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Yorkville approves $35 million financing for Lake Michigan project after federal loan delayed 9 months · Kendall County News - Shaw Local

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  Yorkville approved 35 million financing for Lake Michigan project.
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  After federal loan delayed nine months. This
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  article is being read by an automated voice, brought to you by
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  Everlit. The City of Yorkville approved another 35 million
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  debt certificate, even though its federal loans officially closed, to help cover
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  the 224.4 million Lake Michigan sourcing project. The City Council's
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  approval of another bridge loan follows in the wake of an approved
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  35 million debt certificate in July and a 50 million debt certificate
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  in February. City Finance Director Rob Frederickson said the bridge loans will
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  not add to the project's total cost but will diversify how the
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  city can pay its bills to the DuPage Water Commission which is
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  in charge of the pipeline extension project. The
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  city received good news on the federal loan front. The 170 million
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  loan from the U.S. Environmental Protection Agency water Infrastructure Finance and Innovation
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  Act program officially closed on September 3rd. It received final approval from
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  the Office of Management and Budget after being held up for nine
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  months due to federal staffing shortages and slowdowns. While the money was
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  tied up, the city approved bridge loans to ensure the bills could
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  be paid and the construction was not delayed. All the necessary infrastructure,
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  including extending pipelines, erecting water towers and new water seving stations, must
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  be completed by the end of 2027. The first Lake Michigan water
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  coming down the pipeline is expected in the summer of 2028. While
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  the WiFi alone will serve as the city's primary long-term funding source,
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  the new 35 million BMO financing will provide flexibility during the remaining
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  construction period. The bridge loans are covered by the city, not from
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  new property tax levies, but from already available city funds. Yorkville Mayor
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  John Purcell said that, while the construction is still far from completion,
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  the final bid is coming in soon and it is looking to
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  be around original estimates. The bid could be one of the last
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  major hurdles that could drive up the project’s costs Given The
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  construction schedule and work already completed and funded, the city expects this
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  bridge loan’s to be the last short-term financing solution sought by the
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  city, according to city documents. Fredericks said Access to the BMO financing
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  in the short term will provide additional liquidity should there be delays
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  associated with reimbursement documentation or review, timing of federal disbursements, disruptions at
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  the federal level, or other unforeseen circumstances. He said the city does
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  not need to draw out the full thirty five million dollars, but
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  rather can withdraw the money as needed to cover the project's costs
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  over two years. The new bridge loan does slightly differ from the
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  July loan in that it carries a 9 maximum authorized interest rate
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  compared with the earlier bridge loan's 5 rate, according to city documents.
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  The city is only responsible for covering the 9 interest on the
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  amount of the 35 million actually withdrawn for the project. The city
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  currently is projecting that only 10 million of the 35 million loan
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  may be actually withdrawn for the project. About 400 million in costs
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  are being shared by Yorkville, Oswego and Montgomery to extend pipes to
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  water mains near Naperville carrying Lake Michigan water. The pipes are operated
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  by the DuPage Water Commission. Outside of the original 170 million WIFIA
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  loan, the city was planning on covering its remaining costs through the
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  city's bond issuance and loan proceeds. To help cover these costs, the
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  city recently approved 20 annual water rates over each of the next
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  five years. Average residential water bills are expected to double by 2030
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  to help cover the project's costs.