Flossmoor’s voter-supported $10-million bond sale and the refinancing of more than $2 million worth of 2013 bonds is close to being a done deal.
Finance Director Scott Bordui delivered what he called “fantastic news” during a regular meeting of the Village Board held Monday, March 15, regarding Flossmoor’s two-purpose issue bond sale that took place the same day. The village sold more than $12 million in bonds at an interest rate of 1.78%, “just a fabulous rate,” Bordui said.
“I’m sure we wish we could all get those rates on our personal loans,” he said.
The Village sold $10 million in general obligation bonds approved in November by voter referendum to address flooding issues and fix streets as the money allows. It also refinanced $2.03 million in outstanding principal from a 2013 water main improvement bond issue to save taxpayers $174,574.03.
As he explained last month when the board authorized the refinancing, Bordui reiterated those savings do not go to the village government.
“It 100% reduces the property taxes our residents will pay,” he said.
Anthony Miceli, of Speer Financial, said Flossmoor sold the bonds in a competitive open auction and received 19 bids. Despite $10 million being the target, Flossmoor will instead see $10.64 million in bond sale proceeds deposited into its project fund. Miceli explained that municipal bonds are typically sold as premium and/or discount bonds, and the ratio of this sale benefits Flossmoor. Through municipal bond sales such as this, investors also stand to benefit from higher coupon rates and other incentives.
“In order to receive that, they will pay you,” Miceli said of the additional money.
Miceli echoed Bordui’s touting of the interest rate, calling it a “really remarkable rate.”
He said some of that is thanks to the village’s AA+ rating recently being reaffirmed by Standard & Poor’s.
“Obviously, market interest rates are low,” he added.
Several trustees thanked the finance team for their work on the bond sale and said they were pleased with the results.
“It’s a testament to fiscal responsibility and planning this village has done over the years,” Trustee Perry Hoag said.
The Village Board voted unanimously twice in relation to the news — once to approve the bond sale itself and the second to adjust the budget. The closing on the sale is expected to take place April 6.
Vaccine comes to town
Mayor Paul Braun announced at the conclusion of the meeting that the CVS in town is now distributing the COVID-19 vaccine.
“They take appointments a week in advance,” Braun said, noting Fridays are the best day to call for the following week.
Braun said the South Suburban Mayors and Managers Association is also working on a larger site for mass distribution.
“We’ll keep everybody posted on that,” he said.
● The Village Board voted unanimously to approve the appointment of Robert Kopec as fire chief for Flossmoor, following what Braun called a “rigorous” process. He was then sworn into the position. “Honestly, this is a very humbling day,” Kopec said, noting he looks forward to serving the residents of Flossmoor.
● The Village Board voted unanimously to approve two appointments by Braun to the Green Commission: Jeffrey Lippert and Darlyne Klages. They replace vacancies left by Carrie Malfeo and Brian Goesel.