VILLAGE OF ORLAND PARK - File #: 2011-0534

• File #: 2011-0534
• Version: 1
• Name: An Ordinance to provide for the issuance fo General Obligation Refunding Bonds, Series 2011 - Ordinance
• Type: ORDINANCE
• Status: PASSED
• File created: 8/11/2011
• In control: Board of Trustees
• On agenda: 8/15/2011
• Final action: 8/15/2011
• Title: DUE TO THE SIZE OF THIS ORDINANCE - PRINT ORDINANCE FROM ATTACHMENTS An Ordinance to provide for the issuance for General Obligation Refunding Bonds, Series 2011 - Ordinance

Date	Ver.	Action By	Action	Result
8/17/2011	1	Village Clerk	PUBLISHED
8/15/2011	0	Board of Trustees	PASSED	Pass
8/11/2011	0	Finance Department	INTRODUCED TO BOARD

Title

DUE TO THE SIZE OF THIS ORDINANCE - PRINT ORDINANCE FROM ATTACHMENTS

An Ordinance to provide for the issuance for General Obligation Refunding Bonds, Series 2011 - Ordinance

History

Recently, the Village’s financial advisor, Speer Financial, Inc., advised staff of a potential refunding opportunity on the Village’s outstanding General Obligation Bonds - Series 2003.  The 2003 bonds were originally issued to partially refund General Obligation Bonds, Series 2000.  As per the attached Refunding Analysis, the estimated net present value savings to be realized by issuing the refunding bonds is estimated at $645,000, or 6.68%.  This savings amount reflects all issuance costs.   

The attached Bond Ordinance, Escrow Agreement and Bond Order are for informational purposes only.  After the bid opening at approximately 10:00am on Monday, August 15, 2011, the attached Ordinance and Order will be completed with all pertinent information.  Speer Financial, Inc. (financial advisor) and Arnstein & Lehr LLP will be delivering the completed documents to the Board for formal approval at the August 15^th Board Meeting.  At this time, Speer will provide the Board with the details of the sale and the actual savings amount to be realized by the refunding. 

Both rating agencies, Moody’s and S&P have reaffirmed the Village’s bond rating for this issuance, as well as for the Village’s overall outstanding debt; the Village’s rating with Moody’s is Aa1 and with S&P is AA+.

Financial Impact

Decreased future interest costs on the refunding bonds will equate to a lower debt service levy in future years.  The Village’s outstanding principal debt after issuance of these refunding bonds will be $79.79 million.

Recommended Action/Motion

I move to pass Ordinance Number  4668 entitled: AN ORDINANCE PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011, OF THE VILLAGE OF ORLAND PARK, COOK AND WILL COUNTIES, ILLINOIS, AUTHORIZING THE EXECUTION OF AN ESCROW AGREEMENT IN CONNECTION THEREWITH AND PROVIDING FOR THE LEVY AND COLLECTION OF A DIRECT ANNUAL TAX FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS AND THE ABATEMENT OF A PORTION OF TAXES PREVIOUSLY LEVIED

And

I move to authorize the execution of the Bond Order and Notification of Sale.