Financial Updates

 
Tuesday, January 31, 2012
Dear ACS family,

 

There have been many "moving parts" and countless meetings over the past several months, but the Lord has helped to restore our relationship with Fifth Third Bank and has opened several doors for long-term solution! 

 

A major clarification I need to explain:  we are NOT leasing the Sullivan campus... we OWN the Sullivan campus.  On July 1, 2011, I stated in the Memo that "Fifth Third has helped us to secure this facility through a lease agreement."  That lease was part of the Term Sheet Agreement we signed on June 30.  However, due to internal bank discussions throughout the fall, Fifth Third did not take ownership of our properties.  In mid-November, the finalized forbearance paperwork (relating back to the June 30 Term Sheet Agreement) was issued, allowing ACS to maintain ownership of our properties.  In a meeting with Fifth Third Bank last week, our account manager restated several times that "ACS is NOT renting... ACS owns these properties."  

 

Fifth Third Bank is committed to working with us!  Due to the stabilization of our operating cashflow, we have increased the amount of principal we are paying each month on our loan.  We are also scheduling summer roof repairs and air-conditioning repairs, and we are brainstorming ideas to make our hallways more inviting.  Our admissions goal is to grow our student population each year and reach capacity on this Sullivan campus by 2018!

 

Re-enrollment for 2012-2013 will kick-off on Feburary 11 at our home boys basketball game vs. Chicago Christian.  Enrollment tables will be set up in the cafeteria from 3:00-8:00pm.  Enrolling parents will gain free admission to the game, and all students should wear their White Zone t-shirts.  ACS Senior Athletes (State competing Cross Country, State Champion Football, Golf, Volleyball, Poms and Cheerleading, Boys and Girls Basketball, Track, Baseball, and Softball) will be signing White Zone shirts on request!   All current ACS 8th graders and parents can attend a High School Info Forum from 6:30-7:30pm.  We'll also host half-time game-floor activities for the preschool and elementary students during the Sophomore and Varsity games!  

 

2012-2013 Tuition Rates are available on our school website.  Early Re-Enrollment Tuition Discounts are available to all families re-enrolling from February 11-29.  $250/student enrollment deposits will be credited toward student fees.  All enrollment and tuition assistance information can be accessed on the Admissions page of the school website.  We are so excited to have a smooth enrollment season this year, and we promise that enrollment deposit checks will be deposited within 36 hours of receipt!  Feel free to call the Finance Office with questions regarding re-enrollment.

 

Thank you so much for your commitment to ACS!  God continues to provide...and we continue to praise Him!!

Collette House

 
 
 

 
Friday, July 1, 2011
Dear ACS family,

 

Thank you SO much for your patience as we worked through negotiations and reached a verbal agreement last night!  Our attorney and board are currently reviewing the written contract.  We expect to finalize details and have a signed contract early next week.  

 

We will have school at 2255 Sullivan Road

for the 2011-2012 school year!

 

Although we were unable to negotiate a permanent, long-term solution at this time, Fifth Third has helped us to secure this facility through a lease agreement.  This option also eliminates our former high interest payments and enables us to operate within our budget.  We will continue our monthly-giving fundraising campaign (100 Grand Challenge) to supplement tuition income.  We will also keep you updated throughout the year on our progress toward a long-term solution, and we believe that the Lord has incredible plans for our future!

 

So... we're moving full-steam ahead for 2011-2012!!  We will be depositing tuition monies and would love to confirm your enrollment ASAP so that we can offer contracts to faculty and order curriculum.  Please email your intention to our Admissions Manager at scott.oleson@aurorachristian.org by next Friday, July 8.  (Please include student names and grades.)  If you do not receive a confirmation response, please call the school office at 630-892-1551.  Our Finance Office is re-accepting deposits and is enrolling students for 2011-2012!  (Please make sure that your FACTS online account is set up.)

 

All school calendar dates - including New Parent Orientations, school start dates, fall sporting events, holidays, etc. - are current on our school website... simply choose CALENDAR-ALL SCHOOL under the Quicklinks on top of our homepage at www.aurorachristian.org    

 

I am so excited to announce our new school year here... again UnderOneRoof!  We have all endured quite a bit of stress over the last few months, but we have grown in our faith!  So many of you have been an encouragement to me personally, and I can't explain how much I have treasured your emails and prayers.  I truly believe that ACS is a family... we're not perfect, but we love each other through the good and the bad times.  Our kids share classes, our parents share bleachers, and we all share the goal of Christian education.  Unfortunately, until the past few months, we have neglected to share family prayer.  The sweetest times our faculty share are morning devotions and prayer... I want that for our entire school family!  I will be adding various "ACS Family Prayer" times to the master calendar and including those throughout the school year on A Week in the Life and Fridge Notes.  I'd love for you to join us whenever you are able!  

