D-15 Votes To Raise Property Taxes

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 .

"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 , 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.