City Council

Monday, January 5, 2026 City of Sterling Council Meeting at 6:30 PM CITY OF STERLING COUNCIL MEETING AGENDA Council Chambers - First Floor 212 Third Avenue Zoom Link https://us02web.zoom.us/j/86436992692 1. Meeting Opening A. Call to Order B. Roll Call C. Pledge of Allegiance 2. Communication from Visitors A. Public Comment 3. Consent Agenda A. Approval of Minutes B. Approval of Bills and Payroll 4. Items Removed from the Consent Agenda 5. Recommended Personnel Action A. Introduction of Officer Korbin Geerts 6. Presentations and Awards A. Proclamation Recognizing Monique Castillo for her service and as the Coordinator of Whiteside County Toys For Tots 7. Unfinished Business 8. Business Items A. Pay Request Number 2 (Final) to Helm in the amount of $260,993.35 for Light Street Construction Page 1 of 80 B. Ordinance 2026-01-01 Authorizing the Issuance of not to exceed $41,950,000 General Obligation Bonds (alternate revenue source), Series 2026 of the City of Sterling, Whiteside County, Illinois, Providing the details of such bonds and for an alternate revenue source and the levy of direct annual taxes sufficient to pay the principal of and interest on such bonds, and related matters. 9. Staff Reports 10. Council Reports 11. Adjourn The City of Sterling in compliance with the Americans with Disabilities Act, requests that persons with disabilities who require certain accommodations to allow them to observe and/or participate in this meeting or have questions about the accessibility of this meeting or facilities, contact the ADA Coordinator at (815) 632-6630 to allow the City of Sterling to make reasonable accommodations for these persons. Page 2 of 80 City of Sterling Council Meeting Minutes December 15, 2025 Meeting Opening Mayor Diana Merdian called the Sterling City Council to order at 6:30 PM on Monday, December 15, 2025. Present: Alderman Retha Elston, Alderman Joe Strabala-Bright, Alderman Josh Johnson, Alderman Aida Baker, Alderman Jim Wise, Alderman Allen Przysucha, and Mayor Diana Merdian. Absent: None City Manager Scott Shumard, City Attorney Tim Zollinger, Police Chief E. Pat Bartel, Fire Chief David Northcutt, Superintendent of Public Works Brad Schrader, Superintendent of Building and Zoning Amanda Schmidt, Finance Director Cindy Von Holten, Superintendent of Wastewater Cory Bradshaw, and City Clerk Teri Sathoff were also present. The Pledge of Allegiance was recited. Communication from Visitors Scott Toomsen, 201 3rd Avenue, Sterling, addressed the Council with concerns related to trash picked up by Republic Services. Mr. Toomsen stated he has had issues with trash getting picked up for the last five years. He pays his bill in advance when he is on vacation. Toomsen is the only resident in this alley and believes this may be the issue with pick-up. He has contacted Republic Services several times, and he is still having issues getting his trash picked up. Clerk Sathoff took Mr. Toomsen's phone number to have someone contact him. He does put his trash out on an average of once a month. Daryl Dieterle, 1718 Freeport Road, Sterling, addressed the Council with concerns related to the driveway he has installed on his new home. Mr. Dieterle has requested to have a ten-foot apron on his driveway. He would also like to use an existing driveway for a circular driveway. He has requested a revision for this. Attorney Zollinger stated that he did speak to Mr. Dieterle on Thursday, and there will be a meeting scheduled with him to discuss the issue. Currently, there is nothing in the code that will allow for what he would like to do. Consent Agenda A. Approval of Minutes B. Approval of Bills and Payroll Alderman Elston made a motion to approve items A and B on the Consent agenda, seconded by Page 3 of 80 City of Sterling Council Meeting Minutes December 15, 2025 Page 2 Alderman Strabala-Bright. Voting: Ayes – Aldermen Elston, Strabala-Bright, Johnson, Baker, Przysucha, and Wise. Nays – None. Items Removed from the Consent Agenda None Recommended Personnel Action Chief Northcutt introduced Firefighter Spencer Scott to the Council. Scott is originally from Polo, IL. Scott will be attending the Fire Academy in Rockford in March 2026. Firefighter Scott was given the oath of office by City Clerk Sathoff. Chief Nortcutt recognized Firefighter Gerry Williamson. Williamson is retiring after 26 years as a paid-on-call firefighter. Before that, Williamson dedicated 30 years of full-time service to the Sterling Fire Department. Northcutt recalled commanding a scene and having Gerry and his two sons, Ryan and Jason, on the same hose line. Williamson expressed gratitude to be able to serve the City of Sterling and its citizens. Gerry commended the current fire department and their professionalism and dedication to training. Presentations and Awards Chief Northcutt introduced firefighter Kody Simmons. Simmons is being recognized for his life- saving efforts while off duty. While shopping at Walmart, Simmons provided CPR and used an AED on a young female patient. The patient was transferred to CGH and then flown to a children's hospital. The family of the patient was present at the Council meeting and thanked him for saving their daughter's life. Firefighter Simmons was given the life-saving award for his actions. Unfinished Business None Business Items Alderman Strabala-Bright made a motion to approve Tax Levy Ordinance No. 2025-12-43 in the amount of $6,354,947; Seconded by Wise. City Manager Shumard stated there are no changes from the estimate. This is an increase of $213,993 or 3.48% in projected collections. The actual tax rate is projected to decrease from 2.9141 to 2.8761. The growth in tax collections despite the reduction in tax rate results from an overall larger assessed valuation of properties within the City. The staff considers several factors when recommending a tax levy, including property tax rates for businesses and citizens, adequate funding of operations, and increasing funding ratios to the pension funds to increase their stability and meet the actuarial requirements. Page 4 of 80 City of Sterling Council Meeting Minutes December 15, 2025 Page 3 Voting: Ayes - Alderman Elston, Strabala-Bright, Johnson, Baker, Przysucha, and Wise. Nays – None. Alderman Przysucha made a motion to approve Pay Request #8 to Sjostrom & Sons in the amount of $206,684.38 for the Riverfront Park Improvements — Phase I; Seconded by Alderman Elston. Voting: Ayes Aldermen Elston, Strabala-Bright, Johnson, Baker, Przysucha, and Wise. Nays – None. Alderman Elston made a motion to approve Pay Request #5 to Martin & Company Excavating of Oregon, Illinois in the amount of $126,196.08 for Street Reconstruction; Seconded by Strabala-Bright. Voting: Ayes – Alderman Elston, Strabala-Bright, Johnson, Baker, Przysucha, and Wise. Nays – None. Alderman Baker made a motion to approve Pay Request #3 to Martin & Company Excavating of Oregon, Illinois in the amount of $42,088.20 for Street Reconstruction; Seconded by Elson. Voting: Ayes – Alderman Elston, Strabala-Bright, Johnson, Baker, Przysucha, and Wise. Nays – None. Alderman Wise made a motion to approve Ordinance No 2025-12-44 Amending the Rock River Redevelopment and Project Area (TIF) to Extend the Expiration Date; Seconded by Alderman Strabala-Bright. Voting: Ayes – Alderman Elston, Strabala-Bright, Johnson, Baker, Przysucha, and Wise. Nays – None. Staff Reports Superintendent of Public Works Brad Schrader reported his crews have been filling potholes, conducting JULIE locates, training on JULIE, and plowing snow. Superintendent of Waste Water Cory Bradshaw reported they have been maintaining the heaters in the lift stations, working on maintenance inside, and cleaning up two downed trees. Superintendent of Building and Zoning Amanda Schmidt reported two open houses were held for the Rental Inspection Program on December 3rd. They were successful and very well attended. There were 123 registrations. Those registrations accounted for 1,052 rental units and 42 exemptions. Some of the exemptions are vacant and in the process of being remodeled. Yard waste was missed the day after Thanksgiving due to the snowstorm. They were going to pick it up the following Friday, but most everything was frozen to the ground. They will be making the rounds to pick up what has been missed. Kori Elston is keeping a spreadsheet of all that has been missed and sending it to Republic Services. Finance Director Cindy VonHolten reported that budget worksheets have been distributed to the departments. Budget study sessions will begin in February. HR Manager Christina Rodriguez sent an email out on the employee portal for the paperless pay. Page 5 of 80 City of Sterling Council Meeting Minutes December 15, 2025 Page 4 Chief Pat Bartel reported that Shop with a Cop was held on December 14th at Walmart in Sterling. Sixteen kids were able to shop for themselves and their family members. Three new police officers started on the 15th of December, and they will attend the academy on January 4th. Two police officers have just completed the FTO program and are now on their own. One police officer will graduate from the academy on Thursday, the 18th. This will make the Police Department fully staffed. Chief Bartel advised that five officers received commendations for their role in a recent fire. Chief Bartel thanked Chief Northcutt for nominating the officers for their contributions to the fire scene. Chief David Northcutt reported that the newest paid-on-call firefighter is number one on the list. This will make the Fire Department fully staffed. The department received five more quotes for the exhaust mitigation grant. An $800 grant was received from Illinois American Water for gate valves. The transition to Lexipol for the Standard Operating Procedures started today. The City and the Fire Department entered into an MOU regarding scheduling. Starting the first of the year, firefighters will work 48 hours on and 96 hours off. Extensive research has been done showing that this is better for the firefighter's health and well-being. This will be done on a trial basis. City Clerk Teri Sathoff thanked the Council and the City staff for their patience with the change in software for the agendas. It is a learning process, and there are some bugs that will need to be worked out. The winners of the Sleigh What Christmas decorating contest were announced today. The competition was extremely tough, and the contestants and the judges did a great job. She thanked the City staff for volunteering for Sights and Sounds and thanked the Chamber and Sterling Main Street for working hard to make the event a success. Sathoff reported that Assistant City Clerk Monique Castillo took on the role of coordinator for Toys for Tots in Whiteside County. Sathoff commended Castillo for taking this challenge on and doing a wonderful job. Sathoff stated she is very proud of Monique and the staff who assisted her. City Attorney Zollinger reported that he has been working with the Building Department on a property that is in poor shape. This property is a good example of why the rental inspection program was needed. Zollinger stated this property involves the Police and Fire Departments as well as the Building Department, and it was hard on the front-line workers who responded to it. City Manager Shumard stated that work continues on the Safe Streets for All grant and the language in it. It should be resolved soon. The phase II contract should be completed for the quiet zone by the end of the year. Council Reports Alderman Baker thanked Christina Rodriguez for her efforts in getting the paperless paychecks completed. Baker wished everyone a safe and happy holiday season. Page 6 of 80 City of Sterling Council Meeting Minutes December 15, 2025 Page 5 Alderman Johnson — No report. Alderman Strabala-Bright stated Sights and Sounds was fantastic. He thanked the City staff and everyone who has worked hard to make the holidays special for our community. He wished everyone a Merry Christmas and, Happy New Year. Alderman Elston thanked everyone for their work on Sights and Sounds. She thanked Public Works for working hard to get the City ready for the holidays. Elston congratulated Alderman Wise on his recent marriage. Elston asked about the complaints she had received regarding the odors from the farmer north of Menards. City Manager Shumard advised that the complaints should be forwarded to the Illinois EPA. Elston reminded that the helping hands program for the utility billing is still available. Elston wished everyone a Happy Holiday. Alderman Przysucha congratulated the Superintendent of Building and Zoning on the great turnout for the rental inspection open house. Przysucha stated Sights and Sounds was fun, and he enjoyed it. He congratulated Monique Castillo on her efforts with Toys for Tots. Przysucha asked about the lack of yard waste pick-up on Friday. He asked if there were options or recourse that the City could pursue. Schmidt advised that we can implement fines for repeated missed pick-ups. The yard waste pick-up was a one-off due to the weather. Alderman Wise congratulated the Superintendent of Building and Zoning on the rental inspection open house. Mayor Merdian congratulated Alderman Wise on his recent wedding. She stated she has had a lot of communities reach out about the rental inspection program. It has taken a lot of hard work and dedication from the Building Department staff. She thanked Main Street and the Chamber for Sights and Sounds. The parking subcommittee meeting was held, and the next one will be after the first of the year. Wednesday is the City Christmas lunch, everyone on council and the staff is invited. The Mayor's Innovation Project conference will be at the end of January in Washington, DC. She wished everyone a Merry Christmas and a Happy New Year. Adjourn The meeting adjourned at 7:42 p.m. Teri J. Sathoff City Clerk Page 7 of 80 Page 8 of 80 Page 9 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . Department: FINANCE - FINANCE Bank Account: SAUK VALEY-CK - SAUK VALLEY Check Date: 01/05/2026 NOW A/P-DEPOSITS Fund: 1100 - GENERAL FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 6.31 41,639.49 Vendor Invoice Number Description Amount . AAIM EMPLOYERS ASSOCIATION 00086351 2026 Membership (1,000.00) AIRGAS USA,LLC 5520588151 HELIUM CYLINDER RENTAL (74.25) ALTORFER INC. 24C208985 6 PAIR HI VIS GLOVES (23.70) AMAZON CAPITAL SERVICES, INC. 13WL-F9N7-FYWW Station Office Supplies & Dishwasher Parts (46.51) AMAZON CAPITAL SERVICES, INC. 14QN-VWG3-JQMN HARNESS LANYARD/2 55GL GARBAGE BGS/10PK STYLUS (183.81) AMAZON CAPITAL SERVICES, INC. 16T3-1VRM-FJXC WIRELESS OPTICAL MOUSE - INV 16T3-1VRN-FJXC (9.88) AMAZON CAPITAL SERVICES, INC. 1797-61KP-QGMC ROCKY BOOTS - INV 1797-61KP-QGMC (319.82) AMAZON CAPITAL SERVICES, INC. 1H6X-H7NK-JLXD Command Board Velcro (12.99) AMAZON CAPITAL SERVICES, INC. 1KH6-KXQT-CPPT 2026 Wall Calendar (24.44) AMAZON CAPITAL SERVICES, INC. 1KKY-94V4-GRGY BULLETIN BOARD BORDER - INV 1KKY-94V4-GRGY (13.49) AMAZON CAPITAL SERVICES, INC. 1N7C-1QVQ-F6X1 CHRISTMAS GIFT CARD HOLDERS - INV 1N7C-1QVQ-F6X1 (18.39) AMAZON CAPITAL SERVICES, INC. 1PYJ-43GG-9YL4 Legal Boxes (47.87) AMAZON CAPITAL SERVICES, INC. 1T4C-YJY9-DTH1 DUTY BELT EQUIPMENT - INV 1T4C-YJY9-DTH1 (99.01) AMAZON CAPITAL SERVICES, INC. 1VRN-QH4W-6JVP CE- 2026 PLANNER (17.99) AMAZON CAPITAL SERVICES, INC. 1WCH-C3L4-CPXH 4 - YAKTRAX, INVOICE 1WCH-C3L4-CPXH (92.46) AMAZON CAPITAL SERVICES, INC. 1YMG-76GT-GNLY 5 -ROTHCO PUBLIC SAFETY HATS, INV 1YMG-76GT-GNLY (54.95) BONNELL INDUSTRIES INC. 0224242-IN UNIT 63 PIVOT/ORANGE DEFLECT DECAL (198.04) BONNELL INDUSTRIES INC. 0225068-IN UNIT 15 - STROBE LIGHT REPAIR (2,822.86) CDW GOVERNMENT INC AH2KR8H LVO LAPTOP - BATF FUNDS (755.25) CERTASITE, LLC 12788651 ANNUAL FIRE MONITORING SYSTEM (720.00) CHEMTEK 436708 55 GAL DRUM ASPHALT REMOVER (1,987.38) CITY OF STERLING 121225GARN-ADJ GARNISHMENT FEE ADJUSTMENT 6.31 CITY OF STERLING 2026-00000252 GARN FEE - GARNISHMENT FEE (6.31) CITY OF STERLING 278143-001NOV25 1510 E LYNN BLVD 8/14/25-9/11/25 (35.50) CITY OF STERLING 281541-001NOV25 1211 W LE FEVRE RD 10/18/25-11/17/25 (155.50) CITY OF STERLING 281709-001NOV25 1605 1/2 AVENUE L 10/18/25-11/17/25 (209.50) CITY OF STERLING 281710-001NOV25 1605 AVENUE L 10/18/25-11/17/25 (41.50) COMED 6405582000NOV25 19120 COVELL ROAD 11/5/25-12/5/25 (26.99) DINGES FIRE COMPANY 80221 2 Masks- JK SS (70.00) DIRKS LAWN CARE SERVICES 1511 MOWING/LEAF CLEAN-UP SERVICE (5,055.60) DIXON FORD VW 5019684 ST62 EXHAUST SENSOR (106.40) User: Nicole Morgan Pages: 1 of 16 12/31/2025 10:40:14 AM Page 10 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . 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AAIM EMPLOYERS ASSOCIATION 00086351 2026 Membership 1,000.00 AIRGAS USA,LLC 5520588151 HELIUM CYLINDER RENTAL 74.25 ALTORFER INC. 24C208985 6 PAIR HI VIS GLOVES 23.70 AMAZON CAPITAL SERVICES, INC. 13WL-F9N7-FYWW Station Office Supplies & Dishwasher Parts 46.51 AMAZON CAPITAL SERVICES, INC. 14QN-VWG3-JQMN HARNESS LANYARD/2 55GL GARBAGE BGS/10PK STYLUS 183.81 AMAZON CAPITAL SERVICES, INC. 16T3-1VRM-FJXC WIRELESS OPTICAL MOUSE - INV 16T3-1VRN-FJXC 9.88 AMAZON CAPITAL SERVICES, INC. 1797-61KP-QGMC ROCKY BOOTS - INV 1797-61KP-QGMC 319.82 AMAZON CAPITAL SERVICES, INC. 1H6X-H7NK-JLXD Command Board Velcro 12.99 AMAZON CAPITAL SERVICES, INC. 1KH6-KXQT-CPPT 2026 Wall Calendar 24.44 AMAZON CAPITAL SERVICES, INC. 1KKY-94V4-GRGY BULLETIN BOARD BORDER - INV 1KKY-94V4-GRGY 13.49 AMAZON CAPITAL SERVICES, INC. 1N7C-1QVQ-F6X1 CHRISTMAS GIFT CARD HOLDERS - INV 1N7C-1QVQ-F6X1 18.39 AMAZON CAPITAL SERVICES, INC. 1PYJ-43GG-9YL4 Legal Boxes 47.87 AMAZON CAPITAL SERVICES, INC. 1T4C-YJY9-DTH1 DUTY BELT EQUIPMENT - INV 1T4C-YJY9-DTH1 99.01 AMAZON CAPITAL SERVICES, INC. 1VRN-QH4W-6JVP CE- 2026 PLANNER 17.99 AMAZON CAPITAL SERVICES, INC. 1WCH-C3L4-CPXH 4 - YAKTRAX, INVOICE 1WCH-C3L4-CPXH 92.46 AMAZON CAPITAL SERVICES, INC. 1YMG-76GT-GNLY 5 -ROTHCO PUBLIC SAFETY HATS, INV 1YMG-76GT-GNLY 54.95 BONNELL INDUSTRIES INC. 0224242-IN UNIT 63 PIVOT/ORANGE DEFLECT DECAL 198.04 BONNELL INDUSTRIES INC. 0225068-IN UNIT 15 - STROBE LIGHT REPAIR 2,822.86 CDW GOVERNMENT INC AH2KR8H LVO LAPTOP - BATF FUNDS 755.25 CERTASITE, LLC 12788651 ANNUAL FIRE MONITORING SYSTEM 720.00 CHEMTEK 436708 55 GAL DRUM ASPHALT REMOVER 1,987.38 CITY OF STERLING 121225GARN-ADJ GARNISHMENT FEE ADJUSTMENT (6.31) CITY OF STERLING 2026-00000252 GARN FEE - GARNISHMENT FEE 6.31 CITY OF STERLING 278143-001NOV25 1510 E LYNN BLVD 8/14/25-9/11/25 35.50 CITY OF STERLING 281541-001NOV25 1211 W LE FEVRE RD 10/18/25-11/17/25 155.50 CITY OF STERLING 281709-001NOV25 1605 1/2 AVENUE L 10/18/25-11/17/25 209.50 CITY OF STERLING 281710-001NOV25 1605 AVENUE L 10/18/25-11/17/25 41.50 COMED 6405582000NOV25 19120 COVELL ROAD 11/5/25-12/5/25 26.99 DINGES FIRE COMPANY 80221 2 Masks- JK SS 70.00 DIRKS LAWN CARE SERVICES 1511 MOWING/LEAF CLEAN-UP SERVICE 5,055.60 DIXON FORD VW 5019684 ST62 EXHAUST SENSOR 106.40 DIXONIL WELLNOW URGENT CARE 6304 MEDICAL SCREENING - LAUREN RICE 363.00 EAGLE ENGRAVING, INC. 2025-9762 Accountability Tags 32.35 GRUMMERTS HARDWARE 366 A559075 4 MASKING TAPE 35.96 GRUMMERTS HARDWARE 366 A559077 DUCT TAPE 8.09 GRUMMERTS HARDWARE 366 User: Nicole Morgan Pages: 4 of 16 12/31/2025 10:40:14 AM Page 13 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . B96292 MISC. NUTS/BOLTS 22.39 HELM ELECTRIC FACILITY SOLUTIONS 59263 201 WALLACE/AVE B 25-2569 511.00 INC. HELM ELECTRIC FACILITY SOLUTIONS 59403 VARIOUS 25-2572 511.00 INC. HELM ELECTRIC FACILITY SOLUTIONS 59423 1ST AVE BRIDGE 25-2570 617.50 INC. HELM ELECTRIC FACILITY SOLUTIONS 59470 LINCOLNWAY/WOODLAWN 25-2575 349.00 INC. HELM ELECTRIC FACILITY SOLUTIONS 59472 DOWNTOWN CBD 25-2576 648.00 INC. ILLINOIS FIRE CHIEFS ASSOCIATION 9874 Membership Renewal through 12/2026 325.00 ILLINOIS PUBLIC WORKS MUTUAL AID 5245 ANNUAL MEMBERSHIP 100.00 NETWORK, INC. KALEEL'S CLOTHING & PRINTING 120425-ADAMS CLOTHING ALLOWANCE - M ADAMS 119.00 KALEEL'S CLOTHING & PRINTING 120525-ROMERO CLOTHING ALLOWANCE - ROMERO 82.00 KALEEL'S CLOTHING & PRINTING 120525-WOLBER CLOTHING ALLOWANCE - WOLBER 82.00 KALEEL'S CLOTHING & PRINTING 120625-SHANK CLOTHING ALLOWANCE - SHANK 250.00 KALEEL'S CLOTHING & PRINTING 121225-BURGER CLOTHING ALLOWANCE - BURGER 167.00 KALEEL'S CLOTHING & PRINTING 22826 4 EMBROID 2 HATS - ROMERO 68.00 KALEEL'S CLOTHING & PRINTING 22827 2 EMBROID SHIRT - LARSON 20.00 LAUTERBACH & AMEN, LLP 112972 POLICE PENSION ACTUARIAL REPORT 4/30/25 1,535.00 LEAF 19449026 BP-70C65 LEASE AGREEMENT 489.82 LEAF 19449027 BP70M31 LEASE AGREEMENT 123.50 LEAF 19449028 BP-70M55 LEASE AGREEMENT 73.95 LEAF 19449029 BP-70C55 LEASE AGREEMENT 333.02 LEAF 19449030 BP-50C26 LEASE AGREEMENT 167.41 MEAD & HUNT INC. 399237 CE- PROFESSIONAL SERVICES NOV 1- NOV 30 2025 6,448.35 MENARDS 24415 2 TIEDOWNS/3-40PC LAG SCREW 65.05 MENARDS 24473 2 MICROWAVES/2 BROOMS 127.76 MENARDS 24701 JANITORIAL SUPPLIES 135.37 MENARDS 24711 JANITORIAL SUPPLIES 62.47 MENARDS 24723 CE- DIGITAL COMFORT METER 12.99 MENARDS 24797 CE/COLISEUM- INFRAED THERMOMETER, CLEANING 34.99 VINEGAR MENARDS 24798 PANIC BAR HANDLE/MISC SUPPLIES 225.63 MENARDS 24884 MISC. NUTS/BOLTS/SPADE BIT SET 30.31 MENARDS 24888 FIP COUPLING 5.99 MENARDS 24917 DRONE SUPPLIES - 12/17/25 228.27 User: Nicole Morgan Pages: 5 of 16 