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Elementary S teachers will rec salary increase result of a new signed June 14. In 1984-85, the contract, compel creased by 5 perc percent dependin fftftd and Orleans drive is nearing completion and an occupailcy permit for one if the throe buildings is ex- meted thfa month Full occt̂ an ̂ ti projected for September. The projecthes been in the hopper since 1678 when this five-plus acre pared was Slattid for multi-family development. Since that time, the project changed in nature from an apftrtment complex to a Section 1 housing project, administered by the Illinois Housing Development Authority (IHDA) and subsidised by me feaerai government. The shift was nsc--sry because p ro j ec t d eve lope r sunab l e to After our return for the third con- secutive year from a small Minnesota town we had ooee called a second home, our conclusion is that vacations are memorable not only lor the highlights. Most times it is unim­ portant moments that bring small pleasures and sometimes a chuckle long after thejuitcaae is unpacked. Small towns aft unique most often for what is misting than for what is offered. This year it was a bed race with two entries that brought a fair died crowd to the streets. In MeHenry, the undecorated en­ tries could have slipped by unnoticed. Many would have voiced their displeasure. But residents of this little mklwtetern town ftmrrvH not at dB irritated for having given up time on a Saturday afternoon for an event that was aU but nonexistent The answer is probably that there was littte else to do anyway. Wenever foil to be impressed by the friendliness of people who apparently don't see strangers in their town on a daily basis. A HOck long walk in the business district is awe to bring forth three or four "beBos* from shoppers. Enroute hone, still in Minnesota, there wa»flM§|Banpeamnce of a black shutters pqlled, drawn by a lively horse. They were making their way up a gravel road beside the freeway, apparently enroute to church. ' . Another look disclosed two more buggies, each marked with the slow moving vehicle ggn on the back 5 Contest Seven-year-old Becky Gilmore of Greenwood is winner of the 1963 "My Dad's the Greatest" contest sponsored by the MeHenry Plalndealer. She believes it sincerely and said so in a manner to convince the judges. As a result of winning, Becky will receive tickets for her family to attend Great America. In large letters she wrote: "My Dad's the greatest because he is a good artist He cndls with me in his lap. I wach monstr movies wih him. He is great at video games. It tikis when he ldss me. He flsis my brotkin toys. He maeks claey monstr. I reele lick my dad." Becky's father formerly taught Art in the Montini Middle school for one year. Her mother, Louise, has been a second grade teacher at Bush elementary school, Johnsburg for the past 1 STAFF PHOTO-WAYNE GAYLORD By Marion Olsen School District 15 receive a 5.4 percent for 1983-84 as the two-year contract second year of the compensation will be in- 5 percent, 5.5 percent or 6 on the inflation raie. After the school board unanimously approved the 32-page agreement, Board President Karen Salman and MCTA President Pat Lybarger signed the document for their respective groups. The contract, reached after five negotiating sessions, had been ap­ proved about 10 days earlier by the MeHenry Classroom Teachers' association, according to Arthur T. Newbrough, board Negotiations committee chairman. Other matters negotiated involved increases in extra duty stipends, changes in sick leave and association leaves, clarification of personal business days off, and modifications in insurance coverage. t Mrs. Salman commended the teachers on the professionalism of the negotiations and Newbrough noted the contract was "a very fair and reasonable agreement." Mrs. Lybarger thanked the board and said she had enjoyed working with the Negotiations committee. In other business, Supt. Richard Farmer reviewed the Illinois State Board of Education's Recognition and Supervision visitation. He said the school district was commended on preparedness, the excellence of the computer education program, use of Title programs, response to previous visit recommendations and curriculum guides. Four areas of non-compliance were questioned. Three, dealt with junior high school guidance, life safety paperwork and student permanent record cards. These items will be easily corrected, according to Far­ mer. The fourth item noted non­ compliance with a state statute requiring daily physical education classes. P.E. classes have been reduced due to budget limitations, but an effort will be made to incorporate daily P.E. without