Gilberts holds hearing today on $3.5 million bond sale

In its first foray into the bond market, the Gilberts Village Board will consider selling $3.5 million in bonds to fund road improvements. The board is opening the matter to a public hearing Tuesday before voting on the bond sale in mid-August.

The road project was made possible in part by a 1 percentage point sales tax increase that was approved by a landslide by voters in an April referendum.

Village Administrator Ray Keller said before the election the additional sales tax revenue would go into an improvement fund and help pay for debt accrued by selling bonds. Revenues from motor fuel taxes and a service charge for garbage will also supplement the road improvements.

“The community voted for the process,” Village President Rick Zirk said. “We laid the methodology out prior to the vote and made a decision based on that information.”

The streets in four subdivisions in the older sections of town are set to be resurfaced. Indian Trails, Dunhill Estates, Gilberts Glen and Windmill Meadows will see the road construction from August to November, provided the village board approves the bond sale.

By catching the roads before they are more heavily deteriorated, the village will be able to avoid complete reconstruction.

The revenue stream set in place by the sales tax provides for a long-term roads plan. The village will pay off the debt from the bond sale over the course of 10 years in the older subdivisions.

“Hopefully when those bonds are paid off we’ll be able to turn around and do the same thing in Timber Trails and the newer areas,” Zirk said.

The public hearing will take place during the village board meeting, which starts at 7 p.m. Tuesday at Village Hall, 87 Galligan Road.