McHenry County Blog

Not only does the McHenry area have a ten cents per $100 of assessed value referendum on the ballot to create a new countywide taxing district the $9 million proceeds (first year’s estimate tax take) of which will go to help developmentally disadvantaged individuals, but there’s a $2.2 million bond issue, too.

Here’s the referendum question that McHenry High School District voters will face.

In its February newsletter, the District explains,

“This opportunity would provide the district the ability to reinvest $2.2 million in interest savings. The savings generated will be spent on technology and necessary capital improvements, in particular, additional safety and security measures.”

Further,

“None of the money will be used for school administrator or teacher salaries. All of the money generated will be used for technology and capital improvements which include safety and security.

“If the question is unsuccessful, taxpayers who own a $200,000 home will see an average refund of $14.00 per year in the bond and interest portion of their tax bill over the next eight‐year payback period.

“If the question is successful, taxpayers will see no increase in the bond and interest portion of their tax bill.”

Details on planned expenditures can be found here.

For $35 you can meet and mingle with those who support Lakewood’s Tom Wilbeck for McHenry County College Board.

On his invitation, Wilbeck stresses,

“Tom is opposed to MCC issuing bonds for expansion without voter approval.”

The event will be held at the London Club, which is across the street from 1776, on March 14th.

Details are below:

The top of the Jan. 30th Tribune article.

David McSweeney knows how to pick ‘em.

And Jack Franks has been a master of gaining publicity for virtually his entire 14-year legislative career.

McSweeney came up with the idea to reform the alternative revenue bond process and had a bill drafted.

The changes he proposes and Franks buys into would give the taxpayer s of McHenry County College a change at defeating ill-conceived projects like the minor league baseball stadium and the proposed health club at the ballot box, rather than paying higher taxes for a couple of decades if the revenue stream identified to pay off non-referendum bonds turns into a trickle.

For those who don’t dip into McHenry County Blog that often, alternative bonds are a method approved by a previous state legislature that allow government entities, such as Lakewood with its early 1990′s golf course purchase, to borrow money for projects without going to referendum.

The premise in Lakewood’s case was that golf course revenues would pay off the bonds.

And who came up with the projections?

It was a golf course management company with no skin in the game.

I feel so personally involved because I and other Lakewood homeowners paid 53% of the cost of an amenity which I have never used.

The alternative bond document forced subsequent village trustees to flay repayments off the hides of us taxpayers.

McHenry County College is now trying to do this in order to build a health club and classrooms.

That addition space will cost a lot more than the now-re-named RedTail Golf Course, although the price per homeowner, if muscled through by the MCC Board and the revenue projected by the health club operator company Power Wellness don’t pan out, would probably be far less than the $500 a year that I remember paying.

There is currently a way that taxpayers can force a referendum when a taxing district like McHenry County College decides to borrow money without asking voters for permission, but the number of signatures needed on a petition is virtually impossible to gather.

In MCC’s case, state law now says that signatures of 7.5% of the registered voters must sign the petition.

That’s 7.5% of 182,766 voters.

Multiply that out.

My hand multiplication tells me that’s 13,709 signatures.

A bit more than the 500 that Jack Franks had to gather to put the County Executive referendum on the ballot, so he can certainly understand the statutory hurdle of those wishing to stop their tax bill from going up because of alternative revenue bonds.

The McSweeney-Franks bill would lower the petition signature number to 5% of the voters or 500 signatures, whichever is less.

The legislative proposal would also increase the length of time to gather those signatures from 30 to 90 days.

That would at least give the taxpayers a chance if the junior college decides it wants to borrow over $40 million without asking voters’ permission.

Besides the Tribune article on Wednesday and mine on Tuesday, the Northwest Herald has one today.

While the Tribune did not make the McHenry County College connection, the NWH did in its first sentence:

“Legislation filed this week in Springfield could make it harder for McHenry County College to fund its proposed expansion.”

