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Health & Fitness

District 157-C Plans Keep Tax Levy Stable for 2013

For the past three years, the Frankfort School District 157-C Board of Education has held the line on the school district’s tax levy and is pleased to report that it plans to do so again this year.  Using a combination of debt re-financing, debt service fund abatements from existing reserves, and ongoing cost containment strategies, the school district will be able to ask taxpayers for about the same amount as the levy in 2010, 2011 and 2012, at around $29.5M.  This is in keeping with the Board’s desire to be fiscally responsible during the current challenging economic times.

At the November 18th Board of Education meeting, the Board approved the 2013 tentative tax levy and set December 16th at 7:10 PM in the Board Room at Grand Prairie School, 10480 W. Nebraska Street in Frankfort for the levy hearing and final levy approval.  The total levy for all tax capped funds is estimated to be approximately $25.63M, and after factoring in a debt service abatement of $250K to $300K, the expected non-capped levy should be about $3.87M, resulting in a total overall levy of $29.5M..

This year, the Board approved issuance of not to exceed $17,700,000 general obligation refunding school bonds for the purpose of refunding certain outstanding levies of the school district, and providing for the levy of a district annual tax sufficient to pay the principal and interest on said bonds.  This refinancing responds to recent declines in equalized assessed valuation by lowering and stabilizing annual debt service requirements, and it also achieves interest cost savings by refinancing some callable bonds and restructuring the new debt as serial bonds.  This financing plan will smooth out the district’s annual debt service at about $4.15 million per year for the next several years and save the district over $500,000 in interest costs, as it anticipates a second phase of restructuring occurring in early 2014.

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District 157-C just received notice that it has again earned the prestigious “AAA” bond rating from Standard and Poor’s Rating Services, which should result in lower bond issuance costs and lower interest rates during refinancing.  Only about 24 school districts in Illinois, and 72 school districts in the United States, have achieved this rating in 2013.  District 157-C has earned the “AAA” rating for the past ten consecutive years. The district’s thoughtful strategic planning and meticulous financial records provided Standard & Poor’s an essential component of their evaluation and contributed to District 157-C earning the top rating with a stable outlook.  The district maintains fund balance reserves that typically cover six to twelve months of expenditures in most funds.  Six months or more of reserves is a goal set by the State of Illinois as part of the Financial Profile Score, and it is also considered an adequate level of reserves by bond issuer credit rating agencies.

Per Assistant Superintendent for Finance and Operations, Curt Saindon, “The Board has sent a clear message to the administration and the community over the past three years that it is prepared to use a combination of resources and programs to do whatever it can to keep the overall tax levy as flat as possible for the benefit of the taxpayers in this school district.” 

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The Board and administration continue to look for ways to reduce costs throughout the district without affecting the quality of education.  Mr. Saindon additionally stated that, “We are extremely proud of the responsible and thoughtful approach our Board and administration have taken toward both financial management and strategic planning, and with an “AAA” bond rating and placement on the State’s Financial Recognition list we believe that our efforts have not gone unnoticed.”  The district’s financial information and a listing of its cost-cutting strategies can be found under “finance” on the “reporting” tab of the district’s website at www.fsd157c.org.





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