Angela Blatner - Board Member | Community Unit School District 200
Angela Blatner - Board Member | Community Unit School District 200
Community Unit School District 200 Board of Education met Jan. 8,
Here are the minutes provided by the board:
The first regular meeting of the month of January of the Board of Education of Community Unit School District 200, DuPage County, Illinois, was called to order at the Jefferson Early Childhood Center, 130 N. Hazelton Ave., Wheaton, IL, by Board Vice President Julie Kulovits, on Wednesday, January 8, 2025, at 7:00 PM.
ROLL CALL
Upon the roll being called, the following were present:
Board Members: Ms. Julie Kulovits
Mr. Dave Long
Ms. Angela Blatner
Mr. Erik Hjerpe
Mr. Brad Paulsen
Absent: Mr. Rob Hanlon
Mr. John Rutledge
Also in Attendance: Dr. Jeff Schuler, Superintendent
Ms. Alyssa Barry
Mr. Matt Biscan
Ms. Melissa Murphy
Dr. Brian O’Keeffe
Dr. Chris Silagi
Mr. Jason Spencer
PLEDGE OF ALLEGIANCE
Jefferson staff and students led the Board in the Pledge of Allegiance.
Vice President Kulovits recognized the recent tragic loss of a Wheaton North student and asked all to join in a moment of silence.
COMMUNICATION WITH THE HOST SCHOOL
Dr. Mary Davis, Principal of Jefferson Early Childhood Center, welcomed all to the school and thanked the Jefferson students who led the Pledge of Allegiance for the Board. Jefferson staff has been hard at work cultivating a vibrant and inclusive learning environment guided by the Jefferson Vision, Mission, and Beliefs. The Jefferson theme “All In” reflects the commitment to building a community where every student and staff member feels valued and empowered to succeed. Dr. Davis’ presentation highlighted recent accomplishments and areas of focus at Jefferson. Prior to the meeting, the Board and District Administration were invited to join Jefferson staff, students and families in the school’s foyer to see the variety of engaging learning centers students participate in on a daily basis. Jefferson students presented pieces of art/magnets to the Board as a reminder of their playful learning experience.
MODIFICATIONS TO THE AGENDA
None
PUBLIC COMMENTS – Agenda Items & Non-Agenda Items
In accordance with Board Policy 2.230, members of the public wishing to offer public comment had the opportunity to do so. A public comment sign-up sheet was made available until 7:00 p.m. at the meeting site. The Board Meeting was available for viewing via live stream on the District’s YouTube channel at www.youtube.com/communityunitschooldistrict200.
Per Board Policy, the Board may shorten the time allocation for each person to less than three minutes to allow the maximum number of people the opportunity to speak. The Board did not shorten the time allocation for each person to speak due to the number of speakers.
Speaker Topic
Stephanie Zentner Jefferson Teaching
SUPERINTENDENT REPORT
Dr. Schuler provided the following updates:
● Community Recognition—Dr. Schuler recognized community member Mr. Jae Haas for his involvement in the high school Business INCubator Program. Eight years ago, Mr. Haas brought the idea for the program to Dr. Schuler and the District and has played an instrumental role in it since then. More than 700 students have participated in the program. A certificate of appreciation was presented to Mr. Haas for being a valued community partner.
● Upcoming Community AI Event—Board members received an invitation to an event that the District is hosting on January 29th at WWSHS at 6:00 PM: “Everything Your Teen & Pre-Teen Should Know About AI in School!” The goal is to build capacity and understanding of AI's potential connections to the future of learning and education.
● Recognition of Franklin Multilingual Math Teacher Amanda Yost. Amanda was featured in a Daily Herald article.
● Wheaton Park District's annual event for Community Partners is in February. Board members were encouraged to look at the invitation and attend if they could.
● Student Ambassador Reports—The Student Ambassadors at WNHS and WWSHS provided reports on their high school’s activities, athletics, and events over the past weeks.
CONSENT AGENDA
1. Acceptance of Gift to Wheaton Warrenville South High School - Extracurricular Programs – Recommend acceptance of gift to WWS extracurricular programs as presented.
2. Approval of Athletic Trainer Services Contract Extension – Recommend acceptance of athletic trainer services contract extension as presented.
3. Approval of Mileage Reimbursement Rate for Calendar Year 2025 - Recommend approval of mileage reimbursement rate for calendar year 2025 as presented.
