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An Ordinance providing for the issue of not to exceed $18,000,000 General Obligation Corporate Purpose Bonds, Series 2026A, of the Village of Oak Park, Cook County, Illinois, for the purpose of financing streetscape and infrastructure improvements within the Village, providing for the levy and collection of a direct annual tax sufficient to pay the principal and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof.
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Introduction
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The Village Board is being asked to adopt a parameters ordinance authorizing the issuance of not to exceed $18,000,000 in General Obligation Corporate Purpose Bonds, Series 2026A, to finance approved streetscape and infrastructure improvements.
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Recommended Action
Adopt the ordinance authorizing the issuance and sale of not to exceed $18,000,000 General Obligation Corporate Purpose Bonds, Series 2026A, to finance streetscape and infrastructure improvements within the Village.
Prior Board Action
The Board has taken the following prior action(s):
• On May 19, 2026 the Village Board approved RES 26-211, a reimbursement resolution expressing the Village’s official intent to reimburse eligible streetscape and infrastructure expenditures from proceeds of a future debt obligation. The resolution preserved reimbursement eligibility but did not authorize the issuance of debt.
• The Village Board previously approved capital improvement planning, budget appropriations, and project contracts for the Oak Park Avenue Streetscape Project, including the following:
o RES 26-150 - Approved a purchase price agreement with Victor Stanley, LLC for street furniture for the Oak Park Avenue Streetscape Project in an amount not to exceed $73,111, authorized its execution, and waived the Village’s bid process for the agreement.
o RES 25-301 - Approved a contract with A Lamp Concrete Contractors, Inc. for Project 25-20, Oak Park Avenue Streetscape Improvements, in an amount not to exceed $18,464,984 and authorized its execution.
• On December 2, 2025 the Village Board approved ORD 25-212, an ordinance 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 Project. The refunding purpose was completed in February 2026; however, the project bonds were not issued before the May 18, 2026 authorization deadline. Accordingly, a new ordinance is required to reauthorize the issuance of the project bonds. Broader holistic borrowing plan discussions for other new-money needs are scheduled for July 2026.
Background
The Village is advancing the Oak Park Avenue Streetscape Project and related infrastructure improvements previously approved through the capital improvement plan, budget, and project-specific contracts. Eligible costs include construction and related professional services.
On December 2, 2025, the Board adopted ORD 25-212 authorizing debt for both refunding and new-money purposes. The Village completed the refunding component in February 2026, but did not issue the project bonds before the ordinance’s May 18, 2026, authorization deadline. Although the Board had already authorized financing for the project, the expiration of that delegated sale authority requires the Board to adopt a new parameters ordinance before the bonds may be sold.
The proposed ordinance authorizes not to exceed $18,000,000 of General Obligation Corporate Purpose Bonds, Series 2026A, in one or more series. It establishes the maximum financing parameters and authorizes the Village President and either the Village Manager or the Chief Financial Officer to complete the sale no later than December 30, 2026, provided the final terms remain within the limits approved by the Board.
This financing is limited to approved streetscape and infrastructure improvements. Finance, Public Works, Legal, and the Village’s financing professionals have coordinated on project costs and debt structuring. Other capital borrowing needs will be discussed separately in July 2026.
Timing Considerations
This item is time-sensitive because the prior delegated authority to sell the project bonds expired on May 18, 2026, while the Oak Park Avenue Streetscape Project is underway and project expenditures are being incurred. Adoption of the ordinance restores the authority needed to proceed with the financing and supports timely project cash flow.
The ordinance authorizes sale and delivery of the bonds no later than December 30, 2026. Subject to federal tax requirements, RES 26-211 preserves reimbursement eligibility for project costs incurred within 60 days before May 19, 2026 or thereafter and before bond issuance.
Financial Impact
This ordinance authorizes financing rather than a new project expenditure. Up to $18,000,000 of proceeds may fund eligible project costs, issuance costs, and capitalized interest, if applicable.
The ordinance establishes parameters that include a final maturity no later than November 1, 2046, an interest rate not to exceed 6.00% per year, annual principal maturities not to exceed $1,600,000, and a purchase price of not less than 98.0% of principal, exclusive of original issue discount and plus accrued interest. The ordinance provides for a direct annual property tax levy of up to $1,700,000 for debt service, subject to reduction or abatement based on the final debt service schedule and other lawfully available funds.
Final principal, rates, debt service, tax levy, and taxpayer impact will be determined at pricing, documented in the Bond Notification, and incorporated into the Village’s debt service budget.
Operations Impact
There is no direct staffing increase associated with this item. The action aligns with the Village’s core capital planning, debt management, and financial administration functions.
Finance, Public Works, Legal, and external financing professionals will coordinate project cash flow, offering documents, pricing, closing, compliance, and debt service administration within existing responsibilities and professional service arrangements.
DEI Impact
The financing authorization itself does not create a direct DEI impact. The underlying streetscape and infrastructure improvements are intended to support a safer, more accessible, and more functional public environment, including pedestrian mobility and access for residents and visitors of varying ages and abilities.
Community Input
There has been no direct community input specific to this bond ordinance. The underlying Oak Park Avenue Streetscape Project has been considered through prior capital planning, budget, project design, procurement, and Board approval processes.
Staff Recommendation
Staff recommends adoption of the parameters ordinance authorizing not to exceed $18,000,000 General Obligation Corporate Purpose Bonds, Series 2026A. Adoption reauthorizes financing for approved streetscape and infrastructure improvements and permits a sale within the Board-approved limits without a separate sale authorization.
Advantages:
• Provides financing and reimbursement capacity for approved improvements while preserving Village liquidity and fund balance.
• Establishes clear financing limits while allowing designated officials to respond efficiently to market conditions.
Disadvantages:
• Issuance of the bonds will increase the Village’s outstanding debt and create a long-term debt service obligation.
• The final borrowing cost remains subject to market conditions at the time of sale, and the ordinance authorizes a property tax levy to secure repayment, subject to annual abatement as applicable.
Alternatives
Alternative 1:
The Board can elect not to adopt the ordinance.
Advantages:
• Avoids issuing additional debt and the associated interest and issuance costs.
• Avoids authorizing a property tax levy for the Series 2026A Bonds.
Disadvantages:
• Requires the Village to use cash and fund balance or identify another financing source, potentially reducing liquidity.
• The Village may need to delay or revise project implementation and may be unable to reimburse eligible costs already paid from available resources.
Alternative 2
The Board can delay action and consider the ordinance after the July 2026 holistic borrowing plan discussion.
Advantages:
• Limits the amount of debt authorized and the associated long-term debt service.
• Allows the Board to tailor the authorization more closely to currently identified project costs or its preferred debt structure.
Disadvantages:
• A lower authorization may be insufficient to reimburse all eligible project costs, issuance costs, or related contingencies.
• Material changes to the financing parameters could require additional analysis by the Village’s financing professionals and bond counsel and may delay the financing.
Anticipated Future Actions
Following adoption, Finance and the Village’s financing professionals will prepare offering documents, coordinate the credit and rating process, price the bonds, and complete closing.
The Village President and either the Village Manager or Chief Financial Officer may approve a compliant sale through a Bond Notification no later than December 30, 2026. The notification will be entered into the Village records and presented to the Board for information.
After closing, proceeds will be deposited into the project fund. Staff will complete required levy filings, abatements, continuing disclosure, and post-issuance compliance.
Prepared By: Kevin Bueso, Chief Financial Officer
Reviewed By: Louis Hall-Makarewicz, Deputy Chief Financial Officer
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Ordinance and Certification of Minutes and Ordinance - Bond Counsel