U-46 aims high with property tax request

Elgin Area School District U-46 plans to ask county clerks for $306 million in property taxes this year - a 20-percent increase from the $257 million collected in 2007.

But it's not likely the district is going to get it all.

To make sure they will get all the funds which they are entitled to, districts typically ask for more than they know they're entitled to, U-46 Chief Financial Officer John Prince said.

If the district does not ask for the maximum amount it can receive in property taxes, it won't get it. And the state will not make up the missing funds, Prince said. "That money would just be lost."

U-46 asked for $267 million in property taxes, plus an additional $38 million to pay off debt.

The biggest increases in the levy come from the education and operations and maintenance funds, which would increase by $35.96 and $3.9 million, respectively.

The transportation fund would increase by $1.2 million and the Illinois Municipal Retirement Fund and the Social Security fund would both increase by $1.02 million. Tort immunity would increase by $901,336; special education by $412,146 and the fire prevention and safety fund by $138,519.

The tax cap law ties the amount taxing bodies - like school districts - can increase collections annually by to 5 percent or the rate of inflation, whichever is less. The inflation rate, Prince said, is 4.1 percent.

The tax cap also allows for additional increases due to new construction coming on line each year. That brings the total expected increase in the levy to 6 percent.

The tax rate would be determined by the amount levied and the equalized assessed value of property within the district.

U-46 will likely see between a 5 and 6 percent increase in the value of taxable property within the district, according to district estimates.

DuPage and Kane Counties will set the final levies and tax rates in April; Cook county by next September. "We'll be watching carefully," Prince said. "We're trying to do a crystal ball analysis and hoping we're on (target)," he said.

A hearing about the tax increase will take place at 7 p.m. Nov. 17 at district headquarters, 355 E. Chicago St., Elgin.

The board will vote on the levy Dec. 8.