S-930 - 04/13/1999 - BOND - Ordinances Supporting Documents f
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VILLAGE OF OAK BROOK �
12LIO OAK BROOK ROAD
OAK BROOK, ILLINOIS 60523-2255
O R A N D IT M PHONE: 630 990-3000
FAA: 630 990-0816
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DATE: April 9, 1999- I.
TO: Village President and Board of Trustees
SUBJECT: Ordinance Authorizing General Obligation Alternate Bands
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RECOMMENDATION (if the Board chooses to take the Bell step in the isauanee
That the Village Board approve the attached ordinance which would
authorize issuance of$10,000,000 in General Obligation Alternate Bonds and begin the
backdoor referendum process. _
On March 23,the Board tabled consideration of the authorizing ordinance until the Village Attorney
and bond counsel could consult on its form and content. !'hat has now occurred and the ordinance
that would authorize issuance of $10,000,000 in General obligation alternate bonds is attached.
(You will recall that the financing plan involves initial issuance of $5,000,000 and a possible
subsequent issue of up to another $5,000,000.) A revised tentative financing timetable is also
attached.
Section 1 of the ordinance states the uses to which the bond proceeds could be put. Section 2
authorizes the bonds to be issued. Section 3 pledges sales tax receipts fbr payment of the bonds.
Section 4 makes the necessary general obligation pledge. Section 5 sets up a priority of payment,
which,importantly,places other available funds of the Village ahead of ad valorem taxes. Section 7 li
directs publication and specifies the backdoor referendum provisions.
Passage of the authorizing ordinance would trigger publication of the ordinance and notice of a
public hearing, which would take place on April 27. Publication of the authorizing ordinance also
begins the 30-day backdoor referendum period, which would end on May 17. Please note that the
petition threshold is 7.5% of the registered voters, not 10% as earlier discussed (the 10% threshold
applies in cases where enterprise fund revenues are pledged for payment of the bonds). The slumber
of valid signatures required to prevent issuance without a referendum would be 448.
The time period involved from the date of ordinance adoption to actual bond sale can be as short as
approximately 50 days. Please note, however, that the revised timetable contemplates a final go/no
ll't� O�Trua�t>e
April 9, 195
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go decision by the Board alter the end of the 30-day period and before proceeding with the
mechanics of the sale. This results in a bond sale on July 13 and delivery of the proceeds on August
S, about a month Inter than if the preparatory work takes place during the 30-day period. The
schedule can be compressed if the Board,so directs.
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Please let me know if you have any questions about the ordinance or tho schedule.
A tch .
Village Manager
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Attachments
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Bureau residing within the Village cannot be identified). Chief Jarvis
will fill the unexpired term of Lt. Stanfa (who resigned to allow
compliance with Ordinance G-607), with her term expiring in June
2000.
VOICE VOTE: Motion carried with Trustee McInerney voting nay.
B. ORDINANCES &RESOLUDQNS:
1) 9- P- -930 ORn.99-BND--co-Fl
AUTHORIZING THE ISSUU. !QE F $10,000,000 GENERAL CIP-S-930
F THE V 41L OBLIGATI
QAK HQQK,ILLINOIS FM JUG PURPOSE QF NANC.M ALTERNATE BONDS
CAPITAL IMPROVEMENTS: FOR FINANCING
CAPITAL IMPROVE-
On March 23, 1999, the Village Board tabled consideration of the M]WS
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authorizing ordinance until the Village Attorney and bond counsel j
could consult on its form and content. That has now occurred and the
ordinance that would authorize issuance of $10,000,000 in General
obligation alternate bonds is now being proposed. The financing plan
involves initial issuance of $5,000,000 and a possible subsequent
issue of up to another$5,000,000.
Section I of the ordinance states the uses to which the bond proceeds
could be put. Section 2 authorizes the bonds to be issued. Section 3
pledges sales talc receipts for payment of the bonds. Section 4 makes
the necessary general obligation pledge. Section 5 sets up a priority
of payment, which, importantly, places other available funds of the
Village ahead of ad valorem taxes. Section 7 directs publication and
specifies the backdoor referendum provisions.
Passage of the authorizing ordinance would trigger publication of the
ordinance and notice of a public hearing, which would take place on
April 27, 1999. Publication of the authorizing ordinance also begins
the 30-day backdoor referendum period,which would end on May 17,
1999. The petition threshold is 7.5% of the registered voters, not
10% as earlier discussed (the 10% threshold applies in cases where
enterprise fund revenues are pledged for payment of the bonds). The
number of valid signatures required to prevent issuance without a
referendum would be 448.
