Deadline for Property Tax Appeals in Avon Township is: September 22,2008

Referendums on ballot

Mundelein safety repairs: Mundelein Elementary School District 75 will present two bond propositions to voters on Feb. 5. One proposal calls for $6.6 million in bonds to make health and safety improvements to school buildings, including maintenance on the roof, plumbing and electrical work. A separate proposal asks for $3.3 million in bonds to add air conditioning to the school buildings. Opened in 1996, Lincoln is the only district school currently fully air conditioned.

Big Hollow working cash bond: Big Hollow School District 38 will present a working cash bond proposition of $10 million to voters on Feb. 5. Financial projections show that by 2013 the district will be $5.2 million in debt with slow to moderate growth in enrollment, continuation of a hiring freeze and further program cuts.

Volo home rule: Voters will decide whether or not the Village of Volo should be granted home rule status. If granted home rule, Volo could raise the sales tax one percent to help pay for $770,000 traffic lights at the corner of W. Molidor Road and Route 12, said Village President Burnell Russell. “That’s not an absolute. But we’ll probably raise the sales tax 1 percent,” he said. Other intersections he’d like to improve in Volo include North Fish Lake Road and routes 120 and 60.

Antioch Fire Protection: A proposal by the First Fire Protection District of Antioch Township would increase the limiting rate to .40 percent of the equalized assessed value for levy years 2008-2011. If successful, the referendum would more than double the district’s revenues from $659,817 to $1,425,632. If approved, the owner of a $200,000 home will pay an extra $80 the first year.A similar referendum was defeated last April.

Wauconda outdoor water park: The Wauconda Park District will present a bond proposition of $12 million to voters to build an outdoor water park at Cook Park and expand the park district’s Community Center. If approved the water park would include a zero-depth entry pool, lap lanes, diving well, three types of water slides and a lazy river, said Nancy Burton, director of parks and recreation. Expansion of the Community Center would include an additional multipurpose rooms and expansion of the fitness center. If approved, the owner of a $265,000 home would pay an extra $142 the first year, Burton said.

Newport Township town hall: Newport Township will present a proposition to voters to transfer surplus funds to Township Capital Projects Fund to build a town hall. The proposal would transfer $150,000 from the Road and Bridge Fund, $250,000 from the Gravel Fund and $50,000 from the General Town Fund into the capital projects fund.

Fox River Grove advisory question: The Village of Fox River Grove will hold a public vote on how funding will be appropriated for the purpose of planning and building the proposed Streets and Park Maintenance Facility.

Hainesville advisory question: The village of Hainesville will ask voters if the village should permanently obligate its taxpayers to participate in the Illinois Municipal Retirement Fund for the benefit of its employees.

Barrington recreational facility: The Barrington Park District will present a bond proposition of $12 million to voters to build a new recreational facility and renovate the existing facility at Langendorf Park.

Fox Lake library: The Fox Lake Library District will present a bond proposition of $14,975,000 to voters to build a new library and furnish it with materials and computers.

Deer Park sales tax increase: Voters will decide whether the village of Deer Park should raise the sales tax by .5 percent to be used on public infrastructure such as street and drainage improvements

The District 127 Board of Education is announcing a vacancy on the Board.

The Board of Education will be accepting your Letter of Interest for this School Board open position through Monday, August 6, 2007. Please send your letter of interest to Dr. Catherine Finger, Superintendent of Schools, at Grayslake Community High School District 127. Interviews of interested candidates will follow, and the Board hopes to seat its new Board member before September 1, 2007.

Fiscal watchdogs need not apply

Wanted: malleable school board member to fill recent vacancy.

With an operating budget exceeding $200 million and declining student enrollment, District 203 is now taking applications from people interested in filling a recent board member vacancy.

Applicants must be at least 18 years old and registered voters. Looking for team players willing and able to succumb to the peer pressures of Groupthink.

Seeking candidates with a core ideology that believes teachers are underpaid, and academic excellence is directly correlated to spending.

Applicant must be able to crumble under the pressure of 11th-hour contract negotiations. Treating the taxpayer like an ATM, and revisionist history skills, a plus.

Applicants with a business degree or financial expertise need not apply.

Mike Davitt
Naperville

GRAYSLAKE – District 127 will pay nearly $150,000 more than the lowest bid for a synthetic field turf at Grayslake Central High School.

In fact, the school board – following the recommendation of administrators – accepted the highest of five bids for the project.

• Team REIL Inc., $655,979

• Mondo, $693,428

• A-Turf, $768,500

• General Sports Venue, $768,700.

When School District 127 agreed to hire FieldTurf Inc. to install a synthetic field turf at Grayslake Central High School, it defeated the intent of the state’s competitive bidding law.

When the specs effectively eliminate all but one potential bidder … well, there is no incentive for that one company to submit a competitive bid.

