Collinsville recreation district to issue $1.43 million in new bonds

The Collinsville Area Recreation District will be issuing $1.43 million in new bonds so that it can make payments on its existing bond debt.

CARD’s debt on long-term alternate revenue bonds totals $21.3 million, according to CARD Executive Director Doug Erhart. He said the new bonds will be used to make next year’s payments.

“The process of issuing annual bonds to make the payments on existing alternate revenue bonds is what park districts must do to comply with the current law in Illinois,” he said.

More than $400,000 in taxable bonds will be issued with a 4.25 percent annual interest rate. In addition, more than $1 million in tax-exempt bonds with a 3 percent annual interest rate will be issued.

CARDS’s Board of Park Commissioners on Tuesday night authorized the issuance of the new general obligation park bonds with a 3-2 vote.

How will taxpayers be affected?

The taxes used to pay the new bonds will come from what is assessed this year, Erhart said.

“The way the bond was set up, it will have very little impact on what they pay in CARD taxes,” he said.

The bond tax levy for 2016 is $1.47 million. Erhart said the board on Tuesday established the levy for 2017 at $1.51 million.

Taxpayers will not see a change in their bills this year, but for the owner of a $100,000 home, districts taxes will go up $1.81 next year.

This story was originally published April 6, 2016 at 2:32 PM with the headline "Collinsville recreation district to issue $1.43 million in new bonds."