Citing historically low interest rates and the uncertainty of state funding, Glenview School District 34 tripled the amount of life-safety projects slated for the next two school years and plans to cover the tab with new debt instead of tapping reserves.
Under the latest plan approved Monday, over the next two years District 34 would issue up to $12.7 million of new bonds to pay for those projects and borrow an additional $6.9 million to refund bonds issued in 2005 and 2006.
School board members unanimously approved the resolutions, nullifying their June 15 resolution to submit $4.1 million of “urgent” life, health and safety-related construction projects to the Illinois State Board of Education, tap fund balances to pay for that work, and seek an architect’s “second opinion” for that project list.
The board approved the new life-safety projects list for submission to the ISBE and officially declared the district’s intent to issue up to $12.7 million in new debt for either the working cash or life-safety fund to pay for the projects.
More Top Picks Best Guitar Cables
A response from the ISBE should come within four to six weeks, said Eric Miller, assistant superintendent for business services. Once the state board decides how much of the list it will approve – thus allowing District 34 to use its life-safety fund to pay for them – then new debt to that amount will be issued from the life-safety fund, Miller said.
Any projects not approved by the ISBE will be financed by District 34 with new debt charged to the working cash fund, Miller said.
Under the new plan, District 34 would spend $6,661,242 in the 2016-17 fiscal year on life-safety projects at Henking, Lyon, Pleasant Ridge and Springman schools, and $6 million during the 2017-18 fiscal year on projects at Glen Grove, Hoffman, Westbrook and Attea schools.
Miller said that after the June 15 school board meeting, district officials considered the uncertainty of how the General Assembly and Gov. Bruce Rauner might alter the general state aid formula and/or approve a two-year property tax freeze. District 34 gets 87.5 percent of its revenue from property taxes.
Preserving the district’s financial reserves while taking advantage of currently low interest rates was deemed a more prudent course that will give the district more flexibility to deal with any Springfield-imposed changes, he added.
“I think it’s always good to take a long-term view when it comes to completing projects (like these),” Miller said.
A public hearing on the proposed bond sale is tentatively scheduled for October, which would set the stage for a final vote on the plan in November.
“This is the best path forward,” Superintendent Michael Nicholson said.
In other business, school board members unanimously approved the hiring of Steve Ruelli as District 34’s director of operations to oversee the Buildings and Grounds and Transportation departments starting in the fall. He is currently director of buildings and grounds at Skokie School District 731/2.
Jon Davis is a freelance reporter for Pioneer Press.