The Mahomet-Seymour Community Unit School District No. 3 Board of Education has approved the sale of $4.8 million in Health Life Safety bonds to Webster Bank, National Association, to fund infrastructure upgrades across three district schools.
Bond Terms and Financial Implications
The bonds, designated as General Obligation School Bonds, Series 2025, will carry an interest rate of 3.87% with a True Interest Cost (TIC) of 3.861%, the lowest among competing bids. While the fees are higher, Webster Bank will also act as the paying agent, managing principal and interest disbursements.
Structured as a single-term bond, the debt instrument will mature on December 1, 2027, with semi-annual interest payments beginning December 1, 2025.
Project Allocation and Safety Priorities
Proceeds from the bond sale will target specific upgrades at Lincoln Trail Elementary ($1,849,774), Mahomet-Seymour Junior High ($472,069), and Mahomet-Seymour Senior High ($2,551,327)1. The scope includes:
- Fire Prevention: Installation of advanced smoke detection systems, fire-rated doors, and emergency lighting.
- Energy Conservation: HVAC modernization, window replacements, and insulation improvements to reduce utility costs.
- Security Enhancements: Controlled access systems, surveillance camera networks, and reinforced entry points.
These measures stem from mandates by the Regional Superintendent of Schools and the Illinois State Board of Education, which identified compliance gaps in existing facilities. The district had previously issued $7.5 million in bonds for similar projects but required additional funding to meet updated safety codes.
Next Steps and Fiscal Responsibility
With the resolution passed, the bonds will be formally issued on March 6, 2025. A direct annual property tax levy will cover principal and interest, structured to align with the district’s existing debt service schedule.
