LW D210 Debt Restructuring To Save Residents $21M: Officials

NEW LENOX, IL — The Lincoln-Way Community High School District 210 Board of Education at a special meeting Wednesday accepted a bid to reduce its remaining outstanding debt by $21.72 million, according to a news release from the district.

The bid came from J.P. Morgan to lock in a fixed interest rate of 1.76 percent. The new, lower interest rate will mean Lincoln-Way D210 residents will see a portion of their taxes collected for the district flatten out in 2024 and will be paid off in 2035, according to the release. The district has $130 million remaining in outstanding debt.

“To translate this to personal finance, think of a 30-year house mortgage," said Lincoln-Way D210 Superintendent Scott Tingley. "The payment is the same every month, every year. The District’s mortgage was set to increase each year, and to continue going up. A goal of the Board was to flatten out those payments in future years."

The debt restructuring can be attributed in large part to a newly issued credit rating of A+ from Standard & Poor’s, district officials said. The report from S&P highlighted the district’s strong tax base and financial reserves, as well as good financial management practices and policies.

District officials said the hope is to receive "Financial Recognition" status in the spring from the Illinois State Board of Education.

“We are continuing to do the work necessary to stabilize and preserve our financial situation,” Tingley said. “I want to thank the board, administration and staff for their outstanding effort in turning our financial situation around so quickly.”

To learn more about Lincoln-Way's road to financial recovery, visit the website.