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Board adopts resolution expressing intent to reimburse capital expenditures from bond proceeds
Summary
The board adopted a resolution stating the village’s intent to reimburse certain capital expenditures from future obligations so those expenses can be paid from nontaxable bond proceeds; trustees discussed the connection to the five-year financial plan.
The Orland Park Board of Trustees on July 21 adopted a resolution titled “Resolution expressing official intent regarding certain capital expenditures to be reimbursed from proceeds of 1 or more obligations to be issued by the Village of Orland Park, Cook and Will Counties, Illinois.”
Trustee Leafblatt moved adoption of the resolution, which the board approved by roll call. During discussion Trustee Katsenas asked whether the village has continually used bond proceeds for similar reimbursements; a village official replied there has been annual bond issuance since the official started and that the resolution aligns with the five-year financial plan. Municipal counsel and staff said the resolution is necessary to preserve the village’s ability to reimburse pre-issuance capital expenditures from nontaxable bond proceeds and that without this corrective step the village might have to issue taxable bonds at higher interest costs.
Treasurer/finance staff explained the item “coincides with the 5 year plan” and that the corrective action allows issuance of nontaxable bonds; the transcript notes the alternative could increase interest by an estimated $1.5 million if taxable bonds were required.
Why it matters: The resolution preserves the village’s ability to reimburse certain capital expenditures from future bond proceeds and is a common municipal finance practice when capital work precedes bond closing. The board did not adopt any specific bond issuance at the meeting; the resolution documents official intent to reimburse eligible expenditures consistent with tax rules.
Next steps: The village indicated the resolution implements corrective language needed in advance of taxable/nontaxable determinations; staff said they will ensure relevant documents are updated and tied to the five-year plan.
