patching...
Welcome back, Patch Blogger!

D-15 Votes To Raise Property Taxes

Community Consolidated School District 15 voted in increase its property tax levy by three percent.

 

The District 15 school board voted Wednesday to increase its property tax levy by three percent.

For most residents the vote should equate to an increase of about 1.5 percent because of the property tax cap. The tax cap will limit District 15's property tax revenue increase to the rate of inflation – about 1.5 percent. The school board approved a three percent levy to ensure it receives the maximum amount of property tax revenue available.

The school district is facing a budget deficit of about $9.6 million and is considering deep budget cuts.

"We do empathize with the economy and people struggling with their homes and their finances," Superintendent Scott Thompson said. "Given the fact that you've asked us to come back with $10 million in cuts as a potential to curb our deficit...we really would recommend going to the three percent so that we don't have to cut even more."

The board voted 4-3 to approve the tax increase. Most of the debate by the school board centered on how much the levy should be increased, not whether it should be increased.

By increasing the levy three percent, the school district ensures that it captures any revenue from new development. District officials are predicting that its total increase in property taxes should be about two percent – a 1.5 percent inflation based increase on existing properties and a .5 percent increase from development.

School Board President Tim Millar suggested the district limit its levy increase to 1.5 percent so that new development would lessen the tax burden of existing homes and businesses.

"I would like to see us stay at the 1.5 percent if we could as opposed for going for the new growth," Millar said. "The taxpayers are struggling quite a bit."

Millar said that residents are seeing their tax bills increase more for several reasons. For example, he said the tax burden is being shifted from commercial properties to residential because of successful appeals.

School board member Scott Herr said given the district's current financial situation, the levy needed to encompass new growth. Herr said that once the district has a plan in place to reduce its deficit it could consider Millar's plan.

A person with a $200,000 home should see an increase in their property taxes of about $24. Millar's suggestion would have reduced that by about $8.

By capturing new growth in the property tax levy, the school district should see its property tax revenue rise from about $107.3 million to about $109.4 million. If Millar's plan had been followed, the levy would have resulted in about $500,000 less revenue for the district.

Jeffrey J.

8:06 am on Thursday, December 15, 2011

So, let's not fix the problem, but put it off until next year and make the taxpayers shoulder the burden. It is time to remove the four board members that voted for the tax increase. BTW, what is the major component of the budget? Salaries at 82%!!! Something is wrong here. Very wrong. Soon the only way you will be able to afford to live in Palatine is if you are a teacher in D15 or D211.

Reply
Comment_arrow

Bucephalus

11:30 pm on Thursday, December 15, 2011

Something has to be the largest component of the budget. If it wasn't teacher salaries it would be overhead expenditures, and that would provoke cries of unnecessary bureaucracy. If teacher salaries being the largest part of the budget is so bad, then please tell me, what should be the largest part of the budget?

As the District 15 financial information presentation showed, per student expenditures at $12,865 are the lowest in the NW suburbs (below Arlington Heights 25 at $15,093, Prospect Heights 23 at $15,467, Wheeling 21 at $16,078, and many more even higher than that). To me that looks like the sign of strong financial planning.

Comment_arrow

Meg

11:30 am on Thursday, December 22, 2011

Go to Championnews.net to see teachers' salaries. Jeffrey J is absolutely right!

Comment_arrow

Bucephalus

4:32 pm on Friday, December 23, 2011

Meg, that website doesn't state anything. First of all, I'd like to think that we can have rational discussions. However, the author of Champion News, Jack Roeser, ran in the 1994 Republican Gubernatorial Primary according to the About part of the page, he proudly brandishes his conservative credentials. If someone else were to promote sources from the AFT (American Federation of Teachers) people here would be screaming bloody murder.

Secondly, that website doesn't actually talk about the teachers salaries, it merely redirects you to another conservative organization that provides the salaries via the ISBE. That website does provide plenty of editorials about the perceived problems and conservative solutions to education.

Finally, I'm not sure what your point of posting this was, though I do have several good ideas. According to the link I followed (Family Taxpayers Foundation), when you take all the educators listed for District 15, that's 906 entries, and average them, that comes out to $74,487.71 The District says the average pay is 73,774. Now I'm not sure what accounts for the difference in the two numbers, but it is a very small difference either way.

