041221wj

11/24/2004

Nothing certain, but District 90 lays groundwork for 2006 tax referendum

By BILL DWYER

With a bond sale behind them, producing a replenished working capital fund, the District 90 school board turned its attention to long-term financial stability last week.

The Dist. 90 Board of Education sold $7.15 million in general obligation, limited tax bonds on Nov. 15. The bonds, underwritten by Harris Bank of Chicago, will go into the district's working cash fund. Philip R. McKenna of Kane, McKenna and Associates, which handled the sale, said the district got a very desirable rate of 3.26 percent on the bonds.

District Finance Director Anthony Cozzi confirmed Tuesday that the district has the $7.15 million in hand.

After the Nov. 15 meeting, the school board began contingency planning for a possible 2006 tax referendum, convening an Education Committee session to review their Strategic Goals Summary. Board members quickly agreed that fiscal concerns "should move to the top," of the agenda, and spent the better part of an hour hammering out a consensus on how to proceed in that area.

The board discussed the time frame for establishing a fiscal action committee and scheduling work in the most effective manner in the event a tax referendum is required in November, 2006.

Both Cozzi and Superintendent Marlene Kamm reminded board members that a tax referendum wasn't inevitable, that there were other alternatives. Those alternatives, however, seemed to be limited to finding additional revenue streams or cutting programs.

Speaking last Tuesday, Kamm praised the fiscal discipline of her predecessor and the school board, saying, "This district's been very frugal and done a tremendous job keeping finances under control." Their efforts have been hampered, she said, by tax caps, which limit the annual rise in property taxes the district can collect to either 5 percent or the Consumer Price Index, whichever is lower. Last year that index was 1.7 percent, and is expected to be no higher than 1.9 percent this year.

Still, Kamm said, all alternatives were being considered. "A referendum is just one possible [method] people are bandying about. There will be a task force to look at our current financial condition, and projections 2-3 years out. And we'll brainstorm what the district can do."

That task force, which will be seated in September of next year, will ultimately be charged with recommending ways "to make us solvent," said Kamm.

While board members discussed how to structure a detailed assessment of the district's financial condition, it seemed clear that they were working with the expectation that a well-thought-out case for a referendum to present to voters would likely be required. Some members wanted the overall process started earlier rather than later; others argued against wrapping up the committee's work too early. The board went back and forth for over 20 minutes, struggling to decide whether to start the process next April, or wait to seat a committee next September.

"I think you need a critical momentum," said board member Kristin Coe, referring to the possible referendum.

Contact: bdwyer@wjinc.com