Crystal Lake TIFs Will Cost District 155 Taxpayers Minimum of $10 Million

High School District 155’s consultant Joe Christofanelli of the firm of Ernst and Young has conservatively estimated a net loss of $10 million should the two Tax Increment Financing (TIF) districts be approved by the City of Crystal Lake.

“The taxpayers will have to make up for the property taxes not paid by the TIFs,” District 155 Board President Ted Wagner testified. He said that the impact is $10-14 million during the 23-life of the TIF districts, if the properties are improved.

“The rest of the taxpayers will end up bearing this tremendous burden,” he continued. “We would challenge you to use other financing options.”

The school district, which covers Crystal Lake, Cary and Fox River Grove, hired Ernst and Young to figure out the impact of taking all increases in assessed valuation off the districts tax rolls for 23 years.

The prestigious consulting firm estimated that District 155 would lose more in property taxes. Having a lower assessed valuation, however, would increase the district’s state aid to education.

$10 million was estimated to be the net loss by the consultant.

The $10 million will still be collected by District 155. It just won’t be from the Main Street and Route 14 properties.

It will be from the rest of us.

District 155 and the other tax districts will just raise their tax rates for us so we can make up the difference for the foregone taxes.

Considering all the tax districts that will lose a significant part of their tax base, Ernst and Young estimates the total loss to be $30-35 million.

Besides the consultant’s testimony at the Tuesday night TIF hearing, Board President Ted Wagner delivered a prepared statement in opposition to the Vulcan Lakes/Route 14 and the Main Street TIF proposals.

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