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|Galesburg City Council Approves Line of Credit
|The Galesburg City Council isn't exactly pinning its hopes on the state to pay its bills on time.
That's why aldermen voted seven to one Monday night to approve opening a seven-million dollar line of credit with Wells Fargo Bank that, while could theoretically help pay for any public works project reliant on state funds, could most likely be used to help pay for construction of the planned rail crossing grade separations, the first of which is scheduled to start being built later this year.
The money in question is the state's capital bill, which Mayor Sal Garza says may not end up being as good at the public is being led to believe.
"The unfortunate reality is that I've heard of the scaling down of the capital spending bill," Garza said. "That's a real concern to me, as well as having the capacity to start and finish a project and not get caught mid-stream with a...project undone."
Seventh Ward alderman Mike Lummis says he is voting for the measure, even though he doesn't necessarily have to like why.
"I think it's a sound business decision. I'm glad we're establishing it," Lummis said. "But I hope and pray that we just haven't given IDOT a $7 million pass."
The money could be used for any public works project that has state funds attached to it, and some aldermen thought it should only be limited to overpasses.
Lummis says that's not necessarily what's best. "I'm afraid if we to allocate it for [overpasses] only, we'll only solidify the statement I said about the $7 million pass. And in today's economy, we have to remain flexible."
Aldermen agreed to amend the proposal so that Mayor Sal Garza would be listed as the primary signatory on the money if it needs to be spent. Only Third Ward Alderman Russell Fleming voted no on the overall proposal, saying the city should never have a line of credit for any reason.
Several aldermen were concerned about the process by which the bank was picked for the line of credit, while at least one other said he hopes the line of credit doesn't give the state a free pass not to pay up.
Aldermen Monday night voted not to take off the table a proposal to purchase the property at 200 South Henderson Street so that the public works department can be expanded there.
They also voted to put out for sale two properties in the vicinity of the old Regency hotel on North Henderson Street.
|04 06 10 by Newsroom
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