The Aurora City Council Tuesday night approved the sale of $40 million in general obligation bonds to fund projects like the construction of new fire stations, an expansion project at RiverEdge Park and the purchase of a downtown parking garage, among others.
The council voted 11-1 in favor of the bond issue, with Ald. John Laesch, at large, voting against it.
The bonds will be sold in two series – a tax-exempt series not to exceed $25 million for general infrastructure projects and a taxable series not to exceed $15 million to pay for phase one of the Aurora Civic Center Authority financial sustainability plan, which was approved earlier this year, according to officials.
Aurora Chief Financial Officer Chris Minick said at the Tuesday meeting that the $25 million bond series will go to pay for the initial construction costs of two new fire stations, Fire Station 9 and Fire Station 13, which both broke ground recently.
This tax-exempt series of general obligation bonds will also go to pay for planned expansions to RiverEdge Park, Minick said. The expansion project is estimated to cost around $16 million and will include a new backstage, a new entry on the southern edge of the park, a new beverage pavilion, a new VIP section and new restrooms, officials have said.
The renovations are expected to increase the park’s capacity, which is currently about 7,300 for events and 6,500 for concerts, by about 2,500 people.
The $25 million bond series will also help to fund previously-approved improvements to Bilter Road, according to Minick.
The taxable $15 million bond series will help to pay for the purchase of the downtown valet parking lot at 2 New York St. in downtown Aurora from the Aurora Civic Center Authority as a part of a plan to make the Civic Center Authority financially stable after the COVID-19 pandemic, Minick said. Past reporting shows that the cost of buying the parking garage will be around $10 million.
Phase one of that plan also sees the city contributing around $1.3 million to help pay off the Civic Center Authority’s debt from building the new Stolp Island Theatre, as well as paying $2.5 million for the renovation work going on along the Fox River Promenade between the Paramount Theatre and the river, officials have said.
The $15 million bond series will also go to pay for these parts of the plan, Minick said.
The Aurora City Council previously approved the concept of selling bonds to pay for phase one of the Aurora Civic Center Authority financial sustainability plan in September. At the time, it was estimated that the bond sale would be for $13.8 million.
In theory, both series of bonds could cost the city a total of $5 million annually, but with current market conditions and anticipated borrowing levels, it is likely that number will be closer to $2 million annually, according to Minick.
He said the city is also “going to do everything we can to abate as much of the levies as we can on an ongoing basis. That’s just part of what we do and part of the budget process.”
There is a possibility that some of that estimated $2 million per year cost would need to be paid through an increase to the property tax levy, but likely only for the part going to pay for the construction of new fire stations, Minick said.
When Laesch asked Minick why property taxpayers would only be on the hook for fire stations, Minick said that is because fire stations are “general infrastructure improvements that are of great benefit to the entire city” and that they “go to the essence” of public safety and public works.
More than just these two bond series are expected in 2025, but the city is planning to wait until later in the year to do additional bond sales to help keep interest costs down by borrowing only the money it currently needs, according to Minick.
rsmith@chicagotribune.com
