District 210 Approves $1.8M Loan to District 113A

For the third time in a little more than a year, will purchase tax anticipation warrants from .

The District 210 Board unanimously approved the purchase of $1.8 million in TAWs—the smallest amount to date—during their monthly business meeting Monday. The warrants will be issued Jan. 27 at an interest rate of 2.04 percent, according to District 210 Board President Beverly Marzec.

The debt is scheduled to be retired June 28.

District 113A has been reliant on short-term borrowing to meet its financial obligations since depleting its cash reserves in June 2009. Though the district is slowly rebuilding its reserves, TAWs are still required to cover its continued issues with cash flow.

The most recent agreement with District 210 by District 113A board members Dec. 20.

The last set of TAWs—totaling $5 million—. Under the agreement, the debt was scheduled to be retired by Jan. 31, 2012, with an interest rate of 2.23 percent.

Because District 113A must initiate the next round of borrowing by Jan. 27, the current debt will be paid off just hours before the $1.8 million is issued.

According to representatives from PMA Financial Network, the latest TAWs could be the last for District 113A, which has steadily improved its financial standing over the course of two years.

The need to borrow will depend on the distribution of Cook County property taxes, said PMA representative Bob Lewis, who said he will monitor cash flow projections closely this year before making any recommendations to district officials.