And, the sub-headline reads, “The locally sponsored legislation could affect MCC plans.”

The article even mentions RedTail Golf Course.

The Crystal Lake Park District regularly sells bonds without a referendum. That’s how the West Beach House was financed. There are two seats on the Park Board which have no candidates. Two write-ins could win, but candidates have to register their intention to run. Email me if you are interested.

And a commenter under the article “Patrick F” of Cary points out that the Cary Park District was planning to buy a golf course (its second) with bonds not approved by voters.  (I believe he is mixing up the power that all park districts and other local tax districts that had non-referendum bonding in 1994–may be a year off.  State legislation I actively opposed allowed those with unpaid non-referendum bonds to forever use the amount being paid back in the year in question to finance new borrowing without voter approval.  That is how the Crystal Lake Park District is financing its new West Beach House.)

See articles summary of Tribune articles about what happened to Lakewood homeowners here:

• Lakewood Red(Ink)Tail Golf Club Alternative Revenue Bond Failure Featured in Chicago Tribune – Part 1
• Lakewood Red(Ink)Tail Golf Club Alternative Revenue Bond Failure Featured in Chicago Tribune – Part 2

Tuesday’s McHenry County Blog article (“McSweeney and Franks Send Shot Across McHenry County College’s Bow) about newly-introduced House Bill 983 can be found here.

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.

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!

The entrance to the Island Lake Village Hall.

Taxpayers in Island Lake are passing petitions to force a vote on whether the Village Board can sell bonds to build a new village hall,

One of them is Jot Ptak, who ran unsuccessfully ran for the Village Board in 2011 and is known nationwide for forcing the League of Women Voters to allow the Pledge of Allegiance at the debate between Joe Walsh and Melissa Bea.

Ptak told McHenry County Blog,

“Many of us are collecting more than enough petition signatures necessary to put this NO NEW VILLAGE HALL  referendum on the ballot in November.”

The required number of registered voter signatures for referendum in Island Lake is 78.

The petition will be filed Monday.

The proposed entrance to the minor league baseball stadium that struck out.

As the McHenry County College Board and a majority of the Crystal Lake City Council learned, most people don’t think their tax dollars should be used to prop up those wanting to build sports stadiums.

Now, Crain’s Chicago Business has popped for a 600-person survey on the subject.

Aimed at the efforts of the owners of Wrigley Field and the United Center to secure government subsidies, the survey, of course, does not mention the efforts of the MCC Board to force taxpayers to be the backup source to pay off millions and millions of dollars of bonds, if the proposed minor leage baseball team went belly up.

But, I imagine there would be similar results if MCC taxpayers or Woodstock taxpayers were asked if they wanted to shell out tax dollars to help pay for a sports stadium.

Quoting from the story:

“A whopping 80 percent — the majorities were overwhelming in Chicago, the suburbs and elsewhere — are opposed, agreeing that teams ‘as companies should pay their full tax no matter what.’”

That dropped to 50% against when the Cubs and United Center proposals were outlined, a bit lower in the suburbs (where, I would note, there would not be a cost for the proposed Chicago tax breaks for the stadium owners).

A golf membership card arrived in the mail today from the Turnberry Country Club. The club has even figured out that my wife has played golf most recently, but somehow managed to call her a "Jr."

No initiation fees.

That’s what the post card I got today at my non-Turnberry Lakewood home said.

Just spend $355 a a month, if you join on your own, or $580 a month for the whole family.  Tennis courts included, but I don’t see mention of the swimming pool.

Four types of memberships are available at Turnberry Country Club.

The Turnberry Country Club, of course, was what Lakewood’s Turnberry Subdivision was built around.  It was a private club, but fell upon hard times.

There’s a lot of that going around, I believe.

See Lakewood’s “ Red Tail Golf Course in Trouble,” for instance.

Now, Turnberry is apparently loosening membership requirements.

