Oak Park council authorizes up to $44 million in bonds for community center project

The Oak Park City Council on March 17 voted to adopt a bond‑authorizing resolution that allows the city to issue bonds of up to $44,000,000 to finance the planned community center project.

Eric McLaughlin, bond counsel with Dickinson Wright, told the council the resolution implements voter authorization and permits bonds to be sold in one or more series to match the project's expenditure timeline. The resolution pledges the city's unlimited‑tax full faith and credit to repay debt service and delegates authority to the city manager and finance director to sign documents and manage sale parameters.

McLaughlin explained common financing features and constraints, including amortization and typical call protection. “There are a number of considerations,” he said, noting arbitrage rules that limit how proceeds may be invested and the requirement to expend proceeds within roughly three years under tax regulations unless exceptions apply. Council members discussed amortization length and the potential to refund bonds later to change the schedule.

City staff and council also referenced preliminary modeling by the financial adviser that suggested issuance could create roughly 2.6 mills of debt service in one scenario, though staff said modeling is draft and the final millage impact will depend on the structure chosen when the bonds go to market. McLaughlin said the city expects to seek a credit rating (Standard & Poor’s) as part of the process; S&P’s review typically takes several weeks.

After questions and discussion about structure and timing, the council voted by roll call to adopt the resolution. Staff said they will finalize financing structure with the municipal advisor, prepare the preliminary official statement and proceed with rating‑agency outreach as the next steps.