, and a maximum reduction of $5,000 for assessment year 2004 through 2007 in all counties. Additionally, the maximum reduction is $5,500 for assessment year 2008 and the maximum reduction is $6,000 for assessment year 2009 and thereafter in all counties.

The Homestead Improvement Exemption applies to Residential Properties that have been improved or rebuilt in the 2

years following a catastrophic event. The exemption is limited to $45,000 through December 31, 2003, and $75,000 per year beginning January 1, 2004 and thereafter, to the extent the assessed value is attributable solely to such improvements or rebuilding.

Additional exemptions exist for senior citizens. The Senior Citizens Homestead Exemption (“Senior Citizens

Homestead Exemption”) operates annually to reduce the EAV on a senior citizen’s home for assessment years prior to 2004 by $2,000 in counties with less than 3,000,000 inhabitants. For assessment years 2004 and 2005, the maximum reduction is $3,000 in all counties. For assessment years 2006 and 2007, the maximum reduction is $3,500 in all counties. In addition, for assessment year 2008 and thereafter, the maximum reduction is $4,000 for all counties. Furthermore, beginning with assessment year 2003, for taxes payable in 2004, property that is first occupied as a residence after January 1 of any assessment year by a person who is eligible for the Senior Citizens Homestead Exemption must be granted a pro rata exemption for the assessment year based on the number of days during the assessment year that the property is occupied as a residence by a person eligible for the exemption.

A Senior Citizens Assessment Freeze Homestead Exemption (“Senior Citizens Assessment Freeze Homestead

Exemption”) freezes property tax assessments for homeowners, who are 65 and older and receive a household income not in excess of the maximum income limitation. The maximum income limitation is $35,000 for years prior to 1999, $40,000 for assessment years 1999 through 2003, $45,000 for assessment years 2004 and 2005, $50,000 from assessment years 2006 and 2007 and for assessments year 2008 and after, the maximum income limitation is $55,000. In general, the Senior Citizens Assessment Freeze Homestead Exemption limits the annual real property tax bill of such property by granting to qualifying senior citizens an exemption as to a portion of the valuation of their property. In counties with a population of 3,000,000 or more, the exemption for all assessment years is equal to the EAV of the residence in the assessment year for which application is made less the base amount. Furthermore, for those counties with a population of less than 3,000,000, the Senior Citizens Assessment Freeze Homestead Exemption is as follows: through assessment year 2005 and for assessment year 2007 and later, the exempt amount is the difference between (i) the current EAV of their residence and (ii) the base amount, which is the EAV of a senior citizen’s residence for the year prior to the year in which he or she first qualifies and applies for the Exemption (plus the EAV of improvements since such year). For assessment year 2006, the amount of the Senior Citizens Assessment Freeze Homestead Exemption phases out as the amount of household income increases. The amount of the Senior Citizens Assessment Freeze Homestead Exemption is calculated by using the same formula as above, and then multiplying the resulting value by a ratio that varies according to household income.


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Another exemption available to disabled veterans operates annually to exempt up to $70,000 of the Assessed

Valuation of property owned and used exclusively by such veterans or their spouses for residential purposes. Also, certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not-for-profit schools and public schools, churches, and not-for-profit hospitals and public hospitals. However, individuals claiming exemption under the Disabled Persons’ Homestead Exemption (“Disabled Persons’ Homestead Exemption”) or the Disabled Veterans Standard Homestead Exemption (“Disabled Veterans Standard Homestead Exemption”) cannot claim the aforementioned exemption.

Furthermore, beginning with assessment year 2007, the Disabled Persons’ Homestead Exemption provides an

annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Veterans Standard Homestead Exemption cannot claim the aforementioned exemption.

In addition, the Disabled Veterans Standard Homestead Exemption provides disabled veterans an annual

homestead exemption starting with assessment year 2007 and thereafter. Specifically, (i) those veterans with a service-connected disability of 75% are granted an exemption of $5,000 and (ii) those veterans with a service-connected disability of less than 75%, but at least 50% are granted an exemption of $2,500. Furthermore, the veteran’s surviving spouse is entitled to the benefit of the exemption, provided that the spouse has legal or beneficial title of the homestead, resides permanently on the homestead and does not remarry. Moreover, if the property is sold by the surviving spouse, then an exemption amount not to exceed the amount specified by the current property tax roll may be transferred to the spouse’s new residence, provided that it is the spouse’s primary residence and the spouse does not remarry. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Persons’ Homestead Exemption cannot claim the aforementioned exemption.

Beginning with assessment year 2007, the Returning Veterans’ Homestead Exemption (“Returning Veterans’

Homestead Exemption”) is available for property owned and occupied as the principal residence of a veteran in the assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces. This provision grants a homestead exemption of $5,000, which is applicable in all counties. In order to apply for the Returning Veterans’ Homestead Exemption, the individual must pay real estate taxes on the property, own the property or have either a legal or an equitable interest in the property, “or a leasehold interest of land on which a single family residence is located, which is occupied as a principle residence of a veteran returning from an armed conflict involving the armed forces of the United States who has an ownership interest therein, legal, equitable or as a lessee, and on which the veteran is liable for the payment of property taxes.” Those individuals eligible for the Returning Veterans’ Homestead Exemption may claim the Returning Veterans’ Homestead Exemption, in addition to other homestead exemptions, unless otherwise noted. Property Tax Extension Limitation Law

The Property Tax Extension Limitation Law, as amended (the “Limitation Law”), limits the annual growth in

the amount of property taxes to be extended for certain Illinois non-home-rule units, including the Village. In general, the annual growth permitted under the Limitation Law is the lesser of 5% or the percentage increase in the Consumer Price Index during the calendar year preceding the levy year. Taxes can also be increased due to new construction, referendum approval of tax rate increases, mergers and consolidations.

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 affected taxing bodies unless they are approved by referendum, are alternate bonds or are for certain refunding purposes.


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The Village has the authority to levy taxes for many different purposes. See the table entitled Representative

Tax Rates under “PROPERTY ASSESSMENT AND TAX INFORMATION” herein. The ceiling at any particular time on the rate at which these taxes may be extended for the Village is either (i) unlimited (as provided by statute), (ii) initially set by statute but permitted to be increased by referendum, (iii) capped by statute, or (iv) limited to the rate approved by referendum. 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, at which the rate is not permitted to be further increased by referendum or otherwise. Therefore, taxing districts (such as the Village) will have increased flexibility to levy taxes for the purposes for which they most need the money. The total aggregate tax rate for the various purposes subject to the Limitation Law, however, will not be allowed to exceed the Village’s limiting rate computed in accordance with the provisions of the Limitation Law.

