District 300 considers borrowing $31 million for upgrading schools

Community Unit District 300 is considering borrowing more than $31 million for additions at four schools, other repairs and rehabilitation projects.

The Algonquin-based district is applying for the ability to issue debt through the state's Qualified School Construction Bond program. The state anticipates distributing more than $495 million in bonding authority to school districts through the program - created under the American Recovery and Reinvestment Act of 2009.

Districts have until Friday to apply with the Illinois State Board of Education for the ability to issue low- to no-interest rate bonds to pay for construction projects, repairs, renovations and other building needs.

If approved, District 300 proposes adding 10 classrooms at Carpentersville Middle School ($2.65 million cost), four classrooms at DeLacey Family Education Center ($1.2 million), eight classrooms each at Gilberts and Wright elementary schools ($3 million per school), in Gilberts and Hampshire, respectively.

The improvements are needed to accommodate sixth-graders at Carpentersville Middle School and increased enrollment at other buildings, officials said.

Some schools on the west side of the district are near or approaching capacity, said Susan Harkin, district chief operating officer.

In 2004, officials identified $210 million worth of capital projects and issued $185 million in bonds approved through a voter referendum.

The district was promised roughly $35 million in funding to complete the projects through the state's Capital Development Board grant program that never materialized, officials said.

"We've been waiting very patiently for 12 years," said Harkin, adding some of those 2004 projects are included in the new application. "We borrowed $15 million over the last couple of years trying to get projects done ... they are primarily in the area of replacing asbestos tiles, grid systems and ceiling systems that are really outdated. It really is becoming a health and life-safety issue to us, if we don't get these projects done."

Officials are anticipating the QSCB loan would bear an interest rate between .5 percent to .25 percent and would be repaid through operating funds - resulting in an additional $900,000 yearly in debt service payments.

As of June 30, 2015, the district had roughly $289 million in total debt and is making $2 million in yearly debt service payments. Debt service will drop to $1.2 million next year after a final $800,000 payment on a loan for upgrading HVAC controls and energy efficiency projects, Harkin said.

"We have the possibility of stretching this (loan) out over 20 years because of the low interest (rate)," Harkin said.