S2-96 Ordinance No. S2-96
AN ORDINANCE
REALLOCATING $2 ,350,500 OF THE CITY OF ELGIN' S
PRIVATE ACTIVITY BOND ALLOCATION TO THE
ILLINOIS DEVELOPMENT FINANCE AUTHORITY
WHEREAS, pursuant to the Internal Revenue Code of 1986,
as amended, the City of Elgin (the "City" ) as a constitutional
home rule unit is allocated a certain amount of "volume cap"
per calendar year; and
WHEREAS, the Illinois Private Activity Bond Allocation
Act, 30 ILCS 345 et seq. , provides, among other things, that
the corporate authorities of any home rule unit may reallocate
all or any portion of its unused allocation of volume cap; and
WHEREAS, the City has available unused volume cap for
calendar year 1996; and
WHEREAS, the City wishes to authorize the Mayor of the
City of Elgin (the "Mayor") to reallocate a portion of its
unused volume cap for calendar year 1996 to the Illinois
Finance Development Authority (the "Authority") for use in
connection with a particular transaction.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS:
Section 1 . Reallocation. The City hereby authorizes
and directs the Mayor to reallocate to the Authority
$2,350,500 of its unused volume cap, for calendar year 1996
(the "Reallocation" ) for application by the Authority to bonds
to be issued to finance a project located within the City for
Suburban Plastics. Should Suburban Plastics not be granted
the additional volume cap from the Authority by April 1, 1996
then the $2,350,500 will be returned to the City of Elgin to
be reallocated at their discretion. The Mayor will evidence
the making of such Reallocation by filing a certificate with
the Clerk of the City stating the amount of volume cap
reallocated pursuant to this ordinance.
Section 2 . Records . The Mayor is hereby authorized
and directed to maintain a record of such Reallocation for the
term of the Bonds issued pursuant to such Reallocation.
Section 3 . Notice. The Mayor shall provide a written
notice of such Reallocation to the Office of the Governor and
to the Authority.
r"° Section 4 . Execution of Documents. The Mayor shall
execute such agreements, certificates and other documents on
behalf of the City as he deems necessary and desirable to
evidence such Reallocation, which may include a representation
on behalf of the City that such Reallocation volume cap has
not been used and is available for reallocation under the
Internal Revenue Code and the Illinois Private Activity Bond
Allocation Act.
Section 5 . Effective Date. This ordinance shall be
effective from and after its passage.
Kevin Kelly, Mayor
Presented: February 28, 1996
Passed: February 28, 1996
Vote: Yeas 7 Nays 0
Recorded: February 29, 1996
Published:
Attest:
`
Dolonna Mecum,m, C ity Clerk