West Aurora considers increased short-term borrowing

The West Aurora 129 school district might borrow more money in a short-term loan this spring when cash on hand drops to its lowest point of the year.

The school board Monday discussed selling up to $20 million in tax anticipation warrants to the Bloom Township Trustees of Schools at an interest rate of 0.7 percent. Ryan Abrahamson, district finance director, said he expects the district to borrow only $15 million.

In 2015, the board authorized $15 million and borrowed $10 million.

The board will vote on the sale March 7.

The warrants would tide over the district until property tax money starts rolling in in late May or June.

Abrahamson is asking for $5 million more due to increased uncertainty about if, when and how much the district will receive in certain aid and reimbursements from the state, due to the state budget impasse.

The district's cash fund balances, excluding those for capital projects and debt repayments, typically are highest in September, then decline through April. They rise again in June, then decline in July and August.

The district would have to pay the warrants back by June 30.