4. Approval of Resolution to Authorize Transfer (Repayable Inter-fund Loan) from Working Cash Fund to Operations and Maintenance Fund – Recommend approval to authorize transfer from working cash fund to O & M fund as presented.
5. Adoption of the Resolution to Begin the 2025-2026 (FY26) Budget Cycle – Recommend adoption of the resolution to begin the FY26 budget cycle as presented.
6. Approval to Dispose of Operations & Maintenance Surplus Assets – Recommend approval to dispose of operations & maintenance surplus assets as presented.
7. Approval of Bills Payable and Payroll – Recommend approval of bills payable and payroll as presented.
8. Approval of Minutes – December 7, 2024, Coffee with the Board, Open, December 11, 2024, Regular Meeting, Open, and Approval to Destroy Recordings of Closed Sessions Prior to August 2023 As Allowable by Law – Recommend approval of the minutes as presented and approve the destruction of recordings of closed sessions prior to August 2023 as allowable by law.
9. Approval of Personnel Report to Include Employment, Resignation, Retirement, and Leave of Absence of Administrative, Certified, Classified, and Non-Union Staff – Recommend approval of the personnel report as presented.
There were comments and/or questions on the following:
● #1 - Thank you to the community for the generous gift to benefit our schools.
MOTION
Member Hjerpe moved, Member Blatner seconded to approve the Consent Agenda as presented. Upon a roll call vote being taken, the vote was: AYE 5, NAY 0. The motion carried 5-0.
FACILITIES APPROVAL CONSENT AGENDA
1. Approval of Construction Management Agreement between CUSD 200 and Nicholas & Associates – Recommend approval of construction management agreement as presented.
2. Acceptance of Summer 2025 Playground Bid Proposals and Approval to Award the 2025 Playground Renovations for Wiesbrook Elementary and Whittier Elementary to E. Hoffman Inc. of Lombard, IL– Recommend the following:
1. Based on the submitted bids and bid review, the hiring of E. Hoffman Inc. of Lombard, Illinois to renovate the playgrounds at Wiesbrook Elementary and Whittier Elementary schools in the summer of 2025 for the total amount of $387,955.60.
2. Based on the Alternate #1 bid submission and review, the hiring of E. Hoffman Inc. of Lombard, Illinois to relocate the existing Gaga Pit on a new concrete pad around the playground area at Wiesbrook Elementary in the summer of 2025 for the total amount of $23,125.00.
3. Based on the Alternate #2 bid submission and review, the hiring of E. Hoffman Inc. of Lombard, Illinois to install a new (second) Gaga Pit concrete pad at Wiesbrook Elementary in the summer of 2025 for the total amount of $19,965.00.
4. Based on the Alternate #3 bid submission and review, the hiring of E. Hoffman Inc. of Lombard, Illinois to build a new concrete bike pad and purchase/install two bike racks at Whittier Elementary in the summer of 2025 for the total amount of $7,615.00.
5. Based on the Alternate #4 bid submission and review, the hiring of E. Hoffman Inc. of Lombard, Illinois to relocate the existing Gaga Pit on a new concrete pad around the playground area at Whittier Elementary in the summer of 2025 for the total amount of $11,155.00.
6. Based on the Alternate #5 bid submission and review, the hiring of E. Hoffman Inc. of Lombard, Illinois to build a new concrete pad and relocate/reinstall an existing bench at Whittier Elementary in the summer of 2025 for the total amount of $2,015.00.
7. The direct purchase of all playground equipment and additional safety surfacing by the CUSD 200 Business Office.
Open Session Minutes – January 8, 2025 Page 3
There were comments and/or questions on the following:
● While there was no facilities committee meeting this month, the committee had previously discussed these agenda items and are comfortable with the Nicholas agreement and this partnership, and they support the playground renovation work.
● The District is getting to the later phases of playground replacement with two additional summers of work remaining (summer 2026 and 27).
● Carol Stream Park District did receive the grant they applied for to improve Pleasant Hill Park.
● The playgrounds surrounding our buildings provide value to both the community and the schools.
● Thank you to Wiesbrook Elementary for raising additional funds for its playground project to add some additional features to its playground.
● Explanation of a playground gaga pit.
MOTION
Member Paulsen moved, Member Long, seconded to approve the Facilities Approval Consent Agenda as presented. Upon a roll call vote being taken, the vote was: AYE 5, NAY 0. The motion carried 5-0.
