Addison board hears PMA outline for potential health, life-safety bond; asks about ISBE timeline and tax impact

At its Jan. 21 meeting, the Addison SD 4 Board of Education heard a presentation from district staff and financial advisor PMA about a potential health and life-safety bond issuance to address multiple infrastructure priorities.

Superintendent Dr. Sutton introduced PMA’s representative, Tammy, and a district finance presenter, who together outlined the bond-sale process, timeline and potential tax impact. Staff described the bond program as a way to fund prioritized safety and infrastructure projects across schools and emphasized that the board would later be asked to set a parameters resolution to authorize sale terms.

Tammy and district staff told trustees there is some flexibility to amend the scope of projects after approval if unexpected needs arise. "We're gonna go back to ISBE and say, this roof is shot unexpectedly," a district presenter said when discussing possible mid-term adjustments and the approval process.

Board members asked how long ISBE (the Illinois State Board of Education) typically takes to review requests and whether a parameters resolution and bond sale would need to be repeated if additional funds were needed later. PMA explained that the parameters resolution is valid for six months and that selling another series of bonds later would restart the sale process. On fees, PMA said cost-of-issuance expenses—including bond counsel, the rating agency and PMA’s fee—are paid from bond proceeds and that "Our fee is always calculated as a percentage of the principal amount of the bonds that are sold." (PMA representative Tammy)

Trustees also pressed staff on assumptions about tax exemptions used in the district’s draft tax-impact scenarios. A PMA speaker said the model includes the standard $8,000 homeowner exemption used in collar-county tax calculations for primary residences, and that other exemptions (veterans, seniors, disabled, etc.) were not fully factored because not all taxpayers qualify.

Board members asked staff to provide the proposed ask amount and a prioritized project list so committees and the board can refine what would be included in a bond measure. One trustee suggested the Buildings & Grounds committee meet to review the proposed projects and costs in more detail before the board takes additional action.

What’s next: staff indicated they will provide a prioritized list and further cost estimates; any parameters resolution or bond sale would return to the board for formal action.