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MINUTES OF THE SPECIAL MEETING OF THE BOARD OF EDUCATION_ OAK LAWN

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MINUTES OF THE SPECIAL MEETING OF THE BOARD OF EDUCATION_ OAK LAWN Powered By Docstoc
					                          MINUTES OF THE SPECIAL MEETING OF THE BOARD OF
                          EDUCATION, OAK LAWN COMMUNITY HIGH SCHOOL,
                          DISTRICT 229, COOK COUNTY, ILLINOIS, HELD ON TUESDAY,
                          DECEMBER 9, 2003

                   The Board of Education of Oak Lawn Community High School, District No. 229, Cook
                   County, Illinois, met in special session at Oak Lawn Community High School, 9400
                   Southwest Highway, Oak Lawn, Illinois, on Tuesday, December 9, 2003. President
                   Cerceo called the meeting to order at 7:20 p.m.

                   PRESENT:      Mary Cerceo, Joseph Amado, Linda Flanagan, John Hickey,
                                 Paul Mancillas, Michelle Moses, Stephen Trotto

                   OTHERS PRESENT: Dr. James Briscoe, Superintendent, and Rick Hendricks, Asst.
                   Superintendent for Business


Roll Call          Mary Cerceo, Joseph Amado, Linda Flanagan, John Hickey, Paul Mancillas, Michelle
                   Moses and Stephen Trotto were present.

Review Financial   Mr. Rob Grossi, from Crystal Financial Consultants, Inc., reviewed financial options
Options for        for funding a new high school facility. He gave a summary of the estimated impact of a
Funding New High   $66 Million Bond Referendum to the Board. The Estimated Rate Increase would be
School Facility    0.640, which would amount to $206.77 a year, based on the average of the market value
                   of five homes that OLCHS District 229 owned North of the school.

                   Mr. Grossi reviewed the Comparison of Tax Rates. He pointed out the total tax rates of
                   all 144 school districts in Cook County. The data represents the tax rates that were
                   extending from the December 2001 tax levy collected in the spring and fall of 2002.
                   The data reflects that of the 144 school districts in Cook County, Oak Lawn
                   Community High School District 229 had the 28th lowest tax rate. Nearly all of the
                   Districts with lower rates were in the North and Northwest Suburbs.

                   Mr. Grossi reviewed the Proposed Financing Plan with the Board of Education. Oak
                   Lawn Community High School District 229 currently has approximately $45 million
                   (principal) in available borrowing authority. The District has two viable options in
                   which to generate the $66 million in bond proceeds within this debt limit:

                   Option 1 – Alternate Bond Option
                      1. Pass a referendum approving the issuance of $66 million in bonds
                      2. After passage, issue $45 million of referendum bonds and $21 million of
                          alternate bonds. Alternate bonds are bonds that pledge an “alternate” revenue
                          source in addition to real estate taxes to pay off the bonds. In this instance, we
                          will pledge the future issuance of the remaining $21 million in referendum
                          bonds. Alternate bonds do not count against the District’s debt limit.
                      3. Ensure that $14 million in bond principal will retire by 12/1/08. The $7 million
                          will retire from existing bond issues during this time period.
                      4. Once new bonding authority is generated, issue $21 million in referendum
                     bonds to pay off the alternate bonds.

              Option 2 – Premium Bonds
                 1. Pass a referendum approving the issuance of $50-$60 million in bonds to pay
                     for the new facility.
                 2. Issue $45 million in premium bonds, with 9% coupon rates, which will generate
                     approximately $55-$60 million in proceeds.
                 3. Issue non-referendum bonds, or additional premium bonds once debt is retired
                     to cover the shortfall.

              No matter what method is ultimately used to generate the necessary funds within the
              borrowing limits imposed on the District, the impact to the taxpayers will be relatively
              the same.

              A special meeting is scheduled for Tuesday, December 16, 2003 at 7:00 p.m. for the
              purpose of approving the resolution to issue $66 million in bonds.

Adjournment   There being no further business to come before the Board at this time, it was moved by
              Ms. Moses and seconded by Mr. Hickey to adjourn this meeting. Upon roll call the
              vote was as follows:

0304-132      AYES: Moses, Hickey, Amado, Flanagan, Mancillas, Trotto, Cerceo
              NAYS: None. Vice President declared the motion carried and the meeting adjourned
              at 8:40 p.m.

				
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