2021-03 Ordinance Abating the Property Tax Levy for the City of Decatur, Illinois for General Obligation 2020 Series Bonds

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mat-a� LETTER to the DECATUR CITY COUNCIL Finance Department DATE: January 12, 2021 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Gregg D. Zientara, City Treasurer&Director of Finance SUBJECT: Abatement of General Obligation 2020 Series Bond from the 2020 Property Tax Levy SUMMARY RECOMMENDATION: It is recommended the City Council approve the attached ordinance at the January 19, 2021 City Council meeting. BACKGROUND: This action was previously informed to the City Council in letter to the City Council dated December 9, 2020. The City Council adopted Ordinance 2020-166 at the City Council meeting on December 14, 2020 setting the property tax levy for the City of Decatur for assessed value in calendar year 2020 and property tax payable in calendar year 2021. At the same council meeting, certain Ordinances were adopted by the City Council abating certain general obligation bond debt service payments from the 2020 property tax levy, as other funds are available to timely pay such principal and interest on the bonds due in fiscal year 2021. It was not possible for the City Council to adopt the Abatement Ordinance for the General Obligation 2020 Series Bond at the December 14, 2020 Council meeting, as the 2020 Series bond debt did not exist until the transaction closing which occurred on December 15, 2020, subsequent to the Council action on the tax levy and abatements at the December 14, 2020 meeting. Therefore, we now bring before the Council, the ordinance to abate the 2020 Series General Obligation Bond debt service payment from the 2020 property tax levy. The 2020 Series General Obligation Bond in the amount of $18,050,000 is a refunding transaction of the City issued General Obligation Bond Series 2010B, with issue date on December 7, 2010. The General Obligation Bond Series 2010B financed dredging of Lake Decatur basins 5&6, dam repairs, secondary water supply, and Olde Towne TIF downtown streetscape. This debt service is abated from the property tax levy with debt service payable from the water fund and the Olde Towne TIF fund.