The Westmont Village Board on Oct. 30 approved an agreement to retain Raymond James as the village's municipal adviser as staff pursues a potential issuance of up to $34 million in general-obligation/alternative-revenue bonds to finance a new fire department headquarters and water-system improvements.

Director Altek told trustees the proposed bond would cover construction of a fire headquarters (staff estimated a potential construction cost in a range discussed publicly), architecture and related moving costs, and roughly $4 million in water projects including North Park, Chicago and Bullard water-main improvements and water-treatment-plant rehabilitation. He told the board the water portion was anticipated in the long-range water-financing plan and already factored into water-rate projections approved last winter.

"We're targeting a bond sale in late April and plan several board actions between now and March, including establishing special counsel and a parameters ordinance," Director Altek said, explaining a schedule that would include a public hearing on the issuance in February and final bond-issuance approval in March.

Altek said the village expects to pay the fire-related annual debt service from revenues generated by the additional non-home-rule sales tax approved by the board in March 2024 and that the water debt service was factored into the water fund's rate structure. He also noted Westmont's AA+ credit rating and said municipal advisers help structure the sale, advise on timing and present the village to investors and rating agencies.

Trustee Bruce Barker questioned the decision to borrow for water projects rather than draw the water fund balance. "What's the advantage of borrowing that money?" Barker asked. Altek replied that borrowing preserves fund-balance margins and protects the village from depleting reserves, saying projections showed fund balance falling below recommended minimums in coming years without financing. A village staff member also described "generational equity" as part of the rationale: stretching the cost across the 20-year period so users of the infrastructure help pay for it.

The board approved the municipal-adviser agreement by roll call (motion by Trustee Johanna Guzzo; second, Trustee Linda Little). Trustees voted unanimously to retain Raymond James; staff cited a fee of $44,000 on a $34 million issuance and said fees would scale if a smaller issuance were chosen.

Next steps outlined by staff include appointing bond and disclosure counsel at the November meeting, adopting a declaration of intent and public-hearing dates in January, holding the public hearing in February and approving bond parameters and final sale in March. Staff said the timing aims to have funds available before major construction activity begins.

The vote to approve Raymond James was taken as part of the Oct. 30 meeting's new-business items; staff said the final bond terms (interest rate, exact maturity schedule) would be set later and could change before final approval depending on market conditions.