Dist. 41 continues reviewing property tax levy

The Glen Ellyn Elementary District 41 school board continues to crunch numbers as they try to make their "best guess" in what they expect the district will collect in property taxes.

Superintendent Paul Gordon says he strongly supports a proposed 3.49 percent levy increase, which would generate $43.91 million in property taxes to pay for operations in the 2016-17 school year. He also cautioned that he's talked with state lawmakers who have raised the possibility of a two-year property tax freeze pushed by Gov. Bruce Rauner. That freeze would apply to the dollar amount the district receives, not the tax rate, school finance officials say.

"What I've heard on a consistent basis was this is a big showdown between Gov. Rauner and Speaker (Michael) Madigan," Gordon said.

The school board has publicly posted the proposed 3.49 percent levy increase, a move that sets a ceiling. That means the board could either approve or lower the proposed levy. The district has to file their levy request with the DuPage County's clerk office by Dec. 29.

No matter the final amount approved by the board, the district will seek more than what's allowed under the state's property tax cap to capture revenue from new construction.

"If we don't ask for it, we don't get it," said Becky Allard, interim assistant superintendent for finance and facilities.

Under state law, the district can raise the levy by 5 percent or the rate of inflation, whichever is less. In this case, it's the latter of the two, with a .8 percent rise in the Consumer Price Index for urban consumers.

"Effectively, we're in a freeze already," board President Erica Nelson said.

Though she won't have the final numbers on new construction until the spring, Allard anticipates a levy that would likely grow 1.96 percent and raise $43.26 million.

Board member Kurt Buchholz, however, said the district should reduce revenue and "force staff into making the necessary cuts and look creatively at how to do that."

"Unless you start to have that conversation I'm not sure that we have the gumption as an entire group to make any cuts," he said.

Board member and finance committee Chairman Joe Bochenski said he wants to look at the impact of the village's tax increment financing districts, where property tax money going to schools and local governments is frozen for 23 years and any property taxes raised above that go back into development.

Allard also encouraged the board to adopt a formal policy on how much to bank in the district's reserves "to solidify its intention." The district has a procedure in writing with steps to take if reserves fall above or below 25 percent of operating funds.

The board will hold a public meeting where taxpayers can weigh in on the levy at 7:15 p.m. Dec. 14. Then the board will vote to adopt the levy.