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TO: Mayor Richard C. Irvin
FROM: Christopher A. Minick, Chief Financial Officer/City Treasurer
DATE: April 20, 2023
SUBJECT:
An Ordinance providing for the issuance of not to exceed $35,000,000 General Obligation Bonds, Series 2023A, of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, for the purpose of financing capital improvements in and for said City, providing for the levy of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the proposed sale of said bonds to the purchaser thereof.
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the Series 2023A General Obligation (GO) Bonds.
BACKGROUND:
The 2023-2032 Capital Improvements Plan and 2023 City Budget call for the financing of various capital projects through the issuance of General Obligation Bonds of the City. The major projects include continued construction costs for the Public Works Facility, the relocation and construction of various fire stations in the City to improve response times and better meet service demands, River Edge Park expansion, and various street and intersection improvement projects.
The attached draft ordinance is the first official step in selling bonds to finance these projects. The ordinance is structured as a "parameters ordinance" and sets forth various conditions under which sale of the bonds is approved, providing the terms of the bonds are within certain parameters as defined in the ordinance. We have structured the ordinance to provide some flexibility to take advantage of the most beneficial bond structure given market conditions at the time of bond sale.
DISCUSSION:
We intend to sell the 2023A GO Bonds the week of June 12, 2023 to provide resources for the aforementioned projects.
The final bond ordinance will be prepared after the bonds are sold and the exact interest costs are known.
We do anticipate that there will be a subsequent bond issuance later in 2023 to finance the City's contribution for the Casino construction and relocation project. Nothing related to those bonds is included in the bond ordinance draft attached. The casino project bonds will have their own ordinance and related documents that will be brought forward later in 2023.
IMPACT STATEMENT:
Adoption of the Ordinance will allow for the financing and timely construction of various capital improvements and projects.
RECOMMENDATIONS:
That the City Council approve the attached, proposed ordinance that would authorize the issuance of the city’s 2023A GO Bonds.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance providing for the issuance of not to exceed $35,000,000 General Obligation Bonds, Series 2023A, of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, for the purpose of financing capital improvements in and for said City, providing for the levy of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the proposed sale of said bonds to the purchaser thereof.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the City has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within forty (40) years from the time it is incurred without prior referendum approval; and
WHEREAS, the City Council of the City (the “City Council”) has considered the needs of the City and does hereby determine that it is necessary, desirable and in the best interests of the City to borrow at this time to finance capital projects in and for the City, including RIVER Edge Park expansion, Public Works facility construction, fire station relocation and construction, and roadway intersection and other infrastructure projects, together with such engineering, electrical, financial, legal and other professional services related thereto as may be advisable and necessary (collectively, the “Project”); and
WHEREAS, on the 28th day of August, 1973, the City Council did adopt Ordinance Number 4340 determining the procedures to be followed in the borrowing of money for public purposes of the City and in evidence of such borrowing for the issuing of full faith and credit bonds of the City without referendum approval, such ordinance being entitled:
An Ordinance of the City of Aurora, Illinois, establishing procedures to be followed in incurring indebtedness for corporate purposes, issuing nonreferendum bonds to evidence such indebtedness and authorizing and directing the levying of a tax, without limit as to rate or amount, for the purpose of paying principal and interest on such bonds as the same become due.
which ordinance was amended by Ordinance No. 085-5353, duly adopted by the City Council on March 19, 1985 (Ordinance No. 4340 as so amended, which is also known as Section 2-319 of Division 1 of Article V of Chapter 2 of the Code of Ordinances of the City, being referred to hereinafter as the “Enabling Ordinance”); and
WHEREAS, the City Council does hereby further determine that, in order to pay the costs of the Project, it is necessary, desirable and in the best interests of the City to borrow not to exceed $35,000,000 at this time and, in evidence of such borrowing, issue full faith and credit bonds of the City in the aggregate principal amount of not to exceed $35,000,000 (the “Bonds); and
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section 1. Incorporation of Preambles. The City Council hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference.
Section 2. The City Council hereby adopts the attached Ordinance,
An Ordinance providing for the issuance of not to exceed $35,000,000 General Obligation Bonds, Series 2023A, of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, for the purpose of financing capital improvements in and for said City, providing for the levy of a direct annual tax sufficient to pay the principal of and interest on said bonds, and authorizing the proposed sale of said bonds to the purchaser thereof In its entirety.