Libertyville taxpayers get a little break

It's not much, but Libertyville officials want taxpayers to know they saved them some money.

Last week, the village board agreed to refinance a bond issued in 2000 for park improvements. Because the new rate to be paid to investors is lower, about $165,000 less will have to be paid to investors over time.

Bond refinancing is not a new or unusual practice for municipalities. But in many cases, the bonds are paid by the village revenues, such as sales tax.

But others, like the $1.655 million bond issue used to pay for Adler Park pool improvements are paid through property tax, which is levied every year. In that case, an analysis showed the village could save money by refinancing.

As a result, the original interest rates varying from 5.2 percent to 5.7 percent on that bond issue dropped to 2.5 percent to 4.2 percent. The rate varies depending on the year the bonds are payable to investors through 2019.

"We won't levy as much and we won't pay out as much," said Finance Director Pat Wesolowski. "Our levy on this bond will be reduced."

Village officials didn't have a specific figure but agree the debt service on this bond is a very small part of an individual property tax bill. Still, with sales tax revenues dropping and budget cuts expected, it's a sliver of good news, they contend.

"Every little bit helps, right?" Wesolowski said.

The village had planned on refinancing in October but found the economic scene too volatile. At that time, offerings from other communities weren't getting bids or not realizing expectations, Wesolowski said.

In the current budget, the village will pay about $4.6 million for debt on various bonds. The total budget is about $55 million.

"We have two bonds we levy property tax on and this is one of them," Wesolowski said. "It truly will be a savings to taxpayers."