Arlington Heights sells bonds for police station
Arlington Heights trustees Tuesday approved an ordinance providing for the issue of $32.9 million in bonds for a new police station.
Officials were pleased with the results of the bond sale Tuesday, which were announced at the village board meeting by Kevin McCanna, president of Speer Financial Inc.
He said six bidders showed up and submitted 29 bids. Starting at an interest rate of more than 3 percent, the bidding gradually dropped to KeyBanc's bid of 2.93 percent, which will be paid over the 20-year life of the bonds.
“It was a very popular piece of paper,” he said, noting the market is experiencing uncertainty.
As a result, he said, municipal bonds are being viewed even internationally as good investments.
He said the bond rating was confirmed at Aa1 by Moody's Investors Service, with its report citing the village's credit strengths as including a large tax base, ample operating fund reserves, substantial financial flexibility through home rule and a low debt burden.
“I was very happy to see the rate at what it was, versus what we thought it might be,” said Trustee Bert Rosenberg.
Trustee John Scaletta asked Arlington Heights Finance Director Tom Kuehne why the village is borrowing the money before it has approved a formal project.
Kuehne explained the state is considering a two-year property tax freeze, so financial advisers recommended pushing up the bond sale to January.
“Fortunately, in our case, our timing was impeccable,” Kuehne said.
Scaletta wryly replied, “So finally the state's inability to pass a budget has actually paid off for the village of Arlington Heights.”
Residents presented a different perspective during the public comment period.
Jack Halpin, a resident for nearly 40 years, said that the fourth floor of village hall, which is being used as a forensic storage room, should be used instead as a senior center — “or something else that the residents that paid $40 million for this edifice can actually use.
“You know and I know that the cost of these buildings are a sore point to many of the residents of the village,” Halpin said.