HomeMy WebLinkAboutRes 34-10 10/19/2010 RESOLUTION NO. 34 -10
A RESOLUTION AUTHORIZING THE EXECUTION
OF AN INTERGOVERNMENTAL AGREEMENT
WITH THE MOUNT PROSPECT PUBLIC LIBRARY FOR A LINE OF CREDIT
WHEREAS, the Village of Mount Prospect, a home rule municipal corporation, and the
Mount Prospect Public Library, an Illinois Village Public Library, are "public agencies" as
defined in the Intergovernmental Cooperative Act, 5 ILCS 220/1 et seq.; and
WHEREAS, Article VII, Section 10 of the Illinois Constitution of 1970 and the
Intergovernmental Cooperative Act, 5 ILCS 220/1 et seq., authorize public agencies to
contract or otherwise associate among themselves to obtain or share services, and to
exercise, combine or transfer any power or function, in any manner not prohibited by
law; and
WHEREAS, the Mount Prospect Public Library is dependent upon the proceeds of the
real estate tax levy for the funding of day -to -day operations; and
WHEREAS, due to an expected delay in the collection of its 2009 tax levy the Mount
Prospect Public Library will not receive the second tax installment until later in the
winter; and
WHEREAS, the Mount Prospect Public Library will be facing insufficient funds this fall
and winter to meet payroll and the payment of bills; and
WHEREAS, the Board of Library Trustees of the Mount Prospect Public Library have
requested the Village of Mount Prospect to provide a line of credit to assist it in meeting
its payroll and payment of bills until sufficient tax revenues have been received from
Cook County; and
WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have
determined that it is in the best interests of the residents of the Village to assure that the
Mount Prospect Public Library experiences no Toss of revenue for the providing of its
services.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS,
PURSUANT TO ITS HOME RULE POWERS:
SECTION ONE: A line of credit, not to exceed $700,000 (the "Line of Credit "), shall be
established by the Village of Mount Prospect for the operation of the Mount Prospect
Public Library for the purpose of protecting the Village's residents against the loss of
library services due to a cash shortfall.
258892_1
SECTION TWO: The terms of the Line of Credit shall be as set forth in the Agreement
for Line of Credit (the "Agreement "), attached hereto and incorporated herein as "Exhibit
A ".
SECTION THREE: The President and Village Clerk are hereby authorized to execute
the Agreement for and on behalf of the Village.
SECTION FOUR: The Line of Credit shall be immediately available upon execution of
the Agreement by the Village of Mount Prospect and the Board of Library Trustees of
the Mount Prospect Public Library.
SECTION FIVE: This Resolution shall be in full force and effect from and after its
passage and approval in the manner provided by law.
AYES: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel
NAYS: None
ABSENT: None
PASSED and APPROVED this 19 day of October, 2010.
258892_1
EXHIBIT A
AGREEMENT FOR LINE OF CREDIT
Credit Limit: $700,000.00 Mount Prospect, Illinois
Lender: The Village of Mount Prospect, an Illinois municipal corporation
Borrower: The Mount Prospect Public Library, an Illinois Village Public Library
In consideration of the mutual promises contained herein, the Village of Mount Prospect
(hereinafter "Lender") agrees to extend to the Mount Prospect Public Library (hereinafter
"Borrower ") a Line of Credit in the amount of SEVEN HUNDRED THOUSAND DOLLARS and
00/100 ($700,000.00), pursuant to Resolutions adopted by their respective Boards of Trustees.
Beginning on the effective date of this Agreement, which shall be the date last signed by
the Lender and Borrower, and continuing until January 31, 2011, Borrower shall be entitled to
draw upon the Line of Credit from time to time, by submitting to Lender one or more written
Demands, each signed by the designee of the Borrower. Each Demand shall state the amount
requested to be paid by Lender to Borrower. Subject to the terms of this Agreement, upon
receipt of such Demand, Lender shall pay the amount to Borrower or to Borrower's order, within
three (3) business days.
During the term of this Line of Credit, Borrower may from time to time make payments to
Lender in order to decrease its indebtedness to Lender under this Line of Credit, and thereby
increase its available credit.
Borrower's repayment to Lender of amounts borrowed on this Line of Credit shall
commence no later than seven (7) days after Borrower's initial receipt of funds from Cook
County for the second installment 2009 real estate taxes, subject to Borrower's repayment in full
of all amounts borrowed on this Line of Credit no later than January 31, 2011 (the "Default
Date "). If all amounts due are repaid on or before the Default Date, no interest shall be due.
All amounts borrowed on this Line of Credit, which are not paid in full by the Default
Date, shall bear interest at the agreed rate of one percent (1.0 %) per year from the date on
which the first draw was made on the Line of Credit. Final payment of all principal and interest
shall be paid to the Lender no later than one (1) year after the Default Date.
DATED: 41€4., /5 /f DATED: G' d °I/ o` /
258892_1