Evanston’s Finance and Budget Committee advanced a staff recommendation Wednesday night to issue up to $30 million in General Obligation bonds for the city’s 2024 and 2025 Capital Improvement Plan projects and water funds and another $1 million for the Library Fund.
A final decision on the borrowing request will be up to the City Council.
In a memo, City Engineer Lara Biggs told committee members that the city had issued GO Bonds for CIP projects through 2023, but with spending already authorized for projects between 2024 and 2026, payments have already been made on contracts, leading to a “fully depleted” Capital Improvement Fund.
“As a result, the fund is now operating with negative cash and fund balances and is relying on temporary advances from other funds to continue making payments,” Biggs said.
The borrowing plan includes about $26.9 million in GO Bonds for 2024 and 2025 capital projects to allow the city to reimburse itself for projects its already completed.
The request includes another $2.9 million in GO Bonds to reimburse the city for work on the 2025 water projects, noting that the city “may need to rely on temporary advances from other funds or consider an additional bond issuance if interest rates become more favorable.”
Anthony Miceli of Speer Financial, who attended Wednesday’s meeting, said bond markets and interest rates may be shaky in the coming months, with heightened concern about how the Federal Reserve will react to the newly launched war with Iran.
Speer’s projections for the bond sale indicate the city will have paid roughly $14 million in interest by the time it finishes paying off the bonds in 2045.
Also forwarded to the City Council was a $1 million issuance to support the Library’s share of the library roof repair, estimated to cost $1.98 million and funded through the city and library’s GO Bonds.
Staff noted that total cash dropped by $43.7 million from 2024 to 2025, primarily due to delays in Cook County’s collection and disbursements of property tax revenue.