D122 Tax Burden Eased After Debt Refinancing

Facing a potentially large tax increase, the New Lenox District 122 school board took steps to lessen the burden on taxpayers. The board approved an estimated tax levy Nov. 16 and also voted to refinance the district's debt.

The average homeowner will give about $15 more to District 122 through property taxes than last year, but it could have been much more if not for the new debt structure. Last year, for example, the average tax bill increased $100.

"We need to ensure that a high standard is maintained, and we remain responsible to the parents and taxpayers," board President Nick DiSandro said.

Originally, the district structured its debt repayment for new buildings  with conservative estimates based on assumed growth from new families and taxpayers. Then the economy tanked and tax and interest rates ballooned.

The district's plan involved paying off debt through 2027, and the tax levy for debt service would have increase from about $8.3 million in December 2010 to about $12.1 million by December 2013.

The to save taxpayers money in the short term and hope that new growth helps share the cost later. The scenario approved Nov. 16 will increase the district's tax rate just 1 cent for the next three years and 2 cents for the following three years.

Without this refinancing, the average resident's tax bill could have increased by at least $95 next year.

However, this plan adds about $20 million in interest owed by the district, which concerned some members. Maureen Broderick and Sue Smith were the only two dissenting votes. Smith also voted against the estimated tax levy, which passed 6-1.

*Figures for 2011 indicate the proposed levy amount and the estimated amount that will actually be collected.

There will be a public hearing on the tax levy before it's officially voted on at the start of the board's next meeting, which is at 7 p.m. Wednesday, Dec. 16 at the .

Other Taxing Bodies

Village Anticipates Minimal Property Tax Increase, Stresses 50% Rebate

Lincoln-Way District Proposes Slightly Lower Tax Levy Than 2010