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A Resolution Approving Certain Capital Improvements in and for the Village and Expressing Official Intent Regarding Certain Capital Expenditures Related to Such Capital Improvements to be Reimbursed from Proceeds of one or More Obligations to be Issued by the Village of Oak Park, Cook County, Illinois.
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Introduction
overview
The Village Board is being asked to adopt a reimbursement resolution declaring the Village’s official intent to reimburse various capital improvement expenditures from proceeds of future debt obligations.
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Recommended Action
Adopt the attached resolution, which includes:
1. Approving the major capital projects described in Exhibit A;
2. Approving the general financing framework and timing summarized in Exhibit B, based on Scenario 1;
3. Declaring the Village's official intent, under Treasury Regulation Section 1.150-2, to reimburse eligible project expenditures from proceeds of one or more future obligations; and
4. Establishing a maximum not to exceed principal amount of $120,000,000 for obligations expected to reimburse expenditures for the projects covered by the resolution.
Each bond issuance, related appropriation, project contract, and annual levy abatement will remain subject to separate Village Board review and approval.
Prior Board Action
The Finance Committee reviewed the Village's comprehensive major-project financing plan at two public meetings:
• June 18, 2026 - Stifel Public Finance and Speer Financial presented the initial financing plan, which modeled approximately $178.86 million of project costs and five issuances through 2030. The Committee requested a reduced scope, updated project assumptions, and additional analysis of the debt-service structure and taxpayer impact.
• July 2, 2026 - Staff, Stifel Public Finance, and Speer Financial presented a refined plan totaling approximately $128.77 million of modeled project costs, with three issuances through 2028. The Committee reached consensus to advance Scenario 1, which emphasizes a smoother overall debt-service levy and taxpayer predictability.
• May 19, 2026 - The Board adopted RES 26-211 declaring the Village's intent to reimburse eligible Oak Park Avenue Streetscape and related infrastructure expenditures from future debt proceeds.
• March 5, 2026 - Following approval of ORD 25-212, the Village issued $42,020,000 of General Obligation Refunding Bonds, Series 2026.
• December 9, 2025 - The Board adopted ORD 25-220, the FY26 operating and capital budget, including $20,000,000 of budgeted bond-proceed revenues for the Oak Park Avenue Streetscape and related water/sewer work.
• December 2, 2025 - The Board approved ORD 25-212 authorizing up to $75,000,000 of debt for refunding and new-money purposes, including up to $20,000,000 for the Oak Park Avenue Streetscape.
• November 11, 2025 - The Board approved the principal construction contract for the Oak Park Avenue Streetscape project.
Background
The revised financing plan focuses only on the Village's major Board-priority projects for the 2026-2030 planning period. It narrows the earlier financing proposal by reducing the Police Station estimate, limiting standalone Bike Plan and Vision Zero financing to the next five years of implementation, and incorporating streetscape-related bicycle and traffic-safety components within the applicable streetscape budgets. Village Hall remains a planning placeholder pending completion of scope, cost, and phasing analysis.
RES 26-211 already establishes reimbursement intent for the Oak Park Avenue Streetscape. The attached resolution extends reimbursement intent to the remaining major Board-priority projects. Taken together, the two resolutions provide the reimbursement framework for the major-project portfolio reflected in Scenario 1.
Scenario 1 - Modeled Major-Project Funding Framework
|
Project |
Modeled Project Funding |
Modeled Issuance |
Notes |
|
Oak Park Avenue Streetscape |
$16,170,000 |
2026A |
Covered by RES 26-211 |
|
Police Station |
$64,845,520 |
2027 |
Construction and a portion of assumed soft costs |
|
Percy Julian Chicago Avenue Streetscape |
$6,800,000 |
2027 |
$1.5M modeled for Water/Sewer abatement |
|
Village Hall Remodel |
$27,700,000 |
2028 |
Planning placeholder; scope/phasing under review |
|
Bike Plan / Vision Zero |
$13,250,000 |
2026-2028 |
Five-year implementation; includes standalone projects |
|
Total |
$128,765,520 |
2026-2028 |
Preliminary and subject to change |
The issuance years and amounts shown above are planning assumptions, not authorizations. Final sizing, timing, repayment structure, project allocation, and use of enterprise-fund revenues will be updated based on project schedules, market conditions, legal review, and subsequent Board direction.
Timing Considerations
The financing framework currently assumes a Series 2026A issuance in October 2026, followed by issuances in May 2027 and November 2028. Certain project expenditures may occur before the applicable bond proceeds are available. Adoption of the reimbursement resolution preserves the Village's ability, subject to federal tax requirements, to reimburse eligible expenditures from future tax-exempt obligations.
Timely adoption also allows staff, bond counsel, Stifel, and Speer to continue refining the financing plan while project design, procurement, and construction schedules advance. Delaying the resolution could limit reimbursement eligibility for certain expenditures and affect the planned financing and project schedules.
Financial Impact
Adoption of the resolution has no immediate budgetary or property-tax impact because it does not authorize the issuance of debt. It approves the general planning framework and establishes reimbursement intent. Under the current Scenario 1 model, the full major-project portfolio includes approximately $128.77 million of project funding, $124.71 million of bond principal, and $263.19 million of total debt service through final maturity. Approximately $11.24 million of that debt service is associated with water/sewer-supported portions expected to be paid from Water/Sewer Fund revenues and abated from the property-tax levy; approximately $251.95 million is modeled as levied general obligation debt service.
