Chicago Heights issuing $8 million in bonds
Posted on 2009-11-18 09:34:07 CST
The Chicago Heights City Council is issuing about $8 million in bonds to extend an existing loan and to pay for road construction and improvements to the city's 911 call center.
City officials said a $3.9 million bond issue will allow the city to extend a portion of a loan from 1993 that was due to be paid off Dec. 1.
In 1993, the city issued bonds worth about $36 million. A total of between $15 million and $16 million is outstanding on that debt and the city originally planned to pay off $3.6 million of it Dec. 1.
Instead, the money for the payment will be transferred to the general fund once the loan is extended. The new bonds must be paid back by Dec. 1, 2015.
According to city financial consultant David Gonzalez, the loan extension will allow the city to refinance the $3.9 million at an interest rate somewhere between 5 percent and 6 percent. That former bond issue had an interest rate of about 8 percent.
Bonds worth $4.1 million also are being issued to pay for street work and the 911 center improvements. They must be paid off by 2023.
Approximately $1 million of the bond issue will be spent to upgrade the infrastructure of the city's 911 call center. The remainder of the money will be spent to fix city streets.
"The mayor and the city council will decide where the work will be done," city chief of staff Matt Fares said. "They'll spread it evenly throughout six wards. I have no idea what kind of streets will be fixed with the money."
The Bank of New York Mellon Trust Company will be selling the bonds on behalf of the city.
November 18, 2009
BY CASEY TONER
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