Flossmoor Accepts Favorable Interest Rate On Infrastructure Bond

FLOSSMOOR, IL — The Flossmoor Village Board of Trustees accepted a bid from Robert W. Baird & Co. for the village approved $10 million General Obligation bond on March 15.

The deal comes after residents in Flossmoor voted to approve issuing $10 million in bonds to fix streets and sidewalks. It also includes the current refunding of the village’s 2013 General Obligation bonds that were used to finance water main improvements. More than 80 percent of voters said yes to the referendum on the Nov. 3 ballot, and the village said the preparation process followed shortly after it was approved.

The village says the net interest rate for the bonds is nearly 1.8 percent, and will also include flooding mitigation projects for Berry Lane and the Flossmoor Road viaduct.

"Yesterday was a huge win for the residents of Flossmoor," said Mayor Paul Braun. "The low interest rate is a direct reflection of our bond rating, high demand in the marketplace for the Village’s bonds based on our strong reputation, and the diligence of the Board and staff in financial management. We all look forward to seeing these bond proceeds expended on our streets, sidewalks and stormwater infrastructure over the next few years."

According to the village, the bond refunding is a refinancing of the 2013 General Obligation bonds used to finance water system improvements. Flossmoor refinanced $2.36 million of the original $3.47 million original principal. The new interest rate carries through the remaining term of the bonds to December 2032.

The village said it achieved a total interest savings of $174,574, which is a direct savings to taxpayers because the tax levy will be reduced.

Related: Flossmoor Officials Celebrate Bonds Infrastructure Referendum | Homewood, IL Patch