Tax hike would rise to fund Kaneland work

The failed proposal that would have cost a Kaneland homeowner $250 in April will cost $300 if a February referendum question passes.

School officials discussed how to pay for $65 million in construction Tuesday night.

When pitched for April, the proposal -- including a new middle school and additions at Blackberry Creek Elementary and the current middle school -- cost $53.2 million.

A huge increase in the price of materials caused the hike in the project's price tag, architects told the board last month.

So homeowners will now be voting on a 30-cent increase per $100 of equalized assessed valuation, as opposed to the 25-cent increase from April.

For the owner of a $300,000 house, the measure means a $300 increase in the first year.

Financial adviser Linda Matkowski told board members they could issue the bonds over three years and keep the district's bond and interest rate constant, at about 87 cents per $100 of EAV.

After four years, that rate would start to drop, which would allow the district to go to voters again without raising that tax rate, she said.

District officials said an increase in the bond and interest rate might be partially offset by a decrease in residents' operating fund rates.

There was a higher than expected increase in assessed value in the district this year, so residents likely will pay less for the operating fund portion of their tax bill, said Tom Runty, assistant superintendent for business.

Most of that increase came from catch-up from Sugar Grove Township homes that had not been on the tax rolls previously, he said.

Matkowski said she lowered the growth expectations in calculating assessed value in the district for the next few years and used conservative estimates throughout the preliminary plan.