District 89 looking at new tax increase

Glen Ellyn Elementary District 89 officials are trying to pin down specifics on a possible tax rate increase next February.

They are looking at borrowing money to replace loans that are set to expire. They also are considering using district reserves to pay $1.7 million for classroom needs.

A final decision is expected to be made next month.

Board members have talked about borrowing between $20 million and $27 million, but are leaning toward the lower amount. To do so, they'd take out a loan for about 15 years to pay for building upgrades and improvements.

Officials also discussed funding $1.7 million worth of educational improvement programs from $3.9 million in district budget reserves over a three-year period. But if the fund balance dips below $2.2 million during that time, which is 10 percent of the annual expenses, officials said they may go to voters for another tax increase.

In 1996, voters approved an $11 million loan that was to be paid off after 12 years. The money has been used for facility upgrades, and the last payment will be made in February 2010.

Superintendent John Perdue said that even though school board members haven't decided whether to ask residents for a tax hike, they're considering renewing an existing levy.

So instead of that levy decreasing by 19 cents in 2008, if approved by voters, the tax rate would remain the same as it's been since a 1996 referendum.

"I would believe that if we can recycle the same 19 to 21 cents that is in our existing levy and renew our debt structure with new projects to continually upgrade and improve our facilities, it tells the community that we're making effective and wise use of our resources without asking the community to contribute more," Perdue said.

Board members this week said that instead of going to voters for the $1.7 million to spend on educational programs, they'd rather use money the district already has in reserve.

On Sept. 10, the board is expected to decide whether there will be a referendum early next year, how much money they'll need, how long the repayment schedule will run and what projects will be included.