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Title:
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Amendment of Municipal Code Section 2-32-031 regarding debt management responsibilities
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Topic:
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MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 32 Dept. of Finance
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SUBSTITUTE ORDINANCE
Be it Ordained by the City Council of the City of Chicago:
Section 1. Section 2-32-031 of the Municipal Code of Chicago is hereby amended by inserting the language underscored as follows:
2-32-031 Djeb-Lmanagemeni policies; retention of rebate calculation agents, financial advisors, consultants,_dissemination agents and qualified independeatxeprese niaiiyes,
The chief financial officer and the comptroller shall each have authority to retain, in connection with debt obligations issued by the City, such rebate calculation agents as either such officer may deem necessary or desirable in order for such debt obligations to comply with applicable requirements of the Internal Revenue Code.
The chief financial officer shall have authority to retain, in connection with financial products and debt obligations purchased, entered into and/or issued by the City, such advisors to provide structuring, timing and related advice for such financial products and debt obligations, as deemed necessary in compliance with the applicable requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, and the regulations in connection therewith.
The chief financial officer shall have authority to retain, in connection with debt obligations issued by the City, such qualified independent representatives for selecting, retaining and monitoring the performance of the City's interest rate exchange agreements, as deemed necessary or desirable in order for such interest rate exchange agreements to comply with applicable requirements of the Dodd-Frank Act and the regulations in connection therewith. As used in this section, "interest rate exchange agreements" shall mean those certain interest rate exchange agreements entered into pursuant to an ordinance of the city council authorizing the issuance of a series of bonds.
The chief financial officer shall have authority to adopt written policies which shall address the management of the city's bond, note and other debt issuances, including the entering into of interest rate exchange agreements and hiring of advisors in connection therewith. The chief financial officer may amend such written policies from time to time. Copies of each such written policy and any amendments thereto shall be kept on file with the comptroller.
The chief financial officer shall have authority to retain, in connection with debt obligations issued by the City, such dissemination agents to assist with continuing disclosure requirements under continuing disclosure agreements entered into by the City in connection with City debt obligations as deemed necessary or desirable in order to ensure ongoing compliance with Rule 15c2-12 of the Securities and Exchange Commission and any successor or similar disclosure requirements of the federal or state government.
In connection with proposed acquisition and/or disposition of existing or new sources of revenue, whether by the City or sister agencies or entities acting on behalf of or for the benefit of the City or sister agencies (including through the issuance of debt obligations or other means), the chief financial officer shall have authority to retain financial advisors and
consultants to provide to the City structuring, timing and related advice for such proposed transactions.
(g) In connection with the administration of workers compensation claims payable, per the annual appropriation ordinance from the Chicago Midway Airport Fund and the Chicago O'Hare Airport Fund, the chief financial officer is authorized to obtain and enter into any such letter of credit or line of credit agreement as needed to secure agreements entered into and authorized by the Chairman of the Committee on Finance, provided such letter of credit or line of credit shall bear interest at a rate or rates not to exceed seven (7%) percent per annum and shall not exceed an aggregate total of fifteen million ($15.000.000] dollars. Terms exceeding these limits shall be approved by the City Council.
Section 2. This ordinance shall be in full force and effect immediately after its passage and approval.
Department of Finance
CITY OF CHICAGO
TO THE HONORABLE, THE CHAIRMAN AND MEMBERS OF THE CITY COUNCIL COMMITTEE ON FINANCE
Ladies and Gentlemen:
I transmit herewith an ordinance amending Section 2-32-031 of the Municipal Code. Your favorable consideration of this ordinance will be appreciated.
Carole L. Brown Chief Financial Officer
121 NORTH LAS ALL E STREET, SUITE 700, CHICAGO, ILLINOIS 60602
CHICAGO September 6. 2017
To the President and Members of the City Council:
Your Committee on Finance having had under consideration
A substitute ordinance concerning the authority to amend Section 2-32-031 of the Municipal Code of Chicago regarding debt management responsibilities.
Direct Introduction
Having had the same under advisement, begs leave to report and recommend that your Honorable Body pass the proposed Substitute Ordinance Transmitted Herewith
This recommendation was concurred in by
of members of the committee with
Respectfully submitted
Chairman