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Park Ridge CCSD 64 advisers outline plan to sell remaining referendum bonds, report lower-than-expected tax impact
Summary
District financial advisers told the board the district will sell the remaining tranche of referendum bonds in January, keep the district's AA1 rating, and expects lower net tax impact and roughly $2.75 million in interest earnings on bond proceeds; parameters resolution will return for board action in December.
District finance advisers told the Park Ridge Community Consolidated School District (CCSD) 64 board on Nov. 13 that market conditions make this winter a favorable time to sell the remaining portion of the district’s referendum bonds and that financial steps taken last year limited the tax impact on homeowners.
Liz (underwriter) said the district retains a strong AA1 rating and expects to meet rating agencies on Dec. 10. She recommended a January sale window—targeting the first weeks of January for marketing and a Jan. 26 closing for the remaining proceeds—because many bonds mature at the start of the year and investors reinvest those funds, helping demand.
Tammy Beckwith Shalmo of PMA Securities reviewed the referendum plan and a recent statutory change that the district used to its benefit. As she explained, “if you passed a building bond referendum on and after November ’24 … you didn’t have to count that bond issue … against your statutory debt limit as long as you held a public hearing before the sale of the bonds,” which the district did during the campaign.
Tammy showed the board the financial consequences of timing and structure: the district sold a first tranche earlier this year and expects to sell the balance—approximately $24,000,000—in early 2026. Based on current market analysis the estimated true interest cost on the remaining issue has fallen from a projected 3.30% to about 3.15%.
She also presented estimated investment earnings on bond proceeds. Tammy reported roughly $2,165,000 in earnings on the 2025 proceeds (at an average investment rate of ~4.17%) and about $580,000 estimated on the 2026 series (at ~3.67%), for combined earnings “just under $2,750,000,” subject to draw schedules and market movement.
Board members asked how interest earnings may be used. District staff replied that earnings on bond proceeds must be spent on construction-related work and cannot be transferred to operating uses such as salaries. “It’s still gotta be related to the construction,” staff said in response to a trustee question.
Next steps: staff flagged a parameters bond resolution draft in the board packet that will come back for action at the board’s December regular meeting; the advisers will meet with rating agencies on Dec. 10 and aim to market bonds in early January with a Jan. 26 closing.
Reporters’ note: these figures and dates reflect board materials and the advisers’ presentation on Nov. 13.