12/31/2025 10:40:14 AM Page 14 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . MENARDS 24965 2 PLASTIC WELD 7.98 MENARDS 25004 DRILL BITS/ANCHORS 38.46 MENARDS 25081 12-4X8 OSB SHEETS - NATIONAL 245.76 MGT IMPACT SOLUTIONS, MGT MGT37547 Forest Reeder Hours - Week Ending 11/22/25 639.00 CONSULTING MILES TRUCK AND TRAILER WORKS LLC 2122 UNIT 11 - FOOT BRAKE VALVE 410.97 MODERN SHOE SHOP, CORP LS1262025-SHANK BOOTS - SHANK 125.99 OASIS STERLING, INC., OASIS CAR WASH 100125-113025 CARWASHES - OCTOBER & NOVEMBER 295.20 PHELPS UNIFORM SPECIALISTS, INC. 2182552 Delivery 12/9/25 161.50 PHELPS UNIFORM SPECIALISTS, INC. 2194623 Delivery 12-22-25 83.05 QUILL LLC 46848962 LASER BUSINESS CARDS, PILOT PENS 44.63 QUILL LLC 46872477 COPY PAPER, TIME CARDS 183.20 SADLER POWER TRAIN TRUCK PARTS & 0210265192 12 BRAKE CLEANER/HEATED MIRROR 259.26 SERVICE SADLER POWER TRAIN TRUCK PARTS & 0210266143 UNIT 70 - 2 CHAMBER WELDS 231.18 SERVICE SBM INC INV448925 INV448925; MOISTENER 3.95 SBM INC INV488445 INV448445; MARKERS, STAMP, LABELS, FOLDERS 51.56 SLIM-N-HANKS AUTOBODY SHOP, INC 9115 Vehicle Repair Claim L005032380 DOL 11-17-25 4,654.11 SNAP-ON CREDIT LLC 121025 SOFTWARE SUBSCRIPTION 48.15 THE FITTING ROOM 0937 PATCH SEWING - INVOICE 0937 12.00 TJ CONEVERA'S, INC. TJ-INVOICE-25-36 RANGE AMMO 2,812.00 UNIFORMS DIRECT LLC 01007235 Hammer uniform allowance 422.00 UNIFORMS DIRECT LLC 01007240 Pfister uniform allowance 55.00 UNIFORMS DIRECT LLC 01007259 Kalina uniform allowance 185.00 UNIFORMS DIRECT LLC 01007300 Kimpel uniform allowance 314.00 UNIFORMS DIRECT LLC 01007301 C. Liedberg Uniform Allowance 197.00 UNIFORMS DIRECT LLC 01007330 Helfrich Uniform Allowance 139.00 UNIFORMS DIRECT LLC 01007400 M Liedberg Uniform Allowance 419.00 WHEELHOUSE INC. 13280 UNIT 66 4 TIRES/FEES 916.48 WHEELHOUSE INC. 13322 TIRE REPAIR 42.50 Account: ACCOUNTS PAYABLE Totals $41,639.49 $6.31 Fund: GENERAL FUND Totals $41,645.80 $41,645.80 Fund: 1800 - CAPITAL FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 70,502.61 Vendor Invoice Number Description Amount User: Nicole Morgan Pages: 6 of 16 12/31/2025 10:40:14 AM Page 15 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . . NICOR GAS 5299200NOV25 1 1ST AVENUE - NATIONAL BLDG - 11/03/25-12/03/25 (1,005.67) STRAND ASSOCIATES, INC. 0233208 Griswold Ave Drainage Improvements November 2025 (10,033.54) STRAND ASSOCIATES, INC. 0233209 Sterling Riverfront Park Engineering November 2025 (11,369.85) WILLETT HOFMANN & ASSOCIATES, INC. 40177 2008Z25 - Forcemain JULIE Locate 11-29-25 (751.90) WILLETT HOFMANN & ASSOCIATES, INC. 40179 1004Z16 - W LEFEVRE RD RECONSTRUCTION 6-1 to 11-29- (1,172.95) 25 WILLETT HOFMANN & ASSOCIATES, INC. 40182 1254Z17 - 2nd Street ITEP Grant Application 11-2 to 11-29-25 (43,619.50) WILLETT HOFMANN & ASSOCIATES, INC. 40183 1706Z24 - Sterling 2024 Street Program 11-2 to 11-29-25 (2,549.20) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $70,502.61 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 70,502.61 0.00 Vendor Invoice Number Description Amount . NICOR GAS 5299200NOV25 1 1ST AVENUE - NATIONAL BLDG - 11/03/25-12/03/25 1,005.67 STRAND ASSOCIATES, INC. 0233208 Griswold Ave Drainage Improvements November 2025 10,033.54 STRAND ASSOCIATES, INC. 0233209 Sterling Riverfront Park Engineering November 2025 11,369.85 WILLETT HOFMANN & ASSOCIATES, INC. 40177 2008Z25 - Forcemain JULIE Locate 11-29-25 751.90 WILLETT HOFMANN & ASSOCIATES, INC. 40179 1004Z16 - W LEFEVRE RD RECONSTRUCTION 6-1 to 11-29- 1,172.95 25 WILLETT HOFMANN & ASSOCIATES, INC. 40182 1254Z17 - 2nd Street ITEP Grant Application 11-2 to 11-29-25 43,619.50 WILLETT HOFMANN & ASSOCIATES, INC. 40183 1706Z24 - Sterling 2024 Street Program 11-2 to 11-29-25 2,549.20 Account: ACCOUNTS PAYABLE Totals $70,502.61 $0.00 Fund: CAPITAL FUND Totals $70,502.61 $70,502.61 Fund: 2100 - MOTOR FUEL TAX Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 43,957.48 Vendor Invoice Number Description Amount . COMPASS MINERALS AMERICA, 1576397 48.51TN SALT - 1576397 (4,347.95) INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1577470 47.82TN SALT 1577470 (4,286.11) INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1578684 25.47TN SALT - 1578684 (2,282.88) INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1579851 76.45TN SALT (6,852.21) INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1580375 76.93TN SALT (6,895.24) User: Nicole Morgan Pages: 7 of 16 12/31/2025 10:40:14 AM Page 16 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1581497 122.99TN SALT 1581497 (11,023.59) INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1583357 50.82TN SALT (4,555.00) INC./NORTH AMERICAN SALT SICALCO, LTD. 77370 4,370 GALS 32% CALCIUM (3,714.50) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $43,957.48 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 43,957.48 0.00 Vendor Invoice Number Description Amount . COMPASS MINERALS AMERICA, 1576397 48.51TN SALT - 1576397 4,347.95 INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1577470 47.82TN SALT 1577470 4,286.11 INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1578684 25.47TN SALT - 1578684 2,282.88 INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1579851 76.45TN SALT 6,852.21 INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1580375 76.93TN SALT 6,895.24 INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1581497 122.99TN SALT 1581497 11,023.59 INC./NORTH AMERICAN SALT COMPASS MINERALS AMERICA, 1583357 50.82TN SALT 4,555.00 INC./NORTH AMERICAN SALT SICALCO, LTD. 77370 4,370 GALS 32% CALCIUM 3,714.50 Account: ACCOUNTS PAYABLE Totals $43,957.48 $0.00 Fund: MOTOR FUEL TAX Totals $43,957.48 $43,957.48 Fund: 2241 - LIBRARY-GENERAL ACCOUNT Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 24,951.87 Vendor Invoice Number Description Amount . AMAZON CAPITAL SERVICES, INC. 1JVM-Y17T-KX19 Books/Thankyounotes 1JVMY17TKX19 (181.58) CENGAGE LEARNING INC./GALE 999101776014 LT Books/101776014 (54.40) MIDWEST TAPE 508143807 DVD/CDBOT508143807 (66.98) MIDWEST TAPE 508172837 CDBOT/508172837 (49.99) NIEMANN FOODS INC. 2540218 Storytime Supplies (8.88) QUILL LLC 47081056 47081056/coffeemate,paper towels, softsoap (328.09) User: Nicole Morgan Pages: 8 of 16 12/31/2025 10:40:14 AM Page 17 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . SBM INC INV646698 Final Copy Count on Old Machine (162.77) SBM INC INV646705 New Downstairs copy machine (9,488.00) SBM INC INV646944 Copy Count Downstairs (142.00) SCHUMACHER ELEVATOR CO 90667740 December 90667710 (195.70) WILCO RENTAL INC 167942 167942/Clean carburetor (45.99) WILCO RENTAL INC 167982 167982/Carburator Snowblower (89.24) WILLETT HOFMANN & ASSOCIATES, INC. 40200 Designs for Carnegie Bathroom (14,138.25) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $24,951.87 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 24,951.87 0.00 Vendor Invoice Number Description Amount . AMAZON CAPITAL SERVICES, INC. 1JVM-Y17T-KX19 Books/Thankyounotes 1JVMY17TKX19 181.58 CENGAGE LEARNING INC./GALE 999101776014 LT Books/101776014 54.40 MIDWEST TAPE 508143807 DVD/CDBOT508143807 66.98 MIDWEST TAPE 508172837 CDBOT/508172837 49.99 NIEMANN FOODS INC. 2540218 Storytime Supplies 8.88 QUILL LLC 47081056 47081056/coffeemate,paper towels, softsoap 328.09 SBM INC INV646698 Final Copy Count on Old Machine 162.77 SBM INC INV646705 New Downstairs copy machine 9,488.00 SBM INC INV646944 Copy Count Downstairs 142.00 SCHUMACHER ELEVATOR CO 90667740 December 90667710 195.70 WILCO RENTAL INC 167942 167942/Clean carburetor 45.99 WILCO RENTAL INC 167982 167982/Carburator Snowblower 89.24 WILLETT HOFMANN & ASSOCIATES, INC. 40200 Designs for Carnegie Bathroom 14,138.25 Account: ACCOUNTS PAYABLE Totals $24,951.87 $0.00 Fund: LIBRARY-GENERAL ACCOUNT Totals $24,951.87 $24,951.87 Fund: 2243 - LIBRARY-PER CAPITA GRANT ACCOUNT Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 48.87 Vendor Invoice Number Description Amount . INGRAM LIBRARY SERVICES 92937704 Books/92937704 (48.87) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $48.87 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 48.87 0.00 Vendor Invoice Number Description Amount User: Nicole Morgan Pages: 9 of 16 12/31/2025 10:40:14 AM Page 18 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . . INGRAM LIBRARY SERVICES 92937704 Books/92937704 48.87 Account: ACCOUNTS PAYABLE Totals $48.87 $0.00 Fund: LIBRARY-PER CAPITA GRANT ACCOUNT Totals $48.87 $48.87 Fund: 2250 - LIBRARY - RRLC FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 943.40 Vendor Invoice Number Description Amount . WIPFLI, LLP 3125095 December/3125095 (943.40) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $943.40 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 943.40 0.00 Vendor Invoice Number Description Amount . WIPFLI, LLP 3125095 December/3125095 943.40 Account: ACCOUNTS PAYABLE Totals $943.40 $0.00 Fund: LIBRARY - RRLC FUND Totals $943.40 $943.40 Fund: 2300 - BAND COMMISSION Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 142.71 Vendor Invoice Number Description Amount . AMAZON CAPITAL SERVICES, INC. 17VN-LYJR-CGDD #28 HAMMERMILL PROGRAM PAPER, A2 ENV & CARD STK (94.71) SBM INC INV646315 BAND PHOTOCOPIER 12/7/25-1/6/25 (48.00) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $142.71 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 142.71 0.00 Vendor Invoice Number Description Amount . AMAZON CAPITAL SERVICES, INC. 17VN-LYJR-CGDD #28 HAMMERMILL PROGRAM PAPER, A2 ENV & CARD STK 94.71 SBM INC INV646315 BAND PHOTOCOPIER 12/7/25-1/6/25 48.00 Account: ACCOUNTS PAYABLE Totals $142.71 $0.00 Fund: BAND COMMISSION Totals $142.71 $142.71 Fund: 2451 - SIDC-INCUBATOR User: Nicole Morgan Pages: 10 of 16 12/31/2025 10:40:14 AM Page 19 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 520.00 Vendor Invoice Number Description Amount . BUNTJER BROS. INC. 12299 NOVEMBER SNOWPLOWING/SALT (520.00) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $520.00 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 520.00 0.00 Vendor Invoice Number Description Amount . BUNTJER BROS. INC. 12299 NOVEMBER SNOWPLOWING/SALT 520.00 Account: ACCOUNTS PAYABLE Totals $520.00 $0.00 Fund: SIDC-INCUBATOR Totals $520.00 $520.00 Fund: 2500 - COLISEUM BOARD Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 2,767.17 Vendor Invoice Number Description Amount . AMAZON CAPITAL SERVICES, INC. 1LDL-9GY1-6FKY COLISEUM- TOBEBRIGHT REPLACMENT LIGHTS (113.88) CITY OF STERLING 279811-001NOV25 212 3RD AVENUE 11/3/25-12/2/25 (7.75) FRANK'S REPAIR, INC. 0021775 COLISEUM-824 OXE 24' SNOWMASTER, TRADE IN, (849.00) S#417969958 MENARDS 24797 CE/COLISEUM- INFRAED THERMOMETER, CLEANING (11.94) VINEGAR MO-ST PLUMBING & MECHANICAL LLC 37306 COLISEUM- REPAIR STOLL IN NE CORNER RESTROOM (225.00) 2ND FLOOR PHELPS UNIFORM SPECIALISTS, INC. 2180206 COLISEUM- MATS (129.80) PHELPS UNIFORM SPECIALISTS, INC. 2191962 COLISEUM- MATS (129.80) SONNY'S PROFESSIONAL WINDOW 352 COLISEUM- EXTERIOR WINDOWS CLEANED (1,300.00) CLEANING CORP Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $2,767.17 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 2,767.17 0.00 Vendor Invoice Number Description Amount . AMAZON CAPITAL SERVICES, INC. 1LDL-9GY1-6FKY COLISEUM- TOBEBRIGHT REPLACMENT LIGHTS 113.88 CITY OF STERLING 279811-001NOV25 212 3RD AVENUE 11/3/25-12/2/25 7.75 FRANK'S REPAIR, INC. 0021775 COLISEUM-824 OXE 24' SNOWMASTER, TRADE IN, 849.00 S#417969958 User: Nicole Morgan Pages: 11 of 16 12/31/2025 10:40:14 AM Page 20 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . MENARDS 24797 CE/COLISEUM- INFRAED THERMOMETER, CLEANING 11.94 VINEGAR MO-ST PLUMBING & MECHANICAL LLC 37306 COLISEUM- REPAIR STOLL IN NE CORNER RESTROOM 225.00 2ND FLOOR PHELPS UNIFORM SPECIALISTS, INC. 2180206 COLISEUM- MATS 129.80 PHELPS UNIFORM SPECIALISTS, INC. 2191962 COLISEUM- MATS 129.80 SONNY'S PROFESSIONAL WINDOW 352 COLISEUM- EXTERIOR WINDOWS CLEANED 1,300.00 CLEANING CORP Account: ACCOUNTS PAYABLE Totals $2,767.17 $0.00 Fund: COLISEUM BOARD Totals $2,767.17 $2,767.17 Fund: 2800 - CIVIL DEFENSE FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 442.17 Vendor Invoice Number Description Amount . VERIZON WIRELESS 6130624029 110 W 5TH ST 11/10/25-12/9/25 (442.17) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $442.17 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 442.17 0.00 Vendor Invoice Number Description Amount . VERIZON WIRELESS 6130624029 110 W 5TH ST 11/10/25-12/9/25 442.17 Account: ACCOUNTS PAYABLE Totals $442.17 $0.00 Fund: CIVIL DEFENSE FUND Totals $442.17 $442.17 Fund: 3385 - TIF ROCK RIVER DEVELOPMENT Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 260.00 Vendor Invoice Number Description Amount . WARD, MURRAY, PACE & JOHNSON, P.C. 4868678 Rock River TIF 16302-00129 - Professional Services November (260.00) Corporation 25 Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $260.00 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 260.00 0.00 Vendor Invoice Number Description Amount . WARD, MURRAY, PACE & JOHNSON, P.C. 4868678 Rock River TIF 16302-00129 - Professional Services November 260.00 User: Nicole Morgan Pages: 12 of 16 12/31/2025 10:40:14 AM Page 21 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . Corporation 25 Account: ACCOUNTS PAYABLE Totals $260.00 $0.00 Fund: TIF ROCK RIVER DEVELOPMENT Totals $260.00 $260.00 Fund: 3387 - TIF - CBD EAST Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 455.00 Vendor Invoice Number Description Amount . WARD, MURRAY, PACE & JOHNSON, P.C. 4868676 ECBD TIF 2715AR (455.00) Corporation Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $455.00 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 455.00 0.00 Vendor Invoice Number Description Amount . WARD, MURRAY, PACE & JOHNSON, P.C. 4868676 ECBD TIF 2715AR 455.00 Corporation Account: ACCOUNTS PAYABLE Totals $455.00 $0.00 Fund: TIF - CBD EAST Totals $455.00 $455.00 Fund: 5160 - SEWER-OPERATION & MAINTENANCE Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 4,540.82 Vendor Invoice Number Description Amount . AIRGAS USA,LLC 5521251961 4 - CYLINDER LEASE RENEWAL (528.95) HAWKINS, INC. 7282128 CL2 CYLINDER RENTAL (50.00) LEAF 19449028 BP-70M55 LEASE AGREEMENT (149.22) LEAF 19449029 BP-70C55 LEASE AGREEMENT (266.43) NICOR GAS 2821169NOV25 2350 W LE FEVRE RD 10/29/25-12/01/25 (171.35) NICOR GAS 4072737NOV25 2400 W LYNN BLVD 10/29/25-12/01/25 (1,331.56) PHELPS UNIFORM SPECIALISTS, INC. 2186058 12/11/25 JANITORIAL SERVICE (77.86) PHELPS UNIFORM SPECIALISTS, INC. 2191963 12/18/25 JANITORIAL SERVICE (77.86) TEST INC. 25110555 MONTHLY DMR TESTING-RIVER (930.00) UNITED STATES PLASTIC CORP. 7786213 8X10-12X15 RECLOSABLE BAGS, WHITE BOARD (539.84) USA BLUE BOOK INV00912416 4" BOLLARD POST SLEEVE (146.33) WALMART-TREVIPAY 7A260F18 CALENDAR, PLANNER, FOIL, PANS (40.82) User: Nicole Morgan Pages: 13 of 16 12/31/2025 10:40:14 AM Page 22 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . WHITESIDE COUNTY 110125-113025 WALMART DISTRIBUTION CENTER BILLING NOVEMBER (230.60) 2025 Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $4,540.82 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 4,540.82 0.00 Vendor Invoice Number Description Amount . AIRGAS USA,LLC 5521251961 4 - CYLINDER LEASE RENEWAL 528.95 HAWKINS, INC. 7282128 CL2 CYLINDER RENTAL 50.00 LEAF 19449028 BP-70M55 LEASE AGREEMENT 149.22 LEAF 19449029 BP-70C55 LEASE AGREEMENT 266.43 NICOR GAS 2821169NOV25 2350 W LE FEVRE RD 10/29/25-12/01/25 171.35 NICOR GAS 4072737NOV25 2400 W LYNN BLVD 10/29/25-12/01/25 1,331.56 PHELPS UNIFORM SPECIALISTS, INC. 2186058 12/11/25 JANITORIAL SERVICE 77.86 PHELPS UNIFORM SPECIALISTS, INC. 2191963 12/18/25 JANITORIAL SERVICE 77.86 TEST INC. 25110555 MONTHLY DMR TESTING-RIVER 930.00 UNITED STATES PLASTIC CORP. 7786213 8X10-12X15 RECLOSABLE BAGS, WHITE BOARD 539.84 USA BLUE BOOK INV00912416 4" BOLLARD POST SLEEVE 146.33 WALMART-TREVIPAY 7A260F18 CALENDAR, PLANNER, FOIL, PANS 40.82 WHITESIDE COUNTY 110125-113025 WALMART DISTRIBUTION CENTER BILLING NOVEMBER 230.60 2025 Account: ACCOUNTS PAYABLE Totals $4,540.82 $0.00 Fund: SEWER-OPERATION & MAINTENANCE Totals $4,540.82 $4,540.82 Fund: 5200 - SOLID WASTE FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 165.66 Vendor Invoice Number Description Amount . LEAF 19449027 BP70M31 LEASE AGREEMENT (61.75) LEAF 19449028 BP-70M55 LEASE AGREEMENT (37.30) LEAF 19449029 BP-70C55 LEASE AGREEMENT (66.61) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $165.66 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 165.66 0.00 Vendor Invoice Number Description Amount . LEAF 19449027 BP70M31 LEASE AGREEMENT 61.75 User: Nicole Morgan Pages: 14 of 16 12/31/2025 10:40:14 AM Page 23 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . LEAF 19449028 BP-70M55 LEASE AGREEMENT 37.30 LEAF 19449029 BP-70C55 LEASE AGREEMENT 66.61 Account: ACCOUNTS PAYABLE Totals $165.66 $0.00 Fund: SOLID WASTE FUND Totals $165.66 $165.66 Fund: 7200 - HEALTH INSURANCE FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 420.00 Vendor Invoice Number Description Amount . MOELLER, MYERS & ASSOCIATES, P.C. 32550 EAP SESSION FEES (420.00) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $420.00 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 420.00 0.00 Vendor Invoice Number Description Amount . MOELLER, MYERS & ASSOCIATES, P.C. 32550 EAP SESSION FEES 420.00 Account: ACCOUNTS PAYABLE Totals $420.00 $0.00 Fund: HEALTH INSURANCE FUND Totals $420.00 $420.00 Fund: 7500 - BLACKHAWK AREA TASK FORCE FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 261.00 Vendor Invoice Number Description Amount . MOTOROLA SOLUTIONS - STARCOM 9874220251103 BATF - 9 LIMITED USE MONTHLY RATE (261.00) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $261.00 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 261.00 0.00 Vendor Invoice Number Description Amount . MOTOROLA SOLUTIONS - STARCOM 9874220251103 BATF - 9 LIMITED USE MONTHLY RATE 261.00 Account: ACCOUNTS PAYABLE Totals $261.00 $0.00 Fund: BLACKHAWK AREA TASK FORCE FUND Totals $261.00 $261.00 Fund: 7600 - POLICE PENSION FUND Account: 10101 - SAUK VALLEY-A/P & DEPOSITS 01/05/2026 0.00 1,535.00 User: Nicole Morgan Pages: 15 of 16 12/31/2025 10:40:14 AM Page 24 of 80  City of Sterling Accounts Payable Payment Batch G/L Distribution Report G/L Account Number G/L Date Debit Amount Credit Amount . Vendor Invoice Number Description Amount . LAUTERBACH & AMEN, LLP 112972 POLICE PENSION ACTUARIAL REPORT 4/30/25 (1,535.00) Account: SAUK VALLEY-A/P & DEPOSITS Totals $0.00 $1,535.00 Account: 29915 - ACCOUNTS PAYABLE 01/05/2026 1,535.00 0.00 Vendor Invoice Number Description Amount . LAUTERBACH & AMEN, LLP 112972 POLICE PENSION ACTUARIAL REPORT 4/30/25 1,535.00 Account: ACCOUNTS PAYABLE Totals $1,535.00 $0.00 Fund: POLICE PENSION FUND Totals $1,535.00 $1,535.00 Payment Batch: SAUK VALEY-CK - SAUK VALLEY NOW A/P-DEPOSITS Totals $193,559.56 $193,559.56 User: Nicole Morgan Pages: 16 of 16 12/31/2025 10:40:14 AM Page 25 of 80  Agenda Item Background Item: Pay Request Number 2 (Final) to Helm in the amount of $260,993.35 for Light Street Construction Meeting Date: January 5, 2026 Public Content: Pay request 2 (Final) is for work completed from September 27, 2025, through October 31, 2025. All work is now complete with the project including reconstruction, sanitary and storm sewer lines, striping and dumpster enclosure. Recommended Action: Staff and the City's Consulting Engineer Recommend approval of Pay Request Number 2 to Helm in the amount of $260,993.35 for Light Street Construction Attachments: 1. Pay Req #2 - Light Street Constructiuon HELM Page 26 of 80 Page 27 of 80 Page 28 of 80 Page 29 of 80 Page 30 of 80  Agenda Item Background Item: Ordinance 2026-01-01 Authorizing the Issuance of not to exceed $41,950,000 General Obligation Bonds (alternate revenue source), Series 2026 of the City of Sterling, Whiteside County, Illinois, Providing the details of such bonds and for an alternate revenue source and the levy of direct annual taxes sufficient to pay the principal of and interest on such bonds, and related matters. Meeting Date: January 5, 2026 Public Content: This ordinance authorizes the City of Sterling to issue up to $41,950,000 in General Obligation Bonds (Alternate Revenue Source), Series 2026, to finance capital improvement projects at CGH Medical Center and to cover related issuance costs. The bonds will be repaid primarily from designated alternate revenue sources, with a property tax levy authorized only as a back- up security as required by state law. The City and CGH's bond consultant projects CGH will have more than 4.5 times coverage for bond payments based on current revenues. All required notices, public hearings, and statutory procedures have been completed, and no petitions opposing the bond issuance were received. The issuance allows the City to move forward with needed hospital improvements that support public health, safety, and welfare for Sterling residents. Recommended Action: Approval of Ordinance 2026-01-01 Authorizing the Issuance of not to exceed $41,950,000 General Obligation Bonds (alternate revenue source), Series 2026 of the City of Sterling, Whiteside County, Illinois, Providing the details of such bonds and for an alternate revenue source and the levy of direct annual taxes sufficient to pay the principal of and interest on such bonds, and related matters. Attachments: 