ROCHELLE — The Rochelle City Council unanimously approved an ordinance at its Monday meeting authorizing the issuance of $18 million in general obligation to pay for improvements to its electric system. 

There are several infrastructure projects (transformer, substation, solar, 5kV, etc.) that will be necessary in the next few years in the electric department. Rather than deplete cash reserves, staff recommended taking advantage of the “low interest rate environment” and issuing bonds. 

"We're doing two issuances, $9 million each,” City Manager Jeff Fiegenschuh said. “That's to allow our local banks to have the ability to bid on them. Right now, interest rates are about two percent. It's a good rate. I'm a little leery about taking out $18 million in total to be honest with you. We're going to do the first issuance and see how things play out.”

The annual payback the city will make will be about $500,000 a year and the improvement projects won’t require a rate increase for Rochelle Municipal Utilities customers, Fiegenschuh said.

American Rescue Plan Act

The city is set to receive approximately $1.23 million in two installments from the federal government through the American Rescue Plan Act. Funds may be spent on improvements to water, sewer, broadband and replacement of lost revenues. 

The city council unanimously approved the spending of those funds on $940,000 for rehabilitation and painting of the overpass water tower, $225,000 in updating fiber infrastructure and $60,000 in updates to Railfan park.

Annexation for city’s railroad

The city voted unanimously to enter into an annexation agreement for 10 acres of land with GREDCO to assist in economic development by extending its transload yard. The 10 acres are located north of 1951 Steward Rd. 

The city also unanimously agreed to annex four lots into the city to open adjacent land to rail access totaling 47.44 acres located east of Steward Road and south of Richie Road. 

Public hearings were held for both annexations at the meeting.

Water reclamation improvements

The council unanimously passed a resolution giving Fiegenschuh the authority to sign Illinois Environmental Protection Agency loan documents to borrow $9 million to provide funds to pay for its water reclamation plant phase two improvements.

SCBA purchase

The council unanimously approved the purchase of 26 self-contained breathing apparatus 

(SCBA) units for the fire department along with ancillary equipment at a cost of $182,400 to replace 24 current units which have reached their usable life span of 15 years.

$166,666.67, or 95 percent of the purchase was covered by a FEMA Assistance to Firefighters grant.

VanVickle sworn in

Members of the Rochelle Fire Department roster filled the room to start the meeting for the swearing in of Firefighter/Paramedic Zech VanVickle, who joined the department this month as its 13th full-time member.