District 205 Refinances Another $6.5 Million in Debt
Action will directly reduce residents' tax bills by nearly $1 million.
For the second time in a year, Elmhurst District 205 has refinanced some of its bonds to save taxpayers money.
The district announced last spring that it refinanced about $8 million in debt, which resulted in about $600,000 in savings to taxpayers.
On Jan. 17, another $6.4 million in debt was refinanced, reducing interest rates from 5.25 percent to 2.67 percent and yielding an additional net savings to the taxpayer of about $900,000, School Board President Jim Collins told the board Tuesday.
"That comes directly off of property tax bills," Collins said. "It does not go back into the School District budget to be spent on other things."
The debt is from the $54 million in bonds issued after the district's 2006 referendum passed, allowing for additions and upgrades to many of the district's buildings.
While the bonds are not callable until 2016, Collins said it is the intention of the board to refinance a portion of them every January until the entire $54 million is refinanced in 2016.
Read the final bond pricing report on the most recent transaction.