April 23, 2024
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Lincoln-Way District 210 restructures debt to save $21 million

‘We are continuing to do the work necessary to stabilize and preserve our financial situation’

By Alex Ortiz
A Lincoln-Way Community High School bus leaves District 114 Elementary after class was dismissed Wednesday in Manhattan.

A Lincoln-Way Community High School bus leaves District 114 Elementary after class was dismissed Wednesday in Manhattan.

Lincoln-Way Community High School District 210 is moving forward with restructuring more than $130 million of debt to save significant money in the years ahead.

The board accepted a bid from J.P. Morgan at its meeting this week to lock in a fixed interest rate of 1.76%. The rate will reduce the district’s remaining debt by $21.7 million, according to a news release. The portion of taxes collected yearly to pay off this debt will flatten out in 2024 and be paid off in 2035.

Superintendent Scott Tingley said the district aims to flatten out its debt payments instead of having them increase, and at a much lower interest rate given the current economy.

“We are continuing to do the work necessary to stabilize and preserve our financial situation,” Tingley said in a statement. “I want to thank the board, administration and staff for their outstanding effort in turning our financial situation around so quickly.”

The district was able to restructure its debt thanks to a newly issued A+ credit rating from Standard & Poors.

Officials said the debt restructuring is a crucial step in recovering the district’s financial health. Over the past several years, the district has restored its fund balances and anticipates receiving “Financial Recognition” status from the Illinois State Board of Education this spring.