Right On Time, Elmhurst Keeps Promise To Schools

ELMHURST, IL – Eleven years ago, the Elmhurst city government and the local school district struck a deal on a special tax district along North York Street.

The agreement required the city to give 10 percent of the property taxes generated from the additional tax base annually to the district and other local taxing bodies, starting in the 11th year.

On Tuesday, the city presented its first check at a school board meeting. It was for $141,000.

In 2013, because of the deal, the city set up the tax increment financing district, or TIF. Under state law, the city can freeze the tax base in the district for 23 years and get any property taxes from additional property value gained over that period. That money can only be used for the benefit of the neighborhood in question.

This can only happen if other taxing bodies agree. So towns often must negotiate approval from school districts, which take up much of property tax bills.

The idea behind tax districts is that the invested money spurs development, benefitting the local economy in the long run.

"There are a lot of districts where there's contention because it may affect school districts and what they get," Mayor Scott Levin told the board.

Levin, who was elected in 2021, remembered helping negotiate the agreement when he was acting mayor for a short time in 2013.

Levin noted the city and school district have had difficult times in their relationship. (2019 was a low point.)

"For the three years I've been in, we have had a very, very good relationship between our board, your board, our executive, your executive," the mayor said. "When that next TIF comes along, I know it will be so much easier."

School board member Jim Collins, who joined the board 15 years ago, said the agreement was a good example of cooperation between public bodies.

"It's an agreement that helps the city accomplish their goals for economic development, and it's fair to our school district, students and taxpayers," Collins said. "In my opinion, it helps our city to become a better place to live."

In 2021, the North York district generated $1.6 million for the city. Over the last two years, the amount has gone up $100,000 annually.

By 2025, the annual amount is expected to be $2 million, meaning the school district would get $200,000.

The tax increment district includes Mariano's grocery store, which opened a few months after the agreement was signed.