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Oswego approves up-to-$26.248M promissory note as interim financing for DuPage Water connection
Summary
Trustees approved a not-to-exceed $26,248,000 general obligation promissory note to provide interim financing for part of the village's connection costs to the DuPage Water Commission, while staff continues to work on a WIFIA loan; board discussed alternatives including GO bonds and a bank line of credit.
Facing a possible timing gap in federal WIFIA funding for the village’s connection to the DuPage Water Commission, the Village of Oswego board approved an ordinance authorizing a not-to-exceed $26,248,000 general obligation promissory note to provide interim financing for a portion of the connection costs.
Finance staff said the WIFIA loan (an EPA program) has not closed as quickly as anticipated but that there has been no indication of an outright denial. Staff presented alternatives including issuing general-obligation bonds or drawing on a line of credit from Byline Bank for up to 12 months. Treasurer/finance staff noted that general-obligation bond rates were roughly 4.8% at the time of discussion while the WIFIA loan rate was about 5% but carried greater flexibility (deferred draws and payments). The board approved the note by roll call to ensure the village can make the upcoming DuPage Water Commission payment if WIFIA funding is delayed.
Staff will continue to refine cost calculations and rate impacts as bids and other project costs are finalized and report back to the board.
