McHenry County Blog

A press release from Carpentersville School District 300:

Board approves new CFO

Susan Harkin

The District 300 Board of Education approved tonight (Tuesday, May 29) Susan Harkin as the district’s new Chief Financial Officer.

She replaces Cheryl Crates, who is retiring on June 30 after nearly eight years as D300 CFO.

Harkin will begin her employment with D300 this summer, though her effective start date is currently being determined.

A three-round selection process produced Harkin as the ideal choice for the district. Roughly two dozen persons applied for the position this spring.

They were eventually narrowed to a field of three candidates, who each faced an in-depth interview with a team of Central Office administrative leaders and support staff before going on to a final interview with Superintendent Michael Bregy and Associate Superintendent Sarah Kedroski.

Harkin earned both her bachelor’s degree in accounting and her master’s degree in school administration from Northern Illinois University. She has experience in maintaining a balanced budget, collective bargaining, upgrading infrastructure, long-rang capital improvement planning, managing payroll, developing financial projections, and overseeing operations, technology, food service, and transportation. She is currently the CFO for Crystal Lake Elementary District 47, a position she has held since 2009. Her previous employment included three years as the Associate Superintendent of Community Consolidated School District 62 in Des Plaines, as well as serving as the Business Office Manager here in D300 from 2000 to 2006.

Her prior work experience in the D300 Business Office will hasten her ability to successfully take the helm as CFO, as will her being a long-time resident of West Dundee in D300. Harkin has six children who attended and graduated from D300 schools, and she was an involved volunteer in D300 schools for many years.

But it was not only her professional and personal familiarity with D300 that set her apart in the selection process.

Tuhrough her role on the Board of Directors for the Illinois Association of School Business Officials (IASBO), Harkin has the contacts to keep D300 well informed of best practices, emerging financial issues, and relevant legislation. Su

Superintendent Bregy said that she has also demonstrated the ability and willingness to enhance the D300 Business Office’s collaboration and communication with other departments.

This will be crucial to fulfill Bregy’s vision of an operational and budgetary structure that is more directly aligned with the district’s teaching and learning goals.

“Susan was chosen not only because of her financial and leadership skills but also her natural ability to build effective relationships and passion to improve the quality education for all students,” Bregy said.

“Susan facilitates rather than dominates, and she will be a refreshingly positive part of our new team.”

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Harkin makes $146,000 in Crystal Lake. She will receive $165,000 at District 300.

A press release from School District 300:

Search begins for new CFO

The District 300 Board of Education accepted a notification letter tonight (March 12) from Dr. Cheryl Crates, D300 Chief Financial Officer, of her intention to retire this summer.

The Board had previously agreed for Dr. Crates, who is nearly 65 years old, to retire in summer 2014.

Cheryl Crates points to numbers at a 2008 Legislative Briefing Session.

Instead, she will retire this summer, effective June 30, 2012.

She cited two primary reasons for pushing up the date of departure: the need to spend more time with and caring for her family, and the resolution recently achieved on the Sears EDA legislation.

Her initial plan to retire in 2014 was somewhat tied to the expiration of the current EDA, so that she could assist district leaders in negotiating any proposed extension of the EDA.

Superintendent Michael Bregy said that the district will conduct its own recruitment and will not employ an outside search firm.

The position has been posted to the D300 website.

Mr. Bregy said the goal is to complete the hiring process in time for Dr. Crates’ replacement to spend some time with her at the D300 Central Office before she retires.

A press release from School District 300:

D300 leaders in talks with Sears

District 300 leaders are working closely with officials from Sears and the Village of Hoffman Estates to prevent the extension of the Sears Economic Development Area (EDA).

This is what the Sears parking lot in Crystal Lake looked like at 3 PM on Monday.

Sears Corporate Holdings is located within D300 boundaries, near the intersection of Route 72 and Route 59.

The Sears property, and the surrounding Prairie Stone development, are part of an EDA that state officials approved in the early 1990s, which has meant the loss of tax revenues for D300 over the past 20 years.

