U-46 sells just over $81 million in bonds; administration flags change order at Kimball Middle

U-46 officials told the board Jan. 26 that the district completed the sale of its general obligation school bonds, series 2026A and 2026B, ‘‘totaling just over $81,000,000,’’ and that strong investor demand produced premium proceeds that reduce the district’s borrowing costs. Dr. Anne Williams, deputy superintendent of operations, said the two series attracted 10 and 14 bidders respectively and reflect the district’s double-A-plus credit rating.

The bond proceeds are intended to fund the Unite U-46 program of facility improvements across the district, including additions and renovations at Kimball and Kenyon Woods middle schools, the new Legacy Middle School in Elgin, Century Oaks and other elementary projects. Williams said project-level cost tracking shows the program remains below the $380,000,000 referendum estimate overall, but that Kimball Middle School is marked with a ‘‘plus’’ on the district’s cost-tracking slide and will require a formal change order to cover additional scope such as window and flooring work.

Board members pressed administration on whether investment earnings and contingencies would cover scope changes. Williams said the district has transferred interest earnings into the capital projects fund and is investing bond proceeds pending contractor payments, which will add additional interest revenue. She also said the district retains contingency in project budgets and will present a formal change order for Kimball at the next board meeting.

Operations staff described other risk-mitigation steps being taken after encountering site-specific issues on paving and ground stabilization elsewhere in the program. That includes increasing geotechnical soil borings at certain sites and, where appropriate, integrating limestone stabilization into base bids so that similar work does not require later change orders.

The issuance and project updates were presented as part of the board’s regular facilities and finance briefing; the board had no vote on the bond sale itself during the meeting. Administration said the outcomes will result in ‘‘meaningful savings for our taxpayers over the life of the bonds’’ and that the district will return with any formal change orders required for particular projects.