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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 Refunding Bonds, Series 2018A in an Aggregate Principal Amount of $4,520,000, and Related Matters - Finance Committee Agenda Item - October 9, 2018.
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the City of Aurora Series 20018A Tax Increment Finance (TIF) Revenue Bonds.
BACKGROUND:
In August 2008, the City issued Revenue Bonds from TIF District 6 in the amount of $6,660,000. The remaining bonds of $4,520,000 are now callable, and the refinancing of these bonds will reduce the remaining debt service costs by approximately $318,000. TIF #6 consists of approximately 530 acres and is located just northeast of the city's downtown. Attachment 1 shows an estimate of these savings. It is generally bounded by the Fox River on the west; Spring Street on the south; Aurora Avenue, Lincoln Avenue, and Ohio Street (extended along the railroad right-of-way) on the east; and Mettel Road on the north. It also generally extends east to Ohio Street between Pierce Street and north of Delius Street, and east to Aurora Lane and Mitchell Road (south of Indian Trail). The district was established to attract residential, commercial, and other mixed-use projects to redevelop underutilized.
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 2008A TIF Revenue bonds does not co...
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