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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: November 5, 2019
SUBJECT:
An Ordinance authorizing the issuance and sale of adjustable rate demand economic development revenue bonds, aurora university, in one or more series, of the City of Aurora, Kane, DuPage, Will and Kendall Counties, Illinois, in an aggregate principal amount not to exceed $45,000,000, and confirming the sale thereof; authorizing the execution and delivery of one or more loan agreements, trust indentures, bond purchase agreements and related documents; authorizing the distribution of one or more official statements; approving the delivery of one or more letters of credit, one or more reimbursement agreements and one or more remarketing agreements; and authorizing certain related matters.
PURPOSE:
As a home rule municipality, the City of Aurora may issue Private Activity Bonds for qualified not-for-profit entities. Aurora University and the City have partnered in this issuance in the past and the University would like to refinance the 2004 Bonds and to issue new bonds for major capital improvements on the Aurora/Montgomery campus. A public hearing will be held giving notice for this issuance, and the Village of Montgomery has already held such a hearing (they will not be issuing any bonds)
BACKGROUND:
The City of Aurora and Aurora University have worked together to help build a premier campus in Aurora. Part of this relationship has involved the City's assistance through the issuance of conduit financing in the form of Private Activity Bonds. Private Activity Bonds do not involve the City financial statements in any manner other than the recording of the transaction in the Comprehensive Annual Financial Report Notes and in the recording of modest issuance fees that are paid by the University. The City has confirmed that no liability for these bonds are actual or moral can be incurred by the City through consultation with our bond co...
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