POLICY APPROVAL CONSENT AGENDA
1. Approval of Revised Policy 2:105 Ethics and Gift Ban – Recommend approval of revised policy 2:105 as presented.
2. Approval of Revised Policy 2:120 Board Member Development – Recommend approval of revised policy 2:120 as presented.
3. Approval of Revised Policy 4:30 Revenue and Investments – Recommend approval of revised policy 4:30 as presented.
4. Approval of Revised Policy 4:60 Purchases and Contracts – Recommend approval of revised policy 4:60 as presented.
5. Approval of Revised Policy 4:170 Safety – Recommend approval of revised policy 4:170 as presented.
6. Approval of Revised Policy 5:10 Equal Employment Opportunity and Minority Recruitment – Recommend approval of revised policy 5:10 as presented.
7. Approval of Revised Policy 5:20 Workplace Harassment Prohibited – Recommend approval of revised policy 5:20 as presented.
8. Approval of Revised Policy 5:90 Abused and Neglected Child Reporting – Recommend approval of revised policy 5:90 as presented.
9. Approval of Revised Policy 5:120 Employee Ethics; Code of Professional Conduct; and Conflict of Interest – Recommend approval of revised policy 5:120 as presented.
10. Approval of Revised Policy 5:125 Personal Technology and Social Media; Usage and Conduct – Recommend approval of revised policy 5:125 as presented.
11. Approval of Revised Policy 5:230 Maintaining Student Discipline – Recommend approval of revised policy 5:230 as presented.
12. Approval of Revised Policy 6:60 Curriculum Content – Recommend approval of revised policy 6:60 as presented.
13. Approval of Revised Policy 6:135 Accelerated Placement Program – Recommend approval of revised policy 6:135 as presented. (This item was moved to Action Item #6)
14. Approval of Revised Policy 6:270 Guidance and Counseling Program – Recommend approval of revised policy 6:270 as presented.
15. Approval of Revised Policy 7:10 Equal Educational Opportunities – Recommend approval of revised policy 7:10 as presented.
16. Approval of Revised Policy 7:100 Health, Eye, and Dental Examinations; Immunizations; and Exclusion of Students – Recommend approval of revised policy 7:100 as presented.
17. Approval of Revised Policy 7:180 Prevention of and Response to Bullying, Intimidation, and Harassment – Recommend approval of revised policy 7:180 as presented.
18. Approval of Revised Policy 7:200 Suspension Procedures – Recommend approval of revised policy 7:200 as presented.
19. Approval of Revised Policy 8:10 Connection to the Community – Recommend approval of revised policy 8:10 as presented.
There were comments and/or questions on the following:
● Board Member Hjerpe requested to move item #13 (Approval of Revised Policy 6:135 Accelerated Placement Program) to action item #6.
● There was clarification around how policy numbers are interpreted. Policy numbers ending in a “0” or a “5” indicate a PRESS policy (a statewide policy generally driven by school code language or something in the law); if the policy ends in something other than a “0” or a “5,” it means it is a locally developed policy by the District.
● All policies were posted, and the District received no feedback from the public.
MOTION
Member Hjerpe moved, Member Blatner seconded to approve the Policy Approval Consent Agenda as modified (moving #13 to an action item). Upon a roll call vote being taken, the vote was: AYE 5, NAY 0. The motion carried 5-0.
ACTION ITEMS
#1 Approval of Middle School ELA Instructional Materials for Community Review The Vision 2026 Strategic Plan outlines six strategies for achieving Academic Excellence. Two of these strategies have been a particular focus at the K-8 level, especially in response to the challenges of the pandemic: implementing learning acceleration strategies and programming and designing and implementing a balanced assessment system. As part of this initiative, the district has prioritized securing high-quality instructional materials for core subject areas. At the middle school level, a steering committee composed of teachers and administrators undertook a thorough process to review instructional practices. This included researching best practices, developing an instructional vision, and selecting materials for a pilot program. The pilot involved two instructional materials and included participation from all middle school English Language Arts (ELA) teachers, with the exception of FastPACED staff. At the conclusion of the pilot, staff recommended the materials from the pilot they thought would best support the needs of CUSD 200 students.
