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District 204 officials considering 4.48% increase in property tax levy

Indian Prairie Unit District 204 officials are considering a 4.48% increase in the district's property tax levy that will be collected in 2023.

Chief School Business Official Matt Shipley offered the tentative request during Monday's presentation to the school board. Shipley told board members the levy is consistent with the $402 million budget approved in August.

The levy, Shipley said, would represent about a $223 annual increase in property taxes for the owner of a $300,000 home.

District 204 is the state's fourth-largest school district and serves portions of Aurora, Bolingbrook, Naperville and Plainfield.

Shipley told board members the levy increase for operating funds is limited to the Consumer Price Index or 5%, whichever is lower, plus an allowance for new property within the district. While the CPI average for the last 10 years has been 1.95%, it's now above 5% for the first time in decades.

"Part of the reason we've spent a lot of time talking about this levy and its impact at prior meetings is this is the first time in many years that CPI number has been that high," said Shipley, who said the levy numbers are based on the 7% CPI in 2021. "That's the first time that CPI has been above 5% since the (Property Tax Extension Limitation Law was introduced in 1994)."

While homeowners would see a 5% increase in their property tax bill for operating funds, a .52% decrease in bonds and interest would create the overall property tax increase of 4.48%. The district is scheduled to make its final bond payment at the end of 2026.

The remaining levy increase for operating funds will be assessed on new property.

Property taxes make up 77% of the district's total revenue, according to district officials, and it's the only revenue source tied to CPI. Shipley said state and federal revenue hasn't kept up with the CPI increase.

The adoption of the tax levy is expected at the Dec. 5 board meeting. Several board members on Monday expressed support for increase.

"We're dealing with a high CPI, we also have increased transportation expenses ... we also have new contracts with our unions," said board President Laurie Donahue. "With all of that said, we've given budget presentations in the past, and I also am supportive of this levy."

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