La Grange Park holds public hearing on up to $5 million sewer bonds for central-area sewer separation project

The Village of La Grange Park Board of Trustees convened a public hearing on a proposal to issue up to $5,000,000 in bonds to fund a central-area sewer separation project intended to reduce flooding in the village.

Finance Director Larry Noller told trustees the total project is estimated at approximately $13,200,000 and that the village expects to fund part of it through a partnership with the Metropolitan Water Reclamation District of Greater Chicago (MWRD) and other grants and reserves. "We are intending to issue up to $5,000,000 for the project, and those bonds are...going to be alternate revenue bonds, which means they are going to be backed by the sewer fees collected by the village, but they also are backed by a pledge to issue property tax if those sewer fees are not adequate," Noller said.

Noller said debt service from earlier sewer bonds issued in 2006 will roll off in 2025 and that the new bonds are expected to have debt service approximately equal to current debt service. "That means those bonds will be issued with the intention of not increasing the sewer fees at this time," he added.

Why it matters: The central-area sewer separation project aims to reduce flooding in the village; the board and staff say the proposed financing mixes local reserves, a roughly $4,000,000 partnership with MWRD, grant funds and the bond proceeds to cover the remaining cost.

In detail: Noller described the bonds as alternate revenue bonds secured primarily by sewer fee revenue, with a backstop pledge of property tax if sewer fee revenue proved insufficient. Trustees asked no substantive questions during the hearing; Trustee Lautner said the project has been "a long time coming" and praised staff and partners for securing funding that should prevent immediate fee increases for residents.

Public participation: No members of the public spoke during the hearing. After trustee comments the board moved to close the hearing; the motion to close passed on a roll-call vote called by the clerk.

Next steps: The hearing was informational under the Illinois Bond Issuance Notification Act. No vote to issue bonds occurred at the hearing; any subsequent bond issuance would require administrative steps and a formal authorizing action by the board.

Ending: Village staff and consultants will proceed with the administrative steps required for bond issuance and project implementation; board members indicated the village will attempt to minimize rate impacts on residents while proceeding with the sewer work.