HomeMy WebLinkAboutOrd 2620 04/20/1976
ORDINANCE NO. 2620
AN ORDINANCE ESTABLISHING PROCEDURES TO BE
FOLLOWED FOR INCURRING INDEBTEDNESS FOR CORPORATE
PURPOSES AND AUTHORIZING AN APPROPRIATION WITHOUT
LIMIT AS TO RATE OR AMOUNT FOR THE PURPOSE OF
PAYING INTEREST ON SUCH INDEBTEDNESS AS THE SAME
ACCRUES
WHEREAS, Section 6 (a) of Article VII of the 1970 Constitution of the State of Illinois
provides that Tlany municipality which has a population of more than 25,000 (is) a
Home Rule Unit", and the Village of Mount Prospect, Cook County, Illinois, with a
population in excess of 25,000 is, therefore, a Home Rule Unit and may, under the ,
power granted by said Section 6 (a) of Article VII of the 1970 Constitution of the State I
of Illinois, exercise any power and perform any function pertaining to its govern- I
ment and affairs including, but not limited to, the power to tax and to incur debt; an1
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WHEREAS, the establishment of basic procedures for incurring municipal debt is botl{
necessary and desirable to provide clarity in law and direction for subsequent action~
and '
WHEREAS, the President and Board of Trustees of the Village of Mount Prospect be- I
lieve this action to be in the best interests of the Village of Mount Prospect; I
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NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES I
OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: I
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SECTION ONE: That, pursuant to that power and authority given Home Rule Units I
in Article VII of the 1970 Constitution of the State of Illinois, Article V of Chapter 8 i
of the Municipal Code of Mount Prospect of 1957, as amended, be and the same is i
hereby further amended by creati~g an entirely new Section, Section 8.511, for the I
purpose of establishing procedures to be followed in incurring indebtedness for cor-I
porate purposes and authorizing an appropriation without limit as to rate or amount I
in order to pay interest on such indebtedness as the same accrues; so that hereafter i
the said Section 8.511 of Article V of Chapter 8 of the Municipal Code of Mount Pros- I
pect of 1957, as amended, shall be and read as follows: I
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" SECTION 8.511. Establishment of a Line of Credit. I
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A. In an effort to continually balance the municipal budget, and to
further the purposes of the TlMunicipal Budget Officer System"
as heretofore adopted by the corporate authorities of the Village
of Mount Prospect by encouraging efficient planning, budgeting,
auditing, reporting, accounting, and other fiscal management
procedures, it has become necessary for the Village of Mount
Prospect to maintain flexibility to borrow and tax in order to
meet short term deficits, where receipts from Federal, State,
and local revenues (while determined to be made available dur-
ing any given fiscal year) may be inconsistent and sporadic so
as to create short term cash flow problems, the Village of Mount
Prospect, Cook County, Illinois, acting by and through its Pre-
sident and Board of Trustees, may borrow money from time to
time against the full faith and credit of the Village of Mount Pros-
pect, a municipal corporation.
B. In order to provide for the payment of necessary expenses,
debts, and liabilities of the municipal corporation and in
order to avoid possible judgments against the Village of
Mount Prospect, the President and Board of Trustees, by
Resolution, may authorize the Budget Officer to establish
a Line of Credit with a depository bank so that whenever
the Village of Mount Prospect does not have sufficient money
in its General Fund to meet such necessary expenses, debts,
and liabilities of the Village of Mount Prospect, any and all
overdrafts drawn upon said General and Related Fund shall
be honored by such depository bank, provided:
1. The aggregate of such overdrafts drawn upon such deposi-
tory bank shall not exceed $500,000.00;
2. The interest charged by such depository bank shall not ex-
ceed seven (7%) percent per annum and shall be compounded
daily against the outstanding sum total of such overdrafts on
any given day;
3. The President and Board of Trustees of the Village of Mount
Prospect shall have budgeted sufficient funds to pay interest
on such debt with such depository bank at the rate provided
for hereinabove; and
4.
The President and Board of Trustees of the Village of Mount
Prospect before, at the time of, or after incurring any such
indebtedness, shall provide for the levy and collection of a
direct annual tax sufficient to pay the interest on any such
debt created by any such overdraft as such interest thereon
falls due. TI
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Village President I
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That this Ordinance shall be in full force and effect from and after
passage, approval, and publication in the manner provided by law.
AYES:
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NAYS:
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PASSED this 20th day of April, 1976.
APPROVED this 20th day of April, 1976.
ATTEST:
,J~ Iv f!z~
VII age Clerk /
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