Buffalo Grove lays out funding plan for massive infrastructure project
Buffalo Grove's infrastructure modernization project is being billed as the largest undertaking of its kind in the village's history.
Given the financial details revealed at this week's village board meeting, it promises to carry a price tag that lives up to that billing.
But Public Works Director Michael Reynolds also emphasized that the plan will take care to ease the burden on the taxpayers.
"The plan moves the village from a debt strategy to a cash strategy over the long term," he said. "And the plan minimizes the overall impact on the property tax levy moving forward."
For residents, the most noticeable financial impact will be seen through hikes in their water and sewer fees, Trustee Joanne Johnson said.
Over the next five years, the village projects spending more than $71 million on water, sewer and street projects - $17 million in 2020; $11 million in 2021; $16 million in 2022; $11 million in 2023; and $13 million in 2024.
Village trustees early next year will consider a $24 million bond issue to pay for a portion of the work, and Village Manager Dane Bragg said another bond issue will be needed in 2024.
Reynolds presented a map to village trustees this week detailing the project, including planned road improvements along Buffalo Grove, Aptakisic, Lake-Cook and Weiland roads, as well as upgrades on residential streets.
According to Reynolds, 48% of the funding for the next five years will come from bond proceeds, with another 16% from the state motor fuel tax, 35% from the water fund, 1% from the new local fuel tax and less than 1% from the general operating fund.
The village already has taken steps to secure some of the funding sources, implementing a new fixed facility fee of $9.26 per month for water and $8.13 for sewer, as well as a one-time 11% water and sewer rate increase for 2020 and subsequent 4% increases. It also approved a new 2-cents-per-gallon local motor fuel tax.
Reynolds said the planned construction will be somewhat disruptive, but the village will try arrange the sequence of the work to minimize inconvenience for residents.