Lake Co. set to share millions with towns

The Lake County Board likely will share half of a $39 million federal loan pool with local communities as part of the nation's economic stimulus effort.

The county has received permission to borrow $39 million for government construction-related projects through the American Recovery and Reinvestment Act. County officials are considering keeping roughly $19.5 million of the pool for its own road projects or similar efforts, and letting some of the county's 52 towns borrow up to $3 million each from the remaining $19.5 million.

As part of the program, the U.S. Treasury will reimburse the borrower 45 percent of the loans' interest payments, county documents indicate.

Counties don't have to share the money they're allocated, County Administrator Barry Burton said. Some do, and some don't, he added.

Applicants will have to meet federal criteria to qualify for the funding, Burton said. Applications will be taken on a first-come, first-funded basis.

If needed, a lottery could be used to determine which towns can participate, Burton said.

The loans must be delivered by Dec. 31. Any funds not loaned out by then will be withdrawn, he said.

As such, applicants should only submit project proposals that are ready to go now, Burton said.

"We want to make sure the projects are going to get done," he said.

County officials likely will use their half of the loan pool to fund road projects because they'll "benefit everybody," Burton said.

The county board is expected to approve the proposal Tuesday morning. The session will begin at 9 a.m. at the county government center in downtown Waukegan.