District 15 settles on 15 percent levy hike

It took three separate votes, but Palatine Township Elementary District 15 board members finally settled on a 15 percent increase in the 2008 tax levy.

On Monday, the board approved asking the county for $114 million in property taxes, up from $99 million the district collected last year.

Officials acknowledge there's no way the entire amount will be collected, but it's common practice for districts to ask for more than they're entitled to, according to Assistant Superintendent Rebecca Allard.

Tax cap laws limit property tax increases to 5 percent or the rate of inflation - whichever is less. This year, the district is entitled to the current 4.1 percent inflation rate. Levies are set higher because property tax receipts also take into account money generated from new property.

If the district doesn't ask for the maximum amount it can receive in property taxes, the state doesn't make up for the missing funds.

"We go that way because we don't want to penalize ourselves," said board member James Ekeberg. "We can't look into a crystal ball ... it's not a harmful number."

Though not one resident spoke out against the proposal during a public hearing Monday night, board members Sue Quinn, Kelly Keenan and Tim Millar again argued that 15 percent is too high an increase.

Quinn said she was nervous at potential backlash because most people don't understand school finance. She proposed a "more reasonable" 8 percent levy hike, which was narrowly shot down. A 10 percent proposal also failed.

Officials won't know until August or September 2009 what growth numbers from new construction will be. The tax rate is determined by the amount levied and the equalized assessed valuation of property within the district. In the end, Allard believes the district will receive an increase of just more than 5 percent.

About 80 percent of the budget covers salaries and benefits for the district's 2,100 teachers and staff. The new budget year starts on July 1, 2009.