ACTION REQUESTED:
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Communications from the City Manager with a Request to Adopt an ORDINANCE reserving 2018 PRIVATE ACTIVITY BOND VOLUME CAP in the Amount of $12,075,735.
Body
BACKGROUND: Each year the City of Peoria receives an allocation known as Volume Cap from the State of Illinois for Private Activity Bonding. This Volume Cap can be used for either Industrial Revenue Bonds or one of three financing mechanisms for housing: Single-Family Revenue Bonds, Multi-Family Revenue Bonds, or Mortgage Credit Certificates. As in the past, the City of Peoria will make the Cap first available for Industrial Revenue Bonds. If industrial/manufacturing projects do not seek to use the allocation, the City will then utilize the bonds for eligible housing programs.
The City’s Volume Cap must be reserved by April 30, 2018, or it reverts back to the State of Illinois. Approval of the attached ordinance reserves the Volume Cap, but does not allocate its specific use.
FINANCIAL IMPACT: For 2018, home rule units of government are allocated $105 (note additional $5 per capita from previous years) capita of Private Activity Volume Cap. Using this formula, Peoria’s allocation equals $12,075,735 based upon the State assigned population of 115,007.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The City of Peoria will reserve its 2018 Volume Cap in the amount of $12,075,735 for use in a qualified project.
IMPACT IF DENIED: State law requires that all home-rule municipalities reserve their allocation by April 30, 2018. Failure to comply with this deadline will result in the City of Peoria 2018 Volume Cap reverting back to the State of Illinois.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
2. Reinvest in neighborhoods.
DEPARTMENT: City Manager's Office