March 24, 2013

 

STRONG ENDORSEMENT FOR SCHOOL DISTRICT CAUCUS CANDIDATES

 

The undersigned are in complete support of the caucus candidates for board member positions on the Lake Bluff District 65 board of directors.

 

Collectively and individually, they bring a rich array of talents, accomplishments, business and teaching experiences, and community service, both elected and volunteer, to the responsibilities at hand. By no means can they be considered single issue candidates, as the opposition has attempted unsuccessfully to portray. Their dedication is clearly to both academic performance and fiscal responsibility. Those are not mutually exclusive objectives.

 

The community will benefit greatly from the services of all of these candidates. It is very important that all of them be affirmed by your votes to serve for the next critical four years, for our school and the community.

 

Julie Gottshall               Chris Letchinger

Rich Hegg                      John Marozsan

 

We have no doubt whatsoever that they will bring a level of openness and transparency to board communications with all stakeholders, that has been sadly lacking in recent years. With the arrival of our new Superintendent Dr. Jean Sophie, who has demonstrated a commitment and capacity to reach out to all members of the community, the next four years will bring about very positive changes to School District 65.

 

FISCAL MATTERS

 

The financial condition of the district is very likely worse than most taxpayer/citizens are aware. It has now come to be known that the debt service schedule associated with the elementary school construction referendum in 2008, is distinctly different from what was represented to the public.

 

Previously unannounced, was a debt repayment schedule of the original debt of $24,400,000, that instead of a traditional mortgage repayment schedule of equal annual payments, was heavily financed with a back-end loaded repayment schedule. This effectively delayed the bulk of the repayment schedule to the final 10 years, and artificially reduced the amount of true debt annual expense. (As of 1/1/2013, $24 million of the original 2008 principal of $24.4 million bond remains outstanding!)

 

In addition, in January 2010 the current board including the incumbent candidates, quietly approved a refinancing of $2,750,000 of the debt, with interest only payments for 19 years and a single balloon principal payment in the final year. The purpose was to maintain an artificially low debt service payment for that amount ($118,000) for the 19 years of its term, non-callable (i.e. no prepayment option.)

 

The incremental, additional cost of these actions to taxpayers is over $5,000,000 over the life of the combined debt. Those are monies removed from any option for use as enhanced academic resources, as so emphatically espoused by the incumbent candidates for re-election.

 

 

FUTURE INCREASES IN DEBT SERVICE OBLIGATIONS

 

In 2016, the annual debt service payment of principal and interest will increase by $777,000. By 2023 it will have increased another $800,000 annually, and the final payment in 2027 will be $3,146,000 vs. $1,052,000 in 2013. These are all contractually obligated payments backed by future taxes of School District 65 homeowners.

 

The debt schedule for these payments was prepared by the underwriting firm of William Blair Co., and a copy is available for those who wish to examine the detail. Simply reply to this e-mail and it will be E-mailed to you without delay.

 

DISTRICT STRATEGIC PLAN

 

The school District has just this week released their 23 page strategic plan, prepared with the assistance of an outside consulting firm. Notably absent from the plan is any identified action to deal with this debt repayment matter. It is of interest to note that 83% of the community members who participated in the project survey, do not agree that the District is financially responsible. (The inverse of the 17% who believe it is.) Reference page 13 of the plan document..

 

In response to that shocking reality, the board adopted strategic goal for finance has been only defined vaguely as “5. Establish metrics to monitor District health.” (page 20 of the document.)

 

It is quite clear to us that the incumbent candidates have no grasp of the problem and certainly no plan to address it. The view of the non-parent community is quite apparently of no interest to them in guiding their perception of priority issues.

 

This election is of crucial importance to our community. We are facing a two edged sword of declining academic performance and stranglehold taxation, which is making it difficult or unattractive for young families to invest in Lake Bluff .

 

Please DO NOT SIT OUT THIS ELECTION – Every vote is of vital importance.

 

A ballot by mail option is available for those who wish that convenience, by simply going to the county website at countyclerk.lakecountyil.gov, requesting download of the ballot application and mailing it in when completed. There is still time for that option as of this writing.

 

Should you desire a yard sign, please contact deb.dintruff@comcast.net  or dpco1@aol.com.

 

Thank you for your consideration of these important facts. We encourage your vote in the April 9h election for quality academics, fiscal responsibility, and communications transparency. Please vote for the above endorsed candidates to effect much needed change in School Board leadership.

 

Respectfully,

 

Concerned Lake Bluff Taxpayers

 

Ed Holstein             Bill Minor                  Bob Troyer          David Forlow

Kathy O’Hara        David Barkhausen    Neil Dahlmann    David McElvain     

 

 

 

 

 

 

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