District 112 Board Approves Maximum Tax Levy Hike

HIGHLAND PARK, IL — Despite its declining enrollment and shuttering schools, North Shore School District 112 board has approved the maximum allowable increase to its property tax levy. The district requested and received a 3.5 percent increase to the 2017 property tax levy following a public hearing last month.

State law limits annual levy increases to the rate of inflation measured by the consumer price index, which was up 2.1 percent this year, and collective bargain agreements with unionized employees also increase with inflation. Those salary increases account for most of the levy hike, which is expected to bring in just over $70 million, according to the district.

Chief Financial Officer Christopher Wildman explained that 91 percent of the district's funding comes from the levy. And even though the its costs are going down, along with enrollment and the number of staff and buildings, there's a lag time and the reduction doesn't show up after just one year.

"I don't think it would be a good idea for the district to not request ... the maximum [under the cap] based on just one year, two years, or even three years of falling enrollment because there's quite a lag in those expenditures," Wildman said at the board's Nov. 28 levy hearing.

Capital costs are another factor that increases District 112's costs relative to other neighboring districts that have managed to keep their levy flat, or lower it. Wildman said studies have determined the district has substantial deferred capital work to do on the schools that are not closing, as well.

"This is the primary reason we're closing two school buildings this year is to rationalize our staffing and expenditures relative to declining enrollment and be more responsible in how we're using the taxpayer's dollars – and it's a pretty big item." he said. "We'll be closing this building in the following year and, as you say, the impact of that we don't see until future years."

"We don't have any debt...We have been fiscally prudent," Wildman said, noting the district has not sought to increase its revenue through a referendum to increase ongoing taxes.

The levy was adopted by a vote of 6-0. Board member Alexander Brunk abstained.

There were no comments from the public to the board at the hearing.

» Watch the NSSD112 2017 Property Tax Levy Public Hearing

_{Top photo: District 112 Administrative Offices | Patch archive, Tim Moran}