Buffalo Grove trustees gave their approval Monday to obtaining a $6 million general obligation line of credit to fund the village's fight with the emerald ash borer
Finance Director Scott Anderson said the financing will pay for the removal and replacement of about 7,300 ash trees over the next several years.
"We have bought up some nursery space with some stock," Anderson said, noting that the village already has removed about 500 trees. "We also have staggered the plantings. We need a few years for some of the trees to mature."
The line of credit expires on Nov. 19, 2015, when the village can pay it in full, renegotiate or refund it.
The matter was discussed earlier in the year by the board, which authorized Speer Financial to solicit proposals. The most favorable came from PNC Bank, Anderson said.
Village President Jeffrey Braiman said the village has the authority to pursue the line of credit without referendum using its home rule powers. The village does not intend to levy a property tax to cover principle and interest payments.
Braiman noted that the village is taking advantage of favorable interest rates.
"Today's borrowing cost would essentially be about three quarters of a percent," he said.
The estimated cost of replacing all of the trees, using 2012 pricing, is $1.8 million. Additional costs are associated with stump grinding and tree removal.
Anderson said that although the primary intention is to use the line of credit to address the trees, "We have given ourselves a little flexibility for other capital projects."