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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: November 21, 2018
SUBJECT:
An Ordinance of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, Providing for the Issuance of Tax Increment Revenue Bonds, Series 2018B in an Aggregate Principal Amount of $3,540,000, and Related Matters - Finance Committee Agenda Item - October 9, 2018 Meeting.
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the City of Aurora Series 20018B Tax Increment Finance (TIF) Revenue Bonds.
BACKGROUND:
In August 2008, the City issued Revenue Bonds from TIF District 3 in the amount of $7,265,000. The remaining bonds of $3,345,000 are now callable, and the refinancing of these bonds will reduce the remaining debt service costs by an estimated $440,000 through 2023. The district consists of approximately 40 acres and is located just south of the city's downtown. It is generally bounded by Benton Street on the north, LaSalle Street and Broadway on the east, North Avenue on the south, and Middle Avenue on the west. The district was established to attract residential, commercial, and other mixed-use projects to redevelop underutilized land.
DISCUSSION:
The City reviews the total debt portfolio each year to monitor current interest rates for bonds compared to the interest rates in place when bonds are originally issued. Similar to the refinancing of a "mortgage", the City can refinance previously issued bonds to accomplish savings or debt restructuring goals within the total economic development and capital infrastructure programs currently in place. The refinancing of the 2008B TIF Revenue bonds does not contemplate any restructuring of the debt through either the extension of the debt for a longer period of time or through a change in the timing of principle payments. This refinancing will focus on interest rate and cash flow savings resulting in an esti...
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