WMOK – Metropolis, IL – When Massac Unit 1 School Superintendent Jason Hayes joined WMOK for our Coffee Break program this week, one of our topics was an alleged discrepancy regarding the issuance of a bond.
In February, the district issued an $8 million working cash bond. As of April, the bond was shown as $9.6 million.
WMOK asked Superintendent Hayes to explain the discrepancy.
Hayes explained that when the $8 million bond was issued, they combined an existing bond. The existing bond was issued in 2024. The decision was made to refinance the existing bond (which was covered under a public hearing and resolution in 2024), roll it into the new one, and pay it off early to eliminate a bond payment.
WMOK asked Superintendent Hayes if the actions conflicted with 105 ILCS 5/20-7
Hayes told WMOK that the $8 million issue is for projects that the district intends to undertake that they don’t have revenue mechanisms in place for, however it is an investment opportunity as it allows the district to pay themselves back the interest rather than a third party.
Mr. Hayes said that these funds stay in the Working Cash Fund until they are needed for a project and then the funds are moved to the corresponding account. He stated that the money is used for projects rather than expenses such as payroll.
Hayes admitted that he is not an expert and the district is advised on bonds and similar matters by Tim King of Chapman and Cutler. Hayes stressed that everything the district does regarding bonds must be approved by the law firm.
The current bond series began early this year with a public hearing and resolution at the district board meeting. Hayes told WMOK that after the resolution was adopted and the wait period was completed, another meeting was held, and two meetings later, the final resolution was adopted.
Mr. Hayes goes on to discuss tax capping within the district in response to residents’ concerns about a tax increase, as well as CPI.
Hear our full discussion on the topic below:
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