DEFEASANCE OF BONDS/LOWER TAX RATE
HC WCID 110 has issued a total principal amount of $54,035,000 in bonds to finance the construction of the water, sewer and drainage facilities to serve the land within its boundaries.
On September 1, 2018, HC WCID 110 made its scheduled principal and interest payment on such outstanding bonds, which reduced the total principal amount of outstanding bonds to $18,745,000. In addition, the Board of Directors of HC WCID 110 recently approved using surplus operating and debt service revenues to redeem an additional principal amount of $2,595,000 in outstanding bonds before those bonds were scheduled to mature.
By redeeming such bonds before their stated maturity, the taxpayers of HC WCID 110 will realize a total of approximately $619,000 in interest savings. After the scheduled debt service payment on September 1, 2018 and the early redemption of $2,595,000 in bonds, HC WCID 110 now has $16,150,000 in principal amount of bonds that remain outstanding. But the good news doesn’t stop there because the Board of Directors of HC WCID 110 recently voted to lower the tax rate from $0.43 per $100 assessed valuation to $0.40 per $100 assessed valuation for the 2018 tax year.
If property values within HC WCID 110 continue to grow over the next ten years the current Board of Directors' vision is to redeem additional bonds prior to their maturity and have all outstanding bonds paid off within ten years while still being able to lower the debt service tax rate gradually.