U-46 tax bills set for 3-4 percent increase

Residents of Elgin Area School District U-46 should expect to pay 3 to 4 percent more on their property tax bills next year, according to district finance staff.

That should come as no surprise. Property tax increases for suburban school districts are generally limited to the rate of inflation or 5 percent, whichever is less plus tax revenue from new construction. Districts rarely collect less than they are allowed.

“The school district should get 3 to 4 percent more,” U-46 financial consultant Tim Cole said. “On average, the taxpayers will pay 3 to 4 percent more.”

Individual homeowners, however, may see a bigger or smaller increase, depending on how the assessed value of their homes changes next year, Cole said.

An owner of a $300,000 home in Cook County will end up paying about $4,340 this year, according to the latest rates from Cook County. A 3-percent increase means the same homeowner would pay roughly $4,470 next year, or $130 more.

U-46's estimated 2010 property tax levy is $320,458,171, which represents a 17-percent increase over this year's tax extension of $273,268,816. However, the district will not actually collect the full amount; like many taxing bodies, U-46 asks for more than it actually will collect because it cannot get more than it asks for (if new construction, for example, is much greater than expected).

The district should actually receive about 4.7 percent more in property taxes next year because of revenue from new construction, according to finance staff estimates.

The school board took a first look at the 2010 levy this month. The matter is set for a public hearing and final approval on Dec. 6.