The CUSD 200 middle school staff have recommended adopting Savvas Learning Company’s 2025 myPerspectives English Language Arts instructional materials. These materials align with research-based practices for reading and writing and are consistent with the instructional vision developed by the steering committee. The administration is proposing a six-year purchase of these materials, which will include access to a digital subscription for staff and students, as well as workbooks. In accordance with Board Policy 6.210, the materials will be made available for community review. Feedback collected during this review process will be shared with the Board of Education before the February meeting. The following materials will be on display for the community at the School Service Center:
● ISBN: 9798213007886 My Perspectives 2025 Consumable Student Edition Grade 6
● ISBN: 9798213007893 My Perspectives 2025 Consumable Student Edition Grade 7
● ISBN: 9798213007909 My Perspectives 2025 Consumable Student Edition Grade 8
The total cost of purchasing the student consumable edition and digital license for six years is $366,832.80, which will be included in the FY26 budget.
Assistant Superintendent of Educational Services, Ms. Melissa Murphy, gave the board an overview of the work plan projects for learning acceleration this year. This included information on the subject area, project, and status for the following:
● Middle School Learning Acceleration Work Plan
○ ELA - Pilot and select high-quality instructional materials for ELA; review of 6-12 reading interventions (staff have piloted two instructional materials and are recommending My Perspectives for adoption; a committee of 24 MS and HS teachers will begin meeting in January to review reading interventions at 6-12 level; some committee members are currently engaged in a course about How to Support Struggling Older Readers).
○ Social Studies - Continue Phase 1 curriculum work (committee has reviewed the updated Social Studies standards, best practices, and has created an instructional vision; committee will begin reviewing the scope and sequence of standards and potential new instructional materials).
● Elementary Learning Acceleration Work Plan
○ ELA - Support the implementation of Bookworms ELA block and Bookworms Intensive for Tier 2 and 3 interventions (reading and resource teachers participated in 3 days of training with Jamie True Daley from the University of Delaware; Districtwide training on the January Institute Day for all staff of Enhanced Core Instruction for Bookworms; implementation of interventions for Tier 2 and 3; feedback loops with 3-5 District committee to support ELA implementation).
○ Math - Continue Phase 1 curriculum work for math interventions in grades K-5 (Math coaches and interventions will be piloting two intervention materials during the second half of the school year).
○ Special Education - Engage in a program review of Special Education Resource and the PISA instructional program in grades K-5 (Special Education stakeholder engagement opportunity and report finalized; committee started in December and will meet monthly this year).
There was additional information/comments on the following:
● Action items #1 (MS ELA Instructional Materials for Community Review) and #2 (K-5 Math Intervention Materials to Pilot) were presented together as they both relate to the District’s learning acceleration work.
● MS ELA staff unanimously are recommending adopting the myPerspectives instructional materials.
● The review of 6-12 reading interventions will review those currently in place, look at best practices in research (that includes research on dyslexia), and make recommendations to enhance the interventions.
There were comments and/or questions on the following:
● The process used when a steering committee is used for the purpose of a pilot - how members of the committee are selected and what their process is for nominating the curriculum(s) to pilot.
● The decision process used once materials have been piloted - feedback form, decision day, evaluation of materials; advisory recommendation from the committee vs. majority wins.
It was recommended that the Board of Education approve the posting of the ELA instructional materials for grades 6-8 for community review.
MOTION
Member Long moved, Member Paulsen seconded that the Board approve the posting of grades 6-8 ELA instructional materials for community review as presented. Upon a roll call vote being taken, the vote was AYE 5, NAY 0. The motion carried 5-0.
#2 Approval of K-5 Math Intervention Materials to Pilot
The Vision 2026 Strategic Plan outlines six strategies for achieving Academic Excellence. Two of these strategies have been a particular focus at the K-8 level, especially in response to the challenges of the pandemic: implementing learning acceleration strategies and programming, and designing and implementing a balanced assessment system. As part of this initiative, the district has prioritized securing high-quality instructional materials for core subject areas. At the elementary level, math coaches have engaged in a review of Multi-Tiered System of Support (MTSS). As a part of this work, a review of instructional materials has been completed. Math Coaches and Interventionists will engage in a pilot of two instructional materials for interventions.
At the elementary level, two intervention materials will be piloted. The Math Learning Center's Bridges Intervention Set 1 and 2 and Numeracy Consultants' Intervention and Work Problem Bundle will be piloted this school year.
The cost of Bridges Interventions Set 1 and 2 is $32,400.00, and the cost of the Numeracy Consultants Intervention and Word Problem Bundle is $30,000. Funds from the FY25 Title II grant will be used for the purchase.
The above action item (#1- MS ELA Instructional Materials for Community Review) included any additional information, comments, and questions on the K-5 Math Intervention Materials.
