Executive Report_____________________________

$100 million bond sale

General obligation bonds totalling $100 million were sold by the State of Illinois October 20 at an average interest rate of 11.563 percent. Although the interest rate was almost two points above the 9.64 percent Illinois paid when it borrowed money on a similar bond issue in May, the state's AAA credit rating held the cost below the typical current municipal bond rate. The sale pushes the state's aggregate debt from bond sales to about $4.9 billion. The sale is the first of $380 million worth of bonds that the Thompson administration plans to sell by June 30, 1982, the end of the current fiscal year.

Home mortgage program

A $50 million home mortgage deposit program to help home buyers and aid the state's ailing construction industry was announced by state Treasurer Jerry Cosentino and Gov. James R. Thompson November 3. The response was immediate; the money was used up in 14 days by participating financial institutions to finance low-interest mortgages for newly constructed homes, condominiums and town houses in Illinois. The state's first mortgage deposit program was established in May 1980 and allocated $63 million in state deposits to finance 900 mortgages.

Sewer systems reaching capacity

A total of 167 sewer systems in Illinois have reached a point where new connections are either restricted or given special consideration before being permitted, the Illinois Environmental Protection Agency (IEPA) reported in October.

Seventy-one of the sewer systems are on the critical review list, which means that the system is approaching hydraulic capacity or that the treatment plant is approaching capacity, and further expansion must be carefully reviewed because it could result in violation of the state's water quality program. Ninety-six systems are on the restricted list and will not be permitted by the IEPA to add new connections that would discharge 1,500 or more gallons of domestic sewage daily. In many cases, the sewage treatment plants themselves are not the problem; often it is the sewer lines or the lift stations that are nearing the limits of their capacity.

New rapid transit cars for the CTA

The U.S. Department of Transportation and the State of Illinois have agreed to purchase 300 new rapid transit cars for the Chicago Transit Authority, Gov. James R. Thompson announced in October. This purchase will take place over the next five years at an estimated cost of $195 million and will provide 300 cars in addition to 300 cars now being purchased with state and federal grants totalling $175 million. The Regional Transportation Authority is contributing $5 million for the purchase of the first 300 cars. By approving the option to buy at this time, the state and federal government hope to save about $250,000 per vehicle. The first cars are scheduled for delivery in 1984.

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January 1982/Illinois Issues/31