CCSD21 initiates $1.12 million transfer from educational to debt service fund
The Community Consolidated School District 21 Board of Education on Nov. 9 officially approved the process by which approximately $1.12 million will be transferred from the district's educational fund to its debt service fund.
The board previously authorized issuance of debt certificates to finance the purchase of property and construction of the Community Service Center and Administrative Office, which opened in January.
"The debt certificates issued to pay for the building pledged existing revenues, outside of property taxes, in order to ensure they were paid off during a reasonable and responsible period of time without immediately utilizing a large amount of existing funds," said Micheal DeBartolo, assistant superintendent for finance and operations. "This allows for a low-interest solution to ensure that an unexpected financial crisis does not eliminate various options for the district to use in response to an emergency."
In conjunction with the district's financial advisors PMA Financial Network, auditors Baker Tilly, and legal counsel for such projects Franczek P.C., this strategy was developed, deemed fiscally responsible and implemented for the benefit of the community in bringing this space that houses professional development and educational events for staff, parents, families and the community as a whole, as well as the planned clinic, to life.
The transferred funds will pay for $278,241 of interest from fiscal year 2023 as well as fund the $842,300 payment for fiscal year 2024.