Dist. 204 using stimulus funds to lower costs at M

[doctorwho]

Calling Mac: decipher-

my question is what $4.1M is this- is this again money on top of the king's ransom we have already paid ?

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Dist. 204 using stimulus funds to lower costs at Metea Valley

www.dailyherald.com/article/20101020/news/710219952/

Indian Prairie District 204 plans to use federal stimulus funds to pay for $4.1 million in construction costs for Metea Valley High School in Aurora.

The district also wants to earmark land or cash donations from any future development in the district to go toward construction costs.

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By using the federal Build America Bonds, the district can receive a federal subsidy that will cover up to 35 percent of the interest payments, saving the district $190,000 in the 12-year life of the debt certificates. Taxpayers will see some relief in 2012 as a result.

In 2006, the district agreed, with passage of a tax-increase referendum, to restructure its debt and to lower the bond and interest portion of the tax levy for the life of the bonds. For the owner of a $300,000 house, that translated to a reduction from $720 to $606 in annual property tax bills from the district.

Starting with the 2012 tax year, the Build America Bonds will further reduce the tax by an average of $10 a year for the next 14 years.

District officials will have to apply twice a year for the subsidies, before the debt payments are due. District board members have plans to vote on the bond issue at their next meeting, Nov. 1.

Board members also supported the idea of using land and cash donations from future development in the district for the new high school. “This is a creative way to make sure future users are paying at least a portion of their fair share,” board President Curt Bradshaw said.

[macrockett]

I'll check into it Doc. First I have heard of it. I have to assume that this is another $4 million on top of everything else, but I have to verify.

[EagleDad]

I think this is where we take portapotties that we never built and turn them into magic ponies revenue using sparkle dust from the magical Obamawonka chocolate factory.

Yes Curt, "creative" is a good adjective.

Maybe it is time for Holm to cut-the-crap.

[EagleDad]

"For the owner of a $300,000 house, that translated to a reduction from $720 to $606 in annual property tax bills from the district."

I'd like to know of any home in this district that is paying $720 per year in property taxes (to the district, which are 85% of overall property taxes). Once found, I am sure I could ask them how they are enjoying their 1-year 16% reduction in these taxes.

Apparently the wonderflight of the unicorn missed my house that leap-year

[EagleDad]

"Board members also supported the idea of using land and cash donations from future development in the district for the new high school."

Ah yes, we had so much additional development just waiting to close this month and in the immediate future. Hell's 'ya I heard all of sector G is closing before the end of the year. A million new homes, and AND a taco bell.

Is there white smoke coming out of the DEC or something?!?

I think it is pay-the-piper time and we are starting to see some really long tales to avoid that operating referendum we all knew was inevitable.

[macrockett]

These are the docs from the last Board meeting. Based on my read, this is new additional debt on MVHS that extends the cost even further. So without yet confirming what is going on here it appears to me that MVHS is now approaching $150m. I understand how the $17m was authorized but the authorization for these funds escapes me. It's time for a general FOIA request anyway so I will add this to it. As I have stated in the past, the District painted itself in a corner when it issued the 06 and 07 bonds that included premiums. If they are refinanced, part of those premiums will have to be refunded. More to follow.

www.boarddocs.com/il/ipsd/Board.nsf/files/8A7SN2700AAC/$file/Memo+to+Dave+Holm+Oct+7.pdf

www.boarddocs.com/il/ipsd/Board.nsf/files/8A7SMV70086A/$file/Timetable+2010+DC+and+Refund.pdf

[EagleDad]

So if I read it right it may be that we have not even completed MVHS and are going back to a well (that has run dry) to seek more funding to finish the work before we have 4 classes in it.

Let me know if I can help with the FOIAs.

[macrockett]

Thanks ED, right now I am at a loss for the authority under which they are allowed to issue these bonds let alone why at this late stage. Unfortunately the reporting on this in the DH is pretty useless in determining what is going on.

[asmodeus]

For the owner of a $300,000 house, that translated to a reduction from $720 to $606 in annual property tax bills from the district.

I think they need to add a zero to those tax bills...

[doctorwho]

Oct 20, 2010 20:57:14 GMT -6 asmodeus said:

For the owner of a $300,000 house, that translated to a reduction from $720 to $606 in annual property tax bills from the district.

I think they need to add a zero to those tax bills...

the creative math that comes out of this district is amazing

[doctorwho]

Oct 20, 2010 20:11:30 GMT -6 EagleDad said:

"Board members also supported the idea of using land and cash donations from future development in the district for the new high school."

Ah yes, we had so much additional development just waiting to close this month and in the immediate future. Hell's 'ya I heard all of sector G is closing before the end of the year. A million new homes, and AND a taco bell.

Is there white smoke coming out of the DEC or something?!?

I think it is pay-the-piper time and we are starting to see some really long tales to avoid that operating referendum we all knew was inevitable.

seriously- we need to get real auditors in here to go over everything-- a school districts financial statements and explanations of where our tax dollars have gone, and to whom, should not begin with " Once upon a time........"

This needs to be done before the financial guru flies the coop

[southsidesignmaker]

""""Board members also supported the idea of using land and cash donations from future development in the district for the new high school. “This is a creative way to make sure future users are paying at least a portion of their fair share,” board President Curt Bradshaw said.'''''''

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Creative indeed. I think the idea of "having future 204 end users" pay for the original bond issue was touted.

Please note Curt that many taxpayers no longer live in the "La La dream land" that once was. Any financial term or subject matter with the word CREATIVE will now be assumed suspect by folks living in this new reality.

[macrockett]

"creative" = kick the can down the road, a page out of municipal, state and federal government...

[Arch]

Yes, it also means those here long term have to pay more than they should have because instead of retiring debt, we just keep refinancing it and keep making payments...

[rew]

Could this have anything to do with the creative funding they used to borrow from the operating revs when we were still in the construction phase. Recall they borrowed funds to cover the $5M - illiquid 25 acres they needed to sell to help finance MVHS. Then there was an additional $5M that they borrowed about a year later that I never did figure out...but I remember CV voted against it.