Budget committee recommends GO and sewer bond plan to fund roads, riverwalk and sewer work

KANKAKEE, Ill. — The City of Kankakee budget committee voted July to recommend that the City Council proceed with a general-obligation bond issue and a sewer revenue bond to fund several capital projects, including major road repairs, Bookman Boulevard reconstruction and sewer infiltration-and-inflow work. The committee’s recommendation follows a presentation from Bob Vail of Bernardi Securities laying out market conditions, a list of near-term capital projects and a proposed debt structure the city says will maintain its current tax-rate trajectory. The committee’s vote: Motion to recommend proceeding with the bond issuance was made by Alderman De Vara and seconded by Alderman Jones; the committee recorded aye votes from Aldermen O’Brien, O’Singa, Marzak, Navaraz, Michael Johnson and Jones. The presentation outlined two linked financing components. Vail described a proposed general-obligation issue intended to generate roughly $9 million for city capital needs and a separate sewer-related revenue bond sized at about $4 million. Vail told the committee that, under the structure presented, “we’re basically at the exact same tax rate we are currently,” and that preliminary pricing (if bonds were sold at current market levels) would result in interest-rate assumptions near 4.69% for the GO issue and about 4.33% for the sewer issue. Mayor and city staff summarized the capital list the financing would support, including a proposed $4.5 million concentrated road project in 2026 using Motor Fuel Tax and borrowed funds; engineering and reconstruction of Bookman Boulevard (estimated near $800,000); planning and engineering for Curtis Avenue to position it for MPO funding; riverfront-trail and Riverwalk engineering and future phases; West Avenue schematic design to chase grants; hydro plant completion; and ongoing sewer I&I (infiltration and inflow) basin work. The mayor said the total projects identified on the list came to about $9,450,000. Vail also recommended refinancing an outstanding 2013 sewer bond that is currently callable, estimating a refinancing savings of roughly $108,000 at current rates (about a 2.6% present-value savings), while noting the savings are market-sensitive: a 25-basis-point move would materially change that figure. Timeline and next steps presented to the committee call for: first-reading of bond ordinances at the Aug. 4 City Council meeting, final reading/adoption Aug. 18, bond pricing targeted around Sept. 11 and closing around Sept. 24. Vail told the committee that seasonal market dynamics make early- to mid-September a favorable window for municipal issues because more competitive demand often exists before the year-end rush in municipal supply. Discussion versus action: staff and the committee discussed projects, repayment sources (including use of some ESU/sewer revenues and expectation of continued Motor Fuel Tax receipts), and alternatives. The formal committee action was a recommendation to the full council to proceed with the bond issuances as described. The committee did not set final interest rates or authorize sale; those terms will be set at pricing and by subsequent council ordinance approvals.