Watchdogs not likely to chase Woodland over borrowing plan
Gurnee's most visible government watchdog group likely won't try to force a referendum question on Woodland Elementary District 50's plan to borrow $9.4 million.
Citizens for Responsible Government member Ken Arnold said the upcoming holiday season is the chief problem with having less than a month to mobilize anyone to gather signatures on a petition to put Woodland's proposal to a vote.
Officials say the $9.4 million would be obtained by issuing of working-cash bonds and be used to help cover capital expenditures and allow for a reduced tax rate.
While District 50 doesn't need voter permission to borrow the money, state law provides taxpayers an opportunity to force a ballot question if they gain signatures on a petition from at least 10 percent of registered voters.
District 50 board members voted in favor of a resolution Thursday declaring the intent to issue the working-cash bonds. Residents need to collect the required signatures within 30 days of Thursday's meeting.
Arnold said he'd want a ballot measure, but Citizens for Responsible Government is not in a position to seek the petition signatures on short notice. He acknowledged someone else in the community can make the effort.
“The holidays are not much of an opportunity,” Arnold said Friday.
Citizens for Responsible Government has been active for more than 10 years regarding spending issues in schools and other governmental units in Gurnee.
District 50 plans to refinance debt as part of an attempt to slice its tax rate for the bond-and-interest fund. Officials said the refinancing, in combination with the $9.4 million loan, would allow Woodland to cut its request by $2 million annually from 2011 to 2014.
By reducing the bond-and-interest fund levy and obtaining the loan, the district estimates a $100 saving for an owner of a $300,000 home on the next four tax bills. Copier, bus and computer leases would be among the capital expenditures covered with the $9.4 million.
Arnold said Woodland's proposal should be questioned.
“Inherently, I'm skeptical,” he said. “What they're doing in the end is kicking the can down the road. You've got to pay for your borrowing at some time.”
Woodland board members voted 6-0 in favor of the intention to borrow the money. They discussed the concept of refinancing debt and the loan at a meeting Nov. 4.
“I was really impressed with the solution you came up with,” board member Terry Hall told Associate Superintendent Robert Leonard after he explained the plan at Thursday's meeting.
District 50 will hold a public hearing Dec. 16 on the plan to issue the working-cash bonds. The board would vote to authorize a bond sale Jan. 27 if the proposal isn't forced to a referendum.