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Resolution Expressing Official Intent Regarding Certain Capital Expenditures, Related To Financing Streetscape And Infrastructure Improvements In And For The Village, Together With Such Engineering, Electrical, Financial, Legal, And Other Professional Services Related Thereto As May Be Advisable And Necessary, To Be Reimbursed From Proceeds Of An Obligation To Be Issued By The Village Of Oak Park, Cook County, Illinois
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Introduction
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The Village Board is being asked to adopt a reimbursement resolution declaring the Village’s official intent to reimburse certain streetscape and infrastructure improvement expenditures from proceeds of a future debt obligation.
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Recommended Action
Adopt the resolution expressing the Village’s official intent to reimburse certain streetscape and infrastructure improvement expenditures from proceeds of a future obligation to be issued by the Village. Adoption of the resolution preserves the Village’s ability to reimburse eligible expenditures but does not obligate the Village to issue debt.
Prior Board Action
The Board has taken the following prior action(s):
• In December 2025, the Village Board approved an ordinance authorizing debt issuance for new money and refunding purposes. The refunding purpose was completed in February 2026. The debt issuance for new money is pending further holistic borrowing plan discussions to be held in July 2026.
• The Village Board has previously approved capital improvement planning and budget appropriations that include streetscape and infrastructure improvements. The two most recent include:
o RES 25-301: A Resolution Approving a Contract with A Lamp Concrete Contractors, Inc. for Project 25-20, Oak Park Avenue Streetscape Improvements in an Amount Not to Exceed Amount $18,464,984 and Authorizing its Execution
o RES 26-150: A Resolution Approving A Purchase Price Agreement with Victor Stanley, LLC. for the Purchase of Street Furniture for the Oak Park Avenue Streetscape Project in an Amount not to Exceed $73,111, Authorizing its Execution, and Waiving the Village’s Bid Process for the Agreement
Background
The Village has identified streetscape and infrastructure improvements as part of its ongoing capital investment needs. These projects include streetscape and infrastructure improvements in and for the Village, together with related engineering, electrical, financial, legal, and other professional services that may be advisable and necessary.
The reimbursement resolution allows the Village to declare its official intent, pursuant to applicable Treasury Regulations, to reimburse itself from future obligation proceeds for eligible capital expenditures related to these projects. The resolution applies to expenditures paid within 60 days prior to the adoption of the resolution or paid on or after the adoption of the resolution.
This action supports the Village’s ability to manage capital project cash flow and preserve financing flexibility while longer-term debt planning is finalized. The resolution establishes a maximum principal amount of obligations expected to be issued for reimbursement purposes of $20,000,000.
Timing Considerations
This item is time-sensitive because the Oak Park Avenue project and related expenditures are already underway or may be incurred before the Village issues future obligations. Adoption of the reimbursement resolution preserves the Village’s ability to reimburse eligible expenditures paid within 60 days prior to adoption or paid after adoption, subject to applicable federal tax requirements.
Financial Impact
There is no immediate budget impact associated with the adoption of this resolution. The resolution does not authorize the issuance of debt or require the Village to proceed with future financing.
The resolution preserves the Village’s ability to reimburse eligible streetscape and infrastructure expenditures from future obligation proceeds. The maximum principal amount of the obligation expected to be issued for reimbursement purposes is $20,000,000.
Operations Impact
There is no direct operating impact associated with this item. The item aligns with the Village’s core capital planning and financial management functions.
Staff from Finance, Legal, Public Works, and the Village’s external financial and bond professionals may continue to coordinate on project costs, eligible expenditures, debt planning, and future financing actions.
DEI Impact
There is no direct DEI impact associated with the adoption of this reimbursement resolution. Streetscape and infrastructure investments may support broader community accessibility, mobility, safety, and quality-of-life goals depending on the final scope and location of the projects.
Community Input
There has been no direct community input given in relation to this reimbursement resolution. Related streetscape and infrastructure projects have been discussed through prior capital planning, budget, public works, or project-specific public processes.
Staff Recommendation
Staff recommends that the Village Board adopt the reimbursement resolution declaring the Village’s official intent to reimburse eligible streetscape and infrastructure improvement expenditures from future obligation proceeds. Adoption preserves financial flexibility and supports the Village’s ability to manage project expenditures while future debt planning is finalized.
Advantages:
• Preserves the Village’s ability to reimburse eligible capital expenditures from future obligation proceeds.
• Provides flexibility to continue advancing streetscape and infrastructure improvements while debt planning and issuance timing are evaluated.
Disadvantages:
• Future debt issuance, if pursued, would require additional Board consideration and would have long-term financial implications.
Alternatives
Alternative 1:
The Board can elect not to adopt the reimbursement resolution at this time.
Advantages:
• Avoids any perception that the Village is committing to a future debt issuance.
• Allows additional time for discussion of the Village’s broader borrowing plan and capital priorities.
Disadvantages:
• This action may limit the Village’s ability to reimburse eligible project expenditures from future obligation proceeds.
• To the extent project costs are paid from available cash and are not reimbursed through future debt proceeds, the Village’s cash position and fund balance could be reduced. Maintaining strong liquidity and fund balance has been noted by rating agencies as an important factor supporting the Village’s current credit rating.
Alternative 2:
The Board can elect to delay adoption of the reimbursement resolution to a future Board meeting.
Advantages:
• Allows additional time for staff and the Village’s financial professionals to refine project cost assumptions and financing strategy.
• Provides the Board with more time to consider the reimbursement resolution in the context of the Village’s broader capital and borrowing plan.
Disadvantages:
• Delaying action may affect the Village’s ability to reimburse certain expenditures depending on when costs are incurred.
• If certain project expenditures become ineligible for reimbursement from future debt proceeds, the Village may need to rely more heavily on existing cash and fund balance resources. While this would not by itself determine the Village’s credit profile, rating agencies have identified the Village’s strong liquidity and fund balance position as a positive credit factor.
Anticipated Future Actions
Staff anticipates returning to the Village Board with future debt planning and financing recommendations related to streetscape, infrastructure, and other capital needs. Any future debt issuance would require separate Board consideration and approval.
Prepared By: Kevin Bueso, Chief Financial Officer
Reviewed By: James Karsten, Management Analyst
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution & Certification of Minutes and Resolution - Bond Counsel