Real facts from the trenches

Steve, what do you think of the school board members comments?

Katie, as long as the school board and the administration can receive what TIF funds they are getting from the city unencumbered, they will not ask for the rest of the money. They are using dollars meant to pay the school referendum bond for their budget shortfalls and for that 5 year teachers contract they signed just after they signed the agreement for the unencumbered funds from the City of DeKalb.

I'm telling you that people are moving from DeKalb. High impact fees and huge property taxes will not help any builder in selling new homes in this community. I will be surprised if this community sees more than 50 new homes starts in one year any sooner than 3 to 4 years from now. With the school board counting on and moving forward with this high school on the basis that they would have revenue streaming in from 600 homes per year for the next 10 years makes that a very bad assumption they are banking on.

What is more than likely especially with redistricting just around the corner. Grade schools will be closed and combined. I wouldn't be too shocked to see the new high school entertaining 8th graders along with the normal 9 – 12 grades. In fact, I wouldn't put it past them to go 7th and 8th with the 9 – 12th grades. That would make the current high school available for 5th and 6th graders or if too many complaints about 7th graders at the new high school come about, the current school will see 5th, 6th , and 7th graders. That would leave Clinton Rosette and Huntley for new grade schools along with the new Cortland and Gwendolyn Brooks with Wright staying how it is now unless they move Wright's curriculum to the new Cortland School. This would close down Little John, Jefferson, Tyler, and the Malta grade school leaving Lincoln school as a back up dependent on numbers. Prinicipals and staff cuts along with operations being less.

Something this drastic will have to happen in order to open the doors of the new high school. Katie, the school board member you talked to is nothing but a Kool aid drinker of Dr. Briscoe's. Reality does not even figure into anything that the school board or its administration is doing right now. With the school board member telling you that about TIF just proves that they don't understand what they are being told by the administration.

Dissolve TIF and put those real dollars back where they should have been going in the first place. Kay is correct. Investing TIF dollars in public infrastructure will not see any return of dollars to the TIF fund. These dollars were meant for businesses to improve their businesses so that those businesses improved their value and business. How do you retrieve TIF dollars from a building, sidewalk, or parking lot that doesn't pay real estate or sales taxes? You don't, you just plain old lose them.

TIF is not infinite nor bottomless so the more TIF money gets blown on other unnecessary projects, the less of it could go back to the schools.

Mr. Krpan, I questioned a school board member about getting the money back from the city, and he said they can give back the money whenever they want, it doesn't have to be immediately. The way he said it was as if they're in no hurry and it's no big deal. In other words, what's the rush? There is intent to eentually close schools. He also believes in the "build it, they will come," so there should be no problem filling that Taj Majal highschool.

I think the real problem is that many out there believe the members of the school administration and school board. They are willing to listen to members of Renew:DeKalb Schools before they listen to someone who would berate the new, state of the art, fully enclosed and airconditioned field house and gym. They are willing to dismiss their most recent tax bills as just a glitch in math but it won't get any worse because no one from the school board is crying that the sky is falling.

After the ribbons are cut and the fanfare has faded once they complete the new high school, District 428 taxpayers will have to face reality. Taxes to support the referendum will fly through the field house's ceiling along with every other property in District 428. There is no money for running and maintaining the buildings in this school system right now. They have cut staff and who knows what essentials to properly maintaining these facilities have also been cut. If you know Jerry Dunham, ask Jerry what the school district administration told him to do to save dollars and also help promote the need of a referendum for a new school.

The likes of many on the board and especially the upper staff will be gone when the proverial #2 hits the fan. Teachers and staff of the grade schools needing some real dollars know what I'm talking about. Promises to fix outdated grade schools cannot and will not be kept to them even though as good soldiers many supported the referendum Part 1 not really thinking that this movie would have no sequel, Referendum Part 2. The moviegoers truly do not wish to view this movie especially after seeing how Part 1 ends. This movie is listed as a tragedy by the way.

The community truly needs to wake up here and start asking for accountability from the school board members. Mike Verbic always seems willing to pop his head in but when the questions get tough and to the point, Mike seems to disappear.

