Title
Tax Abatement Ordinance for the Series 2010A General Obligation Bonds.
Staff Summary
* All general obligation debt is backed by a property tax levy as its revenue source. When alternate revenue streams are available to fund the ongoing debt service, however, general obligation bonds can be issued as "alternate revenue" bonds.
* Series 2010A is one such bond, which is backed by General Fund sales tax revenue as its alternate revenue stream.
* Each year, the Finance and Administrative Services Department assesses whether there are sufficient sales tax revenues available to pay the debt service payments for Series 2010A. Once that determination is made, Finance recommends Board action to abate the property tax levy that would have otherwise automatically been extended.
* The General Fund does have sufficient sales tax revenue funds available for payment of Fiscal Year 2019 principal and interest debt service on Series 2010A. Therefore, staff recommends the abatement of the Series 2010A General Obligation Bond property tax levy for Tax Year 2018.
Body
Ordinance abating the tax heretofore levied for the tax year 2018 and collected in Fiscal Year (FY) 2019 to pay the principal of and interest on $31,410,000 Taxable General Obligation Bonds (Sales Tax Alternate Revenue Source), Series 2010A, of The County of Lake, Illinois.
WHEREAS, the County Board of Lake County, Illinois by ordinance, adopted on October 12, 2010 (as supplemented by the Bond Order executed in connection therewith, the "Ordinance"), did provide for the issue of $31,410,000 Taxable General Obligation Bonds, Series 2010A (the "Bonds"), and the levy of a direct annual tax sufficient to pay the principal of and interest on the Bonds; and
WHEREAS, the Sales Taxes (as defined in the Ordinance) have been determined by the Treasurer to provide an amount not less than 1.25 times debt service of all outstanding Bonds (as defined in the Ordinance) in the next succeeding bond year (May 30 an...
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