IT funding dominates DuPage borrowing talks

Computer system and technology infrastructure upgrades that could cost DuPage County taxpayers $11 million were the dominant topics at a nearly three-hour special county board meeting Tuesday.

Board members were summoned to discuss county board Chairman Bob Schillerstrom's $70 million capital improvement borrowing plan. Schillerstrom contends low interest rates and a federal program that covers some of the interest costs make this a good time to forge ahead with the loan program that would cost taxpayers almost $125 million in a 30-year span.

Some board members were concerned about taking 30 years to pay off debt for computer system upgrades, which county technology staff members aacknowledged have a maximum life expectancy of 20 years. But they also said the upgrades would result in significant cost savings and increased efficiencies. The upgrades would replace a 30-year-old mainframe system that officials said is becoming increasingly difficult to find anyone who know how to make repairs.

"You get faster and leaner, and it costs less to run," said Don Carlsen, the county's chief information officer.

Board member Jeff Redick cited loan analysis studies that say borrowing for something with a life span less than the term of the loan is a bad idea. He suggested a separate 20-year borrowing plan for items on Schillerstrom's list that wouldn't last for 30 years. Redick also requested more details about anticipated cost savings of the technology investment. Finance officials said that proposal would be drafted for the next meeting scheduled for Aug. 24.

Some board members were also looking for additional funding for stormwater and flooding controls. Schillerstrom's proposal earmarks $8.9 million for such initiatives, but board member Jim Zay said at least $5 million more should be committed. Some of that would be used for a program to buy properties in flood-prone areas.

Financing the borrowing plan has been a concern of the board's because of late state income tax payments and slumping sales tax revenues. However, the county has seen four straight months where sales tax receipts were higher by an average of 4 percent compared to the same four months last year, county finance officials said.

Schillerstrom's plan also calls for the payback of the debt to be backloaded, where the county pays $2.3 million a year for much of the first half of the loan period and then $5.9 million in the final half. That's because much of the county's current debt will be paid off in about 10 years and it will be easier for the county to make those increased payments then. But that also adds an additional $15 million to cost of the loan, finance officials said. It would cost a little less than $4 million a year with a level 30-year repayment schedule.

One of the areas board members did find some common ground with Schillerstrom was with the $20 million he earmarked for five road improvement projects. Those projects constitute the bulk of the jobs expected to be created by the capital improvement plan. Officials said the road projects would employ 2,000 laborers. The most expensive of the projects is the $10.5 million widening and repaving plan for Gary Avenue between North Avenue and Army Trail Road in Carol Stream.

Schillerstrom is pushing the board to pull the trigger on the borrowing plan ahead of upcoming budget talks and before the federal loan assistance program ends at the close of this year.

"I want to go to bond in November to beat the rush of others in December, for lack of a better way of putting it," he said.