A property tax increase for the first time in six years may be felt by real estate owners within the boundaries of Waukegan Community Unit School District 60, as inflation is outpacing revenue growth.
Ever since the District 60 Board of Education kept property taxes level as residents were coping with the expenses and burdens of the coronavirus pandemic, the rate remained constant. Several board members indicated a tax hike may be necessary.
The District 60 Board of Education voted 5-1 with a member absent to approve an approximate $55 million real estate tax levy, increasing last year’s amount by 4.9998% on Tuesday at the Education Service Center in Waukegan to help deal with looming uncertainty.
Though the board increased the levy on Tuesday, Gwen Polk, the district’s associate superintendent for business and financial services, said the precise amount of taxes levied will not be known until she receives the assessment extension in late March or early April.
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While the final decision is approximately five months away, a majority of board members indicated at or after the meeting they will approve a tax hike in the spring. There was a consensus the quality of the children’s education depended on more revenue.
“Unfortunately, we need to understand the biggest hardship is on our students,” board member Christine Lensing, who voted for the levy, said. “We have a responsibility to these kids to give them the best possible future we can.”
Approving a $323 million budget in September, projected revenue from all sources was forecasted at just over $283.6 million. If the board votes to implement a tax hike once the extension is complete, it will represent 19.54% of the total income. Evidence-based funding from the state of approximately $166.3 million is the largest pot of money.
Should property taxes be raised to the maximum, Polk said the owner of a home with an assessed value of $103,205 will pay $155 more a year, and a senior citizen will need an additional $170. Seniors pay less overall.
Rather than keeping the levy flat for six years, Polk said it could have been increased to the maximum and then abated. Abetment increases the foundation from which future percentage increases are based. Failing to use the abatement method has cost the district $35 million so far.
“The district has forfeited about $35 million, which we can never regain, and that number doesn’t go away because we lost the base,” Polk said. “Even in future years, we are going to continue to lose because we lost that base.”
Uncertainty at the federal level — approximately $30 million in revenue comes from Washington — as well as possibly from the state is making Polk and other administrators nervous. Some board members are concerned as well. Costs are rising faster than revenue.
“If the CPI is 2.9% and we’re giving 4% raises to the union members, it tells you we’re not getting enough revenue in to match what we’re giving out in raises,” Polk said. “One of the decisions which has to be made to keep up with that is raise the taxes.”
Lensing was specific about current moves by the federal government. She said money meant for special needs children is being held. She is not “excited” about a tax hike, but she is concerned about potential losses in revenue beyond the district’s control.
“We have a federal government that is holding funds hostage,” Lensing said. “We are seeing things we never anticipated we would have seen before. We need to start putting down the sandbags to lessen the degree to which the storm is going to be in our district.”
Board member Anita Hanna was the only person to vote against the levy. She said she would rather see spending cuts than a tax hike. She made it clear she has advocated for reduced expenditures for years.
“We knew this was coming,” Hanna said. “The district knew this was coming. I just wish that there had been a plan that we could look at what we could reduce in spending. You’ve heard me talking about reducing spending because we were uncertain about the future.”
Board member Carolina Fabian called increased taxes a “necessity” because of the uncertainty gripping the country and the lack of confidence in what may happen this year and next. Like Lensing, she wants to be able to “weather the storm.”
“The previous boards have tried to lessen the impact on our families by holding back for so many years,” Fabian said. “We’re at the point where we can’t hold back and we’ve left a lot of money on the table. It’s a hard decision but it’s one we have to make.”
Board President Michael Rodriguez, who also voted for the levy, said it is the responsibility of the board members to raising the levy. It is a decision which must be made “in the interest of our children.” It goes to the oath each member took before taking their seat.
“We swore an oath and we don’t have a choice in that matter,” Rodriguez said. “We have to make sure for our children the funds are there especially in light of all the uncertainty that exists in this modern day and age.”
Board members Jeff McBride and Rick Riddle voted for the levy and board member Angela Ramirez was not at the meeting. Riddle said after the meeting a tax hike may be in the “best interest of the kids.”