Agenda Item:
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Consideration and Action on an Ordinance Providing for the Issuance of Approximately $10,090,000 General Obligation Bonds, Series 2026A and Approximately $3,895,000 General Obligation Bonds, Series 2026B, of the Village, to Finance Various Capital Improvements in and for the Village, Providing for the Levy and Collection of a Direct Annual Tax Sufficient to Pay the Principal and Interest on Said Bonds, and Authorizing the Sale of Said Bonds to the Purchasers Thereof
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Staff Contact: Nikki Larson, Deputy Village Manager/Chief Financial Officer
Budget Impact: Budgeted
Budget Fund: 130-000-000-39205, 200-000-000-39205
Strategic Priority Addressed: Reliable Infrastructure, Community Resilience, Economic Vitality
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BACKGROUND AND ANALYSIS
At the June 18, 2026 Village Board Meeting, the Village Board will be asked to consider approval of an ordinance issuing two series of planned bond issuances. General Obligation Bond Series 2026A is proposed to finance infrastructure improvements throughout the Village over the next three years and General Obligation Bond Series 2026B is proposed to finance the first installment of bond issuances for the Glencoe Public Library renovation and expansion project.
General Obligation Bond Series 2026A
The Village’s Community Investment Program (CIP) establishes priorities for infrastructure investments (including water production and distribution systems, storm and sanitary sewer systems, streets) and capital equipment and vehicles (such as squad cars, ambulances and other various vehicles and equipment) over the next 10 years. The CIP also includes a corresponding funding plan to finance these expenditures through a combination of charges for services, cash reserves, grants and bond proceeds.
The Village’s current CIP approved as part of the Calendar Year 2026 Budget contemplated the issuance of $7.0 million in General Obligation Bonds and $3.4 million in General Obligation Alternate Revenue Water Bonds. However, following discussions with the Village’s financial advisors and bond counsel it was determined that the Village may instead issue a single series of $10.4 million in General Obligation Bonds. While the accounting for repayment of the bonds (Water Fund supported projects versus non-Water Fund projects) can be handled administratively, issuing two separate types of bonds is no longer necessary now that the Village is a home rule unit of government.
The improvements to be funded with this series of bonds include Sanitary Sewer Improvements ($1.5 million), Storm Sewer Improvements ($400,000), sidewalks and bicycle paths ($1.5 million), street resurfacing ($3.3 million), and water main improvements ($3.4 million). The portion of bonds allocated to water main improvements will focus primarily on work planned for Bluff, Milton, and Grove in 2026, while also funding the subsequent two years of planned improvements.
General Obligation Bond Series 2026B
The Glencoe Public Library is planning a comprehensive renovation and expansion of its existing facility originally constructed in 1940. On March 17, 2026 voters approved a Village-initiated non-binding referendum authorizing the issuance of $17.5 million in bonds to fund renovations and improvements to the Glencoe Public Library. Now, as the Library enters into the planning stage for this upcoming project, they have requested that the Village issue the first installment of bonds to fund the initial soft costs for the expansion. It is anticipated that approximately $4 million will be needed for this phase of the project based on the draft Glencoe Public Library addition and renovation project budget. Soft costs include architecture and engineering services, surveying, commissioning, environmental consulting, geotechnical services, permitting support, materials testing, development management and other professional consulting expenses.
Financing Summary
The issuance of General Obligation Bonds includes a clause that secures the debt associated with the bonds using Village’s full faith and credit (i.e. taxing authority), which typically generates lower interest rates than a more narrowly defined revenue bond. This clause attaches an automatic lien on properties within the Village for annual payments on the outstanding debt, which would allow the Village to levy a property tax to repay a portion or all of the annual debt payments, at the option of the Village Board. Regardless of whether a tax is levied, this added layer of security on bonds provides the Village with additional options (that would not otherwise be available if this project was funded in cash) if an unanticipated financial emergency or revenue reduction occurs. As part of the annual budget process, the Finance Committee conducts an annual review of the Village’s financial policies and projections to consider abating, or canceling, the automatic levy that would be associated with this debt and paying annual debt payments outside of reserves instead. If it is deemed sustainable to abate the levy, that would allow the Village to lighten the property tax burden of the residents that would otherwise exist automatically. On the contrary, this process also allows for the execution of a levy in the event a financial downturn occurs. This process is designed to retain as much flexibility as possible for the Village.
Bond Sale
To proceed with the issuance of both series of the General Obligation Bonds, Speer Financial, the Village’s financial advisor, will conduct a competitive sale on the morning of Thursday, June 18, with an anticipated closing date of July 2, 2026. Copies of the results of the sale and a final bond ordinance will be distributed to the Village Board at the meeting for consideration and approval.
Members of Speer Financial and staff will be available at the meeting to present the results of the competitive sale and to answer any questions about the project or the financing process. A copy of the preliminary official statement that was distributed earlier this month to market the sale of the bonds has been included in the packet for the Board’s review.
RECOMMENDATION
Staff is recommending the consideration of approval of the attached bond Ordinance to authorize the issuance of $10,090,000 in General Obligation Bonds to finance the Village of Glencoe’s infrastructure improvements and $3,895,000 in General Obligation Bonds to finance the first phase of the Glencoe Public Library’s renovation and expansion project.
MOTION
Move to approve an Ordinance Providing for the Issuance of Not to Exceed $10,090,000 General Obligation Bonds, Series 2026A, for the Purpose of Paying the Cost of Storm Sewer Improvements, Sanitary Sewer Upgrades, Street Resurfacing and Lighting, and Sidewalk Installation and Replacement, Within the Boundaries of the Village and for the Payment of the Expenses Incident Thereto, Providing for the Levy and Collection of Taxes to Pay Said Bonds, and Authorizing the Sale of Said Bonds to the Purchaser Thereof and the Issuance of Not to Exceed $3,895,000 General Obligation Bonds, Series 2026B, for the Purpose of Renovating the Glencoe Public Library and for the Payment of the Expenses Incident Thereto, Providing for the Levy and Collection of Taxes to Pay Said Bonds
ATTACHMENTS
1. Official Statement
2. Ordinance