TO: Mayor Richard C. Irvin
FROM: Martin Lyons, Chief Financial Officer/City Treasurer
DATE: November 6, 2019
SUBJECT:title
An Ordinance providing for the issuance and sale of not to exceed $9,000,000 aggregate principal amount of General Obligation Refunding Bonds, Series 2019, of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds and Related Matters - Finance Committee Agenda Item - November 14, 2019 Meeting
body
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the City of Aurora Series 20019A General Obligation (G.O.) Bonds.
BACKGROUND:
In August 2009, the City issued G.O./Build America Bonds in the amount of $15,460,000 (2009 A Issue) and G.O. Bonds in the amount of $5,645,000 (2009B Issue). The remaining 2009A bonds of $5,990,000 and the remaining 2009B of $2,130,000 are now callable (total refunded bonds of $8,115,000), and the refinancing of these bonds will reduce the remaining debt service costs by an estimated $274,440 over the remaining life of the bonds. The original bonds were issued for the procurement of a new public radio system and other capital project and to refinance installment/promissory notes previously issued for the purchase of 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 2009A and 2009B 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...
Click here for full text