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HomeMy WebLinkAboutS10-03 (2) • '. State of Illinois) County of Kane) ss City of Elgin ) CERTIFICATE OF CITY CLERK I,Dolonna Mecum, DO HEREBY CERTIFY that I am the duly qualified City Clerk of the City of Elgin, in the Counties of Kane and Cook in the State of Illinois, and that as such City Clerk I am the keeper and custodian of the files and records of said City of Elgin and the seal thereof. I DO FURTHER CERTIFY that the attached is a full, true, and correct copy of: ORDINANCE NO. S 10-03 AN ORDINANCE AUTHORIZING THE REALLOCATION OF PRIVATE ACTIVITY BONDING AUTHORITY TO THE ILLINOIS DEVELOPMENT FINANCE AUTHORITY passed by the Elgin City Council at its legally convened meeting held on April 23, 2003. In Witness Whereof, I have hereunto set my hand and affixed the corporate seal of the City of Elgin at the said City in the County and State aforesaid this April 28, 2003. a-4fr?k,,-Q City Clerk (SEAL) I illii AN ORDINANCE Ordinance No. S10-03 AUTHORIZING THE REALLOCATION OF PRIVATE ACTIVITY BONDING AUTHORITY TO THE ILLINOIS DEVELOPMENT FINANCE AUTHORITY WHEREAS, the Internal Revenue Code of 1986 provides that the amount of private activity bonds which may be issued by the City of Elgin (the "City" ) as a constitutional home rule unit is equal to its population multiplied by $75 . 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 has available unused year 2003 volume cap and desires to reallocate this remaining cap to the Illinois Development Finance Authority ("IDFA") to assist projects that will enhance business opportunities within the State of Illinois . NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . Consent to Reallocate to IDFA. The City hereby agrees to reallocate to IDFA its remaining unused 2003 private activity volume bonding cap in the total amount of $6, 086 , 525 . Section 2 . Execution of Documents. The City Manager and City Clerk are hereby authorized to execute on behalf of the City any additional documents necessary in connection with the reallocation by the City of Elgin as authorized herein. Section 3 . Notice . The City Manager and City Clerk shall provide a notice to the Office of the Governor of the reallocation from the City to IDFA as provided herein. Section 4 . Effective Date. This ordinance shall be effective from and after its passage . s/Ed Schock Ed Schock, Mayor Presented: April 23 , 2003 Passed: April 23 , 2003 Vote : Yeas : 6 Nays : 0 Recorded: April 24 , 2003 Attest : s/Dolonna Mecum Dolonna Mecum, City Clerk • ORDINANCE No. S4-03 AN ORDINANCE authorizing the execution and delivery of an Intergovernmental Cooperation Agreement and certain documents in connection therewith; and related matters. WHEREAS, pursuant to Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois, the City of Elgin, Cook and Kane Counties, Illinois, is a municipality and a home rule unit of government duly organized and validly existing under the Constitution and the laws of the State of Illinois(the "Municipality"); and WHEREAS, pursuant to the Constitution and the laws of the State of Illinois, and particularly Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois, the Municipality is authorized to issue its revenue bonds in order to aid in providing an adequate supply of safe, decent and sanitary residential housing for low and moderate income persons and families within the Municipality, which such persons and families can afford, which constitutes a valid public purpose for the issuance of revenue bonds by the Municipality; and WHEREAS, the Municipality has now determined that it is necessary, desirable and in the public interest to issue revenue bonds to provide an adequate supply of safe, decent and sanitary residential housing for low and moderate income persons and families within the Municipality, which such persons and families can afford; and WHEREAS, pursuant to Section 10 of Article VII of the 1970 Constitution of the State of Illinois and the Intergovernmental Cooperation Act (5 Illinois Compiled Statutes 2000, 220/1 et seq., as supplemented and amended), public agencies may exercise and enjoy with any other public agency in the State of Illinoisan power,privilege or authoritywhich maybe exercised g YYP g by such public agency individually, and, accordingly, it is now determined that it is necessary, desirable and in the public interest for the Municipality to enter into an Intergovernmental Cooperation Agreement (the "Cooperation Agreement") dated as of March 1, 2003, by and among the Municipality and certain other units of local government named therein (the "Units"), • A r • to provide for the joint issuance of such revenue bonds to aid in providing an adequate supply of residential housing in such Units (the "Program"); and WHEREAS, to provide for the Program, the City of Aurora, Kane, DuPage, Will and Kendall Counties, Illinois, and the City of Springfield, Sangamon County, Illinois, jointly (the "Issuers"), propose to issue, sell and deliver their Collateralized Single Family Mortgage Revenue Bonds, Series 2003 in an aggregate principal amount not to exceed $300,000,000 (the "Bonds") in one or more series to obtain funds to finance the acquisition of mortgage-backed securities (the "GNMA Securities") of the Government National Mortgage Association ("GNMA'), evidencing a guarantee by GNMA of timely payment, the acquisition of mortgage- backed securities (the "FNMA Securities") of the Federal National Mortgage Association ("FNMA"), evidencing a guarantee by FNMA of timely payment, and the acquisition of mortgage-backed securities (the "FHLMC Securities") of the Federal Home Loan Mortgage Corporation ("FHLMC"), evidencing a guarantee by FHLMC of timely payment, of monthly principal of and interest on certain qualified mortgage loans under the Program (the "Mortgage Loans"), on behalf of the Municipality and the other Units all under and in accordance with the Constitution and the laws of the State of Illinois; and WHEREAS, a notice of combined public hearing with respect to the plan of finance of the costs of the Program through the issuance of the Bonds has been published in the Courier News, a newspaper of general circulation in the Municipality, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), on January 22, 2003, and appropriately designated hearing officers of the City of Aurora, Kane, DuPage, Will and Kendall Counties, Illinois, the City of Champaign, Champaign County, Illinois, the City of East Moline, Rock Island County, Illinois, and The County of St. Clair, Illinois, have conducted said combined public hearing on February 7, 2003; and -2- • WHEREAS, a form of the Cooperation Agreement has been presented to and is before this meeting; ' NOW, THEREFORE, Be It Ordained by the City Council of the City of Elgin, Cook and Kane Counties, Illinois, as follows: Section 1. That it is the finding and declaration of the City Council of the Municipality that the issuance of the Bonds by the Issuers is advantageous to the Municipality, as set forth in the preamble to this authorizing ordinance, and therefore serves a valid public purpose; that this authorizing ordinance is adopted pursuant to the Constitution and the laws of the State of Illinois, • and more particularly Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois, Section 10 of Article VII of the 1970 Constitution of the State of Illinois and the Intergovernmental Cooperation Act; and that, by the adoption of this authorizing ordinance, the City Council of the Municipality hereby approves the issuance of the Bonds for the purposes as provided in the preamble hereto, the text hereof and the notice of public hearing referred to in the hereto, which notice is herebyincorporated herein preamble � by reference, and the conduct of the combined public hearing referred to in the preamble hereto, which public approval shall satisfy the provisions of Section 147(1)of the Code. Section 2. That the form, terms and provisions of the proposed Cooperation Agreement be, and they are hereby, in all respects approved; that the Mayor of the Municipality be, and is hereby, authorized, empowered and directed to execute, and the City Clerk of the Municipality be, and is hereby, authorized, empowered and directed to attest and to affix the official seal of the Municipality to, the Cooperation Agreement in the name and on behalf of the Municipality, and thereupon to cause the Cooperation Agreement to be delivered to the other Units; that the Cooperation Agreement is to be in substantially the form presented to and before this meeting and hereby approved or with such changes therein as shall be approved by the -3- officer of the Municipality executing the Cooperation Agreement, his or her execution thereof to constitute conclusive evidence of his or her approval of any and all changes or revisions therein from the form of Cooperation Agreement before this meeting; that from and after the execution and delivery of the Cooperation Agreement, the officers, officials, agents and employees of the Municipality are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Cooperation Agreement as executed; and that the Cooperation Agreement shall constitute and is hereby made a part of this authorizing ordinance, and a copy of the Cooperation Agreement shall be placed in the official records of the Municipality, and shall be available for public inspection at the principal office of the Municipality. Section 3. That the Mayor, the City Clerk and the proper officers, officials, agents and employees of the Municipality are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents and certificates as may be necessary to carry out and comply with the provisions of the Cooperation Agreement and to further the purposes and intent of this authorizing ordinance,including the preamble to this authorizing ordinance. Section 4. That all acts of the officers, officials, agents and employees of the Municipality heretofore or hereafter taken, which are in conformity with the purposes and intent of this authorizing ordinance and in furtherance of the issuance and sale of the Bonds,be, and the same hereby are, in all respects, ratified, confirmed and approved, including without limitation the publication of