The Lockport Township High School 205 Board signaled Thursday it would support a tax levy with an abatement option at its Nov. 20 meeting.
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The board will consider a proposed 6.28% tax levy increase with a new property estimate of $40 million, or about $60.5 million, followed by voting on a resolution to abate a portion of the levy, said Stefanie Croix, director of business services. The abatement, which would apply to homeowners and businesses, would return about $1.3 million to taxpayers, said Superintendent Robert McBride.
For a $240,000 home, the tax increase with bond and interest levy abatement would increase the property tax bill by about $50 for the 2023 tax year, Croix said. Without the bond and interest levy abatement, the homeowner’s bill would increase by $83, she said.
McBride said the district would pay for bond and interest payments from its operating budget.
“You list the full price and then you discount it,” McBride said.
This strategy provides a return to taxpayers and provides “a cushion” as the district considers major projects not only at Central Campus but also at east campus, which includes roof repairs and repairs to the field house and turf fields, McBride said.
The board heard from four residents in September and received emails ahead urging members to vote against the budget to avoid a potential increase in the property tax levy. The discussion focused on spending the district’s projected $76.8 million fund balance as of June 30, 2024, which equals 12 months of cash on hand used to operate the district.
While the budget passed in a 4-3 vote, district officials presented levy options including one to reduce the annual tax levy by $4.5 million. Board members voiced concerns in October that lowering such a levy would decrease the fund balance $76.4 million in fiscal year 2023 to $57.5 million in fiscal year 2029. The district’s fiscal year is July 1 to June 30, Croix said.
An abatement resolution could be approved annually, McBride said, which would allow the board to review district finances to see if another abatement resolution would be feasible.
“One reason we feel confident, obviously we don’t have a crystal ball, but generally the way we handle finances here we outperform our budget every year. That’s just people being astute spenders, astute budgeters,” McBride said. “We have no reason to assume that suddenly our staff isn’t going to do that.”
Board member Marty Boersma, who voted against the budget in September, said the district’s tax levy and abatement strategy “is a start.”
Board member Zyan Navarra, who also voted against the budget in September, said he’s comfortable moving ahead with the strategy.
“It’s a nice compromise, especially since we’re still able to operate with relatively good leeway as well as recognizing the fact that there are people in our community who are struggling,” Navarra said.
Board President Ann Lopez-Caneva said she appreciates the option to review an abatement resolution annually because, as the community witnessed Thursday when a ceiling collapsed at Central Campus, district officials have to be prepared for anything.
“We just have to be prepared for the unexpected. I don’t like to use cash reserves because we need to be prepared for the unexpected,” Lopez-Caneva said.
The board will vote on a tentative levy at its meeting at 7 p.m. Nov. 20 in the Porter Room at East Campus, 1333 E. 7th Street in Lockport, and the final levy at its Dec. 18 meeting. The abatement resolution would only require one vote, Croix said, and would be voted on Dec. 18.