Community News
School board accepts financial report, wrestles with rising insurance costs
Members of the Community Unit School District 7 Board of Education voted on Monday night to accept the district’s annual financial report and audit, and agreed to drop $5 million in mine subsidence coverage in an effort to mitigate against rising commercial insurance premiums.
Ken Loy, an auditor with Loy Miller Talley Certified Public Accountants, Alton, presented highlights of the financial report for the fiscal year that ended June 30 this year. Loy said the auditors provided a “clean opinion” overall for the district’s procedures for accounting, tracking financial information and maintaining internal controls. State law requires the auditors to render opinions in three specific areas, including an opinion on overall auditing standards and an opinion on internal control compliance within each of the district’s major programs. Additionally, the auditors were required to present on opinion on the district’s handling of federal funds, which exceeded $3.4 million last fiscal year.
“You have three reports with three clean opinions,” Loy said.
The financial report also includes a financial profile assessment required by state law. Loy said the profile, determined through calculations for five different ratios, is 3.7 out of 4.0 for the past fiscal year. The “Recognition” status is the state’s highest category for school districts.
“Most districts have been on the ‘Watch List’ and Gillespie has been on the ‘Watch List’ in past years,” Loy commented. “But you’re at the top of the ladder now and have been for the past two years.” Loy said Gillespie had a perfect score in four of the five categories used to determine financial status but fell short in the area of long-term debt.
“Your long-term debt is a little on the high side,” Loy said, largely because of financial liabilities the district incurred after the loss of Benld Elementary School due to mine subsidence.
The report shows the district having $11,460,000 in long-term debt, requiring annual debt service payments of $1.1 million to $1.2 million. Additionally, the district has $639,711 in lease liabilities for equipment such as school buses.
Comparing revenue to expenditures, the district took in more money than it spent in all for two funds, where budgeted spending deficits were covered with existing surplus funds.
The financial report documents a property tax for last fiscal year at $3.49 per $100 in equalized assessed valuation. At the same time, the district’s total equalized assessed valuation was set at $103,564,334, up from $87,198,959 two years ago.
“The last three years, you’ve had some pretty big increases in equalized assessed valuation of six to eight percent,” Loy commented. “That’s a lot different from a few years ago when it was 2.7 to three percent.”
The document reports the cost of educating one student for one year at $8,892, which is what the district would charge as tuition for an out-of-district student. The average daily attendance was 1,005, which is up from 996 the previous year, but still shy of 1,028 for 1,100 before the COVID-19 pandemic.
Loy characterized the school’s overall financial condition as stable.
“You’ve had three or four pretty good years in a row that helps offset some of the bad years you had in the past from about 2016 to 2020,” Loy said.
COMMERCIAL INSURANCE DEBATE
On a motion by Amanda Ross, seconded by Peyton Bernot, the board voted to renew a commercial insurance policy with Wright Speciality with some modifications to the company’s original proposal. The action followed several minutes of debate as the board wrestled with substantive increases in premiums.
The policy covers general liability, property damage, crime, vehicles and workers compensation, along with additional coverage for mine subsidence. While premiums for coverage in most areas were similar to the previous year, the premium for property damaged jumped nearly $40,000 from $105,821 to $142,444. Supt. Shane Owsley said the increase was due to the insurer’s experience with paying out weather-related claims over the past year. Additionally, the company proposed reducing the district’s deductible for wind and hail damage from 10 percent to 1 percent.
The total premium for standard coverage came in at $261,238, compared with $219,888 last year.
Additionally, the district purchased mine subsidence insurance for $124,189 for the first $10 million in coverage, plus $48,852 for the next $5 million and $44,175 for yet another $5 million in coverage. Essentially, the district was paying $217,216 for a total of $20 million in mine subsidence coverage.
Owsley said the district could shave $5,893 from the standard policy premium pay upping the deductible to $15,000 for all perils excluding wind and hail.
