Cary plans for extensive three-year roadwork
The Village of Cary recently designated the $5 million they received through Build America Bonds for extensive roadwork over the next three years. Build American Bonds are financed through the Treasury Department and were made available through The American Recovery and Reinvestment Act of 2009.
McHenry County received $18.3 million in bonds from the federal government, under the Recovery Zone Financing Program. In June, McHenry County declared itself a recovery zone after meeting the requirements, which include significant poverty, unemployment or home foreclosure rates, according to a June 2 board meeting records. Under this financing program, the county can offer Build America Bonds with significantly lower interest rates than they would otherwise be able to.
“This is the cheapest way the village could borrow money,” Cary village administrator Cameron Davis said.
Build America Bonds are similar to municipal bonds used to invest in capital expenditures. However, unlike municipal bonds, any income they generate is taxable. Under Recovery Zone Financing Program guidelines, investors in these bonds are able to receive a 45 percent refund on the taxable part of the bond.
Furthermore, Cary received a low interest rate due to its improved bond rating and because the village carries no general obligation debt, Davis said.
The project will take approximately three years to complete and will cover the equivalent of 7 miles of road for resurfacing.
“We have a plan which lays out which streets get work and when,” Davis said. “For example, Jandus [Road], down by the river, is in desperate need of repaving.”
The village will spend $650,000 next year and $2.5 million in the two years following, Davis said.
Fox River Grove also received $1 million from McHenry County to work on road projects.
—By Michelle Stoffel, Triblocal.com reporter
