Let’s talk municipal finances: Q&A with Mayor Landek

landek
Mayor Steven Landek
 
Municipal finances are sometimes a difficult subject, open to misunderstanding or misinterpretation.

Mayor Steven Landek will try to answer some of the more frequently asked questions by residents.
 
Q: What exactly is meant by Bridgeview’s stadium "debt"?
A: Bridgeview’s stadium debt could be more accurately described as a 24-year mortgage.

Q: Is that like a mortgage for my own home?
A: Yes. Toyota Park has a mortgage so everything owed is not paid next year. The payments are made over 24 years, just like your home mortgage is paid in monthly installments.

Q: So, like my own home, I may be in "debt" for $150,000 but that amount is really being paid off by my monthly mortgage payment.
A: Yes. The stadium loan is structured exactly the same way, except payments are made twice a year.
The total amount due is not due next year. The final payment is due in 2036.

Q: Has the Village ever had a mortgage?
A: Yes. When the Village Hall was built in 1974, Bridgeview had a $2.4 million mortgage. This was an enormous amount in 1974. The water system, sewers, streets and any municipal improvement have all
been done with mortgages, which are sometimes called municipal bonds.
 
Q: Is there a timeline to pay off the mortgage on the stadium?
A: Yes, this timeline is much like your own house mortgage timeline. Interest is paid mostly in the first half of the mortgage, with the principal paid in the remaining years.

Coming next issue: Bridgeview residents, investing in Bridgeview.
 

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7500 S. Oketo Avenue. Bridgeview, IL 60455 TEL: (708) 594-2525
 
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