District 113A Fails to Secure Short-Term Borrowing from Banks, Will Begin Talks with District 210

For the second time in less than a year, will need to work with to secure short-term borrowing to pay its bills.

During a special meeting of the District 113A Board of Education on Thursday night, PMA financial representative Don Weber informed board members that all 25 banks approached about purchasing tax anticipation warrants from the district have declined.

In order to meet its financial obligations on July 8, the district needs to borrow $5 million—the second round of TAWs this year, Weber said.

"At this point, you have no other option [but to go to the high school]," he said.

Late last year, District 113A was confronted for the first time with the possibility of not being able to secure $5.5 million in short-term borrowing to pay its bills in January.

At the suggestion of PMA, District 113A Supt. Tim Ricker and then-board President Lisa Wright approached District 210 Supt. Sandra Doebert and board President Beverly Marzec about the possibility of entering into an intergovernmental agreement to secure the loan.

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

District 113A Board President Mike Aurelio asked Weber how likely it would be that District 210 approve another short-term borrowing agreement.

"I would say that having worked with the high school board last year, I think you have a very understanding board in the same community that recognizes you're doing everything humanly possible," Weber said. "... I think they're more than willing to listen to the plight you're confronted with."

Ricker said he had already contacted Doebert to discuss the matter.

"The ball is in District 210's court," he said.

Weber said District 210 has already scheduled a special meeting for June 6 to discuss the matter.

The District 113A Board of Education scheduled a special meeting for 7 p.m. June 2 to approve documents related to the proposed agreement.