Item 5E. Authorization to Appoint Successor Bond Registrar and Paying Agent

CLOSED: This discussion has concluded.

Superintendent's Recommendation:

MOTION TO ADOPT RESOLUTION NO. 25-26 TO AUTHORIZE THE APPOINTMENT OF A BOND REGISTRAR AND PAYING AGENT.

Prepared By: Howard D. Koolick, Outgoing Chief Financial Officer, and Shaan Hamilton, Chief Financial Officer

Background:

Commissioners are being asked to authorize the appointment of a successor bond registrar and paying agent. A bond registrar and paying agent is responsible for maintaining records of bond ownership and distributing interest and principal payments to bondholders.

In the past, the Park District provided its own bond registrar and paying agent services. The bond payment process was relatively straightforward until the early 2010s, when Depository Trust Corporation, the company that collects principal and interest due from issues and remits the amounts due to each bond holder, automated its process in order to ensure it could verify all amounts were correct. The new process became more complex and prone to error. Over the last ten years, several payments to bond holders were delayed by a day due to clerical errors. Due to the complexity of the bond payment process, many local governments use a bond registrar and paying agent to ensure accuracy of bond issuer records, as well as accuracy and timeliness of bond payments to bond holders.

Given staffing changes in the finance department and the complexity of the automated bond payment process, the Park District can reduce the risk associated with late bond payments if it removes the current bond registrar and paying agent and authorizes the appointment of an external party as successor bond registrar and paying agent. Finance staff discussed this option with the Park District’s bond advisor and bond counsel who both support this change.

Staff requested PFM Financial Advisors LLC (PFM), as the municipal bond advisor to the Three Rivers Park District, to issue a Request for Proposal (RFP) for bond registrar/paying agent services. The RFP requested quotes for a bond registrar and paying agent to manage the payment of the Park District’s thirteen outstanding bond issues. Responses to the RFP are to be received no later than Tuesday, December 16, 2025 at 1:00 p.m. The responses to the RFP will be shared with Commissioners at the Board meeting on December 18, 2025.

Given the extent of potential cost variability, an estimated range of annual costs is difficult to ascertain until final responses to the RFP have been received. The annual cost will be shared at the Board meeting on December 18, 2025 after final responses to the RFP have been received.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 1: You Belong Here

Goal 2: Parks Matter

Goal 3: Lead by Example

by ensuring the Park District handles its financial resources in a prudent and deliberate manner.

Attachments:

Resolution No. 25-26 Appoint Successor Bond Registrar and Paying Agent.pdf