District 214 plans $20 million bond sale

Although the recession has hurt many aspects of the economy, interest rates are at one of their lowest points in years, a fact Northwest Suburban High School District 214 is looking to capitalize on as they move forward with a $20 million bond sale this year.

The money will be used for building repairs and maintenance, though specific projects have not been determined.

“There (are) always things that need to be done to keep our facilities up to safety and learning environment standards,” said board member Bill Dussling, adding the money will most likely be used for repairs at the schools. “It’s such an opportune time to borrow.”

The proposed bond sale was open for a public hearing at the school board meeting on Thursday. Only one resident, Roland Ley, president of Taxpayers United, spoke.

“In my opinion that is totally unnecessary because I believe you have or had at least $50 million of excess cash,” Ley said.

Because it was a public hearing, board members did not respond to Ley at the meeting. But Dussling said Friday the district wants to keep an amount equivalent to 30-50 percent of its budget in reserve, because of the uncertainty about state and federal funding.

Keeping a healthy reserve is important for the district to be able to pay salaries and other bills in case there is a serious backup in revenue, he said.

The district is allowed to carry a certain level of debt at all times and because District 214’s level of debt is so low, it is able to sell the bonds without asking residents for permission, said Superintendent Dave Schuler.

Dussling added the bond sale will go through in two increments -- $10 million before the end of the year and $10 million in early 2012.

District 214 is the second-largest high school district in the state and serves more than 12,000 students from Arlington Heights, Buffalo Grove, Des Plaines, Elk Grove, Mt. Prospect, Prospect Heights, Rolling Meadows and Wheeling.