Lake Zurich restructures TIF debt

Lake Zurich village officials say they'll be able to pay the tuition reimbursement to Lake Zurich Unit District 95 on time in September, after delivering last year's payment five months late.

The village reimburses District 95 for tuition from students in a special tax increment financing district for downtown redevelopment. Last year's bill was $532,000.

Tuesday, the village board voted to issue four series of bonds, restructuring a $25 million debt.

"They restructured the debt so the current revenue, $1.3 million, for the TIF will be enough to cover the school district payments," Village President John Tolomei said.

Village administrator Bob Vitas is confident this year's payment will be on time.

"We have shored up the leaky faucet of the TIF ... for the next four to five years," Vitas said.

He said the new bonds will also serve to make any outstanding principal and interest payments to previous bondholders.

Vitas said if there is no development in downtown Lake Zurich, the village will find itself in the same position again in four or five years.

Lake Zurich is also seeking to extend the life of the TIF, giving it more time to pay off the debt. The extension would be for a minimum of 12 years and would require General Assembly approval.

District 95 and other taxing bodies would continue to miss property tax revenue within the TIF for its extended life. School board President Kathy Brown said the necessity of an extension and its impact on the school district is still unclear to her board.

"It's my understanding that the board may be requesting to have the village of Lake Zurich bond council give our board a presentation so that we have a clear understanding of all the information involved," she said.

Vitas said the bonds will be available soon in $5,000 increments. Anyone, including private individuals, can buy them.