Orland Park approves up-to-$42 million bond issuance to reimburse prior capital spending; board hears questions on timing and transparency

The Village of Orland Park Board of Trustees on Oct. 6 voted to authorize the issuance of not-to-exceed $42,000,000 in general obligation bonds to finance capital improvements and reimburse prior expenditures.

Trustee Jesse Lawrence moved to adopt the ordinance authorizing the bond issuance; trustees voted in favor on roll call. The ordinance provides for the levy of taxes sufficient to pay principal and interest and authorizes sale of the bonds to a purchaser when issued.

Board discussion focused on why the village is pursuing the debt now. Village staff and financial advisors told trustees the borrowing largely reimburses capital spending already incurred in 2024 and 2025 and had been planned in a five-year financial plan adopted in 2023; the board had previously delayed issuance. Staff also warned of Internal Revenue Service rules that limit reimbursement timing and could affect tax-exempt status if reimbursement is not completed within required timeframes.

“Because it wasn’t done on time, there are rules—IRS rules—on when the debt reimbursement can occur,” a staff member explained, noting the village’s municipal advisors (PMA Securities LLC) and staff had been working to “remedy all of that.” Trustees asked for a clearer public accounting of which projects the bonds will finance and how the timing affects interest and budget planning.

Trustee Healy said she wanted a project-level breakdown before borrowing proceeds, noting the proximity of the upcoming budget process and asking whether delaying the bond would force cuts to road and sidewalk programs. Staff replied that much of the borrowing reimburses expenditures already made and that postponing issuance would damage the general fund balance and could require significant program cuts.

The board also approved, earlier in the meeting, a municipal advisory services agreement with PMA Securities LLC to provide ongoing advisory services and authorized a professional services agreement for design engineering on 17101–17171 S. Wolf Road for $119,980; both items were approved by roll call.

The bond ordinance passed on a roll-call vote; trustees and the mayor voted in favor. Village staff said additional detail on project allocations, interest savings and reimbursement eligibility would be provided to the board and the public.