Glen Ellyn School District 41 :: Glen Ellyn, Illinois

November 28, 2005

Glen Ellyn School District 41 Mission: It is the mission of District 41 to advocate for students enabling each one to optimize his/her potential within a culture of continuous improvement.

Board Members: John Vivoda President | John Marcheschi Vice President | Debbie Hoffman Secretary | Kevin Cosgrove | Terra Costa Howard | John Kenwood | Carol McElvain

Following is a summary of the Board of Education (BOE) meeting held on November 28, 2005. Minutes are posted on www.d41.org once approved.

HADLEY SELECTED AS SITE FOR POSSIBLE NEW SCHOOL
The BOE moved to accept the administration’s recommendation that Hadley be selected as the site for a new school. A referendum would be needed to construct the space, but the BOE did not decide whether–or when–to mount a referendum. It will discuss the viability of a March, 2006 referendum at its Dec. 19 meeting. The new space would alleviate crowding throughout the district, although it is possible some portables would remain in place. The district would also restructure its grade-level organization to K-4, 5-6 and 7-8. The decision takes Spalding, a vacant parcel in the northeast quadrant of the district, out of consideration as a possible building site for the project. The administrative facilities recommendation also included expanded curricular and co-curricular opportunities, and the BOE directed the administration to create a multi-year plan to begin implementing these changes starting immediately to the extent possible, regardless of whether a new school is built.

Overall, the project is estimated to cost between $32-35 million, take three years to design and build and increase taxes on a house worth $600,000 by approximately $78 in the first year. The BOE reviewed construction costs and timelines and a possible financing option for the project, which involves an addition to Hadley to house a 7-8 junior high, converting the existing space to an intermediate 5-6 school, adding parking and bus lanes and renovating some existing aging and inefficient Hadley spaces. Representatives of FGM Architects, Turner Construction, PMA Financial and William Blair & Co. provided preliminary information regarding the proposed building project. Key points of the discussion were:
• A new building could be occupied as early as fall of 2009, assuming a successful March 2006 referendum.
• If the project is deferred, construction prices are likely to rise, especially given the instability of construction material costs due to the recent Gulf Coast hurricanes. Interest rates are currently low.
• Preliminary figures show that if the district restructured its current debt, the .04 tax increase on a home worth $300,000 would be $38 more than current taxes and $78 more than current taxes on a home worth $600,000 in the first year. These estimates reflect blending $4 million in restructured current debt and $32 million of new debt taken on through bond sales for the project and paid back through 2024. Once the bonds are repaid, the tax increase goes away.
• Renovations at the elementary schools would not be part of this project, but could be funded over time as needed through the district’s regular capital improvement process.

The BOE discussed the need to provide detailed and accurate cost information to taxpayers prior to a referendum. Elizabeth Hennessy of William Blair said the cost to an individual taxpayer over time cannot be stated with precision: while the dollars that D41 will need to levy in taxes to cover the debt will be a fixed amount, the cost to individual homeowners will vary according to individual property values and growth in total property value in the district. She said she would work with the assessor to see if trend lines could be developed to help homeowners understand the long-term cost. Restructuring the debt and spreading repayment over time means that long-term interest charges will add to the overall cost; however the debt is more affordable on a yearly basis. Also, said Hennessy, spreading the debt over time distributes the tax burden among those residents who will benefit over the life of the building. The BOE made no commitments regarding financing options.

NEXT STEPS
At its Dec. 19 meeting, the BOE will discuss and possibly vote on a ballot question for a March, 2006 referendum. In January, the administration will present a preliminary framework for implementing program changes including expanded math, foreign language and co-curricular activities.

TENTATIVE TAX LEVY: The BOE approved the tentative Tax levy for 2006 pending final adoption at the Dec. 19 meeting.
The law requires the levy to be submitted in December, before the district has established its budget and before the figures on which the tax rate is based are available from the County Clerk and the Assessor’s Office; that means the district is estimating what its levy should be. If its estimate is too low, it cannot adjust its levy upward and will lose money that it is entitled to. If its estimate is too high, the County Clerk will adjust the levy to the correct level once the figures are in. To make sure the district receives its legal tax rate, the tentative levy of $34.1 million represents an increase of 15% over last year’s extension; D41 actually expects to receive an increase of approximately 5.42%. In addition, the district expects to receive $2.5 million in taxes for its bond and interest fund, dollars which are not included in the levy request. The increase that individual taxpayers will pay varies depending on such things as how much their property has appreciated that year, if they’ve made improvements to their property and other factors.

The County Clerk calculates the legal rate in the spring. In a nutshell, the Property Tax Extension Limitation Law (PTELL, also referred to as the Tax Cap), says school districts may receive what they received the previous year plus a small increase for inflation (3.3% for this tax levy). Property taxes on new construction provide additional dollars beyond the capped amount for the first year a property is on the tax rolls and raise the base from which taxes are calculated for the next year. Assistant Superintendent for Finance, Facilities and Operations Kris Monn noted that D41 receives most of its funding from local property taxes and very little from state or federal sources. In less affluent areas of the state, more funding is received from state and federal sources. Board member John Kenwood stated that the Finance Committee is looking into ways to reduce costs across the district.

NEXT STEPS
The Truth in Taxation public hearing notice will be published in the Glen Ellyn News, the tentative levy will be posted on www.d41.org and made available at the Central Services office, 793 N. Main St. The BOE will vote on the levy after the Truth in Taxation public hearing at 7:00 p.m., Dec. 19 preceding the regular BOE meeting. The County Clerk will adjust the levy to the legal rate in the spring, once the total EAV is known.

Tentative Capital Improvement plan approved
The BOE approved a tentative $1.52 million plan for maintenance and improvement projects throughout the district. Among the proposed projects are plumbing improvements, air conditioning units, the addition of storage and work space, new gym flooring, compliance projects for the Americans With Disabilities Act and other improvements. District officials noted that costs are estimates only and that getting out to bid early will help them obtain favorable pricing.

NEXT STEPS
These projects will be included in the FY 2006-2007 budget that will be proposed for adoption in late spring.

Gifted Services to serve K-8
During the Continuous Improvement in Teaching and Learning segment that precedes the BOE meeting, District Gifted Specialist Beth Still provided an overview of the changes underway in Gifted Services. In order to better serve students and align with Board policy and changes in the law, the program has been restructured to serve all grades, focusing on approximately the top 5% of students in each school. Eligible students are identified through a variety of tests and observations including non-verbal assessments for Kindergarten and non-English speaking students. The program focuses on extending the math and literacy curriculum for those students whose needs cannot be properly met solely in the general education classroom.

NEXT MEETING
The next regular BOE meeting is set for Monday, Dec. 19, 7:30 p.m. at Central Services, 793 N. Main St., Glen Ellyn. The meeting will be preceded at 7 p.m. by the Truth in Taxation public hearing.