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$35 million debt certificate helps Yorkville meet Lake Michigan bills · Kendall County News - Shaw Local

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  Speaker 1: Thirty five million dollars debt certificate helps Yorkville meet Lake
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  Speaker 1: Michigan bills. Written by Joey Weslow, this article is being
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  Speaker 1: read by an automated voice brought to you by Everlett.
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  Speaker 1: With one hundred and seventy million dollars federal loan being
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  Speaker 1: hung up, the City of Yorkville took another step to
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  Speaker 1: secure thirty five million dollars in financing for the Lake
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  Speaker 1: Michigan water project. The city council previously approved a thirty
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  Speaker 1: five million dollars financing bridge to ensure the city can
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  Speaker 1: pay the DuPage Water Commission when the bills come in.
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  Speaker 1: City Finance Director Rob Frederickson said during the August eleventh
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  Speaker 1: City Council meeting the city received a fixed rate option
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  Speaker 1: and a variable rate option from BMO Harris Bank on
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  Speaker 1: the city's twenty twenty six billion debt certificate RFP. Fredrickson
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  Speaker 1: said the variable rate option should fit our needs pretty well.
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  Speaker 1: He said a previously approved ordinance needs to be revised
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  Speaker 1: and approved again by the city council before moving forward.
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  Speaker 1: If the revision is approved. During the August twenty fifth
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  Speaker 1: City Council meeting, Frederickson said the city can close on
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  Speaker 1: the debt certificate in early to mid September, keeping the
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  Speaker 1: city on track for its bills. Related to the water project,
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  Speaker 1: About four hundred million dollars in costs are being shared
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  Speaker 1: by Yorkville, Oswego, and Montgomery to extend pipes to water
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  Speaker 1: mains near Kipperville carrying Lake Michigan water. The pipes are
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  Speaker 1: operated by the du Page Water Commission. Yorkville is currently
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  Speaker 1: paying about two hundred and twenty four point four million
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  Speaker 1: dollars for the project. The remaining final bids for the
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  Speaker 1: last two legs of the project could change the project's
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  Speaker 1: total costs. Yorkville Mayor John Purcell said the second to
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  Speaker 1: last bid was opened and came in under the engineer's estimates.
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  Speaker 1: This means only the final bid could drive up the
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  Speaker 1: project's costs. City officials previously said the city's one hundred
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  Speaker 1: seventy million dollars loan from the US Environmental Protection Agency
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  Speaker 1: Water Infrastructure Finance and Innovation Act Program has been delayed
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  Speaker 1: because of federal staffing shortages and slowdowns. The city was
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  Speaker 1: originally intending to close on the low interest WITHFIA loan
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  Speaker 1: last fall. City administrator bart Olsen said all federal loans
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  Speaker 1: nationally have been impacted. The city also previously approved a
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  Speaker 1: fifty million dollars debt certificate in February to help cover
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  Speaker 1: short term costs. The thirty five million dollars and the
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  Speaker 1: fifty million dollars financing bridges are not additional money for
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  Speaker 1: the project. They cover what's already been approved by the
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  Speaker 1: city council. Project timeline Lake Michigan Water is projected to
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  Speaker 1: reach Yorkville by the summer of twenty twenty eight. The
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  Speaker 1: city needs to complete all construction by twenty twenty seven
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  Speaker 1: for the project, including on water mains and new water
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  Speaker 1: receiving stations. Outside of the original one hundred seventy million
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  Speaker 1: dollars WITHFIA loan, the city was planning uncovering its remaining
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  Speaker 1: costs through the city's bond issuance and loan proceeds. Frederickson
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  Speaker 1: previously said looking into the third quarter of this year,
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  Speaker 1: the city will have to determine the most appropriate long
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  Speaker 1: term financing strategy. He said this could be through the
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  Speaker 1: Wiffia loon or, if circumstances warrant, through an alternative obligation
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  Speaker 1: bond issuance. To help cover these costs, the city recently
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  Speaker 1: approved twenty percent annual water rates over each of the
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  Speaker 1: next five years. Average residential water bills are expected to
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  Speaker 1: double by twenty thirty to help cover the project's costs.
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  Speaker 1: In the wake of some construction bids coming back higher
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  Speaker 1: than expected, Olsen said the city might consider larger water
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  Speaker 1: rate increases if the projects cost balloon.