Komarek board authorizes interfund loan and up to $2.525 million in tax-anticipation warrants amid county delay

Facing a likely delay in Cook County property tax bills and subsequent revenue, Komarek School District 94 officials told the board Oct. 14 that short-term borrowing is necessary to maintain operations.

Business Coordinator Mike Pustelnik explained that Cook County had not issued tax bills on the expected Nov. 1 schedule and that, as a result, the district may not receive tax funds until mid-January. To manage cash flow, the board unanimously authorized an interfund loan in an amount not to exceed $846,520 from the Working Cash Fund to the Educational Fund and approved a resolution authorizing the issuance of taxable Tax Anticipation Warrants (TAWs) not to exceed $2,525,000.

"We are going to use working cash and need the board to approve a transfer out of that fund to another," the minutes quote Mr. Pustelnik as saying while explaining the tax-anticipation warrants process. The motions were moved by President Chris Waas, seconded by Willie Merrill, and passed by roll call vote 7-0.

The minutes record that the county is required to disburse funds two weeks after the 30-day due date for the bills; with the anticipated delay, the district is preparing both an interfund transfer and the mechanics for TAWs to borrow until tax revenue arrives. The board's action authorizes the district to take interim measures rather than cut services while awaiting county collections.

Both actions were recorded in formal motions: the interfund loan motion authorizes non-interest-bearing monies up to $846,520 and the TAW resolution authorizes issuance of taxable warrants up to $2,525,000 to be sold to a purchaser authorized by the board.

The board later moved to executive session for personnel and student matters and reconvened before adjourning.