D181 Board OKs Maximum 2011 Tax Levy

The District 181 Board of Education approved a 2011 tax levy that would increase the district’s revenue by $1.8 million (3.6 percent) over the 2010 levy, an intentionally high "balloon levy" that will likely come down when the district's limiting rate is set by DuPage County this spring, assistant superintendant for business Dr. Troy Whalen said.

The board passed the $53.3 million levy by a 5-2 vote at its regular business meeting Monday night at . Board members Glenn Yaeger and Brendan Heneghan voted against it.

According to state law, the extension of the 2011 levy over the 2010 levy is limited by the 2010 consumer price index (CPI) of 1.5 percent, but can exceed that percentage based on the equalized assessed valuation (EAV) of all property in the district and/or the amount of new property constructed in the district, two numbers that won't be known until March.

Balloon levies like the one passed Monday extend significantly beyond the CPI to make sure the maximum levy, including revenue that might come as a result of increased EAV and new construction, is approved by the DuPage County Clerk's Office in the spring.

Whalen said District 181 expects a seven-percent decline in EAV in 2011 and $25.2 million in new construction. If those estimates are accurate, the district’s maximum levy would settle at  an amount 2.55 percent greater than it was in 2010.

Yaeger, Board President Michael Nelson, and board member Marty Turek all expressed discomfort with levying the maximum and spoke in favor of more advance planning and vetting of future budgets so that levies can be discussed and set accordingly.

On Nov. 28, Nelson said levying the maximum every year is not sustainable in current economic times. He said Monday that though the district can’t be exactly sure of what its budgets will look like several years in advance, it can get a good idea if it planned and vetted curriculum and technology programs earlier.

“Right now we’re in this tax-and-spend mode and that’s really not comfortable for me,” Nelson said.

Nelson did not go as far as Yaeger, who advocated for a non-maximum 2011 levy, which will fund the latter part of the current 2011-12 school year and the first half of 2012-13.

Yaeger suggested that the levy be reduced to offset new construction revenue. He said new property in District 181 is mostly new houses replacing old houses, not new subdivisions replacing empty lots. Because of that, Yaeger said, the district does not necessarily see an increase in students served from new property and doesn't need the resulting revenue.

Yaeger said of approving a smaller levy, “It sends a message that we are not going to tax and spend, we are going to plan and spend.” 

Of the $53.3 million calculated for Monday’s vote, $44.8 million would go towards the education fund. Operations and Maintenance would get $5.4 million and Transportation $1.5 million. Just under $1.6 million combined would go to IMRF and Social Security.