ISSUES: Finances

I understand the importance of running a taxpayer funded operation in the best interests of its constituents. I will continue to advocate for utilizing taxpayer funds resourcefully, responsibly, and transparently.

The argument around the tax increase can be explained by facts and data. First, Elmhurst residents should be aware that the District already has $47 million in a reserve fund (about 1/3 of our current annual spending). The District should tap into the reserve before asking residents, yet again, for additional funds. This is probably among the reasons Jim Collins voted no on the tax levy. Additionally, the District capital project ran over budget by $21 million. That’s not a small number. There was no explanation that I saw that provided a line-item list of things that caused the projects to run significantly over budget. Was it material cost, labor, contractors under bidding etc? Good information for Elmhurst taxpayers to know? I think so. In his presentation, Chris Welton, the District’s Assistant Superintendent of Finance and Operations, explained that the District will pull $7 million over the next three years from the Education Funds to cover the deficit. Second, the data (actual D205 data and U.S. Bureau of Labor data) shows District spending has far outpaced the rate of inflation for the past 10-years, more so when the capital spending is included. It moves cost per student from nearly $17k to $22K. It is also important to note that the District is capped at 5% tax increase by law. They would have raised it more if they could. Elmhurst residents should anticipate another 5% next year. Lastly, the data shows home sales slowing significantly in Elmhurst in 2022 (ask your realtor friends) but the average cost of a home up significantly. In these financial conditions, who’s buying in Elmhurst, a community that’s “For Everyone” …..the demographic data will show high income, dual-income families.

D205 Expenditures from July 1, 2021 – June 30,2022 ($ Millions)

D205 Funding from Local, State, Federal ($ Mill)

D205 Spending per Student 2010-2022

Cumulative % D205 Spending vs. CPI Inflation 2011-2022

Cumulative % D205 Spending (no capital improvements) vs. CPI Inflation 2011-2022

Effective Property Tax Rate Game

• Calculation of Property Tax Rate is NOT the same at Income Tax Rate
  Income tax reduction will save you money
• Property tax reduction will either keep amount of taxes the same or even increase it

Example:

• $500k home assessed value at 2% property tax rate = $500k x 0.02 = $10,000 tax bill
• The city/library/school system wants your $10,000
• If your $500 increased in value to $600k assessed value, at 2% property tax rate, you will pay $600k x 0.02 = $12,000 tax bill
• The school board could “reduce” you property tax rate to 1.75%
• You think your taxes are going down. Board promotes the fact they “reduced” your tax rate by 12.5%
• Your tax bill = $600k x 0.0175 = $10,500
• In fact, you will pay $500 more even with a reduce rate

D205 Tax Rate vs CPI 2012-2021

Property Tax Assumptions

Surplus

• Education Fund balance
  – June 2021 = $45.6 million
  – June 2022 = $53.7 million
  – Net $6.8 million surplus in the 2022 budget before tax increase
• New 5% tax increase gives us $8.0 million in new local revenue
• We are shifting $7 million per year for 3 years for construction overages
• Estimate reserve fund will be ~ $54.7 million