“I’d love to keep all the insurance, but you’d be looking at about $50,000 in additional premiums,” Owsley said. “I don’t have any good answers for you.” Owsley proposed increasing the deductible from $10,000 to $15,000, dropping $5 million in subsidence coverage, and purchasing additional “gap” coverage for about $50,000 for wind and hail coverage.
Owsley noted that a castrophic loss due to mine subsidence, as when Benld Elementary School was a total loss, is unlikely. Moreover, $20 million in coverage would not be nearly enough to cover a total loss of one of the district’s classroom buildings. Mine tunnels under the newly constructed BenGil Elementary School were injected with concrete before the school was built, but portions of the High School/Middle School are undermined and subject to mine subsidence damage.
“When you drive around this area in the country, you see a lot of sinks,” Weye Schmidt commented.
Owsley said he’d been advised that it’s not a question of wthether or not the district will experience mine subsidence damage at some point but rather “when” that damage will occur.
Bernot agreed $20 million would not be enough to cover a catastrophic loss and if such a thing were to happen, the district would be forced to return to the legislature for funding to replace a school. Additionally, the amount of money the district can levy is limited by tax caps, meaning the district cannot levy enough in property tax to cover the increase in premiums.
“Where would that money come from?” Bernot asked.
“It would have to come from our reserves,” Owsley replied.
Bernot commented that he’d be comfortable with eliminating $5 million in subsidence coverage to reduce premium costs.
The approved plan—with $15 million in mine subsidence coverage, a $5,000 boost in the deductible, and the addition of gap coverage for wind and hail—will total $475,386, compared with $421,976 the district paid last year.
ATHLETIC REPORT
Athletic Director Jeremy Smith addressed the board with an end-of-season report, which included an extensive discussion regarding to the future of the district’s soccer program. Previously, the district was part of a coop with Litchfield High School to field enough players tor a team, but Smith reported Litchfield recently dropped out of the coop.
“I’ve reached out to local schools to see if they would coop with us,” Smith said. “They’re not really interested, mainly because, with our enrollment, it would put them up into the next class.”
The district could resume a soccer program as a parent-supported sport, according to Smith and Owsley. However, the Litchfield program became a school-supported sport two years ago, meaning Gillespie soccer parents have not been active for the past two years. Owsley said a goal would be to recruit at least 18 players, at a cost of about $10,000 per player—meaning parents would have to raise about $180,000 to fund the program. Owsley was optimistic about recruiting 18 players because younger players have been reluctant to join the program because they could not drive themselves to Litchfield.
The district currently sends six players to Litchfield.
Smith said he is awaiting results from a survey of students to gauge the level of interest in a local program. In the meantime, GHS Principal Jill Rosentreter said soccer parents are “anxious” about what direction the school will take. She said she and Smith are making an effort to keep parents informed as the local district works toward a resolution.
Smith also introduced a sports webpage which can be accessed via the school district’s webpage. The new website includes a sports calendar, schedules, and information about Sports Hall of Fame inductees. Smith said parents can even set up a personal account through the page which will ensure they receive emails regarding schedule changes, cancellations and other information.
PERSONNEL
Following a one-hour executive session, the board voted to post a vacancy for an elementary Social/Emotional Learning coordinator, and voted to hire Kelly Helen as a district custodian.
In other action, the board accepted the resignation of Jay Weber as head coach for the parent-funded middle school cross-country program, and hired Trae Wargo as the seventh grade basketball coach.
The board accepted the resignation of Alexis Ollis as the GMS/GHS head cook and posted a vacancy for the position. Board members also voted to hire Amy Costello as a three-hour part-time cafeteria worker, pending a background check, and voted to post a vacancy for a six-hour part-time cafeteria worker.
CEO FUNDING
In other action, the board accepted Owsley’s recommendation to make a $3,000 investment in the county’s Creating Entrepreneurial Opportunitites (CEO) program, payable in three $1,000 annual increments. CEO board chairman Scott Reichman made the request last month during a District Focus segment.
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Bunker Hill – Zion Lutheran Church in Bunker Hill is excited to announce a rummage sale taking place on Thursday, March 20, Friday, March 21, and Saturday, March 22. The sale will be held at the church located at 609 East Warren Street in Bunker Hill. All proceeds from the sale will be donated to Illinois Valley Meals on Wheels in Macoupin County, a vital program that prepares and delivers over 1,500 meals daily to those in need across three counties.
