The Finance Department will propose that the City refinance the 2008 General Obligation bonds to save an estimated $490,000 over the next eleven years. The City issued the 2008 bonds to finance a portion of the downtown parking deck, so the refinancing will reduce future expenditures in that fund. This would make the fourth time that the City has refinanced debt in the past five years.
The City’s high credit rating will help achieve a low rate of interest, estimated at 3.85%.The City holds triple-A bond ratings from Moody’s Investors Services and Fitch Ratings. No other Illinois municipality outside the Chicago metro area has even one triple-A credit rating.
The City would sell the bonds to Siebert, Brandford, Shank & Co., a minority-owned investment banking firm. The City Council approved the firm following a competitive search in 2013. In addition to getting excellent execution of the bond sale, contracting with Siebert would further the Council Goal to increase minority and female-owned business opportunities.
Further information can be obtained by contacting Richard Schnuer, Finance Director, at 217-403-8943.