MENDOTA – District 289 will refinance an upcoming bond issue to help save some money for taxpayers. David Pistorius of First Midstate discussed the option with the board of education at the Nov. 15 meeting. With interest rates currently favorable, refinancing $3.35 million in bonds will save taxpayers an anticipated $90,000.

Taxpayers will also see a decrease in the levy. The tax rate is projected to be $2.63 per $100 of assessed valuation. That is just slightly lower than last year. The current levy is 104.9 percent of last year’s extension and will not require a public hearing.

However, Lee County residents will still have to make up for the tax error from this year.

The district is still waiting for the $188,000 owed from that error. Superintendent Kristen School said she and Dist. 280 superintendent, Jeff Prusator had a meeting with the state’s attorney. The districts were seeking reimbursement this year versus waiting until next year’s tax adjustment. However, they were told that would not be possible. What was agreed upon was for the projected interests to be paid now. District 289 should receive around $2,900.

Other funds that the district recently received was a check for $4,100 from Lee County’s new 1-cent sales tax, approved last year. The amount of the check is based on sales tax collected and the district’s enrollment of students from Lee County. School expects to start seeing monthly checks in varying amounts. She also asked the board to consider how they want to use the money.

The additional revenue prompted School to suggest they try again to pass the 1-cent sales tax in LaSalle County. “This would have a really minimal impact on people, probably most people wouldn’t even notice it, and the results are checks like the one we just received are going to come to our district,” she said.

School noted that potentially the district could receive $300,000-$500,000 annually from the 1-cent sales tax. “Think of what the district could do with that,” she added.

She also reminded the board that the use of the revenue could only go toward facilities, renovations, infrastructure, etc., and not teacher salaries.

The district still is waiting for money from the state. School told the board that between this year and last, the state owes the district over $330,000. She reasoned that the state is still fine-tuning the processing complexities of evidence based funding.

School has also been following a proposed homestead exemption increase. “I know to the general public it sounds great when there are exemptions or increases in exemptions, but what that means for school districts is we collect less money in taxes,” she said.

The impact of what is being proposed with these exemptions would be a loss in revenue for the district of $72,000.

The next regular meeting is scheduled for Thursday, Dec. 21 at 6:30 p.m. in the District 289 Education Center.