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Westmont approves up to $35 million bond to fund new fire station, water main and infrastructure work
Summary
The Westmont Village Board authorized up to $35 million in general obligation alternate‑revenue bonds to pay for a new south‑end fire station, a public‑works cold storage facility and water‑system improvements including 1.25 miles of water main replacement; funding sources cited were non‑home‑rule sales tax and water‑rate revenue, with property tax a backstop.
The Westmont Village Board voted March 5 to authorize up to $35 million in general obligation alternate‑revenue bonds to pay for a new south‑end fire station, public‑works storage and a slate of water and infrastructure improvements.
Director Altech told the board the package would cover the fire station replacement (estimated in the $25–$31 million range), the public‑works cold storage facility and other infrastructure projects, and 1.25 miles of water main replacement and water‑plant improvements. He said the village plans to pay the bonds primarily from non‑home‑rule sales tax and water‑system rate revenue, with a pledge of 1% state‑shared sales tax and property taxes as a secondary backstop.
"We're seeking the approval to issue officially issue $35 million in bonds," Director Altech said in his presentation, laying out a 20‑year term and a plan to make a principal payment in year one to reduce long‑term interest costs. He estimated that an early principal payment would save the village roughly $650,000 in interest over the life of the bonds.
The presentation noted Westmont's strong credit profile: the village currently carries a double‑A plus rating and staff expect to maintain a high rating after an upcoming S&P meeting. Market conditions were described as favorable; staff said they expect the sale toward the end of April and were targeting a borrowing rate in the high‑3% range if market conditions hold.
The board approved the authorization by roll call (motion by Trustee Scales, second by Trustee Guzo).
Related contract award: water treatment work
In related business the board also authorized a construction contract for water‑system work. Director Ree recommended awarding the water treatment control and pumping‑station demolition and chlorination‑system replacement contract to DM Mechanical Industries for a base bid of $598,000 plus a $30,000 additive alternate, for a total $628,000. The single bid was about 25% higher than the engineer's estimate, which staff attributed to tight contractor schedules and volatile market pricing.
Ree said the project will remove an old diesel generator and underground fuel tank, abandon obsolete clear‑well piping, and replace a gaseous chlorine system with liquid sodium hypochlorite to improve staff safety. She described the work as a preparatory step ahead of larger pump, VFD and electrical upgrades planned for 2027.
What happens next
Staff will proceed with the bond sale process and expect a late‑April sale date if market conditions remain stable. The water contract award moves the demolition and chlorination‑system work into the construction phase; staff said they will coordinate timing and inspections through the usual permitting and contract administration processes.
The board's vote authorizes the borrowing and advances the projects toward design and construction without creating an immediate property‑tax levy because the village intends to abate property‑tax support during the bond term.
