Bond deal with county could save Cary close to $500,000

In a move that could save Cary taxpayers nearly a half-million dollars, a McHenry County Board committee endorsed a deal Tuesday to help the village issue $5 million in bonds to fund dozens of road improvement projects.

Under the proposal, which still needs full county board approval, the county would use the authority it received as part of the federal stimulus plan to issue the bonds through a private lender.

The village would then receive through the federal government a 45-percent rebate on its interest payments, creating a significant savings.

Cary is the first government entity to take advantage of the program since June, when the county declared itself an economic "Recovery Zone" in order to access the bonding authority. The program is designed to make capital more easily available, and more affordable, for projects that will put people to work.

In Cary's case, village officials plan to use the $5 million for dozens of resurfacing projects, some of which will begin next spring. A final list of roads affected has not been completed, but Village Administrator Cameron Davis said work will take place in all parts of town, with a "heavy focus" on residential streets.

"We're trying to keep up with deteriorating roads, like every community," he said. "When you're able to do a bond for $5 million, then you're able to do a lot of streets in a short time that you otherwise would not be able to get to."

The village plans to repay the bonds with existing motor fuel, telecommunications and utility tax revenues. None of those taxes will be raised, Davis said.

The proposal passed easily Tuesday through the county board's finance and audit committee and likely will do the same when it goes to the full board.

"The village has a well-organized plan and immediate need to use these funds," committee Chairman Marc Munaretto said.