I’ve wondered more than once recently why Lakewood’s taxpayer-owned golf course could not be combined with Turnberry.  The village could allow widening of roads between the two courses so golf carts could go from one to the other.

The Red Tail Golf Course Clubhouse would never be put on a promotional piece.

Maybe share clubhouse profits, if any.

Lakewood residents might want to attend the 6 PM village board budget hearing next Tuesday evening.

The bonds for buying the golf course will finally be paid off after this year’s taxes are collected.

Taxpayers will own the property and the question is what to do with it.

Advocates of Red Tail undoubtedly want to build a new club house to replace the trailers and, as long as I and other real estate taxpayers have no personal exposure, I guess that’s worth considering.

Watch my reaction if there is a proposal similar to the one in the early 1990′s, however.

Then, three of us when to a village board meeting.  I asked if it “was ever going to cost me a dime” and was told it would not, that the bonds to finance buying it would be revenue bonds, not general obligation bonds.

A former village trustee expressed the opinion that the village should not even consider being in the golf course business and Jim Bishop pointed out that golf courses were in trouble all over the county.

The definition of "member" is being loosened at Turnberry.

Imaging my astonishment when I discovered some sweet talking bond adviser convinced the village board to issue what are called “double-barreled” bonds.  They provide for payment by the general taxpayer (you and me) if the project’s revenue is inadequate to pay off the debt.

It was and we paid.

$500 a year.

That annual cost made me such a believer in having referendums before a public body can go into debt!

If my village board decides to follow that example, expect to see me petition in hand at my Lakewood neighbor’s doors…even if it is 10 degrees below zero.

A $417,000 “oops” will be considered by the McHenry County Board on February 15th.

The McHenry County Board constructed its new administrative building across the road from the jail, borrowing over $8 million without voter approval.

The finance folks thought that amount, plus interest, had been paid off, so budgeted zero for this year.

But, there was another payment due of $417,174.57.

Three days after it was due, the Bank of New York apparently contacted the county about the delinquency.

The payment was expeditiously paid.

Tuesday, the County Board will pass a resolution providing the paperwork for that final payment of the non-referendum borrowing.

Vicky Smith

In Qi GU’s Daily Herald’s story about the appointment of appointment of Vicky Smith as McHenry County College’s new president appears the following sentence:

“She will focus on the expansion of facilities and academic programs, especially in health care and manufacturing, to meet the needs of the McHenry County work force.”

To expand college facilities, financing would have to be obtained.

The last time expansion of health care facilities and academic programs was discussed was during the baseball stadium consideration.

You will remember that the stadium was going to help pay for the nursing program labs and classrooms.

The only way to get such money now, it seems to me, is with a bond referendum.

So, is one of the tasks Smith has been assigned to accomplish is to pass a bond referendum to finance the “expansion of facilities” about which she spoke?

Of course, the board could take up my suggestion to approach local hospitals and nursing homes who would directly benefit from a nurses’ training program to finance such a facility.

The pre-Crystal Lake posts of my father’s biography can be found by looking down on McHenry County Blog.

100 W. Crystal Lake Avenue today. The house is the same, but the intersection is much more functional.

Dad rented a home at 100 W. Crystal Lake Avenue. We started school there (the junior class built its Homecoming float there) as Mother and Dad looked for something that would allow more access to the lake for the 50-horsepower Wolverine outboard boat we bought that summer. The boys of the previous tenants had used the attic as a BB gallery. The BB’s were everywhere.

Soon my parents found a home to rent at 800 West Broadway in Lakewood, but, more importantly in the Country Club Addition Property Owners Association. That gave us the right to keep our boat in the lake.

Dad became the association’s secretary, maintaining up-to-date Address-O-Graph plates for what was probably decades.

Since there was no Rotary Club in town, Dad joined the Crystal Lake Kiwanis, where he became the long-time secretary, doing the tedious record-keeping job of the first service club in Crystal Lake.