1. Ord 2025-01-01 Bond Parameters 2026 City of Sterling 2. Sterling - CGH Medical Center Bonds 1.5.2026 Page 31 of 80  CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS ORDINANCE NUMBER 2026-01-01 AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $41,950,000 GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2026 OF THE CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS, PROVIDING THE DETAILS OF SUCH BONDS AND FOR AN ALTERNATE REVENUE SOURCE AND THE LEVY OF DIRECT ANNUAL TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SUCH BONDS, AND RELATED MATTERS ADOPTED BY THE MAYOR AND CITY COUNCIL CITY OF STERLING WHITESIDE, ILLINOIS The 5th day of January, 2026 45107559.5/164133.00001 Page 32 of 80  TABLE OF CONTENTS Page Section 1. Definitions................................................................................................................2 Section 2. Authority/Purpose/Findings .....................................................................................6 Section 3. Authorization and Terms of Bonds ..........................................................................6 Section 4. Related Agreements .................................................................................................9 Section 5. Execution and Authentication ................................................................................10 Section 6. Transfer, Exchange and Registration .....................................................................10 Section 7. Bond Registrar and Paying Agent..........................................................................12 Section 8. Alternate Bonds; General Obligations ...................................................................13 Section 9. Form of Bonds .......................................................................................................14 Section 10. Treatment of Bonds as Debt ..................................................................................20 Section 11. Hospital Fund .........................................................................................................20 Section 12. Alternate Bond Fund ..............................................................................................24 Section 13. Alternate Bonds; General Obligations; Tax Levy .................................................25 Section 14. Filing with County Clerk .......................................................................................26 Section 15. Pledged Account; Tax Abatement .........................................................................27 Section 16. Pledged Revenues; General Covenants .................................................................27 Section 17. Parity Bonds; Additional Bonds ............................................................................29 Section 18. Defeasance .............................................................................................................30 Section 19. Bond Proceeds Account .........................................................................................30 Section 20. Arbitrage Rebate ....................................................................................................31 Section 21. Investment Regulations ..........................................................................................32 Section 22. Non-Arbitrage and Tax-Exemption .......................................................................32 Section 23. Further Assurances and Actions ............................................................................36 Section 24. Ordinance to Constitute a Contract ........................................................................37 Section 25. Severability and No Contest ..................................................................................37 Section 26. Conflict ..................................................................................................................37 Section 27. Effective Date ........................................................................................................37 i 45107559.5/164133.00001 Page 33 of 80  ORDINANCE NO. 2026-01-01 AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $41,950,000 GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2026 OF THE CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS, PROVIDING THE DETAILS OF SUCH BONDS AND FOR AN ALTERNATE REVENUE SOURCE AND THE LEVY OF DIRECT ANNUAL TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SUCH BONDS, AND RELATED MATTERS WHEREAS, the City of Sterling, Whiteside County, Illinois (the “City” or “Issuer”), is a non-home rule unit duly established and operating its hospital facilities in accordance with the provisions of Division 23 of Article 11 of the Illinois Municipal Code (65 ILCS 5/11-23-1 et seq.), as supplemented and amended (the “Enterprise Revenue Act” or “Act”); and WHEREAS, the Issuer has established and is currently maintaining and operating a public acute care hospital facility known as CGH Medical Center (the “Hospital Facilities,” as further defined below); and WHEREAS, the Hospital Facilities are operated and maintained for and on behalf of the Issuer by the Board of Directors of the Hospital Facilities (the “Hospital Board”) pursuant to the Act; and WHEREAS, the Mayor and City Council of the City (collectively, the “Corporate Authorities”) have determined that it is advisable, necessary and in the best interests of the Issuer’s public health, safety and welfare to undertake the (i) financing of the costs of various capital improvement projects in the City for the Hospital Facilities (the “Project”) pursuant to the preliminary plans and specifications therefor prepared by Project designers; and (ii) paying certain costs of issuance of the Bonds (as such term is hereinafter defined), all for the benefit of the inhabitants of the Issuer; and WHEREAS, the estimated cost to provide for the Project, including legal, financial, bond discount, printing and publication costs, capitalized interest, and other expenses, is anticipated not to exceed available funds on hand or grant proceeds and the amount presently anticipated and planned to be paid from proceeds of the hereinafter described Bonds; and WHEREAS, pursuant to the provisions of the Local Government Debt Reform Act of the State (the “Debt Reform Act”) as supplemented and amended (Section 350/1 et seq. of Chapter 30 of the Illinois Compiled Statutes), “Alternate Bonds”, as defined in the Debt Reform Act, may be issued pursuant to “Applicable Law”, as defined in the Debt Reform Act, for the above-described purposes; and WHEREAS, Ordinance No. 2025-11-38, AN ORDINANCE authorizing the issuance of General Obligation Bonds (Alternate Revenue Source) of the City of Sterling, Whiteside County, Illinois, in an aggregate principal amount not to exceed $41,950,000 for the purpose of financing 45107559.5/164133.00001 Page 34 of 80 the costs of various capital improvement projects in the City for CGH Medical Center and paying for costs related thereto (the “Preliminary Ordinance”), adopted November 3, 2025, together with a separate notice of intent to issue alternate bonds (being general obligation in lieu of revenue bonds), were published on November 7, 2025, in The Daily Gazette, a newspaper published in Sterling, Illinois, and of general circulation in the corporate limits of the Issuer; and WHEREAS, more than thirty (30) days have expired since the date of publication of the Preliminary Ordinance and such notice described above and the Issuer has received no petition in connection with the Bonds or the Project, forms of petitions therefor being at all relevant times available in the office of the City Clerk; and WHEREAS, pursuant to the Bond Issue Notification Act (30 ILCS 352/1 et seq., “BINA”), with due notice under BINA having been published in The Daily Gazette on November 7, 2025, the Issuer held and conducted on December 1, 2025, the public hearing required by BINA; and WHEREAS, pursuant to and in accordance with the Enterprise Revenue Act, the Debt Reform Act, BINA and this Ordinance, the Issuer is authorized to issue its General Obligation Bonds (Alternate Revenue Source), Series 2026, up to the aggregate principal amount of $41,950,000 (the “Bonds”), for the purpose of providing funds to pay costs of the Project and related costs and expenses; and WHEREAS, the Issuer has insufficient funds to pay the costs of the Project and, therefore, must borrow money and issue the Bonds under this Ordinance in evidence thereof up to the aggregate principal amount set forth above for such purposes; and WHEREAS, for convenience of reference only this Ordinance is divided into numbered sections with headings, which shall not define or limit the provisions hereof, as follows: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS: Section 1. Definitions. Certain words and terms used in this Ordinance shall have the meanings given them herein, including above in the preambles hereto, and the meanings given them in this Section 1, unless the context or use clearly indicates another or different meaning is intended. Certain definitions are as follows: “Act” is defined in the preambles to this Ordinance. “Additional Bonds” means any Alternate Bonds issued in the future in accordance with the provisions of Applicable Law on a parity with and sharing ratably and equally in the Enterprise Revenues. “Alternate Bonds” means any Outstanding bonds issued as alternate bonds under and pursuant to Applicable Law, and includes, expressly, the Bonds. -2- 45107559.5/164133.00001 Page 35 of 80  “Applicable Law” means, collectively, the Debt Reform Act, as supplemented and amended, and the Enterprise Revenue Act, and other applicable law, each as supplemented and amended. “Arbitrage Agreement” means the Issuer’s Non-Arbitrage Agreement and Tax Compliance Certificate in connection with, among other things, arbitrage rebate and Yield Reduction Payments. “Bona fide debt service fund” means a fund or account that: (1) is used primarily to achieve a proper matching of revenues with principal and interest payments within each bond year; and (2) is depleted at least once each bond year, except for a reasonable carryover amount not to exceed the greater of: (i) the earnings on the fund for the immediately preceding bond year; or (ii) one-twelfth of the principal and interest payments on the issue for the immediately preceding Bond Year. “Bond” or “Bonds” means the Issuer’s General Obligation Bonds (Alternate Revenue Source), Series 2026, authorized to be issued by this Ordinance, up to the aggregate principal amount set forth above. “Bond Order” shall have the meaning in Section 3(a). “Bond Registrar” and “Paying Agent” means the entity, and its successors, set forth in a Bond Order. “Bond Year” shall mean November 1 through the following October 31. “City” or “Issuer” means the City of Sterling, Whiteside County, Illinois, and lawful successors. “Code” means the Internal Revenue Code of 1986, as supplemented and amended, and includes related and applicable Income Tax Regulations promulgated by the Treasury Department. “Corporate Authorities” means the Issuer’s City Council. “Debt Reform Act” shall have the meaning set forth in the preambles to this Ordinance. “Enterprise Revenue Act” shall have the meaning set forth in the preambles to this Ordinance. “Enterprise Revenues” means all income from whatever source derived from, related to or in connection with the Hospital Facilities, including: (i) investment income; (ii) intergovernmental transfers (including federal and state medical payments and Build America Payments), general property taxes and insurance proceeds; and (iii) penalties and late charges, but excluding expressly (a) nonrecurring income from the sale of property in the ordinary course of business; (b) governmental or other grants; (c) advances or grants or other types of gifts restricted by the donor or giver to a particular purpose (i.e., “Restricted Gifts”); (d) capital development, -3- 45107559.5/164133.00001 Page 36 of 80 reimbursement, or recovery charges and the like; and (e) as otherwise determined in accordance with generally accepted accounting principles for local government funds. “Fiscal Year” means the twelve-month period beginning May 1 and ending April 30, not inconsistent with Applicable Law. “Hospital Facilities” means and includes real estate and any and all forms of tangible and intangible personal property and services used or useful as an aid, or constituting an advantage or convenience to the operation and maintenance of a public hospital, and shall also include, but not be limited to, any clinics, dispensaries, physician offices, surgery centers, diagnostic facilities, and congregate housing units. “Hospital Fund” or “Fund” means the Issuer’s Hospital Fund, created and established as provided in this Ordinance. “Junior Bonds” means any Outstanding bond or Outstanding bonds payable from the Junior Bond and Interest Account of the Hospital Fund created or continued under Section 11 of this Ordinance. “Maximum Annual Debt Service,” when used with reference to Senior Bonds, Junior Bonds, Parity Bonds or Additional Bonds, respectively, means an amount of money equal to the highest future principal and interest requirement of all such bonds Outstanding, as applicable, required to be deposited into a Senior Bond and Interest Account or a Junior Bond and Interest Account, as applicable, maintained in and by this Ordinance, or payable from Net Revenues, in any Fiscal Year, including and subsequent to the Fiscal Year in which the computation is made. “Net Revenues” means the Enterprise Revenues minus Operation and Maintenance Expenses. “Operation and Maintenance Expenses” means all expenses of operating, maintaining and routine repair of the Hospital Facilities, including but not limited to, wages, salaries, costs of materials and supplies, power, fuel, insurance, purchase of Hospital Facilities services of the Issuer; but excluding debt service, depreciation, or any reserve requirements, and otherwise as determined in accordance with generally accepted accounting principles for local government enterprise funds. “Ordinance” or “ordinance” means this ordinance and any ordinance supplemental hereto. “Outstanding” when used with reference to any bond, means a bond which is outstanding and unpaid; provided, however, such term shall not include bonds: (i) which have matured and for which moneys are on deposit with proper paying agents, or are otherwise properly available, sufficient to pay all principal thereof and interest thereon, or (ii) the provision for payment of which has been made by the Issuer by the deposit in an irrevocable trust or escrow of funds of direct, full faith and credit obligations of the United States, the principal of and interest on which will be sufficient to pay at maturity, or as called for redemption, all of the principal of, redemption -4- 45107559.5/164133.00001 Page 37 of 80 premium, if any, and interest on such bonds, and will not result in the loss of the exclusion from gross income of the interest thereon under Section 103 of the Code. “Parity Bonds” means bonds or any other obligations issued, including the City’s outstanding Taxable General Obligation Bonds (Alternate Revenue Source), Series 2021A, and General Obligation Bonds (Alternate Revenue Source), Series 2021B, or to be issued subsequent in time to the Bonds and which will share ratably and equally in the Pledged Revenues with either the Senior Bonds or the Junior Bonds, as set forth and provided for with respect to such Parity Bonds. “Pledged Account” shall have the meaning in Section 13. “Pledged Revenues” means the Net Revenues. “Pledged Taxes” means the ad valorem property taxes levied against all of the taxable property in the City without limitation as to rate or amount, levied and pledged hereunder by the Issuer to pay the Bonds. “Policy” means, if any, a bond insurance policy or other credit facility securing the payment of the Bonds. “Project” means the Project described and defined in the preambles to this Ordinance. “Purchase Agreement” means, when fully executed, the bond purchase agreement or contract to be entered into by and between the Issuer and the Underwriter in connection with the Bonds. “Qualified Investments” means legal investments of the Issuer under the laws of the State, subject to any restrictions or limitations with respect to an applicable insurer’s policy. “Rule 15c2-12” means Rule 15c2-12 of the Securities and Exchange Commission (“SEC”). “Senior Bonds” means any Outstanding bond or Outstanding bonds, payable from the Senior Bond and Interest Account of the Hospital Fund created, or continued under Section 11 of this Ordinance, and includes the Bonds. “State” means the State of Illinois. “Taxable” or “taxable” with respect to an obligation means that the obligation is not tax-exempt. “Tax-Exempt” or “tax-exempt” with respect to an obligation means that the interest on the obligation is excluded from gross income for federal income tax purposes. “Undertaking” means the Issuer’s Continuing Disclosure Undertaking under Rule 15c2-12 concerning the Bonds. -5- 45107559.5/164133.00001 Page 38 of 80  “Underwriter” means Bernardi Securities, Inc., Northfield, Illinois, the underwriter in connection with the Bonds. “United States” means the United States of America. “Yield” or “yield” means yield computed under Section 1.148-4 of the Income Tax Regulations for the Bonds, and yield computed under Section 1.148-5 of the Income Tax Regulations for an investment. “Yield Reduction Payments” or “yield reduction payments” shall have the meaning in Income Tax Regulations Section 1.148-5(c). “Yield Restricted” or “yield restricted” with reference to an obligation means that the yield thereon is limited to the yield on the Bonds. Section 2. Authority; Purpose; Findings. The Corporate Authorities hereby find that the matters set forth in the preambles and recitals hereto are true and correct and incorporate them herein by this reference and that it is necessary and in the best interests of the Issuer that the Issuer finance the Project and that Bonds be issued for such purpose. Proceeds of the Bonds are hereby allocated for such purpose. Section 3. Authorization; Terms of Bonds. To meet part of the estimated Project costs, there is hereby authorized the sum of up to $41,950,000, to be derived from the proceeds of the Bonds. For the purpose of financing the Project and related costs, the Bonds of the Issuer shall be issued and sold in an aggregate principal amount up to the aggregate principal amount set forth above. The Bonds shall be designated “General Obligation Bonds (Alternate Revenue Source), Series 2026”. (a) General Terms. The Bonds shall be numbered consecutively from 1 upwards in order of their issuance and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of the Bonds. Unless otherwise determined in an order to authenticate the Bonds (in any event as of or before the date or dates of the issuance and sale thereof and acceptable to the Underwriter), each Bond shall be dated as of or before the date of issuance as each purchaser agrees or accepts. The Bonds shall be issuable in the denomination of $5,000 each or any authorized integral multiple thereof. Subject to a Bond Order (hereinafter defined), the Bonds are hereby authorized to bear interest at the rate or rates percent per annum, not to exceed 6.50%, and shall mature in the principal amount, not to exceed $3,600,000, on November 1 of each year, ending not later than 2046, as shall be specified in a Bond Order. Although the Bonds of each maturity are authorized to mature and to bear interest at the rates per annum, as set forth above, the Bonds are nevertheless hereby authorized to mature in other principal amounts (not exceeding $41,950,000 in the aggregate) and to bear interest at such lawfully authorized lower rate or rates and have such other terms and provisions as the Mayor shall certify in one or more Bond Orders at or about the time of delivery of the Bonds and payment therefor (with respect to which the term “Bond Order” shall mean each certificate signed by the Mayor and attested by the City Clerk and under the seal of the Issuer, setting forth and specifying -6- 45107559.5/164133.00001 Page 39 of 80 details of the Bonds, including, as the case may be, reoffering premiums, original issue discount (“OID”), specification of Project elements to be financed, reconfiguration of the form of the Bonds, series description, identification of the Bond Registrar, Paying Agent, other fiscal agents, Underwriter, Pledged Taxes, final interest rates, optional and mandatory call provisions, payment dates, the final maturity schedule and features related to tax-exempt Bonds). The Bonds shall be conformed to each applicable Bond Order. Each Bond shall bear interest from its date, or from the most recent interest payment date to which interest has been paid, computed on the basis of a 360-day year consisting of twelve 30-day months, and payable in lawful money of the United States semiannually on each May 1 and November 1, commencing on the date set forth in a Bond Order, at the rate or rates percent per annum