Munster taxpayers wary of schools pursuing a second referendum

The dryness didn't last.

Tempers flared when the floor was opened to public comment and community members stressed that rifts still exist from the revelation that two former superintendents received more than $850,000 in improper salary and annuity payments. Members of the audience said they are exasperated that the district is asking the taxpayers to pony up more money again — just three years after they passed a referendum.

The proposed referendum — which would be on the ballot in 2017 at the earliest — would raise the property tax amount by 13 cents per $100 of assessed value for a total of 33 cents per $100 of assessed value, and it would receive the amount for seven years, raising an estimated $5.4 million annually. For a home assessed at $200,000, the referendum would add $130 to a homeowner's annual bill after homestead and other exemptions are applied.

Munster resident Ken Schmitt said he and others are frustrated because the district should have anticipated property tax shortfalls and other issues by asking for more during the first referendum.

"When the first referendum came about, the district's consultant said that we needed 25 cents (per $100 of assessed value), but it was never going to pass at that rate. They settled by putting it at 19 cents," Schmitt said. "There was a disconnect throughout all of that. Everybody knew they'd come back later because they asked for less than they could survive on."

In 2014, the district informed the community that it was $7 million in debt due to lower property tax allocations from the county, resulting in staff layoffs and other cuts.

Just a few months ago, state auditors were critical of two former superintendents — William Pfister and Richard Sopko — who received around $851,000 in overpayments to their annuities, salaries and stipends. The state said the administrators should repay the funds and referred the information to the Lake County prosecutor, the Indiana attorney General and the FBI. No charges or repayment agreements have been announced.

But residents say they are frustrated that there has been no word of any charges and are convinced that the board members allowed the situation to occur.

"In March (2015) when we witnessed possible irregularities, not for one second did anybody on the board talk about not sending that information down to Indianapolis," said board member Melissa Higgason. "It was 5-0 within two minutes. We're attempting to gain the trust of everybody to recognize where we're at and where do you want us to go."

Schmitt and others said that the district has seen teachers leave for other districts because they haven't seen a pay raise in years.

"You've gotta gain our trust to get us to say, 'I'm wiling to pay more,' " Schmitt said. "No smoke and mirrors."

Todd Samuelson, a consultant from Umbaugh and Associates, said one of the looming issues for the district is the sunsetting of a provision in the state property tax cap law, which exempts existing school debt in Lake County from the caps. Samuelson said it would create a "fiscal cliff."

"There will be a significant impact to revenues," Samuelson said. "The resources that Munster schools would receive in 2020 and going forward, it would be well over a $2 million revenue cut, which is not good news. But we're trying to plan for that."

Facilities needs

Superintendent Jeff Hendrix said roof replacements at Munster High School, Wright Middle School and Frank Hammond Elementary are some of the most pressing — and priciest — needs for the district, which the capital projects fund can't cover.

"A lot of times when drive you around our schools and look at the buildings, they look great, but as you get inside and talk to maintenance employees, you get an idea of the issues," Hendrix said. "The buildings are getting old, and we don't have the money to be on rotational improvement cycle. We should be doing that every year, so there should never not be a roofing project. The (high school) field house is just one bad storm from all of that blowing off."

The presentation included photos of red trash cans collecting leaks during a recent rainstorm, as well as cracked parking lots, worn carpeting, peeling paint and other issues.

All of the schools need more secure entrances as well because once a person gains entrance through the front door, there's nothing to prevent them from going elsewhere, according to consultants from Performance Services.

Munster resident Wayne Ault wondered what passing another general fund referendum would do for the district's facilities needs.

Samuelson said the district is working to refinance the interest rates on its bonds, which could save about $2.4 million, and with those savings, the district can pay for some of its most pressing needs.

Board member Ron Ostojic said the district has been working hard to show it can handle the taxpayer dollars.

"We're not going to spend more money than we have; those days are done," Ostojic said. "No more will we go into debt. We took aides out of classrooms, which was a hard decision. We haven't given anything to teachers for years, and you're right — we are losing teachers.

"We want to show you what we've done, and we hope that you believe we can handle your money."