Grayslake District 46 prefers cash over debt
Grayslake Elementary District 46 taxpayers won't be saddled with more debt because of a decision to use cash to pay its share of Special Education District of Lake County's $26.5 million building project.
Instead of paying $1.1 million in principal and interest with a 20-year loan, Grayslake Elementary District 46 board President Michael Linder said, a lump sum of about $595,350 will be paid to SEDOL for the construction. Board members made the decision at a recent meeting.
"I'd say it's pretty old school," Linder said. "Pay your debts and stay out of debt."
SEDOL's 36 member districts must share the construction tab for the project the agency deemed necessary because of growing enrollment. School districts across the county have had to decide on how to pay the bill.
About 550 students with learning disabilities are educated at SEDOL's Gages Lake campus on the Gurnee border. Another 800 students are served by the agency at Lake County public schools.
District 46 officials are expected to know what fund will be tapped to pay the $595,350 by October.
One construction funding option available to school districts was to obtain a loan with interest charges and pay the money to SEDOL in 20 or fewer years. Grayslake elementary was among the districts to pass on that idea.
In May, District 46 objected to contributing money to the SEDOL project. Others to vote against funding the construction included Lake Zurich Unit District 95, Mundelein High School District 120 and Antioch-Lake Villa Area High School District 117.
But a majority of SEDOL's member districts voted in favor of the $26.5 million building plan. That vote obligated all 36 of the school systems to come up with the money.
Meanwhile, Vernon Hills-based Hawthorn Elementary District 73 is expected to combine a cash payment with borrowed money for more than $1.1 million it owes to SEDOL.
"Our board is in agreement with on being a positive part of this process, in that it benefits our students with special needs," said District 73 board President Tim Shanahan. "Of our portion, we plan to pay approximately $765,000 in cash from reserves. We are exploring several options to determine the best method for us to cover the remaining approximately $390,000."
At the centerpiece of SEDOL's project is an $18 million, 65,000-square-foot classroom building for children with severe and profound mental and physical disabilities or the medically fragile. Another $8.5 million will fund facility renovation.