The Village of Gilberts, Illinois successfully issued $11.72 million of Special Tax Refunding Bonds on June 24th, 2014. The Bonds were issued for the purpose of advance refunding a portion of the Village’s Series 2005 Special Service Area #15 Special Tax Bonds.
The Series 2014 Bonds are secured and payable from the special service area taxes levied on Special Service Area #15. The tax is to be levied on all taxable parcels within the Special Service Area on a pro-rata basis. Furthermore, there are additional credit enhancements included in the issue’s structure for the benefit of holders. The first is a debt service reserve account equal to the maximum annual debt service over the life of the bonds. Second, the bonds carry municipal bond insurance from Assured Guaranty Municipal Corporation, currently rated double-A by Standard & Poor’s.
The Area is located near Interstate 90 and Randall Road and generally located north of Higgins Road and East of Galligan Road. The Area was developed by The Ryland Group, Inc., a Maryland corporation and PAR Development, Inc., an Illinois corporation. The Area includes finished lots for two hundred thirty-six (236) large lot single-family homes, sixty (60) small lot single-family homes, seventy-four (74) duplex units, three hundred fourteen (314) townhome units, and 1.70 acres of commercial property. Currently there is buildable space in the Area for an additional 71 townhome units, 40 duplex units and 56.06 commercial acres that can be developed. Total equalized assessed value has grown from $26.7 million in 2008 to $39.2 million in 2013. Tax collections for the special service area taxes have been made in full each year through 2013. Annual debt service coverage is expected to be roughly 1.13x over the life of the bonds.