The New Lenox Public Library District at the Sept. 16 board meeting refinanced $4,700,000 in outstanding bonds originally issued in 2001.
The “refunding” of this prior debt will save the district taxpayers approximately $249,000 over the life of the issue. This savings will be reflected in lower tax rates required to pay off the debt issue, according to new Lenox Library Director Kate Hall.
Prior to the sale, the New Lenox Public Library District’s credit rating was affirmed as an AA by Standard and Poor’s Rating. S&P cited their reasoning as:
"The stable outlook reflects their expectation that the district will successfully maintain very strong general fund reserves and additional liquidity outside the general fund. We do not expect to change the rating within the next two years, given our expectation that the district will maintain very strong reserves in accordance with its fund balance policy and the financial flexibility inherent in library districts. The district's participation in the deep and diverse Chicago metropolitan area economy further supports the rating."
President Louis Broccolo said, “This refinancing was very beneficial to the taxpayers of the library district. We were able to take advantage of a lower interest rate market than when the bonds were originally sold. This refinancing helps the taxpayers, but does not create any additional money for the library district.”
“We are very pleased that library taxpayers will see a savings with this refinancing. I commend the library board for their leadership on this transaction which reflects our district’s commitment to financial accountability,” added Hall.
For more information about the New Lenox Library, visit the organization's website.
Get news alerts and Facebook updates from these Lincoln-Way Patch sites: