Last night, the Lincoln-Way Community High School District 210 Board of Education met to discuss options for restructuring more than $130 million of outstanding debt. “To translate this to personal finance, think of a 30-year house mortgage. The payment is the same every month, every year. The District’s mortgage was set to increase each year, and to continue going up. A goal of the Board was to flatten out those payments in future years,” said Dr. Scott Tingley, superintendent for District 210. Additionally, the District felt it could restructure this debt at a much lower interest rate given the current economy.
The Board accepted a bid from J. P. Morgan at last night’s meeting to lock in a fixed interest rate of 1.76%, which will ultimately reduce the District’s remaining outstanding debt by $21.72 million. The specific portion of taxes collected each year to pay off this debt will flatten out in 2024 and will be paid off in 2035.
This restructuring success can be attributed in large part to a newly issued credit rating of A+ from Standard & Poor’s (S&P). The report from S&P highlights the District’s strong tax base and financial reserves, as well as good financial management practices and policies. These practices and policies were adopted by the Board of Education over the past several years and have significantly improved the financial position of the District.
The restructuring of debt is a crucial step in recovering the District’s financial health. Over the past several years, the District has restored its fund balances and anticipates receiving ‘Financial Recognition’ status from the Illinois State Board of Education this spring.
“We are continuing to do the work necessary to stabilize and preserve our financial situation,” said Dr. Tingley. “I want to thank the board, administration and staff for their outstanding effort in turning our financial situation around so quickly.”
To learn more about Lincoln-Way's road to financial recovery, visit the website.