Unit 5 adopted its annual property tax levy on Wednesday that is about 9.6% more than last year’s, but the district’s overall tax rate should go down slightly.
The estimated $150 million to be collected accounts for the bulk of the district’s annual budget.
“The levy is extremely important for our district, with a large part in our operating funds — over 65% — coming from local property tax levy,” said Marty Hickman, who leads Unit 5 finance.
With the levy, Unit 5 property owners should see the tax rate decrease of about 22 cents, to about $5.30 per $100 of equalized assessed valuation [EAV].
That reduction in the overall tax rate is worth highlighting, said board member Jeremy DeHaai.
Board members discussed how they’ve heard from some taxpayers upset the district has a tax levy increase, especially in light of a property tax increase referendum passing in April.
But that increase doesn’t take effect for another year, said board member Amy Roser, adding it appeared some people were conflating two issues.
“We still have a structural deficit” in this budget cycle, so capturing the EAV growth is necessary, said Hickman.
The figures in the adopted levy were adjusted slightly since November’s estimate, based on the McLean County assessor’s decisions on a few EAV appeals.
The later estimate for the school district’s total EAV came in about 1% lower than initially projected. Hickman said more adjustments may come before March, but he anticipates any changes will be minor.
Also at Wednesday’s meeting, the board heard an update on the district’s strategic planning effort, learned its annual audit showed no problems with district finances, and OK’d plans to settle a discrimination lawsuit filed by a former custodian.
Property tax levy reflects EAV growth
Despite the adopted 2023 levy being 1% lower than the district thought it would be in November, the new figure represents about 14% growth.
Unit 5 leaders have credited the continued success, and spillover effect of electric automaker Rivian for much of the growth.
Historically, the district sees much lower annual EAV growth. It's averaged around 3.5% over the past 20-year period. That’s expected to be the norm again, Hickman said Wednesday.
Board member Stan Gozur said the district has a responsibility to keep that in mind.
“We must take advantage of the EAV, in low times and high times. If you don't, then what you're bringing in is less than the average would yield over that period of time,” to keep the finances steady, said Gozur.
Existing property within Unit 5 boundaries has seen an EAV increase of about 10.5%. The district doesn't set the EAV, just the tax rate, said Hickman.
For the owner of a home worth $225,000 in 2022, such an increase in EAV would push the value to $248,500 for 2023. With the levy approved Wednesday, that homeowner now would pay $268 more in taxes, for their portion of the Unit 5 tax bill.
Education fund rate stays flat
The April referendum's success means Unit 5’s education fund tax rate will go up, but not this year. The district pledged the approved rate of $3.60 per $100 EAV won’t take effect until the 2024 levy is OK'd. That future date coincides with when the district’s bonds and interest tax rate also will drop.
But with the 2023 EAV estimate changing since November, Unit 5 needed to reduce the education fund’s levy amount by about $605,000. That keeps the ed fund rate at $2.72 cents.
Hickman said the district will use working cash transfer to meet ed fund needs, to keep the budget as planned, adding it’s a small fraction of the nearly $22 million ed fund budget.
That’s by far the district’s largest fund. It covers the district’s faculty and staff salaries and benefits, and other instructional costs.
Strategic plan draft expected in February
Superintendent Kristen Weikle shared some preliminary results of surveys collected as part of the district’s strategic plan development.
Adding classroom and student intervention spaces is a top concern for students, families ands staff surveyed, she said. Another is working toward school enrollments and staffing reflecting the demographics of the Bloomington-Normal community. Improving safety features at schools also is important to many surveyed.
"When I look at our two high schools, there's about 20 classrooms difference even being available," and that should be factored into enrollment sizes, said Weikle.
She told the board a district-wide steering committee has been working on how to move forward with the strategic plan, and hopes to have a draft for the board to look over in February.
The plan could be adopted as early as March, added Weikle.
Among those surveyed in this second round were more than 3,000 adults including families and Unit 5 staff, as well as nearly 4,000 junior high students, and high school students.
Weather warning system coming to six schools
Both Unit 5 high schools, and the district’s four middle schools will be getting a new piece of safety technology.
On Wednesday, the board approved a $100,000, five-year contract with Perry Weather, a Texas-based company that specializes in weather warning systems and sirens.
This tech allows the district to have the latest weather information, especially for safety in outdoor activities, said Unit 5 spokesperson Dayna Brown.
In other business, the board:
- Heard an annual audit report, from Clifton, Larson, Allen’s Hope Wheeler. She presented an unmodified opinion, meaning the district's finances are in order.
- Approved district plans to settle a sexual discrimination lawsuit with former Normal West custodian Faelan Grimm. The district will pay Grimm $8,000, including legal costs. She resigned in 2021.
- OK’d spending about $120,000 to update the Evans Junior High School heating and ventilation.
- Approved a $154,000, five-year leasing agreement with Clayton Holdings for the use of two equipment trucks.
- OK’d property assessment settlement agreements with Young America and First Site rental companies.
- Approved or renewed about a dozen district policies, covering operations, personnel and instruction.
