ROCHELLE — The City of Rochelle is moving forward with a financing plan for airport and tech center improvements using an interfund loan instead of issuing general obligation bonds. City staff said the projects include a new eight unit T hangar at the Rochelle Municipal Airport and improvements at the Tech Center, with a combined estimated cost of about $3.3 million. Officials said rising interest rates and market uncertainty made bond financing more expensive than originally projected. The city plans to borrow up to $3.3 million from the Solid Waste Fund at a 1.5 percent interest rate over five years.
Mayor Bearrows noted that using the Solid Waste Fund for capital improvements is what those funds should be used for.
Staff said the structure is expected to reduce borrowing costs, provide flexibility in repayment, and avoid about $825,000 in interest expenses compared with bond financing. Reimbursement funding, hangar lease revenue, and operating revenue will be used to repay the loan.