Galesburg aldermen voted in favor of a $10 million bond issue so the city can catch up on a backlog of road and bridge projects throughout town.
The money will be repaid over the next 20 years with funds raised by the city’s new capital utility tax.
The city went ahead with the bond issue even though Moody's recently lowered its credit rating from Aa3 to A1, citing a below average socioeconomic and demographic profile.
City Manager Todd Thompson said despite Moody's decision, this is still a good time for Galesburg to borrow money.
"Interest rates are pretty low right now, so even with the downgrade we got a pretty good interest rate, a little bit below 3%,” Thompson said.
The $10 million dollar bond will fund a three-year construction plan, and priorities are already being determined.
“It’ll likely be Fremont (Street), Seminary (Street) related work, as well as brick streets,” Thompson said.
The city estimated an overlay of Fremont Street would cost around $1,251,000, and reconstructing Seminary Street could cost $2,249,000.
Other possible projects include reconstruction of the Farnham Street Bridge, reconstruction of curbs and sidewalks on Maple Street, and work on the vacant Armory Building.
