Post by title1parent on Jan 31, 2009 8:27:50 GMT -5
www.suburbanchicagonews.com/beaconnews/news/1405842,3_EL30_St-Charles-District-Board-bond-.article
St. Charles Dist. 303 board OKs bond referendum
Bond sale would hinge on low interest rate
January 31, 2009
By JANELLE WALKER For The Courier-News
ST. CHARLES — After four hours of discussion Thursday night, and much back and forth regarding the country's current economic woes, the St. Charles Community Unit School District 303's board of education voted unanimously to ask residents whether borrow $114 million in construction bonds.
At the same time, the board directed the attorneys who would sell the bonds in the open market not to do so unless the district gets a favorable interest rate — less than 6.25 percent.
It is the board's duty to put a referendum on the ballot in the April election for residents to weigh in on, said Kathy Hewell, board president.
"We are putting it out there for the community to vote on because they asked us to," she said.
In a recent phone survey of district residents, 70 percent of those questioned said they would support a non-tax increase construction bond referendum.
The final bond referendum number was arrived at by including renovations or complete rebuilds to Thompson and Haines middle schools, but technology and security improvements only at Wredling Middle School. It also recommends a complete reconstruction for Davis Elementary School.
That number also means the district can borrow the money in bonds without raising the current tax rate. Instead, as old bonds come off the books, residents would not see a corresponding decrease in their school district portion of the tax bill.
Board members said they realized that economic times are hard, but that there was too much opportunity that could be missed by not asking voters to consider construction bonds now — including the possibility of missing out on federal economic stimulus funds.
It is his understanding, said Superintendent Don Schlomann, that construction projects that are "shovel ready" and that have passed a referendum would be more likely to get a share of any federal stimulus package. However, he added, most school construction stimulus help will likely go toward schools with higher numbers of low-income children. District 303 has a very low percentage of low-income students.
"I wish I could be sure," about the possibility of stimulus funding, Schlomann said, adding that he has spoken with the local congressional delegation regarding the issue. "There are some individuals who feel it will be some sort of matching funds at state or community level."
There are pros and cons to going to referendum now, said board member Jim Chimienti.
Cons, he said, include the fact that taxpayers wouldn't see a decrease in their tax bills once the old bond area paid off. Pros include lowered construction costs — up to 10 percent based on architect's current information.
The board did not follow exactly the facility recommendations made by the year-long Summit 303 process. Instead, members picked the projects they felt are the most pressing that could fit within a $120 million window.
Seven residents also addressed the board of education Thursday night, weighing in on whether the district should seek the construction bond referendum on April 7, and on the Summit process in general.
"The space issues don't allow us to wait another year, or another six months. Data showed in Summit 303 that we are in a dire need of space," said Deb Leveille, a Davis Elementary School parent.
St. Charles Dist. 303 board OKs bond referendum
Bond sale would hinge on low interest rate
January 31, 2009
By JANELLE WALKER For The Courier-News
ST. CHARLES — After four hours of discussion Thursday night, and much back and forth regarding the country's current economic woes, the St. Charles Community Unit School District 303's board of education voted unanimously to ask residents whether borrow $114 million in construction bonds.
At the same time, the board directed the attorneys who would sell the bonds in the open market not to do so unless the district gets a favorable interest rate — less than 6.25 percent.
It is the board's duty to put a referendum on the ballot in the April election for residents to weigh in on, said Kathy Hewell, board president.
"We are putting it out there for the community to vote on because they asked us to," she said.
In a recent phone survey of district residents, 70 percent of those questioned said they would support a non-tax increase construction bond referendum.
The final bond referendum number was arrived at by including renovations or complete rebuilds to Thompson and Haines middle schools, but technology and security improvements only at Wredling Middle School. It also recommends a complete reconstruction for Davis Elementary School.
That number also means the district can borrow the money in bonds without raising the current tax rate. Instead, as old bonds come off the books, residents would not see a corresponding decrease in their school district portion of the tax bill.
Board members said they realized that economic times are hard, but that there was too much opportunity that could be missed by not asking voters to consider construction bonds now — including the possibility of missing out on federal economic stimulus funds.
It is his understanding, said Superintendent Don Schlomann, that construction projects that are "shovel ready" and that have passed a referendum would be more likely to get a share of any federal stimulus package. However, he added, most school construction stimulus help will likely go toward schools with higher numbers of low-income children. District 303 has a very low percentage of low-income students.
"I wish I could be sure," about the possibility of stimulus funding, Schlomann said, adding that he has spoken with the local congressional delegation regarding the issue. "There are some individuals who feel it will be some sort of matching funds at state or community level."
There are pros and cons to going to referendum now, said board member Jim Chimienti.
Cons, he said, include the fact that taxpayers wouldn't see a decrease in their tax bills once the old bond area paid off. Pros include lowered construction costs — up to 10 percent based on architect's current information.
The board did not follow exactly the facility recommendations made by the year-long Summit 303 process. Instead, members picked the projects they felt are the most pressing that could fit within a $120 million window.
Seven residents also addressed the board of education Thursday night, weighing in on whether the district should seek the construction bond referendum on April 7, and on the Summit process in general.
"The space issues don't allow us to wait another year, or another six months. Data showed in Summit 303 that we are in a dire need of space," said Deb Leveille, a Davis Elementary School parent.