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Cambridge trustees began to lay the ground work for the sale of general obligation bonds this year, and set a public hearing to inform village residents of the process.
The meeting was at 7 p.m. on Monday, Nov. 8, in the Village Hall.
At their Monday, Oct. 25, meeting, the board approved an ordinance to hire two firms for the legal work to put in motion the sale of Build America bonds. The firms of Jacob & Klein, LTD: The Economic Development Group, LID, American Bond Corporation, LTD, Bloomington, and Ice Miller, Chicago, will research the procedure and report to village officials. Build America bonds originated under the America Recovery and Reinvestment Act of 2009.
Village administrator Dwaine VanMeenen, said the type of bonds that Cambridge plans to sell will give Cambridge a federal tax credit equivalent to 35 percent of the interest on the bond.
VanMeenen said, "We are not going to sell in excess of 1.5 million in general obligation bonds...the Build America bonds are based on guaranteed revenue that is taken from the future TIF property taxes received annually by the village."
According to village attorney Scott Smith, the 1.5 million is the amount being used for the purpose of the public hearing on Nov. 8, although the village may spend less than that amount.
The bonds will be repaid over the remaining 20 years of the TIF district life, VanMeenen said.
VanMeenen said the money from the sale of the bonds will be used for projects such as storm sewer relining, water line replacement and the possibility of building roads in Ridgeview Subdivision and the recently-developed Cambridge Commercial Park, and he added that Cambridge residents will be informed of what the money is spent on.
"The good part of all of this is that some of the money will be spent on building commercial and residential roads which will lead to new housing and new business in the village which consequently generates more property taxes in the TIF district," he said. "At the same time, we will be repairing and updating some old infrastructure that needs to be addressed because it is more than 100 years old. In the spring and summer with the increased rainfall, some of the rain goes into the sewer lines and then to the sewer plant and has to be treated as raw sewage. With the new infrastructure the water will go into the water storm drain system."
Cambridge trustees began to lay the ground work for the sale of general obligation bonds this year, and set a public hearing to inform village residents of the process.
The meeting was at 7 p.m. on Monday, Nov. 8, in the Village Hall.
At their Monday, Oct. 25, meeting, the board approved an ordinance to hire two firms for the legal work to put in motion the sale of Build America bonds. The firms of Jacob & Klein, LTD: The Economic Development Group, LID, American Bond Corporation, LTD, Bloomington, and Ice Miller, Chicago, will research the procedure and report to village officials. Build America bonds originated under the America Recovery and Reinvestment Act of 2009.
Village administrator Dwaine VanMeenen, said the type of bonds that Cambridge plans to sell will give Cambridge a federal tax credit equivalent to 35 percent of the interest on the bond.
VanMeenen said, "We are not going to sell in excess of 1.5 million in general obligation bonds...the Build America bonds are based on guaranteed revenue that is taken from the future TIF property taxes received annually by the village."
According to village attorney Scott Smith, the 1.5 million is the amount being used for the purpose of the public hearing on Nov. 8, although the village may spend less than that amount.
The bonds will be repaid over the remaining 20 years of the TIF district life, VanMeenen said.
VanMeenen said the money from the sale of the bonds will be used for projects such as storm sewer relining, water line replacement and the possibility of building roads in Ridgeview Subdivision and the recently-developed Cambridge Commercial Park, and he added that Cambridge residents will be informed of what the money is spent on.
"The good part of all of this is that some of the money will be spent on building commercial and residential roads which will lead to new housing and new business in the village which consequently generates more property taxes in the TIF district," he said. "At the same time, we will be repairing and updating some old infrastructure that needs to be addressed because it is more than 100 years old. In the spring and summer with the increased rainfall, some of the rain goes into the sewer lines and then to the sewer plant and has to be treated as raw sewage. With the new infrastructure the water will go into the water storm drain system."
"And the great part is that with Build America bonds, we will get a rebate from the Federal Government that amounts to 35 percent of the interest paid on the bonds on a semi-annual basis and that money can be used for anything in the village, whether it be general, loans or water and sewer projects. It can be used on whatever we decide necessary for the next 20 years…I see this as an outstanding investment with no additional cost to the taxpayers."
In other business, the board approved a supplemental motor fuel resolution to cover motor fuel tax expenditures and VanMeenen explained the funds were used to oil and chip roads.
"Basically, what happened was that it cost $916.88 more than what we budgeted which was $22,320.64," he said.
VanMeenen also reported he has negotiated a lower interest rate on the $1 million in general obligation bonds sold in 2003 to finance the repaving of North Street and install new water and sewer lines.
"We negotiated a 1 1/2 percent reduction in our interest rate with BankORION, “he said. “These bonds will expire in 2022. "The weighted average of 1 1/2 percent savings over the next 12 years amounts to a $59,585 savings for village taxpayers on the $715,000 remaining in general obligation bonds."
The board also:
• Learned there are 27 American flags available to purchase which can be added to the Aisle of Flags in Rosedale Cemetery. Cost is $45 for each flag which includes the flag, plaque and pole. The flags will be put up on Nov. 10, and for more information, call the village office, (309) 937-2570.
• Learned Christmas on the Square will be Dec. 5.
• Accepted the fiscal year audit from Carpentier, Mitchell, Goddard & Company, Moline.
