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CARD to discuss increasing debt at Wednesday special meeting

By   /  November 11, 2014  /  3 Comments

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The Collinsville Area Recreation District could vote Wednesday evening to increase the debt of the district by about $180,000 to $200,000.

CARDagainThe cash strapped district needs to increase operational fund balances to ensure it does not have to move balances around between funds to pay debts before June, Board Commissioner President Patrick Collins said. An increase of the tax levy during the annual process in December would not yield additional funds until June 2015. By increasing the debt now, CARD will receive the money sooner, Collins said.

The debt will be paid through a future increase in taxes, possibly in 2016, unless the district can increase their operating margin, Collins said. CARD has decreased the amount it requests in taxes for operational purposes each year since 2010.

The Board of Commissioners voted in December of 2013 to lower the levy by about 1.62 percent. The district has been operating with the decreased revenue since June.

(see related story: http://metroindependent.com/2013/12/26/despite-referendum-card-tax-levy-decrease-consistent-with-past-years/3084/)

The additional $180,000 to $200,000 for operations will be included in the annual rollover bond the district must issue to pay for long-term debt. The 2013 rollover bond was $1,326,791.93. The proposed amount for 2014 is $1,642,000.

Because CARD can borrow at a relatively low interest rate right now – around 1.8 percent – the impact to the taxpayer is not as big as it might have been in other years, Collins said.

Borrowing additional money now to potentially cover operational expenses is not a result of the 2013 referendums that lowered the amount of taxes CARD can collect for three operational funds, Collins said. The referendum takes effect with the June 2015 tax payments.

The Board will vote on the rollover bond at 6:30 p.m. Wednesday, in the banquet room at Arlington Green Golf Course, 200 Arlington Drive, Granite City, IL.

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3 Comments

  1. Ron says:

    Great job by the new commissioner on the CARD board members Pat Collins, Dave Tanzyus, Mark Achenbach, and Jeanne Lomax. They continue to take the right steps to bring fiscal responsibility to the CARD, after 20 plus years of fiscal irresponsibility, under the direction of Mary Ann Bitzer.

  2. Jason Miller says:

    Hey Ron Jedda, why are you afraid to use your full name when leaving comments? Is it because you’re afraid people will laugh when they read the crazy things you post?
    How are the people you mentioned, some who are not new at all to CARD, bringing fiscal responsibility to CARD? They just borrowed money, paying interest, because they were too cowardly to just increase taxes last year. Did you read the story that you just posted your comment on?
    I didn’t know Mary Ann Bitzer was in charge of CARD the last 20 years. Do you blame her for everything hoping another of your hand picked candidates will get elected in the spring and further destroy the parks?
    When is the last time you were at a park to see how disgusting they are since your crew took charge?
    Cheap is not fiscally responsible.

  3. Rob says:

    They need to live within their budget period.

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