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West Chicago council approves $9.495 million bond issue to fund road and capital projects
Summary
The West Chicago City Council authorized up to $9.495 million in general-obligation bonds to finance capital improvements, including road work; the sale drew competitive bids this morning and council voted to adopt the ordinance after a corrected par amount was presented.
The West Chicago City Council on March 16 authorized the issuance of approximately $9.495 million in general-obligation bonds to finance capital improvements, including street and roadway work and related project costs. The council voted to adopt the ordinance after a correction to the par amount was announced.
Anthony Maselli, municipal adviser with Spirit Financial, told the council the city ran a competitive open auction for the bonds and received 12 bids from two bidders. "The best bid coming from Stifel Nicolaus ... at a original bid of 3.8527%," Maselli said, describing that figure as the blended rate for the 20-year bonds. He said the resized issue will provide approximately $9,738,516 for project proceeds and is expected to close on April 7.
Council members asked how the final rate compared with earlier budget assumptions. Maselli said recent market volatility had slightly shifted expectations but that "we were pleased with the rate, given, you know, it was within expectations of what we're seeing in the market." He estimated the city's annual debt service would be about $705,000.
Council discussion referenced budget-workshop projections and a correction made during the finance committee that changed the ordinance's par amount from $9,395,000 (as printed) to $9,495,000. After the presentation and brief questions, the council approved the ordinance by roll-call vote.
The bond proceeds were described as intended to fund multiple capital projects over the coming fiscal years, including an Industrial Street project identified by staff; the municipal-adviser presentation tied the resized par amount to providing full funding for that work. The ordinance authorizes the levy and collection of a direct annual tax sufficient to pay principal and interest and authorizes sale of the bonds to the purchaser.
The council's vote followed a finance-committee recommendation; minutes and official bond-sale documents in the city's packet and closing documents will provide the authoritative final figures and terms.
