Libertyville Village trustees approved the sale of two municipal bonds Tuesday night that will provide initial first year funding for a $20 million major roads and sewers improvement project over the next five years.
The road bond program was approved by voters at the March 20 primary election. Work will get underway early in 2013.
Finance Director Patricia Wesolowski said one bond was a general obligation bond in the amount of $5 million allocated only for local road repairs. Speer Financial had sold it earlier in the day at an interest rate of 2.02 percent. Trustees were pleased with the daily interest rate fix.
A second alternate general obligation bond in the amount of $4.2 million was also sold Tuesday at an interest rate of 2.11 percent. This bond is earmarked only for water and sewer improvements as part of the overall construction project, and will be funded from water and sewer revenues.
Public Works Director John Heinz said that other future bond sales, plus an annual $1 million road improvement allocation from the General Fund will provide $4 million over the next five years to repair roadways and sewers.
Staff estimates that 45 percent of the village’s roads are in poor condition, requiring immediate milling and repaving maintenance to prevent severe deterioration requiring complete reconstruction.
The bonds will be funded through a direct property tax that was approved by the referendum. The estimated tax rate increase for the 2012 levy is $0.0183 which amounts to a $24 increase on a $400,000 home.