Last month, the library made a presentation to earn a bond credit rating from the rating agency Standard & Poor’s. We earned an AA rating, which greatly helped with investor interest in our bonds. Basically, the higher the rating, the lower the amount of interest paid by the district and the more attractive the bonds become to investors. On Thursday, June 6th, the library sold its bonds. The result was very favorable for the library district. The bonds will have a true interest rate of only 3.1% and a net interest rate of 3.4%, which is a rate far lower than anticipated.
What does this mean?
It’s all good news!
Our cost estimates at the time of the referendum anticipated higher interest rates for the bonds due to a projected lower credit rating and less favorable market conditions. Due to the higher rating, investor premiums paid for the library bonds, and the lower interest rate, the library will have funding to allow for a little more space than previously thought while simultaneously lowering the amount paid annually by taxpayers and shaving a year off the bond term. Currently, the library staff and Board of Trustees are working with architects to fine-tune the building design and make the most of our space for the community’s future enjoyment.
Additionally, the library was able to secure a competitive State of Illinois grant for $125,000 to fund a new roof on the existing building and a new HVAC chiller. This was a big win for the library and helps to make the funds from the referendum go even further.
This is a very exciting time for the library and our community. Thank you for your continued support.