ACTION REQUESTED:
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Communication from the City Manager and Finance Director/Comptroller with a Request to AUTHORIZE the City Manager to Sign the Second Amendment to the PEORIA COUNTY and the CITY OF PEORIA INTERGOVERNMENTAL AGREEMENT for the Improvement and JURISDICTIONAL TRANSFER of RADNOR ROAD and WILHELM ROAD, Commonly Known as the GROWTH CELL 1A AGREEMENT, to Allow Either Party to Pay Its Entire Debt Service Off During the Course of the Agreement to Either Restructure the Bonds or Place Funds in Escrow for the Purpose of Future Payment.
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BACKGROUND: Peoria County and the City of Peoria entered into an intergovernmental agreement for the improvement, upgrade, maintenance and jurisdictional transfer of Radnor Road and Wilhelm Road in 2006. This is commonly known as the Growth Cell 1A Agreement.
The agreement includes a provision calling for an annual pledge of property tax revenues from the County and the City. The agreement provided that the County would pledge the County's incremental property taxes generated within the Growth Cell 1A area and the City would pledge 50% of the City's property taxes generated within the Growth Cell 1A area to be used to make the debt service payments for the 2006 Special Service Area Bonds.
From the inception of the Growth Cell 1A, the pledged property taxes revenues have exceeded the amount required for the annual debt service. As a result, the Second Amendment to the Peoria County and City of Peoria intergovernmental agreement known as Growth Cell 1A Agreement will provide for the ability of the parties to either restructure the Bonds or place funds in escrow for the purpose of future payment. It is the recommendation of staff to call the 2006 Special Service Area Bonds thereby saving the City $321,627.50 in future interest cost relating to the bonds.
FINANCIAL IMPACT: By providing the ability to call bonds as a result of excess pledged revenues the City will save $321,627.50 in future interest co...
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