Residents in the Trevor-Wilmot Consolidated School District could vote as early as next fall on whether or not to expand Trevor School to house all students in the combined district.

The board voted Tuesday to start preparing for a November referendum. But the specific date and the estimated project cost must still be determined prior to the board making its final decision on whether to put the question before voters.

Currently, Wilmot School, 10720 Fox River Road, houses 4-year-old kindergarten through second grade. Trevor School, 26325 Wilmot Road, houses grades 3-8. The Wilmot site is 10 acres while the Trevor site is 24 acres with an adjacent four acres promised to the district. Plans are to add on to Trevor School and to lease or sell the Wilmot building.

Board president Tom Steiner said that despite the economy, there are several reasons why this is a good time to go to referendum:

— The school district is in good financial shape and its bond rating is good.

— The district may be able to borrow some of the money for construction at zero percent interest, paying only about two points in fees on that principal, under a federal stimulus package program.

Time is of the essence, said Lisa Voisin, a school financial specialist with Robert W. Baird and Co. Voisin recently explained to the board the Qualified School Construction Bonds available through the federal stimulus package.

“All school districts are eligible regardless of size or poverty level,” Voisin said. “But there is only a two-year window here.”

Eligible schools receive a zero percent loan. The lender receives a credit to offset federal taxes in lieu of charging interest on the loan. Voisin said priority consideration is given to school districts that have passed a referendum or a resolution to issue non-referendum debt.

The stimulus-backed loan can be used for new construction, building rehabilitation, land acquisition and the purchase of equipment in the improved space.

The projects must advance one or more of the following goals:

— Enhance science, technology, engineering and math learning.

— Provide for early childhood education.

— Create a “green and healthy” school environment.

— Create “safe and healthful schools.”

District Administrator George Steffen said the identified building program does enhance early childhood learning and would create a more efficient environment. Steffen said he has been in contact with the state Department of Public Instruction representative in charge of granting eligibility.

Given this bond opportunity, Steiner said the passage of a referendum now would have less impact on taxpayers than if the district waits.

“If the electorate passes a referendum in November 2009, the levy will not likely make it to our property tax bills until January 2011,” Steiner said. “By then the economy should be in recovery ”

Steiner said the district’s current referendum debt expires in 2014. It may be possible to modify the payment schedule on the new debt so there is only a small increase in the cost of the debt service.

“We will then extend our debt service about 20 years,” said Steiner. “All the district is planning to do is to replace an existing building with a more efficient structure to reduce operational costs. A building referendum that reduces our operating costs can only help our district remain under our revenue cap.”