Grundy Reporter

Refinancing $14 million in bonds with a lower interest rate will save the Morris Elementary District 54 school system about $1.5 million, according to Superintendent Shannon Dudek.

Dudek told the school board about the 2005 and 2011 A bond refinancing at its April meeting, WCSJ News reported. 

“So due to the lower interest rates, we have the opportunity to refund those bonds and apply the savings to our overall debt service,” Dudek said.

He also discussed an $800,000 bond resolution for the new administrative building, all of its interior equipment, technology, audio-visual and other needs.

“The good part about the alternative revenue bonds, we're actually using rental receipts from Shabbona and alternate revenue, like our (Tax Increment Financing) TIF surplus that we receive as partnering with the city,” Dudek said, according to WCSJ News.

TIF districts enable cities to capture local property tax increases resulting from a redevelopment project, the Grundy County Economic Development department said. This can fund public infrastructure, relocation expenses and more.

TIF districts allow communities to capture the increases in local property taxes (the increment) that result from a redevelopment project. Increment can be used to pay for a variety of eligible costs such as public infrastructure, training, relocation expenses, and much more.

The school district has a flexible repayment schedule on this bond. The intention is to pay back the bonds aggressively, but Dudek said they can adjust depending on what happens within their budgets. His primary goal is to not "put that burden back on the taxpayers,” he said.

The school board approved a tentative version of amendments to its fiscal year 2020 budget, according to WCSJ News. Dudek said changes always become necessary, and that this year's COVID-19 outbreak created unexpected expenses. The district also received revenue from the federal government as part of the CARES Act stimulus package.