adding more staff, Farmer said. Turning to other matters, Dr. Farmer and assistant Supt. Dan DeRoche described the proposed Sullivan Lake' annexation to the village of Lakemoor and the impact on District 15 At Press Time The 546-acre development involves five school districts because of its location on the western edge of Lake county. The developer is offering District 15 a donation of 5.197 acres of land for school construction, or a flat donation of $51,970 ora per unit donation of $28 based on 1,855 dwelling units as they are built. The donation conforms to Lake county subdivision regulations. The board agreed to send ad­ ministrative staff and legal counsel to the June 20 hearing for input and information. In other action, the board approved: -Cafeteria price changes, including a 10 cent increase on lunches, for 1963- 84. --A teacher job performance evaluation policy. -A substitute teacher salary policy change. --Building maintenance supply contracts totaling $9,067.84. -An increase from $12 to j$13 on custodial overtime rates for building rentals. 10 Percent Interest Tax "Up For Grabs" THE MCHENRY PLAINDEALERI '•SERVING THE CHAIN-O-LAKES REGION SINCE 1875" • VOLUME .107 NUMBER 91 FRIDAY, JUNE 17, 1983 1 SECTION 20 PAGES 25' Government Apartment Complex Due Soon . for the-Ppprfon<wl* ' light of the housing market In 1974, the Section 8 program was devised when Congress passed the Housing and Community Develop­ ment act. The law provided federal housing (rent) subsidies and development financing from one to two percent below market interest rates. Skyrocketing interest rates in years placed -the Section 8 cost well above what was ted, and has led to a icnt to eliminate the program. Under the program, rents charged for the housing are designed to cover construction and maintenance costs as well. The result tends to be ar­ tificially high rents, especially when Compared to indigenous housing charges. At the McHenry Hillcrest complex, a one-bedroom apartment is slated to go for 8585 per month, two bedrooms at $684per month and three bedrooms at $813 per month. "Cutest Baby" Contest Opens One of the most popular events held in conjunction with Fiesta Days is thie "Cutest Baby" contest which is opening its sixth year next week. The sponsor is the McHenry Junior Women's Civic aroun. , Voting will take place by coin donations at the display board, which will be placed with cooperating merchants and at certain public locations during Fiesta Days. The winner and four runners-up will be determined by the amount of cash donations that have been cast as votes. Funds collected will be used to assist activities selected by the jgonsoring^ymip ĵMumelyvFESH, the Recnsation^he McHenry Public library, the McHenry and Johnftburg Rescue squads, and MeHenry ital. will be the first 20 eligible entries received on June 22 or later. To be eligible, a child must be on? year or younger by June 1, 1963. Two photos of the child must be submi t t ed , one wa l l e t s i z e f o r newspaper reproduction, aind one 5x7 for use on a display board. Professional photos are necessary for newspaper reproduction. The name, address and phone number must be on the bade of the photo, along with the date of birth. Entries should oe mailed to Cutest Baby Contest, care of the McHenry Junior Women's Civic Group, P.O. Box 163, McHenry, 111. MARA WW. -* y . . v . "The fact of the matter is that no project could have been started at that time without HUD (federal Department of Housing and Urban Development) and the developer putting in a whole lot of money," said Mary Messer, of the Chicago office of IHDA. She also said that any return on the developer's equity had to be put into the project. In return for the agreement not to take any return on equity and the up-front money, HUD increased the rents to cover the cost of financing. In the case of the Hillcrest complex, the interest rate was 14 percent and the construction was about $3,906,000. The housing assistance plan is geared toward low to middle income families. Maximum income levels are set depending on the number of people in the family. Above that level, if someone were to rait the apartment, they would have to pay the full charge. Those qualifying for assistance pay one-third of their monthly income. All income is included--wages, social s . ~ r - security, public aid and interest on savings. The balance of the rent is federally subsidized and paid directly to the landlord by the housing authority. According to IHDA consultant Donald Rose, in Springfield, the maximum income levels for McHenry Hillcrest are $17,600 for one person, $20,100 for two, $22,600 for three, $25,100 for four, $26,700 for five and $28,250 for six people. IHDA and HUD regulations prohibit more than six people in a three-bedroom apartment. The Section 8 program has come under fire because of the rents charged, with the difference being made up by taxpayers and the tax shelters afforded the developers. Federal regulations limit the amount of return at six percent. Ms. Messer said the tax shelters available to developers in the Section 8 program are much the same as those available to an investor in a conventional project on income- producing property. The tax write- (Continued en page IS) by Anthony Oliver The Senate battle to repeal the 10 percent tax on interest and dividends is coming to a head with action ex­ pected late this week. McHenry First National Bank President Ronald Graves commented Thursday, "It's still up for grabs." Both houses of Congress face the repeal of the dividend tax as a result of a groundswell of public opposition, spearheaded by the financial in­ dustry. Thomas Bolger, president of the McHenry State bank, said that even though both houses had passed repeal measures of some kind, the issue was still not finalized. Bolger also pointed out that, as it stands now, the tax will go into effect July 1. In Washington, Senate Republicans are split into two factions concerning tfie issue. Those favoring straight repeal are led by Sen. Russell Long (D., La.). He favors quick passage of the straight repeal sent to Senate by the House a month ago. On the other side, are Senators Robert Dole (R., Kan.) and Robert Kasten (R., Wis.) who are pushing for a compromise plan. The plan would strengthen compliance with taxes on interest and dividends, but it also has a number of amendments which the straight repealists oppose. The repealists say the amendments could cloud the measure's fate in the House of Representatives. Dole is chairman of the Senate Finance committee and Kasten is a former committee chairman. The compromise would impose a 20 percent withholding on people caught in tax violations related, to dividends or interest. In order to gain passage, the plan also has a number of provisions already approved by the Finance committee. These include a reciprocity trade bill, designed to give the president more power to retaliate against foreign unfair trade prac­ tices; enterprise zone legislation to provide special tax breaks for com­ panies in disadvantaged areas; the Caribbean Basin Inititiative to in­ crease stability in 28 Caribbean and South American nations through economic assistance and finally to extend the tax exemption of mortgage revenue bonds beyond the Dec. 31 deadline. A part of the problem is that the Senate is unsure of just what the House will do. According to Virginia Dean, of the Independent Bankers Association (IBA), in Washington, who spoke with a Plaindealer reporter Thursday morning, s there is some question whether Rep. Daniel Rostenkowski (D., 111.) is bargaining in good faith or is just out to make the Republican administration look bad. She noted that the compromise plan, coupled with the short time frame, could give Rostenkowski the leverage he needs to embarrass the Reagan administration. Rostenkowski is chairman of the House Ways and Means committee and of the Joint Committee on Taxation. Ms. Dean said the Republican leadership is actively seeking support for the Dole-Kasten plan and they are confident the support is there. She added, however, it is unlikely that Long would have pushed the* straight repeal issue this far unless he felt there was enough support. President Ronald Reagan said some months ago, and on more than one occasion, he would veto a repeal of the dividend and interest tax. Ms. Dean said he faces certain override in the Democratic House and support is uncertain in the Senate. She added that the president has taken no definitive position to the contrary, regarding the veto. The administration has hinted that it might accept a compromise plan, if it contained provisions (like those in the Dole-Kasten plan) to put teeth into* dividend and interest tax compliance. Off Time The popularity of McHenry's city swimming pool rose markedly early this week whea temperatures topped the 96 degree mark. McHenry Parks Director Pete Merkel said that the mure than 1,666 who used the pool Monday was the highest number to date this year. The pool heids 466, and over the weekend more than that number used the facility each day. There is a daily admission charged, and season passes are also still available by calling 344- STAFF PHOTO-WAYNE GAYLO&D Plalndealer Subscription Offer FREE it TV Guide In Today's Edition Senior Action Line New Offering Pag* 14 Gives 5.4 Percent Increase Teacher-Board Contract - > . . .