While the Sears EDA won’t expire until 2013, Hoffman Estates officials introduced state legislation this February which would extend the tax break another 15 years.

D300 was not initially informed of this legislation.

When the district became aware of it, D300 leaders became involved in the talks, which may be ongoing for months or years.

If state leaders decide to approve this legislation, D300 would lose tax revenues from 2013 to 2028.

D300 leaders have spoken with state legislators about the Sears EDA issue for the past several years, proactively advocating that they allow the EDA to expire as planned in 2013.

D300 officials are now actively meeting with Sears executives to discuss the impact of the EDA over the past 20 years, as well as the potential future impact on our students.

“At this point, Sears officials indicated they were grateful to learn the specifics about our situation, and they have assured the district that they will find a way to resolve the situation with D300 students in mind,”

said D300 Chief Financial Officer Dr. Cheryl Crates. “We certainly very much appreciate this ongoing and open dialogue.”

However, D300 leaders will continue to monitor this situation very closely and actively pursue a positive resolution, which may take some time to achieve.

In the meantime, some D300 parents and community members have independently begun their own meetings to explore their options.

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No word as to whether the phrase “corporate welfare” came up.

Fred and Delores Doederleinat at a Camp Algonquin Veterans Stand Down.

In 1989, I was standing next to State Rep. Delores Doederlein on the House floor the night that the Hoffman Estates Tax Increment Financing District for Sears was passed.

As the debate neared its end, she asked me if I though that her Dundee and Algonquin Township (and points west) constituents would want her to vote for the TIF bill.

Having represented the same area for eight years in the 19770′s, I told her I doubted it.

“That’s what I thought,” she said before voting against the bill.

The Daily Herald reports the benefit to Sears and its purchaser, the owners of K-Mart, got a $240 million subsidy.

That came out of the pockets of local taxpayers not in the TIF district. .

What a TIF district does is force everyone else located in tax districts covering the TIP district to subsidize the development of the enterprise or enterprises within the area.

District 300 map, blue for McHenry County, white for Kane County.

Think the Vulcan Lakes TIF district.

Everyone is McHenry County is subsidizing it, because all tax districts, including McHenry County, the McHenry County Conservation District and McHenry County College raise their taxes on us to make up for the loss along Route 14.

The biggest loser in the Sears TIF district is Carpentersville School District 300.

District 300′s Cheryl Crates discovered House Bill 3435, introduced by State Rep. Fred Crespo, who used to be on the Hoffman Estates Village Board.

The legislation would pull property tax dollars out of the pockets of taxpayers in Algonquin, Dundee, Hampshire and other townships into which District 300 and Elgin Community College snake for 15 more years.

The contemplated deal would allow the failing firm to cut its local workforce by one-third.

Hoffman Estates will also be on the hook for about $60 of the $180 million which it borrowed.

Needless to say, Hoffman Estates politicians would rather have District 300 taxpayers share the pain of its faulty projections 20 years ago.

Already Crates estimates that District 300 has lost $195 million in tax revenue.  District 300 received $30 million during that time period.

This is not the only local example of Sears wanting a public subsidy.

Spring Hill Mall was built by a subsidiary of Sears called Homart.

Instead of building in Downtown Elgin, the Hill Nursery property was selected.  It was at the intersection of two two-lane state highways.

Homart would not even pay for adding the needed extra lanes next to its property.

Oh, it fronted the money, but cut a deal with at least Carpentersville to give the firm the extra sales taxes for ten years to repay Homart for the extra lane.

And, did Sears pay for doubling the size of Route 31 from Elgin to the shopping center?

Former District 300 Board member was out of the country on his new job when I emailed him asking what he thought his accomplishments were.

Interestingly, he did not mention getting elected as a Home School Dad. In 2007, he was one of two McHenry County Home School Dad’s to win a school board seat.

The other was John O’Neill, now a candidate for state representative against veteran incumbent Democrat Jack Franks.