 

God continues to provide...and we continue to praise Him!

Collette House

 
 
 

 

 
 

 
Wednesday, June 29, 2011
 
Dear ACS Family,
 
This is the BIG WEEK!  Now that our self-imposed decision deadline is just about here, the negotiations are really picking up.  Today and tomorrow will be very active days.  Attorney communication will continue throughout the business day tomorrow (June 30), and then our board and financial advisors will work Thursday night and Friday morning making decisions to communicate to the entire school family. 
 
Thursday night will be prayer and praise in the theater at 7:00pm hosted by our prayer team leader Colletta Schweisthal. Please come to pray for ACS!  (No new information will be available at that time.)  
 
Be watching on Friday for a major release of information regarding school in the fall.  I'll present as much information as possible so that you can make decisions for your household.  Next week, after returning from the 4th of July holiday, our staff will be calling families regarding your personal decisions.  Those calls will help us determine staffing and curricular needs. 
 
Continue in prayer!
Miss House 
 
 
 
 
 

 

 
 

 
Wednesday, June 22, 2011
 
Dear ACS Family,
 
Our attorneys are in ongoing communication with the bank, but were unable to release any new information today.  The three options that I mentioned in last week's Memo are different legal strategies to remain on the Sullivan campus.  Those options continue to be the focus of negotiations this week.  I know that you are anxious for more details, but our financial team is working diligently to provide answers by June 30!
 
Although our goal is to remain on the Sullivan campus, we are continuing to pursue backup options for alternate locations.  We did research the possibility of leasing a vacant school building in the Kaneland school district, but that is not an option for Fall 2011.  We are still in discussion with other facilities closer to our current campus.  I was reminded last week that although we discuss preparations for "Plan B", whatever direction the Lord leads is "Plan A"!!
 
On Thursday night we experienced an intimate hour of small group prayer.  We'll be praying together again tomorrow night (Thursday, June 23) in the theater from 7:00-8:00pm if you'd like to join... parents and students are welcome!  
 
Thank you so much for your patience and your prayers.  I know that it is difficult to wait, but I believe that God is growing our faith and teaching us to rely on His providence and provision!  You are in my prayers tonight,
Miss House
 
 
 

 

 
 

 
Wednesday, June 15, 2011
 
Dear ACS Family,
 
We continue in negotiations with the bank, and are pushing toward our June 30 decision date!  In an attempt to control the process, our Finance Team has presented three distinct options to the bank with a timeline for response.  Once the bank chooses a direction, further negotiation will proceed to detail that option.  
 
We will continue to give you weekly updates with the goal of presenting our final decisions by June 30.  
 
I was encouraged and refreshed by the faith displayed last Thursday night during our Prayer/Praise time.  We'll be praying together again tomorrow night (Thursday, June 16) in the theater from 7:00-8:00pm if you'd like to join... parents and students are welcome!  
 
Have a great night,
Miss House
 
 
 

 

 
 

 
Wednesday, June 8, 2011
 
Dear ACS Family,
 
Thank you for your prayers and support over the last week... please continue to be patient!  We have been so encouraged by your notes and enrollment commitments for 2011-2012, and we are working diligently to prepare for next year!
 
There are not many new details to share with you this week, but here is what is occurring:
  • Negotiations continue with the bank
  • We are receiving ongoing legal counsel throughout this complicated process
  • Fifth Third has responded to our proposal by submitting their own proposal
  • Our financial team is analyzing the bank's proposal, which does not initially appear acceptable, and will prepare a counter-proposal
  • We are waiting for rental rates on potential alternate school sites in case we must pursue "Plan B"

If you were unable to attend the HS Athletics meeting on Sunday, our athletic director Mr. Beebe assured families that our coaches are committed to ACS!  He encouraged athletes and families to stand together with us.  Interscholastic sports help to provide a school's "heartbeat," and we believe that our ACS teams will have the best year ever in 2011-2012!  After some question/answer time, Mr. Oleson explained that every day this week we have had new families seeking tours and deciding to enroll... confident that Aurora Christian School will survive and thrive!  We believe that ACS - across the board - will have the best year ever in 2011-2012! 