I'm still waiting for the answers regarding Mike's statement that he had the school's attorney looking into the TIF dollars that the City of DeKalb is keeping that resulted from the referendum. Mike is a president who stands behind mandates or is that only mandates he preferrs to side with? The money was a mandate also Mike. Let's get it back from the City and help pay the bond down, what do you say?

The elephant in the room that is being carefully ignored by the District and its partisans is that the federal government's deficit is going to be at least a trillion dollars for each year of the foreseeable future. Just keeping them afloat is going to require at least this much borrowing in the bond market. Other national governments are also in a financial pickle and are going to be borrowing or trying to borrow massive amounts of money for at least the next several years. This is going to crowd out those borrowers, like municipalities and school districts, from the bond markets. For most bond investors, return of capital is crucially important. So, are they going to loan money to a hard pressed school district with a declining EAV, when they can loan it to a national government with a much higher credit rating? Not likely. This means that the financial picture for District 428 is even more ugly than Mac's discussion above. What happens to the Taj Mahal there on Dresser Road when they cannot borrow any more money? Right now, the District cannot afford to maintain and fully staff the buildings it has already. How are they going to stay afloat if and when they complete the new, unneeded, and unaffordable high school? True, they can raise the levies, and they will do so. What is that going to do to the foreclosure rates in the District? There is only so much blood that one can squeeze out of a rock, and with an increasing foreclosure rate, declining employment base, and declining local incomes, how are they going to afford their expansion? Perhaps someone else ought to be thinking about these issues.

Great letter Mac!

The paragraph explaining the 10 years of hard volunteers work really explains a lot to me.

Now I know why ever since joining the FPC that it always seemed like there was this invisible force in the room working against better judgement and factual information. This force was fighting against "intellectual HONESTY". I guess it could be a lot like Ying and Yang….. no not Yinn and Yann.

There always seemed to be a small group within the FPC that always kept referring back to pre-referendum meetings and discussions and saying that was what the FPC was going to stick to. I always felt uncomfortable with as much discussion and input was coming from school administration and staff along with school board members that happened to stop in this evening dependent upon the meeting agenda.

This is why I would very much appreciate having all minutes of the FPC, pre-referendum and post-referendum, to be posted. If they cannot be, I would appreciate a copy of all of them. The one thing that this community should be afforded to is a community town hall meeting showing the final plans for the new high school. Many communities do just this to keep the community in the know. You know Mac, you and I have been accused of spewing misinformation around the community concerning the school but to no avail, never is there any factual documentation brought forward to correct that misinformation. Hmmmmmm….. as a community, I would very concerned about that.

"Adapt". That is a word that many in this community whether at home or business are learning inside and out. Local, state, national and world wide are learing to utilize the word "adapt" in how they manage their funds in order to get by and survive. Why not School District #428?

Max asked: Can the district and school board explain how they can “promise’ the original “one year” increase [$270/yr on a $200,000 home) when their “projected” increase in “EAV” has tanked?

Good news, bad news and potentially ugly news for you, Max

Good: The CFAC (school construction finance committee) at least post-referendum appears charged with a very limited scope: advising on the sale and debt management of the construction bonds. They are in a "don't worry about if the horse is blind, just load the wagon" role as far as the bricks and mortar construction decisions are concerned. It is this committee, with props to Brendon Gallagher, Tom Teresinski, Andy Small and Mitzy Haji-Sheik, that the bonds are being sold as incrementally as possible, on an as needed basis. The District benefited from significant savings in interest charges AND the plan allows flexibility for the bricks and mortar people to reduce expenditures should that ever cross their minds. The committee, with props to Liz Hennessey and Andrea Gorla, has also produced very significant savings in (layman term) bond credit rating positioning between Moodys and S&P. I think this committee is managing its limited role well. I also think it can be good that Gallagher and Teresinksi are now on the city council: They know the plus and minus impacts the $110 million debt could have on this community.

