Tax Protest Suit Against Crystal Lake Grade School District – Part 3

Below is the third tax protest count against Crystal Lake Elementary School District 47.

The suit was filed by attorney Tim Dwyer.

DISTRICT 47 EDUCATION FUND – EXCESSIVE ACCUMULATION

In 2015, District 47 levied $52,545,000 for its Education Fund.

As of the end of the fiscal year June 30, 2015, District 47 had an Education Fund balance of $99,181,704.

Prior to its tax levy of $52,545,000, District 47 had at least $99,181,704 at the end of its last fiscal year for its Education Fund.

The $99,181,704, coupled with the levy of $52,545,000 amounts to $151,726,704.

The average annual three year expenses prior to the 2014 levy were $65,281,394.

The existing balance, coupled with the levy amount, represents more than twice the three year annual average of $65,281,394.

As such, the Education Fund levy is illegal, excessive and invalid.

Accordingly, the illegal levy rate of 3.321696 should be rebated to the Objectors.

Pleading in the alternative, at the time of the 2015 levy, the Education Fund had investments in excess of $51,000,000.

These invested funds were in the District’s Education Fund, and are investments that would not ripen until 2017, 2018 and 2019. Some of the investments would not ripen until 2024.

It is well-settled that a taxing body may only issue a levy for funds which are necessary for the ensuing tax year.

District 47 has breached this rule, and continues to tax its constituents for monies which will not be used, nor are they necessary, for the ensuing fiscal year.

Rather than using funds from previous Education levies, District 47 has made a willful decision to stockpile funds, for several years, in investment mechanisms, and then levy its maximum amount for subsequent years such as 2015.

As such, the 2014 tax levy for District 47’s Education Fund is illegal, excessive and invalid.

Accordingly, the illegal levy rate of 3.321696 should be rebated to the Objectors.

WHEREFORE, Plaintiff Tax Protestors, pray that the Court consider the matters raised herein, find, determine and otherwise adjudicate that the Education Fund levy adopted by District 47 is illegal, void and excessive as a matter of law, order that the McHenry County Treasurer issue rebate payments to the Tax Protestor Plaintiffs, award statutory interest pursuant to 35 ILCS 200/23-20, et. seq., and issue whatever further relief this Court deems just and appropriate.


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