Breaking News Bar
updated: 9/23/2013 10:33 PM

District 128 to refinance construction loan

hello
Success - Article sent! close
  • Libertyville-Vernon Hills Area School District 128 officials on Monday voted again to refinance part of the loan that funded the construction of Vernon Hills High School more than a decade ago.

       Libertyville-Vernon Hills Area School District 128 officials on Monday voted again to refinance part of the loan that funded the construction of Vernon Hills High School more than a decade ago.
    Paul Valade | Staff Photographer

 
 

With interest rates at favorable levels, Libertyville-Vernon Hills Area School District 128 officials on Monday voted to again refinance part of the loan that funded the construction of Vernon Hills High School more than a decade ago.

Board members also discussed using savings to pay back at least some of the $17.9 million principal of the loan. It made no final decision on that aspect of the financial plan and set a second talk on the matter for a committee meeting next month.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

Refinancing could save the district more than $700,000 in interest payments. Paying the loan off could save much more, depending on how much officials would opt to withdraw from savings in the bank.

"Either way we go, we're going to save some money," said board member Jim Batson, who leads the board's facilities and finance committee.

The district borrowed $49.5 million to pay for the Vernon Hills High project and for improvements at sister school Libertyville High. Vernon Hills High opened in 1999.

The school board refinanced a chunk of the loan once already, in 2004, saving $1.4 million in interest payments, Assistant Superintendent for Business Yasmine Dada said.

Bond interest rates now are at "historically low" levels, Dada told the school board Monday, which makes it a good opportunity to refinance again.

Four annual payments remain, each in December. After the next payment, $17.9 million in principle will remain, Dada said.

The loan is set to be paid off in 2016.

Unlike a traditional refinancing on a home mortgage, the length of the loan won't be extended, Dada said.

Board members were divided on their financial options.

Alex Delli Paoli backed the refinancing option but said he opposes any effort to use savings to pay off part or all of the loan. He cited the state's financial instability and the pension crisis as reasons to hang onto cash.

Other board members said the possible savings are too significant to ignore.

The finance committee will discuss the proposals again when it meets at 6 p.m. Oct. 15 at Libertyville High.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.
    help here