The Village of Flossmoor is looking to save money by refinancing a 2013 bond issue that could mean a total of $184,591 in savings over the 11 years of the bonds’ lifespan — though the exact amount depends on rates at the time of the sale.
The village board voted unanimously the evening of Feb. 1 to pursue the bond refinancing, which was recommended by Scott Bordui, Floosmoor’s finance director.
“The market is favorable for us to consider refinancing our 2013 general obligation bond,” Bordui told the board that evening.
Bordui explained that “assuming current markets as well as our current rating” stay the same, the village could see a potential savings of $184,591 over the last 11 years of payments.
“That is a direct savings to our taxpayers,” Bordui said, noting the bonds are repaid through the tax levy.
The 2013 general obligation bonds were approved by referendum to finance improvements to Flossmoor’s water system, including water main replacements throughout the village. According to a report by Bordui, $2.36 million of the original $3.47 million principal is outstanding. The remaining principal matures from 2021 through 2032, carrying interest rates between 2.25% and 2.75%.
The market is favorable to refinancing at lower interest rates, Bordui said. And the timing of the refinancing could coincide with Flossmoor’s plan to issue $10 million in general obligation bonds in March, as approved in a November referendum, to address flooding and road repair issues in town. Doing those together would mean one rating review, come with economies of scale and reduce bond issuance costs, Bordui said.
Flossmoor set its minimum savings for refinancing at $94,400, allowing the village an off ramp should the market not be ideal at the proposed March 15 sale date.
Village Board amends design engineering agreement with Baxter & Woodman
The village board voted unanimously Feb. 1 to amend an agreement with Baxter & Woodman to increase the cost of the design engineering work on the village’s flooding issues near Berry Lane from the $164,300 originally approved to $205,457 in an effort to secure grant funding from the Metropolitan Water Reclamation District and Illinois Environmental Protection Agency.
Following the original approval in December, the village was selected for two green infrastructure partnerships/grants to be used toward the installation of permeable street pavers and underground detention storage for smaller storm events, according to a report by Public Works Director John Brunke. He said the intent is to use that structure in conjunction with larger storm sewer improvements being planned for that area.
Final funding amounts have yet to be determined, but the combination of money from MWRD and IEPA programs is expected to total approximately $700,000, according to Brunke. Securing that money means additional engineering to design the improvements and add them to the larger scope of the project — necessitating the change to the agreement.
Matt Moffitt, of Baxter & Woodman, said the actual work related to those grants is expected to cost $500,000.