Here are the facts regarding IHSA participation that Mr. Beebe clarified:

  • Athletes MUST be enrolled in Aurora Christian School in order to participate in any organized summer sports practices.
  • Enrolled student-athletes MAY participate in summer "contact days" without jeopardizing transfer eligibility.
  • Transfer eligibility is only forfeited after attending the first day of classes in August!
  • Student-athletes are eligible to attend/participate at private schools within a 30-mile ("as the crow flies") radius of their homes.  If Aurora Christian School physically relocates and this rule affects any athletes, Mr. Beebe will work with the IHSA Director and individual families for resolution.

I will continue to send Wednesday e-mail updates, and hope to have more information next week.  Following our self-imposed June 30 school location deadline, you should have adequate time to make informed decisions for your family.  Check out Aurora Christian School on Facebook to see encouraging notes from teachers and parents; and please join us for prayer and praise tomorrow night at 7:00pm in the theater!

Have a great night,

Miss House

 

 
 

 

 
 

 
Thursday, June 2, 2011
 
Dear ACS Family,
 
We had a great turnout for our All-School Finance Update last night!  I know that many families were unable to attend the meeting, and I want to make sure that you have all the important facts!  Tomorrow we will post a video of the Wednesday night meeting on the school website.  If you'd like to hear everything first-hand, go to the Superintendent page under the About Us tab. 
 
I opened the evening with the information contained in this Memo.  Our financial advisors, Jay Schuette and Nick Calamos, explained details of our bank negotiations.  There was a great time of questions & answers, and Mr. House shared his heart.  Families reluctantly retrieved their tuition deposit checks, and the overwhelming sentiments were unity and a desire to "stand together as ACS."  So many parents encouraged me and each other to make prayer a priority... the Lord is in control and His plans are perfect! 
 
The following information was shared on Wednesday night:
 
Please don't believe all of the rumors you may have heard!  ACS is NOT closing.  We will have school in the fall!  Aurora Christian School exists because of Christian teachers and families committed to working together for the education of our children.  Our faculty and staff are committed to moving forward.  We feel called to educate your kids and lead them toward Christ, and if you - our school families - stand with us, we will move forward together! 
 
The primary financial strain is that we have an $18 million debt from the development of the Sullivan campus.  Due to the commercial real estate market, our property values have dropped from over $30 million to around $6 million!  So our current property values no longer secure the collateral for our debt.  Over the last few years we have trimmed operating costs by over $1 million annually.  We are operating responsibly, but there is no way that tuition and fundraising can cover the costs of our large loan.  We must find a way to reduce our overall debt.  Our financial team has developed a proposal to restructure our debt and are in negotiations with Fifth Third Bank.  Fifth Third has been a great ally; they loaned us the funds to develop this beautiful campus, enabling us to provide Christian education on this property for the last 7 years. The proposed plan will not only help ACS achieve long-term financial stability, but should also help the bank as they work with us on a restructured loan.  
 
Our priority is to achieve long-term financial health.  Remaining on this Sullivan campus is our desire!  But we are proactively planning in case that isn't possible.  If we must allow the bank to foreclose on this campus, we will move to an alternate location.  We have been researching locations and have some excellent options.  If the Lord moves us in that direction, we should be able to release more details by the end of June. 
 
Aurora Christian is moving forward!  But we are taking several steps for your financial safety! 
 

Tuition Deposits

We have not deposited any 2011-2012 funds into ACS bank accounts due to our continued bank negotiations.  As those negotiations become more difficult, we do not want to jeopardize your money.  With your financial security in mind, we are returning all tuition deposits to families!  Your enrollment stands firm!  We hope that you will hold your check and return it when our negotiations stabilize. 

FACTS Tuition Payments

We have authorized FACTS to continue tuition payment draws.  Payments drawn by FACTS Tuition Management are held in escrow by a third party vendor.  Those funds will not be transferred to ACS bank accounts until negotiations are complete and accounts are secure.  

Family Choice

If your family chooses to withdraw from ACS prior to August 1, your tuition payments will be fully refunded.  Official withdrawal forms are available in the school offices.  (Following withdrawal, if a family chooses to re-enroll, 2011-2012 tuition rates will apply and prior TAP awards will be null and void.)