herein provided. The principal of and premium, if any, on the Bonds shall be payable in lawful money of the United States upon presentation and surrender thereof at the designated payment office of the Paying Agent, to be designated in a Bond Order, to act as the Paying Agent for the Bonds (including its successors, the “Paying Agent”). Interest on the Bonds shall be payable on each interest payment date to the registered owners of record appearing on the registration books maintained by the Bond Registrar to be designated in a Bond Order, to act as the Bond Registrar for the Bonds on behalf of the Issuer for such purpose (including its successors, the “Bond Registrar”), at the designated trust office of the Bond Registrar as of the close of business on the fifteenth (15th) day (whether or not a business day) of the calendar month next preceding the applicable interest payment date. Interest on the Bonds shall be paid by check or draft mailed by the Paying Agent to such registered owners at their addresses appearing on the registration books. (b) Redemption. (i) Bonds shall be subject to optional redemption prior to maturity as provided in Section 9, or otherwise in a Bond Order, and not otherwise. (ii) This paragraph shall apply only to the extent a Bond Order shall specify any Term Bonds and otherwise shall not apply. Bonds so specified as Term Bonds (the “Term Bonds”) are subject to mandatory sinking fund redemption in the principal amount on November 1 of the years so specified but corresponding to the principal maturities specified above in Section 3(a). At its option before the 45th day (or such lesser time acceptable to the Bond Registrar) next preceding any mandatory sinking fund redemption date in connection with Term Bonds the Issuer by furnishing the Bond Registrar and the Paying Agent an appropriate certificate of direction and authorization executed by the Mayor may: (i) deliver to the Bond Registrar for cancellation Term Bonds in any authorized aggregate principal amount desired; or (ii) furnish the Paying Agent funds for the purpose of purchasing any of such Term Bonds as arranged by the Issuer; or (iii) receive a credit (not previously given) with respect to the mandatory sinking fund redemption obligation for such Term Bonds which prior to such date have been redeemed and cancelled. Each such Bond so delivered, previously purchased or redeemed shall be credited at 100% of the principal amount thereof, and any excess shall be credited with regard to future mandatory sinking fund redemption obligations for such Bonds any specified order (but in chronological order if there is no specification), and the principal amount of Bonds to be so redeemed as provided shall be accordingly reduced. In the event Bonds being so redeemed are in a denomination greater than -7- 45107559.5/164133.00001 Page 40 of 80 $5,000, a portion of such Bonds may be so redeemed, but such portion shall be in the principal amount of $5,000 or any authorized integral multiple thereof. (iii) In the event of the redemption of less than all the Bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof and the Bond Registrar shall assign to each Bond of such maturity a distinctive number for each $5,000 principal amount of such Bond and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. (iv) The Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on the redemption date, together with interest to such redemption date, prior to giving any notice of redemption. With notice at least forty-five (45) days before the redemption date to the Bond Registrar by the Issuer (or lesser notice acceptable to the Bond Registrar), with no such notice required for mandatory sinking fund redemption of Term Bonds, notice of the redemption of Bonds shall be given by first class mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for such redemption to the registered owners of Bonds to be redeemed at their last addresses appearing on such registration books. The Bonds or portions thereof specified in such notice shall become due and payable at the applicable redemption price on the redemption date therein designated, together with interest to the redemption date. If there shall be drawn for redemption less than all of a Bond, the Issuer shall execute and the Bond Registrar shall authenticate and deliver, upon the surrender of such Bond, without charge to the registered owner thereof, for the unredeemed balance of the Bond so surrendered, Bonds of like maturity and of the denomination of $5,000 or any authorized integral multiple thereof. Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed at the option of the Issuer are received by the Paying Agent/Bond Registrar prior to the giving of such notice of redemption, such notice may, at the option of the Issuer, state that such 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 Issuer 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 Issuer 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 that date. (v) All notices of redemption are to include at least the information as follows: (1) the redemption date; (2) the redemption price; (3) if less than all of the Bonds of a given maturity are to be redeemed, the identification and, in the case of partial redemption of the Bonds, the respective principal amounts of the Bonds to be redeemed; (4) a statement that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from such date; and (5) the place where -8- 45107559.5/164133.00001 Page 41 of 80 such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Paying Agent. (vi) The Bond Registrar shall not be required to exchange or transfer any Bond during the period from the fifteenth (15th) day (whether or not a business day) of the calendar month next preceding any interest payment date to such interest payment date or during the period of fifteen (15) days next preceding the mailing of a notice of redemption which could designate all or a part of any Bonds for redemption, or after such mailing. (vii) Notice of redemption having been so given, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date such Bonds or portions of Bonds shall cease to bear interest. Neither the failure to mail such redemption notice nor any defect in any notice so mailed to any particular registered owner of a Bond shall affect the sufficiency of such notice with respect to other registered owners. Notice having been properly given, any failure of a registered owner of a Bond to receive such notice shall not be deemed to invalidate, limit or delay the effect of the notice or the redemption action described in the notice. Such notice may be waived in writing by a registered owner of a Bond, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice shall be filed, if at all, with the Bond Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. Upon surrender of such Bonds for redemption in accordance with such notice, such Bonds shall be paid by the Paying Agent at the redemption price. Interest due on or prior to the redemption date shall be payable as herein provided for the payment of interest. (viii) If any Bond or portion of Bond called for redemption shall not be so paid upon surrender thereof for redemption, the principal, and premium, if any, shall, until paid, bear interest from the redemption date at the rate borne by the Bond or portion of such Bond so called for redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued. Section 4. Related Agreements. All things done with respect to the sale of the Bonds by the Issuer’s Mayor, City Manager, and Finance Director (the “Designated Representatives”), shall be and are hereby in all respects ratified, confirmed and approved. The sale of the Bonds at a price of not less than 97% of par plus accrued interest is authorized and approved. The Designated Representatives and other officials of the Issuer are hereby authorized and directed to do and perform, or cause to be done or performed for or on behalf of the Issuer, each and everything necessary for the issuance of the Bonds, including the proper execution, delivery and performance of the Undertaking, Purchase Agreement, and related instruments and certificates by the Issuer and the purchase by and delivery of the Bonds to or at the direction of the Underwriter. No elected or appointed officer of the Issuer is in any manner interested, directly or indirectly, in his or her own name or in the name of any other person, association, trust or corporation in the Purchase Agreement. The continuing disclosure provisions of SEC Rule 15c2-12 apply to the Bonds, and the Issuer will execute and deliver an Undertaking. The Underwriter is authorized to pay issuance costs related to the Bonds and receive a credit against the purchase price for the Bond, according to the Purchase Agreement. -9- 45107559.5/164133.00001 Page 42 of 80  Section 5. Execution and Authentication. Each Bond shall be executed in the name of the Issuer by the manual or facsimile signature of its Mayor and the corporate seal of the Issuer, or a facsimile thereof, shall be thereunto affixed, impressed or otherwise reproduced or placed thereon and attested by the manual or facsimile signature of its City Clerk. Temporary Bonds, preliminary to the availability of Bonds in definitive form shall be and are hereby authorized and approved. In case any officer whose signature, or a facsimile of whose signature, shall appear on any Bond shall cease to hold such office before the issuance of such Bond, such Bond shall nevertheless be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile thereof, appears on such Bond had not ceased to hold such office. Any Bond may be signed, sealed or attested on behalf of the Issuer by any person who, on the date of such act, shall hold the proper office, notwithstanding that at the date of such Bond such person may not hold such office. No recourse shall be had for the payment of any Bonds against the Corporate Authorities or any officer or employee of the Issuer (past, present or future) who executes the Bonds, or on any other basis. Each Bond shall bear thereon a certificate of authentication executed manually by the Bond Registrar. No Bond shall be entitled to any right or benefit under this Ordinance or shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the Bond Registrar. Such certificate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed by the Bond Registrar if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder. Section 6. Transfer, Exchange and Registration. The Bonds shall be negotiable, subject to the provisions for registration of transfer contained herein and related to book-entry only registration. (a) General This subsection (a) is subject to the provisions of subsection (b) concerning book-entry only provisions. The Issuer shall cause books (the “Bond Register”) for the registration and for the transfer of the Bonds as provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar, which is hereby constituted and appointed the Bond Registrar of the Issuer. The Issuer is authorized to prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the Issuer for use in the issuance from time to time of the Bonds and in the transfer and exchange of Bonds. Upon surrender for transfer of any Bond at the office maintained for such purpose by 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 Issuer shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Bond or Bonds of the same series and maturity of authorized denominations, for a like - 10 - 45107559.5/164133.00001 Page 43 of 80 aggregate principal amount. Any fully registered Bond or Bonds may be exchanged at the office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the same series and maturity of other authorized denominations. The execution by the Issuer 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. The Bond Registrar shall not be required to transfer or exchange any Bond during the period from the last day of the calendar month next preceding any interest payment date on such Bond and ending on such interest payment date, nor, as may be applicable, to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a period of fifteen (15) days next preceding mailing of a notice of prepayment and redemption of any Bonds, or after such mailing. 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, premium (if any) or interest on any Bond shall be made only to or upon the order of the registered owner thereof or such registered 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 Issuer 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 exchanged in the case of the issuance of a Bond or Bonds for the outstanding portion of a Bond surrendered for redemption. The Mayor or Treasurer may, in his or her discretion at any time, designate a bank with trust powers or trust company, duly authorized to do business as a bond registrar, paying agent, or both, to act in one or both such capacities hereunder, in the event the Mayor or Treasurer shall determine it to be advisable. Notice shall be given to the registered owners of any such designation in the same manner, as near as may be practicable, as for a notice of redemption of Bonds, and as if the date of such successor taking up its duties were the redemption date. (b) Book-Entry-Only Provisions. Unless otherwise set forth in a Bond Order, the Bonds shall be issued in the form of a separate single fully registered Bond of each series for each of the maturities of the Bonds. Upon initial issuance, the ownership of each such Bond may be registered in the Bond Register therefor in a street name of the Depository, or any successor thereto, as nominee of the Depository. The outstanding Bonds from time to time may be registered in the Bond Register in a street name, as nominee of the Depository. If not already effected, the Mayor or Treasurer is authorized to execute and deliver on behalf of the Issuer such letters to or agreements with the Depository as shall be necessary to effectuate such book-entry system (any such letter or agreement being referred to herein as the “Representation Letter”). Without limiting the generality of the authority given to the Mayor or Treasurer with respect to entering into such Representation Letter, it may contain provisions relating to (a) payment procedures, (b) transfers of the Bonds or of beneficial interest therein, (c) redemption notices and procedures unique to the Depository, (d) additional notices or communications, and (e) amendment from time - 11 - 45107559.5/164133.00001 Page 44 of 80 to time to conform with changing customs and practices with respect to securities industry transfer and payment practices. With respect to Bonds registered in the Bond Register in the name of a nominee of the Depository, the Issuer and the Bond Registrar shall have no responsibility or obligation to any broker-dealer, bank or other financial institution for which the Depository holds Bonds from time to time as securities depository (each such broker-dealer, bank or other financial institution being referred to herein as a “Depository Participant”) or to any person on behalf of whom such a Depository Participant holds an interest in the Bonds. Without limiting the meaning of the foregoing, the Issuer and the Bond Registrar shall have no responsibility or obligation with respect to (a) the accuracy of the records of the Depository, the nominee, or any Depository Participant with respect to any ownership interest in the Bonds, (b) the delivery to any Depository Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, or (c) the payment to any Depository Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to principal of or interest on the Bonds. As long as the Bonds are held in a book-entry-only system, no person other than the nominee of the Depository, or any successor thereto, as nominee for the Depository, shall receive a Bond certificate with respect to any Bonds. Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new nominee in place of the prior nominee, and subject to the provisions hereof with respect to the payment of interest to the registered owners of Bonds as of the close of business on the last day of the calendar month next preceding the applicable interest payment date, the reference herein to nominee in this Ordinance shall refer to such new nominee of the Depository. In the event that (a) the Issuer determines that the Depository is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the agreement among the Issuer, the Bond Registrar, the Paying Agent and the Depository evidenced by the Representation Letter shall be terminated for any reason or (c) the Issuer determines that it is in the best interests of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the Issuer shall notify the Depository and the Depository Participants of the availability of Bond certificates, and the Bonds shall no longer be restricted to being registered in the Bond Register in the name of a nominee of the Depository. At that time, the Issuer may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a book-entry system, as may be acceptable to the Issuer, or such depository’s agent or designee, and if the Issuer does not select such alternate book-entry system, then the Bonds may be registered in whatever name or names registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of a nominee of the Depository, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. Section 7. Bond Registrar and Paying Agent. The Bond Registrar and Paying Agent thereof with respect to this Ordinance and the Bonds shall be as set forth in a Bond Order. The - 12 - 45107559.5/164133.00001 Page 45 of 80 Issuer covenants that it shall at all times retain a Bond Registrar and Paying Agent with respect to the Bonds and shall cause to be maintained at the office of such Bond Registrar a place where Bonds may be presented for registration of transfer or exchange, that it will maintain at the designated office of the Paying Agent a place where Bonds may be presented for payment, that it shall require that the Bond Registrar maintain proper registration books and that it shall require the Bond Registrar and Paying Agent to perform the other duties and obligations imposed upon each of them by this Ordinance in a manner consistent with the standards, customs and practices concerning municipal securities. The Issuer may enter into appropriate agreements with any Bond Registrar or such officer’s successor and any Paying Agent in connection with the foregoing, including as follows (in any event, (a) - (f) below shall apply to the Bond Registrar and Paying Agent): (a) to act as Bond Registrar, authenticating agent, Paying Agent and transfer agent as provided herein; (b) to maintain a list of the registered owners of the Bonds as set forth herein and to furnish such list to the Issuer upon request, but otherwise to keep such list confidential; (c) to cancel and/or destroy Bonds which have been paid at maturity or submitted for exchange or transfer; (d) to furnish the Issuer at least annually a certificate with respect to Bonds cancelled and/or destroyed; (e) to give notices of redemption; and (f) to furnish the Issuer at least annually an audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds. The Bond Registrar and Paying Agent shall signify their acceptances of the duties and obligations imposed upon them by this Ordinance. The Bond Registrar by executing the certificate of authentication on any Bond shall be deemed to have certified to the Issuer that it has all requisite power to accept, and has accepted, such duties and obligations not only with respect to the Bond so authenticated but with respect to all of the Bonds. The Bond Registrar and Paying Agent are the agents of the Issuer for such purposes and shall not be liable in connection with the performance of their respective duties except for their own negligence or default. The Bond Registrar shall, however, be responsible for any representation in its certificate of authentication on the Bonds. Section 8. Alternate Bonds; General Obligations. The Bonds are and constitute Alternate Bonds under the Debt Reform Act, to be payable from Pledged Revenues and by a levy of Pledged Taxes, and the Bonds constitute general obligation bonds. Subject to the foregoing, under and pursuant to Section 15 of the Debt Reform Act, the full faith and credit of the Issuer are hereby irrevocably pledged to the punctual payment of the principal of, premium, if any, and interest on the Bonds; the Bonds shall be direct and general obligations of the Issuer; and the Issuer shall be obligated to levy the Pledged Taxes for the payment of the Bonds and the interest thereon. - 13 - 45107559.5/164133.00001 Page 46 of 80  Pledged Revenues are hereby determined by the Corporate Authorities to be sufficient to provide for or pay in each year to final maturity of the Bonds all of the following: (1) Operation and Maintenance Expenses of the enterprise (i.e., the Hospital Facilities), but not including depreciation, (2) debt service on all Outstanding revenue bonds payable from Pledged Revenues, (3) all amounts required to meet any fund or account requirements with respect to any such Outstanding revenue bonds, (4) other contractual or tort liability obligations, if any, payable from such Pledged Revenues, and (5) in each year, an amount not less than 1.25 times debt service of all (i) Alternate Bonds payable from such Pledged Revenues previously issued and outstanding and (ii) Alternate Bonds payable from such Pledged Revenues proposed to be issued. To the extent payable from one or more revenue sources, the Pledged Revenues shall be and, with appropriate increases, are hereby determined by the Corporate Authorities to provide in each year an amount not less than 1.25 times debt service (as defined in Section 3 of the Debt Reform Act) of Alternate Bonds payable from such Pledged Revenues previously issued and outstanding and Alternate Bonds proposed to be issued. Such conditions enumerated need not be met for that amount of debt service (as defined in Section 3 of the Debt Reform Act) provided for by the setting aside of proceeds of bonds or other moneys at the time of the delivery of such bonds. The Pledged Revenues are hereby determined by the Corporate Authorities to provide in each year Operation and Maintenance Expenses, depreciation and reserve requirements and an amount not less than 1.25 times debt service (as defined in Section 3 of the Debt Reform Act) of all of the Bonds. The determination of the sufficiency of the Pledged Revenues shall be and is hereby expected to be supported by reference to the most recent audit of the Issuer, which is for a Fiscal Year ending not earlier than 18 months previous to the time of the issuance of the Alternate Bonds. If for any reason such audit does not adequately show the sufficiency of such Pledged Revenues, or if such Pledged Revenues are shown to be insufficient, then the determination of sufficiency shall be supported by the “report” of an independent accountant or feasibility analyst, the latter having a national reputation for expertise in such matters, demonstrating the sufficiency of such Pledged Revenues and explaining, if appropriate, by what means the Pledged Revenues will be greater than as shown in the audit. Whenever the sufficiency of Pledged Revenues is demonstrated by reference to higher rates or charges and fees for the Enterprise Revenues (with respect to the use of the Hospital Facilities from which the Enterprise Revenues are derived), such higher rates or charges and fees with respect to the use of the services of the Hospital Facilities shall have been properly imposed by an ordinance adopted prior to the time of delivery of the Bonds. Section 9. Form of Bonds. The form and tenor of the Bond shall be substantially as follows, all blanks to be filled in properly prior to delivery: - 14 - 45107559.5/164133.00001 Page 47 of 80 REGISTERED REGISTERED NO._________ $_________ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF WHITESIDE CITY OF STERLING GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2026 Dated Date Interest Rate Maturity Date CUSIP _______, 20__ _____% November 1, 20__ 859332 ___ Registered Owner: CEDE & CO. Principal Amount: KNOW ALL BY THESE PRESENTS that the City of Sterling, Whiteside County, Illinois (the “Issuer”), a non-home rule unit situated in the County of Whiteside, in the State of Illinois, hereby acknowledges itself indebted and for value received hereby promises to pay to the Registered Owner identified above, or registered assigns, the Principal Amount set forth above on the Maturity Date specified above, and to pay interest on such Principal Amount from the Dated Date hereof, or from the most recent interest payment date to which interest has been paid, at the Interest Rate per annum set forth above, computed on the basis of a 360-day year consisting of twelve 30-day months and payable in lawful money of the United States of America semiannually on May 1 and November 1 in each year, commencing _________, 20___, until the Principal Amount hereof shall have been paid, by check or draft mailed to the Registered Owner of record hereof as of the close of business on the last day (whether or not a business day) of the calendar month next preceding each interest payment date, at the address of such Registered Owner appearing on the registration books maintained for such purpose at the office maintained for such purpose by ____________, ________, ________, as Bond Registrar (including its successors, the “Bond Registrar”). This Bond, as to principal and premium, if any, when due, will be payable in lawful money of the United States of America upon presentation and surrender of this Bond at the designated payment office of ____________, ________, ________, as Paying Agent (including its successors, the “Paying Agent”). Although it is expected, and has been certified, that the Bonds are to be paid ratably and equally with the City’s outstanding Taxable General Obligation Bonds (Alternate Revenue Source), Series 2021A, and General Obligation Bonds (Alternate Revenue Source), Series 2021B, from the receipts derived by the Issuer from Pledged Revenues (as defined in the hereinafter defined Bond Ordinance) derived from the Issuer’s operation and maintenance of its hospital facilities (the “Hospital Facilities”) (as each term is defined in the hereinafter defined Bond Ordinance), which Pledged Revenues are pledged to the payment thereof, the full faith and credit of the Issuer, including the power to levy taxes without limit as to rate or amount, - 15 - 45107559.5/164133.00001 Page 48 of 80 are irrevocably pledged for the punctual payment of the principal of and interest on this Bond and each Bond of the series of which it is a part, according to the terms thereof. This Bond is one of a series of Bonds issued in the aggregate principal amount of $________, which are all of like tenor, except as to maturity, interest rate and right of redemption, and which are authorized and issued under and pursuant to the Constitution and laws of the State of Illinois, including the Local Government Debt Reform Act of the State of Illinois (Section 350/1 et seq. of Chapter 30 of the Illinois Compiled Statutes, in connection with “alternate bonds”, as supplemented and amended), the Division 23 of Article 11 of the Illinois Municipal Code (Section 5/11-23 et seq. of Chapter 65 of the Illinois Compiled Statutes, as supplemented and amended), and pursuant to and in accordance with Ordinance No. _________, adopted by the City Council of the Issuer on January 5, 2026, and entitled: “AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $41,950,000 GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2026 OF THE CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS, PROVIDING THE DETAILS OF SUCH BONDS AND FOR AN ALTERNATE REVENUE SOURCE AND THE LEVY OF DIRECT ANNUAL TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SUCH BONDS, AND RELATED MATTERS” (with respect to which undefined terms herein shall have the meanings therein, the “Bond Ordinance”). The Bonds are issued to (i) finance the costs of various capital improvement projects in the City for the Hospital Facilities (the “Project”) and (ii) pay costs of issuance of the Bonds, all as more fully described in the Bond Ordinance. The Bonds maturing on and after November 1, 20__ shall be subject to redemption prior to maturity on November 1, 20__ and thereafter in whole or in part on any date, in any order of maturity specified by the City at a redemption price equal to the principal amount to be so redeemed, plus accrued interest to the date fixed for redemption In the event of the redemption of less than all the Bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an authorized integral multiple thereof, and the Bond Registrar shall assign to each Bond of such maturity a distinctive number for each $5,000 principal amount of such Bond and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. The Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on the redemption date, together with interest to such redemption date, prior to giving any notice of redemption. Notice of the redemption of Bonds shall be given by first class mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for such redemption to the registered owners of Bonds to be redeemed at their last addresses appearing on the registration books therefor, as provided in the Bond Ordinance. The Bonds or portions thereof specified in such notice shall become due and payable at the redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the Bonds or portions thereof to be redeemed, together with interest to the redemption date, remain on deposit with the - 16 - 45107559.5/164133.00001 Page 49 of 80 Paying Agent, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner), then from and after the redemption date interest on such Bonds or portions thereof shall cease to accrue and become payable. If there shall be drawn for redemption less than all of a Bond, the Issuer shall execute and the Bond Registrar shall authenticate and deliver, upon the surrender of such Bond, without charge to the registered owner thereof, for the unredeemed balance of the Bond so surrendered, Bonds of like maturity and of the denomination of $5,000 or any authorized integral multiple thereof. This Bond is transferable only upon the registration books therefor by the Registered Owner hereof in person, or by such Registered Owner’s attorney duly authorized in writing, upon surrender hereof at the principal office of the Bond Registrar together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the Registered Owner or by such Registered Owner’s duly authorized attorney, and thereupon a new registered Bond or Bonds, in the denominations of $5,000 or any authorized integral multiple thereof and of the same aggregate principal amount as this Bond shall be issued to the transferee in exchange therefor. In like manner, this Bond may be exchanged for an equal aggregate principal amount of Bonds of any authorized denomination. The Bond Registrar shall not be required to exchange or transfer any Bond during the period from the fifteenth (15th) day (whether or not a business day) of the calendar month next preceding any interest payment date to such interest payment date or during a period of fifteen (15) days next preceding the mailing of a notice of redemption which could designate all or a part of any Bond for redemption or after such mailing. The Issuer or the Bond Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this Bond. No other charge shall be made for the privilege of making such transfer or exchange. The Issuer, the Paying Agent and the Bond Registrar may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal, premium, if any, and interest due hereon and for all other purposes whatsoever, and all such payments so made to such Registered Owner or upon such Registered Owner’s order shall be valid and effectual to satisfy and discharge the liability upon this Bond to the extent of the sum or sums so paid, and neither the Issuer nor the Paying Agent or the Bond Registrar shall be affected by any notice to the contrary. No recourse shall be had for the payment of any Bonds against any member of the Issuer’s Corporate Authorities or any officer or employee of the Issuer (past, present or future) who executes any Bonds, or on any other basis. The Issuer may remove the Bond Registrar or Paying Agent as provided in the Bond Ordinance. This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. The Issuer, the Bond Registrar, and the Paying Agent may deem and treat the registered owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account - 17 - 45107559.5/164133.00001 Page 50 of 80 of principal hereof and interest due hereon and for all other purposes, and the Issuer, the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary. It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this Bond in order to make it a legal, valid and binding general obligation of the Issuer have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the series of Bonds of which this Bond is one, together with all other indebtedness of the Issuer, is within every debt or other limit prescribed by law. - 18 - 45107559.5/164133.00001 Page 51 of 80  IN WITNESS WHEREOF, the City of Sterling, Whiteside County, Illinois, in Whiteside County, Illinois, has caused this Bond to be executed in its name and on its behalf by the manual or duly authorized facsimile signature of its Mayor, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon and attested by the manual or duly authorized facsimile signature of its City Clerk, all as of the Dated Date set forth above. (SEAL) CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS Attest: ________________________________ _______________________________________ City Clerk Mayor CERTIFICATE OF AUTHENTICATION Dated:____________________ This Bond is one of the General Obligation Bonds (Alternate Revenue Source), Series 2026, described in the within mentioned Bond Ordinance. _________________________________ By:____________________________________ Its _______________________ Bond Registrar _____________________ and Paying Agent: _______________, ___________ ASSIGNMENT For value received the undersigned sells, assigns and transfers unto ___________ [Name, Address and Social Security Number or FEIN of Assignee] the within Bond and hereby irrevocably constitutes and appoints _________________________ _________________ attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated _________________________ Signature Signature Guarantee: NOTICE: The signature on this assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. - 19 - 45107559.5/164133.00001 Page 52 of 80  Section 10. Treatment of Bonds as Debt. The Bonds are to be payable from the Pledged Revenues and shall not constitute an indebtedness of the Issuer within the meaning of any constitutional or statutory limitation, unless the Pledged Taxes shall have been extended pursuant to the general obligation, full faith and credit promise supporting the Bonds, as set forth in Section 13 hereof, in which case the amount of the Alternate Bonds then Outstanding shall be included in the computation of indebtedness of the Issuer for purposes of all statutory provisions or limitations until such time as an audit of the Issuer shall show that the Bonds have been paid from the Pledged Revenues for the Alternate Bonds for a complete Fiscal Year, in accordance with Applicable Law. Section 11. Hospital Fund. The Hospital Facilities shall continue to be operated on a Fiscal Year basis. All of the Enterprise Revenues shall be set aside as collected and be deposited into a separate fund to be designated or continued, as the case may be, as the Hospital Fund (the “Fund”). Such Fund shall constitute a trust fund for the purpose of carrying out the covenants, terms, and conditions of this Ordinance, and shall be used only in paying Operation and Maintenance Expenses, providing an adequate depreciation fund, paying the principal of and interest on all revenue bonds of the Issuer which by their terms are payable from the Enterprise Revenues derived from the Fund, and providing for the establishment of and expenditure from the respective accounts as described in this Ordinance. In the Fund, there shall be and there are hereby created and established, or continued, as applicable, as appropriate, the separate accounts known as (with separate subaccounts for each series of Bonds, as applicable): the “Operation and Maintenance Account”, the “Senior Bond and Interest Account”, the “Senior Bond Reserve Account” (within which there shall be a “Senior Debt Service Account” for the Bonds), the “Junior Bond and Interest Account”, the “Junior Bond Reserve Account” (within which there may be a “Junior Debt Service Account”), the “Depreciation Account”, and the “Surplus Account”, to which there shall be credited on a given day of each month as selected by the Treasurer of the Issuer, without any further official action or direction, in the order in which such accounts are hereinafter mentioned, from Enterprise Revenues, to be held in such Fund, in accordance with the following provisions: A. Operation and Maintenance Account There shall be credited to the Operation and Maintenance Account an amount sufficient, when added to the amount then on deposit in such Account, to establish a balance to an amount not less than the amount necessary to pay Operation and Maintenance Expenses for the Hospital Facilities for the then current and next month and up to the time of the next monthly accounting for moneys and crediting to accounts. Amounts in such Account shall be used to pay such Operation and Maintenance Expenses. B. Senior Bond and Interest Account Upon issuance of the Bonds, the Issuer shall deposit or credit a sufficient amount from funds on hand to pay first interest due, as provided in a Bond Order. There next shall be credited to the Senior Bond and Interest Account and held, in cash and investments, a fractional amount of - 20 - 45107559.5/164133.00001 Page 53 of 80 the interest becoming due on the next succeeding interest payment date on all Outstanding Senior Bonds (including the Outstanding Bonds) payable from such Account and also a fractional amount of the principal becoming due or subject to mandatory redemption on the next succeeding principal maturity or mandatory redemption date of all of the Outstanding Senior Bonds (including the Outstanding Bonds) payable from such Account until there shall have been accumulated and held, in cash and investments, in the Senior Bond and Interest Account on or before the month preceding such maturity date of interest or maturity or mandatory redemption date of principal, an amount sufficient to pay such principal or interest, or both. In computing the fractional amount to be set aside each month in the Senior Bond and Interest Account, the fraction shall be so computed that a sufficient amount will be set aside in said Account and will be available for the prompt payment of such principal of and interest on all Outstanding Senior Bonds payable from such Account and shall be not less than 1/6 of the interest becoming due on the next succeeding interest payment date and not less than 1/12 of the principal becoming due or subject to mandatory redemption on the next succeeding principal payment or mandatory redemption date on all Outstanding Senior Bonds payable from such Account until there is sufficient money in such Account to pay such principal or interest, or both. Upon issuance of the Bonds, accrued interest from the sale of the Bonds shall be deposited into such Account and used to pay first interest due on the Bonds. All moneys in such Account shall be used only for the purpose of paying interest on and principal of such Outstanding Senior Bonds. Such moneys as are sufficient to make payments of principal of and interest on such Bonds when due, along with any fees then due, shall be transferred to the Paying Agent not less than five (5) days prior to the pertinent principal or interest payment date. C. Senior Bond Reserve Account At the time of delivery of the Bonds, there shall be deposited to the Senior Bond Reserve Account a sum sufficient to establish to the credit thereof and on deposit therein an amount equal to Maximum Annual Debt Service. The funds of such Senior Bond Reserve Account shall be used solely to pay principal of or interest becoming due or subject to mandatory redemption on any Bonds, Prior Bonds and Parity Bonds then outstanding whenever funds are not available in the Senior Bond and Interest Account therefor, and for that purpose there shall be transferred promptly from the Senior Bond Reserve Account to the Senior Bond and Interest Account, as applicable, not less than five (5) days prior to the maturity or mandatory redemption of principal of and interest on any such Bonds a sum which, together with the funds then on hand in the Bond and Interest Account shall be sufficient to meet such principal and interest becoming due or subject to mandatory redemption. At any time that the amount on deposit in and to the credit of the Senior Bond Reserve Account is less than an amount equal to Maximum Annual Debt Service, whether by withdrawal or investment loss or otherwise, the City covenants to replenish the Senior Bond Reserve Account by credits to such Account in each month at the rate of one-twelfth of the amount of such difference - 21 - 45107559.5/164133.00001 Page 54 of 80 per month or in the amount of $5,000, whichever is greater, until the amount on deposit in and to the credit of the Senior Bond Reserve Account equals Maximum Annual Debt Service. Moneys credited to the Senior Bond Reserve Account shall be used solely to pay principal of or interest on the Bonds, Prior Bonds or Parity Bonds at any time when there are insufficient funds available in the Senior Bond and Interest Account to pay such principal and interest as the same become due, whether at maturity or pursuant to a mandatory sinking fund redemption. Upon the issuance by the City of any Parity Bonds, the City covenants and warranties that it will immediately deposit to the Senior Bond Reserve Account an amount sufficient to establish a balance to the credit of and on deposit in the Senior Bond Reserve Account equal to Maximum Annual Debt Service; provided, however, that Maximum Annual Debt Service shall be calculated by including any such Parity Bonds and further provided, however, that