The Collinsville Area Recreation District voted Tuesday to accept refinancing of the district’s 2004 bond issue if the savings is 3 percent or greater. If the amount of savings does not meet that threshold, the refinancing effort will not move forward.
Offers for refinancing the bonds have not yet been received, but the district anticipates saving about $30,000 per year, Executive Director Terry Wilson said. Stifel Nicolaus, hired by CARD to explore refinancing options, expects to know if the effort will meet the 3 percent threshold by the end of October.
The board also took public comment on the issuance of a $1.425 million General Obligation Park Bonds. The bond issue is legally required by the State of Illinois to pay debt on existing bonds. CARD has three existing bonds.
Park districts in Illinois do not directly levy taxes when a bond is issued. Instead, bonds are issued to pay outstanding debt, and taxes are levied to repay the general obligation bond amount, Commissioner Mark Achenbach said.
The exact amount of the General Obligation Refunding Park Bonds to be issued will not be known until the November board meeting, when the 2004 bonds refinancing effort will be completed.
Related story: http://metroindependent.com/2013/10/09/card-exploring-refinance-options-for-2004-bonds/1593/
