District 21 Reduces Levy, Saves Taxpayers Money

School District 21 has taken steps to provide short-term tax relief to district property taxpayers. These steps have resulted in a reduction to the tax levy over the next five years that includes a cut to the recently-adopted 2012 levy from a 3.45 percent increase on the 2011 tax levy to a 0.80 percent increase.

In addition, Moody’s Investor Services has reaffirmed District 21’s stellar Aa2 bond rating due to “healthy reserve levels; conservative management team; and manageable debt burden.” District 21 has achieved this despite the negative impact the fiscal difficulties of the State of Illinois have had on its operations. Said Moody’s: “The district’s overall financial profile is expected to remain healthy and stable for the medium term given the district’s internal reserve maintenance policies and history of conservative budgeting.”

District 21 achieved these tax cuts by restructuring current outstanding long-term debt. This reduced the Debt Service Fund tax extensions by over $8.5 million over the next five levy periods, including the recently adopted 2012 tax levy, by elongating the current debt structure.

In addition, the District is utilizing a funding method in the Illinois School Code known as the Debt Service Extension Base. This funding method will allow the District to issue up to $9.5 million in Working Cash Bonds. The entire amount of the proceeds of that bond issuance will go toward future capital improvements, including roof work at Whitman Elementary School, a kitchen expansion and flooring work at London Middle School, site work at various schools, and potential future security-related projects as approved by the Board.

— Submitted by School District 21