Homeowners in Indian Prairie School District 204 can expect a 1.5 percent increase on their tax bills in 2012. That means, the owner of a $326,000 home in District 204 can expect to see a tax increase of $80, according to an official.
The Board of Education voted Monday night to approve its 2011 tax levy. A total tax levy of $257,867,225 was recommended to the board and was approved by all six members present. One member, Lori Price, was not in attendance.
The board had approved a tentative levy in November, but had to vote on the final numbers after holding it’s public hearing Monday night.
District Finance Director Dave Holm said the state’s financial woes continue to be a challenge and many programs that once existed, and which the state funded, have either been cut back or completely eliminated. Holm said he expects the state’s financial issues to continue.
Those financial woes impact the district and its operation and he said the district will be operating with an $8 million deficit.
While the district asked for a 3.3 percent increase in its levy, due to the state's tax cap the district will only receive 1.8 percent, Holm said. Homeowners will only be subject to a 1.5 percent increase; the remaining .3 percent will be paid by new residential property owners.
During its meeting the board discussed the working cash portion of the levy and questioned the rationale for keeping $2.3 million dollars in working cash rather than moving the funds to where they could better be used.
Holm said that the district typically falls short of funds in May and has vendors and other bills to pay; the money in the working cash fund is in effect used as a loan to itself that the district makes rather than taking out loans with interest.
Board members Dawn DeSart and Christine Vickers were both concerned that rather than leaving the funds in the working cash fund, that it be moved to the education fund.
The board needs to keep money in the working cash fund in an amount of at least $75,000, Holm said. If the board were to close out the fund it would need to seek a referendum to create a working cash fund in the future.
The board voted to amend the final language to reflect that the district will move all but $75,000 from the working cash fund into the education fund, ensuring that the funds are already present in the required account for potential shortfalls the district encounters every spring.
In other matters, the district also approved the district’s calendar for the 2012-13 school year. Students will begin classes on Aug. 23, with the first semester ending on Jan. 13, 2013 and students getting out for the summer on May 31.