Earlville proceeds with permissive referendum for capital project

EARLVILLE – The Village of Earlville is moving forward with a capital project to update its municipal water system, a project that will cost $3.09 million. Some village residents are upset that the board seems to be proceeding without putting the project up for a public vote.

On Monday night, the Earlville Village Board voted to approve a resolution to secure bonding for the water project, with three consenting votes. Trustee Kim Boomhower was not at the meeting due to a leave of absence.

The next village board meeting on Aug. 27 will include a public hearing and a special meeting to follow. At the meeting, the board may pass a resolution authorizing the issuance of bonds for a capital water improvement project pending a period of permissive referendum.

Last month, the Earlville Board held a public meeting about the water project, and Mayor Toni Campbell had discussed options for the referendum. Normally with a capital project, the plan is put out to a public vote, and eligible voters decide whether or not they want to proceed with the project. Campbell also mentioned a permissive referendum. Using this option, the village would obtain bond counsel, and then village residents would have 30 days to submit a petition for a public referendum.

After the meeting, Village Clerk Christian Vischi explained the village is pursuing the permissive referendum in order to lock in the interest rate for the project. Earlville was offered a $500,000 grant from USDA Rural Development for the water system upgrade, and USDA is offering to finance the remainder of the project over a 38-year period at an interest rate of 3.625 percent. In order to secure funding, the village must submit a funding application by Sept. 30. Vischi said the public referendum could have held up the process and possibly resulted in an interest rate of 5 to 6 percent.