Montgomery trustees approve contracts, road awards and $31.2M bond sale to fund Waterlink work

The Village of Montgomery Board of Trustees on a unanimous vote approved a series of contract awards and adopted an ordinance authorizing the sale of up to $35 million in general obligation alternate revenue source bonds, finalized at a $31.2 million par amount to refinance prior debt and fund Waterlink-related work.

Director Wolf told trustees that the village solicited bids for several maintenance and capital items. The board approved the naturalized landscape maintenance contract to Pzone Associates after staff reported 16 packet pickups and three submitted bids and characterized Pzone as the responsible low bidder. Trustees asked staff to provide the prior five-year contract amount and the percentage change for the board’s records; staff said they would follow up.

The board also approved a building automation system upgrade for the police department, an item identified in the facility improvement plan. Wolf said the item was budgeted at $88,600 and that a purchase through the OMNIA Partners cooperative and the Train platform keeps like-systems consistent across village facilities.

For the 2026 infrastructure road program, staff reported six bids and recommended award to Builder Paving at a price noted as roughly $215,000 under budget. Trustees asked whether the budgeted underrun could be used to add work this year; staff said they would evaluate options and return with proposals if appropriate. A separate construction engineering PSA was approved to provide on-site construction management for the road program; the agreement is hourly and estimated in the budget, staff said.

On the bond issue, village finance staff and Anthony Miselli of Spear Financial described the competitive sale that took place earlier the same day. Miselli said the sale initially attracted 10 bids from three bidders; the winning bid produced a final true interest cost of 4.7386% and a resized par amount of $31,200,000. “That will provide the $18.1 million for capital projects and will pay off the 2024 debt certificate,” Miselli said, noting the bonds mature between 2041 and 2050.

Trustees pressed on rating impacts after S&P’s review lowered the village rating to double-A minus, asking how that might affect borrowing costs. Miselli said the rating action reflected the financing plan as a whole and projected debt levels; he estimated the downgrade’s effect on interest could be on the order of five to ten basis points depending on the yield curve, and that bond insurance had been added by the underwriter at a cost of $40,000. He also noted the bonds are callable and could be refinanced if market conditions improve.

Votes on the contract awards, the zoning map adoption, the plat vacation and grant of easement, and the bond ordinance were all recorded by roll call and carried by six affirmative votes.