ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to Approve a RESOLUTION Allocating Qualified Energy Conservation Bond Volume Cap Received by the City of Peoria, Peoria County, Illinois to Community College District No. 514, Counties of Peoria, Tazewell, Woodford, Marshall, McLean, Bureau, Logan, Livingston, Mason and Stark and State of Illinois to be Used for Qualified Conservation Purposes Under Applicable Law in the Amount of $1,190,634.00.
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BACKGROUND:
In October 2008, as part of the Energy Improvement Extension Act of 2008, which was included in the Emergency Economic Stabilization Act of 2008, Congress enacted Section 54D of the Internal Revenue Code of 1986, as amended, permitting State and local governments to issue qualified energy conservation bonds to finance qualified conservation purposes. The proceeds of qualified energy conservation bonds must be used to pay for one or more "qualified conservation purposes" as defined in the Applicable Law.
The Law states that qualified energy conservation bonds can be issued by a State or unit of local government pursuant to an allocation by the Secretary of the Treasury of a portion of a nationwide volume limitation. The State or unit of local government that receives a portion of the nationwide volume cap may allocate all or a portion of such volume cap to ultimate beneficiaries.
The Secretary of the Treasury has awarded the State of Illinois an allocation of $133,846,000 for qualified energy conservation bonds and the Governor's Office of Management and Budget has allocated a portion of its qualified energy conservation bond allocation in the amount $1,190,634 to the City of Peoria, Peoria County, Illinois.
The attached Resolution allocates the City of Peoria's qualified energy conservation bond allocation in the amount of $1,190,634 to Community College District No. 514, Counties of Peoria, Tazewell, Woodford, Marshall, McLean, Bureau, Logan, Livingston, Mason and Stark and State of Illinois to be used for qualified conservation purposes.
Illinois Central College intends to use the qualified energy conservation bonds for improvements to Arbor Hall on the ICC North Campus. A brief description of the Arbor Hall Project provided by ICC is attached for additional information.
Illinois Central College has approached the County of Peoria for their allocation of qualified energy conservation bonds in the amount of $726,949. The County's Finance and Legislative Committee has approved the allocation to be presented to the County Board for approval at its regularly scheduled board meeting on February 13, 2014.
FINANCIAL IMPACT: There is no financial impact on the City.
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: The City of Peoria will allocate $1,190,634 of its qualified energy conservation bond allocation to Community College District No. 514 (Illinois Central College)
IMPACT IF DENIED: The City would retain is qualified energy conservation bond allocation in the amount of $1,190,634.
ALTERNATIVES: The City Council could allocate any portion of the City's allocation of $1,190,634.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Grow Peoria: Businesses, Jobs, and Population
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Support sustainability.
DEPARTMENT: Finance