Title
An Ordinance Providing for the Issuance of General Obligation Refunding Bonds, Series 2019 - Ordinance
History
The Village has an opportunity to refund its outstanding GO Bonds Series 2010 through a negotiated sale with Raymond James & Associates, Inc. in order to capture future interest cost savings. The Series 2010 bonds refunded the Series 2002 bonds that the Village issued to fund construction of the Orland Park Public Library. Raymond James will privately place the bonds, with an anticipated delivery date of August 28, 2019.
The attached bond ordinance authorizes the sale and sets the parameter of the sale as follows -
--Maximum size of issuance - $2,950,000
--Maximum coupon interest rate - 4%
--Minimum price - 98% of the par amount of the bonds
--Final principal due date - December 1, 2022
--Maximum annual levy - $990,000
--Minimum savings - $50,000
Based upon the parameters of the ordinance, the par amount of the bonds that would be refunded is $2,770,000, with an average coupon of 3.4501%. Due to the timing of the sale, the principal and interest due December 1, 2019 will not be refunded and the Village will make those payments from FY19 levy collections. The current estimated NPV of future interest cost savings is approximately $63,460, or 2.29% of refunded principal.
Once the sale takes place, the attached ordinance will be updated with actual sale information and filed with the Village Clerk's Office, as well as with the Counties of Cook and Will.
This agenda item is being considered by the Finance Committee and the Village Board of Trustees on the same night.
Financial Impact
Decreased future interest costs on the refunding bonds will equate to a lower debt service levy in future years.
Recommended Action/Motion
I move to recommend to the Village Board to pass Ordinance Number ______entitled: An Ordinance providing for the issuance of not to exceed $2,950,000 General Obligation Refunding Bonds, Series 2019, of the Village of Orland Park, Cook and Will Counties, Illinois, for the purpose of refunding certain outstanding bonds of said Village, providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds, authorizing the sale of said bonds to the purchaser thereof, and authorizing the execution of an bond order and an escrow letter agreement in connection therewith