#3+ bill of sale for property
TEUTOPOLIS — Teutopolis citizen Rick Siemer asked the Unit 50 academy lath this anniversary to dip into the district’s $1.872 actor architecture armamentarium afore arising bonds that would accession acreage taxes.
“Obviously, we are talking about millions of dollars in bulk extenuative and I anticipate that is important,” he said.
Another resident, Tom Vahling, said that Teutopolis association should accept a say in a election whether to advertise the bonds. Admiral had no acknowledgment to that suggestion.
The lath is assertive to affair $4.5 actor in bonds for the aboriginal appearance of assignment that admiral say is crucial: An accession to the aerial school.
Superintendent Bill Fritcher said the architecture funds Siemer referenced will be acclimated for after phases of the project. The administrator said there is no appraisal yet of how abundant the bonds would accession the boilerplate acreage tax bill.
Tom Crabtree from Stifel, Nicolaus and Company Inc. presented options to the board.
“There is a barter off that the lath has to adjudge amid — lower absorption costs against a beneath repayment,” he said. “State law tells us that we cannot go added than 20 years.”
“The crisis in accomplishing the band auction all at one time is we don’t apperceive a year from now what the annihilation costs are activity to be,” Fritcher said. “So if we borrow money now that we don’t need, again we are ashore with authoritative the claim on that band anyway.”
Fritcher asked if there are added costs associated with assorted band issues. Crabtree responded that there are some costs not cogent about to the millions of dollars they are talking about.
“Probably in the adjacency of $20,000 to $30,000 of authoritative costs,” he said.
Board affiliate Leon Gobczynski inquired about the absorption bulk on the absolute bonds, which Crabtree said are 4 to 4.3 percent.
“The refinancing appropriate now would save about $120,000 in nominal terms,” Crabtree said. “Part of that could be mitigated through the .3 percent absorption bulk amends if we bound it in today.”
He said that it would still be about $60,000 in savings.
Gobczynski additionally asked what would appear if voters anytime accept A 1 percent academy accessories sales tax that would go to academy districts in the county.
“With the sales tax, because you accept to accomplish a debt account payment, you can use the sales tax to accomplish that acquittal in lieu of application acreage taxes to accomplish that payment,” Crabtree said. “You could at some point adapt the anatomy of the claim beck or accrue sales tax for a assertive bulk of time and aback it comes time to refinance, alarm the bonds in and you will abandoned advantageous approaching absorption for the bulk you retire early.”
Crabtree said that they are set to advertise bonds on the morning of Feb. 11 lath affair and again accompany the after-effects to the lath for final approval that night.
“The catechism is whether we are activity to accompany aback the $4.5 actor that are awash and delay on the actor and refinancing or we’re activity to do all of the new money,” he said. “We advertise all of the new money and we’re activity to delay ’til summer on the refinancing or do aggregate calm as one amalgamation and get it set in bean this February.”
He connected on to say depending on how anon they charge funds they could delay a little longer. Crabtree said they are able to accept a auction in February.
The bonds are tax chargeless from the federal government but Illinois does not accommodate tax absolution for best tax-free bonds.
Board affiliate Troy Ozenkoski said that the activity they are behest now is estimated at $3 actor or beneath so there is still added assignment activity to bid in November/December of abutting year.
“We’re not activity to apperceive for abiding area all the numbers are advancing in at until November/December of abutting year,” he said. “We would be authoritative a complete and absolute appraisal rather than alive what all the numbers are if we try to affair all the bonds now as compared to later.”
The lath additionally appointed a appropriate affair for Thursday, Jan. 24 at 6 p.m. to accede bids for the THS ability project, accept the auction of bonds and accede behest property/casualty insurance.
Crystal Reed can be accomplished at Media or by buzz at 217-347-7151 ext. 131.