amounts on deposit in and to the credit of the Senior Bond Reserve Account immediately following such deposit shall be deemed available for the payment of principal of and interest on such Parity Bonds at their last stated maturity. Whenever there is on deposit in the Senior Bond Reserve Account an amount in excess of Maximum Annual Debt Service, the excess may be withdrawn and transferred to any other Account or Accounts in the Fund as the City may in its sole discretion designate. As the time of delivery of the Bonds, there shall be deposited to the Senior Bond Reserve account an amount equal to Maximum Annual Debt Service totaling the amount to be set forth in the Bond Order. D. Junior Bond and Interest Account There next shall be credited to the Junior Bond and Interest Account and held, in cash and investments, a fractional amount of the interest becoming due on the next succeeding interest payment date on all Outstanding Junior Bonds, if any, payable from such Account and also a fractional amount of the principal becoming due or subject to mandatory redemption on the next succeeding principal maturity or mandatory redemption date of all of the Outstanding Junior Bonds, if any, payable from such Account until there shall have been accumulated and held, in cash and investments, in the Junior Bond and Interest Account on or before the month preceding such maturity date of interest or maturity or mandatory redemption date of principal, an amount sufficient to pay such principal or interest, or both. All moneys in such Account shall be used only for the purpose of paying interest on and principal of such Outstanding Junior Bonds, if any. E. Junior Bond Reserve Account There shall next be credited to the Junior Bond Reserve Account and held, in cash and investments or as otherwise provided, such amount or amounts at such times as may be required in the applicable ordinance or ordinances by which Outstanding Junior Bonds are authorized and issued. Amounts to the credit of the Junior Bond Reserve Account shall be used to pay principal of or interest on the Outstanding Junior Bonds as they may secure at any time when there are - 22 - 45107559.5/164133.00001 Page 55 of 80 insufficient funds available in the Junior Bond and Interest Account to pay the same as may be provided in the applicable ordinances and shall be transferred to said Account for said purpose. F. Depreciation Account There shall be deposited in and credited to the Depreciation Account such amounts as the Corporate Authorities from time to time direct. Amounts to the credit of the Depreciation Account shall be used for (i) the payment of the costs of extraordinary maintenance, necessary repairs and replacements, or contingencies, the payment for which no other funds are available, in order that the Hospital Facilities may at all times be able to render efficient service and, although it is not expected, and (ii) the payment of principal of or interest and applicable premium on any Outstanding bonds payable from the Pledged Revenues of the Hospital Facilities and operations at any time when there are no other funds available for that purpose in order to prevent a default and shall be transferred to the appropriate account or accounts for such purpose. Whenever an amount is withdrawn from the Depreciation Account for the purpose stated in clause (ii) of the preceding paragraph, the Issuer shall have undertaken a rate study of the Hospital Facilities and operations by a qualified accountant, engineer or other finance professional. Each expenditure to be made from the Depreciation Account or the purpose stated in clause (i) of the preceding paragraph shall be made only after an approving vote of the Corporate Authorities has certified that such expenditure is necessary to the continued effective and efficient operation of the Hospital Facilities. G. Surplus Account All moneys remaining in the Fund, after crediting the required amounts to the respective accounts hereinabove provided for, and after making up any deficiency in the accounts described above shall be credited each month to the Surplus Account. Funds in the Surplus Account shall be used, first, to make up any subsequent deficiencies in any of the Accounts hereinabove named; and then, for the remainder of all surplus Enterprise Revenues, at the discretion of the Corporate Authorities, for one or more of the following purposes without any priority among them: 1. For the purpose of constructing or acquiring repairs, replacements, renewals, improvements or extensions to the Hospital Facilities; or 2. For the purpose of calling and redeeming Outstanding bonds payable from Pledged Revenues of the Hospital Facilities; or 3. For the purpose of paying principal and interest and applicable premium on any subordinate bonds or obligations issued for the purpose of acquiring or constructing repairs, replacements, renewals, improvements and extensions to the Hospital Facilities; or 4. For any other lawful purpose, including the authorized purchase of outstanding bonds payable from Pledged Revenues. - 23 - 45107559.5/164133.00001 Page 56 of 80  H. Investments Money to the credit of the funds and accounts under this Section 11 may be invested from time to time by the Issuer’s Treasurer, or other authorized financial officer in Qualified Investments, provided that the Senior or Junior Bond and Interest Account and Pledged Account shall be limited to: (i) interest-bearing bonds, notes, or other direct full faith and credit obligations of the United States, (ii) obligations unconditionally guaranteed as to both principal and interest by the United States of America, or (iii) certificates of deposit or time deposits of any bank or savings and loan association, as defined by Illinois laws, provided such bank or savings and loan association is insured by the Federal Deposit Insurance Corporation or a successor corporation to the Federal Deposit Insurance Corporation and provided further that the principal of such deposits are secured by a pledge of obligations as described in clauses (i) and (ii) above in the full principal amount of such deposits, or otherwise collateralized in such amount and in such manner as may be required by law. Such investments may be sold from time to time by the Treasurer of the Issuer as funds may be needed for the purpose for which such Accounts have been created. All interest on any funds so invested shall be credited to the applicable Account of the Fund and is hereby deemed and allocated as expended with the next expenditure or expenditures of money from the applicable Account of the Fund. Moneys in any of such accounts shall be invested by the Issuer’s Treasurer, if necessary, in investments restricted as to yield, which investments may be in U.S. Treasury Securities – State and Local Government Series, if available, and to such end the Issuer’s Treasurer shall refer to any investment restrictions covenanted by the Issuer or any officer thereof as part of the transcript of proceedings for the issuance of the Bonds, and to appropriate opinions of counsel. I. Account Excesses Any amounts to the credit of the Accounts in excess of the then current requirements therefor may be transferred at any time by the Corporate Authorities to such other Account or Accounts of the same Fund as it may in its sole discretion lawfully designate. J. Bona Fide Debt Service Fund Moneys preliminary to deposit in subsections B. and/or D. above and used to abate taxes under Section 13 below, which if deposited into the Senior or Junior Bond and Interest Account would disqualify the Senior or Junior Bond and Interest Account as a “bona fide debt service fund” shall be held in a separate subaccount (the “Pledged Account”) of the Senior or Junior Bond and Interest Account and the investment yield thereon yield restricted and subject to yield reduction payments. Section 12. Alternate Bond Fund. There is hereby created a special fund of the Issuer, which fund shall be held separate and apart from all other funds and accounts of the Issuer and shall be known as the “Alternate Bond Fund” (the “Bond Fund”). The purpose of the Bond Fund is to provide a fund to receive and disburse the pledged Net Revenues and to receive and disburse Pledged Taxes for any of the Bonds. All payments made with respect to the Bonds from the Enterprise Revenues shall be made directly from the Senior Bond and Interest Account of the Fund. There are hereby created an account in the Bond Fund, designated the “General Account”. - 24 - 45107559.5/164133.00001 Page 57 of 80 All Pledged Taxes shall be deposited to the credit of the General Account. The Bond Fund constitutes a trust fund established for the purpose of carrying out the covenants, terms and conditions imposed upon the Issuer by this Ordinance. Any Pledged Taxes received by the Issuer shall promptly be deposited into the General Account of the Bond Fund. Pledged Taxes on deposit to the credit of the General Account of the Bond Fund shall be fully spent to pay the principal of and interest and premium, if any, on the Bonds for which such taxes were levied and collected prior to use of any moneys on deposit in the Senior Bond and Interest Account of the Fund. Section 13. Alternate Revenue Source; Tax Levy. The Bonds are and constitute Alternate Bonds under the Debt Reform Act, anticipated to be payable from the Pledged Revenues. Under and pursuant to Section 15 of the Debt Reform Act, the full faith and credit of the City are hereby irrevocably pledged to the punctual payment of the principal of, premium, if any, and interest on the Bonds; the Bonds shall be direct and general obligations of the City; and the City shall be obligated to levy ad valorem taxes upon all the taxable property within the City’s corporate limits, for the payment of the Bonds and the interest thereon, without limitation as to rate or amount (such ad valorem taxes being the “Pledged Taxes”). Pledged Revenues are hereby determined by the Corporate Authorities to be sufficient to provide for or pay in each year to final maturity of the Bonds all of the following: (1) Operation and Maintenance Expenses of the enterprise (i.e., the Hospital Facilities), but not including depreciation, (2) the debt service on all Outstanding revenue bonds payable from Pledged Revenues, (3) all amounts required to meet any fund or account requirements with respect to such Outstanding revenue bonds, (4) other contractual or tort liability obligations, if any, payable from such Pledged Revenues, and (5) in each year, an amount not less than 1.25 times debt service of all (i) Alternate Bonds payable from such Pledged Revenues previously issued and outstanding, and (ii) Alternate Bonds payable from such Pledged Revenues proposed to be issued, including the Bonds. The Pledged Revenues shall be and are hereby determined by the Corporate Authorities to provide in each year an amount not less than 1.25 times debt service (as defined in Section 3 of the Debt Reform Act) of Alternate Bonds payable from such revenue sources previously issued and Outstanding, and Alternate Bonds proposed to be issued. Such conditions enumerated need not be met for that amount of debt service (as defined in Section 3 of the Debt Reform Act) provided for by the setting aside of proceeds of bonds or other moneys at the time of the delivery of such bonds. The Pledged Revenues are hereby determined by the Corporate Authorities to provide in each year all amounts required to meet any fund or account requirements with respect to this Ordinance, any contractual or tort liability obligations, if any, payable from Pledged Revenues, and an amount not less than 1.25 times debt service (as defined in Section 3 of the Debt Reform Act) of all of the Outstanding Bonds, payable from such Pledged Revenues. The determination of the sufficiency of the Pledged Revenues is expected to be supported by reference to the most recent audit of the City, which audit is for a Fiscal Year ending not earlier than eighteen (18) months previous to the time of issuance of the Bonds, and not otherwise a “report” under Section 15 of the Debt Reform Act shall be prepared. - 25 - 45107559.5/164133.00001 Page 58 of 80  For the purpose of providing the money required to pay the interest on the Bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature, there shall be levied upon all the taxable property within the City’s corporate limits in each year while any of the Bonds shall be Outstanding, and there is hereby levied, in addition to all other taxes levied by the City, the Pledged Taxes in the amounts for each year not to exceed $3,800,000 for each levy year, commencing not before 2025 (collected in 2026) and ending not later than 2045 (collected in 2046), as shall be specified in the Bond Order. The Pledged Revenues and other moneys on deposit in the Bond Fund shall be applied to pay principal of and interest on the Bonds. Interest or principal coming due at any time when there are insufficient funds on hand from the Pledged Revenues to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the Pledged Revenues or Pledged Taxes herein levied; and when the Pledged Revenues shall have been collected, reimbursement shall be made to said funds in the amount so advanced. Pursuant to Section 13 of the Debt Reform Act, the moneys deposited or to be deposited into the Bond Fund (as defined herein), including any tax receipts derived from the taxes levied pursuant to this Ordinance, are pledged as security for the payment of the Bonds. While any Bonds remain outstanding and unpaid, the tax levies to be made as provided by this Ordinance shall be for the sole benefit of the owners of the outstanding Bonds and such owners shall have and are granted a security interest in, and a lien upon, all rights, claims and interests of the City arising pursuant to those levies and all present and future proceeds of such levies. The security interest in and lien upon those rights, claims and interests are immediately valid and binding from the time the Bonds are issued, and shall immediately attach to (a) the tax receipts wherever held, (b) amounts held in the Bond Fund and other funds pledged for the benefit of holders of the Bonds, and (c) those rights, claims and interests pledged hereby, without any physical delivery or further act and the lien of such pledge shall be immediately valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the City or against the funds, rights, claims or interests pledged hereby irrespective of whether such parties have notice thereof. The pledge is an agreement between the City and the bondholders to provide security for the Bonds in addition to any statutory lien. Section 14. Filing with County Clerk. Promptly, as soon as this Ordinance becomes effective, a copy hereof, certified by the County Clerk, shall be filed with the office of the County Clerk; and the County Clerk shall in and for each of said years ascertain the rate percent required to produce the aggregate Pledged Taxes hereinbefore provided to be levied in each of said years and subject to abatement as provided in Section 14; and the County Clerk shall extend the same for collection on the tax books in connection with other taxes levied in said years in and by the City for general purposes of the City; and, subject to abatement as stated hereinabove, in said years such annual tax shall be levied and collected by and for and on behalf of the City in like manner as taxes for general purposes for said years are levied and collected, and in addition to and in excess of all other taxes. - 26 - 45107559.5/164133.00001 Page 59 of 80  Section 15. Tax Abatement. The City covenants and agrees with the Underwriter and registered owners of the Bonds that so long as any of the Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to levy and collect the Pledged Taxes, unless and to the extent there then shall be moneys irrevocably on deposit therefor in the applicable debt service account or accounts established under the Bond Ordinance and in accordance with the Bond Ordinance. The City and its officers will comply with all present and future applicable laws in order to assure that the Pledged Taxes may be levied, extended, and collected as provided in this Ordinance and deposited into the Bond Fund. In the event that funds from any lawful source may be made available for the purpose of paying any principal of or interest on the Bonds so as to enable the abatement of the Pledged Taxes, but in no event prior to the full funding of the Senior Bond and Interest Account, the Corporate Authorities shall, by proper proceedings, direct the deposit of such other funds into the Bond Fund, and further shall direct the abatement of the Pledged Taxes by the amount so deposited. A certified copy or other notification of any such proceedings abating taxes may then be filed with the County Clerk of the County of Whiteside, Illinois (the “County Clerk”) in a timely manner to effect such abatement. Section 16. Pledged Revenues; General Covenants. The Issuer covenants and agrees with the registered owners of the Bonds, so long as any such Bonds remain Outstanding, as follows: A. The Bonds are Senior Bonds, which includes that the Bonds are senior to all bonds payable from Net Revenues. The Issuer pledges the Enterprise Revenues to the payment of the Bonds payable from such Enterprise Revenues as hereinabove provided, after provision for payment of Operation and Maintenance Expenses, and required credits to accounts of the Fund having a lien on such Enterprise Revenues prior to the lien of the Bonds, and the Corporate Authorities covenant and agree to provide for, collect and apply Enterprise Revenues to the payment of the Bonds as hereinabove provided and the provision of not less than an additional .25 times debt service on the Bonds, provided however, that the coverage factor solely from Net Revenues shall be at least 100%. The determination of the sufficiency of the Pledged Revenues pursuant to this subsection A. shall be supported by reference to the most recent audit of the Issuer, and the reference to and acceptance of such audit by the Corporate Authorities shall be conclusive evidence that the conditions of Section 15 of the Debt Reform Act have been met. B. The Issuer will punctually pay or cause to be paid from the Senior Bond and Interest Account and from the General Account of the Bond Fund the principal of and interest on the Bonds in strict conformity with the terms of the Bonds and this Ordinance, and it will faithfully observe and perform all of the conditions, covenants and requirements thereof and hereof. C. The Issuer will pay and discharge, or cause to be paid and discharged, from the Senior Bond and Interest Account or the General Account of the Bond Fund any and all lawful claims which, if unpaid, might become a lien or charge upon the Pledged Revenues, or any part thereof, or upon any funds in the hands of the Paying Agent, or which might impair the security of the Bonds. Nothing herein contained shall require the Issuer to make any such payment so long as the Issuer in good faith shall contest the validity of such claims. - 27 - 45107559.5/164133.00001 Page 60 of 80  D. The Issuer will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Issuer, in which complete and correct entries shall be made of all transactions relating to the Project, the Hospital Facilities, the Pledged Revenues, the Fund and the Bond Fund. E. The Issuer will preserve and protect the security of the Bonds and the rights of the registered owners of the Bonds and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the Issuer, to the extent lawful the Bonds shall be incontestable by the Issuer. F. The Issuer will adopt, make, execute and deliver any and all such further ordinances, resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention of, or to facilitate the performance of, this Ordinance, and for the better assuring and confirming unto the owners of the Bonds of the rights and benefits in this Ordinance. G. As long as any of the Bonds are Outstanding, the Issuer will continue to deposit and apply the Pledged Revenues as provided herein and, if applicable, the Pledged Taxes to the General Account of the Bond Fund. The Issuer covenants and agrees with the purchasers of the Bonds and with the owners thereof that so long as any of the Bonds remain Outstanding, the Issuer will take no action or fail to take any action which in any way would adversely affect the ability of the Issuer to levy the Pledged Taxes and to collect and to segregate the Pledged Revenues according to this Ordinance. The Issuer and its officers will comply with all present and future applicable laws in order to assure that the Pledged Taxes can be levied and extended and that the Pledged Revenues and the Pledged Taxes, as required, shall may be collected and deposited into the Fund and to the credit of the respective Accounts thereof and the Bond Fund, respectively, as provided herein. H. Scheduled debt service on the Bonds shall be and forever remain until paid or defeased the general obligation of the Issuer, for the payment of which its full faith and credit are pledged, and shall be payable, in addition from the Pledged Revenues, as herein provided, from the