It was recommended that the Board of Education approve the purchase of the grades K-5 math intervention mateials to pilot.
MOTION
Member Paulsen moved, Member Long seconded that the Board approve the purchase of K-5 math intervention materials to pilot as presented. Upon a roll call vote being taken, the vote was AYE 5, NAY 0. The motion carried 5-0.
#3 Approval of the Resolution to Authorize Transfer (Repayable Inter-fund Loan) from Working Cash Fund to Operations and Maintenance (O&M) Fund
In connection to the capital projects associated with the November 2024 Referendum, design and consulting work continues, leading to expenses that have not been accounted for in the FY25 budget. In advance of the first debt issuance associated with the November 2024 Middle School Capital Referendum, an inter-fund loan is necessary to ensure CUSD 200 can meet its obligations related to the 2024 Referendum. An inter-fund loan of $6,000,000 from the Working Cash Fund to the Operations and Maintenance Fund will ensure that the District's obligations can be met before the first Referendum Debt Issuance.
This loan is separate from the interfund loan that the Board of Education authorizes each spring to address cash shortfalls in Operating Funds. The total interfund loan from Working Cash to Operations & Maintenance will be repaid when the first November 2024 Referendum Debt Issuance closes, which is expected to occur in March 2025.
There was additional information/comments on the following:
● Action items #3 (Resolution to Authorize Transfer (repayable inter-fund loan) from Working Cash to O&M Fund and #4 (Amended Resolution to Authorize Transfer (repayable inter-fund loan) from O&M Fund to Capital Projects Fund) were presented together.
● This is a reminder that a more comprehensive report outlining the process from now until the middle school work is complete will be presented at the Board's next Committee of the Whole meeting in January.
● The law requires that we go through a process if we are moving money out of working cash. It must be moved into another operational fund before moving it into the capital projects fund.
● The funds will be moved from the O&M fund into the capital projects fund to pay the existing and ongoing bills related to the middle school capital projects (Architects, Consultants, etc.). The amount is what is anticipated to be needed before the debt issuance closing. In essence, this is a bridge loan.
There were comments and/or questions on the following:
● The impact on the percentage of cash on hand - not anticipating any operating cash issues.
It was recommended that the Board of Education approve the resolution attached to the agenda item authorizing the transfer (repayable inter-fund loan) from the Working Cash Fund to the Operations and Maintenance Fund.
MOTION
Member Paulsen moved, Member Blatner seconded that the Board approve the resolution to authorize the transfer (repayable inter-fund loan) from the working cash fund to the O & M fund as presented. Upon a roll call vote being taken, the vote was AYE 5, NAY 0. The motion carried 5-0.
#4 Approval of the Amended Resolution Authorizing Transfer of Monies from Operations and Maintenance (O&M) Fund to Capital Projects Fund
At their July 10, 2024 meeting, the Board of Education approved a resolution to transfer $9,000,000 from the Operations and Maintenance Fund to the Capital Projects Fund to fund capital projects that were completed in the summer of 2024, which were identified in both the Facilities Master Plan as well as the Capital Facilities Plan.
Following the approval of the November 2024 Community Middle School Capital Referendum, additional Referendum project activities have and will continue to be undertaken prior to the beginning of Phase 1 in the summer of 2025. To facilitate the implementation of the November 2024 Referendum-related initiatives, it will be necessary to transfer additional funds from the Operations and Maintenance Fund to the Capital Projects Fund. These transfers will be repaid using bond proceeds from the first November 2024 Referendum Debt Issuance, which is expected to occur in March 2025. There is no cost for this transfer. The transfer will be included in the FY25 Amended Budget Document.
The above action item (#3 - Resolution to Authorize Transfer (repayable inter-fund loan) from Working Cash to O&M Fund) included any additional information, comments, and questions on the Amended Resolution to Authorize Transfer (repayable inter-fund loan) from the O&M Fund to the Capital Projects Fund.
It was recommended that the Board of Education approve the resolution attached to the agenda item, authorizing the transfer of funds from the Operations and Maintenance Fund to the Capital Projects Fund.
MOTION
Member Paulsen moved, Member Blatner seconded that the Board approve the amended resolution to authorize the transfer of monies from the O & M fund to the capital projects fund as presented. Upon a roll call vote being taken, the vote was AYE 5, NAY 0. The motion carried 5-0.
