Updated: December 11, 2012 12:26PM
BURLINGTON — The Community Unit School District 301 board approved a resolution this week to reissue a portion of its general obligation bonds in the hopes of getting a lower rate of interest.
The interest rates in 2006 when the bonds were originally purchased were higher than current interest rates. The bond amount to be reissued should not exceed $20 million.
“We are hoping to lower the district’s borrowing cost by .6 to .7 percent,” said District 301 Assistant Superintendent Greg Rabenhorst.
The district will know the details when the bonds are sold, officials said.
“This will result in lower debt service cost to both the district and taxpayers,” said Tammie Beckwith Schallmo, managing director of public finance for PMA Financial Network, Naperville. “The adoption of this resolution allows this to happen.”
She said the goal is to have the bonds on the market by the middle of next week.
“We have had investors who said they are interested in the bonds,” Schallmo said. “The feedback from investors has been positive.”