Oswego D308 to spend $12.7M to replace 72 buses as district, demand grows

Oswego School District 308 needs to replace 72 buses in its fleet before the new school year this fall.

At its April 28 School Board meeting, the board unanimously approved a five-year lease agreement to replace the buses at a cost of about $12.7 million.

“As the district continues to grow, we anticipate a higher demand for buses this year and must ensure our fleet is equipped to meet these evolving needs,” Transportation Director LaShone Mosley and Chief Financial Officer Raphael Obafemi told board members.

District 308 serves more than 18,000 students and is the seventh largest school district in Illinois. The district covers 68.8 square miles.

The school district is set to receive the buses by July from its long-term supplier, Midwest Transit. Obafemi had previously told board members there were discussions with multiple lenders to negotiate the most favorable lease rates.

“We reached out to finance companies and tried to get some comparative pricing,” he said. “We went back and forth. The initial rate we got was close to 6%.”

The district was able to secure an effective rate of 4.2% with American Capital, which will result in a savings of about $821,000.

In the past, the transportation department has leased buses for five years and then given them back. This time, Mosley said the department plans to initiate a buy-out agreement at the end of the lease as a way to save money.

“We will own them for an additional five years,” she said. “We’re going to save a lot of revenue in the district.”