levy of the Pledged Taxes as provided in the Debt Reform Act. I. The Issuer will maintain the Hospital Facilities in good repair and working order, will operate the same efficiently and faithfully, and will punctually perform all duties with respect thereto required by State and Federal law. J. The Issuer will establish and maintain at all times reasonable fees, charges and rates for the use and service of the Hospital Facilities and will provide for the collection thereof and the segregation and application of the Enterprise Revenues in the manner provided by this Ordinance, sufficient at all times, to pay for Operation and Maintenance Expenses, to provide an adequate depreciation fund, to pay the principal of and interest on all revenue bonds of the Issuer which by their terms are payable from the Enterprise Revenues thereof, according to their respective terms, including coverage for the Bonds of at least 125% from Enterprise Revenues, and to provide for the creation and maintenance and funding of the respective accounts as provided in Section 11 of this Ordinance. It is hereby expressly provided that the pledge and establishment of rates or charges for use of the Hospital Facilities shall constitute a continuing obligation of the Issuer with - 28 - 45107559.5/164133.00001 Page 61 of 80 respect to such establishment and to the extent lawful a continuing appropriation of the amounts received. K. There shall be charged against all users of the Hospital Facilities, including the Issuer, such rates and amounts for services as shall be adequate to meet the requirements of this Ordinance. Charges for services rendered the Issuer shall be made against the Issuer, and payment for the same shall be made monthly from the corporate funds into the Fund hereunder as revenues derived from the operation of such Hospital Facilities. L. Within six (6) months following the close of each Fiscal Year, the Issuer will cause the books and accounts of the Fund and the Bond Fund to be audited by independent certified public accountants in accordance with appropriate audit standards, which audit shall include comments on the Issuer’s compliance with this Ordinance. Such audit will be available for inspection by the owners of any of the Bonds. M. The Issuer will carry insurance on its Hospital Facilities of the kinds and in the amounts which are usually carried by private parties operating similar properties, covering such risks as shall be recommended by a competent consulting engineer or insurance consultant employed by the Issuer for the purpose of making such recommendations. All moneys received for loss under such insurance policies shall be deposited in a separate subaccount of the Depreciation Account and used in making good the loss or damage in respect of which they were paid, either by repairing the property damaged or making replacement of the property destroyed, and provision for making good such loss or damage shall be made within ninety (90) days from the date of the loss. The payment of premiums for all insurance policies required under the provisions of this covenant in connection with the Hospital Facilities shall be considered an Operation and Maintenance Expense. N. The owner of any Bond may proceed by civil action to compel performance of all duties required by law and this Ordinance, including the making and collecting of sufficient charges and rates for the service supplied by the Hospital Facilities and the application of the income and revenue therefrom. Section 17. Parity Bonds; Additional Bonds. A. Parity Bonds. The Bonds are payable from ratably and equally with the City’s outstanding Taxable General Obligation Bonds (Alternate Revenue Source), Series 2021A and General Obligation Bonds (Alternate Revenue Source), Series 2021B. The Issuer reserves the right to issue Parity Bonds without limit provided that the Pledged Revenues as determined or as adjusted as hereinbelow set out shall be sufficient to provide for or pay all of the following: (a) Operation and Maintenance Expenses (but not including depreciation); (b) debt service on all Outstanding bonds with respect to the Fund computed immediately after the issuance of the proposed Parity Bonds; (c) all amounts required to meet any fund or account requirements with respect to such Outstanding bonds; (d) other contractual or tort liability obligations then due and payable, if any; and (e) an additional amount not less than 0.25 times debt service on such of the Alternate Bonds as shall - 29 - 45107559.5/164133.00001 Page 62 of 80 remain Outstanding bonds after the issuance of the proposed Parity Bonds. Such sufficiency shall be calculated for each year to the final maturity of such Alternate Bonds which shall remain Outstanding after the issuance of the proposed Parity Bonds. The determination of the sufficiency of Pledged Revenues shall be supported by reference to the Issuer’s most recent audit, including of the Fund, which audit shall be for a Fiscal Year ending not earlier than eighteen (18) months previous to the time of issuance of the proposed Parity Bonds. If such audit shows the Pledged Revenues to be insufficient, then the determination of sufficiency may be made in either of the following two ways: 1. The Enterprise Revenues may be adjusted in the event there has been an increase in Fund deposits from those in effect for the Fiscal Year of such audit (if such rate increase is still in effect at the time of the issuance of such proposed Parity Bonds) to show such Enterprise Revenues as they would have been if such increased rates had been in effect during all of such Fiscal Year. Any adjusted statement of Pledged Revenues shall be evidenced by the certificate of an independent consulting engineer, an independent certified public accountant or an independent financial consultant employed for such purpose. 2. The determination of sufficiency of the Pledged Revenues may be supported by the report of an independent accountant or feasibility analyst having a national reputation for expertise in such matters, demonstrating the sufficiency of the Pledged Revenues and explaining by what means they will be greater than as shown in the audit. The reference to and acceptance of an audit, an adjusted statement of the Enterprise Revenues, or a report, as the case may be, and the determination of the Corporate Authorities of the sufficiency of the Pledged Revenues shall be conclusive evidence that the conditions of this Section 16. A. have been met and that the Parity Bonds are properly issued hereunder; and no right to challenge such determination is granted to the registered owners of the Bonds. B. Additional Bonds. The Issuer reserves the right to issue Additional Bonds from time to time payable from the Enterprise Revenues, and any such Additional Bonds shall share ratably and equally in the Enterprise Revenues with the Bonds; provided, however, that no Additional Bonds shall be issued except in accordance with the provisions of the Debt Reform Act. Section 18. Defeasance. Any of the Bonds which are no longer Outstanding Bonds as defined in this Ordinance shall cease to have any lien on or right to receive or be paid from Pledged Revenues and shall no longer have the benefits of any covenant for the registered owners of Outstanding Bonds as set forth herein as such relates to lien and security of the Bonds in the Pledged Revenues. Section 19. Bond Proceeds Account. The proceeds derived from the sale of the Bonds shall be used as follows: - 30 - 45107559.5/164133.00001 Page 63 of 80  Accrued interest (and an amount of funds on hand to pay interest as provided in a Bond Order), shall be credited to the Senior Bond and Interest Account, as set forth above in Section 11.B., and applied to pay first interest due on the Bonds. All of the remaining proceeds derived from the sale of the Bonds shall be deposited in the “Bond Proceeds Account (2026)” (the “Bond Proceeds Account”), which is hereby established as a special account of the Issuer within which there shall be a Project Subaccount (the “Project Subaccount” for Hospital Facilities related facilities, improvement and costs). Moneys in the Bond Proceeds Account shall be used for the purposes specified in Section 3 of this Ordinance (that is, as applicable, the costs of financing the Project) and for the payment of costs of issuance of the Bonds but may hereafter be reallocated and used for other lawful purposes in accordance with the Enterprise Revenue Act. Before any such reallocation shall be made, there shall be filed with the City Clerk of the Issuer an opinion of nationally recognized Bond counsel (“Bond Counsel”) to the effect that such reappropriation is authorized and will not adversely affect the tax-exempt status of the Bonds under Section 103 of the Code. Except for funding authorized issuance costs, moneys in the Bond Proceeds Account shall be withdrawn from time to time as needed for the payment of costs and expenses incurred or advanced by the Issuer in connection with the Hospital Facilities and for paying the fees and expenses incidental thereto. Moneys shall be withdrawn from the depositary in connection with such funds from time to time to the Issuer’s Treasurer or other appropriate financial officer of the Issuer of the following (except that this shall not apply to Bond issuance costs): A duplicate copy of the order signed by the Mayor and the City Clerk or such other officer(s) as may from time to time be by law authorized to sign and countersign orders of the Issuer, stating specifically the purpose for which the order is issued and indicating that the payment for which the order is issued has been approved by the Corporate Authorities. Within sixty (60) days after completion of the Project, the Mayor shall certify to the Corporate Authorities the fact that the Project has been completed, and after all costs have been paid, the Mayor shall execute a completion certificate and file it in the records of the Issuer certifying that the Project has been completed and that all costs have been paid; and, if at that time any funds remain in the Bond Proceeds Account, the same shall be applied for other improvements to the Hospital Facilities or transmitted by the depositary to the Treasurer, or other appropriate financial officer of the Issuer, and such officer shall credit such funds to the Senior Bond and Interest Account, as the Corporate Authorities direct. If not applied to qualifying Hospital Facilities improvements within 90 days of filing such completion certificate, such funds shall be transferred to the Senior Bond and Interest Account. Section 20. Arbitrage Rebate. The Issuer shall comply with the provisions of Section 148(f) of the Code, relating to the rebate of certain investment earnings at periodic intervals to the United States of America to preserve the exclusion from gross income for federal income tax purposes of interest on the Bonds under Section 103 of the Code. (a) Rebate. There is hereby authorized to be created a separate and special account known as the “Rebate Account”, into which there shall be deposited as necessary investment earnings to the extent required so as to maintain the tax-exempt status of the interest on the Bonds - 31 - 45107559.5/164133.00001 Page 64 of 80 under Section 148(f) of the Code. All rebates, special impositions or taxes for such purpose payable to the United States (Internal Revenue Service) shall be payable from applicable excess earnings or other sources which are to be deposited into the Rebate Account. (b) Yield Reduction Payments. Yield Reduction Payments in connection with the Pledged Subaccount under Section 11.J. above, and otherwise herein, shall be determined and paid, as the case may be, in a manner similar to arbitrage rebate under this Section 19. Unless the Issuer shall have requested and received an approving written opinion of Bond Counsel to the contrary, moneys on deposit or credited to the Pledged Account shall be restricted as to yield to the yield on the Bonds, subject to “yield reduction payments,” as applicable, under Section 1.148-5(e) of the Income Tax Regulations, which the Issuer shall determine and, as applicable, pay in the same manner as arbitrage rebate under (a) above. Section 21. Investment Regulations. All investments shall be in Qualified Investments, unless otherwise expressly herein provided, subject to any limitations and restrictions related to an Insurer’s Policy. No investment shall be made of any moneys in the Senior Bond and Interest Account, the Bond Fund or the Bond Proceeds Account, except in accordance with the tax covenants and other covenants set forth in Section 21 of this Ordinance. All income derived from such investments in respect of moneys or securities in any fund or account, unless otherwise herein expressly required, shall be credited in each case to the fund or account in which such moneys or securities are held. Any moneys in any fund or account that are subject to investment yield restrictions may be invested in United States Treasury Securities, State and Local Government Series, pursuant to the regulations of the United States Treasury Department, Bureau of the Fiscal Service. The Issuer’s Treasurer and agents designated by such officer are hereby authorized to submit on behalf of the Issuer subscriptions for such United States Treasury Securities and to request redemption of such United States Treasury Securities. Section 22. Non-Arbitrage and Tax-Exemption. One purpose of this Section 21 is to set forth various facts regarding the Bonds and to establish the expectations of the Corporate Authorities and the Issuer as to future events regarding the Bonds and the use of the proceeds of the Bonds. The certifications and representations made herein and at the time of the issuance of the Bonds are intended, and may be relied upon, as certifications and expectations described in Section 1.148-0 et seq. of the Income Tax Regulations dealing with arbitrage and rebate (the “Regulations”). The covenants and agreements contained herein and at the time of the issuance of the Bonds are made for the benefit of the registered owners from time to time of the Bonds. The Corporate Authorities and the Issuer agree, certify, covenant and represent as follows: A. The Bonds are being issued to pay the costs of the Project and related costs and expenses, such costs of the Project incurred after 60 days before November 3, 2025, and all of the amounts received upon the sale of the Bonds, plus all investment earnings thereon (the “Proceeds”) are needed for the purpose for which the Bonds are being issued. B. The Issuer has entered into or will within six months from the date of issue of the Bonds enter into, binding contracts or commitments obligating it to spend at least 5% of the - 32 - 45107559.5/164133.00001 Page 65 of 80 proceeds of the Bonds for constructing, acquiring and installing the Project. It is expected that the work of acquiring, constructing and installing the Project will continue to proceed with due diligence to completion reasonably expected to be within 2 years of issuance of the Bonds, but in any event within 3 years, at which time all of the Proceeds will have been spent. C. The Issuer has on hand no funds which could legally and practically be used for the Project which are not pledged, budgeted, earmarked or otherwise necessary to be used for other purposes. Accordingly, no portion of the Proceeds will be used (i) directly or indirectly to replace funds of the Issuer or any agency, department or division thereof that could be used for the Project, or (ii) to replace any proceeds of any prior issuance of obligations by the Issuer. No portion of the Bonds is being issued solely for the purpose of investing the Proceeds at a Yield higher than the Yield on the Bonds. For purposes of this Section, “Yield” means that yield (that is, the discount rate) which when used in computing the present worth of all payments of principal and interest to be paid on an obligation (using semi-annual compounding on the basis of a 360-day year) produces an amount equal to the purchase price of the Bonds, including accrued interest, and the purchase price of the Bonds is equal to the first offering price at which more than 10% of the principal amount of each maturity of the Bonds is sold to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers). D. All net principal proceeds of the Bonds received by the Issuer will be deposited in the Bond Proceeds Account and used to pay costs of the Project and costs of issuance of the Bonds, and any accrued interest and premium received on the delivery of the Bonds will be deposited in the Senior Bond and Interest Account and used to pay the first interest due on the Bonds. Other Project costs, including issuance costs of the Bonds, will be paid directly from other proceeds available to the Issuer or from the Bond Proceeds Account, and no other moneys are expected to be deposited in the Bond Proceeds Account. This Ordinance provides that moneys in the Depreciation Account may be applied to pay debt service on the Bonds in the event there shall be an insufficiency in the Senior Bond and Interest Account. However, due to the expected application of such moneys to pay costs of replacement, repair and extraordinary maintenance of Hospital Facilities, it is unlikely such moneys will be available for such purpose. Interest on and principal of the Bonds will be paid from the Senior Bond and Interest Account and the Bond Fund. No Proceeds will be used more than thirty (30) days after the date of issue of the Bonds for the purpose of paying any principal of or interest on any issue of bonds, notes, certificates or warrants or on any installment contract or other obligation of the Issuer or for the purpose of replacing any funds of the Issuer used for such purpose. E. The Senior Bond and Interest Account and the Bond Fund each is established to achieve a proper matching of revenues and earnings with debt service in each year. Other than any amounts held to pay principal of matured Bonds that have not been presented for payment, it is expected that any moneys deposited in the Senior Bond and Interest Account (but not the Pledged Account) and the Bond Fund will be spent within the 12-month period beginning on the date of deposit therein. Any earnings from the investment of amounts in the Senior Bond and Interest Account and the Bond Fund will be spent within a one-year period beginning on the date of receipt of such investment earnings. Other than any amounts held to pay principal of matured Bonds that have not been presented for payment, it is expected that the Senior Bond and Interest Account and the Bond Fund will be depleted at least once a year, except for a reasonable carryover - 33 - 45107559.5/164133.00001 Page 66 of 80 amount not to exceed the greater of (i) one-year’s earnings on the investment of moneys in the Senior Bond and Interest Account and the Bond Fund, or (ii) in the aggregate one-twelfth (1/12th) of the annual debt service on the Bonds. F. Other than the Senior Bond and Interest Account (including the Pledged Account) and the Bond Fund, no funds or accounts have been or are expected to be established, and no moneys or property have been or are expected to be pledged (no matter where held or the source thereof) which will be available to pay, directly or indirectly, the Bonds or restricted so as to give reasonable assurance of their availability for such purposes. No property of any kind is pledged to secure, or is available to pay, obligations of the Issuer to any credit enhancer or liquidity provider. G. (i) All amounts on deposit in the Bond Proceeds Account, the Senior Bond and Interest Account, the Bond Fund or the Depreciation Account and all Proceeds, no matter in what funds or accounts deposited (“Gross Proceeds”), to the extent not exempted in (ii) below, and all amounts in any fund or account pledged directly or indirectly to the payment of the Bonds which will be available to pay, directly or indirectly, the Bonds or restricted so as to give reasonable assurance of their availability for such purpose contrary to the expectations set forth in (f) above, shall be invested at market prices and at a Yield not in excess of the Yield on the Bonds plus, for amounts in the Bond Proceeds Account after 3 years under (c) below from the date of issuance to finance improvements of Hospital Facilities, 1/8 of 1%. (ii) The following may be invested without Yield restriction: (a) amounts invested in obligations described in Section 103(a) of the Code (but not specified private activity bonds as defined in Section 57(a)(5)(C) of the Code), the interest on which is not includable in the gross income of any registered owner thereof for federal income tax purposes (“Tax-Exempt Obligations”); (b) amounts deposited in the Senior Bond and Interest Account and the Bond Fund that are reasonably expected to be expended within thirteen (13) months from the deposit date and have not been on deposit therein for more than thirteen (13) months; (c) amounts, if any, in the Bond Proceeds Account to be applied to Hospital Facilities improvements prior to the earlier of completion (or abandonment) of such improvements or three (3) years from the date of issue