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HomeMy WebLinkAbout7.1 1st Reading of AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $8,000,000 GENERAL OBLIGATION BONDS4/16/2020 BoardDocs® Pro Agenda Item Details Meeting Aug 07, 2019 - SPECIAL MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 7. NEW BUSINESS Subject 7.1 1st Reading of AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $8,000,000 GENERAL OBLIGATION BONDS, IN ONE OR MORE SERIES, OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, FOR THE PURPOSE OF FINANCING THE COSTS OF CERTAIN CAPITAL PROJECTS IN THE VILLAGE, PROVIDING FOR THE LEVY AND COLLECTION OF A DIRECT ANNUAL TAX SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS, AND AUTHORIZING THE PROPOSED SALE OF SAID BONDS TO THE PURCHASER THEREOF. Access Public Type Action Preferred Date Aug 07, 2019 Absolute Date Aug 07, 2019 Fiscal Impact Yes Budgeted Yes Budget Source Prospect/Main TIF Fund Recommended Action Consider as a first reading this parameters ordinance approving the issuance general obligation bonds not to exceed $8,000,000. A second reading to formally approve the ordinance will be held at the regular Village Board meeting on August 20, 2019. Public Content Information The accompanying parameters ordinance is presented for the Board's consideration. This ordinance permits the issuance of general obligation bonds up to $8,000,000. The proceeds will fund infrastructure projects in the Village's Prospect/Main TIF district, including the construction of the Maple Street Parking Deck, a new Elevator at Emerson Street Parking Deck and streetscape improvements within the TIF. While these bonds will be issued as a general obligation of the Village and supported by a direct annual tax upon all taxable property, the entire amount of the annual levy for principal and interest will be abated using funds from the TIF Increment. As a result, there will be no impact on the property tax levy from the issuance of these bonds. Pending approval, the ordinance will permit the Mayor, Village Manager, and Finance Director to execute an order for the sale of these bonds. Sections 3 and 12 of the parameters ordinance provides information on interest rates, principal and interest payment schedules and tax levy schedule by which the bonds can be issued. The bonds will be sold via competitive bid. Due to the size of the issue and the possibility of a future bond issue, these bonds will not be eligible for bank qualified status. A summary of results will be presented to the Village Board when the sale is finalized. Distribution of the final approving legal opinion from bond counsel and final repayment schedule will also be made available at that time. Alternatives https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 1/2 4/16/2020 BoardDocs® Pro 1. Village Board to adopt the parameters ordinance approving the issuance of general obligation bonds not to exceed $8,000,000. 2. Action at the discretion of Village Board. Staff Recommendation Staff recommends considering as a first reading this parameters ordinance approving the issuance general obligation bonds not to exceed $8,000,000. A second reading to formally approve the ordinance will be held at the regular Village Board meeting on August 20, 2019. The final sizing of this bond issue may be adjusted based on cost estimates due next week for the parking deck and elevator projects. Village of Mount Prospect - Parameters Ordinance - 2019B.pdf (606 KB) Administrative Content Executive Content https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 2/2