Another spec required the base sand to be “51-60 percent of infill by weight.” Why 51-60? Who knows. Again, only FieldTurf complied with the highly detailed specification.

The odd thing, though, was that FieldTurf’s bid was so embarrassingly high, school officials made a counter-offer. And FieldTurf agreed to cut its price by more than $35,000 – still nearly $37,000 above the next highest bidder, and $150,000 higher than the lowest bid.

But did Grayslake Central need the best turf that money could buy?

Apparently so.

Next Tuesday, April 17, 2007 is VOTING DAY. I just want to let you know that I am a write-in candidate for the High School District 127 board election this coming Tuesday. Please write-in my name if you feel that I would be a good candidate to serve on your high school board. Attached is a pdf file on how to fill in your vote.

Members of the District 127 Board of Education balked at the $840,000 bid price for converting Grayslake Central High School’s football field from grass to synthetic turf ­– and shaved $35,000 off the top.

Trustees generally seem inclined to favor the vendor who submitted the higher bid because of their extensive experience and reputation for doing a quality installation. But the wide variance in cost was troublesome to the board.

The turf project is part of a $9.6 million renovation of the Grayslake Central campus on Lake Street to improve instructional, student support and sports facilities, as well as outdoor athletic fields. Project funds are coming from district reserves.

I see 3 questions in this whole matter.

First is the legal question. This question will be settled through the legal system.

Second is the ethical question. Regardless of the law, isn’t a governmental body, that exists to serve the community, ethically bound to make sure that it is fully exercising its fiduciary responsibility? In this case that would mean taking care not to award business without bid to an entity that serves to enrich the governmental establishment over the best interests of the taxpayers and community.

Third is the question of fiscal responsibility. We hear a lot from the district, especially since the passage of the referendum, about how fiscally responsible we are. How fiscally responsible is it to enter a no-bid contract with no price guarantees, especially a contract for energy which represents one of the district’s largest expenditures outside of labor costs?

This is the story in District 211. But the story is continuing in our state government. You should know that this very moment bills are moving in the state legislature that would raise the limit for which goods and services need to be bid to $25,000 and which also will exempt major items that school districts purchase from having to be bid including energy, professional services and food services. House Bill 261 and Senate Bill 48 are twins that contain these provisions. Our own local state representative Suzie Bassi introduced a bill that would have specifically required schools to have to bid on energy. After she introduced this bill, she was called to the district offices of D211 and met with the superintendent among others. After this meeting she promptly tabled her bill and signed on as a co-sponsor of House Bill 261. You see, District 211 is actively supporting HB 261, the bill that removes bidding requirements. Without explicit board approval, district personnel have been working to get this bill passed in the legislature even including testifying in front of the committee working on this bill. If this bill is passed, the cost of education rises in this state which means that your tax bills will also rise.

A bill that would change the way school districts negotiate for a critical source of land and revenue is raising eyebrows around the suburbs.

The legislation would require school districts to negotiate impact fees directly with developers and prohibit municipalities from imposing school impact fees. Currently, cities and villages can collect impact fees for schools; school districts cannot.

The bill also would require school districts to conduct an assessment of their needs to justify the fees or land donations they request.

Lindenhurst still pushes tax district

By Bob Susnjara
Daily Herald Staff Writer
Posted Saturday, December 09, 2006

Inadequate utilities and chronic flooding on land near Route 45 and Grand Avenue are two reasons Lindenhurst is proposing public subsidies to help a developer build upscale stores and homes there.

Explanations about why Lindenhurst would provide the financial assistance to San Diego-based OliverMcMillan for the Village Green project were provided to schools and other taxing agencies during a meeting Friday.

The incentives would mean fewer tax dollars for the schools and others, but development proponents say that still trumps what’s produced by 245 vacant acres.

“No one has been interested in developing that property for at least 10 years,” Lindenhurst village attorney Paul Phillips said.

Woodland Elementary District 50, Grayslake High School District 127 and Millburn Elementary District 24 leaders have banded together to fight a special taxing zone planned for Village Green. Officials contend their schools would be deprived of maximum revenue, with higher taxes for residents a possible end result.

Representatives from the schools, Lake Villa Fire Protection District, Lake County government and other affected public bodies met Friday as the special Lindenhurst joint review board. The 11-member advisory group — guided by state law — will issue a recommendation to the Lindenhurst village board, which gets the final word on whether the incentives should be granted for the project.

Gilman Bishop, senior project manager for Village Green, said OliverMcMillan made it known to Lindenhurst in January the project would require public subsidies because of challenges expected in developing the 245 acres northwest of Grand Avenue and Route 45.

In addition to chronic flooding and inadequate utilities, there has been a lack of community planning for the property, OliverMcMillan consultants said.

Lindenhurst Village Administrator James Stevens tried to assure the schools and other development opponents that no one is attempting to help OliverMcMillan any more than necessary.