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The time period involved from the date of ordinance adoption to
actual bond sale may be as short as approximately 50 days. The
revised timetable contemplates a.final golno-go decision by the Board
after the end of the 30-clay period and before proceeding with the
mechanics of the sate. `11tis results in a bond sale or, July 13, 1999
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VILLAGE OF OAK TWOOK Minutes 5 of 20 April 13, 1
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and delivery of the proceeds on August 5, 1999, about a month later
than if the preparatory work takes place during the 30-day period.
The schedule may be compressed if the Board so directs.
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Motion by Trustee McInerney, seconded by Trustee Kenny, to pass
Ordinance 99-BND-00-FI-GIP-S-930, "Ordinance Authorizing The
Issuance Of S10,000,FIdO General Obligation Alternate Bonds Of The
Village Of Oak Broom,Illinois For The Purpose Of Financing Capital
Improvements",as presented and waive the full reading thereof.
Trustee Savino stated he would abstain from voting as he felt the
backdoor referendum process unsavory, and the Village would have
to pledge real eitate taxes when the Village has funding available for
the capital imp.niverneriM
Trustee Shumate concurred with Trustee Savino's comments. He
stated the Five-Year Financial flan of$6,500,000 in improvements
for the Village Hall and Fire Department has not been improved. He
requested a Committee-of-the-Whole meeting so that residents could j
speak to the issue,
Trustee McInerney agreed that all of the projects have not been
approved but initially the Village will offer $5,000,000 in general
obligation bonds. He noted sales tax revenue has decreased, and he is
concerned with what may occur in Washington. The agenda of the
cities is not being met in the National League of Cities. There may be
a five-year moratorium on the ability to tax.
President Bushy suggested offering a Monday night meeting and
Saturday workshop to discuss the bond issue and stated petitions
against the proposal will be available at those meetings.
Village Manager Veitch explained that this is a finance process that is
allowed by any municipality, as State legislation prohibits non-home
rule communities from certain finance methods. Village Attorney it
Martens indicated President Bushy may vote. He further indicated II
that case law states that an abstention goes with the majority vote to
an aye vote.
ROLL CALL VOTE: I,I
Ayes: d a Trustees Caleel, Kenny, McInerney and President
Bushy. li
Nays: I M Trustee Shumate.
Absent: I - Trustee Bautecki. Ifl
VILLAOE OF OAK. BROOK Minutes 6 of 20 April 13, 1999
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Abstain: l - Trustee Savino vote is counted with the I'
majority and,therefore given the effect of an aye.) !
Motion carried.
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2) oRD.99-Zo-R-
UZQNINQ A CE�'TAIN.TARCEL TO THE R-3 SMQLE- S-�931
FAMILY DETACHE ENCE S - $ REZONING TO --3
U11DIVISION-1VFSTCI"I ` TER PARK: SINGLE DA��tIL
DETA� RES
BECKS:'.'S RE
Discussed and direction given at the Regular meeting of March 23, DIVISION -
1999. The ordinance rezones a portion of Becker's Resubdivision CHESTER PAW
from CR (Conservnion/Recreation District) to R-3 (Single-Family
Detached Residence District).
Motion by Trustee Savino, seconded by Trustee Caleel, to pass
Ordinance 99-2;0-R-EXI-S-931,"An Ordinance Rezoning A Certain
Parcel To The R-3 Single-Fwaidy Detached Residence District -
Becker's Resubdivision - Westchester`Park:, as presented and waive
the full reading thereof. ROLL CALL VOTE:
Ayes: 5 - Trustees Caleel, Kenny, McInerney, Savino and
Shumate.
Nays: 0 - None.
Absent: 1 - Trustee Barteeki. Motion carried. i
3)RESOLUTION 99-SD-PEEP-R-722 A RESOLUTION RES.99-SD-PP
APPROVING THE PRELI ARY AND FINAL PLAT OF R-722
SUBDIVISION KNOWN A5 -SPQRTS CORE/WESTCHESTTER, APPROVING THE
PARK SUBDIVISION" (Egmerly A Portion Of Lot 2 Of PRELIMINARY
Becker's Resubdivision): FINAL PLAT O
StIBDIVISIUN !
AS "SPORTS COI l
Discussed and direction given at the Regular meeting of March 23, W STCHBSTEEt P Rx
1999. The resolution approves the preliminary and final plat of the SUBDIVISION
"Sports Core/Westchester Park Subdivision." subject to the following of rZyp� PE crti
conditions set forth in Section 2 of the Resolution: Resubdivision
(a) That the requirements for sidewalk, curb and gutter, and street I 4
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lights are waived;
(b) That the final plat and final engineering plans be revised as
necessary and the same approved by the Village Engineer;and
(c) That all other requirements, conditions and standards of the
Subdivision Regulations of the Village of oak Brook, except as �
waived or limited by this Resolution, shall be applicable to the
resubdivision and development of said Sports Core/Westchester
z; Park Subdivision.
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VILLAGE OF OAK BROOK Minutes 7 of 20 April 13, 1999
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