St. Charles D303 School Board moves forward with issuing $25M in long term debt

St. Charles School District 303 Board members voted at their Oct. 10 meeting to approve a resolution of intent to issue $25 million in long-term debt to fund construction projects planned for next summer.

Board members voted unanimously without discussion to approve a declaration of intent to issue two bonds, each with 20-year terms for a total of $25 million.

At a July 26 meeting, board members approved facilities changes that included the reopening of Fox Ridge as an elementary school, relocating transition programming and staff offices to Lincoln Elementary School and relocating early childhood care to the Haines building starting in the 2024-25 school year.

The repurposing will require a considerable amount of construction and remodeling at each of the affected schools that is scheduled for summer 2024.

The estimated cost of the changes is $14.6 million, with about $6.8 million needed to repurpose the Lincoln Elementary School facilities and $7.8 million to relocate early childhood care to the Haines building. A detailed list of the estimated cost breakdown can be found here.

The board gave the administration the authorization to move forward with the issuance of long-term debt, estimated to be $22.75 million, at the board meeting Sept. 11.

According to a memo submitted by chief operating officer Justin Attaway, the bonds will be issued in the amount of $25 million rather than the previously recommended $22.75 million to permit the flexibility to increase the proceeds (with no additional burden to taxpayers) should interest rates improve at the time of sale.

The board also announced it will hold a Bond Issue Notification Act hearing, which is required to provide an opportunity for the public to provide comment specifically about the bond issue. The BINA hearing is scheduled to be held during the Nov. 13 board meeting.

According to the debt issuance calendar, the district expects the bonds to be issued by July 2024.

District 303 staff previously estimated the debt will lead to a property tax increase of $6.15 per $100,000 of residents’ home values.

According to the resolution approved by the board, residents can bring the decision to a public vote by filing a petition with at least 4,803 voters’ signatures (10% of registered voters) requesting that the proposition be submitted to the voters of the district.

If such a petition is filed with the secretary by Nov. 13, an election on the proposition to issue the bonds would be held on March 19, 2024. If no petition is filed, the district will be authorized to issue the bonds.