“We don’t have any ill intentions here, I can promise you that,” Stevens said.

Village Green would have 838 homes and a 642,370-square-foot upscale retail center. The special taxing district for Village Green has been proposed to run from 2008 through 2031.

Woodland projects it would receive $51 million in property tax revenue from 2008 through 2031 if Village Green were built without the financial assistance. Instead, Woodland estimates it would receive $17 million over the 23 years.

Grayslake High, Woodland and Millburn officials will hold a forum for taxpayers to discuss the Village Green proposal at 7 p.m. Monday. The session will be at Grayslake North High School, 1925 N. Route 83 in Grayslake.

In a letter directed to parents this week, Grayslake High Superintendent Catherine Finger said the financial aid planned for OliverMcMillan could lead to an increase in District 127’s tax rate or “dramatic” staff and program cuts over time.

Lindenhurst would create a tax increment financing district for OliverMcMillan. Commonly known as TIFs, such districts are used to freeze the amount of property taxes a local government can get from the area for up to 23 years.

Property taxes continue to rise during the span of a TIF district. However, the difference between the frozen level and what’s paid to local taxing agencies is used for improvements within the designated area.

The answer is simple; the period to collect signatures has started. Although it only takes 50 signatures to run, you should get many more than this to make sure you are not kicked off the ballot.

In the Elementary District 46 the terms for Keith Surroz, Sue Facklam, and Cheryl Davis are finishing. None of them responded to my inquiry about whether they are running again.

In the High District 127 the terms for Russ Hager, Phil Lippert, Mike Hutchins, and Chris McClain are finishing. None of them responded to my inquiry about whether they are running again.

At this time, I do not know of any confirmed candidates for either D127 or D46. There are unconfirmed reports that a former school board member will be running to regain their seat on the D46 board. I have attempted to contact them, but they also have not responded to my inquiry. If anyone has information about other possible candidates please let me know.

First, let’s look at D46. Yes, they just abated the bonds where they exceeded voter approval. But, the term for 2 of those who voted to do this is expiring. They need to be replaced with fiscally responsible board members. If not, you will be faced with a referendum sooner rather than later.

You can read about many decisions the board has made and decide for yourself if they are doing their job the way you thought they would when you elected them. If you are like me, there are members on the board who are not living up to the promises they made the voters when elected.

Second, in D127, 4 board members terms are expiring. This is the opportunity similar to what happened in D46 2 years ago. If we can elect 4 fiscally responsible board members, we can finally hold the district fiscally responsible.

When they passed their last referendum in 2002, they took advantage of the loophole allowing them to take millions more than the voters approved. Members of the public were unsuccessful last December in convincing the board to be fiscally responsible.

This board has also exceeded their debt limit and overtaxed its residents with the use of bond schemes just like District 46 has done. At least District 46 has chosen to rectify this while District 127 spends money putting in synthetic turf and claiming they are not spending extravagantly.

Because of this, we need to elect 4 new members and take control of the board. The current members do not appear to care about the taxpayer and only care about the administration and teachers.

I took the time to pick up board packets from both D46 and D127. You can find all the documents you need to run at both D127News.com and D46News.com. This way you do not have to feel intimidated by having to identify yourself at the district offices. You can see the documentation needed and consider your options more clearly without any outside pressures or knowledge.

GRAYSLAKE — Parents and taxpayers of Grayslake Community High School District 127 students can look forward to five years of harmonious teacher-support staff labor relations following unanimous approval of a pacesetting new employment agreement Thursday night.

Both the board of education and the Grayslake Education Association agreed on the long-term pact by ensuring that all district employees will receive annual 2.25 percent salary increases for the next five years.

Allen foresees even closer cooperative relationships within the district and more stability in the teaching staff with less job-hopping to higher paying districts.

Trustee Chris McClain, who led the administrative negotiating team, agrees.

“Our negotiating process went very well. Both sides displayed mutual trust and respect for each other in achieving the common purpose of doing what is best for our students and taxpayers,” he said.

See You at the Pole™ is a student-initiated, student organized, and student-led event. That means this is all about students meeting at their school flagpole to pray—for their school, friends teachers, government, and their nation. See You at the Pole™ is not a demonstration, political rally, nor a stand for or against anything.

See You at the Poleâ„¢ is scheduled annually on the fourth Wednesday in September, which is September 27 in 2006. The suggested starting time is 7 a.m. If that doesn’t work for your school, choose a time that will work for your school, but let everyone at your school know!

Plans for more than 150 houses in northern Grayslake are in limbo as county officials hold power to grant sewer services to two projects.

