GENEVA – The Geneva District 304 school board voted this week to abate nearly $6 million to lessen the tax burden on the community, officials said.
The district has directed more than $15 million in excess money from its education fund to reduce the debt service tax rate, as much as 0.26, officials said. The district takes money levied in an earlier year and informs the county clerk to apply it to future tax bills.
The move this week was part of keeping the district’s debt service payments flattened, so taxpayers will not see a big increase, officials said.
Using abatement is one of three strategies financial advisers have recommended the district use to reduce its $301 million debt.
If they did not take action, the annual loan payments would go to nearly $25 million by 2018, which officials want to avoid. The district also does refunding, which is restructuring debt to get a better interest rate.