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Mount Prospect expecting record debt with police, fire projects

The cost of moving Mount Prospect's police and fire headquarters to new locations could contribute to more than doubling the village's debt to a historic high of $111 million, but officials say the impact on residents and taxpayers will be minimal.

Mount Prospect leaders discussed the debt Tuesday as trustees considered a $12.1 million bond issue to fund water and sewer projects, along with property acquisitions for new police and fire stations.

The total cost of the bond issue, including interest, is projected at $17 million through 2037. Village Finance Director David Erb said there would be no impact on the property tax levy.

"It is a substantial amount of money that we would be issuing bonds to receive," Mayor Arlene Juracek added. "But it is structured in a way as to provide little to no impact on our property taxes."

Trustee Paul Hoefert noted the village likely will be incurring more debt to pay for $32 million in construction and other costs for the police and fire facilities.

That would help bring the village's total debt to $111 million, the highest in village history, Erb said.

"I know it takes us away from maybe a comfort level of what we used in the past, but relatively speaking, it's a prudent use of debt," Erb said.

Trustees indicated they are largely comfortable with the long-term effects of taking on the additional debt.

"It's doable. It's not going to kill us," Hoefert said. "But if there is a (economic) downturn, we still have to make these payments."

"It's still a lot of debt, and we have to be concerned with that," Trustee Richard Rogers added. "It also will impede anything that we may want to do in the next five to 10 years."

Village officials last month agreed to pay $5.1 million for the building at 799 Biermann Court for use as a new police station. They also unveiled a proposal to move the downtown fire station to the MB Financial Bank location at 111 E. Rand Road, in the triangle bounded by Route 83, Kensington Road and Rand Road.

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