$1 million saved is $1 million earned.
At Tuesday night’s meeting, treasurer Deanna Levenger announced a seven-figure savings would be passed on to property taxpayers within the district over the next seven years.
Last week, Levenger finalized the deal when she issued $6.5 million in school facilities improvement refunding bonds that were secured in 1994 through the unlimited tax pledge. The money originally helped pay for the construction of the Woodridge Middle School, and covered improvements to the Woodridge High, Intermediate and Elementary Schools, she said.
In other words, Levenger saved $1 million by selling new bonds at a lower interest rate (1.72 percent) to pay off existing bonds that carried a higher interest rate (4.65 percent).
The savings from the refinancing will only go to property taxpayers because the money being used to pay off the $6.5 million tab comes from the district’s debt service payment fund, not the general fund, she said.
The savings accrued per taxpayer will vary depending on the valuation of one’s property. Either way, once its divided up, the savings per capita will be relatively small.
Encouraging news for the district
The district was able to refinance due, in large part, to the fact that it was assigned its first Moody's Aa2 bond rating.
Moody’s rationale behind the approval:
- The district’s historically stable financial operations.
- Historical first attempt approval of renewal levies
- The district’s proactive approach to addressing the back-to-back levy failures in November and March.
- The district’s moderately sized tax base with additional room for development.