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Approval of an Ordinance for Refunding Certain Outstanding Bonds and Issuance of New Bonds
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Introduction
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This is a consideration and action on an Ordinance providing for the issue of not to exceed $75,000,000 General Obligation Bonds, Series 2026, of the Village of Oak Park, Cook County, Illinois, for the purpose of financing streetscape and infrastructure improvements within the Village and refunding certain outstanding bonds of the Village, authorizing the execution of an escrow agreement in connection with the issue of said bonds, and authorizing the sale of said bonds to the purchaser thereof.
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Recommended Action
Approve the Ordinance providing for the issue of not to exceed $75,000,000 General Obligation Bonds, Series 2026, of the Village of Oak Park, Cook County, Illinois, for the purpose of financing streetscape and infrastructure improvements within the Village and refunding certain outstanding bonds of the Village, providing for the levy and collection of a direct annual tax sufficient to pay the principal and interest on said bonds, authorizing the execution of an escrow agreement in connection with the issue of said bonds, and authorizing the sale of said bonds to the purchaser thereof.
Prior Board Action
There is no prior Board action associated with this item.
Background
The Village of Oak Park has the opportunity to refund certain outstanding bonds at a lower interest rate. Series 2015A, 2015B, 2016A, 2016D, 2016E and Series 2017A are currently callable. The intent is to refund certain maturities that provide debt service savings to the Village.
Timing Considerations
Current market conditions are favorable for the Village to refund current bonds at a lower interest rate.
Budget Impact
Funding options would need to be evaluated to determine the most favorable to the Village.
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Approve the ordinance for the issuance of not to exceed $75,000,0000 General Obligations Refunding Bonds, Series 2025 of the Village of Oak Park, Cook County, Illinois, for the purpose of financing streetscape and infrastructure improvements within the Village and refunding certain of the outstanding bonds of the Village, authorizing the execution of an escrow agreement in connection with the issue of said bonds, and authorizing the sale of said bonds to the purchaser thereof.
Advantages:
• The Village Board will receive a lower interest rate and debt service savings on outstanding bonds of the Village.
• The Village will have the opportunity to enter the market when interest rates are favorable.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
The Board can elect not to move forward on refunding.
Advantages:
• If interest rates are unfavorable, this action will save the Village expenses on interest.
Disadvantages:
• If interest rates are favorable, this action will prevent the Village from attaining cost savings through refinancing bonds.
Anticipated Future Actions
The Interim Chief Financial Officer will prepare the ordinance for the November 11, 2025, board meeting.
Prepared By: Donna M. Gayden, Interim Chief Financial Officer
Reviewed By: Ahmad M. Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Ordinance