Libertyville issues final bond issue for voter-approved road repairs
Tax hikes are rarely popular but in early 2012 a solid majority of Libertyville voters agreed a $20 million investment to fix local roads was worth it.
For each of the past three years, a roster of streets has been subject to "shave and pave" resurfacing and other work to address immediate problems and to keep deteriorating roads from getting worse before they needed to be rebuilt at triple the cost.
To pay for the work, the village in each of the last four years has sold $5 million in bonds for the next construction season.
The final sale of voter-approved borrowing for that purpose was authorized by the village board Oct. 13. While that doesn't mean 2017 is the last year of the program, village officials eventually will have to decide where to get more funds to keep it going.
"There's time to think about it," Mayor Terry Weppler said.
Planning for the village's general financial stability could include new funding sources, such as a home rule referendum question, given the potential impact of the state's budget woes on village finances. But for the next two years, the road repair program is on solid ground.
"The bonds were $5 million apiece and we've done about $4 million per year in projects so we have money remaining," said Pat Wesolowski, village finance director.
Before the referendum question was posed, village officials had been considering how to address a road program that had slowed because of financial issues. However, the decision to ask voters was sealed when a resident brought a hunk of her street to village hall.
"It was her frustration that helped us move forward," Weppler said.
Sixty percent of voters agreed and since then, the village has resurfaced about six miles of village streets each year and reconstructed some others.
"It was a pleasant surprise," said John Heinz, who is retiring as public works director but has overseen the program since its inception.
A pavement rating system (which is being updated) gave engineers an idea of the streets in the worst shape. After discussion and review, a to-do list for each construction season was compiled.
"We'll take out groups of roads we feel (are) ready to go," Heinz said. "We'll actually go out and drive the streets and choose which ones we want to do." This year's program already is complete and there are tentative lists for the next two years.
The $20 million from the bond issues will allow the village to repair 30 miles - about a third of its streets.
Continuing the road program, as well as water and sewer projects, is an ongoing annual goal for Weppler and the village board. For each of the past three years, the village has issued $4.2 million in bonds for the latter projects but those are paid for through user fees, not property tax.
For the road bonds, the original estimate of the additional property tax to the owner of a $400,000 home was about $180 per year. However, because of lower-than-expected interest rates, the estimate has been revised to about $155 per year. The bonds are scheduled to mature in 2032.
While finding money for the shave and pave road work is not an immediate need, state budget woes have created a potential financial squeeze for Libertyville and other communities. With that in mind, the board will take a closer look at the village's financial sustainability. New revenue sources, such as reinstating utility taxes or pursuing a home rule referendum, could be considerations.