Donations for the rummage sale are warmly welcomed and can be dropped off at the church’s north entrance starting Monday, March 17. Items of all kinds are appreciated, and your contributions will directly support the dedicated efforts of volunteers who ensure that nutritious meals reach our community members.
The sale will run from 4 to 8 PM on Thursday and then 8 AM to 4 PM on Friday and Saturday, making it convenient for everyone to stop by and find great deals while supporting a crucial service in our area.
For more information about the rummage sale or how to donate, please contact Jane Baker at 618-973-2666.
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FELONIES
Bryer D. Greff, 30 of Virden, is charged with retail theft (<$300) with a previous conviction in connection to a March 1 incident.
Michael J. Weaver, 34 of Carlinville, is charged with methamphetamine delivery (400<900 grams), possession of methamphetamine (400<900 grams), and felon in possession of a weapon in connection with a March 3 incident.
Patrick D. Greer, 39 of Mount Olive, is charged with burglary and theft/unauthorized control (>500<10k) in connection with a January 23 and March 3 incident .
Brian H. Duff, 50 of Alton, is charged with theft/unauthorized control (>500<10k) in connection with a January 30 incident.
MISDEMEANORS
Allison S. Cisco, 18 of Carlinville, is charged with battery/causing bodily harm in connection with a March 1 incident.
Andrew C. London, 19 of Wilsonville, is charged with retail theft (<$300) in connection with a March 5 incident.
Shelby L. Veach, 23 of Staunton, is charged with resisting a peace officer/firefighter/corrections employee and criminal damage to property in connection with a December 16 and December 21 incident.
Robert J. Zumwalt, 43 of Livingston, is charged with resisting a peace officer/firefighter/corrections employee in connection with a December 21 incident.
TRAFFIC
Andrew J. McDaniel, 56 of Littleton, CO, is charged with speeding 26-34 mph over the limit in connection with a February 23 incident.
Connor E. O’Brien, 25 of Riverside, is charged with speeding 26-34 mph over the limit in connection with a February 24 incident.
Anthony M. Reed, 29 of Fayette, MS, is charged with driving on a suspended license and driving 15-20 mph above the limit in connection with a February 22 incident.
Patrick M. Nejmanowski, 58 of Carlinville, is charged with driving on a revoked license and driving 21-25 mph above the limit in connection with a February 25 incident.
Michael A. Coates, 49 of Staunton, is charged with driving on a revoked license and operating a motor vehicle with suspended registration in connection with a February 16 incident.
Carl R. Albracht, 50 of Palmyra, is charged with canceled/revoked/suspended registration in connection with a February 25 incident.
Jessica M. Jenkins, 40 of Gillespie, is charged with canceled/revoked/suspended registration in connection with a February 24 incident.
Jason L. Peter, 48 of Carlinville, is charged with canceled/revoked/suspended registration in connection with a February 22 incident.
Matthew D. Knick, 21 of Mount Olive, is charged with driving on suspended license in connection with a February 27 incident.
Julia A. Schall, 68 of Shipman, is charged with driving on a revoked license in connection with a February 27 incdient.
Amy N. Gomer, 39 of Shipman, is charged with driving on a suspended license in connection with a March 4 incident.
Dalton C. Bunyard, 32 of Wood River, is charged with speeding 26-34 mph over the limit in connection with a February 28 incident.
Edward Tumpach III, 33 of Hillsboro, is charged with reckless driving, improper traffic lane usage, and disregarding a traffic control device in connection with a March 5 incident.
