No one can see a dedication plaque in a sewer pipe

The following letter was sent to the Arlington Heights Daily Herald Fencepost Editors on Friday, January 22, 2016:

Dear Daily Herald Editors,

RE: Fix Village flooding; not construct a new police station

On Tuesday, January 19, The Arlington Heights Village Board approved the issuance of $32.9 million of General Obligation Bonds for the purpose of financing the construction of a new police station. On Wednesday, January 20, the Village Board informed residents there was no funding available for the $11 million to $15 million necessary to fix the chronic flooding problems in our village. To summarize, there is funding for a new police station but no funding for chronic flooding problems.

Quoting from an engineering study commissioned by the Village Board, Mr. Dan Lau of CDM Smith Engineering explained village flooding solutions. But, quickly following that presentation, the residents were informed that the village has no “funding mechanism in place” to implement any of those solutions.

Flooding anywhere in the village is a major health hazard and adversely affects all village property values. Therefore, a new police station is not needed at this time. In my opinion, the village board needs to re-evaluate their priorities. In other words, put the new police station on hold, and fix the flooding in Arlington Heights with the funds from the new bond issue.

Sincerely,

Keith A. Moens

The Bond Issue

The Village was able to roll over maturing bonds to re-issue a general obligation bond for construction of a new police station. Since the bond was a roll over there is no additional revenue source needed to service the bond coupon. The current economic environment is ideal for such a maneuver. The Village was able to borrow $32.9M at 2.93% for 20 years. 

The Village of Arlington Heights has AA1 bond rating due to a large tax base, ample operating funds, substantial financial flexibility, home rule and low debt burden. The Key Bank purchased the general obligation municipal bonds and was marketed through Speer Financial Inc. in Chicago. 

The Village went out for the bond re-issue prior to approval of the final cost of the police station. This is because starting March 1, 2016, Illinois state legislation, for the next two years, will not allow non-referendum debt to be sold. In other words, any new or rollover debt will require a ballot referendum. By issuing the current debt now avoids placing the question of a new police station on the ballot as a referendum, one that would probably fail the popular vote.

But since Arlington Heights is 'home rule' and the police station was not a referendum issue, municipal bond laws would allow the Village Board to redirect the current issue bond funds to another infrastructure project other than the police station. An ordinance has to be passed by the Village Board that would redirect the $32.9M to the flooding project. The Board should consider doing exactly that as the flooding project is by far more valuable to a majority of residents.

A new police station instead of fixing the flooding problem?

The question remains is why would the Village Board choose to re-issue bonds to build a new police station rather than address chronic flooding problems or other seriously needed infrastructure projects? A new police station is clearly not needed. The Village of Arlington Heights has 137 full time policemen and budgets every year to the police department about $24.6M or 34.1% of the General Fund. Also the crime rate in Arlington Heights remains low with near non-existent violent crime. In fact the crime rate is down about 45% over ten years. 

Flooding anywhere in the village is a major health hazard that adversely affects all village property values. Yet somehow the Village Board considers constructing a new police station a higher priority than fixing our village flooding. Why?

No one can see a dedication plaque in a sewer pipe

If a new police station is constructed instead of implementing an existing plan to reduce village flooding, questions will arise about who will get the construction contracts. Of course inevitable campaign contributions and business connections will also come under heavy scrutiny. 

Construction and labor contracts should be awarded solely to Arlington Heights companies and residents. This would encourage local spending that would support local businesses from the demand side.

Finally, a plaque will be dedicated to the brave village president and trustees that built the new, state of the art police station; but then left village residents swimming in their own basements.