Aurora is looking at renewing a $10 million line of credit it carries with Old Second National Bank.
Chris Minick, the city’s finance director, said recently the line of credit is used to provide short-term financing for things like the city’s contributions to economic development projects or land acquisition.
The line of credit is more practical sometimes than passing bonds, he said.
Minick made his comments during a recent City Council Finance Committee meeting. Committee members voted unanimously to recommend renewing the line of credit for another year.
The city first approved two lines of credit, one with Old Second and the other with Fifth Third Bank, back in 2019. Both were for $10 million, but the Fifth Third Bank credit line was increased to $15 million at one point.
Minick said the city paid off the Fifth Third Bank line last year and officials would not seek to renew it.
The Old Second line of credit was last renewed in July 2023 through June 30, 2024.
Minick said there is about $6.7 million left on the line of credit, which is about the same as it was last year at this time. No draws have been made on it in the past year, but Minick said officials anticipate making some draws on it yet this year.
Officials usually reduce the line from future bond issuances and repayments of development costs from developers from various economic redevelopment costs initially financed by the city, Minick said.
“We will look for opportunities to pay it down,” he said.
The rate changes on the line, but at this time is at 7.32%, up from last year’s 7%, because of nationwide interest changes, he said.
Aldermen will look at the renewal at this week’s Committee of the Whole meeting on Tuesday and likely vote on it May 28.
slord@tribpub.com
