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.. <br /> LEGAL DEPARTMENT MEMORANDUM <br /> No. 97-11 <br /> April l, 1997 <br /> TO: Honorable Mayor and City Council Members <br />� FROM: James L. Williams, Jr., City Manager <br /> Beth B. Couter, Director of Financial Management <br /> John W. Couter, Corporation Counsel <br /> RE: Reallocation of Private Activity Bond Authority <br /> The U.S. Internal Revenue Code grants Illinois home rule cities the authority to issue <br /> bonds for private activities, but limits the amount of said bonds in any calendar year ($50 per <br /> person, as per U.S. census). The Illinois Private Activity Bond Reallocation Act (30 ILCS 345/1 <br /> et seq.) permits cities that are not going to use that authority to reallocate, or sell, it to other <br /> cities. The City of Harvey has asked that Decatur reallocate a portion of its authority to Harvey, <br /> for a fee of 1% of the amount of authority actually used. The City of Decatur has no pending <br /> requests for the issuance of any private activity bonds, and is not aware of any potential or <br /> prospective requests. <br /> Staff recommends approval of the resolution reallocating private activity bond authority to <br /> the City of Harvey. <br /> JWC:ps <br /> cc: Wendy L. Morthland <br /> John T. Robinson <br />