Streets, Sidewalks and Stormwater Referendum
Sign up for a virtual information meeting on the November 3 Referendum on Oct. 21
On November 3, 2020, the Village of Flossmoor will be asking voters to approve the issuance of general obligation bonds to finance needed improvements to Village infrastructure.
Specifically, the bonds would be used to pay for the resurfacing and reconstruction of streets and sidewalks village-wide, as well as improvements to stormwater infrastructure to reduce flooding in the Flossmoor Road Viaduct and upstream tributary areas of the Heather Hill and the neighborhood north of Downtown Flossmoor that contribute to the flooding. This decision follows several Board discussions over the past couple of years focused on the need to resurface and reconstruct many streets in our community and within the last year, several discussions related to major flooding.
Impact on Taxpayers
The question will ask voters to approve $10 million in General Obligation bonds that would be paid off over a period of 20 years. The bond would be financed by the Village’s property tax levy and would replace an $8 million Village issued bond that was used to construct the Flossmoor Public Library, which will be paid off in 2021. The Village Board has intentionally discussed pursuing this bond issue for streets and the Flossmoor Road viaduct once the Library Bonds were paid off so that the Village is replacing one debt issuance with another of a similar size to minimize any additional cost to taxpayers.
Financial estimates project that tax payers will be paying nearly the same as they are currently paying with the replacement of the bond issuance. The current tax levy on the library bond issue is $623,150. The estimated impact of the new infrastructure bond on the tax levy is $643,310.
Below is a chart that shows how much taxpayers are paying for the library bonds now compared to the amount taxpayers will pay should the infrastructure referendum pass. It is important to note that library debt levy will end before the infrastructure levy appears on tax bills. For a house that pays $7,500 in property taxes each year, the estimated incremental increase is around $4.
|Library Bond Debt Levy|
Ending in 2021
|Projected Infrastructure |
Currently, only 16% of your property taxes go to the Village of Flossmoor. Approximately, 65% of your bill goes to the school districts and the remaining 19% goes to other taxing agencies shown on your tax bill.
Village's Financial Standing
A 9% interest rate is the maximum permitted by law. It is legally required by the State of Illinois that the maximum possible interest rate for the project be included in the referendum question. The Village is confident that with our bond rating and the state of the current economy, we can obtain an interest rate far less than 9%. Once issued, 85% of the bond proceeds must be spent within 3 years. Given the historically low market interest rates and the Village’s strong rating, borrowing is cheaper than it has been in recent history and now is an excellent time to go to the bond market.
The most recent debt issuance was the refinancing of the remaining Library Bonds in 2017. The net interest rate is 1.72%.
If the referendum is successful, construction on the street improvements could likely begin as early as 2021 and the stormwater projects would begin as soon as the grant funding is known, which could also be as soon as 2021.