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HomeMy WebLinkAbout044-R-19 Amending the City of Evanston Budget Policy4/17/2019 44-R-19 A RESOLUTION Amending the City of Evanston Budget Policy WHEREAS, the City of Evanston, Cook County, Illinois (the "City') has adopted a Budget Policy (the "Budget Policy") pursuant to the proceedings of December 18, 2000; and WHEREAS, a paragraph of the Budget Policy, relating to the Debt Service Fund, must be amended to accommodate current needs of the City and the recommendations of the City's bond counsel; and WHEREAS, on April 8, 2019, the City Council adopted Resolution 35-R- 19, amending the City of Evanston Budget Policy to state that the Tax Supported General Obligation debt shall not exceed $152,000,000; and WHEREAS, upon further consideration and recommendations of the City's bond counsel, the Tax Supported General Obligation debt limit must be increased from the approved amount in Resolution 35-R-19 from $152,000,000 to $160,000,000, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS, THAT: SECTION 1: The Budget Policy is hereby amended to read as follows: Debt Service Fund. General Obligation Debt of the City means debt (viz., bonds) for which an unlimited real property tax levy is made or pledged for payment. General Obligation Debt shall be allocated into two categories. Self - Supporting General Obligation Debt shall mean General Obligation Debt which, at the time of issuance, is expected and intended by the Treasurer to be payable out of a source of funds other than the City's general real property tax levy, thus permitting the abatement and avoidance of the property tax levy to pay such bonds; examples of Self Supporting General Obligation Debt include (without limitation) bonds payable from the Water Fund or the Sewer Fund, bonds 44-R-19 payable from special assessments, bonds payable from tax increment financing areas, and bonds payable from Motor Fuel Taxes. Tax Supported General Obligation Debt shall mean all other General Obligation Debt, which is expected and intended to be paid from a general real property tax levy. General Obligation Debt shall not include any obligation of the City not denominated a bond, including, without limitation, short term notes or warrants or other obligations which the City may issue from time to time for various purposes and to come due within three (3) years of issuance. General Obligation Debt does not include bonds which have been refunded or decreased and which, as a consequence of same, are provided for from a dedicated source of funds or investments. Self - Supporting General Obligation Debt shall not be limited by this Budget Policy. Tax Supported General Obligation Debt shall not exceed $160,000,000 in aggregate principal amount. As of December 31, 2019, the Self -Supporting General Obligation Debt shall not exceed $152,000,000. Going forward, the Self -Supporting General Obligation Debt (debt limit would be applicable to the number as of December 31St of each year), which limit is expressly subject to increase from time to time by action of the City Council as the needs of the City may grow. General Obligation Debt issued as so-called zero coupon bonds or capital appreciation bonds shall be counted as debt in the original principal amount issued. The Treasurer shall at all times keep a book or record of all General Obligation Debt and its proper allocation. The Treasurer's statements as to the allocation of General Obligation Debt into these two categories shall be conclusive. Notwithstanding this statement of policy, all bonds or other obligations by whatever name designated of the City duly authorized to be issued by the City Council shall be valid and legally binding as against the City, and there shall be no defense of the City as against any bondholder or other obligation holder on the basis of this policy. SECTION 2: This resolution shall be effective immediately, and the Budget Policy shall be accordingly restated. SECTION 3: This resolution may only be amended by subsequent resolution or ordinance as adopted by the City Council. This resolution and the debt limit stated herein supersedes the previously authorized resolution referenced in the recitals, 35-R-19. SECTION 4: All motions, resolutions and orders, or parts thereof, in conflict herewith, are, to the extent of such conflict, hereby repealed. -2- Attest: Devon RePCityyfk Adopted: A 1 Z?4uP , 2019 44-R-19 Stephen H. agerty, Approved to form: "- 4,&'1..4' �Xftw4,2 Michelle L. Masoncup, Corpor tion Counsel —3—