Post by title1parent on Jun 22, 2010 6:22:16 GMT -5
www.suburbanchicagonews.com/napervillesun/news/2417242,6_NA21_D204-refinancing-save-1-9-million.article
D204 refinancing to save $1.9 million
June 21, 2010
By HANK BECKMAN For Sun-Times Media
Taking advantage of current low interest rates, Indian Prairie School District 204 took some steps to ease the burden to the taxpayer by refinancing a series of general obligation bonds.
"We think this is a very good time to lock in low rates," John Repsholdt of Ehlers and Associates told the board of education Monday.
Repsholdt indicated that the savings to the taxpayer would be about $1.9 million. "That's always good for everyone," he said, but he also stressed that the district's bond rating had also been upgraded, which bodes well for the district's ability to borrow in the future.
Several board members asked for confirmation that the bond issue did not extend the life of the bond, but only lowered the interest rates. Repsholdt confirmed that the life of the new bonds would not extend the district's debt in this particular case of borrowing.
The board passed the refunding bond, series 2010, unanimously.
In other business matters, the board unanimously approved the transfer of between $2.2 million and $2.3 million from the district's working cash fund into the education fund, as agreed upon in the 2009 budget. "We're moving some of the revenues in working cash into the education fund," Finance Superintendant David Holm said, indicating that the move was made in order to protect the education fund. "It helps keep it strong," he said, stressing that there was no impact on the district's overall financial situation.
Adjustments to salaries of 13 elementary school principals were approved, but although the total only amounted to $56,000, the move didn't go down quite as easily. "They were adjusted upward," board member Dawn DeSart said in dissenting from the majority. DeSart noted the difficult economy and said the move was "not something we want to do."
Board Secretary Christine Vickers joined DeSart in opposing the move.
D204 refinancing to save $1.9 million
June 21, 2010
By HANK BECKMAN For Sun-Times Media
Taking advantage of current low interest rates, Indian Prairie School District 204 took some steps to ease the burden to the taxpayer by refinancing a series of general obligation bonds.
"We think this is a very good time to lock in low rates," John Repsholdt of Ehlers and Associates told the board of education Monday.
Repsholdt indicated that the savings to the taxpayer would be about $1.9 million. "That's always good for everyone," he said, but he also stressed that the district's bond rating had also been upgraded, which bodes well for the district's ability to borrow in the future.
Several board members asked for confirmation that the bond issue did not extend the life of the bond, but only lowered the interest rates. Repsholdt confirmed that the life of the new bonds would not extend the district's debt in this particular case of borrowing.
The board passed the refunding bond, series 2010, unanimously.
In other business matters, the board unanimously approved the transfer of between $2.2 million and $2.3 million from the district's working cash fund into the education fund, as agreed upon in the 2009 budget. "We're moving some of the revenues in working cash into the education fund," Finance Superintendant David Holm said, indicating that the move was made in order to protect the education fund. "It helps keep it strong," he said, stressing that there was no impact on the district's overall financial situation.
Adjustments to salaries of 13 elementary school principals were approved, but although the total only amounted to $56,000, the move didn't go down quite as easily. "They were adjusted upward," board member Dawn DeSart said in dissenting from the majority. DeSart noted the difficult economy and said the move was "not something we want to do."
Board Secretary Christine Vickers joined DeSart in opposing the move.