Indian Prairie District 204 to reissue bonds, save $10.5 million

Taxpayers in Indian Prairie School District will save $10.5 million as the district refinances bonds by issuing new bonds at a lower interest rate.

The school board authorized the process of refunding up to $66 million in bonds to save $10 million in interest payments.

Jay Strang, chief business official, said previous refunding of general obligation bonds by the district has saved taxpayers more than $25 million.

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"It's been this board's and previous board's charge to try and receive as much money from the bond refunding as possible," Strang said. "This is another one of those great opportunities to save our taxpayers money."

For average homeowners with $300,000 homes, the refunding translates to roughly a $26 a year savings on their tax bills, Strang said.

The district's financial adviser, Robert Lewis, who is senior vice president of PMA Securities Inc., likened the savings to homeowners who refinance their mortgage at a lower interest rate. The big difference, he said at a September meeting, is that while a mortgage can be refinanced any time, municipal bonds can only be redeemed at certain times — known as call dates — before maturity.

Of the district's debt, $59.2 million in 2007 bonds and $5.4 million in 2009 bonds are callable in December.

Lewis said the average interest rate District 204 pays on the 2007 bonds is 4.75 percent and 4 percent on the 2009 bonds.

Tribune Content Agency
School bonds Illinois
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