Oak Park School District 97 board members have approved an estimated 2017 property tax levy that is 3 percent more than last year’s tax extension, but officials said property owners will likely see smaller tax bills next year as the district is set to pay down its debt with an unanticipated surplus.
The District 97 board voted 7-0 Dec. 19 to set its 2017 property-tax levy at $71.1 million, according to Alicia Evans, assistant superintendent for finance and operations.
The final tax levy will not be known until July 2018, when data on the value of new property within the district is available and can be combined with the 2.1 percent increase in the consumer price index for 2017, Evans said. That will determine how much property owners would see on their tax bills, due in 2018.
In addition to hiking the estimated property tax levy, the board reaffirmed its previously approved plan to use $2.6 million in surplus tax revenue it received this year after a successful referendum in April to pay down its debt. Officials expected the referendum approved by voters to generate an additional $13.3 million, but an unexpected increase of 5 percent in the state’s equalization factor brought in $2.59 million more than expected, officials said.
The decision to use the surplus tax revenue to pay down the district’s debt will lead to a total 3.84 percent drop in the 2017 property-tax levy as compared with the 2016 levy, and result in a tax decrease for property owners, Evans said. That will result in a decrease of the school district’s overall levy for next year by approximately $3 million as compared with 2016, according to a statement by the district.
“I’m confident that this is the best plan to allow the district to do what it needs to do and reduce the tax burden on residents to the greatest extent possible,” said board member Rob Breymaier.
Several residents objected to the board’s plan, saying the overall property tax levy should not be raised because of the unanticipated surplus from the referendum.
David Yamashita, who unsuccessfully ran for a seat on the District 97 board in the spring, said Oak Park residents were “facing a perfect storm of taxation.”
“It will add to the challenge for people to stay here in Oak Park,” Yamashita said.
Greg Marsey, a former Oak Park village trustee, said the board’s plan puts “the diversity of Oak Park at risk.”
“Because of the continual uptick in the tax burden, it is not going to be too long until Oak Park looks like every lily-white North Shore suburb,” Marsey said.
In addition, the board agreed to hold off on previously announced plans to borrow $10 million against the tax revenue generated by the successful referendum. Instead, members endorsed a plan to borrow $7.5 million in February to finance improvements set for Longfellow Elementary School and pay for an expansion of Holmes Elementary School out of its existing budget. That will save the board approximately $150,000 in interest payments, Evans said.
Board member Robert Spatz said the board’s decision to use the unanticipated surplus from the referendum to pay down debt leaves open that a future board could decide to keep the extra tax revenue and spend it on other projects.
“However, paying down debt is the prudent thing to do,” Spatz said.
The board agreed to consider a way to permanently return the surplus from the referendum to taxpayers.
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“This isn’t a permanent fix,” said board President Holly Spurlock.
Heather Cherone is a freelance reporter for Pioneer Press.