Batavia Park District considers borrowing $440K

The Batavia Park District is proposing to borrow $440,000 to pay for sites, buy equipment and maintain and develop properties.

The park board will conduct a public hearing on the matter at 7 p.m. Tuesday at the Civic Center, 327 W. Wilson St.

The loan, which would be attained by issuing bonds, would be repaid in one to three years, according to district executive director Mike Clark. Since it has not solicited bids for the bonds yet, it does not know how much interest the district will pay.

“The board felt it was important to still replace playgrounds,” buy properties and maintain things, Clark said Friday. No specific projects have been tied to the money.

The district has issued non-referendum short-term general obligation bonds since 1990, typically with three-year repayment cycles. The money goes into its capital and capital development funds. It has the authority to borrow up to $600,000 without having to ask voters for permission. The board decided to borrow less because it believes the value of property in the district may decrease and it wants to keep its tax rate from increasing, Clark said.

In November, voters rejected a plan by the district to borrow millions to build a recreation center and parking garage. This bonding authority would have been used for that.

Some critics of that plan said that the district should instead stop borrowing the money and let people’s tax bills decrease.