• the Learning Resource and Media Center
• the guidance department and nurse areas
• P.E. locker and weight rooms
• some first-floor restrooms
• the varsity softball field
• a walking path next to the athletic fields
• press box and storage areas
• the concession stand
• a synthetic turf surface will be installed at Central’s main field
• a first-floor study hall space will be converted to an instructional and multimedia presentation room

Dr. Catherine Finger, Superintendent, stated: “I am delighted that we were able to work together to identify high priority areas for renovation in order to best meet the needs of every student, every day. Due to the strong commitment to fiscal responsibility, and quality fiduciary oversight exercised by the Board of Education over time, the district is able to fund these much-needed improvements using current funds on hand. This is another fine example of the strong community support enjoyed by students and school community members of this district.”

Grayslake school leaders aren’t yet ready to sign off on a village plan to give businesses tax breaks in an effort to draw them to town.

Grayslake Elementary District 46 officials want to huddle with the high school before considering approval of the measure, expressing skepticism that it’d even work.

“There are some huge transportation issues out there,” said district Business Manager Dan Aggen.

Don’t expect to find any candy for sale at either school. The district’s Wellness Committee decided it’s not good for your health.

The committee has recommended candy sales should be eliminated from the school bookstore and should be dropped from vending machines during lunch periods. The District 127 board of education recently agreed.

Never heard of the Wellness Committee? It’s a new committee required by state and federal legislation which was formed recently to develop new policies which will promote good student health and wellness. The law is effective with the opening of the 2006-07 school year.

The policy-recommending committee consists of district and school administrators, food service coordinators, health and physical education teachers, and some parents and students selected from both high schools. They will meet twice a year to review school health nutrition and recommend policies to the school board.

Based upon a wellness policy training session on the new legislation held recently at the county’s regional office of education, the committee then met to formulate and recommend policy to the District 127 Board of Education.

Goals include encouraging healthy habits and a maintaining a positive student attitude for living a healthy lifestyle.

That includes maintaining a balanced nutrition, stressing the importance of regular physical exercise, and investigating the possibilities of making suggested price increases on campus for un-healthy food to offset the higher prices of healthy choices.

What happened to promise of integrity?

Last year, voters approved a referendum for Oak Grove Elementary District 68, in which a higher tax rate replaced a paid off bond issue.

At that time the Daily Herald wrote prophetically that it could cost voters more than they were told to expect. In response, the superintendent was quoted as saying, “he didn’t realize the tax proposal could cost property owners more … the fact that we can take more than we ask for seems like a loophole, and error,” and is not the “moral and ethical thing to do.”

He further said that he had discussed the matter with Ms. Helander of Lake County’s administration to be sure the calculated tax would not exceed the promise. What encouraging words, but unfortunately without substance.

We were promised that the additional cost to the owner of a $500,000 house would be only $83 per year. I own such a house and now find that for the first year the additional tax is two and a half times as much.

So where is the “moral and ethical thing” on which the superintendent prided himself according to your article?

Once again, a school administration has played fast and loose with the truth and the tax payer has no recourse but to bear the burden.

W.A. Kollacks
Libertyville

The subject came up for informational discussion at Thursday night’s Grayslake High School District 127’s board of education meeting at Grayslake Central High School. The board took no specific action at this time. The Central Range, a 900-acre, $218 million project was first proposed by the village of Grayslake in January 2002. It envisions a variety of commercial businesses, some light industry and a minimum of upscale non-family residential housing for vacant land in the southwest corner of Grayslake.

Under it, the village, school districts, the park district and others who collect property taxes in Grayslake would agree to give breaks to potential new businesses based on how many jobs they create, revenue they generate and other factors.

The goal: Put a jolt into the commercial development of Grayslake so it doesn’t lose new businesses to surrounding counties and southern Wisconsin, where many communities already offer breaks of some kind, said Grayslake Mayor Tim Perry.

The mayor and his staff want to know by the end of June if everyone is on board with the concept so they can begin dealing with specifics.

If businesses will come anyway, Hager said, giving tax breaks would be like the district giving money away. But if there is no other way to be competitive, they’ll have to consider it.

“We’ll need to know more about how important this is to attracting commercial development,” he said.

“If you don’t look at the concept, you’re pretty much at the mercy of the forces around you,” he said.

This is tricky for school districts. EAV is taken into account for state aid purposes. If the district voluntarily abates a portion of the taxes–state aid may still be calculated on what the district could have collected. It hits the district harder for state funding purposes than a TIF does. The districts may lose more revenue than just the local abatement.

Also, if any of the school districts involved decide to place a referendum of any kind on the ballot in the next 10 years, would the central range property be exempt? Would the agreement extend the abatement to this too? Seems like the homeowners are carrying even more of the burden without any relief for the next 10 years.

GRAYSLAKE — Trustee Tom Meskel attended the annual meeting of the National School Board Association at Chicago’s McCormick Place last month and found that many of the problems facing Illinois school boards are common throughout the nation.

He said there was plenty of talk about the merits and mandates of “No Child Left Behind” federal legislation.

