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Good News for Tax Payers!

posted Feb 20, 2013, 1:42 PM by lzimmer@dist46.org   [ updated Aug 13, 2013, 4:47 PM by Web Master ]

On February 12, 2013 the Prairie Grove School District 46 Board of Education approved the abatement of the debt service levy for the seventh straight year.  The total savings to district taxpayers over this time period will be $3,092,350. This resolution will reduce property taxes in the District while maintaining the District’s excellent educational programs.

              The Board is now in the second year of the three-year phase in to reduce aggregate property tax levies by $.354.  The Board approved its second reduced levy in December 2012.  It is estimated that with the 2012 tax levy the Board will have cumulatively reduced the tax levy by $.29.  Between the 2011 and 2012 tax levies it is estimated that the overall tax saving will be $710,874.  These are permanent savings for District taxpayers that will accrue and compound every year in the future.

              In January 2013, the Board approved the complete pay-off of the debt certificates that financed the land purchase in 2007.  The total interest savings to the district is $988,984 over 14 years.  Since these debt certificates were paid for out of operating funds, the operating budget will realize a $285,000 savings.

              Also in January 2013, the Board refinanced the remaining bonded debt saving $919,623 in interest charges over a 10 year period.  The debt structure payments were leveled for the remaining 10 years as opposed to a ramped up structure previously.  Starting in 2017 this leveled debt structure will result in far less pressure on the budget since the payments won’t balloon in those years in the future.  It is important to note that the debt was not extended any further into the future.  Budget savings are achieved only through lower interest costs and a level debt structure.