No one has yet answered the question of what should be the largest part of the budget? If it's not the teachers, what should it be? Maintenance costs? Overhead? Utilities? What should be the largest component of the budget?

Bernie H

12:58 pm on Thursday, December 15, 2011

When studies show the average teachers pay for Dist 211 is over 93M a year... AVERAGE! Drive past the teacher’s parking lot and check out the cars, looks like a BMW sales lot. I see all this and my real-estate tax goes up a thousand dollars. Yes … there is something very wrong.

Reply
Comment_arrow

Bucephalus

11:25 pm on Thursday, December 15, 2011

You might want to get the district correct before you start ranting. This is, as the title of the article even says, about District 15. Secondly, you may want to equate yourself with the principle of inflation. Thirdly, the average teacher pay in District 15 is $73,774 according to the 2010 Ed.dat Databook by the Education Data and Consulting Services. If you can present other numbers, I'd be very interested in hearing them.

Did you attend or even look at the District 15 Finance Information Presentation that was last week?

Comment_arrow

Scott Herr

3:06 pm on Friday, December 16, 2011

Average District 15 teacher salary in 2009-10 was $75,289 according to Illinois Interactive Report Card (http://iirc.niu.edu/).

This is rank #12 out of the 35 elementary and unit school districts in the north and northwestern suburbs in Cook County (range for these districts was from $56,471 to $89,121).

This is rank #3 out of the 8 districts that feed into high school districts 211 and 214 (range was from $61,171 to $78,785).

Details can be found at http://www.scottherr.org/2011-12/school-district-financial-comparisons/

Comment_arrow
Patch_comments_icon

Jennifer Mondy

3:30 pm on Friday, December 16, 2011

D15's December newsletter http://www.ccsd15.net/files/_XMLM7_/4ae6411d452eeeb73745a49013852ec4/CONN2011-12web.pdf states the average teacher salary is $73,774 but does not indicate the year.

David

2:15 pm on Thursday, December 15, 2011

Palatine voters, remember these names - Seiffert, Babcock, Bokor, Herr. If you don't want tax increases to support out of control benefits for teachers and administrators, vote the bums out. Thank you to board members Millar, Sriram, and Iannuzzelli for exercising restraint. We need to find four more like them!

Reply
Comment_arrow

Bucephalus

11:33 pm on Thursday, December 15, 2011

Were you one of the dozen people who went to the financial planning meeting? Was anyone who commented on this article? Out of control benefits? The Administrators in District 15 make 20,000 dollars less than neighboring districts. Teacher salaries are in-line with, or slightly below, the average for other districts. All of this was explained at the meeting, but it appears we are instead burdened by people who don't care to be educated, who don't care to do research, and who only care to spout off blatantly wrong statements.

But what the hell, it's the internet. Who need facts when loudly shouted opinions will do?

Scott Herr

5:15 pm on Thursday, December 15, 2011

Interesting comments. The 0.5% difference between the two options considered by the board last night is unfortunately just the tip of the iceberg. The iceberg is the $9.6 million deficit forecasted for next year.

I hope everyone commenting will attend the next community meeting to help identify/prioritize solutions to the deficit. The next meeting hasn't yet been scheduled but is expected to be sometime in the 2nd half of January. District 15 will post the date on its web site and I'll also post it at www.scottherr.org.

In the meantime, there is a Contact Me button on my web site if you'd like more information about the deficit or my vote on the tax levy.

Reply

Scott

12:40 pm on Friday, December 16, 2011

I need some clarification on this so let me present a hypothetical:

I own a $200,000 home and in 2012 the vacant lot next to me has a $200,000 home built on it.

With the 3% levy my taxes go up $24. Does the new home get taxed at the same rate as me?

If only the 1.5% levy went through the article states my taxes would go up only $16. Does that mean the new home does not get taxed by the school district at all? (“capturing new growth” doesn’t happen?) That doesn’t seem to be likely.

