Riverside approves $6.065 million bond issue to fund water and sewer work

The Village of Riverside Board of Trustees on March 6 approved an ordinance authorizing the issuance of $6,065,000 in general obligation bonds, waterworks and sewage system alternate revenue source series 2025, to fund improvements to the village’s water and sewer system.

The ordinance was introduced after the village completed a competitive bond sale that drew five underwriting firms and 11 bids. Finance Director Zavala and the village’s financial advisor reported the lowest bid — the successful bid — came from Robert W. Baird & Co. The final true interest cost on the issue was 3.9731 percent.

The bond sale follows a review by the rating agency and the reaffirmation of the village’s strong credit standing. President Abernie Pollack highlighted the budget impact, saying, "We just see 135,000 reasons why. We've just saved a hundred and $35,000 by getting a very low interest rate on our bond."

The competitive sale required the village to resize the issue to achieve $6,000,000 in project proceeds; the ordinance’s par amount was adjusted to $6,065,000 to reflect that sizing and the successful bidder. Anthony Miceli of Spear Financial summarized the sale, noting that bids ranged from a low of about 3.9731 percent to a high of about 4.1861 percent and that the interest results reflected demand and the village’s high credit rating.

Trustees voted unanimously to approve the ordinance. Clerk Lehi Stenzel recorded aye votes from Trustees Mateo, Clarity, Evans, Coss and Gallagose; the motion carried.

Next steps include final execution of the bond documents and the sale to the successful bidder; Chapman and Cutler’s representative Kent Flores was present to answer legal questions about the ordinance and sale process.

The bond proceeds are designated for waterworks and sewage system improvements and related issuance costs; specifics of the projects to be funded were not detailed during the board discussion.