CCSD #46 BOE Meeting Notes 3/20/2006

Below are my notes from the school board meeting tonight. If there are corrections or additions please let me know. My comments will be [italicized]. I believe the Daily Herald will have an article in tomorrows paper about the bond discussion.

B. Roll Call

• Kristen not here because of a work conflict
• Keith will be late

E. Approval of Agenda

• Approved (5-0)

F. Public Comment

• none

G. Consent Agenda
    a. Approval of Treasurer’s Report
    b. Approval of Accounts Payable
    c. Approval of Personnel Report

• Keith Arrived just before this
• Approved (6-0)

H. Superintendent/Board Report
Cheryl

• None

Sue

• Wish the students, parents, staff a good week off next week

Jill

• Nothing

Keith

• Congratulate new board members on serving almost a year
• Ideas for sponsoring a classroom, more to come later

Mark

• Nothing

Karen

• Wed. March 22nd event from 1 -3 [I missed the event name and location. If you know it please email it to me or leave it in the comments]
• Congrats to Science Olympiad going to State

Ellen

• Congrats to Science Olympiad going to State. Frederick placed 6th and the Middle school placed 4th
• Middle School received a 1 rating in the Grade school music competition; will be going to regional April 9^th
• Dan and Ellen attended the planning commission meeting in Grayslake, 231 homes approved, 60 more to be approved later
• Meeting with Mayor Gentes this week about housing and busing.
• Met with reps of ComEd today; They are putting in a substation on their right of way NE section of Avon; Were told to make sure to put up a fence high enough to keep out kids; Silence barrier to prevent hum; Land scaping
• FOIA by 2 people for Special Ed presentation material, monies received, bond information and support staff names and location, salary levels, benefits, policies, etc.

I. New Business
    a. Discussion Items
        i. Ruck Pate Architects – Update on Madrona

• Fred Schuster of Ruck Pate
  • Much inside work lately, roof on, building enclosed, masonry 1st floor, mechanical being worked on, masonry exterior started and tall walls between gym
  • Upcoming – finalizing furnishing package, need remaining staff input before summer vacation, bids in fall
  • Life safety review, will present later when ready
• Mike ???
  • windows in
  • permanent water activated
  • perm power
  • concentrating on center section
  • completing LRC then gym and finally admin last
  • concrete start in 1 month
  • under roof by sept or oct 1
  • furnishings next spring
  • everything on schedule

ii. Bond Discussion – Elizabeth Hennessy will be moderating the discussion
[I will get a copy of the actual presentation later. I wrote these as fast as I could, but some may not be 100% correct.]

• She flipped through Presentation
• Final debt service structure (p.2) on 2005 issued bonds including $8.1 million from 1999 bond authority
• New payment/interest rate 0.59 as promised
• p.3 Bond Premium – demanded by investors (diff of coupon and yield)
• p.4 Look at how premium fits into overall bonds need
• 3 parts
  1. par
  2. interest
  3. then net premium
• Premium was $1.133 million for 2004 bonds
• 1999 authority, project uses stayed the same as promised
• 2005 sized exactly as the amount approved
• Refunded $5.3 Million also premium, Capitol Appreciation bonds with 0 coupon bond and premium
• Keith – What bonds refunded? Answer – portion of several bonds refunded to achieve the 59 cents tax rate target.
• CAB vs Premium on p 1
• Interest 3.4 M
• Refunds – deferred some payments and paying later to keep rate same for taxpayer
• This was the most cost effective in saving money and keep the 59 cents
• p.5 other outstanding bonds – coordinates with audit
• 1994 bonds – $3.266 million issued, $34 K premium, $3.3 M total par amount
• 1995 bonds against 94 auth
• 1996 – $4,696 issued, Premium of $46 K, $2.929 M part used under ref authority, $1.7 M refunded old bonds
• 1999 issue, $5.749 M principal, $3.805 M premium, $ 8.555 M total par amount
• We pay back loan not premium because of higher interest rate being paid
  Ex. 100K principal, 120K actual money in, interest 7% instead of 5%, only pay principal back of $100K
• $1.8 M back to 94, $3.8 M to 1999 referendum
• Premium does not account against debt limit
• Previous bonds issued premium bonds to get past debt limit
• 2000, 2001, 2002 Bonds premium was used to get past debt limit and borrow more than actually approved.
• 2000 – $9.4 M par, premium $2.8 M, $5.6 on Site and Construction projects, Refunded $6.3 M (probably done to keep tax rate same) legal amount was $3.6 M of referendum [$2 Million above voter approved amount]
• 2001 – $3.9 M principal, 3.1 Premium, 7.?? Site and Construction projects
• 2002 – $1.784 M premium
• Total 6.899 Premium from 2000-02 bonds
• 2000-02 p.7 summary
• 94-95, no additional premium to projects
• Options from here – need to discuss project needs first, if return, then how much and how
• Jill – What is time frame to abate? Answer – 1 yr is shortest up to 20 years. Must approve abatement resolution and then file with county clerk.
• abatement – clerk reduces level of tax levy, money comes out of SIte and Construction to pay bonds
• could only use 1999 bond authority on Frederick, Prairie View or purchase land
• Cheryl – What is your professional opinion on what we should do? Answer – Professional opinion on reason for premium bonds – personally feels bad about missing premiums; relied on bond council; were issued in good faith at time; need to look at future needs; bonds issued legally; if needs exist use money; if not pay it back.
• Cheryl – don’t rush into judgement on abatement
• Jill – What if the public does not want it spent since it was more than they approved?
• Cost to abating – no cost; slight cost to defeascence escrow; can shorten debt with extra interest earned with bonds in bank; 2005 bonds callable; others are not.
• Provided 3 abatement options, have to decide who gets the benefit:
  1. current taxpayers
  2. future taxpayers (defeascence plan)
  3. all taxpayers over 20 years
• Recommend future because it gives the best benefit in reducing costs over time
• Could do this on a year by year basis if done future
• Jill – Have you seen district that overbuild? Elizabeth – Lake Forest high campus not used for classes, not usually seen in unless built out districts [Naperville built a school that sits empty currently, not enough growth to support it for several more years]
• Sue – have example here, D47 needed space, consolidated with D46 because of that need and D46 had an empty school
• Keith – Do we need this money? We can’t hang on to this money to see if we can find a project to use it for. Pre-K issue needs to be resolved
• Jill – Previous admin had process moving forward on addition to Woodview; questions never answered by them on where money was coming from; centered around needs of Pre-K; could not use Madrona money for additions. We can’t forget to ask if the taxpayers approved this?
• Cheryl – “If not done illegally, that’s kind of a catch there right?”
  

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