Du Quoin Commissioner Builds Safeguard Into Sales Tax Agreement With Dist. 300

</element><element id="paragraph-1" type="body"><![CDATA[Revenue from a half-cent sales tax intended to retire the local share of bonds for a new Du Quoin High School will begin flowing to Du Quoin Community Unit District 300 again on or after August 8, 2010.

Had it not been for District 300 attorney Jerry Smith stepping to the microphone and telling the council that the school's bond counsel probably wouldn't approve the sale of bonds without the revenue stream nailed down, the funds would still be parked in city coffers.

Opinions differ as to whether the city council should be the gatekeeper for a voter-approved referendum that would use the half-cent sales tax to retire between $3 million and $6 million for the new school. The Illinois Capital Development Board will fund at least $10.5 million of the project, but costs in the last seven years have grown to $7 million.,

But, because the city is providing the conduit under Home Rule legislation to collect the tax and forward it to the district, the council feels it does have a say. Secondly, the leaner the project is and the sooner the debt is retired the sooner the city can begin capturing the $300,000-plus annually for its own use. It remains unspoken, but the city' s fiscal position changes substantially in no longer being able to keep the money.

In fact, the next check to the district is timed to the receipt of sales tax revenues on or about August 8.

At the outset, Mayor John Rednour suggested the city begin channeling the revenue to the district in three months, better timed to the signing of a contract for construction of the main high school building.

Commissioner Rex Duncan's career has always been tied to education, but he has always held suspect how the district has styled paying for the demolition of two schools, constructing new parking, improvements to VanMetre Field, etc. without the state's capital development funds in hand.

Monday night, Duncan asked for a paragraph to be included in the amended government agreement that would safeguard against what's known as "scope creep" or "project creep"--the habit of growing projects beyond their original intent and design as money is found to pay for it.

Supt. Kelly not only assured the council that this isn't happening, but told the council the school board has invoked a cost cap on architect Paul Lunsford so that there is no benefit to growing the project.

City attorney Aaron Atkins and District 300 attorney Jerry Smith will co-author the language of that provision. Essentially it will commit the school board to holding the school board to the original parameters of the project, the retiring bonds as soon as possible if the state adds money to its original $10.5 million capital construction grant.

The school board meets this week and must also approve the language change.

Kelly called all of the work on the high school plan "transparent" and said it is the board's hope to retire the bonding with the sales tax as soon as possible and that none of the costs will fall on taxpayers in the form of higher real estate taxes.

Kelly has said repeatedly that the key to the success of constructing a new high school and its industrial arts annex is in keeping everyone engaged.

Commissioner Kathy West told all at the meeting, "I hate it that we can't do all of this with a handshake." West is a longtime educator who recently retired from the high school staff. She added that a lot of the project questions are questions better asked at a school board meeting.

Commissioner Linda Fronek said, "We need to do what the voters wanted."

In other action, the council is trying to reach a settlement with Banterra Bank on settling the remains of a fire-damaged house on South Mulberry Street. Banterra says it still has a financial position on the property in terms of an outstanding mortgage. Except for the land, there are no assets securing the mortgage and it was even suggested by one council member that the charred debris sitting on the property as a health and safety danger be trucked to Banterra if the bank doesn't believe it. The goal of health and safety officer Ron Darnell is to get this property and another one at 9 South Maple cleaned up to make them safe again.

The council also approved:

A. Resolution 2010-R07-01: A resolution authorizing the City to enter in to a grant agreement with the Illinois Law Enforcement Alarm System.

B. Resolution 2010-R07-02: The council tabled a resolution supporting the closure of Route 51 to facilitate the Du quoin State Fair Twilight Parade. The council was told that some of the paperwork is not completed.

Council members also spent a great deal of time extending its appreciation to Du Quoin Emergency Services for landing a $70,000 grant that will dramatically upgrade its operations building and early warning readiness.

At every turn, the council had nothing but praise for the work of the men and women of ESDA, seen as a statewide model for emergency preparedness.

Commissioner West also thanked everyone for the success of the Fourth of July fireworks, congratulated the swimming Indians for their success and congratulated the Du Quoin Library for the success of its "gourdeous gourds" project. That project raised $781 which will be used toward the $2,900 match for a Gates Foundation technology grant.

The council then went into executive session to discuss collective bargaining.