Elmhurst D-205 Board Differs Over Tax Cuts

ELMHURST, IL — One Elmhurst school board member called the school district's financial situation "alarming." Two others said they were comfortable with it. Still another contended a colleague's assertion was "misleading."

At a meeting Tuesday, Elmhurst School District 205 board members took different views of the budget numbers they were given.

The issue at hand was whether to cut property taxes this year, a process known as abatement. Such a move would flatten the larger tax hikes from the debt for building projects.

At the meeting, a financial adviser gave the board a number of options on how much to cut taxes. One option called for no reduction.

Board member Jim Collins proposed the board go with an option that would mean a cut of $35 for a $500,000 house, with a total tax bill of $7,222. District-wide, the tax reduction would amount to $650,000, which the district's operating budget would cover.

But other members said they were uncomfortable with such a reduction. They noted the more than $17 million in cost overruns for building projects, a number that has quickly risen in the last few months.

The members also said they were against cutting the tax bill because they felt the district's cash position would plunge to an unacceptably low level. In May, the district's low cash point, its reserves would drop to $8 million. That amounts to 5 percent of the operating budget.

Board member Athena Arvanitis said the district's financial position was "alarming."

"The question is, are you comfortable with that, and I'll just speak where I'm at, and the answer is no," she said. "(The district's auditor) would like to see us in a stronger financial position. I don't disagree with him."

Collins said they come from different perspectives. Collins has been on the board for more than a decade, while Arvanitis was elected in April.

"When I joined the board, we were at zero," he said.

At the time, he said the district's negative slope curve made him "nervous as hell."

But he said he found the curve did not project what actually happened. Ten years into his time on the board, he said the district had $38 million in the bank.

"Having been through that 10 years, I have gained a greater confidence in our ability to raise revenue and collect property taxes," Collins said. "I have seen this through two major crises, yet the property tax revenue comes in. And I'm fine with a 5 percent fund balance. In fact, I'm fine with a little less."

Member Karen Stuefen said she was fine with reducing taxes for debt payments. She said that's what the board promised voters in 2019 before they approved a referendum allowing $168 million in debt for building projects.

However, member Courtenae Trautmann said the board never pledged to give tax reductions every year.

"To say we made a commitment to do this every year is misleading in my opinion," Trautmann said.

Stuefen responded, "We can agree to disagree."

Chris Whelton, the district's assistant superintendent for finance, recommended against a tax cut this year.

"It would definitely impact our financial projections and our financial picture, and we're trying to find a way to improve our financial projections," Whelton said. "These abatements are a minimal impact to the individual taxpayer, and they have a significant impact on our operating reserves."

Collins asked for the board to vote on the tax cut at the board's next meeting, which is in February. Members Trautmann, Arvanitis and Beth Hosler opposed such a vote.

Board President Kara Caforio said the board would take up the issue in February.