McHenry County Blog

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.

Part 2 of the Chicago Tribune said about Lakewood’s alternative revenue bond purchase of what is not called RedTail Golf Club:

Lakewood is featured as one of the villages

“where bets backfired on taxpayers…where taxpayers should have been protected form tax increases” but weren’t…where “taxpayers instead awoke to hikes they never approved, ones that even exceeded what the law normally allows.”

Lakewood did not make the front page of the story, but the financing of the golf course it bought is referenced on page 10.

The Red Tail Golf Course, financed by alternative revenue bonds not approved by the taxpayers, did not come with a permanent clubhouse. .

“That’s how taxpayers is upscale Lakewood in McHenry County ended up paying for a golf course they were told wouldn’t cost a them a dime.”

Although I was not quoted in the story, I have replayed the interchange between the three residents and the then-village board several times to the current village board members.

There were three of us there.

Former Village Trustee Roger Reid said that he didn’t think it was the role of government to be in the golf club business.

Attorney Jim Bishop asked if board members knew that golf courses all over McHenry County were having financial problems.

I asked, “Is this ever going to cost me a dime?”

I was assured that it would not.

The breaching of that assurance undoubtedly explains my defense of the Property Tax Cap, which prohibited the issuance of bonds without a referendum.  (I lost the fight to keep that prohibition for park districts and you can see the most recent “need” determined by the Crystal Lake Park District at West Beach.)

A sports management company made the projections that the golf course in Lakewood would pay for itself.   The Tribune article explains,

“Some residents remained skeptical, including [former Village Trustee] Roger Reid, who recalls going with a small group to the Village Board meeting to ask for assurance that taxes would not go up because of the deal.

“‘We were assured–up and down and sideways–that, “This is not going to go on you tax bill,”‘ Reid recalled.

“Then residents were hit with the catch in the law:  If projections are off, taxes can go up.

“Turns out, the town’s projections were so far off that the golf course couldn’t even pay a penny toward its loan payment for six years.  And, by the time the bond was paid off two years ago, records show, 53 percent of it was paid off through higher taxes, not the projected golf course profit.”

The Tribune article points out that no state agency verifies financial projections that will be made by firms like Power Wellness, the health club firm McHenry County College hired to justify putting taxpayers on the hook for paying back tens of millions of dollars in projected borrowed money.

Although the Illinois Attorney General has authority to “advocate for taxpayers misled by the deals…the issue has never been raised there.”

No mention is made in this Northwest Herald article of the financial fiasco that occurred in Lakewood because of the use of alternative revenue bonds.  And there is no way to finance the MCC health club without going to referendum without using alternative revenue bonds.

= = = = =

If you into irony, the day after the Tribune article about the abuses of alternative revenue bonds ran, the Northwest Herald ran diminishing the dangers involved in using alternative revenue bonds.

On January 6, 2013, right on the top of the Sunday Chicago Tribune, there was an expose that should send warning flares up about the alternative revenue bonds that the majority of the McHenry County College Board seem set to issue.

The January 6, 2013, article by Joe Mahr and Joseph Ryan about small suburbs like Lakewood having made a decision that backfired on property taxpayers.

Alternative revenue bonds are ones ostensibly to be repaid by identified sources of revenue, for example in MCC’s case, an increase in student fees of $8 per hour, increased tuition from more enrollment and health club fees among other sources…

But, just in case, don’t you know, to be paid by property taxes if the projected revenues from the other non-real estate sources don’t bring in enough money.

The Tribune doesn’t look at junior colleges in its article. As the headline implies, it looks at “Small suburbs [that have] exploit[ed} tax loophole."

The sub-headline on the front page reads,

"Even in places where residents might expect tighter oversight, Illinois borrowing rules let towns sidestep voters, make decisions that can backfire on taxpayers"

McHenry County College taxpayers managed

• not to step in the Briar Patch when the Board wanted to borrow, without asking voters at the ballot box, $25 million to finance a minor league baseball stadium,
• but are facing a similar entangling long-term obligation in current Board members' desired to borrow, without voter approval, $45 million to build a health club and new classrooms (even while only using the classrooms 45% of the time).

Lakewood’s Red Tail Golf Course, purchased with revenue bonds which could not be repaid without forcing real estate taxes up.

The story describes alternative revenue bonds as a

“device that lets towns borrow in a way that sidesteps voters and property tax caps.

