Why school districts are taking Mundelein to court

The continuing dispute between Mundelein-area schools and the amount of impact fees charged by the village for residential developments now is in court.

In a letter to the community Tuesday, the school boards of Fremont Elementary District 79 and Mundelein High School District 120 said they jointly have filed suit against the village in Lake County circuit court.

The school districts contend fees approved by the village for the pending Walnut Ridge subdivision don’t reflect the actual cost to educate a projected 167 new K-12 students — a shortfall of $2 million for District 79 and $1.3 million for District 120.

According to the districts, the village also approved a fee for 165 acres of agricultural property without having a development plan in place, making it impossible to accurately project the financial impact on schools.

“We are taking this action to ensure that new developments pay their fair share, preventing a massive financial burden from shifting onto existing taxpayers and school resources,” community members were told.

School officials have said such shortages can result in increased class sizes, reduced programming or higher taxes.

Village officials say their arguments and position remain consistent and comply with Illinois law while the schools' wishes are not supported by law.

“The concerns of both school districts have been heard repeatedly in multiple public forums; the village just disagrees with the schools’ conclusions,” Village Administrator Eric Guenther said in a statement.

Guenther said the village ordinance is based on a standard formula recognized by the highest courts. The developer of Walnut Ridge, he added, agreed to voluntarily increase their contributions to schools above what’s required by the formula.

“The schools say that still is not enough and wanted a considerably higher amount,” Guenther said. “It is a shame that this is the continued focus,” he said, adding the village is confident in its position and welcomes the opportunity for the court to weigh in.

The village enacted a new school impact fee in April 2025. In November, the village annexed the 80-acre Walnut Ridge property near the southwest corner of Route 83 and Winchester Road as well as 167 adjoining acres needed to make the site contiguous to village property.

The lawsuit, according to the school districts, focuses on the annexation of those two parcels they say allow for high-density residential development that will increase enrollment.

They say the fees are arbitrary and not based on costs attributable to the new development as required by state law.

“While we are pursuing legal clarity, we view this as a principled disagreement between neighbors that requires a neutral third party to resolve,” the districts said in the message to residents.