Title
Debt Service Program - Update on Debt Program, 2025 GO Bonds and Reimbursement for Capital
History
Bob Lewis and Andrew Kim from the Village’s Financial Advisory Firm PMA Securities, LLC will be on hand to provide an overview of the Village’s debt portfolio and to provide a preview of the 2025 G.O. Bonds to be issued for capital projects.
As of today, the Village’s total outstanding debt is $90,665,000. As part of previously approved plans and commitments, by the end of FY 2027, total Village debt may be as high as $251,095,000. This includes:
• 2025 - Because the 2024 Bonds were not issued in fiscal year 2024, and the 2025 debt was not issued earlier this year as was planned, the 2025 debt issuance is expected to total $40.93 million.
• 2026 - $87.5 million, which includes $33 million which was approved in October 2024 for the Downtown Orland Park TIF, $10 million for the Dicks’ House of Sports TIF (former Sears property), and $25.5 million for the former Andrew Corporation TIF.
• 2027 - $32 million, which includes $10 million for 143rd and John Humphrey Drive TIF and $21 million for the former Petey’s II TIF.
2025 General Obligation Bonds
As part of the previously approved five-year financial plan, annual debt issuances were approved. The issuance of bonds in 2024 was postponed and are now be coupled with the 2025 debt issuance.
The PMA Securities overview kicks off the process to issue the new debt issuance which will fund parts of the capital program for this fiscal year as well as last fiscal year.
The tentative schedule is as follows:
• July 21, 2023 - Committee of the Whole: review overall borrowing plan. Village Board: approve Reimbursement Resolution
• Mid-September 2025 - Determine Final borrowing amount
• Late September 2025 - Hold S&P Credit Rating
• October 3, 2025 - Receive S&P Credit Rating
• October 6, 2025 - Village Board approve parameters ordinance
• October 7, 2025 - Bond sale
• October 28, 2025 - Closing
The October 6, 2025, Parameters ordinance identifies officials that may execute the bond sale, and the criteria upon which the bonds may be sold. These criteria include the time frame, maximum interest rate, term of repayment, among others.
Future bond issuances
As part of the previously approved Five-Year Financial Plan, anticipated bonding for Governmental capital projects from 2023 to 2027 were to be paid back by property taxes, Home Rule Sales Taxes, and Utility Taxes. As annual debt service payments fall off, funds will remain available for future pay as you go capital funding.
TIF related debt issuances are to be paid back from property tax increment generated in the proposed TIF districts.
Water & Sewer Fund borrowing was included in the 2023-2027 utility rate study that was adopted by the Village in 2022.
Recommended Action/Motion
Discussion only. The parameters ordinance will be considered at the October 6, 2025, Village Board Meeting.