1982-04-05 - Resolution 1982-16 - ESTABLISHING A POLICY REGARDING INTEREST EARNINGS ON FUNDS ON DEPOSIT IN THE VILLAGE OF BUFFALO GROVE'S CORPORATE PURPOSE BOND, SERIVES 1982 BOND AND INTEREST FUND RESOLUTION NO. 82 - 16
A RESOLUTION ESTABLISHING A POLICY REGARDING INTEREST EARNINGS
ON FUNDS ON DEPOSIT IN THE VILLAGE OF BUFFALO GROVE 'S CORPORATE
PURPOSE BOND, SERIES 1982, BOND AND INTEREST FUND
WHEREAS, the Village of Buffalo Grove sold $8,500,000 in Corporate
Purpose Bond, Series 1982 for the purpose of providing funds for the North-
west Water Commission , construction of internal improvements to the Village's
water system, and the provision of capitalized interest to January 1 , 1984;
and
WHEREAS, under the terms of the Ordinance providing for the issuance
of those bonds, a specific 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, Bond and
Interest Fund"; and
WHEREAS, the deposits of money into this Fund can be invested in any
allowable security allowed by law; and
WHEREAS, under the terms of the Ordinance, the Village may transfer
interest earnings on the Corporate Purpose Bonds, Series 1982, 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 by polling on March 15,
1982 , to establish the policy that interest earnings on this Fund will be
maintained in "The Corporate Purpose Bonds, Series 1982, Bond and Interest
Fund" for purposes of system capital improvement expenses or tax abatement
on system 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
Waterworks & Sewerage Fund, Corporate Purpose Bonds , Series 1982, Bond and
Interest Fund for the purposes of providing money for system capital
improvement expenses or for the abatement of taxes on system related general
obligation bonds 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 - Mariehthal , Stone, O'Reilly, Hartstein, Gerschefske, Schwartz
NAYES: 0 - None
ABSENT: 0 - None
PASSED: April 5 , 1982.
APPROVED: April 5 , 1982.
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Village President
ry.
ATTEST:
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Vi 1,lage Clerk
2.