Tax Protest Suit against CL High School District 155

Crystal Lake High School District 155 is also subject to a tax protest suit by attorney Tim Dwyer.

As with the other targeted tax districts,

  • McHenry County
  • Wonder Lake’s Harrison Grade School District 36
  • Crystal Lake High School District 155
  • McHenry Township
  • McHenry Township Road District
  • Algonquin Township
  • Algonquin Township Road District
Crystal Lake Central High School.

Crystal Lake Central High School.

The legal attack focuses on the high school district having too much money in the bank.

Crystal Lake Central High School.

Crystal Lake Central High School.

As part of the suit says,

While taxing officials are permitted a reasonable latitude in the accumulation of public funds to assure having funds on hand to meet legitimate expenditures as they occur, this discretion must not be abused.

No statutory authority exists for large accumulations to provide for possible emergencies, which may or may not occur, since emergencies engendered by unforeseen circumstances are amply provided for in the statute, and may not be anticipated, as no resource is ample to meet every emergency which could possibly occur…

The Illinois Supreme Court has repeatedly held that a tax levy can be made for the requirements for the ensuing year only, and may not be made to create a fund for possible future needs…

Absent a referendum, the accumulation of public funds beyond the actual requirements for the particular purpose for the ensuing year is illegal and contrary to the policy of the law, as well as being an imposition upon the taxpayer, depriving him or her of funds to which he is entitled.

Here is what the stadium seating looks from the street.

Crystal Lake South High School bleachers going up.

After the language used in all the tax protests comes the following:

In December of 2014 District 155 levied $72,467,500 for all of its purposes when it had ample funds to reduce or eliminate its levy and still ensure payment of all obligations within the ensuing fiscal year.

For the end of fiscal year 2013-14, District 155 reported to ISBE that it had cash on hand of $87,970,527.

District 155 is self-insured, and that Levy comes under the Educational Fund, according to the District’s audit.

The ISBE calculated that, based upon cash on hand of $87,970.57, District 155 had enough money for 374 days, or over one year.

In the event the number in the Comprehensive Audit is used ($112,475,430), District 155 had enough cash on hand for 478 days.

As of June 30, 2014, the District had cash and investments of $112,475,430 according to its own audit.

The entire Levy of the District was $72,467,500, and that levy constitutes 65% of the District’s revenue.

Taking the assets of the District on hand in 2014 ($112,475,430) coupled with the 2013 Levy, the District was to obtain $184,942,930, or more than 2 times the annual expenditures of the District.

This figure does not even include those resources and revenues obtained by the District via state aid, federal dollars, or student generated income, which encompasses 35% of the District’s revenues.

Given the case law with respect to the accumulation of funds, the District’s Levy is invalid in its entirety.

District 155 has been, and continues to accumulate funds in violation of Illinois law.

As of June 30, 2014, the District had more than enough monies on hand to fund all school programs comfortably without imposing any levy.

Nevertheless, District 155 increased its levy by more than two million dollars, in spite of the fact that the District had cash and investments totaling twice the amount of its average annual expenditures over three years.

Because District 155 had ample funds to pay for all of its 2014-2015 costs without any levy whatsoever, the 2014 levy remains invalid in its entirety.


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