Other hot topics included school safety and student security, legal and legislative trends in school board administration, the usual financial issues, and dealing with growing press reports about teaching staff misconduct with students.

Meskel said Colin Powell, former U.S. secretary of state and a retired Army general, provided some stimulating thinking on world affairs as one of the keynote speakers. Conservationist Jane Goodall and historian David McCullough also enriched the minds of the school board members.

A former Grayslake Community High School teacher was ordered held on $50,000 bond Tuesday after being charged with molesting a student at the school.

Glick and a 17-year-old female student became close during a field trip to Chicago in December and developed a friendship, Fix said.

Police said Glick kissed the girl in his car in the school parking lot sometime in January, and then took her to another location in Lake County in February where they fondled each other.

District 127 officials accepted Glick’s resignation in early March without giving any indication why he was leaving.

They declined comment Tuesday, instead issuing a press release saying they would cooperate with future investigations and would “endeavor to provide a safe and harassment-free educational environment for all students and staff.”

There were other meetings between the two after February, Fix said, and concerns were raised among administration officials at the school.

Grayslake police say they found text, cell phone and e-mail messages discussing the relationship between the two.

Glick was told Tuesday if he posts bond, he is to have no contact with minors or the victim and is to remain in his home unless meeting with attorneys or to appear in court.

A 36-year-old Lindenhurst man was remanded to the Lake County Jail Wednesday after he was charged with sexually assaulting a sophomore girl while he was an honors English teacher and girls track coach at Warren Township High School.

James R. Lobitz has been charged with seven counts of criminal sexual assault and six counts of aggravated criminal sexual abuse, extending from Nov. 24, 2005, to Jan. 15, 2006. The more recent alleged incidents occurred after school officials had begun investigating the incident.

The victim is a 17-year-old girl who lives in a corner of Grayslake that is in the Warren district; she was 16 at the onset. Even after she turned 17, “consent” was not a legal issue, because Lobitz was in a position of authority over her, said prosecutor Patricia Fix.

The Board of Education of Grayslake High School District 127 decided Thursday night to join with the village and other taxing bodies by exploring the concept of abating some property taxes back to those new businesses which may locate within the village in the future.

Grayslake Mayor Tim Perry believes at build-out the project could contribute as much as $16.4 million annually in new school taxes to area schools, and generate more than 6,800 new jobs for the community.

Perry maintains that, “economic development is the only real and permanent solution to higher future tax bills in Grayslake. That is why this (Central Range) project is such a high priority for the village.”

He says development of the Central Range project will reduce the need for frequent school property tax referendums and provide additional funds for improving the quality of education in the community.

But Grayslake Elementary District 46 and Grayslake High School District 127 couldn’t just take what voters were willing to give.

But District 46 officials may change course.

After fielding questions from the Daily Herald about the premiums, District 46 officials now say they’re considering returning the money.

“The district is presently researching and considering its options in light of the new information on the premiums,” a news release issued Wednesday said.

Our Series

Today

Our study: We examine the 206 bonds issued by area districts since 2000, and three practices that drive up costs.

Snapshots: We take a closer look at two districts that received more than voters authorized.

Monday

Regulation: The most costly loan practices are legal in Illinois — but restricted or outlawed in many other states.

History: Illinois and bonds share a long and costly history.

Snapshots: We take a closer look at two more districts that received more than voters authorized.

Contacts: List of state lawmakers in the suburbs.

Tuesday

The reasons: School district officials discuss costly loans, saying a lack of state funding and a fast-growing student body have them between a rock and hard place.

Your districts loans: A comprehensive list of the 206 bonds issued by suburban school districts since 2000.

What you can do: A list of questions taxpayers might ask about upcoming bond referendums.

Since 2000, 81 districts in our coverage area have borrowed $3.34æbillion. The districts agreed taxpayers would pay back $6.03æbillion.

That’s nearly the same repayment rate — $2 per dollar borrowed — as a home loan, despite the federal measures that keep government rates low.

In the most costly example, taxpayers will repay $3.09 per dollar — or three times the amount borrowed.

$3.34 billion

The amount 81 suburban school districts have borrowed by issuing bonds since 2000.

$3.68 billion

Amount the districts received through the loans — and the cash bonuses many got for accepting higher interest rates.

$6.03 billion

Amount taxpayers eventually will pay back.

When municipalities borrow, they get a break that private citizens, businesses and even the U.S. government don’t.

Interest on municipal bonds is exempt from federal and most state taxes. That makes the bonds more attractive to investors, who are willing to loan their money at lower interest rates in return. The federal government gives these tax breaks to encourage municipalities to borrow — and spur investment in local infrastructure. As a result, local governments pay

about 25 percent to 30 percent less in interest, according

to the Congressional Budget Office.

The study: Of the 206 bonds analyzed, 55 involved the use of capital appreciation bonds —which charge compounded interest rates, or interest on interest. Of these, 18 were a mix of capital interest bonds and current interest bonds, which charge simple interest; 37 were fully capital appreciation bonds.

