KUSTRA ANNOUNCES TAX-EXEMPT PROGRAM
FOR RURAL ILLINOIS

Lieutenant Governor Bob Kustra announced a new initiative from the Illinois Rural Bond Bank that will provide local governments in rural Illinois with a cost-effective financing option for public improvement projects and equipment purchases.

"Local governments in Illinois need affordable financing for small to medium size projects of under $1 million, but existing options often are either too burdensome or too expensive," said Kustra, who serves as Chairman of the Rural Bond Bank.

"Historically, rural governments have had to finance major purchases — like a fire truck or water tower — by depleting their cash reserves, leasing from the vendor or issuing bonds. All are costly options," Kustra said.

The new Tax-Exempt Lease Financing Program by the Illinois Rural Bond Bank will provide an economically viable way to meet this need.

The Rural Bond Bank's new lease program will allow local governments to use an installment-purchase contract (lease agreement) to finance the public improvement or equipment purchase. The Rural Bond Bank will provide 100 percent financing at favorable rates and low transaction costs.

A simplified borrowing process and a quick turnaround time will add to the program's benefits.

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 totalling $37,555,000.

For additional information about the lease program, contact Tim Bobinsky, Executive Director of the Rural Bond Bank, at 217-524-2663. •

Page 22 / Illinois Municipal Review / April 1994