SAUK VILLAGE | The financial dire straits of Sauk Village soon will see significant relief.
The board passed an ordinance Tuesday to issue $575,000 in general obligation bonds.
Mary Thompson, from Kane McKenna Financial, appeared before the board to explain the details.
"The bonds will be issued through Bernardi Securities of Chicago," Thompson said. "We are looking at a 10-year amortization right now. It is possible to also look at a five- or seven-year amortization, but we believe the 10-year would be in the best interest of the village."
Thompson also told the board the expected interest rate on the bonds would be "in the 4 percent range."
Kane McKenna advises the village on financial issues and has been working on their behalf to help secure working capital funds.
According to Finance Director Beverly Sterrett, some of the money will be used to pay back bills, and some will be used as a working cash fund. Sterrett told the board all tax money due to the village have been received from Cook County until March or April.
"Hopefully, the spring installments will not be late," Sterrett said. Autumn disbursements from the county were two to three months behind schedule.
The village has looked at several financing avenues to help with its cash flow issues. The new administration, elected in the spring, has dealt with a $2 million deficit they said was inherited from the previous administration.
Sterrett and Chief of Staff Brunetta Hill-Corley have been working with several local banks and bond institutions to secure the necessary financing needed for day-to-day expenses.
The village laid off three employees to help offset the deficit.
Unpaid furloughs are being considered for other nonessential positions, Hill-Corley said.