Title
An Ordinance to Provide for the Issuance for General Obligation Refunding Bonds, Series 2013C - 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 Refunding Bonds, Series 2007. The Series 2007 bonds were originally issued a portion of the land acquisition and infrastructure construction costs within the Village's Main Street Triangle TIF. As per the attached Refunding Analysis, the estimated net present value savings to be realized by issuing the Series 2013C refunding bonds is estimated at approximately $764,000, or 8.838%, of refunded principal. This savings amount is net of all issuance costs.
The attached Bond Ordinance is for informational purposes only. After the sale, which will take place at approximately 10:00am on Monday, April 15th, the attached Ordinance will be completed with all pertinent information. Speer Financial, Inc. (financial advisor) and Chapman & Cutler (bond counselor) will be delivering the completed documents to the Board for formal approval at the April 15th 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 Standard & Poor's, 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 $109.2 million.
Recommended Action/Motion
I move to pass Ordinance Number 4813, entitled: an Ordinance providing for the issuance of General Obligation Refunding Bonds, Series 2013C, of the Village of Orland Park, Cook and Will Counties, Illinois, for the purpose of refunding certain outstanding bonds of said Village, authorizing the execution of an escrow agreement and providing for the levy and collection of a direct annual tax sufficient for the payment of the principal of and interest on said bonds