Bad: …our chances they will be able to keep the $270 promise. Until bankers relearn what they are in business for and use some of our bailout money we lent to them to loan to us there won't be any recovery in new construction. That's the horse that pulls the housing market cart. No new construction EAV equals stagnant or declining existing EAV. The only "good news" in the new construction implosion is the tax assessors have decided they ain't gonna chase sales no more. Ahem. Terrible joke… But here's a worse one. The most important promise to the school board appears to be to spend $110 million. But they didn't make that promise! The Board and FPC spent 10 years (quoting Verbic) on planning this thing, darn it, and if the economy thinks it can remove one brick from all their volunteer hard work and dreams by tanking, double gosh darn it, well, screw somebody! To show their commitment to all their hard work they'll take any sharp pencil bid savings and add a football stadium and 200 meter air conditioned indoor track just to make coaches feel like they're perpetually waking up to a Christmas where all their wish lists came true. In promise priority order: 1) Spend $110 million. (skip to 110,000,001) Won't build a stadium with referendum dollars. 110,000,002) $270 on a $200,000 home.

Potentially Ugly: Guaranteed debt payments must be met regardless of the economic circumstances of the borrower (us). EAV can go down. Payment must be met. Enrollment can go down. Payment must be met. Employers can leave town. Payment must be met. Ollie's Frozen Custard could close. Payments must be met. Those payments are guaranteed with your tax dollars.

Dr. Beilfuss once started an FPC meeting by writing the word "barm" on the chalkboard. He asked Ivan Krpan and I if we knew what it meant. Nope. We didn't. It means beer foam. Nice soft start to a meeting. I have a word to suggest: adapt.

Yes, Mac. I think we do agree on more than we disagree. As I wrote the above comment, I remembered the time (long ago) when I was a "student teacher" observer while attending NIU. Things were very different that long ago. Partnerships then were not so convoluted. NIU still had its Lab school on campus in those days. There was no "Wright" school. At the student and "student teacher" level, and usually at the general professor level, I see few problems with interaction. Its when deals are cut or influence exerted at the higher administrative levels (those who can control or influence policy and spending) that I become concerned. Caution is always required because even at the lower levels, an honest intention can become mired in politics if someone higher up sees an advantage. Hence my advice to avoid all connections whatsoever in some cases.

Also, I am not implying that all our problems in District 428 originate with NIU. Clearly, there are many players: Architects, Superintendents, Unions, Financiers, etc. So to say any one party is solely responsible would be incomplete. But the concept of many players is exactly why I think more significant employers would be helpful-it would dilute the effect of any one employer's influence over local affairs. That is the real bone I pick with NIU, they exert an out sized influence in DeKalb county affairs, especially the city of DeKalb. When they make a wrong move, it hurts many people.

Ivan, I certainly am with you on calling for a town meeting regarding the various questions remaining unanswered by District 428. This, among other things, includes the question of TIF agreements and taxation without representation. If the decision makers do not respond with an open meeting, I suppose you are right in that the next step must be alternative (legal) means to force their response. It amazes me they have got away with not disclosing all facts for such a long time, for example, an operating budget for the schools.

And you know that I echo your last paragraph Mac.

"To be very clear I maintain that the new high school is being severely overbuilt on false premises ((student enrollment projections, EAV (new and existing) projections)) with ill-advised priority on athletics over academics."

This entire community that is District 428 should be very nervous and upset. These same people, many who helped pass this last referendum should be furious with the tactics that were used to make the referendum look so "rosy and doable".

If anything, right now, we as that community who passed this referendum should demand a town hall meeting to answer questions about the progress of this referendums and the new down sides we as a community now face. If not we shall have to pursue other means to show how serious we are.

Kerry… we don't completely disagree. I've long thought that throughout our county, township(s) municipal, parks, schools, library, sanitary, etc., boards we have too much NIU representation. But regardless of who your employer is, or how many fellow employees there are, you can run for or get appointed to an office in local government.

It is in that vein that I'll defend NIU the institution. Based on many years of involvement I think I'm qualified to state that it is often an end result of meetings to "ask NIU" for help in resolving an issue. I, too, think such requests should be taken with much more care and due diligence.

