Lieutenant Governor Bob Kustra recently announced that the Illinois Rural Bond Bank completed its seventh pooled bond issue, totaling $9.45 million for the benefit of eight units of local government.

"Once again, the Rural Bond Bank demonstrated its ability to provide low-cost capital to rural Illinois communities" said Kustra, who chairs the Rural Bond Bank. "Greater flexibility in working with local governments and broader involvement with the financial community enabled the Rural Bond Bank to complete its largest bond issue to date and command more favorable rates in the market," said Kustra.

Interest rates ranged from 3.75 to 5.75 percent. The proceeds of the recent issue funded loans to rural communities in amounts ranging from $150,000 to $3.8 million.

The local governments participating in the Fall 1993 bond issue are:

• Barclay Public Library District (Macon and Logan Counties) $150,000 for an addition to the library;
• City of Coffeen (Montgomery County) $305,000 for refinancing existing water revenue bonds;
• City of Gillespie (Macoupin County) $520,000 for sewer system improvements;
• Macomb Public Building Commission (McDonough County) $2,155,000 for an addition to the county's nursing home and refinancing existing bonds;
• City of Monmouth (Warren County) $3,835,000 for water and sewer system improvements and refinancing existing bonds;
• Village of Norris City (White County) $615,000 for refinancing existing water revenue bonds;
• Village of Rochester (Sangamon County) $600,000 for a new water tower; and
• Village of Warrensburg (Macon County) $420,000 for storm sewers and construction of a new village hall.

"The Rural Bond Bank is committed to reducing borrowing costs and obtaining lower interest rates for the local governments we serve," said Kustra. "To date, the Rural Bond Bank has produced a savings of nearly $3 million for 51 communities working to improve schools, roads, and sewers and complete other projects that make those communities more attractive for economic development."

Since its creation in 1989, the Rural Bond Bank, which issues tax-exempt bonds on behalf of local governments for capital improvement projects, has completed seven pooled bond issues totaling $37,555,000.

Page 14 / Illinois Municipal Review / ]anuary 1994