Potential Bond Issuance FAQ
August 8, 2017
The following list is a collection of frequently asked questions regarding the new district administration center and the potential issuance of bonds.
To read a timeline narrative about the district’s process and decision points over the past several years regarding the administration center and consideration of issuing bonds, please click here.
What is the cost for the new bonds the district is considering?
The district is considering issuing bonds of either $10 million, $15 million, or $20 million in bonds.
How much would the bonds raise property taxes?
The issuance of $10 million in bonds would result in an approximate annual property tax increase of $10.01 for a house valued at $250,000, and the debt would be paid off in 2023.
The issuance of $15 million in bonds would result in an approximate annual property tax increase of $14.95 for a house valued at $250,000, and the debit would be paid off in 2024.
The issuance of $20 million in bonds would result in an approximate annual property tax increase of $19.90 for a house valued at $250,000, and the debt would be paid off in 2025.
Will the bonds be used to increase staff salaries or increase staff personnel?
The bonds can not be used for staff salaries and will not be used to increase district personnel.
How much does the district have in reserves, and if they have a fund balance, why do they need to issue bonds?
The district presently holds a fund balance of $110,747,601.
Over the past several months, a number of financial challenges have increased the uncertainty for the district’s financial position. Financial challenges the district must consider include, but are not limited to:
- Providing the resources needed to best meet the needs of our students who come to us with educational, emotional and language deficits
- Uncertain state and federal funding
- Legislation negatively impacting the financial health of the school district
- Tax cap freeze
- Pension cost shifts
- School funding reform
- Rising costs of health insurance
- Rising costs of construction
While the district will strategically deficit spend into the reserves this year, the issuance of the bonds will ensure financial stability, the continuation of programs to best support students, and protect against the financial uncertainty at the state and federal levels.
The district is committed to responding to the current financial uncertainty and balancing the budget, and the bonds would help provide financial stability as the budget balancing process is completed.
What will the bonds specifically fund?
The bonds would be used to pay for a portion of the administration center, renovations at Devonshire School and Friendship Junior High School, and capital projects across the district such as updating school roofing.
Will the bonds result in a permanent increase in property taxes?
Once the bonds are paid back, property tax levels would be reduced by the increase resulting from the bonds. Residents would see the decrease in 2025 for $20 million in bonds, the decrease in 2024 for $15 million in bonds, and 2023 for $10 million in bonds.
Where will the new administration center be located?
The new administration center will be located at 999 Leicester Road in Elk Grove Village.
Who owns the land at 999 Leicester Road?
CCSD59 owns the property at 999 Leicester Road, and this was the previous location of Lively Junior High School.
Did the district consider building the new administration center in the industrial park in Elk Grove Village?
Yes, the district investigated the possibility of building the new administration center at an alternative property, including the possibility of building in the Elk Grove Village industrial park, but the investigation found the district would have to purchase property which would incur additional expense for the project and take a taxing entity off the tax rolls.
Will there be green space remaining after the administration center is completed?
Yes, there will be green space remaining after the building is complete, and the free space would allow for the park district to use the remaining portion of the field for two soccer fields if they choose. The plan also allows for local residents to continue to use the land for activities such as taking daily walks. To view a conceptual draft overlay of the new administration center, click here.
Will there be additional traffic down residential streets?
As part of the planning process, the district conducted a traffic study from an independent agency, which found there would not be a significant impact on local traffic, and the only increase in neighborhood traffic anticipated would be minimal from employees who live in the neighborhood.
Will Pirate’s Cove parking be impacted?
Patrons at Pirate’s Cove would continue to be allowed to use available district parking.
How long has the district been considering the building of a new administration center?
To view a comprehensive timeline of the new administration center decision process, click here.
Was the community given the chance to provide feedback on the project?
Yes, two community listening sessions were held in December of 2015, and a survey was issued to the community and CCSD59 staff to solicit feedback.
What would happen if the district decided to stop the building of the administration center at this point?
At this point in the timeline, the option to discontinue the building of the administration center would result in the district incurring costs to negotiate or litigate out of the construction contracts. With design costs already paid for, attempting to discontinue the building of the new administration center may result in costs over $5 million. The district would also need to attempt to terminate the sales contract for the existing properties already sold.