Grayslake school board votes to reduce tax burden

A majority of Grayslake Elementary District 46 board members agreed the school system should no longer keep an extra $6.9 million it collected after voters approved a tax increase in 1999.

By a 4-3 vote, the school board late Monday authorized a financial maneuver that'll place the $6.9 million in an escrow account and reduce annual interest payments on debt by $390,000 annually.

With the school district's interest payment reduction, an owner of a $200,000 home might see $500 or so in total savings stretched over the next 17 years, said Liz Hennessy of William Blair and Co., a Chicago-based investment firm.

Grayslake elementary was one of 66 suburban school districts that a Daily Herald investigation last year found used loopholes to collect more tax money than voters approved in a referendum.

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 $6.9 million more than taxpayers authorized.

At a meeting Monday evening, District 46 board President Michael Linder said essentially returning the $6.9 million to residents was the proper course of action.

"The only representatives of the taxpayers in this system is us," Linder told his colleagues.

Jill Rohrer, Susan Facklam and Kristen Coe Peek joined Linder in voting to provide the slight break to taxpayers.

However, board member Mary Garcia said it might have been more prudent to keep the $6.9 million for possible repairs at Frederick School, which serves grades five and six.

Garcia unsuccessfully pushed for the school board host two public forums before making a final decision on the $6.9 million.

"I guess the question is, why can't we wait?" she said.

Mark Hannan, Karen Weinert and Garcia voted against returning the money.

Board members in October 2006 initially decided to refund the $6.9 million over two years, then changed their minds in a second, binding vote in January. Hannan said the District 46 board should not have revisited the issue after a decision seemingly had been finalized.

District 46 serves most of Grayslake and parts of Third Lake, Hainesville, Round Lake, Round Lake Park, Round Lake Beach and Lake Villa.