Ryan got more votes than any of the other eight candidates when he ran for the Carpentersville School Board. He defeated incumbent School Board President Mary Fioretti.

I asked him to reflect on his accomplishments. Here’s his reply:

John Ryan

“As you may recall, my campaign was based upon a pledge of both fiscal and ethical accountability and transparency.

“To that end, there are several accomplishments I have particularly strong feelings about.

“I am very pleased that I was able to disprove the image of me that was portrayed by my adversaries and earn the trust of my colleagues, administration and staff of D300.

“Through my conduct, I believe I was able to show all of them that just because someone aspires to a high standard, and as such will occasionally disagree with group think, that doesn’t necessarily mean you’re an enemy.

“Just the opposite – often times you’re the voice of reason and conscience.

“While it has often been referred to as ‘pay to play,’  I think ‘conflict of interest’ describes the policy more accurately.

“Besides the practical benefits of its implementation, such a policy sends a strong message in regard to the values a Board hold important.  I am proud that I didn’t give up on it after it was defeated the first time around, and of the collaborative approach used to get it ultimately approved.

“The degree of opposition by a key administrator both times around was initially stunning and proved quite revealing in regard to how entrenched and pervasive the ‘me first’ attitude of educrats really is.

“I am proud of the tasks accomplished under my watch as Chair of the Policy & Legislative as well as the Construction and Facilities Oversight Committees.

“In particular, strengthening D300′s policies on

• bullying, harassment and intimidation;
• authoring the cash reserve policy that saved taxpayers $2,000,000 by producing a 5-tier increase in D300′s credit ratings;
• developing specific protocols for construction change orders (a good topic for an in depth investigative article would be an audit of the referendum projects before these guides were in place);
• implementation of a FOIA policy which proactively posts the D300 ‘checkbook,’
• BOE meeting packets and FOIA responses online; as well as
• working with our local legislators to get a common sense ADA implementation bill signed into law (and subsequently being appointed to the C(aptial) D(evelopment) B(oard)’s ADA Task Force as a result).

“Lastly, although my role was minor,  I am pleased that my efforts as Vice Chair of the Finance Committee played a role in implementing the ‘Educational Program Review Technique’ (EPRT) process that was the foundation for eliminating D300′s $27M deficit in two years. (Credit must be given to Dr. (Cheryl) Crates for initiating the process).”

I next asked Ryan to reflect on his activity in the successful referendums passed by District 300:

“I strongly opposed the referendum – specifically the lack of fiscal discipline, integrity and transparency that necessitated it in the first place.

“Even more so, I stood opposed to the less than forthright tactics used by its proponents to secure its passage.  The same is true for the questionable interpretation of the Open Meetings Act and the post-referendum bonus paid to Dr. (Ken) Arndt by the preceding Board.

“I made one thing clear upon my inauguration though – what was done was done.  It passed and as such, I took it as my responsibility to ensure its promises were kept.”

And, Ryan has a final word:

“In closing, I guess the end of my resignation letter sums it up best.

“I will be eternally grateful to those who placed their confidence and trust in me; and I depart knowing I can honestly say ‘promises kept!’”

Yesterday, McHenry County Blog outlined printed the first half of David Ulm’s quest to produce Carpentersville District 300′s electricity from windmills.

Today we look at how he proposes to pay for it.

“We’re ready to move as soon as our Met (Meteorological) Tower results come in next November.

“Under the Illinois Clean Energy Community Foundation (ICEF), we received $30,000 to do this test” Ulm said.

“At the end of the 12 months, we will then apply to them for a grant to get a tower. They will only give grants based on a 12-month study.

“We are confident we would gain enough information in a 3-month period to move forward,” but Ulm told me that the rules of the ICEF require a 12-month test.

“The tower went up in Nov. It shows we could support a tower out there. For the first three months we are 87%.”

Nevertheless, Ulm takes a conservative approach.

“We are talking about a $6 million project and I’m not about to waste any taxpayers’ money.”

Ulm explained that the Foundation will provide about 10% of the project’s cost.

