Fox River Grove still building garage

Fox River Grove will build a public works garage after all, despite a petition signed by 295 residents directing the village board to do otherwise.

By a 4-3 vote, with Village President Robert Nunamaker casting the tiebreaker, the village agreed to issue up to $3.5 million in debt certificates to fund the new garage.

The village hoped to issue bonds to finance the work, but because the petition objected to it, now are using debt certificates to take advantage of lower interest rates and construction costs, said Village Administrator Art Osten.

Debt certificates are loans that usually carry higher interest rates because, unlike bonds, they don't use property taxes as backup funding sources, Osten said.

But issuing debt certificates through the federal Build America Bonds program will let the village save $800,000 and shop around for the best interest rates, Nunamaker said.

Existing water rates, franchise agreements with the wastewater treatment plant and the general fund will pay off the debt, expected to take 20 years if the village pays off about $240,000 a year.

The village plans to level an existing public works garage in order to expand its waste water treatment plant and comply with pending regulations from the Illinois Environmental Agency. They then will replace it with a new garage on County Line Road, near Route 22.

Trustees who approved the measure - Gerald Menzel, James Tuman and Duane Figurski - said the time to build is now, while construction bids and interest rates are low.

Officials say they have spent seven years on the project and feared they might not be able to afford it if they wait any longer.

"If we delay this now, how are we going to do it?," Menzel said. "We're trying to plan ahead. We've got to be in tune with what is best for this village."

Those who signed the petition wanted the village to let voters decide, through a November referendum, how and whether the fund the project.

Trustees Cindy Cramer, Michael Ireland and Steve Knar voted against issuing debt certificates.

"The residents have spoken in this community," Ireland said. "They signed this petition and they want to have a say in how this is being financed."