By Kevin Boneske
HOBART — A resolution authorizing the sale of approximately $8.5 million in general obligation promissory notes for various public purposes was approved Tuesday, March 1, by the village council.
Hobart Village Administrator Aaron Kramer said $5.87 million of that is for interchange improvements and road construction projects, which includes the final payment of $1,458,782 to Brown County for the State Highway 29/County VV Interchange Project, Centerline Drive, Larsen Orchard Parkway and Founders Terrance Extensions, and Centerline Drive Extension Lighting Project, with debt service paid by Tax Incremental District (TID) #1.
He said $2.37 million would go to bond refinancing from 2012 for what he called modest savings with $1.46 million to be paid by TID No. 1 and $910,000 to be paid. by the sewer service.
Kramer said the expected repayment schedule for the Notes is based on an approximate interest rate of 2.35%.
“Our best estimate is 2.35%,” he said. “It’s going to be more than what we paid last year when we made the bond…”
Based on information provided to the village by its financial consultant, Brian Della of PMA Securities, the interest on $8.5 million, once the notes are paid in 2032, would amount to $1,380,621.
“As you can see from the projections on new debt, the majority of the principal will be repaid between 2028 and 2032,” Kramer said. “We program them as 10-year notes, instead of a 20-year bond. There were arguments to go both ways, but the main thing about the 10-year note is if for some reason we haven’t spent all the money, we can reallocate it. It’s easier to reassign a rating than a bond for another public infrastructure project, or something like that.
He said the tickets are redeemable March 1, 2030.
Kramer said refinancing the bonds from 2012 should save interest costs of about $37,000 for TID No. 1 and about $23,182 for sewer service.
After the resolution was passed, he said he and Hobart Clerk-Treasurer Erica Berger will participate in a call on March 21 regarding a Standard & Poor’s rating, with the day of the sale taking place on April 6 when the board meets. to pass the final resolution awarding the Remarks.
Kramer said the village will send the county final payment for the exchange project on April 29, while the 2012 bonds will be repaid on May 6.
“This is all tax increase financing debt, so there is no impact on the general fund debt draw down,” he said.
Autumn Joy Project
In separate action, council awarded a $399,682 contract to MCC, the lowest of 12 bidders, for the Autumn Joy Road project, which includes road works, water, sanitary sewer and water service. storms.
Kramer said the village will not have to borrow to do the work because reserve funds from TID No. 2 and the stormwater fund will be used for the project, which will provide a second route of entry and exit from the Southwinds Estates Subdivision.
Director of Public Works Jerry Lancelle said the project should be completed in October.