Tax bill delay leaves Des Plaines in hole

Des Plaines is taking out a short-term loan to make its loan payments.

Officials blame the seemingly counterproductive move on the delay in property tax payments due to debating in Springfield over assessment caps.

Des Plaines city officials late Monday voted to take out a short-term $5.5 million loan to make sure the money is there to pay the bills from outstanding debt from previous loans, Finance Director Bob Simpson said.

Those bills are due on Dec. 1, but the city is still waiting to get the property taxes that typically would cover the $9 million in payments.

City officials expect to receive $8 million.

The second installment of Cook County tax bills should have been due in September. Instead, tax bills are due on Dec. 3 -- marking the latest anyone can remember.

The city must repay the $5.5 million loan within 45 days. Interest is 5.25 percent.

Mayor Tony Arredia wants to be reimbursed with state money for the interest the city pays.

"Because it's not our fault," he said.

State officials realize the delay might put municipalities and school districts in a bind.

Dave Bennett, executive director of the Metropolitan Mayors Caucus, sent an e-mail last week to area mayors notifying them of a short-term loan program offered by the Illinois Finance Authority.

The authority, a self-financed, state authority that handles issuing taxable and tax-exempt bonds and making loans, is offering short-term loans of at least $100,000 to municipalities and schools that need the money due to the tax bill delay.

The deadline is noon today to apply for the Cook County tax anticipation program. Loans must be repaid, including 5.23 percent interest, by Feb. 1.

To get an application, go to www.il-fa.com and click on the Cook County program in the middle of the Web page.