Funding options open in Pecatonica

By Christopher Johnson

REPORTER

A request for additional funding has been made by members of the Pecatonica Village Board, and it will be done in the form of a General Obligation Bond.

That means the village is willing to take a chance that it has the ability to repay a multi-million dollar bond through taxation and/or revenue from projects that funds from the bond can be used to support.

By definition, a General Obligation Bond is a municipal bond that is backed solely on the credit and taxing power of the issuing jurisdiction, rather than the revenue from a specific project.

Through design, and according to various online definition, GO Bonds are not backed by collateral and do not pay creditors back on the basis of income generated from funded projects.

GO Bonds can be specified as either limited or unlimited with unlimited bonds opening the door to a municipality giving it the option to increase property taxes accordingly to cover its payments.

On Tuesday, Jan. 19, the Village of Pecatonica was presented with a measure to pursue $3,500,000 in General Obligation Bonds for non-specific designation.

Ordinance 2021-04 explained that consideration was being made with action requested authorizing and providing for the issuance of an alternate revenue source to help in the facilitation of village activities and improvement projects..

As explained, the funds would be used for the purpose of paying the cost of infrastructure improvements within the village, including to but not limited to street repair and related improvements.

Payback of the bond would be done through the collection, segregation and application of certain sales tax receipts. State law generally sets conditions for municipal government to issue general obligation debt, including types of security that is available.

Additionally, according to information released by municipal officials, provisions for the Levy of a direct annual tax, sufficient to pay the principal and interest on the bonds, would be an influencing factor and help in the determination to seek the multi-million dollars in funds.

At the Tuesday meeting of the Board of Trustees, a first reading of the measure calling for the $3,500,000 fund increase was presented.

As has been the case with Village practices, general rules allow for waiving of a waiting period between the first and second readings of all measures, ahead of the final approval or refusal of the voted upon plan.

Board members, as a standard operating practice waive the rules to allow for action to commence upon completion of the first reading with a majority vote of all Trustees in attendance.

A lot of development has been occurring on the south side of the village of Pecatonica with expansion west along Sumner Road also helping to increase the footprint of the community.

The Pecatonica Village Board meets regularly on the third Tuesday of every month at 6:30pm with a Committee of the Whole, planning session, occurring on the first Thursday of every month at 6:30pm.

If residents want to know more about what village officials are doing, as stewards of their tax dollars, they are encouraged to attend one of the monthly meetings to voice their concerns or questions.