The cost: On average, taxpayers will repay $1.94 for every dollar borrowed in the 55 cases cited. When the practice is avoided, taxpayers will repay an average $1.41 on the dollar.

Bottom line: Using these averages, a $50 million capital appreciation bond loan would cost taxpayers $97 million.

The study: Of the 206 bonds issued over the past six years, 53 came with premiums of at least $1 million.

The cost: On average, taxpayers in those districts will repay $1.70 for each dollar the district received, including the premium. The average repayment of all other bonds was $1.50 per dollar.

Bottom line: Using these averages, taxpayers would repay $85 million on a $35 million loan that came with a $15 million premium. Would borrowing the whole $50 million be cheaper? Yes. On a standard

Valley View Community School District 365U told voters in 2002 that $143.2 million would cover the “total package” of the “last phase of the building plan for the district.”

Since then, the Romeoville-based district in Will County has borrowed $215.2 million — $72 million more than voters authorized via referendum.

He was referring to the cash bonuses — called premiums — that the district took in exchange for raising interest rates to their legal limit.

Later that month, the school board unanimously approved the issuance of $18.6 million in capital appreciation bonds, which came with a $20 million premium.

The bonus was larger than the loan itself.

The cost: The average of these 114 loans will require taxpayers to repay $1.77 for every dollar borrowed. Conversely, when at least half the debt is paid in the first 10 years, taxpayers will pay $1.28 per dollar borrowed.

Bottom line: Using these averages, a $50 million back-loaded loan will cost taxpayers $88.5 million. A more prudent loan would cost $64 million — a difference of $24.5 million.

Bonds: Long-term loans paid back generally in installments over a period of years. The total amount borrowed is broken into units called bond coupons, each bearing a stated interest rate and date it will be paid off. When it is due, the fixed sum of bond plus interest is paid. A municipal bond issue is usually composed of many bonds that mature over a period of years.

Bond counsel: A lawyer or law firm that delivers a legal opinion that deals with the borrower’s authorization to issue bonds and the tax-exempt nature of the bond. Counsel is retained by the issuer — in this case, the school district.

Credit rating: In order to help us assess the credit worthiness of a bond issuer, there are agencies that study the financial strength of bond issuers and assign credit ratings to them. The two major rating agencies are Moody’s and Standard & Poor’s. These agencies assign ratings to bond issues so that investors can determine the credit worthiness of an issue without having to do the analysis on their own.

Debt limit: Statutory or constitutional limit on the principal amount of debt that an issuer may incur (or that it may have outstanding at any one time).

General obligation bonds: The interest and principal payments for a municipal bond are typically either guaranteed by the issuer or by the revenue from a specific project. If they are guaranteed by a specific project, the bondholder is relying on revenue from the project to pay principal and interest, and the bonds are known as revenue bonds. If the issuer guarantees the repayment of principal and interest, the bonds are known as a general obligation (often referred to as G.O.) of the issuer.

Interest: Compensation to be paid for the use of money, usually expressed as an annual percentage rate.

Municipal bond: A bond issued by a state or local governmental unit.

Principal: The face amount of a bond, exclusive of accrued interest and payable at maturity.

Refunding bonds: New bonds to be used to pay off an outstanding issue by, essentially, replacing the outstanding issue with the new issue. Refundings are done to save interest costs, extend the maturity of the debt, or to relax existing restrictive limitations.

Underwriter: The securities dealer who pays the issuer the amount borrowed and then sells the equivalent amount in bonds to investors. The underwriter makes money by selling bonds to investors for more than the amount of the loan.

Yield: The annual percentage rate of return earned on a bond held by an investor. Yield is a function of a bond’s purchase price and coupon interest rate.

Sources: Investinginbonds.com and Yahoo! Finance

1. What do you really like about Grayslake Community High School District 127?
2. How is the transition from a one-high school to a two-high school district going? How has it impacted you?
3. What do you think needs to be improved in the district? What changes do we need to consider?
4. What would you like to make sure that I do as your new Superintendent?
5. What would you like to make sure that I don’t do as your new Superintendent?

The Board of Education and Administration has had extensive discussions each year regarding the levy.

In 2002/2003 it was discusses in several public meetings whether or not the levy should be phased in, or taken at one time.

[on page 2]

The Board of Education was not aware that phasing in the tax rate increase was an option during the referendum campaign.

The additional property taxes that were collected from phasing has gone into the fund balance and has not been spent.

It would ease the impact to the taxpayers, rather than levying the full amount at once.

It would maximize the property tax extension to prolong the need for an additional tax rate increase.

It would allow the Board of Education to maintain the original timeline of 5 to 7 years before seeking a tax rate increase.

It was a solid financial business decision made in the best interest of the students in the District.

