Palatine Dist. 15 approves borrowing $18.4 million for building improvements
Palatine Township Elementary School District 15 board members Wednesday approved the issuance of $18.4 million in bonds to help fund an estimated $119 million in required safety improvements.
The district originally proposed to borrow just over $27 million, but Michael Adamczyk, chief school business official, says the district will issue bonds for the additional $9 million next year.
"If the total issuance of the bonds is less than $10 million, they're bank qualified and we can get lower interest rates," Adamczyk said.
With banks being allowed to purchase the bonds, District 15 will have more of an opportunity to shop around for the best interest rates.
Adamczyk recommends the district pay the loan back over a 10-year period.
Under that repayment plan, the owner of a $250,000 house would pay an extra $15.58 each year. The owner of a house valued at $500,000 would pay around $31.16 each year.
Because the repairs are required by the state, District 15 could issue the bonds without voter approval.
Taxpayers have raised concerns over borrowing money for building repairs in past years, but no community members commented on the move at a Feb. 10 public hearing.
Critics of the borrowing plan had suggested the district use money in its reserve fund to pay for some of the building improvements, but school officials said they didn't want to spend that money with uncertainty in Springfield.
District 15 board member Zubair Khan says borrowing, instead to using reserve funds, puts the district in a good spot.
"I'm excited about what this financial positioning allows us to do in moving forward with the reserves we currently have," Khan said.
The $18.4 million will pay mainly for roofing, heating, ventilation and airconidtioning work, and plumbing work in 11 district schools.
The district will likely close on the sale of the bonds March 30.