Forest Preserve could consider expensive loans

By Susan Stevens Daily Herald Staff Writer
Posted Wednesday, April 14, 2004

DuPage County Forest Preserve District commissioners on Tuesday refused to rule out taking on expensive loans to acquire land.

So-called non-referendum bonds, which the district can sell without voters' permission, would cost roughly three times as much in interest as loans approved by the voters.

But the higher interest rate - more than 146 percent over the life of a $15 million to $30 million loan - is a price some commissioners are willing to pay to secure land immediately.

"There may come some parcels where development is imminent," Commissioner Roger Kotecki of Carol Stream said. "If someone is going to cut down a forest up to the edge of what we already own, maybe we should look at that as an emergency."

The discussion comes as commissioners are prioritizing a list of sites for future acquisition. Some sites could be purchased with current revenues, but commissioners are also considering new debt.

The board has until Aug. 30 to put a tax increase request on the November ballot. Borrowing money before then would cost more because the district couldn't start repaying the debt until 2019, when old debt will come off the tax rolls.

On a $15 million loan, the difference is more than $15.8 million in extra interest for the non-referendum bonds.

The forest preserve district could raise up to $31.5 million without asking voters to increase tax rates, Finance Director Carole Hofmann said.

Forest Preserve President Dewey Pierotti said he will oppose any non-referendum bond issue. Commissioners in closed session have suggested that as a way to finance land purchases, including sites that don't rise to emergency status, Pierotti said.

"What we're going to be doing is encumbering future generations," Pierotti said. "I might not see it on my tax bills, but my grandchildren will."

The non-referendum bonding authority should be tapped only in emergencies, such as when the district wanted to buy St. James Farm, Pierotti said.

Commissioner Marsha Murphy of Addison said she agrees with Pierotti. Commissioner Joe Cantore of Oakbrook Terrace said it would be imprudent to borrow money at such a high interest rate, particularly without a well thought-out plan.

"I don't think we should be even thinking about this if we don't have a prioritization of our land acquisition and capital improvement projects," Cantore said. "You wouldn't do it in a business, so we shouldn't do it here."

But Commissioner Gwen Henry of Wheaton is not ready to rule out non-referendum borrowing. The district first must look at its budget, she said.

"Based on a five-minute presentation, it would be a bit premature to close a door today," Henry said. "I'm not prepared to postulate today and say 'absolutely no.' "

In some cases, the district may need to act before it has time to ask voters to approve a tax hike, said Commissioner Wally Brown of Downers Grove.

"If we need to move, if it's an emergency, that's a different question," he said. "We've gotten the best advice, and we know what it costs, so we're going in with our eyes open. So why close it off as an option?"

Pierotti also clashed with some commissioners over a new set of criteria for land purchases. He criticized commissioners for elevating certain sites, which he did not disclose, for political gain rather than ecological merit. Some commissioners, he said, are pushing projects in their own political district.

"I don't want this to become a political boondoggle in that we start acquiring properties that are politically advantageous for any one of us," Pierotti said.

Brown said the move isn't political, but a way to bring forest preserves to all corners of DuPage County.

"We have to make the forest preserves accessible so people can use them on a regular basis," Brown said. "These people are the ones who helped pass the referendum, and they didn't do it so they can get land in the far northwest corner."