No word yet on Big Hollow cash request
Big Hollow board officials said it would be about a month before they can make a final decision on how much money they are seeking from taxpayers on the Feb. 5 ballot.
Officials said during a meeting Monday night that because of an audit not being completed until late last week, district financial advisers did not have time to put together the updated numbers needed to help them determine how much they want to inflate the tax rate.
Instead, the board will make a final decision on the tax rate increase they will seek Nov. 19, as long as everything goes according to plan.
"Next week at the board meeting to review the assumptions given to us from the financial advisers with the board," said board president Vickie Gallichio. "Then, we will have accurate numbers discuss the amount of money to seek during the referendum."
She said the new schedule is that the financial advisers will give an updated financial overview for board members Oct. 22. The board will respond to the numbers, and they will be updated again Nov. 5. The new numbers will be reviewed again, and the financial advisers will return Nov. 12 for an updated presentation. The board then will make a final decision on the amount of the tax increase they would like to see Nov. 19.
However, district officials did decide they would seek a straight tax rate increase to fund school operations, and not just for a $10 million cash loan to help get them through the next five years.
Officials were tossing around the idea of borrowing $10 million, then asking residents to raise the property tax rate by 15 cents per $100 equalized assessed valuation of a home.
The initial idea was to pay off the $10 million bond over the course of five years, but Gallichio said, after running the numbers, a 15-cent increase would not pay off the debt in five years.
Instead, she said the district's current construction debts would need to be refinanced and people would have to pay off that $10 million loan over the course of 17 years.
The board agreed with her during an informal vote. But, because it was an informal vote, the board could discuss the working cash loan again should the financial advisers find another way to handle the loans.
District officials also discussed whether the money from the impending sale of their vacant property at the corner of routes 12 and 134.
The district expects to sell the highly visible 10-acre property -- located at the most major commercial corridor in Fox Lake -- for more than $5 million.
The district was told by the financial advisers to put 60 percent of the money in the operating fund, while putting another 40 percent in programs for the students. Superintendent Ron Pazanin said the full 100 percent should be put toward students and previously cut programs should be reinstated.
The board said they would review the discussion further as the sale of the route 12 property comes closer to reality.
"This is why we need our financial advisers out here," Gallichio said. "There are numbers we need to make sure we make the best decisions."