Local governments, including the Village, can issue limited tax bonds in lieu of general obligation bonds that

have otherwise been authorized by applicable law.

Truth in Taxation Law Legislation known as the Truth in Taxation Law (the “Law”) limits the aggregate amount of certain taxes which

can be levied by, and extended for, a taxing district to 105% of the amount of taxes extended in the preceding year unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified levels.

FINANCIAL INFORMATION

Financial Reports

The Village’s financial statements are audited annually by certified public accountants. The Village’s financial statements are completed on a modified accrual basis of accounting consistent with generally accepted accounting principles applicable to governmental entities. See APPENDIX A for more detail. Summary Financial Information

The following tables are summaries and do not purport to be the complete audits, copies of which are available upon request. See APPENDIX A for excerpts of the Village’s 2008 fiscal year audit.

The Village of North Aurora has received the Government Finance Officer’s Association of the United States

and Canada’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report for the fiscal year ended May 31, 2008. This was the eighth consecutive year that the Village has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report that satisfies both generally accepted accounting principles and applicable legal requirements.

In addition, the Village received the GFOA’s Distinguished Budget Presentation Award for the fiscal year 2009-2010 Budget. This was the fourth consecutive year that the Village has received this award for its annual budget document. In order to qualify for the award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device.


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No Consent or Updated Information Requested of the Auditor

The tables and excerpts (collectively, the “Excerpted Financial Information”) contained in this “FINANCIAL

INFORMATION” section and in APPENDIX A are from the audited financial statements of the Village, including the audited financial statements for the fiscal year ended May 31, 2008 (the “2008 Audit”). The 2008 Audit has been prepared by Sikich, Certified Public Accountants, Aurora, Illinois, (the “Auditor”), and approved by formal action of the Village Board. The Village has not requested the Auditor to update information contained in the Excerpted Financial Information; nor has the Village requested that the Auditor consent to the use of the Excerpted Financial Information in this Official Statement. Other than as expressly set forth in this Official Statement, the financial information contained in the Excerpted Financial Information has not been updated since the date of the 2008 Audit. The inclusion of the Excerpted Financial Information in this Official Statement in and of itself is not intended to demonstrate the fiscal condition of the Village since the date of the 2008 Audit. Questions or inquiries relating to financial information of the Village since the date of the 2008 Audit should be directed to the Village.

Statement of Net Assets Governmental Activities

Audited as of May 31 2005 2006 2007 2008

ASSETS: Cash and Cash Equivalents................................ $ 5,997,582 $ 9,003,567 $ 8,162,359 $ 9,918,133 Cash with Paying Agent................................... 0 4,173 0 1,468 Investments.............................................. 1,773,554 2,297,563 2,472,642 2,772,206 Receivables, Net: Property Taxes......................................... 1,744,987 2,020,885 2,229,997 2,674,126 Other Taxes............................................ 861,750 1,066,698 1,438,008 1,309,104 Accounts............................................... 57,206 66,539 47,307 41,676 Intergovernmental...................................... 13,697 16,520 23,876 23,876 Accrued Interest....................................... 0 14,814 1,339 7,751 Other.................................................. 45,936 40,470 79,719 70,283 Prepaid Items............................................ 31,003 39,750 43,754 52,946 Inventory................................................ 4,445 9,981 11,448 11,898 Capital Assets: Non-Depreciable........................................ 3,173,785 4,914,416 3,797,559 6,461,747 Depreciable, Net....................................... 31,103,133 29,912,165 35,253,310 35,440,124 Total Assets......................................... $44,807,078 $49,407,541 $53,561,318 $58,785,338 LIABILITIES: Accounts Payable......................................... $426,325 $327,300 $589,442 $ 1,548,236 Retainage Payable........................................ 0 228,901 345,229 227,490 Accrued Payroll.......................................... 337 9,230 4,049 2,237 Accrued Interest Expense................................. 134,476 122,365 125,329 105,892 Deferred Property Taxes.................................. 1,912,194 2,194,163 2,454,091 2,766,834 Other Deferred Revenue................................... 200 266,827 588,989 1,733,549 Due to Others............................................ 253,854 21,967 22,093 68,984 Noncurrent Liabilities: Due Within One Year..................................... 946,885 380,058 446,855 453,259 Due in More Than One Year............................... 7,257,193 6,929,390 7,135,374 6,228,857 Total Liabilities...................................... $10,931,464 $10,480,201 $11,711,451 $13,135,338 NET ASSETS: Invested in Capital Assets, Net of Related Debt .......... $27,807,918 $28,664,581 $32,653,441 $36,451,871 Restricted For: Debt Service............................................ 33,024 43,576 57,058 64,343 Public Safety........................................... 12,575 14,025 18,828 21,574 Highways and Streets.................................... 566,954 615,730 493,803 519,894 Economic Development.................................... 442,222 514,293 436,764 635,094 Subdivision Improvements................................ 77,810 97,047 159,271 159,972 Tort Purposes........................................... 126,959 127,795 138,745 135,783 Sanitation.............................................. 1,057,866 1,370,052 1,567,996 1,315,416 Tourism................................................. 6,671 3,950 23,807 34,576 Storm Water Improvements................................ 33,779 46,779 58,101 0 Municipal Improvements.................................. 403,526 0 0 0 Capital Improvements.................................... 0 3,920,658 0 0 Unrestricted............................................. 3,306,310 3,508,854 6,242,053 6,311,477 Total Net Assets....................................... $33,875,614 $38,927,340 $41,849,867 $45,650,000


