Manhattan School District 114 Approves $5.75 Million Fund Transfer, Advances Bond Repayment

Manhattan School District 114 Meeting | March 11, 2026

Article Summary: The Manhattan School District 114 Board of Education held a public hearing and subsequently approved the transfer of $5.75 million in bond interest to the Educational Fund, while also authorizing the early repayment of Series 2022 school bonds to help stabilize the district’s tax rate.

Financial Restructuring Key Points:

• The board transferred $5,750,000 from the Operations and Maintenance Fund to the Educational Fund.

• The transferred funds represent interest earned on the original bonds utilized to construct the district’s newest school.

• Commissioners unanimously approved a resolution to pay off outstanding Series 2022 General Obligation School Bonds in advance of maturity.

• The financial maneuvers are part of a broader strategy to maintain the district’s tax rate at 4.2552.

The Manhattan School District 114 Board of Education on Wednesday, March 11, 2026, executed a series of high-level financial maneuvers designed to efficiently utilize bond interest and pay down existing district debt.

During the regular meeting, the board briefly adjourned to hold a required public hearing concerning the intent to transfer $5,750,000 from the Operations and Maintenance Fund to the Educational Fund.

Board President John Burke provided the public with the context behind the massive transfer, noting that the money was generated by the district’s own capital funds.

“The purpose of the transfer, the $5,750,000, is from the interest earned on our overall bond proceeds, the bond we used to build this very school,” Burke explained. “This interest is included in the calculation of $20 million of unspent remaining bond proceeds as discussed these past months in finance committee meetings. These funds will be moved from the Operation and Maintenance Fund to the Education Fund for operational expenditures.”

Following the public hearing, which received no comments from the audience, the board formally approved the resolution directing the $5.75 million transfer via a 6-0 roll call vote. Board member Barbara Epps was absent from the meeting.

The board immediately followed up with a unanimous 6-0 vote to approve a resolution providing for the payment of certain outstanding General Obligation School Bonds, Series 2022, in advance of maturity. The resolution also authorized the execution of an Escrow Agreement in connection with the early repayment.

According to Superintendent Dr. Damien Aherne, these moves are intricately tied to the district’s upcoming tax levy and overall financial strategy for local taxpayers.

“The change for that this year is the designation and the schedule of the unspent bond proceeds that we’ve been discussing these past few months towards the bond repayment to keep the tax rate at 4.2552,” Dr. Aherne told the board.

Aherne noted that the district expects to receive official levy numbers from Will County next week. Depending on those figures, the district may need to schedule a special meeting later in March to finalize the levy abatement process.