District 304's Bond Refinance Expected to Save $400,000
The transaction, which was delayed for a year by high bond interest rates, could save the district more than $400,000, officials say.
A delayed bond refinancing could save School District 304 more than $400,000 in bond interest payments this year, the Board of Education heard Monday.
Board members re-approved the plan to refinance $15.5 million in building bonds a year after they had originally voted on it. State law requires that the district take action on a refinance motion within 12 months, explained Assistant Superintendent Donna Oberg.
“The board did approve this last September. At that time, it was 3 percent or higher, but a week later it dropped below 3 percent. We need 3 percent or higher to realize the savings we need, so we waited. Just in the last couple of weeks it’s been at least 3 percent,” Oberg said.
Superintendent Kent Mutchler said the district will refinance the bonds as soon as possible.
"We watch the market, and when it reaches a certain point, we want to act immediately. That’s why we’re asking you to approve this tonight,” he said.
In May, Geneva Township Assessor Denise Lacure advised the board to refinance and pay off the district’s outstanding bonds as soon as possible to prevent steep increases in the bond fund tax levy.