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Statement of Activities

Governmental Activities

Audited for the Fiscal Year Ended May 31 2005 2006 2007 2008

FUNCTIONS/PROGRAMS: General Government...................................... $ (166,796) $ (203,217) $ (800,803) $ (970,282) Public Safety........................................... (2,533,234) (2,635,553) (2,811,688) (3,107,723) Public Works............................................ (2,059,382) 694,352 (913,715) (2,047,360) Sanitation.............................................. 92,213 (40,730) (143,286) 157,220 Health and Welfare...................................... (85,329) (71,535) (69,907) (290,372) Interest................................................ (344,337) (320,402) (325,448) (266,082) Total................................................. $(5,096,865) $(2,577,085) $(5,064,847) $(6,524,599) GENERAL REVENUES: Taxes: Property and Replacement............................... $ 1,867,878 $ 2,047,676 $ 2,225,352 $ 2,479,136 Income................................................. 913,172 1,064,667 1,187,151 1,422,163 Sales.................................................. 2,666,884 3,147,327 4,014,090 4,596,159 Telecommunications..................................... 206,459 220,084 238,991 252,686 Utility................................................ 217,215 265,398 243,691 300,320 Amusement.............................................. 306,471 151,117 82,478 78,403 Other.................................................. 24,773 199,723 215,788 297,307 Investment Income....................................... 157,408 480,414 708,088 621,671 Miscellaneous........................................... 58,345 18,155 2,440 74,537 Contributions........................................... 10,624,534 0 0 0 Transfers............................................... 34,250 34,250 0 0 Total................................................. $17,077,389 $ 7,628,811 $ 8,918,069 $10,122,382 Change in Net Assets.................................... $11,980,524 $ 5,051,726 $ 3,853,222 $ 3,597,783 Net Assets, June 1...................................... $21,895,090 $33,875,614 $37,996,645(1) $42,052,217(1) Net Assets, May 31...................................... $33,875,614 $38,927,340 $41,849,867 $45,650,000 Note: (1) As restated.

General Fund Balance Sheet

Audited as of May 31 2004 2005 2006 2007 2008 ASSETS: Cash and Cash Equivalents .................... $ 535,012 $1,596,353 $1,390,929 $2,006,139 $2,150,282 Investments .................................. 1,151,421 1,167,815 2,146,420 2,314,136 2,425,210 Receivables: Property Taxes .............................. 1,224,242 1,222,189 1,348,335 1,496,365 1,761,608 Other Taxes ................................. 322,397 382,757 425,031 1,115,041 984,444 Intergovernmental ........................... 12,420 13,697 16,520 23,876 23,876 Accrued Interest ............................ 0 0 4,744 1,339 7,243 Other ....................................... 33,071 45,936 40,470 79,719 70,283 Advances to Other Funds ...................... 45,265 45,265 0 0 0 Prepaid Items ................................ 19,254 31,003 38,250 42,233 52,946 Due from Other Funds ......................... 196 0 325,764 0 0 Total Assets ............................... $3,343,278 $4,505,015 $5,736,463 $7,078,848 $7,475,892 LIABILITIES AND FUND EQUITY: Liabilities: Accounts Payable ............................ $ 76,791 $ 144,034 $ 131,975 $ 347,549 $ 605,377 Accrued Payroll ............................. 0 337 9,230 4,049 2,237 Deferred Property Taxes ..................... 1,224,242 1,328,323 1,460,867 1,640,394 1,822,586 Other Deferred Revenue ...................... 0 200 116,827 37,379 0 Due to Others ................................ 49,432 55,466 19,110 21,457 68,048 Compensated Absences Payable ................ 160,753 0 0 0 0 Total Liabilities .......................... $1,511,218 $1,528,360 $1,738,009 $2,050,828 $2,498,248 Fund Equity: Reserved for Advances to Other Funds ........ $ 45,265 $ 45,265 $ 0 $ 0 $ 0 Reserved for Public Safety .................. 11,466 12,575 14,025 18,828 21,574 Reserved for Prepaid Items .................. 19,254 31,003 38,250 42,233 52,946 Unreserved .................................. 1,756,075 2,887,812 3,946,179 4,966,959 4,903,124 Total Fund Equity .......................... $1,832,060 $2,976,655 $3,998,454 $5,028,020 $4,977,644 Total Liabilities and Fund Equity .......... $3,343,278 $4,505,015 $5,736,463 $7,078,848 $7,475,892


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General Fund Revenues and Expenditures

Audited Fiscal Year Ending May 31 2004 2005 2006 2007 2008 REVENUES: Taxes: Property Taxes............................ $1,128,707 $1,216,757 $1,326,578 $1,461,421 $1,628,618 Replacement Taxes......................... 21,778 26,228 35,566 30,109 40,985 Sales Tax................................. 924,128 975,310 1,389,295 3,232,663(1) 3,699,703(1) Use Tax................................... 105,175 148,460 167,398 179,003 218,787 State Income Tax.......................... 638,534 913,172 1,064,667 1,187,151 1,422,163 Telecommunications Tax.................... 0 82,857 88,034 95,596 101,074 Off-Track Handle Tax...................... 250,221 226,114 67,831 0 44,597 Amusement Tax............................. 81,229 80,357 83,286 82,478 78,403 Other Taxes............................... 0 0 3,179 3,205 3,396 Licenses and Permits....................... 541,752 876,355 1,171,903 1,000,324 599,382 Intergovernmental.......................... 21,207 14,308 37,815 32,145 114,328 Charges for Services....................... 455,112 312,674 367,865 525,417 518,755 Fines and Forfeits......................... 202,261 212,662 229,598 334,303 319,105 Interest................................... 24,678 81,941 234,584 338,656 345,975 Miscellaneous.............................. 97,104 61,629 9,616 1,300 1,721 Total Revenues........................... $4,491,886 $5,228,824 $6,277,215 $8,503,771 $9,136,992 EXPENSES: General Government......................... $1,249,738 $1,041,261 $1,056,656 $1,629,338 $2,004,608 Police Commission.......................... 12,006 20,634 40,324 15,239 1,984 Police Department.......................... 2,529,740 2,718,259 3,001,313 3,326,063 3,663,944 Public Works............................... 860,997 1,008,098 1,050,205 1,388,658 1,695,534 Health & Safety............................ 96,029 85,329 71,535 69,907 290,372 Capital Outlay............................. 1,213 678 332 0 0 Total Expenditures....................... $4,749,723 $4,874,259 $5,220,365 $6,429,205 $7,656,442 Excess (Deficiency) of Revenues Over (Under) Expenditures................. $ (257,837) $ 354,565 $1,056,850 $2,074,566 $1,480,550 OTHER FINANCING SOURCES (USES): Operating Transfers In..................... $ 261,000 $ 790,000 $ 793,949 $ 250,000 $ 61,991 Operating Transfers Out.................... (2,125) 0 (829,000)(2) (1,295,000)(2) (1,592,917)(2) Sale of Fixed Assets....................... 1,468 30 0 0 0 Total Other Financing Sources (Uses)..... $ 260,343 $ 790,030 $ (35,051) $(1,045,000) $(1,530,926) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses..... $ 2,506 $1,144,595 $1,021,799 $1,029,566 $ (50,376) Fund Balance, Beginning.................... $1,829,554 $1,832,060 $2,976,655 $3,998,454 $5,028,020 Fund Balance, Ending....................... $1,832,060 $2,976,655 $3,998,454 $5,028,020 $4,977,644 Notes: (1) Includes sales taxes generated from the Auto Mall, which had been previously recorded in a separate fund. The

amount of sales taxes generated from the Auto Mall for previous years are as follows: 2004 - $1,145,855, 2005 $1,140,295 and 2006 - $1,157,980.

