Schools

District 113A Approves Sale of $5M in Tax Anticipation Warrants

District 210 Board of Education to decide whether it will approve intergovernmental agreement for second time this year.

The Board of Education approved resolutions Thursday authorizing the sale of $5 million in tax anticipation warrants to meet its financial obligations next month.

The board voted unanimously to move forward with the sale. Board member Karen Siston was absent.

During a special meeting May 26, PMA financial representative Don Weber informed District 113A board members that all 25 banks approached about purchasing TAWs from the district declined.

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Weber said District 113A had "no other option" but to once again work with to secure short-term borrowing.

Late last year District 113A was confronted for the first time with the possibility of not being able to secure $5.5 million in TAWs borrowing to pay its bills in January. Both boards approved the deal in January, marking the first time that two Illinois school districts had completed an intergovernmental sale and purchase of TAWs.

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The $5.5 million, plus interest, is on track to be paid off by June 29, Weber said.

According to District 113A Treasurer Jay Tovian, the resolution approved by the board states that the district would receive the warrants no later than July 8, and would be expected to retire the debt by Jan. 31, 2012.

The District 210 Board of Education will hold a special meeting Monday to discuss the matter. Should they agree to move forward with the agreement, the board would approve resolutions at its regular business meeting June 13.


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