HomeMy WebLinkAbout26-137 Resolution No. 26-137
RESOLUTION
AUTHORIZING THE REMITTANCE OF AN ARBITRAGE REBATE PAYMENT TO THE
INTERNAL REVENUE SERVICE AND APPROVING RELATED ACTIONS
WHEREAS,the City of Elgin, Illinois(the"City"),has previously issued its 2022 General
Obligation Corporate Purpose Bonds (the "Bonds") to finance certain utility and recreation
projects; and
WHEREAS, pursuant to Section 148 of the Internal Revenue Code of 1986, as amended
(the "Code"), and the applicable Treasury Regulations promulgated thereunder, the City is
required to calculate and, if applicable, remit to the United States Treasury any arbitrage rebate
resulting from the investment of proceeds of tax-exempt obligations in investments that produce
yields in excess of the applicable yield on the Bonds; and
WHEREAS, an independent arbitrage rebate calculation has been completed with respect
to the Bonds, and such calculation has determined that an arbitrage rebate and yield reduction
payment in the total amount of$386,876.12 is due for the computation period ending August 1,
2026; and
WHEREAS, the City desires to remit the required arbitrage rebate payment to the Internal
Revenue Service in accordance with the requirements of Section 148 of the Code and the
applicable Treasury Regulations;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS, as follows:
Section 1. The City Council hereby acknowledges and approves the arbitrage rebate
calculation report prepared with respect to the Bonds and determining an arbitrage rebate payment
of$386,876.12.
Section 2.The Chief Financial Officer of the City of Elgin is hereby authorized and directed
to remit, on behalf of the City,the arbitrage rebate and yield reduction payment in the total amount
of$386,876.12 to the Internal Revenue Service, together with the applicable IRS Form 8038-T
and any other documentation required in connection therewith.
Section 3. The Chief Financial Officer and other appropriate officers and employees of the
City are hereby authorized and directed to take such further actions and execute such additional
documents as may be necessary or appropriate to effectuate the payment authorized by this
resolution and to satisfy the City's obligations under Section 148 of the Code and the applicable
Treasury Regulations.
Section 4.This resolution shall be in full force and effect immediately upon its passage and
approval in accordance with law.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: August 26, 2026
Adopted: August 26, 2026
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
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