Mayor: Finances solid in Wood Dale

Despite more than 200 recent home foreclosures and two major businesses leaving Wood Dale, Mayor Ken Johnson on Thursday said the city is in better shape than many DuPage municipalities.

During his annual State of the City address at the Salt Creek Golf Club, Johnson told about 40 members of the Wood Dale Chamber of Commerce that the city's budget is balanced, reserves exist, and Wood Dale is debt-free.

He added that the city also has not suffered layoffs, cutbacks or construction delays.

"Wood Dale is ready to move back to the future," Johnson said, highlighting recent growth such as the $1.2 Metra station unveiled in February that was funded by developers and commuter parking fees.

He also said Wood Dale will expand its annual Prairie Fest to four days this year, Aug. 12-15, while many other towns are canceling or cutting back.

Looking to future development, Johnson highlighted $3.6 billion in plans for western access to O'Hare International Airport that could boost Wood Dale's economy.

The catch, he said, is that state funds do not exist for the project after the Illinois Department of Transportation begins construction engineering this year.

"Afterward, we hope the tollway will take over to build and pay for project because, frankly, they are the only ones with the money who could pull this off," said Johnson. "Unfortunately, they would have to raise tolls statewide to pay for it."

But with faith that the project will happen - and will include features like interchanges at Wood Dale Road, Route 83 and Prospect Avenue - the city is planning a "corporate Main Street" area to grow over two decades.

"Our hope is to attract world headquarters and regional sales offices to the western corridor," Johnson said. "But we are not seeking to replace any viable existing use within the planning district."

Another major change coming to Wood Dale includes safety and logistic improvements to the rail crossing at Irving Park and Wood Dale roads. The city worked for eight years to secure $18.8 million in funding for this project, said Johnson.

"We are all aware of the problems on Irving Park and York (roads) with milelong backups of traffic eastbound on Irving," he said.

A grade separation is going to bid in September, and the work, which will also include a bypass on Front Street and an additional right-turn lane on Irving Park, will last two years.

Not all decisions are currently easy in Wood Dale now, however. Village leaders are debating whether to use $11 million from the city's reserves to repaire its 51-year-old water treatment plant, or take a $30 million to $40 million loan to pay for a new, expanded plant.

"That proposition is going to be expensive and I wanted to warn you about that," he said to the business leaders.

In addition, the number of homes in Wood Dale requiring soundproofing has jumped 250 percent due to recent runway shifts at O'Hare that create more noise at night.

Also, the city will soon pass on a water rate increase to residents that stems from financial mismanagement at the DuPage Water Commission. The agency will likely raise its rates to supply municipalities after losing $69 million in reserves.

"As a result of being broke their water rates will go up 21 percent," Johnson said. "We most likely will pass that cost onto residents, since our philosophy is that the water system is an enterprise fund that has to pay for itself. We do not subsidize it."