Kaneland 302 asking for 8.5 percent increase in taxes

The Kaneland school district may ask for 8.56 percent more in property taxes for its operating expenses when it files its 2010 levy. Officials, though, expect to only get about 3.5 percent more.

On Nov. 22, the school board will vote on a proposal to ask for $39.8 million for its 2010 levy, to be collected in mid-2011. Its 2009 tax extension was $36.6 million.

Taxing bodies are limited in how much they can increase property taxes on existing properties to 5 percent or the rate of inflation determined by the Consumer Price Index, whichever is lower. The CPI factor this year is 2.7 percent.

New property is not subject to the tax cap. The district estimates there may be $6 million worth of new property added to its equalized assessed valuation.

It also adds a 5 percent cushion to its request, in case there is more new property than it estimates and it, therefore, could get more money.

The operating-funds levy does not include taxes collected for debt. Another $8.1 million in taxes will be levied to pay principal and interest on the district's debt, .74 percent less than last year's extension.

The district expects the total equalized assessed valuation of property to decrease for the second straight year, this time by 1.33 percent.

A public hearing on the tax levy is set for Dec. 13, with a final vote immediately after the hearing. The levy must be filed with the clerks in Kane and DeKalb counties by Dec. 28.