Montgomery authorizes up to $35 million in waterworks bonds and a $3.9 million IEPA loan for system upgrades
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Summary
The Village of Montgomery approved two ordinances to finance water-system work: Ordinance 21-65 authorizes up to $3,905,000 in waterworks revenue bonds through the Illinois EPA low-interest loan program for water-main replacements; Ordinance 21-66 authorizes up to $35,000,000 in bonds (or G.O. alternative) to refinance prior certificates and fund the Water Link project.
The Village of Montgomery Tuesday approved two ordinances authorizing debt to finance and refinance water-system improvements.
Ordinance 21-65 authorizes the issuance of up to $3,905,000 in waterworks revenue bonds through the Illinois Environmental Protection Agency's low-interest loan program to fund a water-main replacement program. Director Minnick told trustees the work is targeted for South River Street, Jefferson Street and Case Street and is tied to the village's water-loss reduction efforts. Minnick said the current loan rate is about 1.62 percent and the term is anticipated to be 30 years.
The board waived the first reading and approved the ordinance on the consent motion; the roll call carried 6'0'00.
The board also approved Ordinance 21-66, which authorizes the issuance of bonds not to exceed $35,000,000, or in lieu thereof general obligation bonds as an alternative revenue source. Director Minnick said the ordinance would refinance $12,500,000 of debt certificates issued in 2024 that mature May 1, 2026, provide capacity for additional preliminary Water Link project costs and cover interim financing and payments to the DuPage Water Commission as project costs become final.
Minnick said the bonds are anticipated to have a 25-year term and that debt service would be paid from water system revenues. He added that if the village does not obtain low-interest loans in this funding round for planned projects, staff would defer and reapply in the next cycle.
The ordinances passed on roll call votes with no recorded dissent. The board directed staff to proceed with next steps in securing financing and to return any implementing documents for execution at subsequent meetings.
