Mount Prospect addressses Isabella area flooding
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Mount Prospect is pumping an additional $10 million into flood control projects for the Isabella area just north of downtown.
The Mount Prospect village board passed an ordinance this week authorizing the issuance of general obligation bonds to fund capital improvements related to flood control.
The projects will address public improvements.
In the fall of 2011 in response to that year's storm events, the village conducted a comprehensive study, resulting in the recommendation of a cocktail of public and private improvements.
The outcome was a bond issue in December 2012 to address the areas along Lonquist Boulevard, Lawrence Lane, Hatlen Heights and Golfview estates.
Now the board is addressing the Isabella area.
At Tuesday's meeting, Finance Director David Erb said four underwriters put in heavy bidding on the bonds.
The winning bid was submitted by Janney Montgomery Scott, with a True Interest Cost (TIC) of 3.864 percent. True Interest Cost is the yearly cost for obtaining debt financing.
The last five minutes of the bidding were especially heated, said Erb, who presented a replay of the auction that reminded Village Manager Michael Janonis of a horse race, prompting him to remark, "So Janney won by a nose, right?"
Erb said the village has a strong bond rating, with Standard & Poor's bestowing a AA+ rating that reflects, among other factors, "Moderate overall debt burden as a percentage of market value" and "Very strong available reserves bolstered by strong financial management policies."
The trustees were pleased.
"This is a great interest rate," said Trustee Richard Rogers.
Erb also said that this isn't debt that is added to the property tax. It will be paid off with existing revenues.
Trustee A. John Korn said that the village has been vigilant in addressing flood issues.
"Every year, for a good number of years, we have spent millions of dollars on flood control, in spite of the fact that some people think that we're not doing anything. We have continually done that," he said.
Closing on the bonds will occur on Sept. 10.
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