Less borrowing in new plan to fund Mount Prospect police, fire HQ
Mount Prospect plans to dip deeper into its reserves to finance the construction of its new police and fire headquarters under a new plan disclosed by village officials this week.
The plan, presented to a joint audience of the village board and the finance commission, also would fold two proposed bond issues totaling $37.8 million into one, a move that should save money in the long run, officials said.
Finance Director David Erb said the updated proposal would see the village's total debt service payments amounting to $57 million by 2043, as opposed to $61 million under the previous plan.
The amount of reserves used will go from $750,000 to $3.5 million, to be paid out over a four-year period, Erb said. He expressed confidence that growth in tax revenues would offset that amount.
"Yes, we would draw down $3.5 million, but I think over that four-year period, we're optimistic that we will continue to see excess reserves on an annual basis," he added.
The first reading of an ordinance is scheduled for Tuesday, Aug. 21, with a final vote expected Sept. 4. Closing on the bonds is slated for Oct. 16. The finance commission will further discuss the matter Aug. 23. Both finance commissioners and village trustees were receptive to the plan.
In all, the village plans to spend about $32 million for land and construction of new police and fire headquarters.
The police station will be located in an existing building at 799 Biermann Court. The village bought the site earlier this year for $5.1 million. The fire headquarters will be built at 111 E. Rand Road.