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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: August 6, 2015
SUBJECT:
A Resolution Authorizing the Execution of an Intergovernmental Agreement Between the City of Aurora and West Aurora School District No. 129.
PURPOSE:
To obtain the approval of the City Council of a proposed resolution that would authorize the execution of an intergovernmental agreement with the West Aurora School District 129 pertaining to the transfer of the city's allocation of volume cap for qualified energy conservation bonds (QECBs) to the school district.
BACKGROUND:
Through the Energy Improvement Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009, the City of Aurora received authority (volume cap) from the federal government to issue up to $1,778,201 in QECBs. The federal government established this authority during the last recession in an effort to stimulate economic activity. These bonds can generally be issued to finance capital expenditures that accomplish the following purposes:
1. Reduce energy consumption in publically owned buildings by at least 20%.
2. Implement green community programs.
3. Develop rural capacity, specifically involving the production of electricity from renewable energy resources.
4. Support energy-related research facilities, research grants and research.
5. Implement mass commuting and related facilities that reduce energy consumption and pollution.
6. Design/run demonstration projects to promote the commercialization of energy-related technologies and processes.
7. Launch public education campaigns to promote energy efficiency.
All (100%) of the proceeds from the issuance of QECBs must be devoted to qualified energy conservation purposes.
From a national standpoint, very few QECBs have been issued because of the restrictive eligibility criteria.
Interest earned by the owner of a QECB is subject to federal income taxation. However, ...
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