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Committees review Lake County indemnification, fund transfers and $11 million treasurer's bond ahead of board vote
Summary
District 128's facilities and finance committee discussed the annual Lake County indemnification agreement, transfers between the working-cash, education and operations funds (including an $8 million transfer related to the cafeteria project), and the required FY26 treasurer's bond amount, which staff proposed at $11 million.
At the May 12 facilities and finance committee meeting, district finance staff reviewed several routine but legally specific finance actions that will be placed on the full board's May agenda for formal approval.
Staff explained the annual Lake County indemnification agreement, under which the county can withhold permits from developers in unincorporated areas unless the district signs off, in exchange for the county asking the district to indemnify the county if it is sued over that withholding. Staff described the agreement as a regular annual authorization the district carries to support negotiations with developers when needed.
The committee also reviewed two routine fund transfers: an annual transfer of interest earned in the working-cash fund into the education fund and a transfer from the education fund into the operations and maintenance (O&M) fund to pay for the Vernon Hills cafeteria project. Staff said the education-to-O&M transfer is needed so the district can pay project costs now; the O&M balance will automatically move to capital projects as expenditures are recorded. Staff identified the transfer amount for the cafeteria work completed so far as $8,000,000.
Finally, staff summarized the FY26 treasurer's bond requirement. Under recent statutory change, the bond amount must be 10% of monies held as of the most recent June 30 financial statement. Using the district's June 30, 2024 balances, staff calculated the minimum bond and proposed an $11,000,000 bond to ensure compliance.
None of the items required immediate committee action; staff said each would appear on the full board agenda for approval. Committee members asked clarifying questions about the mechanics and legal constraints of fund transfers and about the timing of public notice required for some transfers.
Staff directed: district finance staff will prepare the formal resolutions, legal notices and board agenda items for the May board meeting and will make the documentation available to trustees.
