Title
Tax Abatement Ordinance for the Series 2015A 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 2015A 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 2015A. 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 FY19 principal and interest debt service on Series 2015A. Therefore, staff recommends the abatement of the Series 2015A General Obligation Bond property tax levy for Tax Year 2018.
Body
An ordinance abating the tax heretofore levied for the tax year 2018 and collected in Fiscal Year (FY) 2019 to pay debt service on $90,000,000 General Obligation Bonds, Series 2015A (Sales Tax Alternate Revenue Source) of the County of Lake, Lake County, Illinois.
WHEREAS, the County Board (the "Board") of Lake County, Illinois (the "Issuer"), by ordinance adopted on April 14, 2015 (the "Ordinance"), authorized the issuance of $90,000,000 General Obligation Bonds, Series 2015A (Sales Tax Alternate Revenue Source) (the "Bonds"), and the levy of a direct annual tax sufficient to pay principal and interest on the Bonds; and
WHEREAS, the Issuer will have Pledged Sales Tax Revenues (as defined in the Ordinance) available for the purpose of paying the debt service due on the Bonds during the next succeeding bond year; and
WHEREAS, it is necessary and in the best interests of the Issuer that the tax heretofore levied fo...
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