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Schillerstrom unveils $70 million borrowing plan for DuPage

Citing low interest rates and a federal program that partially covers interest costs, DuPage County Board Chairman Bob Schillerstrom unveiled a proposal Wednesday to borrow $70 million to pay for 22 capital improvement projects.

The projects cover a wide range on the county's wish list, including five road improvements, a new backup power source at the county complex, upgrades for the convalescent center's kitchen and $8.9 million in flood control.

The 30-year borrowing plan ultimately would cost nearly $125 million when all the debt is paid off, according to the county's data.

Schillerstrom said a "pay-as-you-go" plan will cost the county more than borrowing now.

"Bonding is the most equitable way to apportion some cost of these projects to future taxpayers who will also be benefiting from them," he said.

But Schillerstrom is facing opposition from several county board members and both candidates who are vying to replace him as board chairman in November when his term expires. They complain Schillerstrom's plan costs too much, includes several projects that won't last 30 years and saddles future county boards with too much debt.

"I want everyone on the board to read the fine print information about this bonding plan," said Paul Fichtner, who heads the county board's finance committee. "It's actually a balloon payment that starts at $2.3 million a year for the first 15 years and then jumps to $5.9 million for years 15 through 30."

Fichtner also argues that the total loan repayment is $15 million more because of the balloon payments. Fred Backfield, the county's chief financial officer, acknowledges the additional cost, but said the county can't afford to make "level" payments for the next 30 years.

"Level debt service could have been done cheaper, but unfortunately you have to be able to pay the annual freight," Backfield said.

Schillerstrom argues the county will be in a better position in a decade to repay those loans as current construction debt will be paid off by then, freeing up nearly $20 million a year.

The county board has put off borrowing for capital projects in recent years because of the downturn in the economy. Schillerstrom had to lobby for a quarter-cent sales tax increase two years ago to stave off massive layoffs. Most recent financial data indicates the county is $6.2 million below revenue forecasts for the year.

"The state has indicated to me they would be all caught up with payments for this fiscal year by the end of this year," Schillerstrom said.

The most expensive item on Schillerstrom's list is a plan to install emergency generators to provide backup power to the entire county government campus in Wheaton for $11.7 million. The county board already has committed to the construction of the generators.

In all, Schillerstrom's plan calls for almost $40 million in campus improvements. That includes $11.1 million for information technology upgrades, which has some board members scratching their heads.

"If we were paying off 30-year bonds for technology improvements right now, we'd be paying off DOS systems and Commodore 64s," said board member Jeff Redick. "We need to evaluate what we can and can't afford."

Schillerstrom's proposal does have support from some board members. Jim Zay said the county needs to invest in its infrastructure, but he doesn't agree with all of Schillerstrom's funding plans.

"He's got $8.9 million for flood control and that's a far cry from the $30 million I requested," he said. "But that's way up from the $1.7 million we were getting two weeks ago. The problem is that it's not a commitment to our flood-prone areas."

Board member John Curran also supports borrowing for projects, especially for road and stormwater projects.

"I think anything else is going to be met with a critical eye by the board," he said.

Neither Republican Dan Cronin nor Democrat Carole Cheney are fans of Schillerstrom's borrowing proposal. Voters will decide Nov. 2 which of the two will replace the longtime county board chairman.

"Am I thrilled at the prospect of inheriting almost $70 million in new debt service? No," Cheney said. "That being said, the end of the calendar year presents a unique and time-sensitive opportunity. We have a bond rating entitling us to lower interest rates, a labor force starving for jobs and soon-to-expire federal subsidies. The part of this plan that needs to be further scrutinized is the choice of projects."

Cronin called the borrowing plan "outrageous."

"We should be an example of restraint," he said. "Just because it's on sale doesn't mean we can afford it. We've seen this movie before in Washington and Springfield; make promises now and save the pain for later. With the amount of debt taxpayers already owe thanks to a reckless Congress and state legislature, I oppose any effort to significantly add to that burden. The last two county budgets have been based on an economic recovery that has yet to occur."

<p class="News">Here's a list of the 22 capital improvement and infrastructure projects included in DuPage County Board Chairman Bob Schillerstrom's $70 million borrowing plan.</p>

<p class="News"><b>$11.7 million: </b>County government campus emergency generators</p>

<p class="News"><b>$10.5 million:</b> Gary Avenue reconstruction between North Avenue and Army Trail Road</p>

<p class="News"><b>$7.1 million:</b> Information systems technology upgrades</p>

<p class="News"><b>$6 million:</b> Convalescent center kitchen replacement</p>

<p class="News"><b>$5.2 million:</b> Brewster Creek watershed</p>

<p class="News"><b>$5 million:</b> 75th Street reconstruction between Woodward and Lyman avenues.</p>

<p class="News"><b>$4.8 million:</b> Courthouse HVAC upgrades</p>

<p class="News"><b>$4 million:</b> Information technology infrastructure upgrades</p>

<p class="News"><b>$3 million:</b> Reconstruction of Belmont Road at Curtiss Street</p>

<p class="News"><b>$2 million:</b> West Branch/Klein Creek flood mitigation</p>

<p class="News"><b>$1.7 million:</b> Churchill Woods dam modifications</p>

<p class="News"><b>$1.5 million:</b> County administration building fire alarm upgrades</p>

<p class="News"><b>$1.4 million:</b> 55th Street reconstruction between Cass and Holmes avenues</p>

<p class="News"><b>$1.1 million:</b> Jail roof replacement</p>

<p class="News"><b>$1 million:</b> Trail replanting program</p>

<p class="News"><b>$1 million:</b> Long term infrastructure improvements</p>

<p class="News"><b>$900,000:</b> Jail fire alarm upgrades</p>

<p class="News"><b>$600,000:</b> Campus energy-efficiency improvements</p>

<p class="News"><b>$400,000:</b> East Branch DuPage River greenway</p>

<p class="News"><b>$300,000:</b> County campus emergency warning system</p>

<p class="News"><b>$300,000:</b> Bikeway between Interstate 88 and 31st Street</p>

<p class="News">Source: DuPage County</p>