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Northbrook SD 28 approves parameters to issue up to $80.175 million in school bonds
Summary
The Northbrook SD 28 board adopted a parameters resolution authorizing up to $80,175,000 in general obligation bonds to fund a new Metobrook school and renovations at Greenbryer, Westmore and North Junior High, after a presentation recommending phased bond sales to limit debt-service impacts.
Tammy Beck of PMA advised the board that the district's remaining referendum authority and project draw schedule suggest a three-series bond issuance could minimize net borrowing costs while preserving interest-earnings treatment. Beck reviewed the district's current debt-service filings and presented scenarios comparing two-series and three-series sale structures, concluding that under current market conditions a three-series approach (selling $65.5 million in May 2026 and the balance in January 2027) was the administration's recommendation.
The presentation highlighted that levy-year 2025 payments were locked in from a prior sale and that, depending on rates, future annual debt-service could average less than the first levy year. Beck also noted a market break-even sensitivity (roughly 0.21 percentage-point movement between May 2026 and January 2027) and that delays to the junior-high construction draw schedule (now expected to finish in fall 2028) affect the timing advantage of staggered sales. She described plans for a competitive sale targeted for May 11 and the district's intent to monitor conditions and be flexible within a six-month parameters resolution.
Following board questions on interest-rate risk and the competitive-sale process, the board considered a parameters resolution that would authorize the issuance of not-to-exceed $80,175,000 general obligation bonds (Series 2026) to fund the approved referendum projects and to levy a direct annual tax sufficient for principal and interest. The motion to adopt the resolution was moved, seconded and approved by roll call.
What happens next: administration plans to seek a credit rating update, proceed with a competitive sale in May for the initial amount the board intends to issue, and return to the board if market conditions suggest accelerating or postponing the remainder of the authorization into an earlier closing.
