Batavia schools to borrow $5 million short-term

Indian Prairie District 204 and Downers Grove High School District 99 did not buy Batavia school district tax-anticipation warrants last year. A Batavia school trustee misspoke.

The Batavia school district is going to borrow $5 million in the short term to cover its cash flow needs through the end of the fiscal year in June.

The board agreed Tuesday to sell tax-anticipation warrants, which will be repaid with property taxes. The payment is due June 30.

The money is meant to carry the district through the lowest point of its fund balances, which happens while the district awaits property tax receipts from Kane County. The county begins collecting the tax in May and usually makes its first disbursement later that month.

Neither an interest rate nor a buyer have been determined. The district expects to spend about $15,500 on fees related to the sale.

Last year, the district sold $8 million of the warrants.

In late February, neighboring West Aurora School District 129 also sold tax anticipation warrants.