DISSOLUTION OF MARRIAGE FILED
- Neil Ringer versus Whitney Ringer
- Christina Essington versus John Essington
- Scott Huddleston versus Jessica Huddleston
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Community News
Gillespie council provisionally approves $4 million streetscape contract, greenlights solar project at CCSC
With federal agencies facing budget and personnel cuts, and a spending bill to fund government operations in flux, Gillespie City Council members voted 5-2 to tentatively approve a $4 million contract to complete the long-awaited downtown streetscape project. The contract with Stutz Excavating, Inc., Alton, is conditioned upon the city receiving $4 million in grant funds previously awarded by Rural Development, a program administered by the federal Department of Agriculture and potentially at risk of Department of Government Efficiency cuts and/or Congressional failure to approve a Continuing Resolution to fund the federal government through Sept. 30.
With a bid of $4,032,048.79, Stutz was the lower of two bidders for the project. The second bidder, Kinney Contractors, offered a $4.9 million contract. In addition to the base contract, Stutz offered two alternate bids—$203,000 for additional electrical receptacles on newly installed street light poles, and $210,000 for brick pavers in lieu of stamped concrete for downtown sidewalks. In addition to being less expensive, stamped concrete is recommended for durability and easier maintenance, according to Mike Brandt, and engineer with Curry and Associates Engineering, who presented the bids to the council.
City Treasurer Dan Fisher said the grant requires the project to be completed by the end of 2025. With the grant funds vulnerable, the window for completing the project could narrow.
“The problem right now is we have DOGE making program cuts and the recurring issue of a Continuing Resolution (CR) to fund the government,” Fisher said. The House is likely to pass the CR, according to Fisher, but the bill could easily stall in the Senate. As part of the CR proposal, all earmarks from this year will be frozen, but Fisher said Gillespie’s grant money was earmarked in the prior year.
“I think we will know one way or another in the next 30 to 60 days,” he said. “The bid is good for 90 days so, in theory, we have three months.”
Ald. Landon Pettit questioned the lack of contingency funds in Stutz’s bid, pointing out unexpected expenses could push the project cost beyond the city’s budget. Fisher said Rural Development recommends contingency funds equal to five to seven percent of the project.
“Ten percent is ideal,” he said. “On a $4 million project, that’s $400,000.”
Additionally, Fisher said, the city is entitled to negotiate with the contractor once the contract is awarded to reduce the scope of the project to rein in costs.
“How can you do that after you sign a contract for $4 million and whatever?” Ald. Janet Odell-Mueller asked.
“We have exactly $4 million in grant money,” Fisher said. “The contract is a unit-based contract. We have the ability to reduce the contract by reducing the contract.” As an example, he said the contract may specify a monetary amount for each linear foot for sewer line installation; the city can reduce the contract by reducing the length of sewer line it decides to install. Ultimately, Fisher estimated the city will have to come up with about $250,000 out-of-pocket to complete the project.
Several aldermen expressed discomfort over entering the into the contract when the grant funds are in doubt.
“We have no guarantee this money is coming,” Ald. Pettit said.
“If we sign the contract and the money doesn’t come,” Ald. Wendy Rolando noted, “we don’t have $4 million dollars to spend.”
Fisher said the grant has been awarded, but the city cannot access the money until after the contract is awarded. If the grant money is stalled, the contract will be void and the project will be terminated.
Ald. Bob Fritz complained that improvements to side streets are no longer included in the scope of work.
“I was under the impression that we would do the streets for one block off of Macoupin Street,” Fritz said Walnut Street is deteriorated along with sidewalks on Chestnut Street. He said he would like to see Walnut repaved to the curbs to provide additional parking just a block away from the business district. Moreover, he said the sidewalk in front of the former Area News building on Chestnut is deteriorated to the point of being impassable.
“It doesn’t make sense to replace that sidewalk before the building is torn downs, because they will mess it up tearing it down,” he said. He proposed delaying parts of the project until the building is razed.
“We have to have the project completed in 2025,” Fisher replied. “We can’t put $4 million of grant money at risk for a $5,000 sidewalk.”
After several minutes of discussion, a motion by Rolando, seconded by Ald. Bill Hayes, to accept the Stutz contract, conditioned upon the city receiving $4 million in grant funds, was approved with Rolando, Hayes, Dona Rauzi, Dave Link and Frank Barrett voting “yes.” Ald. Fritz and Ald. Odell-Mueller voted “no,” with Ald. Pettit abstaining.
