McHenry County Blog

Although they are not going to be put in the mail until Friday, McHenry County Treasurer Bill LeFew’s web site has tax bills on the internet already.

At least they were when I tried about an hour ago.

I’m getting nothing when I try now.

The first screen on the McHenry County Treasurer's web site. One is supposed to be able to click on the top center button and get to a page where one can type in a person's name or address or Property Identification number and pull up the tax bill. I am told that once one reaches that page to put in less information than is requested. The zip code isn't needed, for example. I live on Meridian Street, but just typed the number and "Mer" and it worked. Must be too many people trying to access their tax bills now.

Here’s the place to go.

From the 2010 4th of July Parade in Crystal Lake.

I have done some Crystal Lake area comparisons and found two tax districts which bit the bullet and asked for the same amount of money this year as they got last year.

Drum roll, please.

Calculating from a neighbor’s tax bill, the tax districts worthy of praise in this trying economy are

• Crystal Lake High School District 155
• Crystal Lake Park District
• City of Crystal Lake

Their bills this year are about as close as one can come. All three are with hundredths of a percent of last year’s bills.

On the bill I examined, District 155 amounted to 25% of the total, while the park district was 4.6%.

From a percentage point of view, the booby prizes go to

• Lakewood for sticking its hands in taxpayers’ pockets to take an extra 10.7%
• Algonquin Township Road District, with an increase of 8.2%
• Crystal Lake Grade School District 47, which increased its tax take by 6.6%

Lakewood takes almost 14% of its Algonquin Township’s residents tax dollars.

The Algonquin Township Road District takes little in dollars, less than 2%. Excluding pensions half of the amount collected within municipal boundaries goes for city and village streets.

The Crystal Lake Grade School District, on the other hand, is the biggest part local ta bills.

Over 38% of the total. A six percent high is real money. $328 on the real estate tax bill from which the calculations in this article are based.

There was no election competition for the park district and high school boards. Maybe if there had been campaigns, the incumbents on the ballot would have bragged about being in tune with the economic times.

The high school board did have a citizens’ group looking at it, however. It’s called GAND Community Advocates. The “GAND” stands for the Grafton, Algonquin, Nunda and Dorr Townships in which most of District 155 lies). District 47 covers parts of the same townships. The group is now trying to bird dog the high school teachers’ union contract negotiations, but the school board is unwilling to make any details public.

No one running for the grade school board had any literature. If anyone was paying attention to what that taxing entity does besides its employees, it would be hard to document. One candidate lost; the others on the ballot won.

In Lakewood, an appointed incumbent lost for a two-year term. Taxes did seem to be an issue.

There are three types of school districts in Illinois--Unit Districts, which educate K-12, Grade School Districts (K-8), and High School Districts (9-12).

School districts take most of our property tax dollars.

It is fair to compare unit districts to unit districts.

These are how all schools were originally.

During the run-up to the 1870 Constitutional Convention, there was tremendous borrowing by local and state governments. It was the era of canals, but the railroads came quickly and made them unprofitable.

And that left lots of debt.

There were two reactions embodied in the 1870 State Constitution:

• state government was prohibited from selling bonds without passage of a statewide referendum
• local governments were prohibiting from borrowing more than 5% of their assessed valuation

Eventually, local tax districts like schools decided that 5% limit was too strict.

They asked the General Assembly to allow them to create more tax districts so they could borrow more.

By splitting unit districts into dual districts–grade and high school districts–an area could borrow twice as much money.

You can see what parts of McHenry County took advantage of that end run around the 1870 Constitution.

If you add a grade school rate to its high school rate, you will generally see a higher total tax rate than for surrounding unit school districts.

Because a high school teacher, State Rep. Gene Hoffman (R-DuPage County) pretty much wrote the 1973 Resource Equalizer State Aid to Education legislation, high schools ended up with a larger share of the financial assistance from state government than elementary schools.

That pretty much explains why high school teachers are paid more than grade school teachers…unless the elementary school teachers are in unit districts. In the latter case, the pay is equalized across grades.

If you look at the changes in the tax rates above and realize that probably all school districts are under their statutory tax rate limit, the reason comes to light.

Tax districts are limited by the Property Tax Cap (PRELL, as the professional tax folks call it) in what they can take from taxpayers.

They can get what they got last year, plus any increase in the Consumer Price Index, plus assessed valuation resulting from new growth or the end of a Tax Increment Financing district.

Virtually all tax districts levy to the max, arguing that, if they don’t they will “lose” that money forever.

By their very use of that rhetoric, one can see that they are not on the taxpayers’ side.

If they retained a taxpayers’ viewpoint, the “lost” tax dollars would be described as money the taxpayers would “save.”

