- Learn what the interest rate will be on the issuance of general obligation school bonds for the East Park renovations.
Last month, school board members authorized the issuance of general obligation school bonds not to exceed $8.5 million for the project.
Business director Heather McKiernan said the bonds will be sold Tuesday.
“The good news is we’ve been assigned a rating of A-plus from Standard and Poors, despite the state of the state (of Illinois,)” she said.
“We’re hoping for the best,” she said. “We’ll see how much money we receive.”
In April 2011, $21.5 million in bonds were issued to cover the renovations at South View and North Ridge middle schools with the understanding that a smaller bond issuance would be needed for the East Park project.
The renovation projects were budgeted in such a way as to not affect the local school tax rate, but East Park is the last and the largest of the three schools to be improved, and the money that is available will dictate how much will be renovated at East Park.
Since the district’s equalized assessed valuation dropped by 12 percent in the last four years, it has affected how much tax the district can levy to support the bond issuance without raising the tax rate.
This year, the owner of a home valued at $66,500 and who was taxed 58 cents per $100 equalized assessed valuation paid $93.52 toward the bond issuance for the South View and North Ridge middle schools renovations.
Next year, with the district projecting the equalized assessed valuation to decrease by about 6 percent, the same home could possibly decrease in value to $62,510, which made it necessary to slightly increase the tax rate from 58 cents per $100 equalized assessed valuation to 60.5 cents per $100 EAV to support the bond issuance for East Park. Even with raising the tax rate, the district still will collect less revenue for the project, with homeowners paying about $89.70 a year toward the East Park bond.
Denman said the district has set aside $4 million in addition to the bond money to pay for the renovations. Any additional money needed for the project beyond that will come from the district’s operational fund.