(2) Includes a $750,000 transfer to the Capital Projects Fund for 2006, a $1,200,000 transfer to the Capital Projects Fund for 2007 and a $1,500,000 transfer to the Capital Projects Fund for 2008.


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General Fund

Estimated and Budgeted Financial Information

Estimated Budgeted 5/31/2009 5/31/2010

REVENUES: Taxes: Property Taxes.............................................. $1,812,750 $1,950,000 Replacement Taxes........................................... 45,213 35,000 Sales Tax................................................... 3,335,383 3,300,000 Use Tax..................................................... 221,787 230,000 State Income Tax............................................ 1,399,626 1,250,000 Telecommunications Tax...................................... 101,700 113,000 Off-Track Handle Tax........................................ 75,959 86,000 Amusement Tax............................................... 73,592 70,000 Other Taxes................................................. 2,097 3,400 Licenses and Permits......................................... 383,808 332,500 Franchises................................................... 165,685 183,000 Charges for Services......................................... 307,390 162,200 Rent......................................................... 22,000 22,000 Fines and Forfeits........................................... 326,941 328,200 Investment Income............................................ 209,277 88,000 Miscellaneous................................................ 71,410 129,000 Total Revenues............................................. $8,554,618 $8,282,300 EXPENDITURES: Legislative.................................................. $ 69,801 $ 72,055 Village Clerk................................................ 10,820 14,675 Plan Commission.............................................. 4,193 7,600 Admin/Finance................................................ 683,468 667,883 Professional Services........................................ 143,540 181,530 Police Commission............................................ 16,699 13,925 Police Department............................................ 3,792,323 3,867,793 Community Development........................................ 484,036 527,393 Public Works................................................. 1,850,515 1,568,706 Health and Safety............................................ 88,768 73,500 Non-Departmental............................................. 820,408 835,750 Total Expenditures......................................... $7,964,571 $7,830,810 Revenues Over/(Under) Expenditures........................... $ 590,047 $ 451,490 Other Financing Sources/(Uses): Operating Transfers In....................................... $ 162,166 $ 162,196 Operating Transfers Out – Capital Projects Fund .............. (800,000) 0 Operating Transfers Out – Police Station Debt Service ........ (280,623) (661,642) Operating Transfers Out – Other.............................. (16,667) (20,000) Excess/(Deficiency) of Revenues and Other Fin Sources Over/(Under) Expenditures and Other Fin Uses ................ $ (345,077) $ (67,956)

PENSION AND RETIREMENT OBLIGATIONS

See APPENDIX A herein.


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REGISTRATION, TRANSFER AND EXCHANGE

See also APPENDIX B for information on registration, transfer and exchange of book-entry bonds. The Bonds will be initially issued as book-entry bonds.

The Village shall cause books (the “Bond Register”) for the registration and for the transfer of the Bonds to be kept at the principal corporate trust office of the Bond Registrar in Chicago, Illinois. The Village will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed by the Village for use in the transfer and exchange of Bonds.

Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in the Bond Ordinance. Upon surrender for transfer or exchange of any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or such owner’s attorney duly authorized in writing, the Village shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same maturity and interest rate of authorized denominations, for a like aggregate principal amount.

The execution by the Village of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity less Bonds previously paid. The Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning at the close of business on the fifteenth day of the month next preceding any interest payment date on such Bond (known as the record date) and ending at the opening of business on such interest payment date, nor to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a period of fifteen days next preceding mailing of a notice of redemption of any Bonds. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the order of the registered owner thereof or such owner’s legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.

No service charge shall be made for any transfer or exchange of Bonds, but the Village or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption.


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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 Village 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 Village’s compliance with the above-referenced covenants, under present law, in the opinion of

Bond Counsel, interest on the Bonds (i) is excludable from the gross income of the owners thereof for federal income tax purposes, and (ii) 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 “adjusted current earnings” as described below.

In rendering its opinion, Bond Counsel will rely upon certifications of the Village with respect to certain

material facts within the Village’s knowledge. 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 for a corporation, 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 generally 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 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.

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.


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For an investor who purchases an OID Bond in the initial public offering at the Issue Price for such maturity

and who holds such OID Bond to its stated maturity, subject to the condition that the Village complies with the covenants discussed above, (a) the full amount of original issue discount with respect to such OID Bond 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 Bond 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 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 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 a Bond is purchased at any time for a price that is less than the Bond’s stated redemption price at maturity or,

in the case of an OID Bond, its Issue Price plus accreted original issue discount (the “Revised Issue Price”), the purchaser will be treated as having purchased a Bond 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 a Bond 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 Bond 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 Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the Bonds.

An investor may purchase a Bond 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 Bond 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 Bond. Investors who purchase a Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the Bond’s basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the Bond.

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.

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 Village as a taxpayer and the Bondholders 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.


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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 Bond 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 Bond 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.

QUALIFIED TAX-EXEMPT OBLIGATIONS Subject to the Village’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.

CONTINUING DISCLOSURE

The Village will enter into a Continuing Disclosure Undertaking (the “Undertaking”) for the benefit of the beneficial owners of the Bonds to send certain information annually and to provide notice of certain events to the Municipal Securities Rulemaking Board (the “MSRB”) pursuant to the requirements of Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934. The information to be provided on an annual basis, the events which will be noticed on an occurrence basis and a summary of other terms of the Undertaking, including termination, amendment and remedies, are set forth below under “THE UNDERTAKING.”

The Village has represented that it has not failed to comply in all material respects with each and every undertaking previously entered into by it pursuant to the Rule. A failure by the Village to comply with the Undertaking will not constitute a default under the Ordinance and beneficial owners of the Bonds are limited to the remedies described in the Undertaking. See “THE UNDERTAKING - Consequences of Failure of the Village to Provide Information.” A failure by the Village to comply with the Undertaking 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. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price.

Bond Counsel expresses no opinion as to whether the Undertaking complies with the requirements of Section (b)(5) of the Rule.


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THE UNDERTAKING

The following is a brief summary of certain provisions of the Undertaking of the Village and does not purport to be complete. The statements made under this caption are subject to the detailed provisions of the Undertaking, a copy of which is available upon request from the Village.

