ACTION REQUESTED:
Title
Communication from the City Manager and Corporation Counsel with a Request to ADOPT an ORDINANCE Approving the Private Activity BOND Allocation of 2023 Volume Cap to the TRI-COUNTY RIVER VALLEY DEVELOPMENT AUTHORITY.
Body
BACKGROUND:
The City of Peoria receives an annual Volume Cap allocation as a Home Rule Unit of government. The Volume Cap allocation for 2023 is $13,399,920. The calculation of the Volume cap for 2023 is based on $120 per resident. Based on Section 146 of the Internal Revenue Code of 1986, as amended (the "Code"), the number of residents for 2023 has been calculated based on 111,666 residents. The "Code" allows the volume cap to be allocated to certain tax-exempt private activity bonds.
In addition to the Code above the Illinois Private Activity Bond Allocation Act, (the "Act"), provides that a home rule unit of government may transfer its allocation of volume cap to any other home rule unit of government, the State of Illinois or any State agency, or any non-home rule unit of government.
Under the authority of the Statues above the City of Peoria has made Volume Cap allocation in the past.
Tri-County River Valley Development Authority (the “TCRVDA”) would safekeep the volume cap for the City of Peoria and could carry forward that bond allocation for three additional years if not used. TCRVDA would use the bonding authority to support regional economic development and affordable housing projects. The recommendation is to allocate the entire Volume Cap to TCRVDA in the amount of $13,399,920. This year we have no other pending projects competing for volume cap allocations.
FINANCIAL IMPACT: No financial impact to the City budget
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: Regional projects would be supported by the bond issues.
IMPACT IF DENIED: Bond allocation would revert to the State of Illinois.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER:
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in Neighborhoods
DEPARTMENT: Legal