La Grange trustees approve funding for water projects
Updated: October 21, 2012 1:11PM
LA GRANGE — The Village Board agreed to sell $2.2 million in bonds Sept. 10 to replace residents’ water meters and upgrade the East Avenue pumping station.
A lower than expected interest rate of 2.41 percent is projected to save the village $40,000 over the next 20 years, bond consultant Phil McKenna told the board. McKenna had anticipated an interest rate of 2.7 percent.
Five bidders representing 25 bond firms bid electronically from 10 to 10:15 a.m., and Janney Montgomery, headquartered in Philadelphia, emerged as the winner, McKenna said.
Three trustees voted against the bond sale, noting their initial objections to the water improvement projects for various reasons.
Mark Kuchler said he opposed moving from a “pay-as-you-go” method to borrowing money by issuing bonds to be repaid over 20 years. The bonds can be repaid in full after 10 years, if the village has the money.
Mike Horvath voted against earlier measures authorizing the water projects because he opposes raising taxes, since it’s projected that the water meter replacement will pay for itself in savings.
“I would hope if we see the savings come through we will abate the tax increase,” Horvath said.
Jim Palermo also voted against the bond issue, but Village President Liz Asperger broke the tie in siding with Mark Langan, Jeff Nowak and Bill Holder to advance the measure.
By the same 4-3 vote, the board approved a 15 percent water rate hike in April, amounting to about $100 for the average homeowner. The increase covers a water rate hike from Chicago for Lake Michigan water, as well as funding for the two water projects.