The Illinois Rural Bond Bank, which finances infrastructure projects for local governments in 96 counties, completed its second bond issue Tuesday, May 7th, totaling $3,240,000 for 9 units of local government. The first Bond Bank bond issue occurred December 4th, 1990, in the amount of $3,515,000 to finance 7 local governments.

Lieutenant Governor Bob Kustra, by statute, chairs the Rural Bond Bank.

Kustra said, "I am very pleased that the Rural Bond Bank continues to serve the needs of local governments in the non-metropolitan counties of our state. In this Spring bond issue, we have saved tax dollars for a school district, three local water systems, three sewerage systems, and two fire protection districts."

"The Rural Bond Bank helps local governments improve their schools, water and sewer systems, undertake new local infrastructure and capital developments, and save local tax dollars in the process.

"The Rural Bond Bank was established to help local governments obtain lower cost credit", Kustra said. "In the past, smaller governments have been infrequent issuers of bonds, and were not well known in the bond-buying marketplace. Because of that, the interest rates and issuance costs were often much higher than those paid by larger units of government, which undertake large bond issues frequently and have name recognition in the bond markets."

"The Rural Bond Bank gives to smaller units of local government — for example, school districts, cities and towns, counties, townships, water districts, and fire protection districts — the same credit advantages and savings enjoyed by large bond issuers."

"The Rural Bond Bank helps local governments set up their financings, and purchases their bonds at A+ interest rates and reduced issuance costs, benefits which are usually available only to larger governments."

"The funds from the Bond Bank flow back to the local governments in the 'bond pool' at significant interest cost savings, as compared to the interest rates which would have paid if they had issued bonds on their own."

"The Underwriter serving the Bond Bank, Smith Barney Harris Upham, purchased the Series 1991-A Rural Bond Bank bonds at very attractive, cost-saving rates for the local governments. The Underwriter is selling the bonds to Illinois "retail" investors and institutional buyers. Rural Bond Bank bonds are A+ rated and are double tax exempt.

Local governments participating in the Spring, 1991 bond issue:

City of Albion (Edwards County) $710, 000
New water transmission lines and refinancing of prior improvements

East Side Fire Protection District (St. Clair County) $430,000
Long term financing for new fire station

Eaton Water District (Crawford County) $170,000
Required refinancing of Farmers Home Administration loan

Somonauk Fire Protection District (DeKalb and La- Salle Counties) $225,000

Long term financing for new fire station City of Farmington (Fulton County) $300,000

Improvements to City water system Village of Forreston (Ogle County) $235,000

Improvements to wastewater treatment facility to comply with EPA mandates Village of Hanna City (Fulton County) $315,000

Improvements to repair and enlarge wastewater treatment system, and refund old bonds Fulton County Community School District # 3 (Cuba) (Fulton County) $245,000

Installation of new roof to meet School Life and Safety Code
Village of Warrensburg (Macon County) $260,000

Mandated refunding of U.S. Farmers Home Administration financing of sewerage works

Total. . . includes Issue Reserve $3,240,000 "Local government leaders need to know when

June 1991 / Illinois Municipal Review / Page 17

funds will be available for capital development projects. As a result, the Bond Bank Board of Commissioners established December 1st and May 1st of each year as definite Fall and Spring dates for future bond issues." The Rural Bond Bank can assist, however, in financings during all other months of the year.

"The Board of Commissioners joins me in urging all local governments which are planning to rebuild or develop their schools, water and sewer systems, and related local government projects to contact the Rural Bond Bank for assistance in obtaining their financing at the cost savings which are possible through the Bond Bank."

The Commissioners of the Rural Bond Bank are:
State Treasurer Patrick Quinn, Vice Chairman Robert Anstine of Macomb (McDonough County) Wallace Furrow of El Paso (Woodford County) I. Ronald Lawfer of Stockton (Jo Daviess County) James Walsh of Carmi (White County) Edward Williams of Decatur (Macon County) •

PRESENTS AWARD
The DuPage Mayors and Managers Conference presented the Illinois Municipal League with an "Intergovernmental Cooperation Award, In Recognition of the Generosity of the Illinois Municipal League".

The plaque was presented to League President Rolland Lewis, Mayor of Mount Vernon, by DuPage Mayors and Managers President, Bill Murphy, Mayor of Woodridge on May 17 at their Annual Banquet.

Page 18 / Illinois Municipal Review / June 1991