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Villa Park to issue up to $9.5 million in refunding bonds; officials say refinancing saves about $393,000
Summary
Trustees adopted an ordinance authorizing up to $9.5 million in general‑obligation refunding bonds to refinance 2014 debt; village consultants reported 17 bids, a winning bid from Huntington Securities at 2.98%, and roughly $393,000 in debt‑service savings, with closing set for April 28.
The Village of Villa Park on April 13 approved an ordinance authorizing issuance of general obligation refunding bonds not to exceed $9.5 million to refinance the village’s outstanding 2014 bonds.
Manager Rivas explained that the refinancing aims to reduce debt service costs tied to bonds authorized by a 2014 voter referendum. Finance staff introduced Mark Garentina of Spear Financial, who said the village received 17 bids from six bidders; the winning bid came from Huntington Securities at an interest rate of 2.98% with a final maturity in 2034.
"We received significant interest from the bond market," Garentina said, adding that the refinance is expected to result in about $393,000 in debt‑service savings. The bonds were scheduled to close April 28.
Trustees discussed the change in coupon rates — replacing the 2014 bonds’ 4% coupons with the new lower rates — and voted unanimously to adopt the ordinance authorizing the bond sale.
What this means: Village staff said the transaction preserves the village’s Double‑A rating and produces budgetary savings over the life of the bonds. The board did not adopt additional appropriations or reallocate near‑term budget funds at the meeting; the bond closing will be handled by staff and the finance adviser as scheduled.
Next steps: Closing is scheduled for April 28; staff and the village’s finance adviser will complete closing documentation and implement the refunding per the adopted ordinance.
