City Council Workshop Meeting
Tuesday, February 21, 2006
The Mt. Vernon City Council held a Workshop Meeting, Public Hearing on Tuesday, February 21, 2006 at 5:30 p.m.
The purpose of this meeting was for discussion regarding the possible Mt. Vernon Township High School building project.
In the absence of Mayor Milton R. Sees, City Clerk Jackie Sharp called the Workshop Meeting to order with the first order of business being to appoint a Mayor Pro Tem for the meeting. Motion by Council Member John Howard to appoint Council Member David E. Keen as Mayor Pro Tem for this Workshop Meeting. Second by Council Member Ricky D. Heck. Yeas: Heck, Howard, Keen, and Walker.
Mayor Pro Tem Keen stated that the Mt. Vernon Township High School Board has voted to build a new high school. Mr. Keen stated that Mayor Milton R. Sees has stated that the City of Mt. Vernon might be interested and able to provide a revenue source for the local match required by the State. Mr. Keen stated that the purpose of this Workshop Meeting tonight is for public input on the possibility of the building project. Staff will be presenting to Council possible funding options. Mr. Keen stated that since this is a Workshop Meeting, no decision could be made tonight on this project. After staff’s presentation, the public will be allowed time to speak on the subject.
The meeting was turned over to City Finance Director Merle Hollmann for a presentation of possible options. Mr. Hollmann stated that staff has compiled several options to present. These options are not proposals, just information of possible options. Mr. Hollmann spoke along with a PowerPoint presentation for the audience to look at regarding the information.
Mr. Hollmann began by showing information regarding the Carbondale High School Project, how it was funded, the issues put on the ballot and the outcome.
Mr. Hollmann explained the present situation of the City of Mt. Vernon. The District may receive an Illinois Capital Development Board construction grant that could fund a high percentage of the costs of building a new high school campus. The District is required to fund a percentage of the costs locally. Long-term financing options have been investigated. Mr. Hollmann stated that the City has offered to explore funding options to assist the District in generating these revenues. Mr. Hollmann stated that the interest rates have remained low, but cannot be set until the date of the bond closings. Mr. Hollmann stated that all three options assume that the high school issues the Bond.
Under Option 1, the voters of the school district would pass a referendum authorizing the construction and bond issues. There would be a maximum 20-year repayment schedule. Mr. Hollmann explained the EAV and how the present outstanding debts would affect the issue.
Mr. Hollmann spoke regarding Option 2; this option involved the City leasing the school to the District with transfer at the end of the lease. The District would issue Lease Certificates to borrow the money for the lease payments. There are no referendum or petition period requirements. There would again be a 20-year repayment schedule.
Mr. Hollmann spoke regarding the third option. This option is the same as option 2 except the District would pledge to levy taxes if the revenue source does not generate enough revenue. This option is subject to referendum upon 7.5% of registered voters. This option has a 40-year repayment schedule and it is not subject to debt limit as long as no taxes are levied.
Mr. Hollmann spoke regarding option 4. The District would enter into an agreement with the City to lease the new school. The agreement would provide transfer of ownership at the end of the lease. The City would issue construction bonds using their Home Rule authority. It would need to be verified from the CDB that this option would qualify as the District’s share of the grant process. A referendum within the District on the construction of new school and funding would be a City requirement. This option would not be subject to any debt limit or repayment schedule as the City is responsible for the bond payments.
Mr. Hollmann gave property tax rates of various county schools for the 2004 taxes and also gave a comparison of sales tax rates in the area. Mr. Hollmann gave an estimated revenue for Mt. Vernon’s ¼% sales tax, estimated revenue from Mt. Vernon’s fuel tax, and repayment options.
Council Member David E. Keen asked how the Centralia school did their funding. Mr. Hollmann stated that about one year prior they issued a traditional bond issue. They received 75% CDB assistance and the rest was funded by property tax rates.
Discussion was held regarding the Hotel/Motel tax. Discussion was held regarding tax on fuels.
