The Bond County Community Unit 2 school board has approved a resolution issuing $2,136,900 in taxable bonds and another $2,118,900 in non-taxable bonds
The total is $4,255,800.
Superintendent Wes Olson said the non-taxable bonds were around $800,000 in Health Life Safety Work. The other side was working cash bonds. Olson pointed out that given the recent financial difficulties in the district, they have spent down their working cash.
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Olson said these actions are the first step in a two part plan to restructure debt. He said debt is structured in a way that the rate on the levy stays fairly constant. Homeowners should not notice a change in their tax bill.
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The district will be refinancing all of its 2008 bond issue and part of its 2013 bond issue. A total of $796,000 will be for life safety projects with the remaining money going into the working cash fund.
Tim King from King Financial said it is beneficial that two local banks, Bradford National Bank and First National Bank, have agreed to buy the bonds. This will allow the district to receive good interest rates.
The school board also made a loan of $163,400 from the working cash to the debt services fund, then abated the working cash fund to place another $537,358 into the debt services fund.
This action allows the district to place bonds proceeds into the working cash fund.