District 113A Administration to Recommend $8M Working Cash Bond Referendum for Board Approval

Administrators and financial advisers in Lemont-Bromberek Combined School District 113A will recommend approval of an $8 million working cash bond referendum at a special school board meeting Tuesday night.

Though District 113A board members that a limiting rate referendum would be the best option for the April 5 ballot, documents in Tuesday's meeting packet indicate that the administration will recommend a working cash bond referendum instead.

According to the documents, the administration's recommendation is that the board "not consider a limiting rate increase at this time due to issues related to the timing of when the possible increase is applied to the tax rolls. Additionally, the administration recommends the board consider a limiting tax rate increase at another election in the future in order to maximize the increase considered, if approved."

The administration is recommending a working cash fund bond with debt restructuring, which advisers say is "the most conservative approach, follows the district's financial plan, eliminates borrowing tax anticipation warrants and is the lowest possible cost to the tax payer when approved."

According to the documents, the recommendation is based on research conducted by PMA advisers Bob Lewis and Don Weber.

If a limiting rate referendum was to be to approved, DuPage County would not change the 2011 bills to reflect the new tax rate, so funds would not be received until June 2012, according to Lewis. Cook County would likely follow suit, meaning proceeds would not be seen until March of 2012.

Additionally, PMA representatives found that fund balance and cash flow problems would continue to exist with a limiting rate referendum, and restoration of staff and programs likely would not occur until the fall of the 2013-2014 school year. Borrowing would likely also continue, they said.

"With the possibility of not receiving funds until 2012 or 2013 in a limiting rate referendum, the administration, with advice from PMA, does not feel it is prudent to go for a limiting rate referendum in April 2011," administrators said.

According to the recommendation, approving an $8 million working cash bond referendum with debt restructuring would follow the two-step solution offered by Weber and PMA earlier this year, which is to first stabilize the district's finances, and then go to the public with a limiting rate referendum.

District 113A officials are expected to vote on a final resolution at their meeting, since Tuesday is the final day to adopt referendum questions for the April 5 consolidated election. According to the meeting packet, PMA advisers will make a more detailed presentation to the board regarding their referendum research.

Board President Lisa Wright declined to comment Monday on the administration's recommendation, which goes against the consensus reached by the board last week. Superintendent Tim Ricker was unavailable due to the Martin Luther King, Jr. holiday.

However, in to Lemont Patch and District 113A board members and administrators, more than 30 Lemont residents spoke out against the approval of a working cash bond.

The special meeting will be held at 7 p.m. Tuesday in the Old Quarry Middle School LRC.