So, most follow the taxeaters’ primal urge and tax to the max.

You will note that of the high school district that increased its rate the least was Crystal Lake’s.  Thanks might be offered to the Grafton-Algonquin-Nunda-Dorr Community Advocates. (GAND for short).  They pushed for not taking the max.

And the District 155 School Board actually listened and followed GAND’s advice.

The district whose rate increased the most was Huntley School District 158.  That’s because its board took as much as was possible.

Grafton Township, where most of the district’s assessed valuation is located, saw property values plunge more than anywhere else in McHenry County.  The housing bubble of the 1990′s and beyond just burst.

This is an interactive map in the original. (See link below.) Just click on an area and you will see how property values fared over the last year.

According to a Chicago Tribune analysis, prices decreased 14% in just the last year.  Note that the Barrington area had a similar drop in home values and its tax rate jumped almost as much as Huntley’s

Remembering the reciprocal formula, when assessed valuation goes down, tax rates must go up to raise the same amount of money.

Districts used to brag that their rates were going down.  What they didn’t tell you was that was not because of any local decision.  It was mandated by the 1992 Property Tax Cap legislation.

You will see no press releases from school districts or municipalities this year, just as you didn’t last year.  As was reported yesterday, the tax rates for all cities and villages in McHenry County, but Richmond, went up.

As far as grade school rates go, Crystal Lake’s increased the most–13.9%.

Richmond-Burton High School District 157 won the “prize” for increasing its tax rate more than any other high school district.

Chris Williams of  Grafton-Algonquin-Nunda-Dorr Community Advocates shares a request that Crystal Lake High School District 155 make public details of the most expensive part of the school budget–teacher salaries.

It comes on the rejection of the following Freedom of Information Request:

Chris Williams asks for "a copy of the Board's and IEA's other correspondences related to the teacher's contract under negotiation. Huntley D158 provided this transparency during their teacher's contract negotiation.

Here is District 155′s reply to Williams’ request:

April 27, 2011

Mr. Chris Williams
GAND Community Advocates
3951 Willow View Dr.
Lake in the Hills, IL 60156
crswms@comcast.net
VIA ELECTRONIC MAIL

Re: Response to FOIA Request – Community High School District 155

Dear Mr. Williams:

This letter is in response to your Freedom of Information Act (“FOIA”) request
dated April 19, 2011 and received on April 20, 2011 by Community High
School District 155 (“District”). You requested “a copy of the Board’s and IEA’s
offer correspondences related to the teacher ’s contract under negotiation.”
Your request is respectfully denied as records relating to collective negotiating
matters between public bodies and their employees or representatives
are exempt from FOIA (5 ILCS 140/7(p)).

Please be aware that our response to your request is pursuant to our understanding of your FOIA request. If we have misunderstood your request, please let us know as soon as possible so we may provide the correct information.

You have a right to have the denial of your request reviewed by the Public Access Counselor (PAC) at the Office of the Illinois Attorney General. 5 ILCS 140/9.5(a). You can file your Request for Review with the PAC by writing to: Public Access Counselor, Office of the Attorney General, 500 South Second St., Springfield, IL 62706.

You also have the right to seek judicial review of your denial by filing a lawsuit
in the McHenry County circuit court (5 ILCS 140/11).

If you choose to file a Request for Review with the PAC, you must do so within
60 calendar days of the date of this denial letter. 5 ILCS 140/9.5(a). Please
note that you must include a copy of your original FOIA request and this denial
letter when filing a Request for Review with the PAC.

Sincerely,

Jeffrey Puma
Freedom of Information Officer

The follow-up from Williams is below:

Subject: District 155 Teachers Contract Negotiations

Hello,

Thank you for giving our organization a voice in January 2011. GANDCA remains engaged in the D155 budget and taxpayer impact. We believe that our involvement has influenced the board to abate $2.5 million for FY12 in February 2011 from the tax levy, which they unanimously passed on December 14, 2010. It is also worth noting that D155 did not take the legally available 1.6% budget increase for the 2011/2012 school year as many other districts have; saving D155 property taxpayers ~1.2M. To date GANDCA believes that it has influenced a total D155 property taxpayer savings of ~$3.7M.

We have remained abreast of the teachers’ contract negotiations to the best of our ability.

On April 17, 2011, we shared with Jill Hawk our desire to inquire with the board at the forthcoming board meeting on the teachers’ contract negotiations to learn of the progress, any impact that the local and national teacher layoffs has had, as well as, the Wisconsin Governor, Scott Walker’s actions on the negotiations. It would be insightful to learn the mood and atmosphere. Jill Hawk has not replied to date.

We submitted the attached FOIAR and received the attached response, which we are inquiring with Lisa Madigan’s office to learn if D155 correctly interpreted the law.

