Crestwood plans bond sale for water scandal settlement, Crestwood officials expect to finalize a $9 million bond sale by early December to help in settling lawsuits filed by hundreds of current and former residents over the village's use of contaminated well water in its drinking supply for more than 20 years.
The village expects to pay $15 million to nearly 350 plaintiffs who sued the village after the well's use came to light in 2009, and Crestwood hopes to have the litigation put to rest by the end of this year, Mayor Lou Presta said.
Trustees approved the bond issue last month, but because Crestwood is not a home-rule community, residents could potentially petition to have the proposed sale placed before voters in a referendum.
But there doesn't seem to be a petition drive underway, and few residents attended Thursday's night public hearing on the sale, with no one speaking against it. More than 600 petition signatures would be needed to force a referendum, and the petitions would have to be filed by Oct. 26.
Presta said if a referendum were required, it would not be held until March at the earliest, and Crestwood would find another, albeit more expensive, option such as a loan to get the settlement money.
The village would pay off the bonds over 12 to 16 years, Vince Cainkar, an attorney representing the village in the bond sale, said at the hearing. Unlike a general obligation bond sale that would be repaid via property tax revenue, Crestwood will use a fourth of the income from its local sales tax, or about $800,000 annually, to pay the principal and interest on the bonds, Cainkar said.
He said the actual sale of the bonds would start sometime next month and probably wrap up by early December. The village wants to finish the sale before a potential interest rate increase by the Federal Reserve Board, which would make retiring the debt more costly.
Crestwood last fall paid $50,000 to settle a lawsuit by the Illinois attorney general's office over the use of the well water, which was tainted with vinyl chloride, a known carcinogen.
Village officials told residents and the Illinois Environmental Protection Agency that it was using only Lake Michigan water after 1985, when the contaminated well was discovered, but regulators later learned that Crestwood continued to use the well for as much as 20 percent of its water supply from 1985 to 2007.
Village officials have steadfastly denied that residents' health was in jeopardy, although many of the lawsuits have blamed the use of the well water for illnesses including kidney problems, tumors, different types of cancer and immune system disorders.After the well's use was revealed, the IEPA said the public's health was never at risk, but the U.S. EPA has said there is no such thing as a safe exposure level to vinyl chloride, a chemical used in dry cleaning.
Presta said Friday that, should the village have to get voter approval for the bond issue, Crestwood would take another route, possibly a bank loan that could carry a higher interest rate. But he's confident the lawsuits will be resolved.
"We're going to still settle the lawsuits," he said.
Besides the bond money, Crestwood would use $3 million in current village funds as well as $3 million from insurance to cover the settlement..
The village expects to pay $15 million to nearly 350 plaintiffs who sued the village after the well's use came to light in 2009, and Crestwood hopes to have the litigation put to rest by the end of this year, Mayor Lou Presta said.
Trustees approved the bond issue last month, but because Crestwood is not a home-rule community, residents could potentially petition to have the proposed sale placed before voters in a referendum.
But there doesn't seem to be a petition drive underway, and few residents attended Thursday's night public hearing on the sale, with no one speaking against it. More than 600 petition signatures would be needed to force a referendum, and the petitions would have to be filed by Oct. 26.
Presta said if a referendum were required, it would not be held until March at the earliest, and Crestwood would find another, albeit more expensive, option such as a loan to get the settlement money.
The village would pay off the bonds over 12 to 16 years, Vince Cainkar, an attorney representing the village in the bond sale, said at the hearing. Unlike a general obligation bond sale that would be repaid via property tax revenue, Crestwood will use a fourth of the income from its local sales tax, or about $800,000 annually, to pay the principal and interest on the bonds, Cainkar said.
He said the actual sale of the bonds would start sometime next month and probably wrap up by early December. The village wants to finish the sale before a potential interest rate increase by the Federal Reserve Board, which would make retiring the debt more costly.
Crestwood last fall paid $50,000 to settle a lawsuit by the Illinois attorney general's office over the use of the well water, which was tainted with vinyl chloride, a known carcinogen.
Village officials told residents and the Illinois Environmental Protection Agency that it was using only Lake Michigan water after 1985, when the contaminated well was discovered, but regulators later learned that Crestwood continued to use the well for as much as 20 percent of its water supply from 1985 to 2007.
Village officials have steadfastly denied that residents' health was in jeopardy, although many of the lawsuits have blamed the use of the well water for illnesses including kidney problems, tumors, different types of cancer and immune system disorders.After the well's use was revealed, the IEPA said the public's health was never at risk, but the U.S. EPA has said there is no such thing as a safe exposure level to vinyl chloride, a chemical used in dry cleaning.
Presta said Friday that, should the village have to get voter approval for the bond issue, Crestwood would take another route, possibly a bank loan that could carry a higher interest rate. But he's confident the lawsuits will be resolved.
"We're going to still settle the lawsuits," he said.
Besides the bond money, Crestwood would use $3 million in current village funds as well as $3 million from insurance to cover the settlement..
About JULIA
Blogger Comment
Facebook Comment