Trustees Approve $96,670 in Bond Fees Ahead of $40 Million Debt Issuance

Lake Land College | August 17, 2026

Article Summary: The Lake Land College Board of Trustees on Monday, Aug. 17, 2026, approved bond-related acquisition fees not to exceed $96,670 with PMA Securities of Naperville, clearing the way for the college to issue general obligation debt certificates and general obligation bonds for projects tied to its Master Facility Plan.

PMA Securities Agreement Key Points:

• Fees not to exceed $96,670 for municipal advisory services covering both the debt certificates and the bond sale.
• The agreement contemplates $20,200,000 in General Obligation Debt Certificates (Limited Tax), Series 2026 and $20,500,000 in General Obligation Bonds, Series 2027 — both figures marked preliminary and subject to change.
• Fees will be funded from bond proceeds and are payable only on closing; no fee is due unless the securities close.
• Approved 8-0 on a motion by Trustee Larry Lilly, seconded by Chair Tom Wright.

MATTOON — Lake Land College trustees on Monday, Aug. 17, 2026, hired a municipal advisor for a two-part borrowing that the underlying agreement puts at a preliminary $40.7 million, approving fees of up to $96,670 with PMA Securities, LLC of Naperville.

Vice President for Business Services John Woodruff presented the item. The board approved it 8-0 on a motion by Trustee Larry Lilly, seconded by Chair Tom Wright.

Woodruff’s Aug. 5 memo states that “the College intends to seek board approval to issue general obligation debt certificates and general obligation bonds to finance construction projects beneficial to the College and associated with the College’s Master Facility Plan approved by the Board.” PMA, he wrote, would provide financial planning to secure the bonds, advise on debt management and financial implementation including which securities to accept and properly place, and provide necessary elections to comply with bonding requirements. “They have been instrumental and critical in past Bond acquisitions, and we anticipate the same professional experience,” the memo states.

How the Fee Breaks Down

The memo sets out the fee structure in three parts. For the debt certificates, PMA’s fee is $28,000 — a flat $25,000 plus $3,000 for offering documentation. For the bond sale, estimated at $20.5 million, the fee depends on the method of sale: a public offering would cost $68,670, calculated at $3.30 per $1,000 plus $4,000 for services; a placement would cost $29,000, a flat $25,000 plus $4,000 related to offering documents.

The approved ceiling of $96,670 corresponds to the debt certificate fee plus the public offering fee. Per the minutes, fees will be funded from bond proceeds.

The Municipal Advisory Agreement in the packet, effective Aug. 3, 2026, identifies the issuer as Community College District Number 517 and recites an intent to issue $20,200,000 in General Obligation Debt Certificates (Limited Tax), Series 2026 and $20,500,000 in General Obligation Bonds, Series 2027. A footnote on the first page marks both figures “Preliminary, subject to change, and reflects the current estimated par amount.” The agreement is to be signed for PMA by Senior Vice President and Managing Director Tammie Beckwith Schallmo.

Scope and Limits

The agreement provides that no fee is due from the issuer unless the securities close, and that fees become payable concurrently with delivery of the securities to the purchaser. It also contains a graduated fee table under which a public offering price between $10,000,000 and $25,000,000 carries a fee of $42,750 plus $2.40 per $1,000 above $10,000,000.

The document discloses that the arrangement “may involve contingent based compensation subject to compensation based conflict,” noting as an example that recommending a multi-issuance strategy rather than a single issuance could result in additional compensation for PMA — a recommendation the firm states would be made only if the benefits exceed the costs, citing bank qualification, reduced negative arbitrage and meeting the issuer’s financial goals. PMA states it will not participate in an underwriting syndicate in connection with a negotiated purchase of the securities, consistent with MSRB Rule G-23.

The agreement runs until the closing of the securities, with continuing services under Section I.C. renewable for a maximum of three years beyond the effective date. Either party may terminate on notice, and no penalty attaches.

The college’s FY 2027 Bond and Interest Fund is budgeted at $7,268,050, including $7,090,000 in debt principal retirement and $175,050 in bond interest. In July, trustees approved the FY 2028 Resource Allocation Management Plan listing four remodel projects — Northwest Building, Northeast Building, West Building and Library — with college shares ranging from roughly $3.9 million to $5.25 million each.