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PROPOSED RESOLUTION
AUTHORIZATION OF DEBT SERVICE PAYMENT FROM MASTER OPERATING ACCOUNT
WHEREAS, Cook County debt service payments of $210,069,942 in outstanding debt service is due on November 15th of 2022; and
WHEREAS, The County currently has in reserve within the Debt Service Fund as of October 6, 2022, $92,789,924; and
WHEREAS, County’s General Obligation Debt is secured by and paid for by the County’s Property Tax receipts; and
WHEREAS, Amalgamated is the trustee for the County’s Series 2004C, 2009B, 2011C, 2013B and 2014A General Obligation Debt; and
WHEREAS, Bank of New York Mellon is the trustee for the County’s Series 2010D, and 2021A General Obligation Debt; and
WHEREAS, Zions is the trustee for the County’s Series 2016A, 2018, 2021B, 2021C, 2022A and 2022B General Obligation Debt; and
WHEREAS, property tax bills are not anticipated to be issued by the Cook County Treasurer until after November 15th, 2022 and there will be insufficient debt service reserves accumulated to pay for the full value of the debt service due on that date; and
WHEREAS, failing to make the proposed payments would constitute a default that could materially impact the County’s Bond rating and investors perception of the County’s credit worthiness, in turn increasing the County’s cost of borrowing; and
WHEREAS, due to judicious debt management and responsible fiscal stewardship there is sufficient unrestricted cash available within the Master Operating Account (C-Fund) to pay down the debt service owed without the need for costly borrowing or impacting County operations.
NOW THEREFORE, BE IT RESOLVED, by the Cook County Board of Commissioners, that the Cook County Chief Financial Officer or their designee, is authorized to transfer funds in an amount up to $125 Million, equal to the value required, as determined by the County’s Trustees to provide the full amount of debt service on the date of November 15, 2022; and
BE IT FURTHER RESOLVED, that the source of such funding will be the unrestricted cash available in the County’s Master Operating Account; and
BE IT FURTHER RESOLVED, that the transfer will be recognized as a transfer out from the County’s General Fund Operating Budget and a transfer in to the debt service fund that will be reversed upon receipt of the property taxes.
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