Seizing the opportunity to take advantage of the lowest interest rates in years, the Waukegan City Council has voted to refinance its existing bond debt and issue $5 million in new bonds to finance capital projects.
Refinancing the city’s existing $16 million in outstanding bonds at a lower interest rate will save about $540,000, creating a windfall that will be put to use repairing streets and sidewalks, city officials said.
The $5 million in new bonds will be used for a variety of capital projects, including a new fire station for the city’s northwest side, water and sewer improvements and a proposed redevelopment of Waukegan Municipal Beach.
How much of the new money will be spent on each project will be determined over the next few months, city officials said.
The refinancing and bond issue were approved at a special meeting to debate the first draft of the city’s $74.7 million budget for the coming year.
Although it is the largest budget in the city’s history, the budget projects a surplus of more than $8 million at the end of the year due to record growth generated by new development.
