Title
An Ordinance to Provide for the Issuance for General Obligation Refunding Bonds, Series 2012D - 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 2004. The Series 2004 bonds were issued in order to refund the Series 1998 bonds; the Series 1998 bonds were issued to partially fund construction of the Sportsplex, expansion of the Centennial Pool and the purchase of open land. As per the attached Refunding Analysis, the estimated net present value savings to be realized by issuing the Series 2012D refunding bonds is estimated at $404,000, or 7.55%. 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, November 19, 2012, 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 November 19th 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+. The rating agency reports are attached to this agenda item.
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 $74.69 million.
Recommended Action/Motion
I move to pass Ordinance Number 4766 entitled: An Ordinance providing for the issuance of $5,220,0...
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