District 62 to borrow $109 million for facilities upgrades, repairs

Des Plaines Elementary District 62 plans to overhaul its schools with a $109 million loan that officials say won't cost taxpayers an extra dime.

The school board recently approved a resolution to issue $109 million in alternate general obligation bonds. A public hearing will be conducted on the bond issuance at the Aug. 17 board meeting. The school board must then authorize issuing the bonds, likely repayable over 20 years.

The money would be used to upgrade and repair facilities and equipment, and add on to the district's 11 school buildings beginning next year.

"There are some infrastructure needs that haven't been addressed for many, many years in existing buildings," said Nelson Gray, District 62 assistant superintendent for business. "There's also some additions that are really needed to bring us up to speed in the areas of cafeteria, kitchens, library and technology needs."

Gray said taxpayers won't see an increase on their property tax bills, adding the bonds would primarily be paid through existing general fund revenues, cash reserves, and other funding sources such as federal stimulus monies, and future tax revenues such as the proposed Des Plaines casino.

District officials have been working on a comprehensive school modernization plan for about four years. Building security, infrastructure upgrades, and overcrowding are driving the need for improvements, Gray said.

"In some cases we are redesigning entrances," Gray said. "There is no controlled access to our school sites."

Once reconfigured, all schools will have a controlled entry point where visitors can check in before being allowed to enter the building.

A major addition to the district's facilities will be the construction of an early childhood learning center at Forest Elementary School.

"We will be able to provide targeted services at one location for our early childhood population, instead of having it in all the elementary level buildings," Gray said. "It frees up some space that we need at the other buildings to allow for some new classroom/instruction settings."

The center alone is estimated to cost roughly $13 million. The district has applied for $1 million in federal stimulus funding to help with its construction.

"We've been working with a financial consultant for about four months to discuss options on how to finance the infrastructure needs," Gray said. "This is the first step in considering that as a maximum not to exceed for the bond issuance."

District officials are working on the design for the first phase of construction. That involves improvements such as redoing mechanical systems, interior surfaces and lighting, and updating the electrical service at four schools - Cumberland, Chippewa, Algonquin and Forest. The early childhood learning center is also part of the first phase.

Officials expect construction to begin late spring/early summer 2010. Upgrades to all district facilities will take three years to complete.