Western Springs may issue bonds to extend its road-improvement program another three years and have money on hand for capital projects.
The village is considering $3 million in alternative revenue bonds to extend the village’s road program through 2018. Village leaders are also contemplating $1.1 million in limited tax bonds to fund capital projects, according to Grace Turi, village finance director.
Turi noted that the alternative revenue bonds would be paid off from revenue generated by the municipality’s utility tax. Utility taxes were projected to generate $1.2 million in revenue for the village in fiscal year 2014. Final figures on the revenue generated by the tax have yet to be released by the village.
The village imposes a 5 percent utility tax on businesses that distribute, supply, furnish or sell natural gas for use or consumption within the corporate limits of the village; and distribute, supply, furnish or sell electricity for use or consumption within the corporate limits. A portion of the utility tax collected is recorded in the village’s motor fuel tax fund to support the infrastructure program.
The utility companies pass that charge on to Western Springs customers.
The limited tax bonds being considered would help fund capital projects, bigger-ticket items for the village.
“Capital projects would be building improvements to Village Hall and bigger equipment purchases, such as a dump truck,” Turi said.
That $1.1 million capital projects bond issuance could have some impact on taxpayers, Turi said. She said more information about just what impact the limited tax bonds would have on residents’ tax bills should be available by the village Finance Committee’s February workshop.
After a Finance Committee recommendation on isusing bonds is reached, the issue would go before the Village Board for final approval. Western Springs has been pouring up to $1 million into its road program annually for the last several years. Turi said the proposed $3 million bond issue would just keep the program rolling for another three years.
Matthew Suppert, village director of municipal services, said it will be determined how many streets the village can resurface this year under the $1 million threshold after determining the streets in most need of repair.
Suppert said that as of right now, top candidates for the village’s 2015 road improvement plan are Harvey Avenue between Hillgrove Avenue and 42nd Street, and 41st Street between Wolf Road and Gilberts Avenue.