#5 Resolution providing for the issue of not to exceed $76,500,000 General Obligation School Bonds of the District, for the purpose of constructing the middle school projects approved at the November 5, 2024, referendum, providing for the levy of a direct annual tax sufficient to pay the principal and interest on said bonds, and authorizing the proposed sale of said bonds to the purchaser thereof
In November 2024, the CUSD 200 Community overwhelmingly approved, in the General Election, the $151.5M Middle School Capital Project Bond Proposal. The yes votes, totaling 68.01%, were canvassed and confirmed by the DuPage County Clerk on November 26, 2024. The Referendum approval allows CUSD 200 to move forward with additions and major renovations at Edison, Franklin and Monroe Middle Schools.
Phase 1 & 2 of the Middle School Capital Projects will begin in the summer and fall of 2025 respectively. The District will require funding to pay for these upcoming obligations, including reimbursing the Board of Education for out-of-pocket expenses that have been associated with the Middle School Capital Projects during Fiscal Year 2025. It is expected that the first debt issuance, in an amount not to exceed $76.5M, will be sold via competitive bid in early March 2025, with final closing and disbursement occurring roughly 30 days after the competitive bid is complete. The District, with its strategic partners, will build a construction paydown schedule and subsequent investment ladders that will allow for opportunities to maximize interest earnings during the multi-year construction period. Debt payments associated with the community-supported November 2024 Referendum will be accounted for in the annual Debt Service Tax Levy, starting with the 2025 Tax Levy.
Vice-President Kulovits announced the agenda item for consideration. Board Secretary Long read the Resolution:
RESOLUTION providing for the issue of not to exceed $76,500,000 General Obligation School Bonds of the District, for the purpose of constructing the middle school projects approved at the November 5, 2024, referendum, providing for the levy of a direct annual tax sufficient to pay the
principal and interest on said bonds, and authorizing the proposed sale of said bonds to the purchaser thereof
Assistant Superintendent of Business Services, Dr. Brian O’Keeffe, introduced Mr. Bob Lewis, Senior Vice President and Managing Director of PMA Securities, LLC who provided a Review of Referendum Plan of Finance for CUSD 200. This included information on the following:
● Process for Issuing Referendum Approved Bonds
○ What are Municipal Bonds?
■ School Districts issue bonds to fund capital projects
■ Represent a promise to repay investors an amount of money borrowed (principal) along with interest (debt service), according to a fixed schedule
■ Usually mature between 1-30 years from issuance date (maximums vary by type of government according to State statute)
■ Bond & Interest (B&I) levy: amount of property taxes requested to pay principal and interest on general obligation (GO) bonds
■ Typically, an investor receives federally tax-free interest payments so it offers to buy Municipal Bonds at a lower interest rate
○ Legal Debt Margin
■ 6.9% of EAV for K-8 and 9-12 districts, 13.8% of EAV for unit districts (less: outstanding principal)
■ Exemptions exist for some bonds including referendum bonds if certain publication and hearing requirements are met
○ Credit Rating Scales and Definitions
■ CUSD 200 Standard & Poor credit rating is AA+, which indicates a very strong capacity to meet obligations
○ Referendum - Immediate Steps After Election
■ What happens after the election? - The county had 21 days to canvass the election and certify the results (Nov 26th); Followed by a 30-day petition period for a challenge against the results
■ The District has up to five years after referendum approval to issue bonds - typically issued in more than one series
○ Referendum Bonds - Overview of Issuance Process
■ CUSD 200 Board is scheduled to approve a parameters resolution on Jan 8th to authorize a bond sale; Parameters include maximum amount, final payment date, maximum interest rate, etc.; Delegates named to approve the sale (typically, the Asst. Supt of Business Operations, Supt., BOE President and Vice President), one admin and one elected official from the list; Authorization expires six months after passage or BOE election, whichever happens first; Bonds expected to be sold via competitive sale
■ Resolution and Notification of Sale filed with the county to establish the bond levies to repay the bond issue
○ Competitive Sale - Sample Auction Results
■ The winner is the one with the lowest True Interest Cost (TIC)
○ Expenditure of Bond Proceeds
■ Expenditure Test - test is met if at least 85% of the net sale proceeds of the issue are allocated to expenditures on the capital projects within 3 years of the issue date
■ Time Test: 5% within Six Months - test is met if the issuer incurs a
substantial binding obligation to a 3rd party to expend at least 5% of net sale proceeds of the issue on the capital projects within 6 months of the issue date
■ Due Diligence Test - test is met if there is a reasonable expectation to proceed with due diligence to allocate the net sale proceeds to expenditures and complete the capital projects (i.e., do not wait until the last 6 months of the 3-year period to spend a majority of the money)
○ What is Arbitrage?
