How Will This Bond Affect My Property Taxes?
Glencoe currently has a “AAA” bond credit rating from Standard and Poor’s, which is the highest rating awarded. With this rating, the Village can take advantage of the historically low interest rates currently available in the municipal bond market.
The following schedule provides a projection of Village debt service payments based upon the issuance of $10.0 Million in 20 year bonds for the requested improvement programs described in these materials and scheduled to begin later this year.
Even with this additional proposed debt load, the Village’s total debt payment of $2,076,741 would remain substantially below that of our historical high point in 2009 ($2,799,734).
The impact to the individual property owner in the first year is $71 per $10,000 of total taxes, and thereafter the average cost over the projected life of the new debt (through 2034) is $100 annually per $10,000 total taxes*. Debt levels would remain flat through 2027, but thereafter would be substantially reduced as past debt is retired.
The Village Board, in its public deliberations on this subject, expressed a goal of minimizing the impact to individual property tax payers while maximizing the flexibility of the Village’s debt structure. Expected low interest rates will also provide a lower overall cost of these necessary projects.
*The foregoing amounts are estimates based on assumed interest rates, and may change to some extent based on actual market rates when the debt is issued.