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Spanish Daily Journal
     February 24, 2020      #52-55 sdj

Strong bond rating helps Bourbonnais  

Fuerte calificación de bonos ayuda a Bourbonnais

BOURBONNAIS — Current market conditions and a strong bond rating helped the village of Bourbonnais secure a $5 million general obligation bond at an interest rate of 1.87 percent, according to village officials.

“It’s a huge savings,” Village Administrator Mike Van Mill said. “We are extremely pleased.”

Finance Director Tara Latz said that on Jan. 2, the interest rate for the bonds was 2.18 percent. The village has 10 years to repay the bonds.

At the village board’s Jan. 6 meeting, trustees gave final approval to the sale of the bonds, which village closed on on Thursday.

The bond proceeds will be used for infrastructure projects that include street improvements at Mooney Drive, stormwater management at Burns Road and U.S. Route 45/52, overpass replacements at St. George Road, Larry Power Road and Armour Road, as well as additional improvement projects as determined.

The village earned a high-grade bond rating of AA- from Standard & Poor’s, one of three leading independent bond rating services. A bond rating is a letter grade assigned to bonds that indicates their credit quality. The AA- rating signifies a bond issues with strong outlooks.

This is a sustained rating previously issued to the village in 2017, under former finance director Michael Wolf. The rating comes as a result of the village’s recent approval of the $5 million general obligation bond.

According to the village, the Standard & Poor’s financial analysis outlined the village’s strong budget flexibility, liquidity and institutional framework.

“Ever since I’ve been employed here, the village of Bourbonnais has always had a keen awareness of fiduciary responsibility,” said Latz, who replaced Wolf after he retired last year.

“We’ve taken pride in our ability to keep a balanced budget, spend within our means and be accountable to the residents and community we serve. I think our continued strong bond rating reflects this culture,” Latz said.

Mayor Paul Schore said current and past board members “have worked hard to keep the village’s finances in a responsible state.”

“We will continue making disciplined decisions on behalf of the village and remain dedicated to proactive financial planning for the future,” he said.

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