ECC approves tax levy, bonds
More than seven months after voters approved $178 million in bonds to fund new facilities and renovations at Elgin Community College, the college is finally getting around to borrowing the money.
The college board voted this week to issue $45 million in bonds to fund the first phase of the expansion and renovation process.
That process, according to the college, will include property acquisition, renovating two buildings on Renner Drive to create a multipurpose building, replacing roofs and starting work on three major projects: a new academic library, a new Health Careers Center and renovations for the Student Resource Center.
"That is going to be the home of all the health profession programs as well as the life sciences," Sharon Konny, vice president of business and finance, said of the Health Careers Center.
At 130,000 square feet, "It's going to give the health profession a very, very nice space," she added.
The college expects to break ground on the library and Health Careers Center in March, with both buildings slated to open in fall 2012, officials said.
A portion of the bond issue is comprised of Build America Bonds, a new program through the federal stimulus package that reimburses local governments one-third of the interest cost on bonds. College officials also expect to save on interest because Moody's recently upgraded the college's credit rating.
The college likely will issue a second set of bonds in the fall of 2010, then the final installment in 2011.
While Elgin-area residents will pay more in coming years to fund the borrowing, the amount of property taxes they pay to fund the college's daily operations will stay about the same next year.
The college board this week approved ECC's 2009 tax levy, which calls for the college to collect about $56.1 million in property taxes next year, up only 0.8 percent from this year's haul. The college is required to limit increases to the lower of 5 percent or the rate on inflation.
The college did not yet have an estimate of next year's tax rate.