the notice of public hearing. Section 5. That the Municipality hereby transfers a portion its 2003 unified volume cap in the amount of$1,000,000 to the Issuers, together with all unified Volume Cap to be received by the Municipality from the Office of the Governor in 2003 for the Bonds, if any, which is hereby allocated by the Municipality to the issuance of the Bonds; and that the Municipality, by -4- • adoption of this authorizing ordinance, hereby represents and certifies that such volume cap has not been allocated to any other bond issue or transferred to any other party. Section 6. That the amount of its 2003 unified volume cap allocated and transferred by the Municipality as set forth herein shall be utilized solely for individuals participating in the Program who are purchasing residential housing within the corporate limits of the City of Elgin, Illinois, unless the City Council of the Municipality shall otherwise determine. Such restriction shall be inserted in the Origination and Servicing Agreement for the Program. Section 7. That after the Cooperation Agreement is executed by the Municipality, this authorizing ordinance shall be and remain irrepealable until the Bonds and the interest thereon shall have been fully paid, cancelled and discharged. Section 8. That the provisions of this authorizing ordinance are hereby declared to be separable, and if any section, phrase or provision of this authorizing ordinance shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections,phrases and provisions of this authorizing ordinance. Section 9. That all ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this authorizing ordinance are, to the extent of such conflict,hereby superseded; and that this authorizing ordinance shall be in full force and effect upon its adoption and approval as provided by law. Presented, passed, approved and recorded by the City Council of the City of Elgin, Cook and Kane Counties, Illinois,this 26th day of February, 2003. Approved: Mayor -5- [SEAL] Attest: City Clerk Ayes: Councilmembers Figueroa, Gilliam, Walters , Wasilowsk} Yearman and Mayor Schock Nays: None Absent or Not Voting: None -6- ¢`� /"a City of Elgin Agenda Item Na i April 18, 2003 I 1 N r .. , TO: Mayor and Members of the City Council ECONOMIC GROWTH FROM: David M. Dorgan, City Manager SUBJECT: Ceding of $6, 086 , 525 of City of Elgin Private Activity Bonding Authority to the Illinois Development Finance Authority PURPOSE The purpose of this memorandum is to present to the Mayor and members of the City Council information on an ordinance providing for the ceding of $6, 086, 525 in Private Activity Bonding Authority for the City of Elgin from the State of Illinois to the Illinois Development Finance Authority. BACKGROUND In 2003 , the State of Illinois Office of the Governor allocated $7, 086, 525 in private activity bond capacity for use by the City of Elgin. In past years, this bonding activity has been used by existing or new manufacturing entities to expand or establish new manufacturing operations within the City of Elgin. As a result of the current business climate, as well as current interest rates, there has been little interest in accessing this economic development tool . The program guidelines stipulate that if the volume cap is not allocated to a specific entity by the municipality by May 1, 2003 , the volume cap reverts to the Office of the Governor and is placed in a funding pool that may be accessed by other state agencies and municipalities . To date, the City of Elgin has allocated $1 million to be placed into a pool of funds with contributions from the City of Aurora, Kane, DuPage, Will , and Kendall County, Illinois and the City of Springfield, Sangamon County, Illinois, to issue, sell, and deliver their collateralized Single Family Mortgage Revenue Bonds, Series 2003 , in an amount not to exceed $300, 000, 000 to finance the acquisition of mortgage-backed securities . A Ceding of $6, 086, 525 of City of Elgin Private Activity Bonding Authority to the IDFA April 18, 2003 Page 2 Rather than completely losing the impact of the $6086, 525, staff contacted the Illinois Development Finance Authority, which also receives an allocation of volume cap from the State of Illinois, and requested and received a commitment from IDFA that if the City of Elgin cedes its remaining 2003 volume cap to IDFA, then the IDFA will cooperate with Elgin when Elgin may need Industrial Revenues Bond volume cap for our economic development projects where the funds required exceed the City' s bonding volume cap allocation. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT None. WEGAL IMPACT Vv None. ALTERNATIVES 1 . Cede the City' s unallocated Private Activity Bonding Authority ($6, 086, 525) to the Illinois Development Finance Authority. 2 . Take no action and allow the unused cap to the Office of the Governor, Bureau of the Budget . RECOMMENDATION It is recommended that the City Council authorize ceding $6, 086, 525 in private activity bonding authority for 2003 to the Illinois Development Finance Authority. Respectfully submitted for Council consideration. DMD/dr