All of the proposed projects and upgrades come with a cost. Most of the big stuff, HVAC replacement, HVAC controls, roofing, and restroom renovations can be done with the tax increase they just passed on your behalf (yes, the Working Capital Bond issue will increase your taxes!). Other items don’t seem so necessary and were not included in the first call for facility upgrades in July and October 2023: ‘upgrade’ Public Address systems, wireless dialers, and 6-foot fencing to replace existing 4-foot fencing for $600k. Playground resurfacing for $5.0 million? That came in December 2023.
These are not all in line with how you may have prioritized them, but they didn’t ask you. And when some attempted to tell them, they didn’t listen. And when questions were asked, the questions were ignored. Yes, we elected them to make decisions. We did not expect them to ignore our questions and concerns. The Big Deal is they still don’t have the money to do all these things! They will need at least another $21 million! They’re going to take it from you!
So, let's talk financial responsibility and financial planning. The Phase 1 plan calls for spending over $2 million from Health and Life Safety (HLS) Funds. They only have $1 million in HLS Funds. They do have $8.86 million in collected tax revenue reserves right now. O’Fallon District 90 Policy calls for maintaining a year-end Fund balance to revenue ratio of 15-20%. 20% is $8.0 million. $8.0 million of Our Tax Money in reserves? For what? Oh, to pay for important things like HVAC and restroom upgrades? Maybe the reserves need to get spent on paying for this stuff! I say a 5% reserve is a lot, at $2.0 million. True contingencies can be paid for with short-term borrowing and/or Tax Warrants.
Therefore, they currently have only $860k available, plus the additional tax revenues from fiscal years 2025 and 2026 to pay for the additional $21.5 million of projects in Phase 1, after they spend the $18.5 million in Working Capital Bond sales. That additional tax revenue is maybe $3 or $4 million more?
Phase 1 is for the period 2024–2026, Phase 2 is 2027–2029, and Phase 3 is 2030–2032. Supposedly “Budgets identified for Phases #1 & #2 only”. Where was the Phase 1 budget? Where is the Phase 2 Budget? It looks like a huge shortfall to me. Smells like additional borrowing to me. Means more tax revenue needed; from Our Tax Money!
The recent District 90 posts were submitted by Steve Springer