By: Diane Benjamin
At last Tuesday’s meeting a representative from Stifel Public Finance made presentation. As reported yesterday this presentation was to inform the board about the status of bonds, when some would be paid off, and clear the way for new bonds for another building project.
If I hadn’t been at the meeting to get a copy of the report you wouldn’t know what it says. It sure isn’t posted on line anywhere.
You are probably told the bonds are costing between 3% and 5% depending on when they were taken out. Ask the School Board members running for re-election to explain this chart from the presentation. It shows the total outstanding debt and interest that will be paid:
After all payments: 37.69% interest!
How do you turn a bond at 4-5% into paying 37.69% interest?
Spend years paying interest only and no principal:
This is just one of the four bonds Tri-Valley holds:
This bond was taken out in 2018. Only interest is scheduled to be paid until 2029.
Government doesn’t operate like you would because the money they spend isn’t theirs. Bondholders love buying tax exempt sure bets, government only wants to make sure they can make the payments.
Tri-Valley has a smaller bond from 2019 they are paying principal and interest on. It will be paid off around the same time principal payments start on this bond.
It’s all about payments, not fiscal responsibility!
Below is the entire page from the Stifel presentation. You might have to download it to be able to read it.
Below is who is running for the School Board, it should be obvious who to vote for:
One more note: Since Tuesday’s meeting was at 5:00, taxpayers fed the Board and two guest speakers.
The Town of Normal did the same thing, see the debt chart in this story: https://blnnews.com/2021/09/30/normal-debt-visual/
See how the payments balloon in 2027? That’s because they have to start paying principal. They are throwing away your money on interest because Koos and company had an agenda and you to pay for it.
You are supposed to celebrate Normal’s progressive vision, just ask Kathleen Lorenz, Karyn Smith, and Andy Byars. The bonds will likely be restructured again because payments are all that matters. The total cost is immaterial.
You will be told this is normal and how things get done. High Finance! Perfectly normal. (Only because taxpayers don’t know)
One thought on “Tri-Valley Debt – Paying over 37% Interest!”
First of all, thank you for putting some light on the matters involved and a great example of why the press matters. Especially in a school setting. Really Tri-Valley? This type of board and administrative “leadership” is a great example of gross negligence that borders on criminal behavior. One doesn’t have to be a financial wizard to understand, and anyone with a credit card exercising their responsibility toward it would likely have to sit down to take a breath on this one. Ironically, it’s likely even taught in math class. It’s easy to see why it’s done and with intent; same for keeping things hidden. Of course, we will all hear about the schools going broke and needing more tax increases, unless of course payments default. Maybe default is best. It will cut off access to credit. If one thinks about how many children are in typical household, and the school taxes paid over a lifetime of home ownership, private schools become inexpensive, even if they bear the weight of those who cannot afford them (or the public taxes). Who should be holding these people accountable as trustees of public money and interests (pardon the pun)? Why do people leave Illinois? Let me think for a minute…..
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