Refinancing lowered interest rate nearly 2.5 percent; Park District awarded Aa2 Moody rating
August 7, 2015
TINLEY PARK, IL: At the August 5 Board Meeting, the Board of Park Commissioners of the Tinley Park-Park District approved the refinancing of the remaining $5,370,000 of 2005 authorized general obligation bonds and saved taxpayers over $244,500 with the lower interest rates available now. The District sold the bonds competitively following the best practices in Debt Management. Nine bidders participated, bidding 78 times to determine the lowest bidder at a final interest rate of 1.2547 percent replacing the 3.718 percent interest rate on the remaining bonds from 2005, which will retire in 2019.
The District’s bond rating with Moody’s Investors Service was retained at the Aa2 level and is among the highest rating of Illinois park districts. The rating report noted the District’s sizable tax base, above average wealth levels, healthy operating fund reserves and strong liquidity position. The Board of Commissioners expressed that they are very proud of the high rating from Moody’s as it represents the District and its Commissioners have been responsible stewards of taxpayers’ dollars, and they were encouraged by the savings it will bring to residents. The decision to refinance the bonds was part of the District’s commitment to continually evaluate their financial position and provide quality recreational services at a reasonable expense to the residents of Tinley Park.