The price tag must be discussed in its entirety and in public.

But in Education there is potential for mutually beneficial relationships between NIU and District 428. One obvious partnership is through NIU's teacher students to augment student-to-teacher ratios and provide tutor service where applicable.

Another is in grant writing. At an FPC meeting I asked about grant writers on staff at 428. The intitial response to my query, from Andrea Gorla, was, "Mac's looking for a paycheck." No I'm not and that gets tiresome. I was asking if we had staff grant writers who were keeping abreast of the American Recovery Act stimulus programs. The answer to that question is no. Any 428 staff grant writers we do have tend to write for grants related to Title 1 and low income students. Perhaps there are employees and students at NIU who could serve in non-career positions to help go after other sources of grants than Title 1.

To be very clear I maintain that the new high school is being severely overbuilt on false premises ((student enrollment projections, EAV (new and existing) projections)) with ill-advised priority on athletics over academics.

Mac, I have to disagree with you to some extent on forging ahead with NIU/DHS partnerships. Explore? Maybe, maybe not. Go very slowly and carefully. Avoid some connections altogether. My view is that while NIU can provide resources to the community, it does so as a two edged sword. It may be that NIU partnerships provide resources to the people, but along with that dole come many back doors, and unwelcome and unaccountable influence. Without NIU, many non-NIU entities/administrators would be free to make decisions and perform their jobs without concern for any back door influences.

For instance, just who is calling the shots when it comes to DHS athletic facilities and agreements? "Extra" rooms at the new high school? New hires? Wright grade school? Seems to me it is not always District 428 constituents through our elected local school board (our representatives). There are unseen and undue influences being exerted somewhere in the process. Obvious outcomes don't usually fit with what the people are told prior to the beginning of projects, even though the district has a public relations manager! In the last several years it has also become clear that many of NIU's problems (and perhaps goals) have become the town and county's unfunded mandates. While state/NIU funding does not always reach to reimburse other governmental units (DeKalb Police for example) many are sometimes saddled with NIU-originated concerns. NIU/state influence meanwhile, always extends and continues. So again, it is very much a two edged sword and I believe we have been cut many times. Partnerships can be good, but they are almost always messy.

So what's the answer?

If I could do ONE thing to change DeKalb county for the better, I would dilute the influence of our two largest employers: NIU and Kish Health Systems. As far as I know, that can only happen with an influx of many new employers to the area (or perhaps, with a severe cut in funding to NIU). These new jobs cannot be just more forklift garages (logistics) or retail shops. The effect of only one or two major employers offering sustainable wages is one reason why I lament the demise of the housing market. Construction/new development was providing many jobs that were relatively unattached to state entities and direct taxpayer funding. Agriculture, our other big employer, is like housing: run by many different companies or families. Although there are taxpayer funds involved in some farm operations, there are many decision makers and they are generally heads of households not seeking political power, but only a decent living for their family.

I think all one has to do to understand my perspective on NIU/District 428 partnerships is to track all the local news articles and blogs (Thanks-DeKalb County Online!) and then analyze and consider where the influences are coming from. I sometimes have to read between the lines, but its pretty obvious! Partnering with NIU may not be such a good thing for District 428! More independence is always a good thing!

RE: NIU – DHS partnership

Every opportunity for partnerships between NIU and Dist 428 should be explored. Not all will be right for one entity and/or the other. But it would be foolish and a disservice to the children of this community to ignore the wealth of resources available at NIU.

I read the article linked to regarding the potential of such a partnership at the new high school. I do agree that the disclaimer of "subject to the approval of District 428" should have been made clear. Since it takes two sides for an agreement I suspect a similar disclaimer of "subject to the approval of NIU's board" is also applicable. But, sans details (finance), I like the elements being described in such a partnership. It appears to be mutually beneficial to the benefit of our students. The price tag must be discussed in its entirety and in public.

Max wrote, "Mac, I was once told that because we’re a “HOME RULE” community we can quite frankly do whatever we please with TIFF funds without showing one dime of increased EAV to account for the expenditures."

