Board eyes break for taxpayers
Grayslake Elementary District 46 board members Monday night were debating whether to authorize a financial maneuver that would save taxpayers money.
At issue was an extra $6.9 million collected after voters approved a tax increase in 1999. A Daily Herald investigation last year found the Grayslake elementary system was one of 66 suburban school districts that used loopholes to collect more tax money than allowed.
District 46 board members at Monday's meeting considered whether to reduce annual interest payments by $390,000 annually by shifting the extra $6.9 million that was gained into an escrow account until 2024.
Liz Hennessy of William Blair and Co. said a reduction in the interest payments on district debt would roughly translate into $504 in savings over the next 17 years for an owner of a $200,000 home.
Jill Rohrer was among the District 46 board members who favored the financial maneuver that would provide a slight break to taxpayers.
"The issue is the board took money that it should not have taken," Rohrer said.
But board member Mary Garcia said she favored placing the issue before residents in two public forums before holding a final vote. She said some of the $6.9 million could be used for repairs at the district's Frederick School.
"I think, as a taxpayer, I'm not even sure I'd want this (interest reduction) happening if the money can be used for the kids," Garcia said.
Voters granted District 46 permission to borrow about $23.2 million that funded construction of Prairieview and Frederick schools. The district wound up collecting about an extra $6.9 million.
District 46 board President Michael Linder said elected officials are the only ones who represent taxpayers at schools. He added that he objected to Garcia referring to students as a reason not to provide a small savings to residents.
"My conviction is very strong," Linder said. "This 'for the children' stuff is a red herring."
District 46 collected an extra $6.9 million after voters approved a tax increase in 1999. In October 2006, the school board decided to rebate the money over two years.
However, a majority of the seven District 46 board members changed their minds about the tax refund when a second required voted occurred in January.