Interest Rate Spike Halts D122 Working Cash Bond Sale
A spike in interest rates forced the NLSD122 Board to put a hold on plans to sell working cash bonds.
A spike in interest rates over the past couple of weeks forced the New Lenox School District 122 Board of Education to put a hold on plan to sell $5.6 million in working cash bonds. The plan was to authorize the bond sale at the regular Wednesday Board of Education meeting. Representatives from investment advisors R. W. Baird Investments told the board that interest had gone too high to follow through at this time with the sale of working cash bonds to fill in the gap in funding gaps due largely to the decline in state funding. If purchased as planned, the bonds would have a costly impact on the district, which is why R.W. Baird advisors along with District Business Manager Harold Huang decided to hold off. By the middle of last week, …
In this Article:
K. Little
10:32 am on Thursday, March 21, 2013
The Board can only do so much in a state that is in financial ruin. Illinois was recently downgraded with a credit ranking that is the worst in the nation. Heard discussion that this would result in higher interest rates whereby selling any kind of municipal bond would be impossible. Is this where we are at? Perhaps Illinois should look to all of its neighboring states and copy what they did to … more ›