The Community Unit School District 200 Board of Education voted to authorize interim transfers and approved a parameters resolution to issue up to $76,500,000 in general obligation bonds to pay for middle school capital projects approved by the Nov. 5, 2024 referendum.

The board approved a repayable interfund loan from the district’s working cash fund into the operations and maintenance (O&M) fund and a companion transfer from O&M into the capital projects fund to provide immediate cash for invoices related to middle school planning and early construction activity. District staff described the moves as a short-term, internal bridge to cover bills before the district completes debt issuance and receives bond proceeds.

The action followed a presentation from Bob Lewis of PMA Securities, the district’s municipal adviser, who reviewed how municipal bonds work, the district’s strong legal debt margin and a recent Standard & Poor’s AA+ rating that should reduce borrowing costs. PMA recommended a competitive sale and presented a tentative timeline: sale in early March 2025 with closing later that month and a board recap in April.

Why it matters: the transfers allow the district to pay architects, consultants and early contractor invoices now rather than waiting for bond closings; the parameters resolution sets borrowing limits, maximum terms and delegates officials who may finalize sale details.

Key details discussed: PMA and district staff reviewed federal tax requirements for tax-exempt bond proceeds, including the IRS expectation that 85% of proceeds be spent within three years and the “24‑month construction” spending benchmarks (10% in six months, 45% in 12 months, 75% in 18 months, 100% in 24 months). PMA explained that meeting those benchmarks affects whether the district must remit arbitrage earnings to the federal government and that the district’s strategy can include reimbursing itself for earlier expenditures to help meet the tests.

Board members asked about cash-on-hand after the transfers; district staff said the working cash balance was large (described in the presentation as near $30 million) and that reimbursements from bond proceeds would restore any temporary reductions before year-end tax receipts. The board also discussed the trade-offs between selling fewer, larger series of bonds versus multiple sales timed to construction draws and the cost and market risks of each approach.

The parameters resolution approved by the board provides authorization to issue bonds not to exceed $76,500,000, sets a maximum 15-year maturity for each series, and names delegates (administrators and board officers) who may finalize sale terms. The board also authorized the district to move up to $6,000,000 from working cash to O&M as a repayable interfund loan and to transfer monies from O&M to capital projects as needed to pay existing and anticipated invoices.

What’s next: staff and the district’s municipal advisor will finalize the official statement, pursue a competitive sale, update Standard & Poor’s and return to the board after the sale with full sale results and final terms.

Ending: Board President Long called for the roll and the resolution passed by roll call. The board scheduled a more detailed update on middle school capital phasing and financing for an upcoming Committee of the Whole meeting.