D86 Candidate on Bonds: 'Common Sense Questions Were Ignored'

About one year ago, the District 86 board majority, including Dennis Brennan, Deirdre Gorgol, and Kay Gallo, chose to bypass the voting public, by issuing $18 million in bond debt. As a point of reference, the district had cash interest bearing reserves totaling $57.9 million as of June 30, 2011. Common sense questions were ignored:

1. Why not use existing cash reserves to replace or supplement issuance $18 million in debt?
2. Why add a tax burden of $7 million in interest, plus $209,000 in bond issuance costs just to borrow $18 million, a total tax bill of $25.2 million?
3. Why borrow at 3.2 percent to $3.5 percent when earning about .3 percent on $57.9 million in cash reserves?
4. Why not sell the bond issue in the open free market via competitive bidding for the best interest rate possible, especially to take advantage of the district’s triple-A bond rating?

The following recommendations and my beliefs can only but help build a more positive trusting relationship with District 86’s taxpaying public:

1. Prior to any debt issuance, the board should first consider to replace or supplement it by using existing cash reserves;
2. Several well-advertised open townhall-type meetings should occur prior to board approval;
3. The final decision to issue bonds should require voter approval by public referendum;  
4. All bond issuances should require open free market competitive bidding, with the lowest bidder being awarded the sale by the board;
5. The official statement is the important document that contains all relevant bond issue information and should be distributed to all board members, and made readily available to the public; not by a FOIA requirement.
6. All work done with bond proceeds should be bid out to the lowest bidder. The same should apply to any project/construction manager. In this case, the board majority both only considered and hired one firm as manager, Gilbane Building Company, which was paid $1 million dollars, plus reimbursed expenses of over $290,000. 

This conduct has to change.

I respectfully ask for your vote on April 9.

Roger J. Kempa

Darien