We urge D155 to make the teachers’ contract negotiation dialog/offer public just as D158 did the last time around.

The public deserves to know how our school board proposes to spend out tax dollars, especially since District 155 teachers are already the highest paid in McHenry County.

The current economic and political environment is conducive to negotiate anything but the status quo contracts of the past.

The record property tax appeals are proof that the property taxes that support D155 are at the tipping point; D155 employees are included in those that appealed.

We are in the process of identifying all D155 employees that have filed for a 2010 property tax appeal with McHenry.

Please share if you are interested in meeting.

Chris Williams, President
GAND Community Advocates
3951 Willow View Drive
Lake In The Hills, IL 60156
847.340.8531

From Chris Williams:

GANDCA is making a positive difference.

Our articles in

• The Trib Local,
• The Daily Herald and
• NW Herald

and regular communications with the board have influenced the D155 board to reconsidered and reevaluate the tax levy they passed at the December board meeting.

Crystal Lake Central High School

The tax levy passed was basically repealed (abatement) at last night’s board meeting.

It’s worthy to also note that D155 did not take the legally available 1.6% budget increase for the 2011/2012 school year as many other districts have; saving D155 property taxpayers ~1.2M.

The district has been able to operate without a deficit despite the delinquent state contributions primarily due to the reserves for capital improvements.

In conversation, I was told that the forthcoming budget cuts and the outcome of the teacher’s contract negotiations will please us.

To date GANDCA has influenced a total D155 property taxpayer savings of ~$3.7M.

I know that our pursuit could feel thankless but it isn’t.

Be mindful that the vast majority in our community do not have awareness of how the economic storm/reset that started a few years ago is now rippling through the public sector, which directly impacts our community and us as property taxpayers.

The est. 10,000+ (see page 20) that have filed property tax appeals in 2010 thank you; although they are treating the effect and not the cause as we are they are nonetheless on our side.

With the forthcoming pension reform legislation being tabled and the likelihood that the current pension benefits will change, the eligible, prepared and astute educators are choosing to retire; locking in today’s pension benefits.

This is a pseudo early retirement package in that the experienced and expensive teachers will be replaced with less experienced and lower cost teachers which should reduce taxes next year.

There are a lot of positives happening here without adversely impacting the community or students very much or if at all.

What’s next for GANDCA and D155? We are going to continue our support for the board of D155, remain engaged and partner through bringing tough and difficult discussions/dialog as merits.

What’s next for GANDCA?

We will take a look at D47 and try to identify opportunities to reduce the taxpayer contributions without adversely impacting the community or students very much or if at all.

Last week, I wrote a little about a citizens group looking at Crystal Lake High School District 155. It’s been a long time since any taxpayers have taken such a look.

The new group calls itself GAND (for Grafton, Algonquin, Nunda, Dorr Townships) Community Advocates.

One of its leaders, Chris Williams, wrote the following comment under an editorial endorsing State Rep. Jack Franks’ call for an end to legislative pensions.

In the comment section   is the following comment from Chris Williams about Crystal Lake High School District 155:

I am glad that our public pensions are getting the attention that they deserve. Please let me invite your attention to the public salaries that we pay through our property taxes which many of us appeal to address the effect not the cause. Here’s an example (Crystal Lake D155):

• The average full-time teacher compensation is $98,543 range from 43,903 to $180,979 with 40%+ at $100,000+ contrasted to the average median household income of $94,287 where 69% are dual income households; source: www.isbe.state.il.us.
• The total administration compensation for the 25 administrators is $4,081,432 with the average $163,257 range from $138,396 to $250,326.
• The D155 contributes 9.8% to pension and 100% healthcare premium; avg./headcount for teachers $16,500 and administrators $28,500 (source: www.isbe.state.il.us).

Williams can be reached at gandca@comcast.net.

Showing that he is making progress penetrating the Crystal Lake community is Trib Local reporter Lawerence Synett’s article on a new group looking at High School District 155.

I sat next to Scott Smith, one of the organizers of the group calling itself GAND (for Grafton, Algonquin, Nunda, Dorr Townships) Community Advocates at the Congressional Town Hall Meeting last week.

TribLocal reported the immediate goal of the group, according to founder Chris Williams “is to try and prevent the district from deficit spending.”

Chris Williams can be reached at gandca@comcast.net.

He told me that he was an active member of the Reform Party and had done some research on District 155. I asked him to send to me. You can see it below (click to enlarge the images):

Here is a comparison for the Crystal Lake High School, Huntley Unit District and Barrington Unit Districts. There are also comparisons for the McHenry and Schaumburg High School District, plus the Woodstock Unit District with which I am having formatting problems.