Bonding for what?

At the 11/6 council meeting, it seemed like every possible fee and tax was being raised so flooding and streets could be addressed. But the net result is $6 million for 2008 funding. To paraphrase Mayor Sandack and Commissioner Durkin: "That doesn't get it done, we need to do more faster now, when the money is cheaper, and we need to borrow." Ding! They get it, but it's at the expense of the municipal center. Muni complex? New Police, Fleet Services, and Village Hall buildings?

So what staff wasn't talking about on the green sheets, is borrowing. Thing is, it's the textbook example of when it is correct, even best to borrow. "Streets and Stormwater" if you will (flooding is the symptom) have to get done as quickly as possible. Everyone on staff and council takes turns bashing the inattentiveness and sloth of the past 25 years of local government; they hid their heads in the sand and ignored two huge growing problems. So now it's time to change that. These improvements are permanent and have every reason to be have payment spread out over 20 years or more. By borrowing, we can fix the problem fairly quickly. This is health safety and welfare at it's most basic.

Replacements for existing structures, even badly needed ones, are next in line, not first in line for available funding.

Commissioner Tully and Schnell expressed concerns that delaying a new village hall creates the same type of problems delaying streets and sewers did; makes it much more expensive to 'fix' later. It's a harsh fact, even with all the new taxes, fees, you name it, our local government will have to make do for a bit, just like residents have done for so many years. waiting for decent streets and decent stormwater measures. Interest costs are at record lows right now. Money won't get cheaper so the time to do it is now.

Problem: we can only borrow so much. The debt ceiling put into place is 3% of the Village EAV. Right now we're at about 2%. The means we could borrow up to $69 million dollars, but we already have $41 million in debt now.

On Tuesday, November 20th, council will hear from bonding providers. This may get interesting...