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 2012A
Body
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 2006. The 2006 bonds were issued to partially fund construction of the police facility at 151st & Ravinia Avenue. As per attached the Refunding Analysis, the estimated net present value savings to be realized by issuing the refunding bonds is estimated at $657,000, or 7.127% of refunding principal, net of all issuance costs.
The attached Bond Ordinance and Escrow Agreement is for informational purposes only. After the bid opening at approximately 10:00 a.m. on Monday August 20, 2012, the attached Ordinance and Escrow Agreement 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 20th board meeting. At the time, Speer will provide the Board with 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 $74.69 million.
Recommended Action/Motion
I move to pass Ordinance Number 4751, entitiled: AN ORDINANCE PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012A, 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