Geneva to borrow $30M to pay for electric infrastructure improvements

GENEVA – Geneva is poised to issue $30 million in alternate revenue bonds to pay for improving the electric infrastructure for the continued development of the North Geneva Business Park, Fabyan Parkway and South Kirk Road corridors.

According to legal requirements, the Geneva City Council set Dec. 18 for a public hearing on the bond issue at its Nov. 20 meeting. No one spoke at the Dec. 18 hearing.

At that meeting, the vote was 9-0 to pass the ordinance, with two absent and including Mayor Kevin Burns’ vote.

According to the ordinance, the alternate revenue bond will pay for a substation and transmission feeders and for the construction of a transmission feeder into the Kirk Road and Fabyan Parkway corridors and expanding the Geneva Business Park substation.

An electric feeder line is a type of power line in which electricity is transmitted through power systems. A feeder transmits power from a generating station or substation to the distribution points.

The bonds will be paid from the net revenue of the city’s electric utility, according to the ordinance.

If for some reason the electric utility’s revenue is not enough to pay the principal and interest on the bonds, property taxes would be levied to cover the cost, according to the ordinance.

City Administrator Stephanie Dawkins said Moody’s Investor Service upgraded the city’s bond standing from Aa to Aaa – one step away from the triple AAA.

“As of fiscal 2023 April 30 year end, they said the city has about $10 million in … general obligation unlimited tax debt outstanding,” Dawkins said. “They said that the rationale reflects the strong and improving financial position driven by growing tax revenues and strong fiscal management.”

To be one notch away from the AAA rating would be difficult to achieve as a non-home rule community, Dawkins said.

“But I think you all should be very proud of what you’ve done over the last few years in building up some of our reserves and some of our fiscal policies,” Dawkins said. “And credit to the staff and to celebrate the city’s rating.”