October 26, 2023

LAKE FOREST, Illinois – On October 11, 2023, Lake Forest Community High School District 115 completed the successful sale of its AAA-rated General Obligation School Bonds, Series 2023, authorized by Lake Forest, Lake Bluff, and Knollwood voters during the April 4, 2023 election.

The bonds, with total proceeds of $105,700,000, will be used to protect and improve historic Lake Forest Community High School by addressing the building’s most pressing capital facility needs including roofing, plumbing, electrical, HVAC, lighting, masonry, exterior enclosures, fire protection, security systems, student labs and classrooms, improving ADA accessibility, reconfiguring spaces for student support, and better integration of instructional spaces for students.The District expects to expedite these projects over the next four years.

“With this bond sale, the total cost is under what we promised the taxpayers,“ said Superintendent Matthew L. Montgomery, Ph.D. “I am proud of the excellence we continue to offer our District 115 families, while maintaining the lowest school tax rate in Lake County for our residents.”

The highly competitive sale, conducted by municipal advising firm Raymond James and the law firm Chapman Cutler, included 11 interested investors. The winning bidder was Bank of America Securities, submitting a bid with lowest true interest cost of 4.355% (including cost of issuance). The annual debt service, to be repaid over 20 years, is approximately $21,000,000 less than the initially estimated for taxpayers during the referendum education effort. The tax impact of the 2023 bond issue on a home with a fair market value of $1,000,000 will now be $870 per year, $104 less than the $974 originally estimated.

"The District considered other financing structures for the bonds with our financial advisors," said District 115 Board of Education President John Noble. "Such options came with greater risk associated with market volatility, and were deemed to violate the promise and structure outlined to our community prior to voter approval of the referendum in April."

“In this volatile market, locking in interest rates is paramount to helping us minimize risk,” said Chief Operating Officer, Dr. Jennifer Hermes. “Our goal is to seek the most fiscally conservative position for the District and our taxpayers.”

Proceeds from the 2023 bond will be professionally invested until needed to meet planned capital project expenditures. Interest earnings from these investments will be returned to the capital project budget. The District has issued a formal Request for Proposal for investment services for the bond proceeds. For more information, please visit the Referendum page of the District 115 website.