Homewood Makes Final Bond Payment, Is Now Debt-Free: Village

HOMEWOOD, IL — Homewood officials announced the Village is debt-free after making a final bond payment on Tuesday, Nov. 14.

"The huge feat is due to exceptional fiscal responsibility of leadership and conservative spending of taxpayer dollars," officials said in a release.

Since operating with what they describe as a fiscally conservative budget, officials said Homewood has been able to attract top-tier development such as Wind Creek Casino, The Hartford, Homewood Brewery, and many other retail businesses.

The Village of Homewood was issued a General Obligation Bond on Sept. 22, 2020 in the amount of $1,790,000. Since being issued the bond, the Village has made on-time and bi-annual payments in the amounts of $642,324 in 2021, $644,850 in 2022, and $534,770 in 2023 at an interest rate of .85%. The bond funds were issued to fund Capital Improvement Projects.

"We are celebrating an exceptional accomplishment," said Village President Rich Hofeld. "I believe very few communities can say they have zero debt.

"I am very proud of our hardworking staff and the Village Board."

Homewood is limited to the amount of debt that can be issued without referendum since being a non-home rule community. Debt payments are allowed to be included in the annual tax levy where a portion of property taxes received by the Village can be used to pay the principal and interest payments. The Village did not seek another issued bond in the fall 2023 due to having a healthy fund balance available which could be used for future capital projects. Since no bond was issued in 2023, no debt payments will be added to the 2023 tax levy. This is a reduction of over $500,000 which results in a small, but relevant savings to our tax paying residents.

Due to positive audit results over the last two fiscal years, the Village of Homewood Board of Trustees voted to increase the minimum amount of funds to remain in unassigned fund balance from no less than four months of operating expenditures to no less than five months of operating expenditures.