Elk Grove Village plans $13 million in road work
Some of the most heavily traveled roads in Elk Grove Village will undergo massive reconstruction as part of $13 million in improvements planned for later this year.
The village board Tuesday night authorized issuing $13 million in bonded debt for the infrastructure work, which will include upgrades to water mains, and sanitary and storm sewers. It's the second-largest bond bid the village has approved, Mayor Craig Johnson said.
"This is to get our infrastructure stronger," Johnson said.
Roadways targeted to be rebuilt include Tonne Road, Nicholas Boulevard and Northwest Point Boulevard, all in the village's business park, as well as a few residential streets in poor condition.
The bonds will be issued through the Build America Bond program, which allows state and local governments to issue taxable bonds for capital projects and to receive a new direct federal subsidy payment from the Treasury Department for a portion of their borrowing costs.
Elk Grove qualified for the federal bonds because the projects are ready to start, Johnson said.
The village is getting a lower interest rate of 4 percent with the Build America Bonds due to the federal government's rebate, compared to the 6 percent interest rate it was getting with other taxable bonds.
Johnson said this is the perfect time for the village to issue debt since it just earned a AAA bond rating from Moody's Investors Service - a first for village.
"We're very proud of that," Johnson said. "What it means for residents is it saves money."
Elk Grove is among 19 municipalities in the state and only 203 in the country with that distinction, considered the highest rating that can be achieved.
"To get that kind of rating in these economic times ... speaks very highly of the financial situation the community is in and the leadership of the trustees and administration staff," Johnson said. "This village has taken the right steps to prepare itself for the future to make sure we are strong and viable for the years to come."
The bonds will be sold on July 1 and are repayable over 20 years. Work could begin as early as this fall and will be completed no later than spring of 2011.