LTHS: Too Many Projects, Not Enough Money

LA GRANGE, IL – Lyons Township High School board members are still grappling with how to curtail their plans for building projects.

In March, the board discovered that bids for this year's projects came in 25 percent higher than expected, or about $6.5 million.

That leaves far less money for projects over the next couple of years.

In a memo last week, the school administration recommended creating bid specifications for three North Campus projects – additional air conditioning, restroom renovations and an elevator renovation. That work is expected to cost $11.6 million.

Meanwhile, the administration suggested deferring three other projects – the installation of a turf field at West Field, North Campus classroom modernization and the installation of an additional elevator at North Campus. That all is estimated to cost more than $12 million.

Earlier this year, the district issued $28 million in bonds to pay for projects. But this year's work is set to cost nearly $33 million. That means the school will dip into its bank accounts for the rest.

The school's fund balance is now $56 million, according to the memo. That works out to 53 percent of the school's yearly income. The school's auditors recommend 50 percent, officials said.

The $56 million balance is a big factor in the school's top bond rating, which results in lower borrowing costs, officials said.

If the school spends as much as $8 million from its bank accounts for next year's projects, its balance-to-income ratio would drop to 45 percent, according to the school.

"There's been conversation at this table and in the community that we're holding on to a lot," school board President Jill Grech said at Monday's board meeting.

However, Brian Stachacz, director of business services, said the school is about right with its balance.

"At 53 percent, that's a healthy, non-excessive fund balance," he said.

Board members also noted that they could pay for projects by selling the school's land in Willow Springs.

Last year, the board prepared to sell the site to an industrial developer, which led to an outcry. The board backed off and now appears to be moving in a new direction – selling to a developer that plans residential or small retailing uses, allowable under Willow Springs' zoning.

Board member Jill Beda Daniels mentioned another possibility to bring in more money.

"If we ever decided to have a referendum, this is a way we could fund the projects, too," she said.

Stachacz confirmed that was correct. But he said he didn't want to be the first one to say it, likely referring to the political peril related to tax hikes.

Board member Michael Thomas said he was disappointed that more money would be spent on air conditioning at the expense of classroom modernization at North Campus.

The board plans to resume the discussion at its May 20 meeting. It also may vote on hiring an architect to create bid specifications for next year's projects.