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TO: Mayor John Laesch
FROM: Jennifer Stallings, City Clerk
DATE: September 5, 2025
SUBJECT:
Seeking approval to execute the documents required to Renew the Line of Credit (LOC) in the amount of $10 million with Old Second National Bank for a one-year term expiring on June 30, 2026.
PURPOSE:
To approve the renewal of the $10 million Line of Credit (LOC) with Old Second Bank for one year.
BACKGROUND:
The City Council authorized the Renewal of the Line of Credit (LOC) with Old Second National Bank on August 26, 2025. Resolution R25-261 is attached for your information. At the time the renewal was authorized by Council, Old Second National Bank had not provided the City with an Agreement for Council's review. Upon review of the documents requiring signature, it was determined that there were documents authorizing specific actions by the Mayor that require approval by the City Council. The documents requiring signature are attached as Exhibit A consisting of the following:
1. Governmental Certificate
2. Change in Terms Agreement
3. Disbursement Request and Authorization
DISCUSSION:
While most of the language contained in the attached appears to be standard with respect to the LOC, the Governmental Certificate was not anticipated as a requirement to close the renewal of the LOC and was, therefore, not discussed when the item was presented on August 26th. Approval by the City Council is necessary prior to signature by the required parties.
IMPACT STATEMENT:
Approval of this resolution will allow the required documents to be executed to renew this ongoing line of credit through Old Second National Bank, which is necessary for the City's continued project financing when bond financing is not immediately practical.
RECOMMENDATIONS:
Staff recommends approval of this Resolution.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the execution of documents to renew the Line of Credit (LOC) in the amount of $10 million with Old Second National Bank for a one-year term expiring on June 30, 2026.
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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, The City of Aurora entered into a Line of Credit Agreement with Old Second Bank through the approval of resolution R19-159, and;
WHEREAS, this Line of Credit must be renewed on an annual basis, and;
WHEREAS, the renewal of the line of credit will provide for the continued funding for projects throughout the City Aurora when long-term bond financing is not immediately practical;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the Mayor and City Clerk are hereby authorized to sign the attached Governmental Certificate, Change in Terms Agreement and Disbursement Request and Authorization for the Line of Credit agreement for $10 million with Old Second Bank extending the agreement for an additional one-year term to expire on June 30, 2026.