Wauconda board approves nearly $6 million in bonds for water and sewer upgrades

The Wauconda Village Board on March 3 approved an ordinance authorizing the issuance of approximately $5,985,000 in general obligation bonds to pay for improvements to the village’s combined waterworks and sewerage system.

Director McNattis introduced the ordinance as the final step in the village’s bond issuance process. Mark Geratina, the village financial manager, told the board the village held an auction the same day with 59 bids; the winning bidder was Stifel Nicolaus at a 3.62% interest rate over 20 years. Geratina said the sale is expected to generate about $6.1 million and later noted an approximate proceeds estimate of $6,120,000. "Interest rates continue to trend down over the past couple months, so the village — it was a great time for the village to issue these bonds," Geratina said.

The bonds are intended to fund water and sewer capital improvements. Geratina said the bonds are scheduled to close on March 18, when the village will receive the bond proceeds. The ordinance, as read by the clerk, provides for levy and collection of a direct annual tax sufficient to pay principal and interest and authorizes the sale of the bonds to the purchaser.

A motion to approve the ordinance was made and seconded. The clerk conducted a roll-call vote in which each trustee recorded "yes," and the mayor declared the motion carried.

The measure will allow the village to move forward with planned water and sewer projects pending the bond closing on March 18.