RURAL BOND BANK
COMPLETES SECOND BOND ISSUE
The Illinois Rural Bond Bank, which finances infrastructure projects for local governments in 96 counties, completed its second bond issue Tuesday, May 7th,
totaling $3,240,000 for 9 units of local government. The
first Bond Bank bond issue occurred December 4th,
1990, in the amount of $3,515,000 to finance 7 local
governments.
Lieutenant Governor Bob Kustra, by statute, chairs
the Rural Bond Bank.
Kustra said, "I am very pleased that the Rural Bond
Bank continues to serve the needs of local governments
in the non-metropolitan counties of our state. In this
Spring bond issue, we have saved tax dollars for a
school district, three local water systems, three sewerage systems, and two fire protection districts."
"The Rural Bond Bank helps local governments improve their schools, water and sewer systems, undertake new local infrastructure and capital developments,
and save local tax dollars in the process.
"The Rural Bond Bank was established to help local
governments obtain lower cost credit", Kustra said. "In
the past, smaller governments have been infrequent
issuers of bonds, and were not well known in the bond-buying marketplace. Because of that, the interest rates
and issuance costs were often much higher than those
paid by larger units of government, which undertake
large bond issues frequently and have name recognition
in the bond markets."
"The Rural Bond Bank gives to smaller units of local
government — for example, school districts, cities and
towns, counties, townships, water districts, and fire
protection districts — the same credit advantages and
savings enjoyed by large bond issuers."
"The Rural Bond Bank helps local governments set
up their financings, and purchases their bonds at A+
interest rates and reduced issuance costs, benefits
which are usually available only to larger governments."
"The funds from the Bond Bank flow back to the
local governments in the 'bond pool' at significant interest cost savings, as compared to the interest rates
which would have paid if they had issued bonds on
their own."
"The Underwriter serving the Bond Bank, Smith
Barney Harris Upham, purchased the Series 1991-A
Rural Bond Bank bonds at very attractive, cost-saving
rates for the local governments. The Underwriter is
selling the bonds to Illinois "retail" investors and institutional buyers. Rural Bond Bank bonds are A+ rated and are double tax exempt.
Local governments participating in
the Spring, 1991 bond issue:
City of Albion (Edwards County)
$710, 000
New water transmission lines and refinancing of
prior improvements
East Side Fire Protection District (St. Clair County)
$430,000
Long term financing for new fire station
Eaton Water District (Crawford County)
$170,000
Required refinancing of Farmers Home Administration loan
Somonauk Fire Protection District (DeKalb and La-
Salle Counties) $225,000
Long term financing for new fire station
City of Farmington (Fulton County)
$300,000
Improvements to City water system
Village of Forreston (Ogle County)
$235,000
Improvements to wastewater treatment facility to
comply with EPA mandates
Village of Hanna City (Fulton County)
$315,000
Improvements to repair and enlarge wastewater
treatment system, and refund old bonds
Fulton County Community School District # 3 (Cuba)
(Fulton County)
$245,000
Installation of new roof to meet School Life and
Safety Code
Village of Warrensburg (Macon County)
$260,000
Mandated refunding of U.S. Farmers Home Administration financing of sewerage works
Total. . . includes Issue Reserve $3,240,000
"Local government leaders need to know when
June 1991 / Illinois Municipal Review / Page 17
funds will be available for capital development projects. As a result, the Bond Bank Board of Commissioners established December 1st and May 1st of each year
as definite Fall and Spring dates for future bond issues."
The Rural Bond Bank can assist, however, in financings
during all other months of the year.
"The Board of Commissioners joins me in urging all
local governments which are planning to rebuild or
develop their schools, water and sewer systems, and
related local government projects to contact the Rural
Bond Bank for assistance in obtaining their financing at
the cost savings which are possible through the Bond
Bank."
The Commissioners of the Rural Bond Bank are:
State Treasurer Patrick Quinn, Vice Chairman
Robert Anstine of Macomb (McDonough County)
Wallace Furrow of El Paso (Woodford County)
I. Ronald Lawfer of Stockton (Jo Daviess County)
James Walsh of Carmi (White County)
Edward Williams of Decatur (Macon County) •
PRESENTS AWARD
The DuPage Mayors and Managers Conference
presented the Illinois Municipal League with an "Intergovernmental Cooperation Award, In Recognition of
the Generosity of the Illinois Municipal League".
The plaque was presented to League President Rolland Lewis, Mayor of Mount Vernon, by DuPage
Mayors and Managers President, Bill Murphy, Mayor
of Woodridge on May 17 at their Annual Banquet.
Page 18 / Illinois Municipal Review / June 1991