• The catch for towns:  They must be able to foresee paying off the loans without raising property taxes.
• The catch for residents:  If towns’ projections are wrong, taxes are automatically hiked to make the loan payments.

= = = = =

More tomorrow.

Lakewood Village President Erin Smith sent out the following letter to her constituents in the fall village newsletter.

FROM THE PRESIDENT

As we bid a fond farewell to summer, it’s appropriate to review what was accomplished during the past three (3) months and what we can look forward to in the coming months.

As is typical in the Midwest, summer was filled with construction projects and other work on infrastructure.

The new Lakewood Bike Path

Notable among these were

• the construction of bicycle lanes along Huntley Road, from West Beach to Chicago Avenue,
• the repaving of RedTail Drive and Loch Glen Drive,
• the construction of our new water tower on Turnberry Trail and
• work on the East Side Storm Sewer.

Huntley Road Bike Path

This project has been a long standing priority of our Comprehensive Plan and Parks and Recreation Committee. Given its cost, we were able to proceed with the project because staff secured a federal grant that paid for eighty percent (80%) of the construction. It has been a difficult and lengthy process for the residents impacted by the construction, and we give our sincere thanks and appreciation for their patience throughout this process.

RedTail and Loch Glen Drive

Both residents and golfers are pleased to experience the repaving of RedTail Drive. This portion of our roadway program was paid for with a $200,000 grant secured for the Village of Lakewood by State Representative Michael Tryon, and we thank him for his efforts on our behalf. With revenues from our General Fund, we were also able to repave Loch Glen Drive and make several roadway repairs throughout the community. We receive a lot of complaints about the gravel that is “kicked up” at busy intersections, and it is a maintenance problem for our residents and Public Works crew. Therefore, we took advantage of this year’s roadway program to install cobblestone returns at the intersection of RedTail Drive/Loch Glen Drive/Bardwell Lane. Please take a look and let us know what you think as we contemplate whether to continue this program at other key intersections.

Water Tower

We have also nearly completed the construction of our new water tower on Turnberry Trail, and it is expected to go online shortly, at which time the old water tower will be removed. In terms of branding our community, a strategic decision was made by the Board of Trustees to position the writing so that it is visible as you approach the Village of Lakewood from the north and south. The lettering is most visible from Turnberry and RedTail golf courses, where visitors will see that they are in the Village of Lakewood.

East Side Storm Water

In our ongoing efforts to address the issue of storm water on the East Side of the Village, our Public Works Department recently completed a project to clean and televise one-half of the Broadway storm sewer outfall pipe. This project was completed at a cost of approximately $17,150 and verified our concern that substantial repair and replacement of the storm sewer will be needed. We will include revenues in the budget for the next fiscal year that will allow us to complete the second half of the cleaning/televising project in order to assess the full extent of the work needed and begin to develop a plan for funding the repairs.

Other Summer News

In addition to our infrastructure improvements, we had another safe recreational season on Crystal Lake, and we extend our thanks to the Police Department for its consistently strong enforcement in this area. I am also very pleased to report that RedTail Golf Course has had a strong year to date. Revenues are greater than last year, and the volunteer program that was instituted for starters and rangers has helped to decrease expenditures. The golf season is not yet over, so take advantage of some great fall rates to help insure that RedTail Golf Course has a great year!

Economic Development Update

Looking forward, we continue to place economic development as our number one priority. Toward this end, we have hired Dobbe Marketing & PR to help our community develop a strong and consistent message to attract businesses. A Focus Group was held with local businesses and residents in July, and the results of that meeting will be shared with the Board of Trustees at the meeting on September 13. Primary topics will include:

How to best take advantage of the contacts of our residents to attract the types of businesses identified as priorities. You are our best resource!

How to partner with the developer of Lakewood Commons to fill the center, including the remaining vacant parcel.

Whether the current site of Village Hall can or should have an alternative use, such as a restaurant.

Whether it is viable to develop a town center and, if so, where?

I encourage you to participate in these discussions and provide your feedback to any of our elected officials.

Also in July, the Board approved a 6-month extension of the preliminary agreement with the developer of the sports complex. Financing has not yet been secured, but some indication of progress was presented.

Some of those attending the July SportsPlex board meeting at which Village President Erin Smith broke a 3-3 tie vote in favor of granting six more months for developers (seen on the right side of the audience in the front row) to obtain financing.

Our Board was split on the decision to extend the agreement.

