Schools

District 204 Lambasted over Deal with Township Treasurer's Office

The district denied any impropriety in the arrangement it made in 1999 that excused it from paying administrative fees for tasks it handles in house.

Tensions erupted at the District 204 School Board meeting Monday night when a former District 101 School Board member attacked 204’s relationship with the beleaguered Lyons Township Treasurer’s Office. 

District 204 forcefully defended itself against Martin Brown as he bashed the financial effect he said a fee arrangement between the TTO and the district had on other member school districts. 

"This falls far short of the law and what reasonable people would expect of their public servants, especially for an intergovernmental agreement covering a very significant amount of money," Brown said.

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The district made a deal with former Lyons Township Treasurer Robert Healy in 1999 that allowed it to take a pass on certain administrative fees charged to other Lyons Township districts. Healy resigned last year amid allegations he misused more than $500,000 worth of sick, vacation and personal time.

The district uses its own staff to perform most payroll, billing and bookkeeping tasks. But it’s still bound to pay those fees—now totaling more than $2 million—because it wasn’t officially emancipated from the TTO, according to a Better Government Association report.

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The fact that the district wasn’t paying the administrative fees, Brown said, put an undue burden on the other districts in the township.

“LT’s board stresses their belief in transparency,” he said. “In this case, I believe they fell far short of that commitment to the community.”

Board President Mark Pera said the district acted transparently and in good faith when it entered into the agreement.

“We did not see why the taxpayers of District 204 should pay for a service they were not receiving,” he said. “I am not aware as we sit here 13 years later of any adverse impact on another district.”

Superintendent Tim Kilrea said that it would actually raise costs and decrease the level of service for other member districts if District 204 had the TTO perform the administrative tasks, due to District 204’s size. 

The district worked on legislation with State Rep. Jim Durkin (R-Western Springs) this winter that would allow it to officially disengage from the TTO.

Durkin attended Monday’s meeting to explain HB 3152, which passed in the Illinois House in April and is awaiting a vote in the Illinois Senate.

“I realized this was a good idea,” he said. “It was such a good idea in 1963 when the whole state outside of Cook County eliminated every township school treasurer’s office. It made me think maybe we should start in Cook County as well.”

Brown then cut off Durkin, asking for the opportunity to rebut his statements. Pera quickly rebuffed him.

Watch the video. 

“As far as you’re concerned, the open meeting is closed because you’ve been given an opportunity to speak,” Pera said. “And don’t interrupt other speakers.” 

Durkin continued, explaining that Oak Park and River Forest High School, as well as the Morton schools, have similarly withdrawn from their TTO. District 204, he said, has the sophistication to handle its own finances.

Western Springs School District 101, La Grange School District 102, La Grange School District 105 and Pleasantdale School District 107 all support the bill, Durkin said. 

There are 28 school districts in Cook County, 11 of which have separated from their TTO, according to a district fact sheet. Cook County is the only Illinois county that still uses township treasurers.

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