Annual Financial Information Disclosure

The Village covenants that it will disseminate its Annual Financial Information and its Audited Financial Statements, if any (as described below) to the MSRB 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. The Village is required to deliver such information so that such entities receive the information by the dates specified in the Undertaking.

“Annual Financial Information” means:

1. The table under the heading of “Retailers’ Occupation, Service Occupation and Use Tax” within this Official Statement;

2. All of the tables under the heading “PROPERTY ASSESSMENT AND TAX INFORMATION” within this Official Statement;

3. All of the tables under the heading “DEBT INFORMATION” within this Official Statement; and

4. All of the tables under the heading “FINANCIAL INFORMATION” within this Official Statement.

Material Events Disclosure

The Village covenants that it will disseminate in a timely manner to the MSRB the disclosure of the occurrence of an Event (as described below) with respect to the Bonds that is material, as materiality is interpreted under the Securities Exchange Act of 1934, as amended, 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. The “Events” are:

• Principal and interest payment delinquencies • Non-payment related defaults • 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 or events affecting the tax-exempt status of the security • Modifications to the rights of security holders • Bond calls • Defeasances • Release, substitution or sale of property securing repayment of the securities • Rating changes


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Consequences of Failure of the Village to Provide Information

The Village shall give notice in a timely manner to the MSRB of any failure to provide disclosure of Annual Financial Information and Audited Financial Statements when the same are due under the Undertaking.

In the event of a failure of the Village to comply with any provision of the Undertaking, the beneficial owner of any Bond may seek mandamus or specific performance by court order to cause the Village to comply with its obligations under the Undertaking. A default under the Undertaking shall not be deemed a default under the Ordinance, and the sole remedy under the Undertaking in the event of any failure of the Village to comply with the Undertaking shall be an action to compel performance. Amendment; Waiver

Notwithstanding any other provision of the Undertaking, the Village by resolution or ordinance authorizing such amendment or waiver, may amend the Undertaking, and any provision of the Undertaking may be waived, if:

(a) (i) The amendment or the 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 Village, or type of business conducted; or

(ii) The Undertaking, 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 (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 Village (such as Bond Counsel).

In the event that the Commission or the MSRB or other regulatory authority approves or requires Annual

Financial Information or notices of a material Event to be filed with a central post office, governmental agency or similar entity other than the MSRB or in lieu of the MSRB, the Village shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending the Undertaking. Termination of Undertaking

The Undertaking shall be terminated if the Village shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the Ordinance. The Village shall give notice to the MSRB in a timely manner if this paragraph is applicable. Additional Information

Nothing in the Undertaking shall be deemed to prevent the Village from disseminating any other information, using the means of dissemination set forth in the Undertaking or any other means of communication, or including any other information in any Annual Financial Information or Audited Financial Statements or notice of occurrence of a material Event, in addition to that which is required by the Undertaking. If the Village chooses to include any information from any document or notice of occurrence of a material Event in addition to that which is specifically required by the Undertaking, the Village shall have no obligation under the Undertaking to update such information or include it in any future disclosure or notice of occurrence of a material Event.


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Dissemination of Information; Dissemination Agent

When filings are required to be made with the MSRB in accordance with the Undertaking, such filings are required to be made through its Electronic Municipal Market Access (EMMA) system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule.

The Village may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under the Undertaking, and may discharge any such Agent, with or without appointing a successor Dissemination Agent.

OPTIONAL REDEMPTION

Bonds due January 1, 2011-2017, inclusive, are non-callable. Bonds due January 1, 2018-2021, inclusive, are callable in whole or in part on any date on or after January 1, 2017, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the Village and within any maturity by lot.

The Bond Registrar will give notice of redemption, identifying the Bonds (or portions thereof) to be redeemed,

by mailing a copy of the redemption notice by first class mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner of each Bond (or portion thereof) to be redeemed at the address shown on the registration books maintained by the Bond Registrar. 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 such notice of redemption, such notice may, at the option of the Village, 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 Village 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 Village 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 as 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 Village 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.

LITIGATION

There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the Village taken with respect to the issuance or sale thereof.


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CERTAIN LEGAL MATTERS

Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois, as Bond Counsel (the “Bond Counsel”) who has been retained by, and acts as, Bond Counsel to the Village. 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 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 Official Statement, except that in its capacity as Bond Counsel, Chapman and Cutler LLP, Chicago, Illinois, has, at the request of the Village reviewed only those sections 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 of and for the benefit of the Village and did not include any obligation to establish or confirm factual matters set forth herein.

OFFICIAL STATEMENT AUTHORIZATION

This Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by the Village, and all expressions of opinion, whether or not so stated, are intended only as such.

INVESTMENT RATING The Village has supplied certain information and material concerning the Bonds and the Village to the rating

service shown on the cover page, including certain information and materials which may not have been included in this Official Statement, as part of its application for an investment rating on the Bonds. A rating reflects only the views of the rating agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of the investment rating may be obtained from the rating agency: Standard & Poor’s Corporation, 55 Water Street, New York, New York 10041, telephone 212-438-2000. The Village will provide appropriate periodic credit information to the rating service to maintain a rating on the Bonds.

DEFEASANCE

The Bonds are subject to legal defeasance by the irrevocable deposit of full faith and credit obligations of the United States of America, obligations the timely payment of which are guaranteed by the United States Treasury, or certificates of participation in a trust comprised solely of full faith and credit obligations of the United States of America (collectively, the “Government Obligations”) with a bank or trust company acting as escrow agent. Any such deposit must be of sufficient amount that the receipts from the Government Obligations plus any cash on deposit will be sufficient to pay debt service on the Bonds when due or as called for redemption.


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UNDERWRITING

The Bonds were offered for sale by the Village at a public, competitive sale on October 19, 2009. The best bid

submitted at the sale was submitted by ____________________ (the “Underwriter”). The Village awarded the contract for sale of the Bonds to the Underwriter at a price of $___________. The Underwriter has represented to the Village that the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth in the addendum to this Official Statement.

FINANCIAL ADVISOR

The Village has engaged Speer Financial, Inc. as financial advisor (the “Financial Advisor”) in connection with the issuance and sale of the Bonds. The Financial Advisor will not participate in the underwriting of the Bonds. The financial information included in the Official Statement has been compiled by the Financial 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. The Financial Advisor is not a firm of certified public accountants and does not serve in that capacity or provide accounting services in connection with the Bonds. The Financial Advisor is not obligated to undertake any independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement, nor is the Financial Advisor obligated by the Village’s continuing disclosure undertaking.

