The city of Geneva got some good news to the tune of $800,000 Monday, when it re-funded some general obligation bonds at some very favorable interest rates.
The $800,000 savings over the life of the bonds is added to the approximately $1 million the city saved from early bond re-funding.
"It's just remarkable," said David Phillips of Speer Financial Services, which represents the city in its refinancing efforts. "It’s in large credit (due to) your AA2 rating. People are looking for secure investments, and you can’t get much stronger than that."
The city received confirmation of Moody's AA2 bond rating about we week earlier, City Administrator Mary McKittrick said after Monday's City Council meeting at City Hall, where the city voted unanimously to issue the general obligation re-funding bonds.
The various bonds were initially issued to pay for the $10 million purchase of the Prairie Green property west of Peck Road and wastewater treatment plant improvements. Voters approved the bond referendum for Prairie Green back in 1997.
While Geneva taxpayers might not to see an immediate impact on their tax bill, the savings help over time by reducing the city's debt and lowering the tax levy, McKittrick said.
Meanwhile on Monday night, the Geneva School Board agreed to dip into its reserves to pay down debt.
According to an article by Susan Sarkauskas in the Daily Herald, School District 304 voted Monday to transfer $3.2 million from its education fund to abate the debt fund levy.
By paying down the debt, a homeowner with an "average" Geneva house valued at $288,000 would see $98 reduction in his or her tax bill, the story said.