■ Arbitrage is the difference between (i) what would have been earned if tax-exempt bond proceeds were invested at bond yield and (ii) the earnings on the investment of such tax-exempt bond proceeds in higher-yielding securities. The US Tax Code generally prohibits positive arbitrage on the investment of bond proceeds. If an exemption is not met, then the issuer would have to pay positive arbitrage to the IRS
○ 10-year MMD vs. 2-year US Treasury
■ Graph showing the 10-yr MMD (Municipal Market Data) vs. 2-yr Treasury Spread, the 10-yr AAA MMD, and the 2-yr Treasury since January 3, 2025
○ Arbitrage Exceptions
■ Small issuer exception for schools - Issue less than $15 million of tax-exempt bonds in a calendar year
■ Spend down exceptions - 6-month exception (spend all proceeds within 6 months); 18-month exception (spend all proceeds according to a specific schedule); 24-month construction exception (spend all proceeds according to a specific schedule)
● Timeline and Review of Overall Plan of Finance
○ Overall Plan of Finance
■ Existing Debt Service, Proposed Referendum Debt Service - 2025, and Proposed Referendum Debt Service - 2027 shown for LY 2022 through 2042
○ Summary of Financing Options
■ March 2025 Proceeds, July 2027 Proceeds, Estimated Net Debt Service, Average Annual Debt Service, Estimated B&I Tax Rate Change in LY 2025, and Estimated LY 2025 Tax Bill Change for Median Homeowner shown for Referendum Campaign (May 2024) and Jan 9th, 2025 Update
○ Sample Timeline of Key Events for Bond Issuance
■ January 8th - Board approves parameter resolution authorizing the sale
■ March 3rd - Bonds sold; delegates approve final results
■ March 25th - Bonds close
■ April 9th - Recap of bond sale to the Board
■ Start to End - Document drafting, including Official Statements, etc.
There was additional information/comments on the following:
● District 200 history with municipal advisor, PMA Securities.
● The District finance plan is to have each bond sale mature no more than 15 years from issuance. This is just enough time to amortize those and still have a decline in the overall payment.
● The general obligation bond levy can only be used to pay the debt service back.
● In this market environment, tax exemption probably saves the District 1.0-1.25% if we could not issue as tax exempt. This does come with some rules.
● The legal debt margin is tied to the property values of the District. CUSD 200 has plenty of capacity to issue these referendum bonds.
● Four different rating agencies are utilized for local units of government.
● The county files the bond levy based on the documents filed right after the bonds are sold unless it is told something different (an example is an abatement).
● How the competitive sale process works.
● True Interest Cost (TIC) is a composition of the interest rates they’re proposing and the fee they want to earn as underwriter.
● Tax law explains why bonds are sometimes sold in more than one series. To be tax-exempt, you have to meet the three tests (expenditure, time, and due diligence).
● Auditing of bond issues by the IRS does occur, so proper documentation is important.
● Why arbitrage did not come up when lease certificates were issued for Jefferson ECC - it was a different interest rate environment.
● In layman’s terms, arbitrage is earning investment income at a rate above the rate at which you borrowed. Earning positive arbitrage is not the worst thing in the world since there was no potential investment income left on the table. In this case, a check is cut to the IRS.
● The impact of the Federal Reserve policy on positive arbitrage. As they cut rates, the rates they are cutting have the most influence on the short-term rates. The district borrowing rate is more of a medium-term rate.
● Bond sale and a not-to-exceed amount as it relates to spend-down requirements.
● From an auditing perspective, the District must be reimbursed before the end of the fiscal year.
● The second bond issuance could occur in 2026, as it appears that the summer of 2026 could be the heaviest construction summer.
● The summary of financing options - the rates will continue to change until the bonds are sold. The uncertainty in the market, the Fed slowing down the pace of reducing interest rates, but would not expect significantly higher or lower interest rates than what has currently been estimated (barring some substantial change that is not foreseen at this point).
● The bond sale's target date is March 3, 2025. However, this date is not set in stone and can always be postponed (based on parameter resolution).
There were comments and/or questions on the following:
● The difference between a credit rating of AA+ and AAA in terms of interest rates for the bonds would probably be from .05-1.0%.
