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 terminat...
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