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Shorewood board approves $20 million prepayment to Grand Prairie Water Commission
Summary
The board authorized staff to request that the Grand Prairie Water Commission accept a $20 million prepayment to reduce Shorewood's adjusted share of future debt; trustees debated liquidity, interest rates and contingencies before approving the resolution.
The Village of Shorewood approved a resolution requesting that the Grand Prairie Water Commission accept a $20 million prepayment of capital costs, debt service and financing costs to reduce the village's adjusted share of future commission debt.
Finance staff said the resolution is intended to give the water commission clarity ahead of its planned debt issuance and to allow Shorewood to lower long-term debt-service obligations. "This takes us back to last fall... This resolution would give the village the authority to put that $20,000,000 deposit into the Grand Prairie Water Commission," Ms. Burkholder said, adding staff estimates the payment would leave roughly $14 million on hand in the lake-water fund after the deposit.
Trustees discussed interest-rate comparisons — staff noted IEPA (SRF) financing at roughly 1.8% vs. other borrowing options — and whether the village should prepay more or hold cash for internal infrastructure needs. After debate about timing, risk and budgetary cushions, the board voted to approve the resolution and directed staff to place the payment on the first bill list in April to execute after the start of the fiscal year.
