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District 128 committee reviews routine fund transfers and raises treasurer's bond to $11 million
Summary
Administration explained routine fund-transfer resolutions to move working cash interest to the education fund and to transfer $8 million from the education fund into operations and maintenance to pay for the LHS cafeteria project; the committee heard the treasurer's bond must increase to about $11 million under state rules.
District officials explained three routine fiscal items to the Facilities and Finance Committee on May 12: an annual indemnification agreement with Lake County, a resolution to transfer interest from the working cash fund to the education fund, and a resolution to transfer funds from the education fund into the operations and maintenance fund to cover cafeteria renovation costs. The committee also heard an adjustment to the statutory treasurer's bond for FY 2026.
Dan, the district treasurer, summarized the working-cash transfer: state law permits the district to transfer interest earned in the working cash fund into the education fund by board resolution before the end of the fiscal year. If a district waits past the fiscal year, that interest becomes a permanent balance that is more difficult to move. Dan said the transfer covers interest earned so far this year plus projected May–June interest.
On the education-to-operations-and-maintenance transfer, Dan said the district is moving money to pay for the Vernon Hills High School cafeteria renovation. "This is transferring $8,000,000 from our ed fund into O and M. It'll get auto, moved over into capital projects as it incurs the expenditures by the fiscal year end," he said. He described the legal process: a public hearing was scheduled and notices were posted to meet statutory requirements for fund transfers.
Dan explained the FY 2026 treasurer's bond requirement: state law sets the bond amount at 10% of monies on hand at the most recent fiscal-year end. The district’s June 30, 2024 financial statements showed roughly $100,270,000, which yields a required bond of approximately $10,027,000. Dan said the district rounded up the Treasurer's Bond to $11,000,000 for the coming year.
On the Lake County indemnification agreement, district staff described an annual agreement with Lake County to withhold permits from developers in unincorporated areas unless the district approves developer donations; in exchange, the county asks the district to defend it against lawsuits if it withholds permits. The administration described the agreement as an annual, routine contractual mechanism to help the district negotiate donor or developer contributions when large developments occur in the county.
All items were presented for committee review and scheduled to appear on the May full board agenda for approval. No funding transfers were completed at the committee meeting.