Council Member Howard asked about the difference in the insured and uninsured.
Council Member Keen asked about the gallons of diesel fuel. Mr. Hollmann stated
that approximately 1.4 million gallon of diesel a month is sold.
City Manager Roy L. Payne spoke regarding the meeting recently held with the CDB in Springfield. Mr. Payne stated that the local share is needed to be in place by June 30. There can be nothing done until the CDB Program. The schools on the 02 list are still waiting on funding and the Mt. Vernon Project would be on the 03 list. A site, a plan and the amount of space needed is needed. The district should not delay and this should be put on the November ballot. There is no list for the 03 year yet. Council Member Heck stated that there is no plan or costs for the project yet. Council Member Walker asked what the CDB is looking for. Mr. Payne stated that it is basically based on classroom need and space need.
Mr. Rick Kirkpatrick stated that there is a formula used by CDB to figure the amount of grant funds. The formula is also driven by the ability to pay. This amount would be calculated at the time of entitlement. The site option and build ability needs to be more specific.
Mayor Pro Tem David E. Keen asked if anyone from the audience would like to speak regarding this issue.
Mrs. Norma Fairchild spoke regarding the feasibility study and visibility study for this project. The School Board voted 6 to 1 to build a new structure. The referendum should not be the deciding factor. A new school could bring in economic development, more housing, Mt. Vernon voted 75% referendum a few years ago to build a new Primary Center and Mrs. Fairchild asked” If Not Now, When?”. Mrs. Fairchild stated that she believes that to say no to change and to criticize positive action through the news media incites further negative action.
Mr. Pat Garrett spoke saying that he was the one member that did not agree to build a new school in a new location. He stated that he actually believes that the school needs to take advantage of the grant, however he believes that the voters need to be asked to make the decision. District 201 encompasses 252 square miles of property and he feels the voters of the district need to be asked their opinions as they were in Carbondale and Centralia. The question that should be asked is Shall we Build or Renovate? The voters should also be asked about relocation of the school. Mr. Garrett stated that relocating the school would mean abandoning the buildings that are worth $40 million. Mr. Garrett stated that if the voters do vote to build new, he would then support the project.
Mrs. Michelle Darnell spoke as the mother of a student at the High School. Mrs. Darnell stated that she also has a child in the Primary Center School. Mrs. Darnell spoke regarding the positive experience the family has had with the moving of her younger child from Lincoln School to the new Primary Center and she believes that a new high school would offer the students there a positive experience also. Mrs. Darnell stated that the learning atmosphere is not good at the old schools. She feels that the old high school is an embarrassment to Mt. Vernon and to her. She stated that she has shown visitors where her children attend school and they can’t believe the old high school. Mrs. Darnell stated that it is important to the children and the community to have a new school and better learning experiences.
Mr. Horton Petties spoke stating that we do need a new school and preferably a secure campus for the safety of the students. Mr. Petties stated that the old buildings have to be costing a lot of money in upkeep and maintenance.
Mr. Clyde Shockley spoke in support of Mr. Garrett. Mr. Shockley stated that there is some democracy left in our society. Mr. Shockley spoke about the jail and the expenses that were incurred in that project. He stated that he is afraid that if we build a new $50 million high school we won’t be able to pay for it. Mr. Shockley stated that there are no figures available on the costs of this project yet. Mr. Shockley stated that he believes that the public should be allowed to vote on the issue.
Mr. Greg Backes spoke saying that the Board has no problem with a November referendum on the ballot. His concern is if the funds come and the vote has not been done, the school will be put down further on the list. Mr. Backes stated that the Board trusts the voters to make the right decision.
Mayor Pro Tem David E. Keen stated that the meeting had to be adjourned at this time to begin the Regular City Council Meeting. Mr. Keen thanked everyone for coming out and offering their comments. Motion by Council Member Ricky D. Heck to adjourn this Workshop Meeting. Second by Council Member John Howard. Yeas: Heck, Howard, Keen and Walker.