With a goal of improving the business climate in the downtown area, the Streetscape project has been under discussion for more than two years. Jointly initiated by Grow Gillespie, a civic improvement group, and the City of Gillespie, the project includes lighting, landscaping and parking improvements in the downtown commercial area with an eye toward stimulating economic growth.
SOLAR FIELD ZONING VARIANCE
With one dissenting vote, the council accepted the Zoning Board’s recommendation to approve a 35-year temporary use permit allowing SunCode Energy to install a power generating solar field on the north end of property owned by the Coal Country Sports Complex. Kent Tarro, representing the Coal Country Sports Association, told the council the solar field will not interfere with existing soccer fields or use of the property by cross-country runners while generating revenue to maintain and operate the recreational facility.
“This is a way to keep us sustainable while using reclaimed coal mine property,” he said.
Brett Jacoby, SunCode attorney, said the 18-acre solar field will generate about five megawatts of energy—enough to power five average sized homes. Located on the north side of the reclaimed “gob pile” left behind from the Little Dog Coal Mine, the solar field will be “virtually invisible” to persons using the sports complex for recreation, according to Jacoby.
Currently tax-exempt, the property is expected to generate $27,000 in property tax revenue in the first year and $654,000 over the life of the permit. The project is expected to produce 25 local prevailing wage construction jobs during the estimated 12-month construction period.
Once the temporary permit expires, SunCode will dismantle and remove all equipment and return the land to the Sports Association, according to Jacoby.
Jacoby told the council that power generated from the the field will be uploaded to the Ameren power grid. Local energy customers can participate by subscribing to the project to realize a slight discount on their power bills.
“There’s no cost to subscribe and subscribers can end the contract at any time,” Jacoby said. “It will take 10 to 15 percent off their monthly electrical bill, so it’s not life changing.”
City Attorney Rick Verticchio reported that during a Zoning Board hearing last week, SunCode officials pledged to offer training sessions for local firefighters and make arrangements for emergency services to have access to the fenced site.
A motion by Ald. Pettit to approve the temporary use permit was approved 7-1 with Ald. Rolando casting a dissenting vote.
SIREN PURCHASE APPROVED
Council members approved spending up to $90,000 to purchase and install four new emergency sirens. Initially, City Treasurer Fisher sidetracked Ald. Fritz’s proposal to purchase the equipment, saying there were no grant programs available and not enough money in the Emergency Services and Disaster Administration fund to cover the cost of new sirens.
“The only grant program available is through Rural Development and they have no funds to distribute until the budget is approved,” Fisher said, again invoking legislative chaos in Washington. He said the city’s ESDA fund had only $62,000.
The council then went on to other matters, only to have Ald. Pettit circle back to the siren issue after a few minutes.
“If we took some money out of the Revolving Loan Fund, some out of ESDA and some out of TIF II—and I know there’s not a lot in that fund—we could cobble together $80,000 and not hurt the General Fund too bad,” Pettit speculated. Pettit said money transferred from the Revolving Loan Fund and TIF II could be repaid over time. After further discussion, his motion to authorize the purchase was unanimously approved.
The equipment, provided by Sentry Sirens, Inc., will be installed at four locations, including the water treatment plant, city cemetery, Community Unit School District 7 campus, and a mobile home court on the city’s southwest side. Fritz said the sirens will blast different signals to indicate severe weather versus other emergencies.
LAKE LOT ISSUE
Following the city attorney’s recommendation, the council voted to secure a property tax “assignment” on a lake lot located at 10227 Fries Lane on which property taxes are delinquent. Council members, however, referred to committee a recommendation to amend lake lot leases to mandate forfeiture if a lease-holder fails to pay property taxes due.
“We don’t want a taxing body to acquire that property,” City Attorney Verticchio said. Monday night’s action secures the property and enables the city to transfer the lease to another lease-holder.
