The Village of Bonduel recently refinanced its loan on the sewer utility for lower interest rate. In total, the refinancing is projected to save the village approximately $1.4 million over the life of the loan in the next 23 years. As of now however, the sewer utility operates in the red. It’s only able to operate in the black because of funds coming in from the TIF, which is why the village is preparing in the years leading up to its expiration, according to Bonduel Municipal Operations Chair, Shawn Thorne.
“We will have to raise rates 2 percent a year for the next six years” said Thorne. ” We are doing this so we have a positive cash flow operating sewer utility when the TIF expires.”
Thorne says this move was going to happen one way or another.
“Over the years, we allowed the TIF to compensate for our shortfalls, so this move has to happen.”
Residents aren’t going to see an immediate return on this cost-saving measure, but Thorne says it was an easy decision for the village.
“The Village is saving a tremendous amount of money” said Thorne. “We will reap the benefits in the longrun, but because we are so upside down with our operating revenue versus our operating expenses, we will not see it right away.”
Thorne says it would have had a dramatic effect on utility rates had the move not been made.
