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Village Vision News

District can’t retire bonds earlier than 2018

Thursday, January 26, 2012

Maroa-Forsyth School District is unable to make any early payments to retire its 20-year construction bonds for the grade school before Dec. 1, 2018, because of a resolution adopted at the time the bonds were issued. Trustees had asked the district to commit to retiring the bonds early as a way of ensuring an early and automatic end to the 2007 half-percent sales tax increase used to build the new grade school in Forsyth. The district’s response came three days prior to the Jan. 17 Village Board meeting.

A joint letter from Superintendent Mike Williams and school board President Jimmy Peck addressed the following issues:

  • The district pledged to adhere to the tenets of the bond resolution after Dec. 1, 2018, and “…to make every attempt possible to pay the bonds off early following the process outlined in the Resolution to issue the bonds as long as it does not adversely affect the District’s ability to property educate the students of Maroa Forsyth.” The bonds will be retired in accordance with that schedule assuming that the growth in sales tax revenue anticipated in the retirement schedule is met, according to district officials.
  • The district said it will comply with the Village’s request for quarterly progress reports on the repayment schedule but advised that a semi-annual payment schedule was adopted as part of the original resolution, and that there will be little change in the corresponding quarterly report since the semi-annual payment report was given to the Village in December.
  • The district addressed the potential of any future Village-owned land purchases for the purpose of building a new middle school with the statement that it had “…chosen not pursue this option at the current time.” The Village was informed that the district will explore alternate locations for this future project and will approach “…adjacent land owners, developers, and the City of Maroa.” Last year, the district had approached the Village about the possibility of purchasing Village-owned land near the grade school for a possible middle school.

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