All figures are preliminary. Final financial impacts will depend on the approved project scopes, construction schedules, available grants or other funding, market interest rates, bond pricing, repayment terms, and future Board actions. The attached resolution limits the maximum principal amount expected to reimburse expenditures for the projects covered by that resolution to $120,000,000.
The PAYGO CIP is not impacted by this action. Dedicated PAYGO revenues, routine capital appropriations, and PAYGO reserve balances are not being redirected or committed through this resolution. Staff will return with a separate item addressing the PAYGO CIP funding framework and related policy considerations.
RES 26-241, together with RES 26-211, would limit the total maximum principal amount expected to reimburse expenditures for the projects identified in the Scenario 1 - Modeled Major Project Funding Framework table to $140,000,000, provided that neither RES 26-241 nor RES 26-211 authorizes the issuance of debt.
Operations Impact
The resolution itself does not create an immediate operating expenditure. Implementation of the capital projects and future bond issuances will require multiyear coordination among Finance, Public Works, Police, Development Services, the Village Manager's Office, bond counsel, the Village's municipal advisor, the underwriter, and other consultants. Finance will be responsible for debt issuance, project-fund accounting, reimbursement documentation, arbitrage and tax compliance, continuing disclosure, and annual levy-abatement actions. Future operating and maintenance impacts of completed projects will be evaluated through the annual budget process as project scopes are finalized.
DEI Impact
The reimbursement and financing structure does not independently determine the distributional impact of the underlying projects. The Police Station, streetscape, bicycle, pedestrian-safety, and Village Hall projects may affect residents, businesses, employees, and users differently based on location, accessibility, design, construction impacts, and service delivery. Equity and accessibility considerations will continue to be evaluated through each project's planning, community engagement, design, procurement, and implementation process.
Community Input
The financing plan was discussed at public Finance Committee meetings on June 18 and July 2, 2026, with opportunities for public comment. The underlying capital projects have also been discussed through prior Board meetings, department planning processes, project-specific community engagement, and adoption of the Village's Board goals and Capital Improvement Program. The July 21 Board meeting provides an additional opportunity for public comment on the proposed resolution and financing framework.
Staff Recommendation
Staff recommends that the Village Board approve the reimbursement resolution covering the identified major Board-priority projects within the 2026-2030 Capital Improvement Plan and affirm the general financing framework reflected in Scenario 1, with anticipated annual bond issuances through 2028. Each bond issuance, project appropriation, and related financing action would remain subject to separate Village Board approval. The Village’s PAYGO capital program is not affected by this action and will be presented separately for Board discussion.
Advantages:
• Preserves the Village’s ability to reimburse eligible project expenditures incurred before future bond proceeds are received and supports the planned sequencing of major capital projects.
• Advances the Finance Committee’s recommended Scenario 1 framework while retaining Board oversight of each future bond issuance, project scope, and appropriation.
• Enables the Village to best plan for future bond issuances (subject to future Board authorization) with respect to project funding timelines and cash flow needs.
Disadvantages:
• Signals the Village’s intent to pursue a substantial multiyear borrowing program that would create additional long-term debt-service obligations and taxpayer impacts if future issuances are approved.
• Project costs, schedules, market conditions, and financing assumptions may change, requiring the financing plan and individual issuances to be revised before final Board authorization.
Alternatives
Alternative 1:
The Board can reject the resolution.
Advantages:
• Avoids approving the general financing framework before final project scopes, costs, and issuance terms are known.
• Preserves maximum near-term Board flexibility to reconsider the project list, timing, and borrowing amounts.
Disadvantages:
• May limit the Village's ability to reimburse eligible expenditures incurred before a later declaration of official intent, subject to federal tax requirements.
• Could delay project schedules and the planned 2026-2028 financing process and expose the Village to additional timing and market risk.
Alternative 2: Adopt a Revised or Narrower Resolution
Advantages:
• Preserves reimbursement eligibility for projects the Board is prepared to advance while excluding or modifying projects that require additional analysis.
• Allows the Board to revise the project list, maximum reimbursement amount, or general issuance schedule before approving the framework.
Disadvantages:
• Could require staff, bond counsel, and the financial advisors to revise the financing model and legal documents, potentially delaying planned financing actions.
• May reduce transaction efficiency and require one or more additional reimbursement resolutions as excluded projects advance.
Anticipated Future Actions
Anticipated Future Actions Include:
• Separate Village Board authorization of the Series 2026A bond issuance, including final sizing, structure, project allocation, and financing documents.
• Separate Finance Committee review and Village Board authorization of the modeled 2027 and 2028 issuances.
• Separate Board approval of project appropriations, design and construction contracts, property acquisition, and other project-specific actions.
• Annual levy-abatement actions for debt service supported by Water/Sewer Fund or other legally available revenues.
• A separate subsequent Board discussion of the PAYGO CIP funding framework, dedicated revenues, reserves, and ongoing routine capital needs.
Prepared By: Kevin Bueso, Chief Financial Officer
Reviewed By: Louis Hall- Makarewicz, Deputy Chief Financial Officer
James Karsten, Management Analyst
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution & Certification of Minutes and Resolution - Bond Counsel
2. July 2nd Finance Committee Presentation