Homer Glen gets favorable rate for $17M bond issue
BY SUSAN DEMAR LAFFERTY email@example.com September 12, 2012 4:28PM
Updated: October 15, 2012 9:21AM
The village of Homer Glen on Tuesday got what Mayor Jim Daley called a “fantastic” interest rate on a $17 million bond sale, the proceeds of which will be used toward an attempted takeover of the water system from a private company.
The 2.417 percent interest rate means the bond payments don’t exceed $2 million annually. The village plans to pay off the bonds with its 1 percent home-rule sales tax revenue, which is projected to be $2.9 million in fiscal year 2013.
The final payment is due in December 2022, but Daley said he is in favor of paying the bonds off by December 2019, which would reduce the interest rate to 1.958 percent.
Homer Glen does not have a municipal property tax, and village officials said they would not levy one to pay for the bonds.
The favorable interest rate reflects the village’s conservative fiscal policies and its AA credit rating from Standard & Poor’s, Daley said.
The money will be used to try to acquire a Lake Michigan water transmission line from Illinois American Water. Homer Glen is one of five suburbs that have formed the Northern Will County Water Agency to take over the water lines, using eminent domain if necessary.
The water company has said its system is not for sale.
The five towns made an offer of $34 million for the water lines. Homer Glen’s share would be about $7 million.
The water agency held its first official public meeting Monday. Meetings will be at 11 a.m. on the second Monday of each month. It will meet in Bolingbrook in October, Homer Glen in November, and Lemont in December. Woodridge and Romeoville also are part of the joint agency.