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Regular Village Board meetings are typically held at 7:00 p.m., the first three Tuesdays of each month in Council Chambers of Village Hall (room 201), 123 Madison St. When a Regular Meeting falls on a holiday, the meeting typically is held the following night. The Village Board also meets in special sessions from time to time. However, dates and times of Special Meetings can vary and may change.

File #: ORD 18-344    Name:
Type: Ordinance Status: Passed
In control: President and Board of Trustees
On agenda: 2/20/2018 Final action: 2/20/2018
Title: An Ordinance Providing for the Issuance of Not to Exceed $8,900,000 Taxable General Obligation Refunding Bods, Series 2018A (Holley Court Garage Project) of the Village of Oak Park, Cook County, Illinois and for the Levy of a Direct Annual Tax Sufficient to Pay the Principal and Interest on Said Bonds
Attachments: 1. Oak Park - Bond Ordinance - 2018A(30709115_3), 2. Oak Park - Opinion - 2018A(30709059_2), 3. GO Refunding Same Duration Taxable

Submitted By                     

Steven Drazner, CFO

 

Reviewed By

LKS

 

Agenda Item Title

Title

An Ordinance Providing for the Issuance of Not to Exceed $8,900,000 Taxable General Obligation Refunding Bods, Series 2018A (Holley Court Garage Project) of the Village of Oak Park, Cook County, Illinois and for the Levy of a Direct Annual Tax Sufficient to Pay the Principal and Interest on Said Bonds

 

End

Overview

Overview

Taxable General Obligation Series 2018A not-to-exceed issue of $8,900,000 will refund the tax exempt Revenue Bond Series 2006C originally issued for the Holley Court Garage expansion.   The estimated savings for the remaining bond maturities are estimated at $240,000.  The pricing for the sale of these bonds will occur on March 19th and the transaction is scheduled to close on April 3, 2018.  Conditional on approval of this Ordinance, the bond sale and pricing has been scheduled for March 19th and the bonds would close (transaction finalized) on April 3, 2018.

 

Body

Staff Recommendation

Adopt the Ordinance

 

Fiscal Impact

The savings from the refunding is estimated at approximately $240,000 which will average about $30,000 per year for the remaining life of the new bonds although the actual savings may be slightly more or less depending on the final interest rates upon closing the deal.  The debt service for this issue is budgeted in the Downtown TIF (a permitted expense per the settlement agreement).  However, once the TIF expires, the debt service expense will be transferred over to the Parking Fund. 

 

Background

The original Series 2006C bonds were tax exempt revenue bonds with maturities extending out to 2026.  The refunding 2018A bonds are taxable general obligation bonds with the same maturity duration.  The original bond proceeds were used for Holley Court Garage capital expenditures and the Village is entitled to use Downtown TIF increment up to the limit set per the TIF Settlement Agreement to pay the debt service on these bonds.  However, upon termination of the Downtown TIF, the expense for these bonds will need to be budgeted and paid for by the Parking Fund.

 

Alternatives

The Village Board may defer or reject the refinancing.

 

Previous Board Action

N/A

 

Citizen Advisory Commission Action

N/A.

 

Anticipated Future Actions/Commitments

N/A.

 

Intergovernmental Cooperation Opportunities

N/A.

 

Performance Management (MAP) Alignment

N/A.