Regular Village Board meetings are typically held at 7:00 p.m., the first three Tuesdays of each month in Council Chambers of Village Hall (room 201), 123 Madison St. When a Regular Meeting falls on a holiday, the meeting typically is held the following night. The Village Board also meets in special sessions from time to time. However, dates and times of Special Meetings can vary and may change.

File #: ORD 20-084    Name:
Type: Ordinance Status: Passed
In control: President and Board of Trustees
On agenda: 9/21/2020 Final action: 9/21/2020
Title: An Ordinance Amending the Fiscal Year 2020 Annual Budget
Attachments: 1. Budget Amendment Ordinance Q3 2020.pdf, 2. ORDINANCE AMENDMENT ATTACHMENT.pdf, 3. Finance Reclass $350,666 Fiber optics.pdf

Submitted By                     

Steve Drazner, CFO

 

Reviewed By

LKS

 

Agenda Item Title

Title

An Ordinance Amending the Fiscal Year 2020 Annual Budget

 

End

Overview

Overview

This Ordinance amends the FY20 Budget to reallocate $350,667 from the Parking Fund to the Equipment Replacement Fund for the Fiber Infrastruture capital project.  This reallocation is necessary to reduce the Parking Fund’s share of this project from $850,667 to $500,000 in order to classify the upcoming 2020A bond issue as tax exempt.

 

End

Recommendation

Recommendation

Adopt the Ordinance.

 

Fiscal Impact

There is no overall net change to the FY20 Budget.

 

Background

In order for bond counsel to issue an opinion on the tax exempt status of the upcoming Series 2020A bond issue which will be used toward the Lake Street and Fiber Infrastruture capital projects, certain rules must be followed to ensure that the proceeds will not exceed what the Internal Revenue Service defines as a de minimis for private enterprise (profit motive) purposes.

 

The most efficient and effective way to ensure tax exempt status is to reduce the amount of the proceeds that will be applied towards funding the Fiber project allocated in the Parking Fund. By reducing proceeds to pay for this project in the Parking Fund to $500,000, the funding for this project falls well within the 5% de minimis threshold should the Village decide in the future to lease out a portion of the fiber line to private businesses. 

 

 

Alternatives

N/A

 

Previous Board Action

N/A

 

Citizen Advisory Commission Action

N/A

 

Anticipated Future Actions/Commitments

N/A

 

Intergovernmental Cooperation Opportunities

N/A