A referendum passed at the April election will dissolve the archaic Cicero Township Trustees of Schools, which oversees investments for six school districts in Oak Park, Berwyn and Cicero. The dissolution, which needs to be completed by the end of the year, frees all districts to handle their own investments.
But now, Oak Park and River Forest High School has thrown a new wrinkle into the process by withdrawing from the Cicero group immediately and demanding its share of the funds.
OPRF’s board last week took advantage of state legislation passed in January and withdrew from the township body, authorizing its lawyers to sue to recover its money by May 22. The district is owed $60 million, plus other assets such as titles to its real property, said Cheryl Witham, OPRF chief financial officer.
In response, the township board on Monday passed a resolution authorizing its attorneys to file a request for judicial oversight of the dissolution of the township body, said William B. Sullivan, president of the township board.
“We’re still trying to get our heads around what the implications of [OPRF]’s withdrawal will be,” Sullivan said.
Witham said much of the money the township office normally invests has been liquid since last fall when the township fired its treasurer. Five days was plenty of time, she said, to return the money or offer a plan for its return.
Although a Dist. 97 official did not respond to requests for comment, Sullivan said the district was on board for working through the dissolution process with the other districts. He said Tuesday morning that the six school finance chiefs planned to meet Tuesday to discuss the dissolution and that he was “cautiously optimistic they will be able to come to a resolution as to all of their differences.”
But Witham said later on Tuesday that the meeting had been canceled. “I’m very disappointed,” she said, adding that after the interview she would contact other business chiefs to try to reschedule.
The township office is still recovering from the ousting of its treasurer last fall. Audits are more than a year behind schedule, so an exact accounting of each district’s funds is not possible, Sullivan said.
The financiers are working to develop an intergovernmental agreement that would chart how funds would be distributed to member districts after the Trustees of Schools board is disbanded. Sullivan said his board is shooting for a June 30 dissolution deadline.
Witham said OPRF is ready to make the transition while others are not. OPRF, she said, shouldn’t have to share in the costs of a slower transition.
“We know what our balances are and are prepared to be independent and have been prepared to be independent for a very long time,” she said. OPRF will save money and make better returns on its investments once its gains control of them, she said.
OPRF is willing to work with the other districts, Witham said, but that if that becomes untenable it will file suit for judicial oversight of the dissolution and dispersal of funds.
Witham said in such an event, OPRF should still be dealt with separately from the dissolution. “Those are two very different things,” she said.
-
Â
Although the board will be gone by year’s end, the election in April for two open trustee seats was contested. Maureen Sherwood and Lou Angeloni were re-elected to the board. Sullivan was re-elected by the board as its president Monday night, he said.
CONTACT: dcarter@wjinc.com