Bond Refunding Nets Over $800,000 in Savings and More (Live Blog Transcript)
Orland Park saved more than expected Monday after refunding bonds from 2006. The Public Safety, Public Works and Development Services committees will also met. Read our live blog transcript for more details.
Update, 8:30 p.m., Monday, Aug. 20, 2012
Orland Park refunded a set of bonds that garnered savings of about $180,000 more than was originally estimated Monday.
The village put up bonds issued in 2006 to help pay for construction of the current Orland Park Police Department on Monday. Janney Montgomery Scott, LLC. from Philadelphia offered the winning bid among eight total bidders. The result from selling about $9.2 million worth of bonds is a savings of $832,444.44 over the life of the bonds. The original estimate for savings from refunding was about $657,000.
Barbara Chevalier, vice president from Speer Financial, Inc., described the auction Monday night at Orland Park's Village Board meeting as "very competitive," and that ratings of Aa1 from Moody's and AA+ from Standard and Poor's helped fuel the interest.
"This shows how attractive Orland Park’s paper is that there would be such competition," Chevalier said. "Your underlying ratings show strength, good management, good finances, all the things that go into the Aa1 and AA+ ratings."
Trustee James Dodge said it's a strong statement about Orland Park, given financial issues of municipalities in California. Stockton, Mammoth Lakes and San Bernardino have declared bankruptcy this year, according to CBS News.
"This seems to be, yet again, that our ratings are strong with everything we’re proposing to do and what we’re doing, with our trajectory on debt load," Dodge said Monday night.
Original Post, 5:55 a.m., Monday, Aug. 20, 2012
Orland Park could refund a set of bonds used to cover some costs of the Orland Park Police Department facility at 151st and LaGrange.
Speer Financial, Inc., who serves as the village’s financial advisors, has advised that a set of general obligation bonds issued in 2006 could be refunded, leading to a savings of about $657,000, or “7.12 percent of the refunding principal, net of all issuance costs,” according to a village document.
The village maintains an Aa1 rating from Moody’s and an AA+ rating from Standard and Poor’s for this set of bonds, and the rest of its debt, according to the document.
If the refunding passes a vote Monday night, the village’s remaining total debt will be $74.69 million.
The village will also go over a proposal for continued legal support in negotiating a new water contract with Oak Lawn. The goal is to have a contract in place by year’s end.
The village’s Public Safety, Public Works, and Development Services committees will also be meeting Monday night, starting at 6 p.m., before the full village board. Packets for the other meetings are also attached here.
Orland Park Patch’s live blog through Scribble It will provide minute-by-minute updates from the meeting on this page starting at 6 p.m. Look in the Scribble It window above, and you’ll see an area where you can join in and offer your comments and questions. The same rules apply as on finished articles on the site.
Leading up to the meeting, let me know if there's anything you particularly want to know about in the comments.
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