Schools

District 211 Board Stands by Proposed Tax Levy Increase

Citing the district's $90 million surplus fund balance, residents urged the District 211 School Board to not increase the 2013 tax levy at Thursday's meeting.

Editor's Note: This post has been updated to reflect that the district has a fund balance of about $166 million, compared to the minimum target of $75 million, which equates to a surplus of about $90 million.

Pleas from residents urging the Township High School District 211 School Board to keep the 2013 tax levy flat did not dissuade board members from following the path to what they believe will keep the district in the black long-term.

The board voted 5 to 2 Thursday night in favor of a recommendation to levy $208.7 million, which excludes the debt service levy. Board members Anna Klimkowicz and Mike Scharringhausen were the lone dissenters.

The proposed levy amount represents an increase of $4.6 million or 2.2 percent over the 2012 levy extension, according to the district.

Although board president Bill Robertson said he "completely comprehended" the concerns of the taxpayers, his duty was to put the financial health of the district first.

"I cannot ethically support any decision that would put this board or future boards in a negative financial position," he said.

If the district kept the 2013 levy flat, said Robertson, by 2017, they would be $5 million in the red, and there would be no guarantee of relief for taxpayers when the tax burden continues to shift to homeowners.

How much is enough?

Residents who spoke at Thursday's meeting, including members of a group called Citizens for Accountability in District 15, likened the district to a fat cat with more reserves than the board's own policy calls for.

The district's fund balance is about $166 million, compared with a minimum target of $75 million, which results in a surplus of approximately $90 million. This is 220 percent above and beyond its policy to maintain an ending fund balance of about one third budgeted expenditures, said resident Mark Evenson.

"How much is enough?" asked resident Joe Heater. "We are absolutely in no danger of not being able to meet our financial obligations." He suggested the district fully abate the debt service levy.

"You really do have a mountain of cash," added resident Vicki Wilson.

In September, the board passed a $250 million operating budget for fiscal year 2013-14.

Robertson explained that the surplus fund balance is largely the result of $17 million in budget reductions over the past four years and $68 million in savings from the district's restructured health plan. He said the surplus is necessary to fund significant upcoming capital improvement projects, technology initiatives, pension obligations, legal settlements and tax refunds due to property owner appeals, which has cost the district about $36 million.

Resident John Parker, who brought a sign that read, "There are 90 million reasons to not raise taxes," accused the board of "rubber-stamping" the wishes of the administration rather than being good stewards of the community.

Board member Robert LeFevre Jr. said it would be a dereliction of duty to become complacent and not to consider the district's long-term needs, which could result in deficit spending.

"I believe the levy ensures we continue to end up where the community expects District 211 to be."

A public hearing on the proposed 2013 levy will be held at 7:30 p.m. Dec. 12, followed by the board's adoption.


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