Taxpayers will be paying better than 10 percent less than anticipated for renovations to the Deerfield Public Library because of the 1.8963 percent interest rate on the bonds sold Monday to pay for the balance of the work.
Initially, the Library anticipated an average cost of $88 per year from each taxpayer to fund the project but now forecasts an amount between $76 and $79 per year, according to an email sent today.
The original forecast to pay for the projected $11,775,000 bond issue was based on the costs generated from the initial $5.9 million securities offering a year ago. When the Village sold the remaining $5,875,000 Monday, the Library was able to reduce its estimate, according to Library Executive Director Mary Pergander.
Though the Village Board of Trustees increased the Library’ portion of the real estate tax levy above the 2011 level Monday at the request of the Library Board, Lake County will only bill what is needed to pay the bonds to the homeowners’ tax bills, not the entire amount, according to Pergander. The full amount planned for operations remains unchanged.
“There are two lines on the tax bill, one for operations and one for the improvements,” Pergander said. “Lake County will only charge what needs to be paid.” The additional amount originally budgeted will never reach a tax bill.
The decrease in debt service, which will benefit not only the amount people will pay for the Library but the new water reclamation plant as well, was the result market forces and a diligent effort by the Village to maintain its creditworthiness.
“It’s our Aaa bond rating and it’s just because of the market,” the Village’s Acting Finance Director Eric Burk said. “They (rates) have been low, historically low.”
The project is progressing on time and on budget, according to the email. The projected opening date is in June. Library Board President Ken Abosch is pleased with the circumstances.
“We are all very proud and pleased that we are able to give Deerfield taxpayers a newly remodeled and expanded Library for less cost per year than we had anticipated,” Abosch said in the email. “And, of course, we thank the Village of Deerfield for making the arrangements for the sale of these bonds on our behalf.”