Park district candidates debate investment policy

The lone challenger in the April 7 Barrington Park District election is questioning the investment policy of the incumbent park board.

Christine Valentine asserts that, had the district shopped more aggressively for interest rates, it could have at least $250,000 more in reserves.

Valentine, whose professional background included work in the private sector on government contracts and accounting, is seeking one of the two available 6-year seats.

But incumbent candidates Jon Stickney and Linda Hovde, as well as board President Christine Garry, said the district's financial strength, annual audits and recent favorable bond rating all are evidence of prudent policy.

The incumbents say the district's Aa2 rating, for the funding of the $12 million Langendorf Recreation Center expansion, makes it the seventh highest-rated park district in Illinois, according to Moody's bond rating agency.

"Moody's doesn't have anything to do with how they're investing their money," Valentine said.

But Stickney, who's also president of Barrington Bank & Trust, said Moody's takes into account a district's overall risk management.

Stickney said he believes the district has had a responsible, conservative investing policy that's yielded above-average returns without undue risk.

As for the argument that a higher return was possible, commissioners said such conclusions often can be made in hindsight.

But Valentine insists more attractive interest rates could have been easily recognized by district officials at the time.

She also believes an undue share of district investments is directed to Stickney's bank, though she acknowledges he recuses himself from votes involving his bank.

As of late February, the district had about $12 million divided almost evenly among Barrington Bank & Trust, Harris Bank and a local government investment pool called Illinois Funds, district accountant Lee Howard said.

He added the ratio of funds in each account varies almost weekly as bills are paid and revenues received. He also said it's unusual for the district to have $12 million in the bank, which is the case now because of the recent bond sale. More typically, the district has $2 million to $3 million in the bank at a given time.

Stickney said Valentine's accusation of impropriety regarding the district's use of his bank was unworthy of response. Hovde and Garry strongly denied the claim.

"I believe that's truly unfair," Garry said. "We welcome (Stickney's) advice. But we get audited every year. I think Jon would be the first to say if you can get it better somewhere else, go somewhere else."

Garry said the district has been using those financial institutions since before Stickney joined the board four years ago. If anything, she said, his presence ensures commissioners are going the extra mile to make all their decisions publicly and avoid even the appearance of impropriety.

Hovde said the board makes an effort to find the best rates and spread its investments out, through both the expertise of those on the board and paid financial consultants.

"I think the park's had a really good track record," Hovde said.

Valentine said that with the extra reserves she believes still are possible, the district should invest more in teen programs.

The incumbents say the market for teen programs is not as strong as for children and adults, but that efforts are continuously made to reach out to teens and to coordinate with Barrington High School.

The building expansion at Langendorf Park also is expected to provide more space for teens, Hovde said.

"I think that's one of the reasons the public was so supportive of this building," she added.