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U-46 staff, bond advisor outline plan to finish Unite U-46 projects; recommend competitive sale for next bond tranche
Summary
District finance staff and bond advisor Raymond James briefed the U-46 Board of Education on options to complete the Unite U-46 facilities program, recommending a competitive sale for the next bond tranche while preserving a no‑tax‑increase debt‑service promise.
School District U-46 administrators and their bond advisor told the board on Tuesday that the district can complete the Unite U-46 facilities program using a mix of referendum bonds, district reserves and non‑referendum working‑cash bonds while keeping the district’s debt service stable for taxpayers.
Dr. Anne Williams, deputy superintendent for operations, summarized the funding sources used to date: referendum bonds (authorized $179 million in total), roughly $100 million in capital reserves previously used, and a planned working‑cash bond component originally estimated near $32 million. “We have the ability to issue working cash bonds in 2026 as well as 2028 to help fund some of the projects that are needed,” Williams said during the presentation.
Raymond James managing director Elizabeth Hennessy presented a market update and recommended a competitive sale for the coming issue, citing the district’s recent bond rating upgrade to AA+ and improved investor demand for municipal bonds. “We are recommending going for a competitive sale for this issue,” Hennessy said, noting the district’s increased frequency of issuance and its stronger credit profile.
Hennessy outlined practical tradeoffs: negotiated sales can provide flexibility in volatile markets and are useful when an issuer wants to ensure local access, while competitive sales can produce lower interest costs when market conditions are stable and the issuer has a strong rating. She described a tentative calendar: a November 3 board resolution of intent to issue working‑cash bonds (which triggers a 30‑day petition period), a public hearing at the board’s Dec. 15 meeting, a rating meeting in mid‑December and a potential bond closing in early February.
Board members asked about amortization length (the administration recommended a roughly 10‑year repayment for working‑cash bonds to preserve future capacity) and the district’s statutory debt limits. Hennessy walked the board through how the debt‑service extension base (a measure tied to Illinois tax-cap law) provides room to issue additional non‑referendum bonds without raising the tax levy paid by taxpayers.
No bond sale was authorized at the meeting. Administration will return with formal resolutions and parameters for board consideration; the non‑referendum schedule described would include a 30‑day petition period during which 10% of registered voters could force a public referendum on the working‑cash bonds if they submit a successful petition.
