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 2011 - 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 Bonds - Series 2003. The 2003 bonds were originally issued to partially refund General Obligation Bonds, Series 2000. As per the attached Refunding Analysis, the estimated net present value savings to be realized by issuing the refunding bonds is estimated at $645,000, or 6.68%. This savings amount reflects all issuance costs.
The attached Bond Ordinance, Escrow Agreement and Bond Order are for informational purposes only. After the bid opening at approximately 10:00am on Monday, August 15, 2011, the attached Ordinance and Order 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 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 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 $79.79 million.
Recommended Action/Motion
I move to pass Ordinance Number 4668 entitled: AN ORDINANCE PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011, OF THE VILLAGE OF ORLAND PARK, COOK AND WILL COUNTIES, ILLINOIS, AUTHORIZING THE EXECUTION OF AN ESCROW AG...
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