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Elmhurst sells roughly $10.995 million in general obligation bonds; low bid from J.P. Morgan at 2.37%
Summary
The council approved issuance of approximately $10,995,000 in general obligation bonds (Series 2026) to refinance prior debt and fund $3.5 million for police station design; low bid came from J.P. Morgan Securities at 2.37%, producing refinancing and project savings.
The Elmhurst City Council authorized issuance of approximately $10,995,000 in general obligation bonds, Series 2026, on March 2 after a presentation on the competitive sale and its expected savings.
Mark Geratina of Spear Financial reported that the auction drew 28 bids from nine bidders and that J.P. Morgan Securities submitted the low bid with a true interest cost equivalent to a 2.37% interest rate and final maturity in 2034. A portion of the issue refinances the city’s 2015 bonds, producing roughly $497,000 of nominal debt‑service savings on the refunded principal, and the new proceeds include about $3.5 million for design and engineering of a new police station. Closing is scheduled for March 18, when the city will receive bond proceeds.
City finance staff and the city manager said issuing the bonds at current rates produced significant savings compared with prior projections; Director Coyle and the city manager estimated net present value savings across the refinancing and project timing at about $700,000. Council members praised finance staff and the city manager for securing and maintaining a strong bond rating, which contributed to favorable pricing.
Council voted to accept the low bid and approve the ordinance authorizing the issuance; the vote was unanimous. The city will return with closing documents and next steps for the police station financing.
