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Economic woes could stall chairman’s $220M capital plan


Schillerstrom-Robert
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County Board Chairman Robert Schillerstrom
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By Dan Petrella, dpetrella@mysuburbanlife.com
Suburban Life Publications

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DuPage County, IL -

The ongoing troubles of the U.S. economy have caused some members of the DuPage County Board to think twice about Chairman Robert Schillerstrom’s $220 million plan to upgrade county infrastructure.

As part of his proposed 2009 budget, Schillerstrom called for the board to set aside $12 million for the first annual payment on bonds that would be sold to fund the program. The uncertainty of the bond market and the overall volatility of the economy are leading some board members to question whether the time is right for the plan, which the chairman has dubbed DuPage 2013.

The plan would fund major road projects, such as widening three sections of 75th Street. It also would pay for modernizing information technology and improving buildings at the county government complex.

“Since you presented your budget, the world’s economy has changed greatly,” board member Jim Zay, R-6th District, of Carol Stream said at a special meeting held Tuesday to discuss the budget. “Obviously right now the bond market is not very good. The chances of going out and selling right now would not be good.”

Zay suggested waiting six months to see how the struggling economy affects sales tax revenues before committing $12 million to the capital program.

Board member Paul Fichtner, R-1st District, of Elmhurst also expressed concerns.

He said he was concerned with the proposed allocation of the estimated $48 million in new sales tax revenue the county expects to receive in 2009. The money will come from a tax increase the Illinois General Assembly approved in January.

“I think a main concern is that of the $48 million ... we’ve basically spent all of it with the inclusion of the $12 million bond program,” Fichtner said. “And that leaves us very little margin for error.”

Schillerstrom said that setting aside money for the capital program does not mean the county will attempt to sell bonds during an unfavorable time in the market.

“The world has been an unsettling, an unsettled place in the last couple of weeks and has changed dramatically from when I made that proposal,” he said.

The spending plan called for setting aside $12 million for the program, but did not suggest passing a bond ordinance at the time the budget is approved, he said.

“I tend to agree that selling bonds right now in the state of the world would be — now is not the time to do it,” Schillerstrom said.

Fred Backfield, the county’s chief financial officer, said that when the bond market improves, there are many investors who will jump at the chance to buy the bonds because of the county’s strong credit rating.

Schillerstrom’s budget plan would increase county spending by 12 percent and restore many programs and services that were cut or reduced in previous years. Overall, it calls for spending about $462 million in the coming fiscal year, which begins Dec. 1, without raising property taxes.

Schillerstrom said he expects the board to pass a 2009 budget at its Nov. 11 meeting.

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