First, we want to express our appreciation for everyone who attended our public hearing on Tuesday, Dec. 10, to share their thoughts and feedback regarding the tax levy.
During that meeting, the District 97 Board of Education voted to adopt the final levy for 2019. This decision was based on the extensive research and long-term planning done with the assistance of the district’s administration, financial consultant and our Finance Oversight and Review Committee (FORC).
As we previously shared, the 2019 levy includes $5.3 million in revenue from the expiring Madison Street and Downtown TIF districts, which has been a major component of the district’s financial planning for the past several years. We believe the decision to capture the new growth in these TIF districts will directly benefit our students and schools, as it allows the district to:
- Address major capital needs for the safety and maintenance of our buildings without issuing debt and incurring associated costs of interest.
Without capturing the tax dollars from the expiring TIF districts, a large portion of these expenses would have to be paid with additional bond issuances (DSEB bonds), which would cost the community approximately $15.8 million in interest expenses over the life of borrowing. Our current plans are to use revenues generated from the expiring TIF districts to cover these non-referendum capital expenses.
- Maintain balanced budgets and fund balances consistent with board policy.
Board Policy 4:12 (Finance Goals and Objectives) states that District 97 "will target an overall fund balance between 25% and 50% of operating cash flows,” which translates to about three to six months of expenditures. This standard was established by the board to maintain a financially strong district and ensure that we are able to continue meeting the needs of our students should we be faced with unforeseen financial developments.
- Manage the impact of possible legislative action in Springfield, i.e. a property tax freeze or a shift in pension liabilities.
Although the revenue from the expiring TIF districts increased our overall levy by 9.7% over last year, we are only increasing our levy by 1.9% (CPI) to those taxpayers outside of the TIF districts. For a home valued at $400,000, this represents an increase of about $90 for the portion of the tax bill due to District 97.
Video of the tax levy presentation given by the district’s financial consultant, Robert Grossi, during Tuesday’s meeting can be viewed by visiting https://youtu.be/3dXo4f6oWlA. For further explanation of the 2019 levy, please see our previous communication. People can send comments and questions to the board of education by emailing [email protected].
As we stated Tuesday night, the board is committed to working with the administration to identify efficiencies within our budget while continuing to meet the needs of the more than 6,000 students we serve. We look forward to engaging the community in these important discussions as we work together to establish a long-term plan for fiscal stabilization, academic excellence, and safe and quality facilities. Thank you again for sharing your valuable feedback, and for your continued support of our schools, students and staff.
- District 97 Board of Education