East Dundee trustees Tuesday signed off on the terms of a $2.25 million loan for village hall and police department renovations after getting its terms in writing.
The board was expected to ratify the loan at a meeting last month, but trustees Rob Gorman and Jeff Lynam questioned why the draft ordinance and a separate letter from the bank didn't match what they were being told at the meeting.
East Dundee plans on renovating village hall and its cramped police station, which would expand into the East Dundee Fire Protection District's existing building.
That building would also be refurbished after the fire district moves into new headquarters on Route 25, just north of Route 72, around May or June, officials said. That project is under construction.
Village Administrator Bob Skurla proposed taking out a $2.25 million line of credit at 1.99 percent interest with U.S. Bank for the projects, and using money generated from its tax increment finance districts to pay off the debt within five years.
TIF funds would also finance the remaining balance of the $5 million project. Village officials said they would do it this way to avoid dipping into reserves.
"We don't have a war chest of funds that we would use for a police station and village hall," Village President Lael Miller said.
The village was initially quoted a 1.85 percent interest rate, which increased with changes in the market. The slightly higher rate means the village will pay an extra $3,000 over the life of the loan, Miller said.
Trustee Allen Skillicorn was opposed to the project from the beginning and voted against ratifying the loan. He said village officials should have consulted the public before taking out more debt.
"I still think that borrowing the money should go to referendum," Skillicorn said.