By Mike Riopell
Daily Herald Staff Writer
Posted Friday, December 16, 2005

Grayslake High School District 127 officials say money they collected beyond what voters thought they had approved in a 2002 tax increase has yet to be spent.

And they say the extra money will delay the district from having to ask for another tax increase until 2010.

But some residents protested the annual tax levy at the board’s Thursday meeting for reasons outlined in a Daily Herald analysis last spring.

The analysis showed that in the Grayslake district in 2004, the owner of a $300,000 home paid $379 more than what had been approved two years earlier. The extra money came as a result of how the district has phased in the tax increase since 2002.

Resident Lennie Jarratt said that while the district hasn’t broken any laws by taking the money, doing so is unethical.

“Yes, I understand it’s legal,” he said.

But officials say that money hasn’t been spent and it remains for use by the district in the future, sort of like savings in an account.

Associate Superintendent for Business Affairs Michael Zelek said that when the district asked for more money in 2002, officials expected to have to ask for even more by 2007.

They say the extra money should push back the need until 2010. He called continuing taxation above the likely approved rate a “solid business decision.”

But Jarratt and others expressed their frustrations afterward, saying if the money hasn’t been spent yet, the district doesn’t need it. They say the district should lower its tax request so as to not collect extra money.

Most of the protesters Thursday wore green to symbolize the green line on a chart that represents the amount officials told residents they’d likely pay as a result of the increase.

The district board approved the levy without dissenting votes, and board President Russ Hager said it will continue to manage money the same way.

“We work very hard to keep our operating costs down,” Hager said.

By Mike Riopell
Daily Herald Staff Writer
Posted Tuesday, December 13, 2005

A group of Grayslake High School District 127 residents are asking officials there to cut back their tax rates, saying they’ve taken more than voters thought they approved in a 2002 referendum.

Grayslake resident Lennie Jarratt says the district has taken more taxes than it asked for in 2002 and wants the officials to lower their rates to make up for it.

Realistically, though, Jarratt said he knows he might be asking a little too late. The district board is set to ask for the money Thursday.

Grayslake High School District 127 was one of 25 suburban school districts identified in a Daily Herald analysis last spring showing some districts take more money from taxpayers than voters give them permission for in referendums.

It showed the tax increases, phased in over five years, eventually yield more money for governments than voters likely approved.

For example, an owner of a $300,000 house in the Grayslake district paid $379 more than was asked for in 2002.

Board president Russell Hager questioned the accuracy of those numbers last week but did agree people had probably paid too much.

He wasn’t sure whether the board would take any action Thursday when it’s slated to make its annual request for money.

“At this point, I can’t tell you if it’s going to happen or not,” he said.

An advisory committee passed a higher levy without discussion earlier this month.

Jarratt encouraged his supporters to wear green to Thursday’s meeting, a symbol of the green line on a chart that represents the amount officials told residents they’d pay as a result of the increase.

He took the strategy from Hinsdale District 181, where residents persuaded the school board to roll back taxes.

“It’s a great concept,” Jarrett said.

Cris Tajnai hopes to attend. She says it’s hard for average voters to understand all the numbers but hopes legislation in Springfield will fix that.

Such legislation stalled this spring, but it could move forward when the General Assembly meets again in January.

A question of necessity
Grayslake High superintendent concerned about past activity fund spending, considering probe

By Bob Susnjara
Daily Herald Staff Writer
Posted Monday, December 12, 2005

Grayslake Community High School Superintendent Catherine Finger said an independent investigation might be needed to examine questionable activity fund spending in past academic years.

Finger said she was unaware of some iffy activity fund expenditures until they were brought to her attention by the Daily Herald last week. She said her “high level of concern” has made her consider seeking an outside expert to review spending in District 127.

“As a new superintendent, I look at this and see the level of items both that were not approved and the items that were approved in the past that I think are not appropriate,” Finger said.

If Grayslake District 127 pursues a scouring of its activity funds, the action would be similar to what occurred a year ago at neighboring Warren Township High School in Gurnee. A probe by Lake County prosecutors followed a Warren special investigator’s report.

Ex-Warren District 121 Principal Philip Roffman recently was indicted on a felony theft charge alleging he misused $400 in activity fund money on theater tickets. Prosecutors said he is expected to plead guilty Thursday as part of a negotiated deal.

Some of the questionable expenses at Grayslake High in past academic years came from the girls basketball student activity account, according to school documents obtained through the Freedom of Information Act. Many of the expenses in the girls hoops account and others lack detailed justification.

Under state law, student activity accounts are supposed to be used by a school organizations and clubs for educational, recreational or cultural purposes. Convenience account spending by adult school employees — drawn from activity funds — is supposed to have a student connection, such as pizzas for a sports team.