“The ICCF grant might amount to as much as 10%, $600,000,” he said.

Then, he pointed out what that would mean to District 300:

“The interest on a $6 million bond over ten years is not equal to $600,000.”

But the bonds would be structured so that the savings would pay them back, even if it took more than ten year.

So, maybe free money.

And, what if District 300 decides to build a wind farm somewhere?

“Since each windmill costs $5-6 million,” Ulm said, “with economies of scale, if we were to install 5 or 6 on one site, we’d probably be looking at $30 million.

“Assuming at 80% efficiency, we’d be looking at a 15 year payback.”

And how would that be financed?

“The new stimulus package is available online. There are quite a few grants available for school district construction and infrastructure improvements and there is a line in there that Dr. (Cheryl) Crates found that shows interest bond money.

“There are currently Clean Renewable Energy Bonds (CREB). Those have been around since 2006. $200 million for 2006, $400 million part of the farm bill in 2007. They threw it in under the stimulus bill of 2008–$400 million.

“First come, first served.

“We could get it interest free because the lender would get a tax credit equal to what the interest would be. It’s a ‘zero interest’ loan.

“There’s plenty of ways to go.”

But to get the electricity to schools in Carpentersville, Dundee, Algonquin, Lake in the Hills, etc., use of Commonwealth Edison’s transmission lines would be necessary and less restrictive state laws are needed. (See story yesterday.)

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David Olm, Carpentersville School District 300′s Energy Management Coordinator is seen on the upper right. Part of the Paw Paw wind farm is below, seen the day the tornado crossed I-39 shortly before we reached here. Chief Financial Officer Cheryl Crates is seen near the bottom of the article.

Yesterday, McHenry County Blog outlined printed the first half of David Ulm’s quest to produce Carpentersville District 300′s electricity from windmills.

Today we look at how he proposes to pay for it.

“We’re ready to move as soon as our Met (Meteorological) Tower results come in next November.

“Under the Illinois Clean Energy Community Foundation (ICEF), we received $30,000 to do this test” Ulm said.

“At the end of the 12 months, we will then apply to them for a grant to get a tower. They will only give grants based on a 12-month study.

“We are confident we would gain enough information in a 3-month period to move forward,” but Ulm told me that the rules of the ICEF require a 12-month test.

“The tower went up in Nov. It shows we could support a tower out there. For the first three months we are 87%.”

Nevertheless, Ulm takes a conservative approach.

“We are talking about a $6 million project and I’m not about to waste any taxpayers’ money.”

Ulm explained that the Foundation will provide about 10% of the project’s cost.

“The ICCF grant might amount to as much as 10%, $600,000,” he said.

Then, he pointed out what that would mean to District 300:

“The interest on a $6 million bond over ten years is not equal to $600,000.”

But the bonds would be structured so that the savings would pay them back, even if it took more than ten year.

So, maybe free money.

And, what if District 300 decides to build a wind farm somewhere?

“Since each windmill costs $5-6 million,” Ulm said, “with economies of scale, if we were to install 5 or 6 on one site, we’d probably be looking at $30 million.

“Assuming at 80% efficiency, we’d be looking at a 15 year payback.”

And how would that be financed?

“The new stimulus package is available online. There are quite a few grants available for school district construction and infrastructure improvements and there is a line in there that Dr. (Cheryl) Crates found that shows interest bond money.

“There are currently Clean Renewable Energy Bonds (CREB). Those have been around since 2006. $200 million for 2006, $400 million part of the farm bill in 2007. They threw it in under the stimulus bill of 2008–$400 million.

“First come, first served.

“We could get it interest free because the lender would get a tax credit equal to what the interest would be. It’s a ‘zero interest’ loan.

“There’s plenty of ways to go.”

But to get the electricity to schools in Carpentersville, Dundee, Algonquin, Lake in the Hills, etc., use of Commonwealth Edison’s transmission lines would be necessary and less restrictive state laws are needed. (See story yesterday.)

