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Dixon USD 170 board approves $4.5 million working-cash bond sale to Sauk Valley Bank
Summary
The Dixon USD 170 Board of Education voted to approve a resolution authorizing up to $4.5 million in taxable general obligation working-cash bonds; Sauk Valley Bank won the award with a bid reflecting a 4.8% interest schedule, and the district expects to deposit the proceeds into its working cash fund.
The Dixon USD 170 Board of Education approved a resolution authorizing the issuance of taxable general obligation working-cash bonds not to exceed $4,500,000, awarding the bonds to Sauk Valley Bank following competitive bids.
Board members asked for and received details about the bid results and how proceeds will be used. District staff reported that three bidders participated, Sauk Valley Bank submitted the winning bid at an interest schedule presented as 4.8%, and the district will issue the full $4,500,000 in bond principal. Staff told the board the net proceeds expected to be deposited in the working cash fund are approximately $4.34 million (the difference reflecting issuance costs and fees), and that issuance expenses are built into the bond proceeds rather than paid separately from district operating accounts.
District officials said the working-cash proceeds will support planned initiatives over multiple years, including one-to-one device initiatives, capital projects, social-emotional learning work and curriculum updates. They emphasized the intention to present future, itemized requests to the board before transferring working cash into other funds or spending it for specific projects.
Board policy 4.4 (incurring debt) and the updated board resolution reflecting the bid terms were provided to members in the packet. Stifel served as the district’s financial advisor during the sale and provided amortization/levy tables showing the expected levy impact to cover principal and interest. The successful bidder’s FDIC documentation was also included in the board materials.
At the conclusion of discussion the board took a roll-call vote approving the resolution. The chair called the roll and the members recorded affirmative votes, and the resolution was approved.
