District 210 OKs Purchase of $5M in Tax Anticipation Warrants from District 113A

For the second time in six months, Lemont High School District 210 has agreed to a short-term investment in Lemont-Bromberek Combined School District 113A.

During its regular meeting Monday night, the District 210 Board of Education unanimously approved a resolution to purchase $5 million in tax anticipation warrants from District 113A, which is currently reliant on short-term borrowing to meet its financial obligations.

Under the agreement, the debt is scheduled to be retired by Jan. 31, 2012, with an interest rate of 2.23 percent, according to District 210 Business Manager Joe Murphy.

District 210 Supt. Sandra Doebert said during the meeting that the process is exactly the same as it was in January, with one caveat: Under the approved resolution, District 113A must pay back the first set of TAWs—which is scheduled to occur by June 29—before the second transaction can take place. 

The agreement marks the second time District 210 has purchased TAWs from District 113A this year. In January, District 210 purchased $5.5 million in TAWs from District 113A, marking the first time two Illinois school districts had entered into such an agreement.