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SRC Bond Issue to Boost Reserves

http://stream.publicbroadcasting.net/production/mp3/wium/local-wium-899112.mp3

Canton, IL – The Spoon River College Board of Trustees is expected to approve a $3.5 million General Obligation Bond issue during a special meeting May 5 in Canton. The board held a public hearing on the plan during its regular monthly meeting in April.

College President Robert Ritschel says no one from the public spoke during the hearing.

Ritschel says the money will help SRC replenish its reserve fund, which has been hurt by late payments from the state.

"This just gives us the opportunity to have a little bit of breathing room," says Ritschel.

Ritschel says rising health care premiums have also cuts into the school's reserves.

Ritschel says the school generally likes to have around $5 million in reserve, which is enough money to cover all expenses for two or three months.

Ritschel says the board might decide May 5 whether to repay the bonds over a five-year period or a ten-year period.

He says the five-year plan would add roughly $37 to the tax bill on a $100,000 home. The ten-year plan would add $21, but he points out it would also increase the amount of interest that must be paid.

"Nobody wants to pay any more taxes," says Ritschel. "But community colleges are at the forefront of providing the kinds of workforce opportunities for people to find employment. We need these particular dollars to help us provide those services."

Also during its April meeting, the SRC board agreed to sell a small piece of land from its Havana campus. Ritschel says an adjacent apartment house purchased the plot to increase its parking area. The sale price was $3,000.