Forest Leaves - 11/17/2005

School panel favors 32.5¢ tax rate hike
BY CHRIS LAFORTUNE
STAFF WRITER

Members of District 90's fiscal action team have recommended the district seek voter approval on the March ballot for a 32.5¢ property tax rate hike.

The team met last Wednesday to discuss referendum projections and came to the 32.5¢ recommendation after determining 30.5¢ was too little, while 35.5¢ was too much.

"We have to sort of give a number we think is fiscally responsible," team Chairman Raymond McGaugh said following the meeting.

The hike would cost the owner of a home with the fair market value of $575,000 an additional $499 a year on the District 90 portion of the property tax bill, starting in 2007. A similar increase would apply in the following consecutive three years.

In 2006-07, the district expects to receive an additional $1.5 million in tax revenue were a 32.5¢ referendum passed. That would climb to $3.4 million in 2007-08, $5.3 million in 2008-09 and $6.6 million in 2009-10.

Projections show additional tax revenue hovering between $6.1 million to $6.7 million between 2010-11 and 2013-14, the end of district estimates.

Board consideration

School trustees heard the action team's recommendation at a school board finance committee meeting Monday. Finance committee Chairman Ronald Atkins said the board committee looked at three different referendum scenarios - 20.5¢, 32.5¢ and 35.5¢ - as well as budget-cut scenarios. The committee did not settle on any one scenario.

"We looked at a number of different options and committed to take another run through budget reduction measures," he said.

The board finance committee is scheduled to resume its discussion at 7:30 a.m. Nov. 21 at the district administrative office, 7776 Lake St., Atkins said. He expected the School Board to make a decision on whether to pursue a referendum at its meeting 7 p.m. Nov. 29 at Roosevelt Middle School, 7560 Oak St.

"We have to decide by late December or early January to present a ballot proposition," School Board President David Gregg said following the fiscal action team meeting last Wednesday.

The board will have the ultimate decision on what rate to seek if it decides to go for a referendum, though Gregg said the board has asked for community input before making that decision.

"They brought a great deal of common sense and a practical community voice to this issue," Gregg said of the action team's findings. "I cannot complain about the conclusions they reached."

If voters approve a tax hike, it would raise the district's actual rate in each of the subsequent four years, district Business Manager Anthony Cozzi told team members. So homes would see the same tax increase each year.

The increase would take place each year so the district could hit the new tax rate, though tax caps and reassessments might bring the actual rate down.

Cap blunts rate

The district's current maximum tax rate is $2.995, but its actual tax rate is $2.07 on this year's tax bills due to the impact of the state-imposed tax cap.

If the district wanted to last 15 years before its next referendum, that would mean a higher rate, resulting in higher taxes for the first four years once a referendum passes, team member Tim Cole said. A good range of time between referendums was five and seven years, Cole said.

McGaugh at first supported the 35.5¢ figure, but team member Carlotta Lucchesi suggested that would be a tougher sell.

"We've heard citizens say, why not ask for a smaller amount and then come back again?" Lucchesi said.

The team previously decided not to ask the district to cut its budget. McGaugh said last Wednesday the team determined that, if programs were cut, some portions would never return.

"Everyone is thoroughly satisfied with the educational program we have now," he said.