Streamwood board approves bond refinancing, expects to save $410,000

Streamwood trustees this week approved a plan to borrow up to $8.8 million to refinance a 2005 bond issue, a move officials say will save the village an estimated $410,000 through lower interest payments.

Last month, the village board hired Robert Baird & Co. to analyze a possible refinancing of the $15 million in bonds issued in 2005 for construction of the police station and improvements to municipal complexes.

The analysis showed that goals for debt refinancing — saving more than 3 percent of refinanced bonds and twice as much as the bond issue’s cost, but without extending the repayment period — would be met.

The cost of issuing the new bonds is estimated at $160,000, well below half the anticipated savings. The maturity date for the new bonds would not go past 2020, the same year as the 2005 bond issue.

Village finance director Mary Johnson said this is the right to time to refinance because interest rates are favorable.

Trustee Bill Harper said the decision seemed clear cut since the plan meets village standards.

No one opposed the resolutions, and a bond record-keeping policy was also approved. The village’s finance director will be in charge of keeping records for bond obligations.

Officials said they hope to issue the new bonds as quickly as possible to capture current low interest rates. The village hired the firm Chapman and Cutler, LLP to serve as bond counsel.