Reply
Comment_arrow

Bucephalus

1:07 pm on Friday, December 16, 2011

In your hypothetical you and the new house will get taxed the same regardless of the levy increase. Of the levy increase 1.5% of that is strictly to offset inflation. The taxes you paid in 2011 require the 16 addition dollars to buy the exact same things in 2012.

As the article mentions, and the November 17th story also mentioned, Illinois law prohibits raising the levy beyond the rate of inflation excepting for capturing new development. So that house that is built next to yours is new development. In 2011 there was no house to be assessed $200,000 (yes there was property but an empty lot is nowhere near the value of a house on a lot). Now that there is a house it is assessed as part of the levy.

This is where the additional .5% comes in. If it didn't you would have more people using the same service, in this case schools, but paying the tax levy for a smaller population. The per capita tax rate would go down while total consumption of the service increases. The .5% accounts for those new developments so that the per capita tax rate doesn't change.

Comment_arrow

Scott Herr

2:44 pm on Friday, December 16, 2011

Scott, a numeric (& complicated) response:
- Tax would be $4600 this year
- Following year would be $4623 with D15 levy as approved at 3% (limited to 1.5% 2010 CPI)
- Following year would be $4615 if D15 had approved the 1.5% levy increase
- Yes, regardless of D15 levy chosen, the new neighboring house would be taxed the same as you; however, they might qualify for different exemptions that would affect their final tax bill
- New growth is taken into account in calculating the D15 tax rate - this tax rate applies to all properties in the D15 boundaries

Some assumptions:
- $200,000 house value
- Located in Palatine and in Palatine Park District area (tax code 29007, total tax rate 7.666, D15 tax rate 2.603)
- $6000 homeowner exemption (Note: Cook County is phasing out "7% Expanded Homeowner Exemption" - max exemption this year is $20,000, min $6000 - this decreasing exemption increases final homeowner assessed values thus shifting some commercial tax burden to residential)
- No levy changes by other taxing bodies
- No changes in assessed values (next year is not a reassessment year so residential won't change much; change in commercial depends a lot on appeals)
- Tax calculation = (($200,000 * 10% assessment level * 3.3000 state equalization factor) - $6000 exemption) * 7.666 tax rate / 100
- New growth estimated at 0.5% within District 15 boundaries - so if D15 levy was 1.5% increase then total levy would be spread over 100.5% as much property as before

David

10:57 pm on Friday, December 16, 2011

I for one enthusiastically supported the 1-3-5 campaign last election, which resulted in Sriram, Herr, and Iannuzzelli taking office. Yet in the first meaningful vote concerning taxes/spending, Herr sides with the old guard to raise our taxes. What a hypocrite! I wonder how Manjula and Gerard feel about that 1-3-5 campaign now.

Reply
Comment_arrow

Scott Herr

11:26 am on Saturday, December 17, 2011

David, FYI I'm also being criticized on the Daily Herald article at http://www.dailyherald.com/article/20111214/news/712149601/comments/

Next year's deficit is forecast at $9.6 million. Approving a 1.5% levy increase would have increased the deficit to $10.1 million. This is not a small problem and no one has shared a vision on a solution. What would you do to eliminate a $9.6 or $10.1 million deficit?

I was quoted in the DH article saying "Are we going to increase class sizes? Are we going to cut salaries? Are we going to cut programs? Are we going to increase taxes?" My questions are sincere.

Scott

12:10 pm on Saturday, December 17, 2011

David - to be fair it should be pointed out that all board members were for a tax increase; the only difference was whether it should be 1.5% or 2%.

Reply

David

1:12 pm on Saturday, December 17, 2011

"Hey everybody voted to raise taxes, I just voted to make them even higher" - That's what you're going with Scott Herr, really?

Reply

David

1:47 pm on Saturday, December 17, 2011

When I voted for this guy, it was based on pre-election comments he made. These are direct quotes from the Daily Herald, Palatine Patch, or forums he attended. You are convicted by your own words Scott Herr!

When asked how he would balance the budget, he included this response:
"Start a dialog with the teachers union about the possibility of opening the current contract with the objective to resolve the current issue of salary increases that aren’t aligned with the District’s revenues." and this - "Form a team to review all spending with input from teachers, staff and the community to identify any spending that doesn’t add value to the core mission, which is teachers educating students."

