RLC adopts bond issue resolution
During a special meeting of the Rend Lake College Board of Trustees held Friday morning, the board adopted a resolution providing for the issuance of $5,650,000 in taxable general obligation bonds. This issuance includes the refunding of $3.4 million in prior bonds in order to take advantage of more favorable market conditions and $2,250,000 in new working cash funding monies effective Dec. 17.
The bond issue is primarily due to late state aid payments. Currently, the college is owed about $4.25 million by the state.
According to administrative rationale, the college's current legal debt margin and recent changes in legislation to double the amount of working cash fund bonds which are permitted to be outstanding allow for the issuance of the bonds. This issuance will allow RLC to better maintain an adequate cash balance to meet normal operational expenditures. The issue will not cause an increase in property taxes.
In a related action, the board adopted a resolution providing for the execution of an escrow agreement in connection with the bond issuance. This account will pay for the original $3.4 million in prior bonds as they come due.
Mark your calendars …
• Rend Lake College Homecoming, Wednesday, Feb. 23, Men’s and Women’s Basketball Games, James “Hummer” Waugh Gymnasium.
• RLC Spring Musical “South Pacific,” 7 p.m. Thursday-Saturday, March 3-5, 2 p.m. Sunday, March 6, RLC Theater.
• Student Art Show, 6-8 p.m. Thursday, March 20, RLC Theater.