Board passes bond resolution

By on November 13, 2009

by Susan O’Neill
KANELAND—The Kaneland School Board passed a resolution on Tuesday, authorizing the district to issue general obligation capital appreciation and school building bonds, as well as to levy the property tax to pay it back. These bonds represent the remaining $10 million of bonding authority granted the district through the 2008 referendum.

According to Kaneland Assistant Superintendent Dr. Julie-Ann Fuchs, the downturn in the economy impacts the district’s ability to keep the tax rate constant. As more information becomes available, Fuchs said the administration will work with the district’s bond advisor to determine the appropriate time and amount of bonds that will need to be restructured in order to maintain the tax rate pledge.

The formal recommendation will be given to the board in January or February. Although the tax rate will go up, no matter how the debt is restructured, bond advisor Linda Matkowski said she does not recommend a panic restructuring.

“Eventually the equalized assessed value will start to recover,” she said. “The slow-down in building gives you some breathing room.”

One thing that will help is that the district will retain the AA rating it received by Standard & Poor’s in 2008.