Yikers, someone needs to re-read Illinois state law and it is not Max.

Ivan is correct about the changes to TIF in the City of Chicago, with the catalyst being the occupation of the Windows and Doors factory by workers. Ald. Manny Flores and another Chicago alderman introduced what could be called a TIF sunshine ordinance that passed. DeKalb needs something similar very badly.

Chronicle blogger TommiTwoToneToucan (spelling?) posted an example of a small town in Maine being able to attract businesses. Something else DeKalb needs are TIF Guidelines, click the fifth bullet point down from here:
http://www.freeportecon.com/AboutFEDC.html

I know someone who lives in Summit Enclave, and I'll ask if I can remember to do so.

I need to edit my statement on the under staffing average. I should have put the average at “0.5 to 1 per school” instead of “1 to 2″. My apologies. Thanks goes to a fellow co-worker and his input on this. Without the written documents being available to the public, if ever, this is strictly from memory. If other employees can add to these facts please chime in. I did not tour every school with the evaluation group. I can only relay the information gathered while I was present.

I think your last question Max about how one is to measure recapture is a very valid question to ask. I wonder why the school board officials didn't ask that question prior to resigning the TIF Agreements with the city.

How do they know the first TIF they were in improved the property values enough to receive MORE not LESS than was left on the table over 29 years? They don't but why even ask if you're going to sign away this money again for 25 more years?

This thing about the city making whole the school district is purely a shell game and it truly needs to be investigated by the Feds not any State agency.

I really believe someone in Chicago has really put the pencil to the paper and see that TIF does not work. Chicago is presently dissolving all of their TIF Districts which was all started by the famous Window company sit in where the employees refused to leave until they were paid in full. That company was financed by TIF funds and now Chicago is letting go of it.

I guesstimate that the school district is leaving as much as $2 million if not $3 million on the table dependent on how much Summit Enclave's property taxes to the school district is broken up?

Does anybody know of anyone who lives in that subdivision? Isn't the tax bill supposed to show what goes to the schools and what is the TIF contribution? It would be interesting.

Nevertheless, even if only $1 million, I would think that the school district would be better off the next 29 years if they received the $29 million that would have been left on the table for the city's TIF Districts.

Mac, I was once told that because we’re a “HOME RULE” community we can quite frankly do whatever we please with TIFF funds without showing one dime of increased EAV to account for the expenditures. Say it ain’t so! Seriously, if there is no model to measure recapture how would anyone ever know if it’s effective?

Honestly, what is the point of a top notch school system if no one can afford to live here? Betcha dollars to foreclosures that’s the next problem.

Correct me if I’m wrong, but the real question is how “can” the district aka school board explain how they can “promise’ the original “one year” increase when their “projected” increase in “EAV” has tanked? Three sales of 30+ million bonds each, only the first of which has occurred. Secondly, how does the city contribute to the hemorrhaging when there is no written commitment to adding the school districts 50% of the TIFF kiddy to the debt? Who voted for this and where was the calculator when they did? Was there a page missing in this Power Point presentation? I’m begging to have this explained to me!

RE: TIF
Some type of public forum on the TIF intergovernmental agreement between the City of DeKalb and District 428 is needed. I've been told that the agreement "makes the District whole." Explanations offered are not convincing.

Are any of the tax dollars collected from the construction debt bond levy assessed on property owners within the TIF district being captured by the City?

Is 428 using the "unencumbered" TIF dollars for debt repayment? 100%? 50%?

What are the projected increases in EAV due to TIF-borne improvements?

RE: O&M
What are the projected utilities and operational maintenance costs for the two new schools?

What is the staffing plan for buildings and grounds?

Paul wrote, "And what of this redistricting promised by President Verbic (whose comments in this made Sarah Palin’s speech on Friday sound like it made sense — and I’m as conservative as they come)?"

I about busted out some stitches reading that one. 🙂

FOIA is our best friend. A copy of the architect's contract can be had that way, too, as well as every other contract, and the salaries for everybody. I have not seen any news whether or not Gov. Quinn signed SB 189.

