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District 304 Bond Refinance Saves More than $1 Million Overall

The original bond issue is the one that financed the 2004 construction of Geneva Middle School North.

  • Information for this article is from a School District 304 press release.

On Dec. 1, Geneva Community Unit School District 304 completed a bond refunding for the 2004A bond issue. The 2004A bond issue financed the construction of Geneva Middle School North following a successful Nov. 2, 2004, referendum.

The General Obligation Refunding Bond, Series 2011 is a partial refund of the 2004A issue, with the remaining amount to be refunded in the spring. The district will realize a savings of $742,379 on this portion of the refunding and an estimated $1,037,526 savings overall.

The refunding did not extend the time for the debt to be paid but lowered the payments by an average of $130,000 per year.

The district maintained a AA+ rating with Standard & Poors to receive the best interest rate possible on the transaction. This refunding is part of the District 304 plan to manage its long-term debt.

 

Bob McQuillan December 22, 2011 at 10:00 PM
While this a good move, $130,000 a year savings when the yearly debt repayment is $16,000,000 this year and will climb to 24,900,000 within a few short years, is a very, very minor part of what should be an aggressive repayment plan. The "average house" will see it's school property taxes increase by an estimated $270.00 in May 2012. All Geneva residents need to realize that our total debt of $325,600,000 dollars will continue to bring house values down and increase taxes every year until 2027. People can't move in or out of town. These increases will be only for repayment of debt. It will not hire a single teacher, buy new equipment or add any new educational programs. It's for debt only and that is an extremely scary situation to be in especially when the economy is still falling. The closure of many local businesses will only add to the decrease in collectible taxes. Oh, by the way Merry Christmas and Happy New Tax Year. Hope we are all here this time next year.
Jim J December 22, 2011 at 10:39 PM
Glad to see you are in the holiday spirit, Bob.
Bob McQuillan December 22, 2011 at 10:48 PM
The holidays don't change reality and the school board didn't give hard working residents a Christmas gift. If you think they did, give me a call on May 1, 2012 cause your attitude might change, that is if you pay property taxes in Geneva.
Les Dixon December 23, 2011 at 11:16 PM
Between a rock and a hard place - house prices going down and taxes going up. Hope we can exit in 4-5 years. I don't want to think about our tax bill at that time. Les

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