● The 24-month construction exception starts the day the bond sale closes (the close of the first bond sale is targeted for March 25, 2025). Each bond sale is conducted independently of the other.
● Why sell bonds without a bill that we need to pay in hand and instead obtain the funding right when you have the bill? It was noted we are not just getting one bill for the entire project. Each time we issue and draw, fees are incurred.
● A non-positive arbitrage environment as it relates to financing and bond issuances.
● The proceeds from the bond sale will reimburse the District, and the levy will pay the principal and interest owed to investors.
● Clarification on “spend all proceeds” language as it relates to arbitrage spend-down exceptions - when the actual payment is made.
● Bond issuance #2 is going to launch all of the new addition pieces as well and that is planned for pre-summer of 2026.
● Arbitrage calculation is a present-value calculation.
● Are refunding provisions part of the parameters? Included in the optional redemption section and sets a maximum not-to-exceed date.
● Certification takes place when the new Board is seated.
It was recommended that the Board of Education approve the General Obligation School Bonds, Series 2025, Resolution, which was attached to the agenda item.
MOTION
Member Hjerpe moved, Member Long seconded that the Board approve the Resolution providing for the issue of not to exceed $76,500,000 General Obligation School Bonds of the District, for the purpose of constructing the middle school projects approved at the November 5, 2024, referendum, providing for the levy of a direct annual tax sufficient to pay the principal and interest on said bonds, and authorizing the proposed sale of said bonds to the purchaser thereof. Upon a roll call vote being taken, the vote was AYE 5, NAY 0. The motion carried 5-0.
#6 Approval of Revised Policy 6:135 Accelerated Placement Program (This Item was moved from the Policy Approval Consent Agenda)
Board Member Hjerpe requested that this item be moved from the policy approval consent agenda. The revisions reflect the most recent update of PRESS. The Board of Education HR/Policy committee reviewed this policy prior to recommending its approval. No feedback was received from the public.
There was additional information/comments on the following:
● Clarification on recommended policy/language change and concern over implications of the change from an educator perspective - students might not be adequately prepared for coursework if only based on proficiency level on state testing.
● Recognition of accelerated level classes as good for kids and wanting students to be successful.
● The concern is valid. The HR Policy committee discussed reviewing the data from the first semester of this school year at the high school level, including the number of students shifting classes after the first semester, to determine whether adjustments need to be made.
● Recommending that we keep the practice in place, and seeing where we may need to make some adjustments in practice if necessary. The policy committee can always come back to this policy if we want to rethink it in the future.
● As highlighted at the last meeting, the District website has information on posted policies, curriculum, etc., and it notes how to provide feedback or public comment on these items. We encourage people to follow that pathway so they have any feedback or explanation in advance of the meeting.
There were comments and/or questions on the following:
● Policy language saying “shall allow” for the accelerated placement vs. “must allow” as it relates to providing a process for students and/or parents if they disagree with the accelerated placement to downgrade it.
It was recommended that the Board of Education approve revised policy 6:135 as presented.
MOTION
Member Hjerpe moved, Member Paulsen seconded that the Board approve revised policy 6:135 as presented. Upon a roll call vote being taken, the vote was AYE 5, NAY 0.
The motion carried 5-0.
OTHER REPORTS FROM BOARD MEMBERS
● Board members noted visits to/participating in the following:
○ A virtual visit to adopted school Pleasant Hill with Interim Principal Klein
WRITTEN REPORTS
Monthly Financial Reports
FOIA Report
Board Communication Log
TOPICS FOR FUTURE DISCUSSION
5-Year Financial Projections
Middle School Capital Projects
● Reminder - there is an open item on how future discussion items are captured. A document has been developed, and the topics are being captured.
● Practices and interventions in place for students with dyslexia.
NEXT REGULAR MEETING
February 12, 2025, 7:00 PM, Washington Elementary School
ANNOUNCEMENTS
January 22, 2025, Committee of the Whole, 7:00 PM, School Service Center
February 8, 2025, Coffee with the Board, 9:00 AM, School Service Center
ADJOURNMENT
MOTION
There being no further business to come before the Board in Open Session, Member Paulsen moved, Member Long seconded to adjourn the meeting. Upon a voice call being taken, all were in favor. The motion carried 5-0.
The meeting adjourned at 8:45 PM.
https://core-docs.s3.us-east-1.amazonaws.com/documents/asset/uploaded_file/3696/CUSD200/5301311/Minutes_1.8.25.docx.pdf
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