Proceeds from a $3.810 million bond sale will finance the next phase of Flossmoor’s eight-year water main replacement project.
Village board members Monday approved the bond sale, which took place earlier in the day and was called a successful transaction reflecting Flossmoor’s strong fiscal health.
Prior to the bond sale, Standard & Poor’s affirmed the village’s stellar AA+ bond financial rating, Flossmoor Finance Director Scott Bordui said.
“In S & P’s report on the rating, ‘strong management’ and ‘good financial practices’ were cited,” said Bordui, who was “delighted” by S & P’s favorable rating.
Kevin McKanna, president of Speer Financial, Inc., in Chicago, said the AA+ rating was a “good third party report card” on Flossmoor’s financial condition. McKanna served as the village’s adviser for the bond sale.
Janney Montgomery Scott, of Philadelphia, was the successful bidder for the bonds, offering the lowest interest rate – 3.2041 percent — for the 20-year general obligation bonds. McKanna said five companies took part in a lively, competitive bid process. One company submitted 11 bids, he said, and all bid between three and eight times.
Other bidders were Robert W. Baird & Co., of Milwaukee; FTN Financial, of Memphis; Raymond James, of Memphis; and BOSC, Inc., of Menomonee Falls, Wisconsin.
Monday’s bond sale is the second funding installment following the approval of a $7.280 million referendum aimed at replacing leaky water mains throughout Flossmoor. Voters passed the referendum in November 2012. Village Board members approved the first bond issue for the project, at $3.470 million, in January, 2013.
The board unanimously approved Monday’s bond sale, as well as an ordinance setting it in motion and an amendment to the village budget spelling out anticipated water main work in 2015. A total of $727,755 is budgeted for next year’s portion of the project with water main replacement coming at Heather Hill North and Hutchison Road/Collett Lane. Improvements are also planned at Carroll Parkway, Evans Road and Travers Lane.
During 2014, three areas of Flossmoor were targeted for water main replacement: Gardner Road from Carroll Parkway north to Hutchinson Road; Princeton Road from Vollmer Road north to Hanover Lane; and Vollmer Road from Dixie Highway east to Holly Lane.
Village board members said they were pleased with Monday’s favorable bond sale and the AA+ rating from Standard & Poor’s.
“This confirms what we all know about this village and how well it is run,” said Trustee James Mitros.
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