RPC approves $2.5 million Head Start budget amendment to address callable loans

The Regional Planning Commission voted to approve a $2.5 million budget amendment on Aug. 23 to facilitate two transactions tied to Head Start facility leases.

Tammy told the commission that RPC leases two Head Start facilities from the Illinois Community Action Development Corporation (ICADC). She said one bank loan on the West Champaign facility is callable in October and its interest rate will increase from about 4.5% to something in the 7.5–8% range if left in place; that change would raise annual program costs by an estimated $34,000. Tammy recommended using unrestricted Head Start funds to pay that bank loan in full to avoid the higher rate and to maintain rent levels below market, which is required by federal program rules.

Tammy also recommended using unrestricted Head Start funds to pay off the Urbana facility loan in full; doing so would reduce rent costs for the program, allow the program to capture in‑kind rent contributions sooner, and free facility funds for other needs, including potential purchase of a new facility.

Board discussion touched on the source of the funds (unrestricted Head Start funds in fund balance) and whether paying the loans would delay other agency plans; staff said the funds are in fund balance and that the transaction would not force postponement of other initiatives. Commissioners asked about loan maturities and the callable date; presenters said one loan is callable in October and maturity dates vary (one noted maturity near 2044 for a separate note).

The commission moved and seconded the recommendation; the motion carried on a voice vote. The amendment was identified in the packet as 2024‑845 and will be reflected in fiscal documents and program reporting.

Next procedural steps include executing the transactions through ICADC as needed and reflecting the amendment in the final fiscal year records.