After the November election, Dad received a “thank you” letter from the ward committeeman in Chicago where he lived.

My father, a ghost voter in 1958. Who would have believed it?

Having been active in politics in Easton, Maryland, Dad was determined not to become so in Crystal Lake.

Crystal Lake, the reason the Skinners moved to town. In the center, where you see the pontoon boat, Mr. Litzenburger anchored his splendid Chris Craft board.

It took two years for him to break his pledge.

The Crystal Lake High School District was holding a bond referendum during the spring of my senior year. He started writing letters to the weekly Crystal Lake Herald. The next week the school board’s president would reply. My father would offer a rebuttal the next week. (None of the current Northwest Herald nonsense of only allowing one letter a month.) This went on until I knew the teachers were looking at me and pointing out I was the son of the guy trying to defeat the bond issue.

The bond referendum lost. Since it was my last semester and Oberlin College had already accepted me, my grades didn’t matter as much, but I don’t think any of the teachers retaliated. I still remember standing in the study hall while a couple of teachers looked my way from the westerly hall near Ken Tarpley’s speech class room. I wondered if they were saying, “There’s his son.”

Later Dad ended up on some committee to solve whatever space problem was perceived and, when he discovered that the football field had to be moved, he asked if a sidewalk could be built. I suspect that was his major victory on the committee.

Now, too often, I tell my son as we drive on Wallace, “That’s my Dad’s sidewalk.”

”I know, Dad. You’ve already told me,”

my son replies, sometimes in an irritated tone of voice.

When Richard Nixon ran for office in 1960, Dad became head of his local citizens committee. That put him in touch with the Republican precinct committeemen.

At some point in the 1960′s, Dad took over the publication of the Government Improvement League Newsletter, GIL Newsletter, for short. He wrote about assessments and taxes.

Dad’s office at the Barley and Malt Institute was in the Builder’s Building on Wacker Drive when he started work.

After the lease ran out, he convinced his board to move the office to Des Plaines. (“If we ever meet in Chicago, it will be near O’Hare, not Downtown Chicago.” They agreed. It was on the corner of Route 14 near the train station across from the movie theater in an old Masonic Hall.)

When that lease came up, he asked if he could move the office to Crystal Lake, arguing that if the board ever met in Chicago, it would be at a hotel near the airport, not in the Des Plaines office.

He ended up on Brink Street, later on the second floor on the west side of Williams Street, then the tip of “V” in the Crystal Lake Plaza and, finally, at Mike Janek’s old auto dealership on the corner of Woodstock and Brink.

More tomorrow.

= = = = =
Links to all of the articles can be found below:

Biography of Calvin L Skinner – Part 1 – Second Son, School Years

Biography of Calvin L. Skinner – Part 2 – College, Marriage, First Jobs

Biography of Cal Skinner, Sr. – Part 3 – First House, Elected President of the Easton, Maryland, Town Council

Biography of Cal Skinner, Sr. – Part 4 – Storm Sewer Grates, Miles River Yacht Club, Slot Machines, Chesapeake Bay Bridge

Biography of Cal Skinner, Sr. – Part 5 – Switching Parties, Moving to Salt Lake City, Middletown and Crystal Lake

Biography of Cal L Skinner – Part 6 – The Early Crystal Lake Days, Dipping Feet Slowly into Political Arena

Biography of Cal Skinner, Sr. – Part 7 – Running for County Auditor, Precinct Committeeman, Calling the Meeting that Led to McHenry County College

Biography of Cal Skinner – Part 8 – The Star Reporter, Daughter Ellen Bored in High School, Prohibited from Attending MCC Classes

Biography of Cal L Skinner – Part 9 – Responsible Republicans’ Slate, County Board Reapportionment

Biography of Cal Skinner, Sr. – Part 10 – Unsuccessful County Clerk Try, County Airport Fight, Wife’s Death