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Home My WebLink About6.2 AN ORDINANCE APPROVING AN AMENDMENT TO AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS�f i,Item Cover Page i BETWEENwubject AN ORDINANCE APPROVING AN AMENDMENT TO AN INTERGOVERNMENTAL AGREEMENT PUBLICTHE VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT LIBRARY ISSUANCE OF GENERAL OBLIGATION BONDS Meeting October PROSPECT A BOARD 'iscal Impact fa I ; .!f ry CONSENT AGENDA Type Consent l(mieldliram There is an existing intergovernmental agreement (IGA) for the library bond issuance between the Village of Mount Prospect and the Mount Prospect Public Library. This bond funded the expansion of and improvement to the public library. ` • approved • April 2002, • 1 • 1 further modified on 1 • 2002. Per the Village •• at the time,, the modification to comply with the legislative requirements as it relates to the terms of any intergovernmental agreement. Per the statutes,, any IGA cannot exceed 20 years. ` original • term 1 ',' years 1,' ,,' months. ` modification •' the original • • • to • years • • incorporated 1+ balloon payment • $3,,157,,300 • ! 2021. The balloon payment provision 1 included to accommodate last debt payment 1 1 originally • • • e in ` last seven months of original • and includes $1,576,300 due in 2021., as well as $1,,581,,000 due in 2022. The balloon payment will cause a 1'', se in the current levy amount. It will increase the financial burden on residents and businesses while they are weathering the tough times due to the • • 1 After consulting with the Village Attorney Lance Malina, staff is recommending to allow the Mount Prospect Public Library to levy only one debt service payment that is due in 2021 (2020 levy - payable in 2021). The last debt service payment due in 2022 should be -! in 20221 payable in 2022).To execute this change formally, the Village recommends an amendment to the current IGA, as attached herewith. The attached IGA needs to be approved by the Village Board and also by the Library Board. It is a fiscally responsible for the Village of Mount Prospect and the Mount Prospect Public Library to execute this IGA and levy the debt service tax when the payment is actually due. It will also provide a financial relief totaling $1,581,000 to the residents and businesses in these difficult times. Since the Village will be approving the levy in November2020, it will be -ly action forVillage well as for the Library to approve amending the IGA in October 2020. The Library is scheduled to adopt the amendment to the IGA on October2020. ordinanceAlternatives 1. Approve the attached i existing Village i Library. 2. Action i ion of the Village Board. ordinanceStaff Recommendation Approve the attached i existing intergovernmental agreement between the Village i Library ATTACHMENTS Village of Mt Prospect—Finance—Ordinance amending the IIGA between VMP and thre MPPL (003)-pdf 2 ORDINANCE NO. ORDINANCE APPROVING AN AMENDMENT TO AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS NOW, THEREFORE, BE IT ORDAINED, by the Mayor and the Board of Trustees of the Village of Mount Prospect ("Village"), Cook County, Illinois, as follows: SECTION 1: The Mayor and the Board of Trustees of the Village find as follows: A. The Village is a home rule municipality pursuant to Section 7 of Article VII of the Constitution of the State of Illinois. B. The Mount Prospect Public Library ("the Library") is an Illinois Village Public Library. C. On May 21, 2002, the Village and the Library entered into an Intergovernmental Agreement ("the Agreement"). D. Pursuant to the Agreement, the Village caused general obligation bonds ("the Bonds") to be issued in the amount of $20,500,000 to fund the expansion of and improvement to the existing public library. The Bonds have a twenty year repayment schedule. E. Pursuant to the Agreement, the Library assumed the full responsibility for the repayment of the bonds, inclusive of principal and interest and all the costs associated with the bond issue. F. Pursuant to the Agreement, the Library approves tax levies annually which are sufficient to cover the repayment of all principal and interest on the Bonds issued by the Village as they come due. G. Section 6 of the Agreement requires the Library to make a balloon payment to the Village on November 1, 2021 in an amount sufficient to cover the December 1, 2021 principal and interest payment, the June 1, 2022 interest payment, and the December 2022 principal and interest payment. H. The Village and the Library find that it is in the best interests of the parties to revise the Agreement to extend the term of the Bond repayment schedule by one year so that it will make a December 1, 2021 payment and a December 1, 2022 payment. 452380_1 3 I. The Library shall have tax levies in 2020 to cover the 2021 payment and it shall levy taxes in 2021 to cover the 2022 payment. SECTION 2: The current language in Section 6, of the Agreement, that reads as follows: "Furthermore, the LIBRARY agrees to remit to the VILLAGE a balloon payment on November 1, 2021 in an amount sufficient to cover the December 1, 2021 principal and interest payment, the June 1, 2022 interest payment interest payment, and the December 17 2022 principal and interest payment." shall be deleted from the Agreement and replaced with language that reads as follows: "The LIBRARY shall remit to the VILLAGE at least two weeks before June 1, 2021 and December 1, 2021 an amount sufficient to cover the principal and interest payments due on June 1, 2021 and December 1, 2021, respectively. The LIBRARY shall also remit to the VILLAGE at least two weeks before June 1, 2022 and December 1, 2022 an amount sufficient to cover the principal and interest payment on June 1, 2022 and December 1, 20223 respectively." SECTION 3: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law. ADOPTED this day of October, 2020, pursuant to a roll call vote as follows: AYES: NAYS: ABSENT: APPROVED this day of October, 2020, by the Village Mayor of the Village of Mount Prospect, and attested by the Village Clerk, on the same day. Village Mayor 452380_1 4 APPROVED and FILED in my office this day of October, 2020 and published in pamphlet form in the Village of Mount Prospect, Cook County, Illinois. ATTEST: Village Clerk 452380_1 5