The Hoffman Estates Finance Committee voted to approve a 15-year financing plan for a $15 million street repair project.
At a special meeting this week, the committee voted to approve the 15-year option, rather than a 10-year payment plan, for the general obligation bonds, which will fund a three-year program for streets beginning in 1998.
Hella Tomczak, director of finance, reported that the average interest rate of 4.85 percent, based on information from First Chicago Capital Markets, is the lowest it has been in 20 years. She said that the 15-year maturity for the bond, rather than 10 years, would maximize the low borrowing rate.
Tomczak said the main point in going for the longer term is to minimize any future property tax increase. She reported annual debt service payments would be lower with the 15-year option so there could be tax abatement using revenue sources other than property taxes.
