Title
Debt Service Program - Update on Current Debt Issues and Plans of Finance
History
As part of the 2021 Budget discussions, in addition to other debt restrictions, the following debt restructuring was reviewed.
The Village has a number of bond issues outstanding. Two bonds are ripe for savings.
Bob Lewis from the Village Financial Advisory Firm PMA Securities, LLC will be on hand to provide an overview of these issues.
2012B Cash Defeasance (also called Bond Call)
The Village issued several bonds relating to the Main Street Triangle TIF district. Two of those bond issues (Series 2012B and 2013A) included large balloon payments that are due in December of 2021 and 2022.
Prior Schedule of Balloon Payments:
Due December 1, 2021
2012B: $7,825,000
2013A: $7,825,000
Total: $15,650,000
Due December 1, 2022:
2012B: $8,025,000
2013A: $8,025,000*
Total: $16,050,000
*Earlier in 2021, the Village issued refunding bonds and defeased (paid in full) the 2022 maturity of $8,025,000 of the 2013A Bonds by issuing 2021B bonds. The 2021B bonds will be paid from current TIF increment and ground lease rental income through 2034.
In 2017, the Village received a sizeable payment from the developer of the Ninety7Fifty project, which was used to pay off lines of credit (which were used to fund portions of the project). Each year since 2018, the Village has been contributing $1.2 million in Home Rule Sales Tax revenue to the debt service funds. From 2018 through 2021, the Village has contributed a total of $4,800,000. There is currently $24,015,974.15 in funds on hand from the developer payment (sometimes referred to as liquidation proceeds) and Home Rule Sales Taxes.
Current Schedule of Balloon Payments:
Due December 1, 2021
2012B: $7,825,000
2013A: $7,825,000
Total: $15,650,000
Due December 1, 2022:
2012B: $8,025,000
Total: $8,025,000
Financial summary of 2012B and 2013A Debt Service Funds
Current cash balance in Debt Service Funds: $24,506,439.89
Total P...
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