Moody’s Investors Service recently notified Community Consolidated School District 181 that the District has earned a AAA bond rating, the highest possible rating given to taxing bodies. Assistant Superintendent of Business and Operations Gary Frisch explains that a strong bond rating results in a lower interest cost on bonds issued by the District. Therefore, a lower tax levy is needed to repay the bonds. In Moody’s report, it is noted, “The District’s financial operations are expected to remain sound, supported by conservative budgeting practices and healthy reserves.”
In related news, the District 181 Board of Education unanimously approved a resolution authorizing the refunding of more than $32.5 million in bonds. Frisch notes that the purpose of bond refunding is to lower the overall long-term cost to taxpayers and create a more level structure for the bond term. Upon completion of the bond refunding, to be done in three phases, it is expected that the District’s debt service will be lowered by approximately $7.9 million over ten years.
