At its Aug. 14 meeting the Finance Committee approved a resolution renewing the city’s $10 million line of credit with Old Second National Bank for a one-year term expiring June 30, 2026, Stacy Peterson, the city’s chief financial officer, told the committee.

Peterson said the outstanding balance on the line is approximately $6.688 million and that the current interest rate on the outstanding amount is 6.39 percent. She said the line, which expired in June, is being renewed for one year so staff can review the city’s finances during the next budget process and determine whether to pay down and discontinue the line. “What we’re going to do through the next budget process is look at the city’s finances to see if we can pay down this line of credit and then discontinue it,” Peterson said.

Committee members asked why staff requested only a one-year renewal rather than a longer term and how the repayment process works. Peterson said the one-year renewal is standard practice to allow an annual assessment of the city’s finances; she described the line’s original purpose as financing land acquisitions and facilitating economic-development projects without issuing bonds. Peterson said the city established two lines in 2019 with Fifth Third Bank and Old Second; the city later issued a bond to pay off the Fifth Third line, and repayments from economic-development projects will be used to reduce the outstanding balance on the remaining line.

A motion to renew the line of credit was made by Alderman Carl Franco and seconded by Alderman Dan Barrero; the committee approved the resolution by a 5–0 vote. Committee members confirmed there was no need for a closed session on the item and the meeting adjourned shortly afterward.