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La Grange Park approves MWRD IGA and bond ordinance to advance central-area sewer separation project
Summary
Trustees approved an intergovernmental agreement with the Metropolitan Water Reclamation District of Greater Chicago to reimburse 43% of construction costs for a central-area sewer separation project and adopted a bond ordinance authorizing up to $5 million in general-obligation bonds to finance the village’s share; staff said no sewer rate increase is required.
The Village of La Grange Park on Dec. 13 approved a pair of financing steps tied to a central-area sewer separation program: an intergovernmental agreement (IGA) with the Metropolitan Water Reclamation District of Greater Chicago (MWRDGC) to reimburse a portion of construction costs, and a revised bond ordinance authorizing issuance of up to $5 million in general-obligation bonds to support the project.
Public works staff said MWRD had approved the village’s funding application under its stormwater partnership program and that the MWRD will reimburse the village for 43% of eligible construction costs up to a stated maximum. Trustee Sheehan and others praised staff and the MWRD partnership; Trustee D'Aferrio’s finance committee presentation recalled prior approvals and said the village had already accepted $4 million in MWRD assistance and intended to issue up to $5 million in bonds, with additional grants and village reserves to provide remaining funds.
Finance staff told the board the annual debt service on the proposed bonds is anticipated to be approximately equal to current sewer debt service (the village currently pays about $390,000 annually on prior sewer bonds until 2025) and stated no sewer-rate increase would be required to support the new debt service. The board voted unanimously to approve the IGA and adopt the bond ordinance.
The IGA and bond ordinance move the project forward to design and construction phases contingent on the usual contracting and funding conditions. Formal bond sale parameters were authorized by ordinance; the village will proceed with sale under terms consistent with the ordinance and applicable law.