CERTIFICATION We have examined this Official Statement dated October 6, 2009, for the $4,665,000* General Obligation Refunding Library Bonds, Series 2009, believe it to be true and correct and will provide to the purchaser of the Bonds at the time of delivery a certificate confirming to the purchaser that to the best of our knowledge and belief information in the Official Statement was at the time of acceptance of the bid for the Bonds and, including any addenda thereto, was at the time of delivery of the Bonds true and correct in all material respects and does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. /s/ DALE BERMAN /s/ WILLIAM D. HANNAH President Finance Director VILLAGE OF NORTH AURORA VILLAGE OF NORTH AURORA Kane County, Illinois Kane County, Illinois *Subject to change.

APPENDIX A

VILLAGE OF NORTH AURORA KANE COUNTY, ILLINOIS

EXCERPTS OF FISCAL YEAR 2008 AUDITED FINANCIAL STATEMENTS

APPENDIX B

DESCRIBING BOOK-ENTRY-ONLY ISSUANCE

1. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for

the Bonds (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.

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 Standard & Poor’s highest rating: AAA. 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 and www.dtc.org.

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.

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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 the Village 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 Village or the Paying 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, the Paying Agent, or the Village, 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 Village or the Paying 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 any 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 any 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 any 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 Village or the Paying 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 Village 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 Village believes to be reliable, but the Village takes no responsibility for the accuracy thereof.

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APPENDIX C

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 of the President and Board of Trustees of the Village of North Aurora, Kane County, Illinois (the “Village”), passed preliminary to the issue by the Village of its fully registered General Obligation Refunding Library Bonds, Series 2009 (the “Bonds”), to the amount of $_____________, dated November 15, 2009, due serially on January 1 of the years and in the amounts and bearing interest as follows:

2011 $ % 2012 % 2013 % 2014 % 2015 % 2016 % 2017 % 2018 % 2019 % 2020 % 2021 %

the Bonds due on or after January 1, 2018, being subject to redemption prior to maturity at the option of the Village as a whole or in part in any order of their maturity as determined by the Village (less than all of the Bonds of a single maturity to be selected by the Bond Registrar), on January 1, 2017, or on any date thereafter, at the redemption price of par plus accrued interest to the redemption date, as provided in such proceedings, and we are of the opinion that such 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 Village, and all taxable property in the Village 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, 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.

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It is our opinion that, subject to the Village’s compliance with certain covenants, under present law, interest on the Bonds (i) is excludable from gross income of the owners thereof for federal income tax purposes and (ii) 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 Village covenants could cause interest on the Bonds to be includable 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.

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 Village with respect to certain material facts within the Village’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.

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OFFICIAL BID FORM Village of North Aurora October 19, 2009 25 East State Street Speer Financial, Inc. North Aurora, Illinois 60542

President and Board of Trustees:

For the $4,665,000* General Obligation Refunding Library Bonds, Series 2009 of the Village of North Aurora, Kane County, Illinois, as described in the annexed Official Notice of Sale, which is expressly made a part of this bid, we will pay you $_______________________ (no less than $4,627,680) plus accrued interest from November 15, 2009, to the date of delivery for Bonds bearing interest as follows (each rate a multiple of 1/8 or 1/100 of 1%). The discount is subject to adjustment allowing the same $___________ gross spread per $1,000 bond as bid herein. MATURITIES* – JANUARY 1

$350,000 ... 2011 ________% $420,000 ... 2015 ________% $470,000 ... 2018 ________% 370,000 ... 2012 ________% 435,000 ... 2016 ________% 485,000 ... 2019 ________% 385,000 ... 2013 ________% 450,000 ... 2017 ________% 500,000 ... 2020 ________% 400,000 ... 2014 ________% 400,000 ... 2021 ________%

Any consecutive maturities may be aggregated into no more than five term bonds at the option of the bidder in which case the mandatory redemption provisions shall be on the same schedule as above.

Maturities__________ Term Maturity__________ Maturities__________ Term Maturity__________ Maturities__________ Term Maturity__________

Maturities__________ Term Maturity__________ Maturities__________ Term Maturity__________ The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Chapman and

Cutler LLP, Chicago, Illinois. The Village will pay for the legal opinion. The underwriter agrees to apply for CUSIP numbers within 24 hours and pay the fee charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on the Bonds.

As evidence of our good faith, we have wire transferred or enclosed herewith a check or Surety Bond payable to the order of the Treasurer of the Village

in the amount of TWO PERCENT OF PAR (the “Deposit”) under the terms provided in your Official Notice of Sale. Attached hereto is a list of members of our account on whose behalf this bid is made.

Form of Deposit Account Manager Information Bidders Option Insurance Check One: Name Certified/Cashier’s Check [ ] Financial Surety Bond [ ] Address Wire Transfer [ ] By Amount: $93,300 City State/Zip Direct Phone ( ) FAX Number ( ) E-Mail Address

The foregoing bid was accepted and the Bonds sold by ordinance of the Village on October 19, 2009, and receipt is hereby acknowledged of the good faith Deposit which is being held in accordance with the terms of the annexed Official Notice of Sale. VILLAGE OF NORTH AURORA, KANE COUNTY, ILLINOIS *Subject to change. President

----------------------- NOT PART OF THE BID ----------------------- (Calculation of true interest cost)

Bid Post Sale Revision Gross Interest $ Plus Premium $ True Interest Cost $ True Interest Rate % TOTAL BOND YEARS 29,826.08 AVERAGE LIFE 6.394 Years

We have purchased insurance from:

Name of Insurer

(Please fill in)

_____________________ Premium: _____________ Maturities: (Check One) [__] ______________Years [__] All

OFFICIAL NOTICE OF SALE

$4,665,000* VILLAGE OF NORTH AURORA

Kane County, Illinois General Obligation Refunding Library Bonds, Series 2009

The Village of North Aurora. Kane County, Illinois (the “Village”), will receive electronic bids on the SpeerAuction (“SpeerAuction”) website address “www.SpeerAuction.com” for its $4,665,000* General Obligation Refunding Library Bonds, Series 2009 (the “Bonds”), on an all or none basis between 10:30 A.M. and 10:45 A.M., C.D.T., Monday, October 19, 2009. To bid, bidders must have: (1) completed the registration form on the SpeerAuction website, and (2) requested and received admission to the Village’s sale (as described below). Award will be made or all bids rejected at a meeting of the Village on that date. The Village reserves the right to change the date or time for receipt of bids. Any such change shall be made not less than twenty-four (24) hours prior to the revised date and time for receipt of the bids for the Bonds and shall be communicated by publishing the changes in the Amendments Page of the SpeerAuction webpage and through Thompson Municipal News.

