TOLONO — The Tolono village board Tuesday voted to issue $3.5 million in alternate revenue bonds that will pay for a drainage project in the town's southeast quadrant.

The village also voted to retain Ruan Securities in Des Moines, Iowa, as the underwriter. Chicago-based Ice Miller LLP, will serve as bond counsel, and Bloomington-based law firm Jacob and Klein Ltd. will provide legal services. Their fee will be 1 percent of the bond issue.

Bond closing is scheduled for March 15.

The bonds are scheduled to be paid off by 2026, the end of Tolono's tax increment financing district.

The drainage project involves replacing a 27-inch diameter storm sewer with a 60-inch sewer and the addition of a stormwater detention area between St. Patrick's Cemetery and the town's sewer plant.

The improvements will provide relief to flooding in the downtown area, which is in the tax increment financing district.

Trustee Greg Kingston question whether the village could use any of the $1.3 million in its TIF fund to pay for the drainage project and issue a smaller amount in bonds.

Jacob and Klein attorney Stephanie Sandre explained that the cash balance in the TIF fund is used for other obligations, like paying developers.

Residents will be given the opportunity to speak about the drainage project during a public information hearing from 7 to 9 p.m. on Jan. 26 at the Tolono Town Hall, 11 E. Holden St.