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Board authorizes up to $39 million in short-term debt certificates to bridge Water Link financing gap
Summary
Facing a delay in anticipated WIFIA permanent financing, the Montgomery Village Board approved ordinance 21-90 to issue short-term debt certificates not to exceed $39,000,000 to fund the Water Link project until WIFIA or other permanent financing is available.
The board authorized installment-purchase short-term debt certificates not to exceed $39,000,000 (Series 2026) to provide interim financing for the Water Link project after staff reported a pause in the WIFIA timeline. "We were expecting that we would have closed on the WIFIA loan to be able to provide permanent financing for the Water Link project; however, the WIFIA process has stalled and we are awaiting funding apportionment," Director Minnick said.
Staff told trustees that proposals from financial institutions were solicited and were expected back on Monday, Aug. 3, with an award planned for Aug. 5 and a tentative closing in late August (Aug. 26 was cited). The debt certificates are structured to allow cancellation or calling if WIFIA loan proceeds are later available. Staff recommended approval and the board approved the ordinance on a roll-call vote, 4–0.
Director Minnick said the certificates would cover costs incurred and payments due to the DuPage Water Commission while longer-term WIFIA financing is unresolved. The board did not discuss alternative permanent financing in detail at the meeting beyond staff's note that alternatives would be evaluated if WIFIA did not proceed in time.
