Title
An Ordinance Providing for the Issuance of General Obligation Refunding Bonds, Series 2018 - Ordinance
History
The Village is refunding its outstanding GO Bonds, Series 2010 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. The sale of these refunding bonds will take place via a negotiated sale on a future date. The date of the sale will depend on the availability of favorable market interest rates.
The attached Bond Ordinance authorizes and sets the parameters of the sale. The main parameters are as follows.
Maximum size of issuance - $2,950,000
Maximum coupon interest rate - 4%
Minimum price - 98%
Final principal due date - December 1, 2022
Maximum annual levy - $990,000
Minimum savings - $50,000
Once the sale takes place, the 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.
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 pass Ordinance Number 5329, entitled: AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $2,950,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2018, 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.