Time is now for improvements at College of DuPage
On Nov. 2, College of DuPage will seek voter approval to extend its bonding authority while keeping the tax rate for bond debt at its current level. The college took advantage of historically low interest rates in 2009 by refinancing a portion of its debt, saving the taxpayer $2.14 million and creating a brief window for a No-Tax-Rate-Increase referendum. We will use this referendum for major repairs to aging campus buildings. This is not to be confused with regular maintenance performed on all buildings. The referendum would fund major infrastructural changes intended to protect the public's investment by extending the lives of buildings worn down by decades of use and millions of visitors. The referendum will also pay for a parking structure to provide safe, centralized access for our visitors and students, as well as Phase 2 of our Homeland Security Education Center complex, where we will train your firefighters, police and paramedics. To learn more about our Campus Master Plan, visit cod.edu.
The Campus Master Plan outlines $415 million in capital needs, $168 million of which would come from the referendum. We expect to eventually receive $25 million from the state once the $33 billion capital bill is funded by the legislature. When combined with capital fee revenue we expect to collect from students (currently at $9 per credit hour), available resources should approximate $200 million. Priorities over the next three to five years are:
• Renovation and infrastructure improvements of four buildings more than 30 years old estimated at $140 million
• Construction of a centralized parking structure estimated at $15 million
• Construction of phase II of the Homeland Security Education Center estimated at $25 million
Were the referendum not to pass, taxpayers would see a negligible $11 drop in their taxes per $100,000 of assessed property valuation. For the owner of a $300,000 house, this is roughly $34 or the price of going to the movies.
It is, of course, a fair question to ask why we need to support a referendum during a down economy. The answer is that the economy will get better, and, like other leading colleges and businesses, we must take steps now to be ready for it or be left behind when better times arrive. Community colleges in particular shoulder a large part of providing an educated, well-trained work force. We also estimate this referendum would create 3,400 construction jobs for an industry that has been devastated by the current economy.
Another reason to pursue a referendum now is that we can save a great deal of public money. If there is a silver lining to the current economy, it is that interest rates are at a 40-year low. This allows us to save the taxpayers more than $75 million over the life of the bonds compared to issuing high interest bonds during a normal market.
COD's ability to achieve low interest rates and save the taxpayer money is also based on its excellent financial stewardship, which has earned the college's “Triple A” (Aaa) bond rating, the best bond rating achievable. This means investors know COD bonds are sound, and they are willing to lend their money to the college at very low interest. We have earned this distinction by making sometimes-difficult decisions that have allowed us to provide quality education while still setting money aside for true emergencies.
We have been asked how we would pay for the employees and programs that would be placed in buildings currently under construction and newly renovated space. It is our intent to demolish inefficient “temporary” buildings constructed on our west campus that we have maintained for 40 years twice their intended life span. We do not expect additional operating costs, because the programs and personnel in the temporary buildings will be moved into new and more energy-efficient facilities.
The taxpayers of District 502 elected each of us on the board of directors to ensure the communities' interests are paramount in the college's daily operation. We respectfully ask you to trust our judgment, which is based on many hours of careful consideration of the facts, and support your COMMUNITY college Nov. 2.
Kathy Wessel is chairman of the COD Board of Trustees.