= = = = =
David Olm, Carpentersville School District 300′s Energy Management Coordinator is seen on the upper right. Part of the Paw Paw wind farm is below, seen the day the tornado crossed I-39 shortly before we reached here. Chief Financial Officer Cheryl Crates is seen near the bottom of the article.

I received the following email yesterday:

Just saw the attached in the public notices in the paper.  D300 will be discussing a 38.64% increase in property taxes to be levied for 2008.  Is this the lead-in for another referendum?

OUTRAGEOUS!

I can find no further information on the D300 website.

Of course the percentage increase is outrageous.

But you have to remember that most people in charge of tax districts want to make sure they can wring as much money out of us as possible.

No matter that the economy is tanking.

The services public officials think the services they provide–especially for special purpose districts like schools–must be the most important way to spend your money, otherwise why would the officials be spending their time trying to provide them.

OK, I’ll grant some play the role of taxpayer watchdog, but I can’t think of any local governmental entity where such folks are in control.

Having said that, the levy is meaningful in only a limited way. 

It represents the maximum that a tax district can collect.

In the best of circumstances.

In a really big building boom.

Fortunately, there is this little thing called the tax cap.

It is the real limit on spending.

Unless folks are silly enough to approve a tax rate referendum or bond issue, tax districts cannot collect more than they did last year, plus whatever the Consumer Price Index goes up to a maximum of 5%. They can also get all the new money that new construction or a dying Tax Increment Financing district gives up.

Now, school districts say that their costs go up faster than the CPI.

“Oh, well,” is about the only reaction I have to that.

Welcome to the real world where “wants” have to be distinguished from “needs.”

So, why not levy for what one expects to receive?

Why ask for a 38.64% increase when you know there is virtually no new construction and the inflationary increase in limited to 5%, even if inflation is higher than that?

That is the question I would ask next Monday night at 7:30 at Neubert Elementary School at 1100 Huntington Drive in Algonquin.

The notice says that those wanting to testify have to call Cheryl Crates ahead of time.

That, of course, is nonsense.

People don’t have to pre-register for a public hearing.

I wonder how much the irrelevant 7 lines of type cost the taxpayers.

Click to enlarge the public notice.

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District 300 school board member John Ryan has been kind enough to point out my mistake in not figuring out the notice said people “may” contact Cheryl Crates. I saw “must” for some reason.

I received the following email yesterday:

Just saw the attached in the public notices in the paper.  D300 will be discussing a 38.64% increase in property taxes to be levied for 2008.  Is this the lead-in for another referendum?

OUTRAGEOUS!

I can find no further information on the D300 website.

Of course the percentage increase is outrageous.

But you have to remember that most people in charge of tax districts want to make sure they can wring as much money out of us as possible.

No matter that the economy is tanking.

The services public officials think the services they provide–especially for special purpose districts like schools–must be the most important way to spend your money, otherwise why would the officials be spending their time trying to provide them.

OK, I’ll grant some play the role of taxpayer watchdog, but I can’t think of any local governmental entity where such folks are in control.

Having said that, the levy is meaningful in only a limited way. 

It represents the maximum that a tax district can collect.

In the best of circumstances.

In a really big building boom.

Fortunately, there is this little thing called the tax cap.

It is the real limit on spending.

Unless folks are silly enough to approve a tax rate referendum or bond issue, tax districts cannot collect more than they did last year, plus whatever the Consumer Price Index goes up to a maximum of 5%. They can also get all the new money that new construction or a dying Tax Increment Financing district gives up.

Now, school districts say that their costs go up faster than the CPI.

“Oh, well,” is about the only reaction I have to that.

Welcome to the real world where “wants” have to be distinguished from “needs.”

So, why not levy for what one expects to receive?

Why ask for a 38.64% increase when you know there is virtually no new construction and the inflationary increase in limited to 5%, even if inflation is higher than that?

That is the question I would ask next Monday night at 7:30 at Neubert Elementary School at 1100 Huntington Drive in Algonquin.

