New Lenox schools may restructure working cash bonds
By Erin Gallagher Correspondent February 11, 2013 9:56AM
Updated: March 15, 2013 12:10PM
In order to avoid a tax spike, New Lenox School District 122 is considering restructuring its working cash bonds.
Currently, the bonded interest tax rate is 56 cents, Business Manager Harold Huang told the school board recently. If the board does not act, the increase will climb from 84 cents in 2018 to $1.54 in 2023.
By restructuring, residents will see a smaller increase to about 90 cents in 2020 and it will remain that rate through 2031, avoiding a sharp peak, he said.
The cost for issuing the working cash bonds is $5.6 million in principal plus $2.95 million in total interest.
Should the board approve the restructuring, homeowners can expect a total reduction in property taxes over that 10-year period of $1,260, based on a $225,000 home.
The district’s financial advisers said this was the most efficient option. In order to flatten the tax hike any more, the district would have to extend the life of the bond substantially. That would increase the overall cost quite a bit, they said.
The issue is expected to be put on the agenda for the next regular school board meeting.