Hoffman moves on loan for fire, police stations

The Hoffman Estates village board Monday approved the first of two proposed bond issues for various village projects, including new police and fire stations.

The total bonds issued would not surpass $57 million or increase property taxes, as they would replace pre-existing debt from bonds issued in the early 1990s, said Village Manager James Norris.

Norris said the village will be drawing from the same money source, therefore allowing the village to "wrap around" bond issues, Norris said. Those bonds would be retired either in 2011 or 2012.

The previous bond issues were for fire department equipment, Finance Director Michael DuCharme added. Those bonds were also earmarked for capital improvements.

The village will have another bond issue about a year from now, officials said.

Previous estimates had the first bond issue at $26.2 million, which would pay for the new fire station No. 24, the site plan for the new police station and the municipal water tank as well as renovations to village hall.

Village officials said they hope interest rates improve, which is the reason for the two separate issues, Norris said.

The second bond issue, for $28.7 million, would be for the construction of the police station.

Hoffman Estates police are scheduled to move from the old station at 1200 Gannon Drive into a new $28 million station in August 2010 at 401 W. Higgins Road. The current station was also the site of the old village hall until officials moved to the current village hall in 1992.

The fire station is estimated to cost $6.5 million, while the village halls are $6.25 million. The water tank is estimated at $5.75 million.

As a home-rule municipality, the village can issue bonds without a referendum. Monday's meeting was sparsely attended, with trustees Cary Collins, Gary Pilafas and Karen Mills out of town on business, according to Mayor William McLeod.