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DuPage eyeing capital projects despite lackluster finances

Members of the DuPage County Board are considering a capital improvement package that may require borrowing, despite the county's hazy financial picture.

During the first five months of the current fiscal year, the county's revenues are down 4.8 percent, or $2.7 million, while spending is up 2.6 percent, or $1.6 million. The county's chief financial officer, Fred Backfield, said sales tax revenues remain behind budget expectations. However, he told the board's finance committee Tuesday that May and June could be bellwether months for sales tax receipts.

Going forward with a full slate of capital improvement projects would require the county to borrow, but some of the interest costs could be offset with a federal "recovery zone" loan program. The board has to decide by the first of the year whether to use the federal program. The program covers 45 percent of the interest on loans the county would receive.

Another option is for the county to do just some of the capital projects piecemeal with money already in hand. County board members said they would have to prioritize those projects to determine funding availability.

"When we're looking into the future and we don't know where we're going to be with our finances, it's very important to determine what is projects are actually the biggest necessity," said Debra Olson, chairwoman of the board's public works committee.

Several board members seem inclined to pursue county campus improvement projects over the $47 million worth of road projects that are proposed in this year's budget. The five road projects that affect Westmont, Clarendon Hills, Woodridge, Downers Grove, Darien, Carol Stream and West Chicago have been put off before.

"The road projects are all needed, but not critical," said Jim Healy, vice chairman of the board's transportation committee. "I have to look at what is the biggest necessity."

Many board members point to a $6 million upgrade to the county convalescent center's kitchen, an $11.7 million backup generator project and $2.4 million for fire alarm replacements in the jail and administration building as some of the most important capital improvement issues facing the county. Using the federal bonding program, these projects would cost the county about $1 million a year on a 30-year loan, Healy said.

Board members appear split on how to pay for the projects. Grant Eckhoff, a member of the finance committee, said the county could use some of its emergency reserve fund to pay for some of the projects.

"I don't see taking out a loan for some of these things when you've got money in the emergency fund," he said. "The bottom line is you should only (borrow) an amount you can pay for in bad times."

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