1999-47•
RESOLUTION NO, 99- 47
•
A RESOLUTION CEDING THE 1999 PRIVATE ACTIVITY BOND VOLUME CAP
OF THE VILLAGE OF BUFFALO GROVE TO THE
ILLINOIS DEVELOPMENT FINANCE AUTHORITY
WHEREAS, the Village of Buffalo Grove, Cook and Lake Counties, Illinois (the "Village ") is a
municipality and a home rule unit of government duly organized and validly existing under Section
6(a) of Article VII of the 1970 Constitution and laws of the State of Illinois; and
WHEREAS, the availability of job opportunities to relieve conditions of unemployment and
underemployment, and the increase of business and commerce to reduce the tribulations associated
with unemployment and underemployment are essential to the health, safety and welfare of the
Village; and
WHEREAS, Section 146 of the Internal Revenue Code of 1986 (the "Code "), as amended, and
Section 1301 of the Tax Reform Act of 1986, places a ceiling (the "State Ceiling ") on the aggregate
principal amount of private activity bonds (as defined in the Code) that can be issued in the State of
Illinois from January 1, 1999, to and including December 31, 1999; and
WHEREAS, the Village's portion of the State's Ceiling is $50 per capita (the "Available
Ceiling ") thereby resulting in approximately $2,100,000 in 1999 Available Ceiling; and
WHEREAS, it is in the best interest of the Village to transfer and reallocate the Village's
remaining, unused Available Ceiling to the Illinois Development Finance Authority ( "IDFA ") and
thereby permit the Authority to issue tax - exempt private activity bonds to finance industrial,
manufacturing and commercial projects for economic development purposes; and
WHEREAS, the Village has a remaining, unused balance of allocated Available Ceiling in the
amount of approximately $2,100,000 for the remainder of calendar year 1999; and
WHEREAS, under the Illinois Private Activity Bond Allocation Act (P.A. 84 -952 and P.A.
89 -460), that portion of Available Ceiling remaining unused by a Home Rule Unit, other than a
municipality with over 2,000,000 inhabitants, as of May 1 of each calendar year, shall be, on June 1 of
each calendar year reserved to the Governor's Office for reallocation; and
WHEREAS, under the Illinois Private Activity Allocation Act, the Village may reallocate to IDFA
any remaining unused portion of its Available Ceiling; and
WHEREAS, IDFA, in cooperation with the other companies utilizing the Village's IRB
allocation, will pay the Village a 1 % closing fee in consideration for using the Village's Volume Cap;
and
WHEREAS, the Village will report this transfer of approximately $2,100,000 in Volume Cap for
IDFA to the Governor's Office, as dictated by the Governor's Office allocation guidelines; and
WHEREAS, it is in the best interests of the Village to transfer and allocate its approximately
$2,100,000 in unused Available Ceiling to IDFA in order to (1) further leverage the Village's Home
Rule Ceiling to enable the financing of more projects, and (2) increase the probability of. receiving
IDFA Volume Cap to finance other projects in the Village of Buffalo Grove, and
•
•
WHEREAS, IDFA would allow the Village to designate other priorities for-financing all potential
projects to be financed using the available transferred Available Ceiling during 1999, as appropriate.
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. The Village of Buffalo Grove hereby transfers and reallocates its remaining, unused
Available Ceiling of approximately $2,100,000 to IDFA for the purpose of enabling IDFA to
complete the financing of the several pending projects.
Section 2. IDFA and the Village shall both retain a copy of this Resolution in their records for a
minimum of 30 years. Notice of this Resolution together with a copy of this Resolution shall be
given in writing by the Village after passage and approval hereof.
Section 3. The Village President and Village Clerk are hereby authorized, empowered and
directed to take all necessary and advisable actions in connection with the execution and
implementation of this Resolution.
Section 4. This Resolution shall be in full force and effect from and after its passage and
approval.
AYES: 6 Marienthal, Reid, Braiman, Hendricks, Glover, Berman
NAYES: 0 - None
ABSENT: 0 - None
ADOPTED: October 18 ,1999. APPROVED: October 18 ,1999.
ATTEST:
M.
Villag Jerk