S-1331 - 03/13/2012 - SPORTS CORE - Ordinances Supporting DocumentsITEM G.G.7)
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AGENDA ITEM
Regular Board of Trustees Meeting
of
March 13, 2012
SUBJECT: Sports Core Loan
FROM: Sharon Dangles, Finance Director
BUDGET SOURCE/BUDGET IMPACT: 833 -72600 (Rentals) - $65,000
RECOMMENDED MOTION: I move that the Village Board approve Ordinance 2012 -
SC- GOLF -1331, "Authorizing a Loan from the General Corporate Fund to the Sports
Core Fund ".
Background/History:
The purchase of the golf car fleet was approved at the Village Board meeting on February 28,
2012 with E -Z -GO Textron, Inc. for a total purchase price of $245,197. E -Z -GO Textron, Inc.
was offering a 6.80% interest rate, or $16,667 on a four year lease agreement, which was too
high compared to the market. DuPage Credit Union was offering an interest rate of 1.99 %, or
$9,800 and J.P. Morgan Chase was offering 2.53 %, or $12,458. Based on the information that
was gathered, it's in the best interest of the Village to offer the Sports Core a reasonable interest
rate of 1.50 %, or 7,386. With investment returns being less than 1.00 %, this will also benefit the
Village's General Fund.
The attached ordinance is between the General Corporate Fund and Sports Core, whereas the
Village will pay E -Z -GO Textron, Inc. a payment of $245,197 and Sports Core will pay back the
Village in 4 equal installments over four (4) years plus 1.50% interest. Sports Core currently has
$65,000 budgeted this year to cover the first payment plus interest.
Below is the payment schedule set forth assuming payment for the Golf Cars are made on March
27, 2012:
1� f�
Payment Date
Loan/Price
---- -
Installmen t
Payment
Total
Interest re st -
1. 5Mo Payment
March 27, 2012
245,197.00
October 1, 2012
61,299.25
1,869.63 63,168.88
October 1, 2013
2,758.47 64,057.72
October 1, 2014
_61,299.25
61,299.25
1,838.98 63,138.23
October 1, 2015
61,299.25
919.49 62,218.74
245,197.00
7 386.56 j 252,583.56
,
Recommendation:
The Village Board approve Ordinance 2012 -SC- GOLF -1331, "Authorizing a Loan from the
General Corporate Fund to the Sports Core Fund".
ORDINANCE 2012 -SC- GOLF -1331
AN ORDINANCE AUTHORIZING A LOAN FROM THE
GENERAL CORPORATE FUND TO THE SPORTS CORE FUND
WHEREAS, on February 28, 2012, the Village President and Board of Trustees passed
Ordinance 2012 -SC- GOLF -R -1160 approving a contract by and between the Village and E -Z -GO Textron,
Inc. ( "E- Z -GO ") for E -Z -GO to provide the Village with a new fleet of golf cars ( "Golf Cars ") for a total
purchase price of $245,197.00 ( "Payment'); and
WHEREAS, the Village is making the Payment with funds from the Village's General Corporate
Fund; and
WHEREAS, the Village desires to consider the Payment from the General Corporate Fund a loan
to the Sports Core Fund, whereby the Village will be reimbursed the Village's General Corporate Fund for
the Payment over the next four years, with interest, with funds from the Sports Core Fund; and
WHEREAS, the President and Board of Trustees have determined that it is in the best interest of
the Village to enter into this Ordinance authorizing a loan from the General Corporate Fund to the Sports
Core Fund;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of,
this Ordinance as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Authorization of Loan. The President and Board of Trustees hereby authorize the
Payment made by the General Corporate Fund to be a loan of $245,197.00 from the General Corporate
Fund to the Sports Core Fund.
Section 3: Repayment of Loan. The loan authorized in Section 2 of this Ordinance shall be
due and payable from the Sports Core Fund in four installments of $61,299.25, plus 1.5 percent interest,
each due on October 1s' of each year until such time as the loan is paid off in full.
Section 4: Conflicts. All ordinances or resolutions, or parts thereof, in conflict with the
provisions of this Ordinance are hereby repealed.
Section 5: Effective Date. That this ordinance shall be in full force and effect from and after
passage and approval pursuant to law.
[SIGNATURE PAGE FOLLOWS]
APPROVED THIS 13th of March, 2012.
Gopal G. Lalmalani
Village President
PASSED THIS 13" day of March 2012.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
411061465_vl
Ordinance 2012 -SC- GOLF -1331
Authorizing Loan to
Sports Core Fund, Page 2 of 2