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Lee County Board weighs pros, cons of proposed legislation to dissolve township government

Lee County Board weighs pros, cons of proposed legislation to dissolve township government

Yahoo27-03-2025

Mar. 27—DIXON — The Township Officials of Illinois' legislative chairman urged the Lee County Board at its meeting March 20 to oppose four bills that would dismantle many township governments across the state.
Arnold Vegter, who also is the road commissioner for Union Grove Township in Whiteside County, told the board that the TOI has been working with the Illinois Association of County Board Members along with other local government organizations to oppose SB 2504, SB 2217, HB 3581 and HB 2515, which were introduced in early 2025.
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The South Dixon Township building as seen Wednesday, March 26, 2025. The state legislature has introduced four bills that would dismantle many townships across the state. (Alex T. Paschal)
All four bills "are very vague," Vegter said.
"The township situation is going to be, or is, if I'm not mistaken, already a headache. There's a lot of questions and a lot of controversy," Lee County Board member Mike Koppien said.
SB 2217 dissolves all townships with a population of less than 5,000. It must either consolidate with an adjacent township or the county. Similarly, HB 2515 dissolves all townships with a population of less than 500.
HB 3581 eliminates road districts less than 15 miles and SB 2504 gets rid of all township tax assessors in counties with a population of less than 50,000. In both cases, that duty would fall to the county.
Lee County has a population of about 33,544, according to July 2024 U.S. census data.
There are 22 townships in the county, which collectively totals about 967 miles of roadway jurisdiction. If these bills were to pass, all townships aside from Dixon Township would be eliminated.
"Most counties have told us they don't want it," Vegter said. "There's no way a county could take over all of the township roads and do it as effectively as townships do."
"It could end up being a very costly venture," Koppien said.
Lee County Highway Department engineer Dave Anderson estimated that it could cost the county $300,000 more a year in labor than what the townships spend.
Vegter said that according to one of the bills, the county could only levy 25% of what the townships levy, meaning the county "would take all the township roads and you'd only get 25% of our money."
Aside from the roads, the county also would have to pick up general assistance and take care of township cemeteries, Vegter said.
However, not everyone was opposed to the idea of dismantling townships.
Board member Chris Norberg referred to SB 2504, which would get rid of township tax assessors, and said, "I'm firmly a believer in that we need to get rid of multi-township assessment and township assessors — at least here in Lee County [simply because] we don't have enough qualified people."
After the April election, the county only will have one elected township assessor, Norberg said. "The assessment ... is already being done by the county."
"We do know that is a problem," Vegter said. "That is a problem statewide."
Still, "it's hard to get rid of one organization, one department," he said.
These bills aren't specific enough to successfully do that, he added.
The board didn't vote to take any action on opposing or supporting the bills, but other nearby counties have voiced their opposition.
The Ogle County Board voted unanimously March 18 to oppose the bills after two board members argued that they would create more expenses rather than saving money.
At Whiteside County's Coloma Township board meeting March 19, Supervisor Kristine Dobbs said there will be a resolution to oppose the consolidation of townships at the annual town hall meeting at 6:15 p.m. April 8.
"Township government is the government closest to the people," Coloma Road Commissioner Ruthie Rogers said in an interview with Shaw Local.
Rogers said her hope would be that if the bills were approved, Coloma would be absorbed by another township and remain a township.