I voted to extend the agreement because other surrounding communities have automatically extended existing agreements to support businesses in this difficult economy and I believe we need to show an equal level of support.

Input from our Focus Group, which reinforced that the sports complex is consistent with our vision, also influenced my vote.

Through the first three months of our current fiscal year, I am also pleased to report that our sales tax revenues have increased by nearly $6,400 over this same time period last year. This increase is most directly attributable to the four (4) new businesses that were annexed last summer, and we believe that we will continue to experience increased growth in revenues from these businesses.

In fact, The Gardens of Woodstock recently become a member of the McHenry County Convention and Visitors Bureau, and motor coach tours are already making regular stops for lunch and shopping. As we seek new businesses, our most effective testimonials are our existing businesses, and it benefits all of us to support them.

New Entryway Signs

In the upcoming months, you will also see three (3) new entryway signs installed as one of the recommendations from the Parks and Recreation Committee, which is interested in establishing a Garden Club to help landscape these and other public areas in the community.

Could Lakewood residents save money by having the village go shopping for electricity?

We are also exploring the possibility of working with neighboring communities to bid for the purchase of electricity for our residents. Harvard and Fox River Grove recently completed this process and had great success with overall savings for their residents of between ten (10) to fifteen (15) percent on the electric bills.

Such a process requires the passage of a referendum by our residents, and we have set a tentative goal of placing such a referendum on the March 2012 ballot. Any resident who did not want to participate in the program could simply “opt out” and continue to purchase their electricity from Commonwealth Edison. Again, we would be interested in hearing your thoughts about the program. Our goal would simply be to save our residents money in these difficult economic times.

In addition to soliciting your input on a number of issues, I am always available for a Pizza with the President and welcome your invitation.

Sincerely,

Erin

My fellow residents:

Sorry I have been away so long. Tom Hanks asked me to go for a plane ride and we all know what happened next. Can you say “Wilson”? Since I have not spoken to you for the last 3 board meetings (the gag order has been lifted) (just kidding) I hope to give you enough information to keep you informed but not bore you.

The first meeting in July was more on discussions than actions. The 1st Lakewood Market festival seemed to be going in the right direction with the committee asking for a small amount of money (up to $3,000) to use for “necessities”. We as a board encouraged them to spend the money wisely and hopefully enough businesses will attend so we can lower that amount significantly. More to come on the 1st Lakewood Market Festival later.

Ken Santowski prays for a new Redtail Clubhouse. (Just kidding. There is a companion photo of Cal Sklnner praying that the Village Board will not use property tax dollars as a back-up for financing as it did when the golf course was purchased.)

We also discussed the covenants regarding Redtail and the likeliness of building a clubhouse there anytime soon.

As everyone knows I want to grab a shovel, some bricks and a 2×4 and start building it now.

The consensus of the board seemed otherwise. So I went to the tribunal council and asked for immunity.

All I got was some potential remodeling of the current structures over the off season and wait for a clubhouse until a “later date in time” when the economy was better.

I tried to remind them that the water tower, bike path and road construction program all were built with considerable cost savings because construction people were hungry. (In fact I recently gave a carpenter a sandwich)

Why not see what we can get for our money?

Just once I would like to spend some money on something that will “actually” give us a return on our investment.

Backyard storm damage in a back yard on gate 22 between Sunset and Huntley Road.

We had update reports on the storm damage and power outage problems.

While most people wanted to know why it took so long; many understood that this was an enormous undertaking that ComED has never seen before.

Makes us thankful for all the times we do have electricity.

We then voted to go into executive session to talk about ………… almost got me, eh?

Ken Santowski

Continued tomorrow.

Ken Santowski

A last day of May letter from Lakewood Village Trustee Ken Santowski:

Fellow residents:

Well here it is the last day of May and finally we are seeing some changes.

Yes, I am talking about the weather, also.

Earlier this month the newest members of the village board were sworn in. Congratulations to Gary Sexson and Jeff Iden for their efforts to be more involved in their community. Hopefully they can sustain their efforts throughout their respective terms in office. Based on their experiences as small businessmen I believe they will.

The continued dismal economy has spurned a great deal of competition.

Our 2011 road program was put out for bid. The engineers estimate thought the cost of our program for this year was going to be about $421,549.75.

Well when the bids came in even the highest bid was UNDER $400,000.00. In fact the low build from (a responsible and established company) Geske & Sons came in at $332,866.36.

