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Board authorizes sale of about $1.02 million in notes to cover sewer-project ineligible costs
Summary
After an Ehlers presentation, the Village Board approved a resolution to proceed with the sale of approximately $1,019,000 in general-obligation promissory notes to fund the ineligible portion of a grinder-pump system replacement project; plan relies on sewer revenues to repay the debt and calls for using roughly $600,000 of unrestricted equipment-replacement fund cash to reduce borrowing.
The Salem Lakes Village Board approved a resolution to set the sale and proceed with a private-placement borrowing of about $1,019,000 to cover the ineligible portion of a grinder pump system replacement project. Ehlers representative Ariana Schmidt said the project’s total financing plan combines a Clean Water Fund loan for eligible costs, roughly $600,000 of sewer utility equipment-replacement fund cash (to be unrestricted), and the approximately $1,019,000 note to cover the remainder.
Schmidt recommended a private placement on a 10-year term issued on a general obligation basis but repaid from sewer utility revenues (with legal ability to levy if revenues prove insufficient). She said Clean Water Fund financing provides subsidized rates for eligible portions (about 55% of market rates; example cited ~2.365%), and warned that total borrowing this year will push the village’s GO debt toward roughly 10–11% of statutory capacity but remain within limits. The board voted to approve the resolution and to authorize distribution of term sheets to banks for proposals; staff will return with the lowest bidder for formal award later in September.
