District 308 Board Approves 2011 Levy, Requesting 5 Percent Increase

The Board of Education approved this week its estimated tax levy for 2011, requesting a nearly 5 percent increase.

The levy shows a request for 4.95 percent more from taxpayers over the amount collected by the district last year. The actual amount of increase received by the district is calculated by the Kane, Will and Kendall county clerks' offices and likely will be closer to 2.5 percent, according to Tim Neubauer, assistant superintendent for business and finance.

The board approved the levy by a 4-3 vote with Brent Lightfoot, Bill Walsh and Alison Swanson voting no.

“To maximize revenues under the levy process, we must levy (request) dollars at a high enough level to capture the new growth,” Neubauer wrote in memo to the board. “For purpose of this levy, we will be applying a 4.95 percent increase to the overall 2010 (Property Tax Extension Limitation Law) funds Tax Extension in order to capture all new growth and reassessed property. Of course, we will not actually receive this much of an increase.”

Lightfoot said taxpayers already will being seeing an increase in taxes next year due mainly to bonds sold to fund the construction of additions to and . The district should be asking for a levy more in line with what it needs to operate, he said.

Neubauer said doing so may mean the district would not receive enough money to cover its expenses. By applying a “balloon” levy, the district is likely to receive those funds. If more is received than needed to operate , those taxes could be abated back to taxpayers in the spring, he said.

“Even though the district is seeing increases in taxes, they are not keeping pace with the growth we’ve seen in this district,” board member Mike Scaramuzzi said.

Neubauer also reminded board members that given the construction bonds, residents with homes valued at $200,000 would be seeing an average increase of $169 on taxes collected next year.

“This is why economic development is so critical in the district,” said Superintendent Dan O’Donnell, who is set to join a . “Typically in a district, 65 percent of the tax base is residential and 35 percent commercial. Right now we’re at about an 85 percent residential, 15 percent commercial split.”