So at least we had some good financial news this time around. I am certainly glad that we are getting a better value for our money at this time, but also would rather see the economy take a definite turn towards the positive side since that would help so many more people.

We have had discussions regarding the Redtail clubhouse and possible land shedding some more parcels of land from the course. Nothing has actually been put forth at this time, but looking forward, it is the primary goal of the board to protect the golf course and its impact to residents.

Since we seem to be getting a better value for our money the time seems ultra perfect to build some type of clubhouse. Discussions will follow soon.

For those who have not noticed, the new water tower has been topped off and is awaiting its paint job. Once that is complete and all the mechanicals installed and tested then we can fill it with water. I am not sure how to fill a new water tower. Perhaps we as residents can do an old fashioned bucket brigade and fill it up one bucket at a time. Just how many buckets of water are in 500,000 gallons? More importantly, do you have to rinse it out prior to its first use just like a Tupperware bowl? Or do you just hook a siphon hose from the old tower to the new one?

Many public and private discussions have ensued since our disagreement with Crystal Lake over the whole fire department issue. Many things have been said in the newspapers and now just like Paul Harvey we need to tell you “the rest of the story”.

But I can’t; sorry. While this matter is still a legal issue neither I nor the board can talk about it in the public spectrum. Hopefully this matter can be resolved quickly so that both communities can move forward and begin to heal. But only time will tell.

I look forward to this summer and all of the exciting things that can and will happen here in Lakewood. There have been minor rumblings about the sports complex and that particular intersection. Let’s hope something positive happens out there.

Other than some minor housekeeping items May was a rather slow month in regards to political turmoil; which was good. I think the new board will hit the ground running here soon and make things happen.

All my best,

Kenneth M Santowski

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.

Ken Santowski

Lakewood’s Village Trustee is the only municipal official I know that send regular reports of his take on village meetings to his constituents.  Here is his latest missive:

Greetings from another planet: January 31, 2011

Each year I resolve to become a better person. This was the year that I was going to be on top of things. I would return phone calls; no matter what time. I would return emails; no matter what year it was. And of course I would update you in a timely manner.

Well, here it is January 31st and I am sending you my first email of the year.

Maybe I can start on my resolutions for 2012.

The first board meeting of the year was held at Turnberry since Redtail experienced some severe plumbing problems and will be closed for awhile. (Since then things have been repaired but the clubhouse will remain closed until the season approaches).

The only real item on the agenda was another agreement to continue the expenditures for the Huntley Road Bike Lane. As you know I am all for bike paths, but not at this point in the village’s financial picture.

I once again made an attempt to hold off on spending more money for this project especially in light of the fact that there have been numerous articles in the newspapers lately as to the financial future of Redtail golf course.

Even though the money used from the bike path could not be used to run Redtail, it could be used to improve Redtail. Yes, the 80% payment of the project from the Federal government is great, but the $160+K the village has to contribute does not make sense to me in this financial climate.

I strongly believe that in the future there will be a climate in which to spend this amount of money but not when it does NOTHING to bring in revenue into Lakewood. I want bike paths, especially federally funded ones. But just because I can buy a Rolls Royce for $50,000.00 doesn’t mean I am going to buy it: no matter how great a deal it is.

The 2nd meeting for the month of January had nothing major to discuss.

As most of you can see the water tower replacement has begun in earnest with the structure starting to take shape. The new tower will be bigger and better, helping to make sure we have adequate water flow and fire protection for many years to come.

Layout of the McHenry County SportsPlex presented to village board members. Click to enlarge.

Both board meetings touched slightly on the all but dead Sportsplex issue. Without the sale of the non-taxable and taxable bonds I am afraid that the project will not get off the ground.

That is too bad because even though it appeared to have some major flaws, the concept itself seemed genuine and imaginative. Let’s hope that the Sportsplex team can find the money in their own pockets to resurrect this project.

We also talked about the future of the budget meetings, our new fire department, the upcoming election and cable/internet service.

The last two meetings have been spirited and lively, yet concise and entertaining. Hopefully this will be the same type of mood when the budgets are presented by the various departments throughout the village.

Hopefully I can get my act together sometime in February. I apologize to those who I did not return phone calls or emails to in 2010. Give me another chance to do the right thing. As our former President Bush said “Fool me once and shame on me, then fool me again and shame on someone” or something like that. Let’s start anew in 2011 and work together to make this a great year. I know I cannot do it alone.