District documents state the girls basketball account was placed under direct supervision of Athletic Director David Perkins in February “due to the inappropriate use of funds” by former coach Michael Hirsch, who also was a driver education teacher. He isn’t accused of any criminal wrongdoing.

A copy of a check attached to school documents indicates Hirsch repaid Grayslake High for a $100 Bass Pro Shops Outdoor World gift card he bought with activity fund money for a former girls basketball assistant coach who is a district teacher.

Moreover, Grayslake High records show Hirsch repaid $33 he received in public money to cover a bill from Hooters near O’Hare International Airport. The Hooters tab and gift card were paid by the school in July 2004. Documents didn’t provide detailed justification for the expenditures.

One bill submitted by Hirsch that District 127 refused to pay would have had public money cover an evening of alcohol and food at Buffalo Wild Wings in Round Lake Beach. School documents show Hirsch sought a $184 reimbursement for a “coaches dinner/meeting” that he wrote involved the girls basketball staff in January.

The paperwork submitted by Hirsch also listed the name of a girls basketball student manager who purportedly was at the Buffalo Wild Wings gathering where whiskey, beer, shrimp, fish, chicken and a couple of soft drinks were consumed.

Finger said she is troubled the documents indicate current and former Grayslake High faculty members could have been with a student at a function involving alcohol. She said administrators need to question the current high school teachers who reportedly were at Buffalo Wild Wings.

“That’s in violation of everything we stand for. It just is,” Finger said.

Hirsch, 32, declined to comment and referred calls to his attorney, Joel Handler. Hirsch, who joined Grayslake High in 2002, led the girls basketball team to its first trip to the state tournament in 2004.

Now an assistant boys basketball coach and driver education instructor at Zion-Benton Township High School, Hirsch was fired from District 127 in February. He coached the men’s basketball team at Harper College in Palatine before resigning in the middle of the academic year in January 2000.

Hirsch has filed a defamation lawsuit against Grayslake High’s Lake Street campus Principal Randy Davis, two parents and two girls who played for him, contending they caused his firing.

Court documents state Davis wrongly accused Hirsch of trying to misuse $22 in girls basketball money for pizzas delivered to his Lindenhurst house in November 2004. Grayslake High isn’t named in the suit, which Handler declined to discuss.

“I would not be doing a service to my client by going around and giving theories about my case,” Handler said.

Tighter controls over activity fund spending are now in place at District 127. The changes became effective at the beginning of the current academic year.

Michael Zelek, the district’s associate superintendent for business affairs, said sports coaches and others who use activity funds now must receive advance approval for expenses.

Activity fund expenses that no longer are allowed include meals and refreshments for coaches meetings, clothing for people not connected to Grayslake High teams, and athletic tournaments outside regularly scheduled games. Gift cards for pupils must have proper documentation and prior approval.

Zelek said employees also no longer can seek reimbursement after ordering equipment or supplies for District 127 and having it delivered to their homes.

Ex-football coach Vito Andriola Jr. was issued a $2,932 activity fund check after purchasing a camcorder, digital VCR and equipment box shipped to his West Dundee house in August 2002. Grayslake High has the electronics.

Andriola, who was dismissed from District 127 in February, now is a driver education teacher at Glenbrook South High School in Glenview. He said he used his credit card to buy the video equipment and then sought the reimbursement from Grayslake High.

“It’s quicker to have it done that way,” Andriola said.

Some employees didn’t immediately understand the need for a stricter activity fund spending policy at District 127 when it was explained before school started, Zelek said.

“We had coaches and sponsors who were used to the old way of doing things,” he said. “They felt it was an extra step. But, again, it’s to protect them. It’s to protect the district.

“It’s also putting the controls in place to make sure the expenditures are appropriate.”

Zelek said a Pepsi contract and fund-raisers generate $350,000 to $400,000 in annual revenue that’s spread throughout Grayslake High’s activity funds.

District 127 board President Russ Hager declined to comment on the activity fund spending.

Dist. 127 support staff pushes for first contract

By Mike Riopell
Daily Herald Staff Writer
Posted Friday, October 07, 2005

Support staff and administrators are closing in on terms for a new contract for Grayslake High School District 127 secretaries, hall monitors and computer technicians.

It would be the first contract for the support staff’s new union, headed by district secretary Rae Martin.

As the district grew and so did the number of support staff, the need for a union became evident, she said.

The new contract, which Martin hopes will be approved “fairly soon,” will last until the end of the school year. Then it will be renegotiated at the same time as the teachers contract, which runs out at the end of the school year.

Martin said the support staff contract will almost certainly contain a salary increase for the nearly 60 employees who qualify.

The talks have been delayed, in part, because this summer the district hired Superintendent Catherine Finger, who had to spend some time acclimating herself to the district and the negotiations.

Martin said the transition has been smooth.

Assistant Superintendent Laurie Kimbrel didn’t want to release details of the negotiation, but said the end is near.

“Everything is going extremely well,” she said.