The Bonds will constitute valid and legally binding obligations of the Village payable both as to principal and interest from ad valorem taxes levied against all taxable property therein 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. Method of bidding: All-or-none bids must be submitted via internet address www.SpeerAuction.com. No telephone, telefax or personal delivery bids will be accepted. The use of SpeerAuction shall be at the bidder’s risk and expense and the Village shall have no liability with respect thereto, including (without limitation) liability with respect to incomplete, late arriving and non-arriving bids. To bid via the SpeerAuction webpage, bidders must first visit the SpeerAuction webpage where, if they have not previously registered with either SpeerAuction, Grant Street Group (the “Auction Administrator”) or any other website administered by the Auction Administrator, they may register and then request admission to bid on the Bonds. Bidders will be notified prior to the scheduled bidding time of their eligibility to bid. Only NASD registered broker-dealers and dealer banks with DTC clearing arrangements will be eligible to bid. The “Rules” of the SpeerAuction bidding process may be viewed on the SpeerAuction webpage and are incorporated herein by reference. Bidders must comply with the Rules of SpeerAuction in addition to the requirements of the Village’s Official Notice of Sale. In the event the Rules of SpeerAuction and this Official Notice of Sale conflict, this Official Notice of Sale shall be controlling. All bids must be submitted on the SpeerAuction webpage. Bidders may change and submit bids as many times as they choose during the sale period but may not delete a submitted bid. The last bid submitted by a bidder before the deadline for receipt of bids will be compared to all other final bids to determine the winning bidder. During the bidding, no bidder will see any other bidder’s bid nor the status of their bid relative to other bids (e.g., whether their bid is a leading bid). The bidder bears all risk of transmission failure. Any questions regarding bidding on the SpeerAuction website should be directed to Grant Street Group at (412) 391-5555 x370. The Village reserves the right to reject all bids, to reject any bid not conforming to this Official Notice of Sale, and to waive any irregularity or informality with respect to any bid. Additionally, the Village reserves the right to modify or amend this Official Notice of Sale; however, any such modification or amendment shall not be made less than twenty-four (24) hours prior to the date and time for receipt of bids on the Bonds and any such modification or amendment will be announced on the Amendments Page of the SpeerAuction webpage and through Thompson Municipal News. The Bonds will be in fully registered form in the denominations of $5,000 and integral multiples thereof in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, to which principal and interest payments on the Bonds will be paid. Individual purchases will be in book-entry only form. Interest on each Bond shall be paid by check or draft of the Bond Registrar to the person in whose name such bond is registered at the close of business on the fifteenth day of the month next preceding an interest payment date. The principal of the Bonds shall be payable in lawful money of the United States of America at the principal office maintained for the purpose by the Bond Registrar in Chicago, Illinois. Semiannual interest is due January 1 and July 1 of each year commencing July 1, 2010, and is payable by Amalgamated Bank of Chicago. Chicago, Illinois (the “Bond Registrar”). The Bonds are dated November 15, 2009.

MATURITIES* – JANUARY 1

$350,000 ... 2011 $420,000 ... 2015 $470,000 ... 2018 370,000 ... 2012 435,000 ... 2016 485,000 ... 2019 385,000 ... 2013 450,000 ... 2017 500,000 ... 2020 400,000 ... 2014 400,000 ... 2021

Any consecutive maturities may be aggregated into no more than five term bonds at the option of the bidder, in which case the mandatory redemption provisions shall be on the same schedule as above.

Bonds due January 1, 2011-2017, inclusive, are non-callable. Bonds due January 1, 2018-21, inclusive, are callable in whole or in part and on any date on or after January 1, 2017, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in any order of maturity as determined by the Village and within any maturity by lot. *Subject to change.

Village of North Aurora, Kane County, Illinois $4,665,000* General Obligation Refunding Library Bonds, Series 2009 Official Notice of Sale (Page 2 of 3)

All interest rates must be in multiples of one-eighth or one one-hundredth of one percent (1/8 or 1/100 of 1%), and not more than one rate for a single maturity shall be specified. The rates bid shall be in non-descending order. The differential between the highest rate bid and the lowest rate bid shall not exceed four percent (4%). All bids must be for all of the Bonds, must be for not less than $4,627,680 plus accrued interest from the dated date to the date of delivery. Award of the Bonds: The Bonds will be awarded on the basis of true interest cost, determined in the following manner. True interest cost shall be computed by determining the annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the Bonds from the payment dates thereof to the dated date and to the bid price. For the purpose of calculating true interest cost, the Bonds shall be deemed to become due in the principal amounts and at the times set forth in the table of maturities set forth above. In the event two or more qualifying bids produce the identical lowest true interest cost, the winning bid shall be the bid that was submitted first in time on the SpeerAuction webpage. The Bonds will be awarded to the bidder complying with the terms of this Official Notice of Sale whose bid produces the lowest true interest cost rate to the Village as determined by the Village’s Financial Advisor, which determination shall be conclusive and binding on all bidders; provided, that the Village reserves the right to reject all bids or any non-conforming bid and reserves the right to waive any informality in any bid. Bidders should verify the accuracy of their final bids and compare them to the winning bids reported on the SpeerAuction Observation Page immediately after the bidding.

The discount, if any, is subject to pro rata adjustment if the maturity amounts of the Bonds are changed, allowing the same dollar amount of profit per $1,000 bond as submitted on the Official Bid Form. The dollar amount of profit must be written on the Official Bid Form for any adjustment to be allowed, and is subject to verification. The true interest cost of each bid will be computed by SpeerAuction and reported on the Observation Page of the SpeerAuction webpage immediately following the date and time for receipt of bids. These true interest costs are subject to verification by the Village’s Financial Advisor, will be posted for information purposes only and will not signify an actual award of any bid or an official declaration of the winning bid. The Village or its Financial Advisor will notify the bidder to whom the Bonds will be awarded, if and when such award is made. The winning bidder will be required to make the standard filings and maintain the appropriate records routinely required pursuant to MSRB Rules G-8, G-11 and G-32. The winning bidder will be required to pay the standard MSRB charge for Bonds purchased. In addition, the winning bidder who is a member of the Securities Industry and Financial Markets Association (“SIFMA”) will be required to pay SIFMA’s standard charge per bond.

