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Aurora City Council reauthorizes line of credit

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The Aurora City Council on May 28 reauthorized a $10 million line of credit it carries with Old Second National Bank.

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, officials have said.

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 line of credit was increased to $15 million at one point.

The city paid off the Fifth Third Bank line last year and officials did not seek to renew it.

The Old Second line of credit was last renewed in July 2023 through June 30, 2024.

There is about $6.7 million left on the line, which is about the same as it was last year at this time. No draws have been made on it in the past year, according to Chris Minick, the city’s chief financial officer.

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.

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