Tax vote on hold
The Geneva school board Monday put the brakes on any plan to raise the operating tax rate anytime soon.
Although they did not vote on the matter, school trustees unofficially agreed that they want more time and more public input on a proposal to institute a "managed tax rate" of $4.01 per $100 of equalized assessed property value. They worried about their credibility with voters, given that the plan would change a schedule put forth in the master facilities plan adopted last year that told voters an operating tax rate increase request likely wouldn't come until 2011.
"I don't see how it would be possible to educate our public" in just three months, said Trustee Autumn Burns. The referendum question could be put on the Feb. 5 primary ballot.
She also worried that it could cause voters to reject a plan to expand Geneva High School. The district intends to ask for money for that in 2008 or 2009.
Her concerns were echoed by Trustee Kelly Nowak. "I think that (the high school) is the one thing we need to focus on now," she said. Nowak also suggested a tax rate increase be discussed in special community forums before being considered by the school board.
Trustee Bill Wilson didn't object as strongly to the timing: "I don't know if there is ever a good time to go for a tax increase," he said.
If the district doesn't ask in February, the next opportunity is a year from now during the presidential election.
"My biggest concern is funding what we say we want to do," Wilson said.
Board President Mary Stith said she would want more information about what additional programs the money would be spent on before considering a referendum.
"We're willing to think about it, but at another time," she said.
School district residents will receive, in the district's next newsletter, a sheet outlining the difference between lifting the property tax levy cap for operating funds for four years starting with the 2007 tax year (collectible in 2008) and waiting until 2011 to raise the rate, as outlined in the master facilities plan the board adopted in June 2006.
That plan called for three referendums: the April 2007 referendum to borrow money to build two new elementary schools and make improvements at others; the Geneva High expansion referendum; and the 2011 referendum to increase operating taxes.
But a change in state law since that plan was adopted made a managed tax rate plan possible. The district's voters would be asked to increase the rate 1 cent over what they paid for tax year 2006, to $4.01, for four years. Otherwise, school officials say, the tax rate will decline, as assessed values go up and levies are limited by the cap, to an estimated low of $3.46 per $100 equalized assessed valuation in the 2010 tax year.
District 304 is subject to Illinois' property tax levy cap law, which limits increases in tax levies for certain funds to the rate of increase of the consumer price index or 5 percent, whichever is less, unless voters approve otherwise.
Under the question the board was considering, the tax levy extension would be determined by the tax rate, rather than the "otherwise applicable limiting rate calculated under the provisions" of the tax cap law, according to sample ballot language.
Tax: Board says timing not right for referendum