1982-12-20 - Resolution 1982-60 - ESTABLISHING A POLICY REGARDING INTEREST EARNINGS ON FUNDS ON DEPOSIT IN THE VILLAGE OF BUFFALO GROVE'S CORPORATE PURPOSE BOND SERIES 1982-A, BOND AND INTEREST FUND RESOLUTION NO. 82 - 60
A RESOLUTION ESTABLISHING A POLICY REGARDING INTEREST EARNINGS
ON FUNDS ON DEPOSIT IN THE VILLAGE OF BUFFALO GROVE'S CORPORATE
PURPOSE BOND SERIES 1982-A, BOND AND INTEREST FUND
WHEREAS, the Village of Buffalo Grove sold $5,025,000 in Corporate
Purpose Bond, Series 1982-A for the purpose of providing funds for the
construction of Village-wide water system improvements, construction and
improvements of local streets and for the provision of capitalized interest
to June 1 , 1983; and
WHEREAS, under the terms of the Ordinance providing for the issuance
of those bonds, a specific accounting fund must be established to accumulate
funds exclusively for paying the principal and interest on the bonds as it
comes due, designated as "The Corporate Purpose Bonds, Series 1982-A, Bond
and Interest Fund"; and
WHEREAS, the deposits of money into this Fund can be invested in any
allowable security permitted by law; and
WHEREAS, under the terms of the Ordinance, the Village may transfer
interest earnings on the Corporate Purpose Bonds, Series 1982-A, Bond and
Interest Fund, to the general operating funds of the Village, as long as
doing so shall not result in the amounts in the Fund from being insufficient
to pay principal of and interest on the Bonds as it comes due; and
WHEREAS, the Village Board of Trustees has opted to establish the
policy that interest earnings on this Fund will be maintained in "The
Corporate Purpose Bonds, Series 1982-A, Bond and Interest Fund" for purposes
of water system or street construction and improvement capital expenses or
•for tax abatement on debt servicing requirements of this general obligation
bond financing.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, that:
SECTION 1 . That any interest earned will be retained within the
Corporate Purpose Bonds, Series 1982-A, Bond and Interest Fund for the purposes
. s
of providing money for water system or street construction and improvement
capital improvement expenses or for the abatement of taxes on debt servicing
requirements of this general obligation bond financing for which a tax may
be levied.
SECTION 2. The Village staff will insure that all funds are properly
accounted for and segregated as required by the Ordinance providing for the
issuance of this series debt and by generally accepted accounting principals
as they apply to governmental entities.
SECTION 3. Any decision to utilize such funds shall be budgetary
and appropriation decisions properly documented according to Village practice
and legal policy. Any decision relative to property tax abatement shall be
subject to the Village's tax levy and abatement policies and practices.
AYES: 6 - Marienthal , Stone, O' Reilly, Hartstein, Gerschefske, Schwartz
NAYES: 0 - None
ABSENT: 0 - None
PASSED: December 20 , 1982.
APPROVED: December 20 , 1982.
I
Village President
ATTEST:
`Village Clerk -2-