 
We hope that every family will choose to move forward with us.  The strength of our programs and our school depends on our ability to plan for next year and staff appropriately.  Our faculty are amazing and committed, but teacher contracts cannot be renewed until we have a solid idea of our enrollment needs! 
 
We expect to have more answers within a few weeks.  However, regardless of the status of our bank negotiations, we will make a decision regarding school location by June 30.  I will send a Memo update each Wednesday to keep you in the loop.  I will also host a time of "prayer, worship, and update" each Thursday night in June at 7:00pm in the theater. 
 
Our God is an AWESOME God!  I have a peace that passes understanding... I believe that He will sustain Aurora Christian School.  Please join me in praying boldly for the Lord's provision - He can accomplish more than we could ever even ask or imagine!!  
 
Collette House
Superintendent
 
 
***Our athletic director Dan Beebe (along with many of our coaches) will be conducting an athletics meeting this Sunday, June 5, at 4:00pm in the theater to answer any questions you have about interscholastic sports.
 
 
 
 
 

ACS All School Finance Update 6/1/11 from dan on Vimeo.
Saturday, May 28, 2011
 
Dear ACS Family,
 
Thank you so much for your continued prayers and support of Aurora Christian!  I hope that you are planning to join our board, finance team, and me on Wednesday night at 7:00pm for a full financial update. 
 
As you know, we are in continued negotiations with Fifth Third Bank.  Unfortunately, as is usually the case, negotiations get very difficult before they fully resolve.  You may have seen an article in the Beacon News about Fifth Third filing a lawsuit against ACS.  That action occurred a few weeks ago and was part of what "intensified" the bank negotiations.  A reporter was digging for a story at the County Clerk's office, and ran across the dated paperwork.  When she left a message last night for a response, I was busy with graduation details and our financial advisors were occupied with weekend family commitments. 
 
ACS has traditionally financed summer operations with a revolving line of credit.  Renewal/repayment of this line of credit is part of a big picture debt restructuring plan that has been proposed to the bank.  Because our negotiations are still in process, the line of credit issue has not been resolved.  Fifth Third filed a summons with Kane County, which is a common negotiation tactic.  Our finance team and attorney have addressed this legal action and it remains an item of discussion within the larger debt restructuring proposal. 
 
Please continue to trust the direction of our board and finance team as they manage the complexities of our current financial negotiations.  We look forward to sharing with you in person on Wednesday night.  Above all else, please continue to pray and trust the Lord that Aurora Christian School is in His hands!
 
Have a great weekend,
Miss House
 
 
 

 

 

Friday, April 1, 2011
In my last Super News, I included a note from the Board of Directors that promised financial updates as we move forward.  In this new Memo, I'll give updates on our communication with the bank and provide answers to some frequently asked questions.
 
As we have communicated over the past few years, Aurora Christian School has been operating under significant financial pressures.  Our board, finance committee, and financial advisors (including former finance committee members) are currently working with the bank on a long-term plan to reduce our high interest rates and sizable debt.  As we engage in consistent communication with our lender for a permanent solution, there are details and negotiations that take time.  We thank you for your patience and urge you to continue standing with us through the process.  The end goal is to leverage our assets and restructure our debt to ensure a healthy future for ACS! 
 

Tuition Deposits

We are continuing to review our business practices and have implemented many new policies and procedures over the last two years.  A common practice for private schools is to begin to use tuition deposit money for next school year as operational cash during the remaining months of this school year.  We plan to reverse that trend at ACS. 

We are pledging to reserve 2011-2012 tuition funds for next school year's operations.  To protect all tuition dollars, our financial advisors have counseled us to hold 2011-2012 tuition deposits until bank negotiations are complete.

If you have questions about your tuition deposit, feel free to call our Finance Office at 630-264-3868.

Tuition Management

Next week we will be "finalizing" FACTS tuition management accounts. All ACS families must register online with FACTS tuition management. 

Please register ASAP so that our finance personnel can move forward with setup for next year. As soon as your acount is "finalized", you will receive a welcome letter from FACTS.

 

$100 Grand Challenge

Thank you so much for your continued support through monthly giving.  We've received some new gifts over the past few months!  If you were unable to participate in December but would like to jump on board, please contact us.

YTD Received: $271,100.18