New law allows ECC to help hold down property taxes

A new law will help Elgin Community College structure its debt and maintain its tax rate.

Signed last Friday by Gov. Pat Quinn, the bill will allow ECC and Lockport High School to issue 25-year bonds for building purposes, rather than the 20-year bond limit.

Lockport High School District 205, which has a short term $30 million goal of building an addition onto its East high school campus and a long-term goal of building a new school, approached state Sen. A.J. Wilhelmi about the legislation, Wilhelmi said.

Elgin Community College, which got approval from voters in April to do $178 million in construction work, also climbed on board.

The bill was originally supposed to cover a much broader range of school district, it was amended in May by the House to only include districts with specific projects in mind - ECC and Lockport.

The change will allow both districts more flexibility in holding down property taxes, and the choice of paying lower interest rates over a longer period of time.

According to terms of the legislation, 25-year bonds can be issued to ECC if several conditions are met:

Voters must approve the terms of the bond issue at a 2009 election. All bonds must be issued before April 2014. The proceeds of the bonds must only be used to accomplish the specific building purposes previously spelled out to voters.

Wilhelmi's bill was backed by Sen. Michael Noland, and Rep. Keith Farnham, both of Elgin.

It is effective immediately.

Other districts, Wilhelmi said, can come forward and request debt structuring help as well.