From a comment of Cary Grade School Board President Scott Coffee under the story about costs and benefits of consolidating local governments.I reviewed the Village’s financial analysis from their board packet and have a few observations.
The operating savings of $396K are generated mostly through headcount elimination and salary/benefits reduction and yet they indicate that the new positions would all be covered by the union contract.
This sentence is curiously worded: “In addition to operational cost savings, District customers would receive savings through the elimination of the current District property tax levy of nearly $600,000.”
Its written in a manner that seems to indicate that it is an additional benefit in addition to the operating expense savings.
Leaving all other variables unchanged, it seems the Village is signing up to create a deficit of $204K (Lost levy revenue of $600K partially offset by expense savings of $396K).
The analysis indicated that the current sewer rates would remain unchanged.
One might suppose that the current rates would need to rise in order to offset the net effect of losing the levy.
I did not notice any analysis of the impact of moving to a revenue model which has been a blend of usage rates and levy revenue based on EAV, to a model based only on usage.
A condition exists today where a higher priced home essentially pays more for sewer than a home carrying a lower EAV due to the levy component.
If, in general, those properties located in CL and Huntley are higher priced homes as compared to the average LITH home, those residents will see a benefit to the changeover in this model and the average LITH home owner will be absorbing the offsetting cost.
Of course the reverse could be true if the CL/Huntley homes carry an average EAV lower than LITH.
One would need to run the numbers.