District Weighs $4.8 Million Debt Reduction Scenarios as Facility Issues Persist

Peotone CUSD 207-U Meeting | December 15, 2025

Article Summary:

Peotone school officials are evaluating whether to abate or defease $4.8 million in unused bond funds following the cancellation of a high school field project. Meanwhile, the maintenance department reported a successful 12-hour emergency repair on a junior high boiler and resolved a major power outage at the elementary school.

Facility and Debt Management Key Points:

• The district is considering using $4.8 million in remaining 2023 bond proceeds to pay down existing debt or generate interest savings for taxpayers.

• A major leak in the Peotone Junior High School boiler required an immediate 12-hour shutdown for emergency welding.

• A failed 1200-amp breaker caused a total power outage at Peotone Elementary School on Dec. 3, which has since been replaced under warranty.

• Maintenance crews have handled 14.9 inches of snowfall as of early December, transitioning the district fully into winter operations.

During a committee of the whole meeting on Monday, Dec. 15, 2025, the Peotone CUSD 207-U Board explored options for managing $4.8 million in bond proceeds that remain following the board’s decision not to move forward with new baseball and softball fields at Peotone High School.

Business Manager Adrian Fulgencio presented two primary scenarios drafted by PMA Securities: abatement and defeasance. Under an abatement, the board would direct the county clerk to lower property taxes for these specific bonds by using the $4.8 million to make the annual debt payments. This would free up the district’s “debt service extension base” for future needs.

The second option, defeasance, involves placing the funds into an escrow account to earn interest and pay off callable maturities. Fulgencio estimated that the defeasance route could save the average homeowner roughly $1,348 over the next 13 years. Trustee Robert Janeliunas asked if the funds could be redirected to other capital improvements. Fulgencio indicated that while legally possible if used for construction, further consultation with legal counsel would be required.

The discussion occurred against a backdrop of significant facility challenges. Director of Buildings and Grounds Mike Singleton reported on a “very active” winter season. On Dec. 3, Peotone Elementary School suffered a total power outage due to a failed 1200-amp breaker. The repair required a temporary generator, which faced its own issues when diesel fuel began gelling in the sub-zero temperatures, resulting in one e-learning day. The breaker was replaced under warranty at no cost to the district.

At Peotone Junior High, the original Kewanee boiler developed a critical leak in the water box. Singleton coordinated an emergency repair on Dec. 10 that took 12 hours. “repairs took just under 12 hours from 6 a.m. until 5:30 p.m.,” Singleton said, noting that despite the shutdown, building temperatures remained above 65 degrees.

Singleton warned that the junior high lacks a redundant heating system. He is currently working with partners to create a plan for a temporary “roll-in” boiler in the event of a catastrophic failure during the coldest months of January and February.