District 113A Looks to Reinstate Working Cash Fund

The Lemont-Bromberek Combined School District 113A Board of Education will take steps in the coming weeks to reinstate its working cash fund, which was abolished in April 2010.

During their monthly business meeting Tuesday night, District 113A board members expressed interest in issuing a working cash bond that would move $1.6 million from the bond and interest fund to a working cash fund. 

District 113A Interim Superintendent Robert Madonia presented information to the board regarding the bond and interest fund and how it could be used to address some of the district's current liabilities.

Bob Lewis and Don Weber, advisers from PMA Financial Network, told board members they had two options: use the fund to cover an $800,000 callable bond (with interest savings of $200,000) or issue a funding bond to pay off the $305,000 owed to the Illinois State Board of Education for "unallowable" transportation reimbursements.

A third option arose through the course of discussion with the board, which is to issue a working cash bond that would reallocate the money to a new working cash fund.

Weber said the money in the bond and interest fund was invested wisely over a number of years, and has accumulated to about $1,690,000. The funds, he said, are available to cover general obligation debt.

All seven board members agreed that issuing a working cash bond would be in the best interest of the district.

"The (working cash bond) really gives us more possibilities and brings up some of that money that we could never touch," Board Member Al Malley said.

Board members also agreed that a policy should be in place that restricts the fund's use to transfers to other funds in times of need.

Lewis said the issuance of a working cash bond would have no effect on Lemont taxpayers.

The District 113A Board of Education will vote on the $1.6 million working cash bond during its March 13 meeting.