2015-14 APPROVING THE TRANSFER OF VOLUME CAP IN CONNECTION WITH PRIVATE ACTIVITY BOND ISSUES

Home Browse Search

ORDINANCE NO. 2015-14 AN ORDINANCE APPROVING THE TRANSFER OF VOLUME CAP IN CONNECTION WITH PRIVATE ACTIVITY BOND ISSUES, AND RELATED MATTERS WHEREAS,the Internal Revenue Code of 1986 provides that the amount of private activity bonds which may be issued by the City of Decatur("City")as a constitutional home rule unit is equal to its population multiplied by $100.00; and WHEREAS,the Illinois Private Activity Bond Allocation Act(30 ILCS 345/1 et seq.) provides, among other things,that the corporate authorities of any home rule unit may reallocate to a state agency any portion of its unused allocation of volume cap; and WHEREAS, the City of Decatur has available year 2015 volume cap and desires to utilize this cap in cooperation with the Central Illinois Economic Development Authority if said volume is not utilized by the City to support the projects that will create jobs and expand the City's tax base; NOW THEREFORE, be it ordained by the City Council of the City of Decatur,Illinois: Section 1. Consent to Reallocate to CIEDA. The City hereby agrees to reallocate to the Central Illinois Economic Development Authority its 2015 private activity volume bonding cap in the amount of$7,471,000. Said private activity volume bonding cap shall be used to support projects that will provide job opportunities and new investments. Said private activity bonding cap shall not be used prior to September 1, 2015 without the expressed written consent of the Mayor of the City of Decatur. The City reserves the right prior to September 1, 2015 to direct CIEDA to transfer all or any portion of said volume cap back to the City, or in any manner directed by the City. After September 1, 2015, if such volume cap so allocated and transferred by this Ordinance is not used by CIEDA for the issuance of the Bonds within the territorial jurisdiction of CIEDA, such volume cap shall not be used for any other purpose without the approval of the Mayor or City Manager or shall be allocated by CIEDA as directed in writing by the Mayor or City Manager. Section 2. Letter of Agreement. The City Finance Director is hereby authorized to execute a letter of agreement with CIEDA consenting to such allocation on behalf of the City as authorized. Section 3. Maintaining Records. The City Finance Director is hereby authorized to maintain such record of the allocation for the term of the bonds issued pursuant to such allocation. Section 4.Notice. The Mayor or City Manager shall provide notice of such allocation to the Office of the Governor. Section 5. Effective Date. This ordinance shall be effective from and after its passage. PRESENTED, PASSED,APPROVED AND RECORDED this 20th y of April, 2015. f Approv ch el T. Mc lro , May [SEAL] ATT ST: TY CLERK