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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.

Rich Hayhurst September 13, 2011 at 05:44 PM
Board members Mary Stith and Kelly Nowak also claimed, loudly and publicly during the election that they "saved the taxpayers 750,000.00" due to "bond refinancing." When I investigated this assertion, as with many of the boards claims, a typical half truth was discovered. It turned out that 500,000.00 of the "SAVINGS" was a simple CASH PAYMENT on bond debt. Board members -publicly- overstated the savings to taxpayers by more than 500,000.00.
Angela Kane September 14, 2011 at 04:51 PM
We were also told by those promoting building a 2nd middle school and the new elementary schools that they wouldn't cost us any more money (once they were built) because staff, etc. would just be spread around. Ya, another round of horse-hockey. At the time so many people bought that garbage. When times are good (new housing being built, vibrant economy) people seem to want to believe anything to get shiny new buildings so we can all brag about what great facilities we have (always used as a selling point by realtors). Well we've seen a real decline of our economy, foreclosures, bankruptcies, and unemployment hit us and those nice buildings are costing us lots of money we really don't have and/or shouldn't be spending. The spending spigot has to be turned off....but those shiny buildings are so attractive they dazzle too many people! And by the way, paying off those construction bonds is going to smack us hard! I don't care what the rate of interest is--a debt is a debt!

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