Big Hollow school's sale won't solve financial woes

Big Hollow officials are cautioning residents against thinking the sale of the Route 12 school property will solve the district's financial problems.

Big Hollow Elementary District 38 Superintendent Ron Pazanin said voters have been calling to ask if the tax increase measure on the Feb. 5 ballot is still needed.

The answer, he said, is yes. He said the $5 million expected from the sale isn't enough to get the district out of the hole. And, he added, even if the sale goes smoothly, the district would not see the money until November at the earliest.

"I am following the adage of 'don't count your chickens before they hatch,'" Pazanin said. "The district still has money problems. We still need to borrow money to pay our bills this year. And the needs are still there for the working cash bond."

District 38 is asking voters for permission to boost property taxes to fund a $10 million working cash bond.

If approved, property owners would see annual taxes paid to the district increase by 54 cents per $100 equalized assessed valuation. That's a tax increase of about $380 annually on a $280,000 home.

Voters have shot down four education fund requests since spring 2002, including two since November 2006.

The 12-acre site at Route 12 and Big Hollow Road is home to the former primary school and Taveirne Middle School. Both buildings are vacant.

The property has been vacant for one year but up for sale for only three months. It was sold in December to the Oxford Group of Buffalo Grove.

Village officials said developers plan to the turn the parcel into a retail center featuring a restaurant, an auto service shop and possibly a clothing store.

Pazanin said the sale could offset the bills accruing for about 18 months, but the end result is the district still needs more money to stay afloat for the next five years.

"The working cash bond is only a temporary fix until the state can change the way schools are funded," he said. "If everything plays out accordingly with the Route 12 property, then we could see money to help the district. But the developer could still back out of the deal anytime over the next year, and we'd be in trouble."

Population and student growth has forced the district to borrow against anticipated tax money to pay its bills for the last three years.

District 38 took out loans for $1.4 million in 2005, $1.8 million in 2006 and $2.4 million in 2007. Pazanin said the district will need to borrow more than $3 million in the coming year to make ends meet.