There are four categories which the State of Illinois uses to rate school districts financially. The best rating is Recognition. In sub sequential order ratings are Review, Warning then Watch.

According to Fieldcrest auditor Rick Phillips, this year Fieldcrest has moved from Warning to Review.

Fieldcrest’s fund balances’ improvements in 2006, also improved its score. The district went from 18 days of cash on hand, to 60 days cash on hand. This translates: if all revenue coming into the district were frozen, it could still operate for 60 days.

“The reason we were able to do that is because the board made all of those cuts two years ago… $1.8 million in cuts,” said Vincent. “So we added about $800,000 to our fund balances.”

Fieldcrest’s auditor Rick Phillips stated at the Oct. 19 board meeting that he would be comfortable if the district could get to 90 days cash on hand.

“If we’re lucky and we have another year like we did last year, we could hit 90 days next year,” said Vincent.

Once a district hits a good cash reserve, then it’s up to the board to take any extra income and either invest the money to improve the school system or abate the tax rate, said Vincent.

“The board is to the point where it is not going to make any more cuts. They see our fund balances improving but they know our costs are going to go up. So, we have to have revenue in order to cover those increased costs,” said Vincent. “One way or the other we’re going to need to do that.”

One way that the district will attempt to get that increased revenue by proposing a tax rate increase of 65 cents per $100 EAV (equalized assessed valuation) in its Education Fund during the Nov. 7 general election.

A passage of this referendum would ultimately result in a 2 cent decrease in the district’s overall tax rate because of 2006 reductions including a 37 cent reduction in municipal retirement and social security fund balances and a 30 cent reduction in Working Cash Bond retirements.

Fieldcrest’s current total tax rate is $5.32 and the current tax rate in the Education Fund is $2.975. The Education Fund tax rate has been effective since the inception of the Fieldcrest School District .

There has been buzz in the Fieldcrest school district with regard to the upcoming referendum.

Voters have the chances to approve of not approve a referendum that would give District 6 the option to levy up to 65 cents more than the current tax rate in the Education Fund.

The District borrowed $750,000 three years ago and taxpayers paid 30 cents on their tax rate to pay for the loan. Were the referendum to fail in the upcoming election, District 6 has pledged to issue $1.5 million in Working Cash Bonds which would incur $325,000 in interest that would be paid for by adding 65 cents to the tax bill.

The buzz in the district this week has been that approving a referendum would incur a permanent change in the tax rate, while issuing bonds would only incur a temporary tax rate increase that could come off of the tax bill once the bonds are paid back.

The loan would be paid back over a prospected three years. The district is at the tail end of paying back a loan it took out three years ago.

“What they don’t understand is that right now taxpayers are paying 30 cents on a loan… if they vote no, they are going to pay 65 cents on a loan, and then what is that going to be three years down the road?” said District Superintendent Randy Vincent. “Is it going to be 90 cent? Is it going to be a dollar?”

So, in the long term, the best way for the voter to control the tax rate is to vote for the referendum, said Vincent.

If the district were required to take out a loan, “it would probably be in December,” said Vincent.

“The reason for that is… the sooner we get it, the sooner we can invest it and offset some of that interest,” said Vincent. “It won’t get us $325,000 in interest, but it will get us something.” The district would get the money then, and taxpayers would not see the increase until their next tax bill because the levy would also be set in December.

“We still want voters to look at the Fieldcrest website and if they have any questions to give us a call,” said Vincent.

Referendum Steering Committee Member Jay Jochums said he feels the committee has reached its goal of getting a clear and consistent message out to the voters about the upcoming referendum.

“We’re happy with all of the work that people did for this,” said Jochums, “and based on the response we received, we’re confident that the voters in the district will do the right thing on November 7 and approve the referendum.”

The Fieldcrest Referendum Steering Committee will make itself available to residents who need rides to the polls on Nov. 7. People who need a ride to the polls can contact Jay Jochums at (309) 432 – 2517 ext. 0.

“There will be several members of the committee that will be available to give rides that day,” said Jochums.