The notice says that those wanting to testify have to call Cheryl Crates ahead of time.

That, of course, is nonsense.

People don’t have to pre-register for a public hearing.

I wonder how much the irrelevant 7 lines of type cost the taxpayers.

Click to enlarge the public notice.

= = = = =
District 300 school board member John Ryan has been kind enough to point out my mistake in not figuring out the notice said people “may” contact Cheryl Crates. I saw “must” for some reason.

Back to money in this series of articles of what happened when legislators were being briefed on District 300 by administrators and board members John Ryan and Joe Stevens, the board’s president.

Superintendent Ken Arndt brought up the huge Sears Tax Increment Financing district.

“If it is renewed, it would cause us to go to a referendum a lot earlier,” Stevens said. “It would be disastrous.”

“Hoffman has no plans to extend that TIF,” State Rep. Ruth Munson (R-Elgin) reported.

“Are you getting some (information) from Sears that they want it renewed?” State Rep. Mike Tryon (R-Crystal Lake) asked.

“In the House, current rules are that every single tax district has to sign off on it,” Munson explained.

No one brought up how much state aid to education would drop once the Sears TIF property got onto the assessment rolls.

And, more on money.

Chief Financial Officer Cheryl Crates explained that the charter school transitional assistance was supposed to be funded at the 90% level, but that in the past it was only funded at 50% of 90%. Now, it’s going to be 30% of 90%.

Addressing the school aid formula conundrum, Tryon said,

”One of the problems I see is that school districts can’t agree on what the formula should be. The non-tax cap counties complain about the tax cap(ped counties having the) tax cap double whammy fix(ed).

“Your voters do what they’re supposed to do and go out and pass a referendum, but lose state aid,” Tryon continued.

St. Charles State Rep. Tim Schmitz, who is being challenged in the GOP primary by Carpentersville’s James Krenz, related a comment from a Downstate legislator:

“You all keep passing those referendums. That puts more money back into the state aid fund.”

Schmitz also explained that every time legislation passes giving this part of the state’s schools more money there is a push back.

I thought it was a particularly insightful comment.

The fast growth aid is a direct reaction, although I doubt its sponsors are aware of it, of a bill passed by State Representative Julie Curry from Decatur.(Isn’t that where Arndt was before he came to District 300?) Its effect was to shift state aid to education to empty seats in schools with declining enrollments at the expense of sending it to growing districts.

So, empty classrooms Downstate were getting money while full ones in Huntley, for example, were getting nothing in state aid.

I was one of the few to speak against that bill on the House floor. Of course, it could not have passed, if Chicago area legislators had voted their school’s self interest.

There then ensued a discussion about the chances for a capital projects bill.

“The good news about the failing economy is that the Democrats may use it (a capital bill) as a jobs (bill),” Munson observed.

When Crates asked,

Schmitz’ answer was,

He indicated that a capital bill will be passed that will at a minimum make sure the federal money is not lost. Since Schmitz is on Minority Leader Tom Cross’ leadership team, I would imagine that his analysis is correct.

“District 300 went through a very, very difficult time,” State Senator Pam Althoff (R-McHenry) said.
“You’ve done a remarkable job over the last five years.”

“Some people actually thought we were crazy,” Stevens said.

My last notes are about money.

Crates pointed out that the district was $27 million in debt in 2004.

“We’re now at plus $145,000.

“It’s not a whole lot,” she admitted.

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On the top of the article are photographs of District 300 school board member John Ryan and School Board President Joe Stevens. Immediately below are State Representatives Ruth Munson and Mike Tryon. Tryon can also be seen gesturing with his hands up just below. State Rep. Tim Schmitz is gesturing with his hands out down a bit to the left. Another head shot of Munson is below Schmitz and a head shot of Schmitz is seen to her right. Stevens appears again in the bottom left photo, while Chief Financial Officer Chery Crates is seen pointing to a screen talking money. Another shot of the audience is seen next to the photo credits. All photos can be enlarged by clicking on them.