Health Club at Moraine Valley & McHenry County Community Colleges Could Tap Faculty Salaries

Moraine Valley Community College sold alternative revenue bonds a year ago to finance a health club and other structures.

Moraine Valley Community College sold alternative revenue bonds a year ago to finance a health club and other structures.

I’m looking at the alternative revenue bond statement approved by bond counsel Chapman and Cutler.

How does the document say they will be paid off?

“…payable from

  1. the construction/infrastructure improvement fee imposed upon students of the District (the “Improvement Fee”), wellness center membership fees and other lawfully available funds of the District (the “Pledged Revenues”); and
  2. ad valorem property taxes levied upon all of the taxable property in the District without limitation as to rate or amount (the “Pledged Taxes” and together with the Pledged Revenues, the “Pledged Moneys”), and all taxable property in the District is subject to the levy of such taxes…

That’s pretty much what Power Wellness’ so-called feasibility study is pointing toward for McHenry County College’s $45 million health club and other additions.

Page 6 of the document puts it this way:

If student fees and health club fees are not enough to pay back the bonds, money will come out of the education fund.  That means repayment of the alternative revenue bonds at Moraine Valley Community College would come before paying faculty.

If student fees and health club fees are not enough to pay back the bonds, money will come out of the education fund. That means repayment of the alternative revenue bonds at Moraine Valley Community College would come before paying faculty.

Of course, Moraine Valley only borrowed $5.4 million, not the $45 million that McHenry County College officials are banding about..

No need to ask for voter permission for these alternative revenue bonds.

And the team in charge of the MCC Board won’t.

And that means that if the project is NOT self-supporting, then the current MCC board has to cut funds available for operating purposes — including teacher salaries — for the next 30 years!


Comments

Health Club at Moraine Valley & McHenry County Community Colleges Could Tap Faculty Salaries — 2 Comments

  1. This is just one more example how out of touch local Boards and Commissions are with the distrastrous economy.

    They just don’t get it.

    There is a glut of health clubs; taxpayers shouldn’t be put into further debt for the extravagance of the MCC Board, or any Boards, and taxing bodies, for that matter, that spend, spend, spend.

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