Put bond sale to a vote of the people
On March 10 the Palatine Township District 15 school board voted 4-3 to approve the sale of $27 million in working cash fund bonds. Chapman, Bokor, Ekeberg and Babcock voted "aye", Bloom, Millar and Quinn voted no.
These bonds will cost District 15 taxpayers $51 million over the next 20 years. $1 million of the bond amount is needed to pay a penalty for "refinancing" capital appreciation bonds that were issued in 2001.
If the old bonds were paid off in due course the District 15 taxpayers would see a reduction in their real estate taxes. If the new $27 million bonds are approved, taxpayers will probably not see this tax decrease in their lifetime.
The board stated no clear purpose for the use of these funds, nor any plans to put the money to immediate use. So, $27 million borrowed at approximately 5 percent interest will sit in the district's bank account which earns less than 1 percent interest. This is like taking an advance on your credit card so you will have money in the bank.
But the district already has $41 million in cash reserves - so why do we need to borrow this money now?
If the district does issue these bonds, it will have maxed out its line of credit, lowered its credit rating and will not be able to borrow any more money without a referendum. In addition, the issuance of these bonds could negatively impact the Village of Palatine's bond rating and its ability to issue its own bonds for building projects in the future.
By signing a petition before April 10, the taxpayers of District 15 can demand the bond issue be put on the ballot in November, so we can make an informed decision about whether issuing these bonds is the best use of $51 million of taxpayer dollars over the next 20 years.
Such a serious financial decision deserves more thoughtful consideration than a brief presentation and an even briefer discussion followed by a hasty vote.
Visit Facebook at CCSD 15 - Put Bonds on the Ballot, or email mary. vanek @comcast.net.
Mary E. Vanek
Palatine