Hinsdale D181 Casts Doubt On Clarendon Hills Plan

HINSDALE, IL – Hinsdale School District 181's board is expected to vote Monday on a Clarendon Hills proposal that would divert property tax dollars from the district.

In its proposal, the village argues a special tax district that would generally be along 55th Street would benefit the community in the long run.

But a District 181 memo said the schools would lose between $1 million and $3.2 million in potential tax money over the life of the tax increment financing district, or TIF. The amount depends on the pace of growth in the tax district.

The money would go toward projects in the tax district, not the schools, the memo said.

Now, the district generates about $150,000 a year in property taxes in the area of the proposed tax district.

This summer, Hinsdale High School District 86 has taken the lead in the opposition to the tax district. Its board voted unanimously last month against the TIF.

At the same time, the village and District 86 said they were open to some type of tax-sharing deal.

According to the District 181 memo, the village shared a proposed agreement, but the document was drafted for another school district and District 181 officials have not been "directly engaged."

District 181 also said the village would have significant discretion over what is considered incremental tax income, which District 181 said was at the core of any compromise.

Additionally, District 181 said it was unclear why homes in District 181's boundary area were included in the TIF proposal.

A committee of local taxing bodies is set to meet Wednesday to vote on Clarendon Hills' proposal.

Under state law, if a majority of taxing bodies vote against the proposal, that would require a three-fifths super-majority of the Village Board to make the district a reality.

After a TIF district is established, the money generated from the growth in the property tax base would go to the district itself. Under state law, that money can be invested in projects in the district that spur development, benefitting the local economy in the long run.

Under state law, schools and other taxing bodies would not receive any of the growth in tax money over 23 years. The argument is that a TIF would stimulate enough development that other bodies would benefit in the long run.

Late last week, District 86 indicated it joined forces with District 181 and Maercker School District 60 in dealing with Clarendon Hills' proposal.

A couple of weeks ago, Patch wrote a story about Clarendon Hills' case for a special tax district.