Lake in the Hills to borrow $15M for new police facility

Lake in the Hills is about to issue $15 million in general obligation bonds for its new police facility.

The village approved a plan for funding the new station in 2022, with about half the money coming from reserves and about half from a bond sale, Finance Director Peter Stefan said.

The plan included nearly $14.1 million in bonds to get to $27 million when combined with the nearly $13 million the village has already put toward the project. But borrowing a slightly higher amount, via the $15 million bond sale, allows for “enough of a contingency” once expenses like closing costs, have been accounted for, according to village records.

Parameters on the bonds include a maximum amount of $15 million, maximum maturity date of Dec. 15, 2045, maximum annual maturity of $1.15 million and a maximum interest rate of 5%, Stefan told the village board Tuesday evening.

Final costs won’t be entirely known until bonds are sold, according to village records.

Lake in the Hills officials have long said that the new police station, which broke ground last year and is going in behind the Costco and next door to Village Hall, will not raise residents’ taxes. The project has a total cost of $26.585 million, according to an FAQ about the station.

While Lake in the Hills is taking on debt for the project, Stefan said the village paid off its police pension debt, which freed up some money. Those dollars are going toward the bonds. While there will be a tax levy for the bonds each year, Stefan said the plan is to abate it.

With current projections and current interest rates, which are “changing drastically every day,” Stefan said, final maturity could be Dec. 15, 2044, a year before the maximum, and the annual payment would be $1,039,000, below the $1.1 million approved in the plan.

Trustees approved the bond sale unanimously Tuesday with little discussion. One board member pointed out the motion before them didn’t mention anything about the police department, but village attorney Brad Stewart said the ordinance the board was voting on “contains the detail of the subject.”

Though the village has until October to sell the bonds, Stefan said the village plans to sell the bonds online next month.

Lake in the Hills Police Public Information Officer Amanda Johnson said the anticipated completion and move-in date for the new police department is Winter 2025.

“As progress continues, excitement and anticipation grow for the station as the space will not only be a building for officers and staff but also be a place of safety, service, and pride for the entire community. The members of the Lake in the Hills Police Department as well as the Village of Lake in the Hills are grateful to the incredible dedication and hard work of the construction teams,” Johnson said in an email.