Kenneth M Santowski

Here’s the latest missive delivered in the mail to Lakewood residents:

Erin Smith

From the President

On behalf of the Board of Trustees, I want to wish you and your families a Happy New Year.

As a community, we face many of the same challenges confronting individual families and neighboring communities. The economy continues to be sluggish, especially as it relates to the downturn in the residential building sector. Delays in payments from the state of Illinois also present financial challenges. However, 2010 was a historic year for the Village of Lakewood, and we have many reasons to be thankful.

AAA Bond Rating – In May, the Village of Lakewood received its first bond rating from Standard & Poor’s. It was a AAA rating – the highest possible and remarkable for a community of our size with limited commercial development. It is a testament to the long standing conservative financial philosophy of our Board of Trustees and the implementation of that philosophy by our staff.

Annexation – In June, the Village of Lakewood annexed 565 acres of new territory. This action served two primary purposes – to secure a valuable intersection at Illinois Route 47 and 176 for future commercial development and to bring four (4) existing businesses into our community. This action was the culmination of nearly ten (10) years of strategic planning.

Sports Complex – In July, the Board of Trustees unanimously approved a detailed Preliminary Plan for a 165 acre sports complex at the intersection of Illinois Route 47 and 176. This approval was predicated upon the developer securing financing and purchasing the land, which has not yet occurred. The Board of Trustees has always understood the uncertainty inherent in a large, private equity venture and has worked diligently and successfully throughout the process to insulate our community from any financial risk.

The Village Board remains strongly committed to commercial development along the Route 47 corridor and we are hopeful that the Sports Complex will be an integral part of our plan. We are also confident that other suitable projects will come forward as the intersection of two major State highways makes this one of the most desirable development locations in the County. Important technical information (i.e. wetland delineations, soil conditions, traffic counts, etc.) that was gained as we prepared for the Sports Complex will be invaluable as we engage in discussions with other developers who have expressed an interest in this area.

Fire Protection Services – Four (4) years ago, the Village of Lakewood made a strategic decision to create its own Fire Department and outsource the provision of these services to a private firm, American Emergency Services (AES), which has served our residents professionally and skillfully during this time. We owe AES a debt of gratitude for all of their efforts.

Lakewood Fire Station

As a part of our ongoing review of all of our services, however, the Board of Trustees has unanimously determined that these services can best be provided by the Woodstock Fire Rescue District (WFRD).

As a result of its greater size, the WFRD will be able to increase the level of service to Lakewood residents while significantly reducing our annual cost for fire service. They will provide an automatic back fill of our fire station on Haligus Road when the first unit responds.

They plan to increase the number of personnel at the Haligus Road station from three (3) to four (4) firefighters. Additionally, the capacity for water storage in tanker trucks that is required in areas without hydrants, such as the east side, will increase substantially.

We believe that this consolidation or sharing of services will become commonplace in the future as all units of local government seek ways in which to provide services to their constituents in the most cost effective manner possible.

New Water Tower – In May, we were able to take advantage of financing available through the American Recovery and Reinvestment Act to refinance our wastewater treatment bonds and finance the construction of a new water tower for the west side.

This served two purposes -

• the increase in Lakewood Utilities fees that would have been passed on to existing residents on the west side as a result of the downturn in the housing market was avoided, and
• a necessary capital improvement was financed at a very low interest rate.

The new water tower was a necessary investment and was listed as a “critical need” in an independent engineering study, as our current water storage capacity is not compliant with recommended guidelines for fire flows.

Construction of the new water tower, located near Turnberry Country Club, has already begun and will serve all west side residents.

Lakewood Quilted Barn Program – Recently, you may have noticed a beautiful piece of art displayed on the side of the Village barn on Lakewood Road. This quilt was designed and painted by Heather Burton, Trustee Burton’s daughter, and is on display as part of the McHenry County’s Historical Society’s Quilted Barn Program. The Quilted Barn Program is well-publicized by the Historical Society and should bring visitors to Lakewood that may otherwise not have known about our beautiful town.

RedTail Golf Club – There have been a number of articles in the local press about RedTail Golf Club, and I want to take this opportunity to clarify its status.

Perhaps most importantly, I am confident that RedTail Golf Club will open as scheduled (as soon as the weather permits) and operate for the full season.

