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Palatine Dist. 15 board OKs loan application for building improvements

The Palatine Township Elementary School District 15 board Wednesday approved the application for a $28.5 million low-interest loan to help pay for a portion of the district's $119 million in required building improvements.

The money obtained through the Qualified School Construction Bond program would be used to fund priority construction projects deemed mandatory by the state. These include roof replacements, emergency lighting and the replacement of old copper piping, fire alarm systems and HVAC systems.

Chief School Business Official Michael Adamczyk says District 15 will still have to issue bonds to pay for the mandatory repairs, but taxpayers will pay less in the long term with low- or zero-interest bonds.

A chart from last fall depicting the repayment plan showed the impact of issuing the bonds on a $250,000 house: $17 for the 2015 tax year, increasing to $58 by 2023 and $68 by 2034, for a total of $937 over the 20-year repayment period.

The Qualified School Construction Bond program was set up by the federal government in 2009 as part of the American Recovery and Reinvestment Act. Illinois school districts excluding Chicago have until Friday to apply for the available $495.6 million in no- to low-interest loans.

The total burden on taxpayers would be lowered with the Qualified School Construction Bonds, Adamczyk says.

"The bottom line with this program is the government pays the interest," Adamczyk said. "It saves taxpayers money because they're not paying for the interest."

District 15 can issue the bonds without voter approval because the repairs are mandatory.

Adamczyk says the Illinois State Board of Education will likely decide which districts get the low-interest bonds and distribute them in the next few months.

"They're looking at a quick turnaround," he said. "The construction projects have to be shovel-ready."

Thompson says plans to pay for the rest of the required building improvements have not yet been determined. But a facilities plan committee made up of about 20 people will meet Jan. 20 to discuss the plans and eventually make a recommendation for how to proceed with the construction and payment. The committee includes residents, parents and administrators.

District 15 looks again at borrowing millions

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