Each bid shall be accompanied by a certified or cashier’s check on, or a wire transfer from, a solvent bank or trust company or a Financial Surety Bond for TWO PERCENT OF PAR payable to the Treasurer of the Village as evidence of good faith of the bidder (the “Deposit”). The Deposit of the successful bidder will be retained by the Village pending delivery of the Bonds and all others will be promptly returned. Should the successful bidder fail to take up and pay for the Bonds when tendered in accordance with this Notice of Sale and said bid, said Deposit shall be retained as full and liquidated damages to the Village caused by failure of the bidder to carry out the offer of purchase. Such Deposit will otherwise be applied on the purchase price upon delivery of the Bonds. No interest on the Deposit will accrue to the purchaser.

If a wire transfer is used for the Deposit, it must be sent according to the following wire instructions:

Amalgamated Bank of Chicago Corporate Trust

One West Monroe, 3rd Floor Chicago, IL 60603 ABA # 071003405

Credit to: DDA # 150002305 Further Credit to: 1853281001 Speer Bidding Escrow

RE: Village of North Aurora, Kane County, Illinois bid for $4,665,000* General Obligation Refunding Library Bonds, Series 2009

The wire shall arrive in such account no later than 30 minutes prior to the date and time of the sale of the Bonds. Contemporaneously with such

wire transfer, the bidder shall send an email to [email protected] with the following information: (1) indication that a wire transfer has been made, (2) the amount of the wire transfer, (3) the issue to which it applies, and (4) the return wire instructions if such bidder is not awarded the Bonds. The Village and any bidder who chooses to wire the Deposit hereby agree irrevocably that Speer Financial, Inc. (“Speer”) shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: (i) if the bid is not accepted, Speer shall, at its expense, promptly return the Deposit amount to the unsuccessful bidder; (ii) if the bid is accepted, the Deposit shall be forwarded to the Village; (iii) Speer shall bear all costs of maintaining the escrow account and returning the funds to the bidder; (iv) Speer shall not be an insurer of the Deposit amount and shall have no liability except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and (v) income earned on the Deposit, if any, shall be retained by Speer.

If a Financial Surety Bond is used for the Deposit, it must be from an insurance company licensed to issue such a bond in the State of Illinois

and such bond must be submitted to Speer prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder using a Financial Surety Bond, then that purchaser is required to submit its Deposit to the Village in the form of a certified or cashier’s check or wire transfer as instructed by Speer, or the Village not later than 3:00 P.M. on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the Village to satisfy the Deposit requirement.

*Subject to change.

Village of North Aurora, Kane County, Illinois $4,665,000* General Obligation Refunding Library Bonds, Series 2009 Official Notice of Sale (Page 3 of 3)

The Village covenants and agrees to enter into a written agreement or contract, constituting an undertaking (the “Undertaking”) to provide ongoing disclosure about the Village for the benefit of the beneficial owners of the Bonds on or before the date of delivery of the Bonds as required under Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Undertaking shall be as described in the Official Statement, with such changes as may be agreed in writing by the Underwriter. The Village represents that it is in compliance with each and every undertaking previously entered into it pursuant to the Rule. The Underwriter’s obligation to purchase the Bonds shall be conditioned upon the Village delivering the Undertaking on or before the date of delivery of the Bonds.

By submitting a bid, any bidder makes the representation that it understands Bond Counsel represents the Village in the Bond transaction and, if such bidder has retained Bond Counsel in an unrelated matter, such bidder consents to and waives any conflict of interest arising from any adverse position to the Village in this matter; such consent and waiver shall supersede any formalities otherwise required in any separate understandings, guidelines or contractual arrangements between the bidder and Bond Counsel. Bonds will be delivered to the successful purchaser against full payment in immediately available funds as soon as they can be prepared and executed, which is expected to be on or about November 17, 2009. Should delivery be delayed beyond sixty (60) days from the date of sale for any reason beyond the control of the Village except failure of performance by the purchaser, the Village may cancel the award or the purchaser may withdraw the good faith deposit and thereafter the purchaser’s interest in and liability for the Bonds will cease. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts, and interest rates of the Bonds, and any other information required by law or deemed appropriate by the Village, shall constitute a “Final Official Statement” of the Village with respect to the Bonds, as that term is defined in the Rule. By awarding the Bonds to any underwriter or underwriting syndicate, the Village agrees that, no more than seven (7) business days after the date of such award, it shall provide, without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded, up to 100 copies of the Final Official Statement to permit each “Participating Underwriter” (as that term is defined in the Rule) to comply with the provisions of such Rule. The Village shall treat the senior managing underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid is accepted by the Village it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. By submission of its bid, the senior managing underwriter of the successful bidder agrees to supply all necessary pricing information and any Participating Underwriter identification necessary to complete the Official Statement within 24 hours after award of the Bonds. Additional copies of the Final Official Statement may be obtained by Participating Underwriters from the printer at cost. The Village will, at its expense, deliver the Bonds to the purchaser in New York, New York, through the facilities of DTC and will pay for the bond attorney’s opinion. At the time of closing, the Village will also furnish to the purchaser the following documents, each dated as of the date of delivery of the Bonds: (1) the unqualified opinion of Chapman and Cutler LLP, Chicago, Illinois, that the Bonds are lawful and enforceable obligations of the Village in accordance with their terms and are payable from ad valorem taxes levied against all taxable property of the Village, 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; (2) the opinion of said attorneys that the interest on the Bonds is exempt from federal income taxes as and to the extent set forth in the Official Statement for the Bonds; and (3) a no litigation certificate by the Village. The Village intends to designate the Bonds as “qualified tax-exempt obligations” pursuant to the small issuer exception provided by Section 265(b) (3) of the Internal Revenue Code of 1986, as amended. The Village has authorized the printing and distribution of an Official Statement containing pertinent information relative to the Village and the Bonds. Copies of such Official Statement or additional information may be obtained from William D. Hannah, Finance Director, Village of North Aurora, 25 East State Street, North Aurora, Illinois 60542, or from the Independent Public Finance Consultants to the Village, Speer Financial, Inc., Suite 4100, One North LaSalle Street, Chicago, Illinois 60602. Telephone: (312) 346-3700. /s/ DALE BERMAN /s/ WILLIAM D. HANNAH

President Finance Director VILLAGE OF NORTH AURORA VILLAGE OF NORTH AURORA Kane County, Illinois Kane County, Illinois *Subject to change.

$4,525,000 VILLAGE OF NORTH AURORA Kane County, Illinois ... AURORA.09 ADD.pdf · The $4,665,000* General Obligation Refunding Library Bonds, Series 2009 (the “Bonds”) are being

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