of the Bonds; (d) an amount not to exceed 5% of Bond proceeds; (e) all amounts for the first thirty (30) days after they become Gross Proceeds (e.g., the date of deposit in any fund or account securing the Bonds); and (f) all amounts derived from the investment of the Proceeds for a period of one (1) year from the date received. - 34 - 45107559.5/164133.00001 Page 67 of 80  H. Subject to P. below, once moneys are subject to the Yield limits of G(i) above, such moneys remain Yield restricted until they cease to be Gross Proceeds. I. None of the Proceeds will be used, directly or indirectly, to replace funds which were used in any business carried on by any person other than a state or local governmental unit. J. The payment of the principal of or the interest on the Bonds will not be, directly or indirectly (a) secured by any interest in (i) property used or to be used for a private business use by any person other than a state or local governmental unit, or (ii) payments in respect of such property, or (b) derived from payments (whether or not by or to the Issuer), in respect of property, or borrowed money, used or to be used for a private business use by any person other than a state or local governmental unit. K. None of the Proceeds will be used, directly or indirectly, to make or finance loans to persons other than a state or local governmental unit. L. No user of the Project, other than a state or local government unit will use the Project on any basis other than the same basis as the general public, and no person other than a state or local governmental unit will be a user of the Project as a result of (i) ownership, or (ii) actual or beneficial use pursuant to a lease or a management or incentive payment contract, or (iii) any other similar arrangement. M. Beginning on the fifteenth (15th) day prior to the Bond sale date, the Issuer has not sold or delivered, and will not sell or deliver, (nor will it deliver within fifteen (15) days after the date of issuance of the Bonds) any other obligations pursuant to a common plan of financing, which will be paid out of substantially the same source of funds (or which will have substantially the same claim to be paid out of substantially the same source of funds) as the Bonds or will be paid directly or indirectly from Proceeds. N. No portion of the Project is expected to be sold or otherwise disposed of prior to the last maturity of the Bonds. O. The Issuer has not been notified of any disqualification or proposed disqualification of it by the Internal Revenue Service as a bond issuer which may certify bond issues under the Regulations. P. The Yield restrictions contained in G. above or any other restriction or covenant contained herein need not be observed and may be changed if the Issuer receives an opinion of Bond Counsel to the effect that such non-observance or change will not adversely affect the tax-exempt status of interest on the Bonds to which the Bonds otherwise are entitled. Q. The Issuer acknowledges that any changes in facts or expectations from those set forth herein may result in different Yield restrictions or rebate requirements from those set forth herein and that Bond Counsel should be contacted if such changes do occur. R. The Corporate Authorities have no reason to believe the facts, estimates, circumstances and expectations set forth herein are untrue or incomplete in any material respect. - 35 - 45107559.5/164133.00001 Page 68 of 80 On the basis of such facts, estimates, circumstances and expectations, it is not expected that the Proceeds or any other moneys or property will be used in a manner that will cause the Bonds to be private activity bonds, arbitrage bonds or hedge bonds within the meaning of Sections 141, 148 or 149(g) of the Code, and of applicable regulations. To the best of the knowledge and belief of the Corporate Authorities, such expectations are reasonable, and there are no other facts, estimates and circumstances that would materially change such expectations. S. The Issuer also agrees and covenants with the owners of the Bonds from time to time outstanding that, to the extent possible under Illinois law, it will comply with all present federal tax law and related regulations and with whatever federal tax law is adopted and regulations promulgated in the future which apply to the Bonds and affect the tax-exempt status of tax-exempt Bonds. To the best of the knowledge and belief of the Corporate Authorities, such expectations are reasonable, and there are no other facts, estimates and circumstances that would materially change such expectations. Section 23. Further Assurances and Actions. The Corporate Authorities hereby authorize the officials of the Issuer responsible for issuing the Bonds, the same being the Mayor, City Clerk, Treasurer, to execute and perform, as applicable, the Purchase Agreement, the Arbitrage Agreement and the Undertaking and to make such further filings, covenants, certifications and supplemental agreements as may be necessary to assure that the use of the Project and related proceeds will not cause Bonds to be private activity bonds, arbitrage bonds or hedge bonds and to assure, as to tax-exempt Bonds, that the interest on the Bonds will be excluded from gross income for federal income tax purposes. In connection therewith, the Issuer and the Corporate Authorities further agree: (a) through the officers of the Issuer, to make such further specific covenants, representations as shall be true, correct and complete, and assurances as may be necessary or advisable; (b) to consult with Bond Counsel approving the Bonds and to comply with such advice as may be given; (c) to pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits or yield reduction payments relating to the Bonds; (d) to file such forms, statements, and supporting documents as may be required and in a timely manner; and (e) if deemed necessary or advisable, to employ and pay fiscal agents, financial advisors, attorneys, and other persons to assist the Issuer in such compliance; and (f) to abate Pledged Taxes, as herein authorized. Appropriate officers of the Issuer are authorized to file abatement certifications not inconsistent with and as authorized by this Ordinance. The Bond Purchase Agreement in a form typical to the transactions contemplated by this Ordinance, as the officers of the Issuer executing them shall approve, which approval shall constitute the approval of the Corporate Authorities, shall be and is hereby authorized and approved for execution, delivery and performance. The Issuer covenants that it shall do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, such resolutions and other actions supplemental hereto, and such further acts, agreements, instruments and transfers as may be reasonably required for the authorized abatement of Pledged Taxes to pay the Bonds, the better assuring, transferring, conveying, pledging, assigning and confirming unto the registered owners of the Bonds its interest in the funds pledged hereby to the payment of the principal of, premium, if any, and interest on the Bonds, the application of Bond proceeds, all as herein provided, and with respect to Bonds as tax-exempt. - 36 - 45107559.5/164133.00001 Page 69 of 80  All things done with respect to each Purchase Agreement and by the Issuer’s Mayor, City Clerk, Treasurer, or Attorney, in connection with the issuance and sale of Bonds shall be and are hereby in all respects ratified, confirmed and approved. The Mayor, City Clerk, Treasurer, Attorney and other officials of the Issuer are hereby authorized and directed to do and perform, or cause to be done or performed for or on behalf of the Issuer, each and every thing necessary, as applicable, for the issuance of Bonds, including the proper execution, delivery and performance of a Purchase Agreement, and related instruments and certificates, by the Issuer, the purchase by and delivery of Bonds to or at the direction of the applicable. No elected or appointed officer of the Issuer is in any manner interested, directly or indirectly, in his or her own name or in the name of any other person, association, trust or corporation in the Purchase Agreement. Section 24. Ordinance to Constitute a Contract. The provisions of this Ordinance shall constitute a contract between the Issuer and the owners of the Bonds. Any pledge made in this Ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Issuer shall be for the equal benefit, protection and security of the registered owners of any and all of the Bonds. All of the Bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof except as expressly provided in or pursuant to this Ordinance. This ordinance and the Preliminary Ordinance, together with any ordinance supplemental hereto, shall constitute full authority for the issuance of the Bonds, and to the extent that the provisions thereof conflict with the provisions of any other ordinance or resolution of the Issuer, the provisions of this Ordinance and the Preliminary Ordinance, together with any ordinance supplemental hereto, shall control. Section 25. Severability and No Contest. If any section, paragraph, clause or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Upon the issuance of the Bonds, neither the Bonds nor this Ordinance shall be subject to contest by or in respect of the Issuer. Section 26. Conflict. All ordinances, resolutions or parts thereof in conflict herewith be and the same are hereby superseded to the extent of such conflict and this Ordinance shall be in full force and effect forthwith upon its adoption. Section 27. Effective Date. This ordinance shall become effective immediately upon its passage and approval in the manner provided by law, and, upon it becoming effective and prior to the issuance of the Bonds, a certified copy of this Ordinance, together with any ordinance supplemental hereto, shall be filed with the County Clerk. - 37 - 45107559.5/164133.00001 Page 70 of 80  Upon motion by Alderman _______________, seconded by Alderman _______________, adopted this 5th day of January, 2026, by roll call vote as follows: AYES (Names): NAYS (Names): (SEAL) ATTEST: City Clerk Mayor 45107559.5/164133.00001 Page 71 of 80 STATE OF ILLINOIS ) ) SS COUNTY OF WHITESIDE ) CERTIFICATION OF ORDINANCE I, the undersigned, do hereby certify that I am the duly selected, qualified and acting City Clerk of the City of Sterling, Whiteside County, Illinois (the “Issuer”), and as such official I am the keeper of the records and files of the Issuer and of its City Council (the “Corporate Authorities”). I do further certify that the attached constitutes a full, true and complete excerpt from the proceedings of a meeting of the Corporate Authorities held on the 5th day of January, 2026, insofar as the same relates to the adoption of Ordinance No. _______, entitled: AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $41,950,000 GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2026 OF THE CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS, PROVIDING THE DETAILS OF SUCH BONDS AND FOR AN ALTERNATE REVENUE SOURCE AND THE LEVY OF DIRECT ANNUAL TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SUCH BONDS, AND RELATED MATTERS a true, correct and complete copy of which ordinance (the “Ordinance”) as adopted at such meeting appears in the transcript of the minutes of such meeting and is hereto attached. The Ordinance was adopted and approved by the vote and on the date therein set forth. I do further certify that the deliberations of the Corporate Authorities on the adoption of such Ordinance were taken openly, that the adoption of such Ordinance was duly moved and seconded, that the vote on the adoption of such Ordinance was taken openly and was preceded by a public recital of the nature of the matter being considered and such other information as would inform the public of the business being conducted, that such meeting was held at a specified time and place convenient to the public, that notice of such meeting was duly given to all of the news media requesting such notice, that the agenda for the meeting was duly posted on the City’s website and at the City Hall at least 48 hours prior to the meeting, that such meeting was called and held in strict compliance with the provisions of the open meeting laws of the State of Illinois, as supplemented and amended, and the Illinois Municipal Code, as supplemented and amended, and that the Corporate Authorities have complied with all of the applicable provisions of such open meeting laws and such Code and their procedural rules in the adoption of such Ordinance. IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the City of Sterling, Whiteside County, Illinois, this 5th day of January, 2026. (SEAL) City Clerk 45107559.5/164133.00001 Page 72 of 80 STATE OF ILLINOIS ) ) SS COUNTY OF WHITESIDE ) FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of Whiteside County, Illinois, and as such official I do further certify that on the ____ day of ________, 2026, there was filed in my office a duly certified copy of Ordinance No. ________ entitled: AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $41,950,000 GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2026 OF THE CITY OF STERLING, WHITESIDE COUNTY, ILLINOIS, PROVIDING THE DETAILS OF SUCH BONDS AND FOR AN ALTERNATE REVENUE SOURCE AND THE LEVY OF DIRECT ANNUAL TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SUCH BONDS, AND RELATED MATTERS duly adopted by the Mayor and City Council of the City of Sterling, Whiteside County, Illinois, on 5th day of January, 2026, and that the same has been deposited in the official files and records of my office. IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said County, this ____ day ________, 2026. ______________________________________ County Clerk of Whiteside County, Illinois (SEAL) 45107559.5/164133.00001 Page 73 of 80 City of Sterling CGH Medical Center – Capital Improvement Bonds Presentation prepared for: City of Sterling – City Council A presentation by: Robert P. Vail, Managing Director January 5, 2026 City of Sterling (CGH) | 1 Page 74 of 80  20-Year Bond Buyer Yield Index (20-Year History) -- Same Level as 10/2025 Source: Bloomberg LP City of Sterling (CGH) | 2 Page 75 of 80  BVAL– Illinois G.O. Yield Curve (3-Year Comparison) 12/30/2025 12/30/2024 12/30/2023 Source: Bloomberg LP City of Sterling (CGH) | 3 Page 76 of 80  Preliminary Debt Structure Scenario Coverage at Time of Issuance Based on 4/30/2025 Audited Financials Net Income 2012 2021A 2021B 2026 Combined Total Year Ending Available for G.O. (ARS) Taxable G.O. (ARS) G.O. (ARS) G.O. (ARS) Total Debt Service 30-Apr Debt Service (2) Debt Service(1) Debt Service(1) Debt Service(1) Debt Service(3) Debt Service Coverage 2021 30,642,628 3,377,500 - - - 3,377,500 9.073 2022 30,642,628 3,402,300 1,296,518 691,886 - 5,390,704 5.684 2023 30,642,628 3,396,600 1,389,688 747,500 - 5,533,788 5.537 2024 30,642,628 - 2,223,388 1,332,120 - 3,555,508 8.618 2025 30,642,628 - 2,223,688 1,334,400 - 3,558,088 8.612 2026 30,642,628 - 2,223,838 1,337,000 - 3,560,838 8.605 2027 30,642,628 - 2,223,838 1,333,400 3,167,936 6,725,173 4.556 2028 30,642,628 - 2,226,415 1,333,800 3,167,888 6,728,103 4.554 2029 30,642,628 - 2,226,460 1,333,000 3,171,138 6,730,598 4.553 2030 30,642,628 - 2,226,580 1,336,000 3,171,138 6,733,718 4.551 2031 30,642,628 - 2,224,720 1,332,600 3,167,888 6,725,208 4.556 2032 30,642,628 - 2,225,028 1,333,000 3,171,388 6,729,415 4.554 2033 30,642,628 - 2,223,145 1,337,000 3,171,138 6,731,283 4.552 2034 30,642,628 - 2,223,180 1,334,400 3,167,138 6,724,718 4.557 2035 30,642,628 - 2,224,930 1,335,400 3,169,388 6,729,718 4.553 2036 30,642,628 - 2,222,300 1,334,800 3,167,388 6,724,488 4.557 2037 30,642,628 - 2,221,910 1,332,600 3,171,138 6,725,648 4.556 2038 30,642,628 - 2,223,548 1,333,800 3,170,138 6,727,485 4.555 2039 30,642,628 - 2,222,923 1,333,200 3,169,388 6,725,510 4.556 2040 30,642,628 - 2,224,023 1,335,800 3,168,638 6,728,460 4.554 2041 30,642,628 - 2,222,593 1,336,400 3,167,638 6,726,630 4.555 2042 30,642,628 - 2,223,578 - 3,170,313 5,393,890 5.681 2043 30,642,628 - 2,220,728 - 3,166,425 5,387,153 5.688 2044 30,642,628 - - 3,170,975 3,170,975 9.663 2045 30,642,628 - - 3,168,175 3,168,175 9.672 2046 30,642,628 - - 3,168,025 3,168,025 9.672 2047 30,642,628 - - - - - Totals: 10,176,400 47,163,013 25,458,106 63,383,273 Net Funds: 35,000,000 20,000,000 41,300,000 True Interest Rate: 2.550% 2.29% 4.43% Purpose of Bonds: IMRF Pension Capital Projects Capital Projects (1) Reflects the final debt service payments for the bonds. (2) Net Income Available for Debt Service based on the FY25 Audited Financial Statements. (3) Preliminary, subject to change. Based on preliminary market rates as of December 30, 2025 – includes all estimated costs of issuance. City of Sterling (CGH) | 4 Page 77 of 80 Preliminary Financing Timeline CITY COUNCIL MEETING: Initial presentation of potential CGH Medical Center bonds 1 Monday, October 20, 2025 √ is presented to the Council. CITY COUNCIL MEETING: Authorizing Bond Ordinance is passed - authorizing not to 2 Monday, November 3, 2025 √ exceed dollar amount of bonds, pledged revenues to repay bonds and project description. Bond Counsel publishes the Authorizing Ordinance in the local newspaper. (30 day 3 Friday, November 7, 2025 √ period begins when Ordinance is published) CITY COUNCIL MEETING: City holds Bond Issuance Notification Act (BINA) hearing 4 Monday, December 1, 2025 √ at regularly scheduled Council meeting 5 Tuesday, December 2, 2025 √ First draft of the Preliminary Official Statement (POS) is released for review. 6 Monday, December 8, 2025 √ 30-Day Petition Period Expires. CGH Medical Center, City, Underwriter and Disclosure Counsel conduct Rating call with 7 Tuesday, December 23, 2025 √ S&P and Due Diligence conference call. CITY COUNCIL MEETING: Issuer Passes Parameters Bond Ordinance to set not to 8 Monday, January 5, 2026 exceed parameters for the Bonds 9 Tuesday, January 6, 2026 Rating is received from the S&P and Bond Insurance Quotes are received. 10 Thursday, January 8, 2026 POS is finalized. 11 Friday, January 9, 2026 Underwriter begins pre-marketing the Bonds to investors. Final Pricing of the Bonds. Bond Purchase Agreement is signed and final interest 12 Thursday, January 15, 2026 rates are locked in. 13 Thursday, January 29, 2026 Closing of the Bonds. City of Sterling (CGH) | 5 Page 78 of 80 REGULATORY & COMPLIANCE Until Bernardi is engaged on a particular transaction, the discussions between the Issuer and Bernardi are based solely on general market issues, topics, and other publicly available information and are not to be construed as a recommendation or advice. Bernardi Securities, Inc. is not recommending an action to the municipal entity or obligated person. Bernardi Securities, Inc. is not acting as an advisor to the municipal entity or obligated person and does not owe a fiduciary duty pursuant to Section 15B of the Exchange Act to the municipal entity or obligated person with respect to the information and material contained in this communication. Bernardi Securities, Inc. is acting for its own interests. The municipal entity or obligated person should discuss any information and material contained in this communication with any and all internal or external advisors and experts that the municipal entity or obligated person deems appropriate before acting on this information or material. The SEC believes that a person could rely on the general information exclusion from advice under the Final Rules when providing a municipal entity or obligated person with information that does not involve a recommendation, such as factual information that does not contain subjective assumptions, opinions, or views. Examples of this type of general information include: (a) information regarding a person’s professional qualifications and prior experience (e.g., lists, descriptions, terms, or other information regarding prior experience on completed transactions involving municipal financial products or issuances of municipal securities); (b) general market and financial information (e.g., market statistics regarding issuance activity for municipal securities or current market interest rates or index rates for different types of bonds or categories of credits); (c) information regarding a financial institution’s currently-available investments (e.g., the terms, maturities, and interest rates at which the financial institution offers these investments) or price quotes for investments available for purchase or sale in the market that meet criteria specified by a municipal entity or obligated person; (d) factual information describing various types of debt financing structures (e.g., fixed rate debt, variable rate debt, general obligation debt, debt secured by various types of revenues, or insured debt), including a comparison of the general characteristics, risks, advantages, and disadvantages of these debt financing structures; and (e) factual and educational information regarding various government financing programs and incentives (e.g., programs that promote energy conservation and the use of renewable energy). City of Sterling (CGH) | 6 Page 79 of 80 C O N TA C T I N F O R M AT I O N City of Sterling (CGH) | 7 Page 80 of 80