Grayslake CCSD 46 adopts FY25–26 budget; board hears $17 million first bond issuance plan

The Grayslake Community Consolidated School District 46 Board of Education on Wednesday approved the district's final fiscal year 2025'26 budget and heard details of a long-range facilities plan and a proposed three-issuance financing strategy beginning with about $17 million.

Chris Wildman, the district's finance presenter, told the board the budget shows a $1.7 million operating surplus after staff reclassified the timing of fund transfers and recorded items in the correct fiscal year. "This shift is not due to new revenues but to the timing of fund transfers and accounting for money that was already available in the debt service fund," Wildman said.

Wildman walked trustees through the budget development timeline, revenue drivers and expenditure priorities, saying the district kept an operating fund balance target of 25% to 30%. He described the district's operating funds (education/working cash) and non-operating funds (debt service, capital) and said the all-funds deficit in the final budget reflects planned capital spending and debt payments rather than an operating shortfall.

The board also received a long-range facility plan update showing an estimated total need of about $58.9 million across an 11-year horizon. Matt Vorden, a consultant from Wold, summarized priorities and a multi-year schedule that places roughly $17 million of work in FY2026 (safety/security, building envelope, HVAC and media center renovations at four schools) and additional work in later years. District staff reported that some summer work (new chillers, HVAC, biolas/boilers at several schools) came in under budget.

Liz (district finance presenter) provided a market update and described two financing options to match the capital plan. She said market conditions had improved after a Federal Reserve rate cut and that municipal bond yields had fallen, creating a favorable window for issuances. The district's recommended approach would issue roughly $17 million in late 2025 to fund one- to two-year priority projects, with subsequent smaller issuances in 2027 and 2030 as needed. The district plans to structure debt certificates so annual debt payments begin near $2.5 million rather than the full $3 million authorized by the limiting rate, preserving budget flexibility for future boards.

Liz said the second issuance could be sized and timed later to reflect actual project costs; issuing the full $3 million annual payment early would reduce interest expense but limit future flexibility if later projects cost more than expected. She also noted the district has call/refunding options in the future if rates decline substantially.

Board members asked about auditor changes, the $63 million temporary loan from Lake Zurich tied to abatement timing and health insurance trend assumptions for five-year projections. Wildman said the district changed auditors last year and that the accounting position required input from the new auditor; he said health insurance had historically been budgeted at about a 7% annual increase and staff would follow up with the cooperative for updated projections.

Why it matters: The budget approval and financing decisions set the district's spending and borrowing path for capital improvements and day-to-day operations. How the district sequences bond or certificate issuances and manages annual debt payments will affect operating flexibility and how levy proceeds are used over the next decade.

Votes at a glance

- FY2025'26 final budget: Approved (motion carried by roll call; no "no" votes recorded). The board approved the final budget as presented, authorizing staff to file required documents with the Lake County Regional Office of Education and the Illinois State Board of Education.

- Levy timeline/tentative schedule for levy work: Approved (motion carried by roll call; no "no" votes recorded).

- Additional finance-related approvals (consent items listed elsewhere): approved (see minutes).

Next steps: Staff will file the approved budget with state and regional authorities by required deadlines; return to the finance committee in November with updated five-year projections to support levy planning; bring a parameters resolution and rating-agency meetings in October with a proposed bond sale in November and closing in November if the board proceeds.

(Quotations and attributions reflect statements during the Sept. 17 board meeting.)