Unit 5 is proposing a $163 million property tax levy in 2024 — a roughly 9.2% increase from last year’s $150 million levy — and has plans to bump the education fund tax rate to $3.40 per $100 equalized assessed value [EAV].
Despite those hikes, chief financial officer Marty Hickman said overall tax rates are projected to decrease since property values are increasing and the school has paid off some of its bonds and interest, adding the EAV is only an estimate at this time.
“I think the big takeaway from this evening for the school district, to the extent that taxes are going up for existing homeowners, it's completely due to the change in their property value,” he told WGLT after the meeting.
Hickman presented the preliminary levy report at Wednesday’s school board meeting; an official vote on the levy is set to take place at next month’s meeting on Dec. 18.
Based on the proposed property tax levy, “a home worth $225,000 in 2023 that increased in value 10.63% would be worth $248,915 in 2024,” according to a slide from Hickman’s presentation. “That homeowner would see an increase of $239 over the prior year” in their property taxes.
Hickman said $225,000 is not the exact median estimated value of homes in the area, but Unit 5 chose the number because costs have increased generally.
Money generated from the property tax levy accounts for just over 65% of Unit 5’s operational costs.
2024 also is the first year Unit 5 will start to reap the benefits of a 2023 referendum to raise the education fund tax rate cap to $3.60 — from $2.72 per $100 EAV. Hickman said the district was lucky that a boost from property tax increases kept the district from reaching that new cap, instead opting for a $3.40 rate.
“Just an example of where we tried to weigh the options of what funding was needed for the district and put the education fund in a better financial position long term, to weather slower times in revenue growth versus burden on the taxpayers,” he told WGLT, while pointing out during the meeting the district could go to the maximum amount as early as next year.
Pending facilities expenses
At the same time, the district is scrambling to find more than $50 million to fund facility repairs and updates over the next five years, which doesn’t include costs that inevitably will be incurred when the district is forced to replace all of its portable units.
Hickman shared some options the board could consider to start funding those projects, though he did not make any official recommendation to the board.
Many of the ideas were bond-related, which would leave the district in debt and don’t offer a high yield. A solution that could pay for all of the projects within the five-year time frame is the Illinois County Schools Facility Sales Tax.
Superintendent Kristen Weikle described it as a 1% sales tax on select items — not groceries, pharmaceutical items, or services — that Unit 5 estimates could amass between $16 million and $20 million per year if instituted.
Board member Mark Adams highlighted the non-taxable sales items that he characterized as “the necessities that everyday people need to survive.”
“This would really be less regressive than most sales taxes,” he said, adding most tend to disproportionately affect low-income households.
Weikle pointed out that much of the sales tax would likely also be generated from community members who visit Bloomington-Normal.
The tax would require the board to discuss the idea with other school districts since it would affect all districts in the county, and ultimately, the public would have to approve a ballot referendum for the tax to get implemented. Weikle said she believes there’s an “ongoing interest” from other districts already.
The district tried and failed to get the tax approved around a decade ago.
Unit 5 also could increase its property tax levy further, said member Kelly Pyle.
If bonds are issued, the property tax also would be raised since debt needs to be paid off. Hickman said it’s possible bonds would affect 2025, and not 2024’s levy depending on the request timeline.
Board member Amy Roser said she thinks large landowners might find the sales tax more appealing since it “shifts some of the burden” away from property taxes.
Multiple board members said decisions need to come soon, with Roser adding there’s a roof that requires replacement this summer. Alex Williams said he’s wondering what the quickest path to start paying for necessary projects is — even if it means incurring debt through one of the bond options.
“We’re unable to kick the can,” he said.
Hickman said in the hypothetical world where the board decides to take out bonds immediately to start projects, and the tax were to pass on the April ballot, funds from the tax could abate payment from those bonds.
“In that scenario, you’ve at least secured the projects for the summer,” he said.
Weikle said official recommendations to the board are expected in December or January.
Additional business
The school board also approved a supplier that will provide the district with five electric school buses, which Hickman said the district is hoping to get by the end of 2025. Unit 5 is using around $1 million in grant money from the U.S. Environmental Protection Agency's 2023 Clean School Bus Rebate Competition to buy the buses.
Meanwhile, during public comment, three parents and one student raised concerns over the recent cut of the double accelerated math program in the middle schools.
Lisa Cannivan, a mother of three and one of her sons — fifth grader Matthew — were among them. Both lamented the loss of the program, which Lisa Cannivan said came without warning to parents.
“Why are we cutting programs that challenge and support advanced learners?” she asked the board.
In a conversation after the board meeting, district administrator Michelle Lamboley told WGLT she thinks there might be a misconception about the district’s change in programming.
“There is still an accelerated curriculum,” she said, adding her goal after tonight is to help the middle schools better communicate the options to parents.
