RURAL BOND BANK HELPS LOCAL GOVERNMENTS

Lieutenant Governor Bob Kustra recently announced that the Illinois Rural Bond Bank completed its eighth pooled bond issue, totaling $5 million for seven units of local government.

"The Rural Bond Bank continued to fulfill its commitment to provide low-cost capital to rural Illinois today by issuing bonds on behalf of seven communities," said Kustra, who chairs the Rural Bond Bank.

Interest rates ranged from 4.00 to 6-3/8 percent. The proceeds of the recent issue funded loans to rural communities in amounts ranging from $140,000 to $2.6 million.

The local governments participating in the Spring 1994 bond issue are:

• City of Belvidere (Boone County) $2,635,000 for water improvements;

• City of Carmi (White County) $1,000,000 for water improvements;

• Village of Illiopolis (Sangamon County) $280,000 for water improvements;

• Village of Junction City (Marion County) $170,000 for refinancing;

• City of New Boston (Mercer County) $200,000 for a water treatment plant;

• South Fork School District No. 14 (Christian County) $140,000 for working cash; and

• Village of West Salem (Edwards County) $140,000 for sewer extension.

"Meeting the financing needs of rural Illinois in a cost effective and economically beneficial manner remains the top priority of the Rural Bond Bank," said Kustra. "To date, the Rural Bond Bank has produced a savings of nearly $4 million for 58 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 eight pooled bond issues totaling $42,560,000.

Page 22/ Illinois Municipal Review / June 1994