Agenda - 04/12/1976 - Committee of the Whole� II
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MEMO TO: President & Board of Trustees
SUBJ ECi : Meeting a Conte i ttee of the Whole
Vionday, April 12, 1976 - 7:30 P oM .
Village Comwns, Lower Level Conference Roman
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cision on Schedule re Revenue Bond Issue
ell #5
"Rough Cut" - oak Brook Coals
Community Calendar
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LZ 1 BCT -C® W- q- e -�G
VILLAGE OF OAK BKOOK
1200 OAK BROOK ROAD
OAK BROOK, IL1r.IN015
April 7, 1976
MEMO TO: President & Board of Trustees
SUBJECT: Revenue bond Issue
Gentlemen,
654 -2220
It is hoped that at the April 12th Committee -of- the -Who?a meeting, the follow-
ing decisions can be rendered.:.
(1) Maturity schedule for the revenue bond issue
(2) A decision to proceed with bidding on Well #5
Attached is an analysis from Paul D. Speer and Associates and a letter from Mr.
Barce. The letter is self explanat-gry and includes tiro =r ion and
rationale. The first table, "Flaw of Funds ",, reflects a revenue bond issue
dated August, 1976 with a maturity schedula through 1992. The seeotA table,
"Preliminary A ", indicates sale of bonds, ,August, 1976, with. a wturity through
1996.
The format for bona tables is the same. Gross Revenue, Operf.rion & M"intenance
Expense and Net Revenue are self explanatory. Interest column reflects the
interest due on the eristing 1973 revenue bands plus the proposed 19 ?6 revenue
Issue. The following tables wil3_ give you an idea of the distribution of
interest between the two issues:
Preliminary 1976/1992
FY ending Interest -- Int are; st-
April 30 Series 1973 Serifs 1976
X977 $ 1659100 $ 146,250
1978 160,600 1952000
Preliminary "A" 1976/1996
Interest- Interest -
Seriee 1973 Series 1976
$ 165,].00 $ 1531,000
16x,600 2049000
Total $1,963,825 $12979,250 $1,963,825 $29633,300
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- 2 - April 7, 1976
The total interest costs on the shorter 1976 issue is split between old and
new issues. The total interest cost on the longer terra is increased due to
the higher rate and longer duration.
The column dealing with principal qtr;- includes the principal due on the exist-
ing 1973 revenue bond issue and the proposed. The amount of that principal
attributed to the proposed 1976 issue can be determined by locking at the right-
most cm_um_ on the table.
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The bond reserve, Depreciation, Improvement & Extension Account reflect the
demands of both revenue bond issues.
The coverage is important to the extent that it affects the rating of the new
issue, and, therefore, the rate of interest that we w1i1 ps y on the proposed
bond issue. Speers attempted to maintain 1.75 coverage. Our 110!3 revenue
bond, carried an "A!° rating, and we would hope that our new bonds will do as
well, if not better, with this coverage. The coverage indicates to the bond
buyer that sufficient dollars are available to offset Iry unuxua3 expense or
reduction of revenue.
It is the bond consultant's and the staff's recommendations that water revenue
bond, Series 1976, be issued in the amount of $3 mild -.- -u to mature in 1992
(approximately 16 years) arid, that no bonds be retired in 1377. Bond con-
sultant, Mr. Barce, will be in attendance at the Committee --of- the -Whole meeting.
WELL #5
Attached is a memo from Engineer Littleton dealing with the analysis of deep
wells. Chuck has reviewed carefully all of the factors invoxv,..�d and all the
information available. His recommendation is that we explore Mt. Simon aqua -
fier and in our exploration determine specifically the increase available water
from that aquafier by test pumping both Ironton- Galesville and Pit. Simon aqua -
£iers.
Recognizing that exploration of this type has a possibility of aoth failure and
success, I would concur with Chuck's recommendation. It is our opinion that we
should bid Well #5 out immediately in anticipation of the bond sale. We are
asking for the village board to authorize the bidding of ' .-ep well at the
board meeting of April 27. Bids to be opened on May Y' iitl.: to f ?rd of con -
teact on May 25.
Q e
3 - April. 7, 1976
We have arranged for the following to be present ,at the meeting:
Robert Sasman, Hydrologist, Illinois Statc Water Survey
Gregory Buffingtc at L:_ne Western Co. Inc.
William McEllhiney, 4-7. P. Miller Well Co.
Paul Neves, Warren --Van Praag
It is hoped that a decision can be reacaed at the April 12th Committee -of-
the -Whole meeting.
Respectfully submitted,
O
Kenn th G. Ca.rmignanS
Village Manager
KGC /ls
att.
cc: Attorney Bianuccai
Mr. W. Barce
William Balling
Mark Kennedy
• C.A.Littleton
F. Wilson