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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: July 6, 2020
SUBJECT:
Renewal of $10. 0 million Line of Credit - Fifth Third Bank.
PURPOSE:
To approve the renewal of the $10.0 million Line of Credit (LOC) with Fifth Third Bank for one year.
BACKGROUND:
The City initially approved LOCs with Old Second Bank and Fifth Third Bank in 2019 for $10.0 million. The renewal of the LOC for Old Second was due in June however the LOC for Fifth Third is due now.
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DISCUSSION:
The attached tables show the projected use and payoff of the $20.million in total LOC by the bank issuing the LOC. Certain draws in the future could be changed between banks, as well as projected payoffs of the LOC.
The renewal LOC, has slightly different interest rate terms due to the London Interbank Loan Rate (LIBOR) being so low in today's economy. The rates actually incurred during 20-21 are projected to be at or below those in 2019-2020 . The amendment renewing the LOC agreement is attached.
IMPACT STATEMENT:
Approval of this resolution will renew this ongoing line of credit, which is necessary for the City's continued economic development project financing.
RECOMMENDATIONS:
That this resolution be approved and forwarded to the Committee of the Whole.
cc: enter name of originating Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution to approve the renewal of the $10.0 million Line of Credit (LOC) with Fifth Third Bank for one year.
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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 Ci...
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