Now Mike you've got me whistling Sam Cooke all day.

Home Rule Authority:

Maybe this is a great time for our City Council and Mayor to step up for the schools in this community.

By using Home Rule Authority, they need to redo the Agreements made between District 428 and the City of DeKalb pertaining to the TIF Districts. We know through TIF that any of the participating taxing districts have agreed to leave any tax dollars that are increased after the signing with the TIF District for intended property improvements within that district with hopes that the property within that district will improve so much that their taxable value improves also. I really do not feel that property values can increase that much that these taxing districts will ever recoup what they've left on the table especially if your going to do and idiotic thing like sign a 23 year extension after coming off of a 30 year deal. How do you ever get that money back?

I feel that the School District is literally leaving millions of dollars every year on the table especially now with referendum dollars being kept by the City of DeKalb.

We are at a great point here with our current city council makeup. Alderman Ron Naylor who has been a huge proponent of this 400,000 plus square foot high school, Alderman Tom Teresinski who has served in past years as President of the School Board and as a School Board member. Tom is very involved in the advisory capacity for the School District as a member of CFAC who is working very hard and diligently on keeping the referendum costs down to a minimum. Tom also is a member of FPC and probably is the one citizen of this community that truly has a very well rounded feel of what is going on with the construction and financing of the schools now under construction. Finally, just elected Alderman Brendan Gallagher is President of the School Districts citizen advisory group CFAC that have been diligent in keeping unnecessary costs and financing of this referendum in check. In fact, Mr. Gallagher was a key component in stressing that the money should only be borrowed as required and not just sitting around costing taxpayers interest charges if not being used.

These 3 gentlemen have the ability to bring to the council a motion to revisit the TIF Agreements with the City of DeKalb and use the Home Rule power to earmark all of these referendum dollars for the sole purpose of repaying the school bond and only the school bond.

Who will be the first to make the motion and who will fight to make the second motion? This is a great opportunity to really help our School District and the property owners who are already burdened heavily in real estate taxes. Let's put Home Rule to the good use that so many proclaimed that Home Rule can do for this community.

Contact these Aldermen and express your concerns. Maybe Mr. Povlsen might try to make a public statement about this and look into helping the school district along with the many children this district educates. Time to step up council.

I've put this out before and I'm not putting this out tongue in cheek…

Detention Chain Gangs.

I agree, cost effective methods are always paramount. Its to bad it cant always be applied to all aspects of construction. Some things just cost more to do correctly.

P.S. Sorry I missed the split.

Remember, its a school board with a school district making recommendations to them. If any blame is to be generally placed, as to additional cost and upgrades to the new schools, you should focus your attention on the school district and its Administrators, Athletic directors, and so on. They are the stick that prods the board in specific directions.

Total agreement regarding who is the stick that prods and where the attention needs to be focused. I think much of that is due to the prevalence of consensus building especially in closed door sessions in local government. On school boards in particular there is an isolation of elected officials with too close of an association with administration. That adds to what is a system error that must be addressed — through transparency and accountability.

As it stands today, our school district is well understaffed in the maintenance and custodial departments. Add a few more large schools to the picture and where will the school district stand then?

Those sentiments were echoed by (hope I get these names right) Jerry Dunham at the Egyptian Theatre and Les Shaw during FPC meetings. Both of these gentlemen were once in charge of building and grounds for the school district. On several occasions at FPC meetings I tried to support their concerns. So did Ivan. We asked for maintenance cost projections but so far they have not materialized.

We really need to build these schools to last as long as possible. This usually means its not gonna be cheap. So Lets build it right the first time.

We have some disagreement here. Public facilities should be built right the first time. They should not be built on the cheap. But the current high school was built around 1968 and evidently is high school obsolete. Many of the grade schools have structural or infrastructural problems that can now only be addressed through new construction. It just may be that we don't have an accurate enough crystal ball to build schools for the ages and should consider more modern, cost efficient (big picture, including maintenance) construction methods and materials. It's what's on the inside (people) that counts. Debt for capital improvement can erode operational budgets and drive residents to cheaper pastures.