As with all golf courses, the sustained downturn in the economy has presented tremendous fiscal challenges.

The Red Tail Golf Course Clubhouse

While the number of rounds played at RedTail Golf Club has remained consistent at between 25,000 and 30,000 annually; the revenue per round has decreased as the price per round has been discounted to remain competitive.

The lack of a substantial clubhouse also limits the amount of revenue generated by food and beverage sales.

As with all of our operating enterprises, the elected officials and staff monitor financial trends very carefully.

RedTail Golf Club will finish this fiscal year with a small reserve, and the internal analysis was a proactive “call to action” to begin a strategic analysis about how to insure that RedTail Golf Club remains a viable entity that contributes to the overall quality of life in our community.

Pizza with the President – It’s time for my quarterly neighborhood meeting, but I do not yet have a meeting place. I would like to try to meet in a neighborhood I have not yet visited, such as Brighton Oaks or Loch Glen. I truly appreciate the opportunity to meet with neighbors in an informal environment. The meetings to date have provided a wonderful opportunity to discuss Village-wide and neighborhood-specific issues. Lou Malnati’s provides the pizza for the evening. Please contact me if you are interested in hosting an event.

I strongly encourage anyone to contact me, any of the Trustees, or the Village Manager with questions or concerns regarding any of the projects highlighted in the newsletter or that you might read about elsewhere.

Sincerely,

Erin (Smith)

6 AM New Year’s Day the Woodstock Fire Protection District took over the manning of the Lakewood Fire Department.

Although the phrase “economies of scale” was not mentioned, there was talk of saving the money needed to pay a fire chief under the new arrangement.

Only time will tell whether trading the private enterprise model with non-union and on-call firemen for full-timers who are union members with attendant pension costs will be cost-beneficial.

But since re-organization of Lakewood village services has been put on the village board table as a money-saving idea, let me pass on a suggestion made by Lakewood resident Marty Walter.

Club house at the Red Tail Golf Course.

There is no doubt that the Lakewood village golf course, Red Tail Golf Club, is in financial trouble.

Village President Erin Smith suggested that the cause was the lack of a good club house.

With that background, Walter suggests that Lakewood cut a deal with the new owners of the Turnberry Country Club to use its club house.

He suggests that managing two 36-hole golf courses that are close together can’t be that much harder than managing one 18-hole golf course.

If one can save the money by not having a fire chief in both Woodstock and Lakewood, maybe there are management savings in the golf course business as well.

Could a route be found so that people could drive their golf carts from one course to the other if they wanted to play 36 holes in one day?

I don’t know the neighborhoods, but it would seem that might be possible. After all, people drive golf carts on the roads in Sun City. State law allows a municipality to make that possible.

Turnberry Country Club House

Could a deal be cut on club house revenue? Maybe it could be based on rounds played on the respective courses.

“What use would be made of the current Red Tail club house (trailers cobbled together)?” I asked.

Walter suggested that some use could be found, maybe as a training facility. Maybe the current trailers could be removed and the heating and cooling costs saved.

The details of any such joint operating agreement would have to be worked out by those knowing more about the business than Walter or I.

But, the possibility that taxpayers throughout Lakewood might get stuck with future taxes beyond next year’s to pay off the bonds that purchased the golf course just before the real estate Tax Cap would have made it impossible without referendum approval is a non-starter with me.

Property covenants in Turnberry say that the country club must remain a membership-based club. I have been told that when one buys a round of golf for $50 a membership is included.

I shall certainly be asking all of the candidates for village board what they plan for Red Tail’s future.

Taxing me and my neighbors to pay for anything in this enterprise that was sold as and should be self-supporting won’t be part of the answer for those I support for election in my part of town.

I suggested at the last village board meeting that the land be sold to a developer. Smith said that neighbors wouldn’t like to have townhouses where they thought would be a golf course.

Of course, I did not suggest what type of housing might be built. That would be up to the village board.

I do know that there is no added benefit to me and my neighbors from the village’s ownership of a golf course. Our property values are tied to our proximity to Crystal Lake (the lake, not the city).

If those who do benefit directly from it want to buy the golf course, more power to them.

Or they could join others on what might be called the “Exit Strategy Committee” to find a way to keep the golf course there, but to make it self-supporting.

Who knows, maybe Turnberry Country Club might even let the village board hold meetings at its club house. I can’t image it would be busy enough not to have an empty room for the once-a-month Tuesday night meetings.