The Forest Preserve District of Will County’s board of commissioners voted April 12 to approve a $17 million bond refunding measure that it says will save the district approximately $1.5 million in debt service costs.
The general obligation bonds were issued in 2008 and have an average interest rate of 5 percent, while the new refunded bonds will have an estimated interest cost of 2.18 percent.
The district said savings from the refunding will be used to pay its portion of costs associated with an early retirement incentive approved by the board in October 2014.
John Gerl, chief financial officer for the district, expects the ERI will result in a net savings of more than $2 million in salaries and benefits are expected over the next five years. Currently, 13 employees, or approximately 10 percent of the district’s staff, have participated in the ERI program, which began July 1, 2015, and ends June 30.
The board is also considering using its cash reserves for a capital improvement program, according to a news release from the district. Officials said a sufficient amount of money would remain in reserves for any unanticipated emergencies.
“Savings from the bond refunding and ERI program will allow the district to use cash reserves for capital projects that will maintain and enhance the preserves,” Board President Suzanne Hart said in the release. “I’m very proud of the fact the district continues to deliver quality services to our residents in a very cost efficient manner.”
Finance Committee Chairman Ray Tuminello, of New Lenox, highlighted the fact that the district will not have to borrow money to accomplish the proposed capital projects.
“The Forest Preserve District is finding ways to use existing funds to get work done, which is a fiscally responsible strategy that I fully endorse,” he said.