Hammond Board hears Davis Street funding estimates
Monday’s Hammond Village Board meeting revolved around funding for the Davis Street project.
Brian Reilly from Ehlers Inc. went over the village’s financing and how it could be structured during the 90-minute meeting.
He gave an estimated cost of $1,210,000 with a breakdown by the following:
-- Street, sidewalk and lighting will be $865,000 that will come from the tax levy.
-- Storm sewer is $85,000, which is also tax levy.
-- Water is $155,000 coming from that utility.
-- Sewer will be $105,000 coming from that utility.
Reilly also projected between 2 percent and 3 percent of financing costs, which will be another $40,000.
The village, Reilly continued, has an available borrowing capacity of $2.1 million and with the financing estimate of $1.2 million, it would leave them with $850,000, which is about 15 percent of its statutory general obligation borrowing authority. Reilly told the board, it’s recommended to not go below 10 percent at any time.
The estimated annual payments, Reilly said, would be $84,000 based on a 20-year term and a 3 percent interest rate. The general fund/tax levy would be responsible for 78 percent or $66,000 of that amount. The mill rate, he concluded, would be around $0.77 per $1,000.
Reilly concluded his presentation by saying public offering is the best financing option due to the low interest rate, the potential to refinance or structure the rate between years seven through nine and the most affordable financing for long-term debt issuance.
The board settled on the following timeline when it came to bonds: Initial resolutions will be adopted in its next meeting on March 9, with the award of bids either in its April 13 or April 27 meeting. Reilly also reminded the board the awarding of the bids should align with time when financing is secured.
Hammond Arts Alliance member Paulette Anderson announced there will be a trustee forum 9 to 11 a.m., Saturday, March 21, at Hammond Village Hall. Anderson said the format of the forum will be light as the focus will be more of a meet-and-greet, similar to the forum earlier this month for the president primary. Anderson will moderate the trustee forum as well.
The forum will consist of the six remaining candidates as they look to fill three seats on the Board: Sandy Brecht, Laurie Gruber, Kristy Olson, Rob Ward, Tony Endres and Travis Myher. Gruber and Ward are incumbents.
The Board rejected the bid of $1,268 from Yousef Dabbahg of Illinois for the village’s 2009 police car.
“We took all the stripes out and it’s cleaned out,” said Police Chief Rick Coltrain. “We’re just waiting for your approval.” He went on to explain he knew of a guy in the Chicago area who was willing to offer at least $2,200. The board agreed Coltrain should pursue this option, with Coltrain saying he’ll be making the call to him first thing Tuesday morning.
Trustee Lynn Pabst wanted to make a clarification after he heard or read there was a moratorium on new building development. The board discussed the matter and settled that any building in development needed to be reviewed.