Using the above formula, everyone in the system will pay the same rate for water. A 30-year life is projected for the bonds. These bonds can only be issued with community support as a referendum must be held and voters have the opportunity to speak. The referendum will be held in November. GO bonds offer the lowest cost financing available to taxpayers.
Interest rates are lower than revenue bonding.
GO bonds are paid through property tax, which is one of the few taxes which is deductible from federal income tax. In a growing community such as Gurnee, the impact diminishes as the tax base rises. Today we are in the midst of a building surge. With this in mind, it is possible to project a continued growth in our base and to envision a doubling within the next 15 years. The recommendation to use GO Bonds is bases on its being the least costly financing.