Verticchio said he would like to add a provision to future leases requiring the lease-holder to pay property taxes or surrender the lot. Ald Pettit said he and Ald. Barrett had other recommendations for amending future leases. He proposed tabling Verticchio’s request until after the Lake Committee can meet to make other changes to the lease.
In a related matter, Pettit asked to have the City Clerk’s office compile a list of all surplus real estate the city owns with an eye toward selling the lots. Verticchio said properties that have previously been advertised for sale but did not attract bidders can legally be sold for a price negotiated between the city and the buyer.
“Right now no one is paying taxes on those properties,” Pettit said “We can sell them essentially to recover attorney fees, and start getting tax revenue from them.”
EAST GILLESPIE/EAGARVILLE SEWER CONTRACT
As the City of Gillespie eyes a project to replace deteriorating sewer lines in the city, Verticcho recommended renegotiating satellite contracts with Eagarville and East Gillespie to continue treating waste from both communities. Council members voted unanimously to authorize Mayor John Hicks to enter into negotiations to draft new agreements.
The city apparently plans to seek financial assistance from Rural Development to undertake the project, similar to how it financed a project to replace water distribution lines. Verticchio indicated the new contracts should include new rates to comply with mandates Rural Development will require to underwrite the sewer improvement project.
LAKE POSITION
Following a 30-minute executive session, the council voted unanimously to hire Austin Loftis to step into duties vacated by former Lake Supervisor Gary Thornhill, though the motion to hire did not identify Loftis’ title or address wages. Loftis reportedly had been fulfilling Thornhill’s duties after Thornhill resigned to accept another job. The motion to hire Loftis included a provision for a six-month probationary period.
PROTECTIVE VEST SALE
Acting on a recommendation by Police Chief Jared DePoppe, the council voted to offer a protective vest used by an officer who recently resigned to take another job for sale to the Fayette County Sheriff’s Department for $750. DePoppe told the council the vests are fitted specifically to the individual, so it would be essentially useless to the city. He said he based the asking price on the original cost and the amount time it had been used in Gillespie.
HOLLIS RESOLUTION
Council members unanimously approved a formal resolution recognizing Thomas William Hollis, a Gillespie resident who achieved the rank of Lance Corporal in the United States Marine Corps before he was killed in action at the age of 19 in Vietnam. Born May 24, 1948, Hollis attended Gillespie High School where he was a star athlete. After graduation, he volunteered for the Marine Corps and was killed on Jan. 28, 1968, in Quang Tri Province as a result of artillery rocket mortar fire. He was one of about 55,000 American soldiers killed in action during the Vietnam War.
Passage of the resolution paves the way for the Illinois Department of Transportation to erect signs honoring Hollis on Illinois Route 16 at the east and north entrances to the city.
CONXXUS SOLICITATION
The council heard briefly from Wendy Nobel, representing Conxxus fiber optic internet, before granting a solicitation permit for Conxxus employees to make door-to-door solicitations of Gillespie residents. Nobel said solicitors will explain various plans available to customers and potential benefits of the newly installed $1.6 million system. Nobel said most residents have received solicitation materials in the mail but “we’ve found people don’t always understand the materials and they’re more comfortable dealing with someone face-to-face.”
Solicitors will check in with city hall on the days they plan to work in the city, and voluntarily provide photos of the solicitors to be posted on the city’s social media page. Nobel there usually will be no more than one person working in the city at a time.
POLICE STATION PAYMENT
Council members approved payment of $1,500 to John Watson Contracting for work associated with reconnecting bathroom facilities in the basement of the newly renovated Police Station building on Macoupin Street. The work was not included in the original bid for the work.
In a related matter, the council approved payment of the second installment of $59,199 to Watson Contracting from the city’s Tax Increment Financing Funds for work completed on remodeling the new Police Station.
OTHER ACTION
In other action, the council:
- Approved advertising for applications for two seasonal worker positions at Gillespie Lake.
- Agreed to spend up to $500 to investigate electrical fixtures at Pomatto Park to determine what is needed for repairs.
- Accepted two bids totaling $950 from Feeley Tree Service to remove two trees located on city boulevards on Cedar Street and on Illinois Route 4 south.