When asked what was the greatest challenge facing D15, he stated:
"The greatest challenge is eliminating the growing deficit spending that, if not corrected now, would ultimately affect class sizes, property taxes and/or programs."

Among his key election issues he made the following statements:
"Another key issue is fiscal responsibility, which was illustrated by the bond referendum that was defeated 2 to 1 by voters last November."

"For most residents, over 60% of their property taxes can be attributed to District 15 and District 211. School boards recommending additional debt or an increase in taxes have an obligation to make a clear case to the community."

"Just like all residents in the district, District 15 must live within its means."

(cont.)

Reply

David

1:51 pm on Saturday, December 17, 2011

When asked, "Would you support reductions in staff, specifically classroom teachers, in order to reduce projected deficit spending? If not, what specific budget cuts do you propose?", his answer included:

"It should be noted the vast majority of District 15 spending is for salaries and benefits, as one Board member pointed out at the January Board meeting. Unless we are successful in finding other savings, this would mean the next choice would be reducing the increases that exceed inflation. Any further reductions would only be taken after exhausting every other option." and this: "The Board asked the District 15 Administration to come to the February 9th Board meeting with a specific list of possible budget cuts with a focus on avoiding impact to student programs and current instruction. These cuts would be my first choice in balancing the budget."

When asked, Would you support another tax increase referendum? - he stated:

"No, I would not support another tax increase referendum. It is imperative the District 15 Board and administration resolve the imbalance between spending and revenues." "By acting promptly to balance the budget, more of the extra $14.5 million in the bank will be available to address the current backlog of capital projects instead of funding deficit spending."

(cont.)

Reply

David

1:51 pm on Saturday, December 17, 2011

So besides siding with the holdovers in raising taxes even higher, rather than teaming with more fiscally responsible Tim Millar and your fellow 1-3-5 newcomers, just what in the world are you doing to keep your campaign promises Scott Herr?

No more empty lectures. We are taxed enough already. Where are the spending cuts? Read your own press clippings and act. That is why you were elected.

Reply
Comment_arrow

Bucephalus

4:36 pm on Saturday, December 17, 2011

Tim Millar and the other "1-3-5ers," as you call them, did not present any ideas either at the meeting.

Negotiations with CTC have just begun, and unless you are aware of a way to force the union to negotiate faster, begun the process sooner, or just caved right in to any and all demands, I'm not sure how you can say that Herr, or any of the board members, have failed or even succeeded to keep their promises. They've barely been on the board for half a year.

Scott Herr

4:07 pm on Saturday, December 17, 2011

The spending cuts are currently being planned by D15. Initial proposal at February board meeting followed by board action at March and/or April board meetings.

Public input to the proposal and review of the plan are scheduled for January (exact time/place TBD but I believe will be Jan 23) budget forum and at February board community meeting (Sat, Feb 25, 9am).

More info is in "Schedule of Activities" under "2011-12 Financial Communications Plan" at http://www.ccsd15.net/pages/CCSD15/Our_Services/619813691670313506/Financial_Documents

Reply

David

4:46 pm on Saturday, December 17, 2011

Well buccephalus, let's see where the negotiations lead, but if this first salvo is any indication, Herr is siding with those to raise taxes higher. Let's see if meaningful spending cuts are made and campaign promises are kept.

Reply

Maryb

12:08 pm on Friday, December 23, 2011

What is missing in the budget conversation is that the current teachers' contract expires on 8/31/12. How can the administration and board determine budget cuts when the next contract is presumably in discussions too? With all the annoucements on budget reviews why no mention of the expiring teachers' contract?

Reply

Scott

9:54 pm on Friday, December 23, 2011

Maryb - the upcoming negotiations are brought up often as the big variable in the potential cuts.

Reply

Sandra Levin

9:46 am on Sunday, January 29, 2012

Unfortunately as a commercial property owner in Palatine, this is not good news. While a property tax cap holds down increases on residences, there is no cap for business owners. It's almost impossible to stay in business in Palatine and this will only add to the pile of reasons why.

Reply

Leave a comment