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The conference call can be accessed live over the phone by dialing 1-877-407-0789, or for international callers, 1-201-689-8562. A replay will be available two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13752832. The replay will be available until Wednesday, May 21, 2025. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of TOI's website at About The Oncology Institute, Inc. Founded in 2007, TOI is advancing oncology by delivering highly specialized, value-based cancer care in the community setting. TOI offers cutting-edge, evidence-based cancer care to a population of approximately 1.9 million patients including clinical trials, transfusions, and other services traditionally associated with the most advanced care delivery organizations. 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"Risk Factors" section of TOI's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 26, 2025 and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that TOI currently is evaluating or does not presently know or that TOI currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect TOI's plans or forecasts of future events and views as of the date of this press release. TOI anticipates that subsequent events and developments will cause TOI's assessments to change. TOI does not undertake any obligation to update any of these forward-looking statements. 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TOI defines Adjusted EBITDA as net (loss) income plus depreciation, amortization, interest, taxes, non-cash items, share-based compensation, goodwill impairment charges, change in fair value of liabilities, unrealized gains or losses on investments and other adjustments to add-back the following: consulting and legal fees related to acquisitions, one-time consulting and legal fees related to certain advisory projects, software implementations and debt or equity financings, severance expense and temporary labor and recruiting charges to build out our corporate infrastructure. A reconciliation of Adjusted EBITDA to net loss and Free Cash Flow to net cash flow used in operations, the most comparable GAAP metrics, is set forth below: Free Cash Flow Reconciliation Three Months Ended March 31, Change (dollars in thousands) 2025 2024 $ % Net cash and cash equivalents used in operating activities $ (4,988 ) $ (15,883 ) $ 10.895 68.6 % Cash paid for interest 1,290 1,134 156 (13.8 )% Purchases of property and equipment (328 ) (610 ) 282 46.2 % Free Cash Flow $ (4,026 ) $ (15,359 ) $ 11,333 73.8 %Adjusted EBITDA Reconciliation Three Months Ended March 31, Change (dollars in thousands) 2025 2024 $ % Net loss $ (19,585 ) $ (19,888 ) $ 303 (1.5 )% Depreciation and amortization 1,784 1,489 295 19.8 % Interest expense, net 5,570 1,985 3,585 180.6 % Non-cash addbacks(1) (163 ) (39 ) (124 ) 317.9 % Share-based compensation 1,458 4,087 (2,629 ) (64.3 )% Changes in fair value of liabilities 3,352 — 3,352 100.0 % Unrealized (gains) losses on investments 6 (82 ) 88 (107.3 )% Post-combination compensation expense(2) 13 130 (117 ) (90.0 )% Consulting and legal fees(3) 332 176 156 88.6 % Infrastructure and workforce costs(4) 2,124 1,185 939 79.2 % Transaction costs(5) — 18 (18 ) (100.0 )% Adjusted EBITDA $ (5,109 ) $ (10,940 ) $ 5,831 (53.3 )% (1) During the three months ended March 31, 2025, non-cash addbacks were primarily comprised of non-cash rent of $(163). During the three months ended March 31, 2024, non-cash addbacks were primarily comprised of net credit losses of $12 and non-cash rent of $(51). (2) Deferred consideration payments for practice acquisitions that are contingent upon the seller's future employment at the Company. (3) Consulting and legal fees were comprised of a subset of the Company's total consulting and legal fees, and related to certain advisory projects during the three months ended March 31, 2025. During the three months ended March 31, 2024, these fees related to advisory projects and software implementations. (4) Infrastructure and workforce costs were comprised of recruiting expenses to build out corporate infrastructure of $277 and $376, software implementation fees of $0 and $16, severance expenses resulting from cost rationalization programs of $140 and $10, temporary labor of $180 and $252, and legal fees related to infrastructure build out of $782 and $529 during the three months ended March 31, 2025 and 2024, respectively. (5) Transaction costs incurred during the three months ended March 31, 2024 were comprised of consulting, legal, administrative and regulatory fees associated with non-recurring due diligence Business Metrics Three Months Ended March 31, (dollars in thousands) 2025 2024 Clinics(1) 81 87 Markets 18 14 Lives under value-based contracts (millions) 1.9 2.0 Net loss $ (19,585 ) $ (19,888 ) Adjusted EBITDA (in thousands) $ (5,109 ) $ (10,940 ) (1) Includes independent oncology practices to which we provide limited management services, but do not bear the operating Balance Sheets (Unaudited)(in thousands except share data) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 39,739 $ 49,669 Accounts receivable, net 49,320 48,335 Other receivables 346 346 Inventories 12,308 10,039 Prepaid expenses and other current assets 5,107 4,029 Total current assets 106,820 112,418 Property and equipment, net 11,116 11,888 Operating right of use assets 24,209 25,782 Intangible assets, net 14,036 14,810 Goodwill 7,230 7,230 Other assets 591 589 Total assets $ 164,002 $ 172,717 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 29,291 $ 24,324 Current portion of operating lease liabilities 6,816 6,798 Accrued expenses and other current liabilities 23,434 21,093 Total current liabilities 59,541 52,215 Operating lease liabilities 21,596 23,223 Derivative warrant liabilities 59 17 Conversion option derivative liabilities 3,694 385 Long-term debt, net of unamortized debt issuance costs 73,894 93,131 Other non-current liabilities 117 125 Deferred income taxes liability 32 32 Total liabilities 158,933 169,128 Stockholders' equity: Common Stock, 0.0001 par value, authorized 500,000,000 shares; 90,661,800 and 77,470,886 shares issued and outstanding at March 31, 2025 and 77,470,886 shares issued and 75,737,112 shares outstanding at December 31, 2024 9 8 Series A Convertible Preferred Stock, 0.0001 par value, authorized 10,000,000 shares; 202,278 shares issued and outstanding at March 31, 2025 and 165,045 shares issued and outstanding at December 31, 2024 — — Additional paid-in capital 236,477 215,413 Treasury Stock at cost, 1,733,774 shares at March 31, 2025 and December 31, 2024 (1,019 ) (1,019 ) Accumulated deficit (230,398 ) (210,813 ) Total stockholders' equity 5,069 3,589 Total liabilities and stockholders' equity $ 164,002 $ 172,717 Consolidated Statements of Operations (Unaudited)(in thousands except share data) Three Months Ended March 31, 2025 2024 Revenue Patient services $ 53,068 $ 52,453 Dispensary 49,293 39,679 Clinical trials & other 2,045 2,534 Total operating revenue 104,406 94,666 Operating expenses Direct costs – patient services 47,080 49,497 Direct costs – dispensary 39,863 32,809 Direct costs – clinical trials & other 214 391 Selling, general and administrative expense 25,376 28,452 Depreciation and amortization 1,784 1,489 Total operating expenses 114,317 112,638 Loss from operations (9,911 ) (17,972 ) Other non-operating expense (income) Interest expense, net 5,570 1,985 Change in fair value of derivative warrant liabilities 43 — Change in fair value of conversion option derivative liabilities 3,309 — Other, net 752 (68 ) Total other non-operating loss 9,674 1,917 Loss before provision for income taxes (19,585 ) (19,889 ) Income tax expense — — Net loss $ (19,585 ) $ (19,889 ) Net loss per share attributable to common stockholders: Basic $ (0.21 ) $ (0.22 ) Diluted $ (0.21 ) $ (0.22 ) Weighted-average number of shares outstanding: Basic 77,098,825 74,234,287 Diluted 77,098,825 74,234,287 Consolidated Statements of Cash Flows (Unaudited)(in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net loss $ (19,585 ) $ (19,889 ) Adjustments to reconcile net loss to cash and cash equivalents used in operating activities: Depreciation and amortization 1,784 1,489 Amortization of debt issuance costs and debt discount 4,874 1,559 Share-based compensation 1,458 4,087 Change in fair value of liability classified warrants 43 — Change in fair value of liability classified conversion option derivatives 3,309 — Unrealized (gain) loss on investments — (85 ) Accretion of discount on investment securities — (324 ) Loss on disposal of property and equipment — 12 Changes in operating assets and liabilities: Accounts receivable (985 ) (16,400 ) Other receivables — 183 Inventories (2,269 ) 2,124 Prepaid expenses (1,078 ) (629 ) Operating right-of-use assets 1,447 1,753 Other assets (2 ) (7 ) Accounts payable 5,057 6,357 Operating lease liabilities (1,609 ) (1,399 ) Accrued expenses and other current liabilities 2,567 5,368 Other non-current liabilities 1 (82 ) Net cash and cash equivalents used in operating activities (4,988 ) (15,883 ) Cash flows from investing activities: Purchases of property and equipment (328 ) (610 ) Proceeds from asset disposition 126 Sales of marketable securities/investments — 19,998 Net cash and cash equivalents (used in) provided by investing activities (202 ) 19,388 Cash flows from financing activities: Proceeds from private placement, net of offering costs 15,359 — Payments made for financing of insurance payments (226 ) (1,002 ) Principal payments on long-term debt (20,000 ) — Principal payments on financing leases (10 ) (9 ) Common stock issued for options exercised 137 73 Net cash and cash equivalents used in financing activities (4,740 ) (938 ) Net (decrease) increase in cash and cash equivalents (9,930 ) 2,567 Cash and cash equivalents at beginning of period 49,669 33,488 Cash and cash equivalents at end of period $ 39,739 $ 36,055 Contacts Media The Oncology Institute, Virnich, MDdanielvirnich@ 735-3226 x 81125 Investors Solebury Strategic Communicationsinvestors@

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