WILMETTE – The Wilmette School District 39 Board of Education voted in favor 6-1 to extend the levy by 4.35 percent, or $2,193,233 million over the 2016 levy, after hearing from numerous residents on both sides of the issue.
Board member Tracy Kearney, who has been outspoken in her concerns over the district’s spending practices, voted against the levy. Kearney also moved to have the levy request reduced to 2.88 percent, but that motion was overturned 6-1, with Kearny the only board member voting to support it.
The levy issue has been a hot topic among many residents the last couple of months. Numerous residents spoke both for and against it at the board’s November 13 meeting. Additionally, the community group New Trier Neighbors published two advertisements on December 7 and December 14, asserting that District 39 schools can be fully funded next year without any tax increase.
But other school board members were leery to veer away from what was described by Gail Buscemi, business manager for D-39, as the district’s “standard practice” to extend the levy by the rate of inflation measured by the Consumer Price Index (CPI), plus estimated new construction within the village.
Under the Property Tax Extension Limitation Law (PTELL) passed in 1995, the district’s revenue is limited to the rate of inflation, plus an allowance for new property. The district can only raise additional revenue by going to referendum, as it did in 2011. Since that time, the district has aimed to maintain a fund balance of 30 percent — distinctly lower than other New Trier feeder districts that hold balances over 50 percent — and has the lowest per pupil expenditures than many other top-rated schools, including neighboring New Trier feeder districts.
The 2017 CPI estimated amount is 2.1 percent, which converts into an increase of $115.35 on a typical $15,000 tax bill, according to Dr. Lechner’s presentation at the meeting. The levy also includes an estimate of new property growth within Wilmette of $40.1 million. Cook County ultimately determines the final levy extension amount, which Buscemi predicts will be closer to 2.84 percent, or $1,485,976 over the extension in 2016.
A debt service amount of $1.2 million, a 4.57 percent increase from last year, is not part of the levy request, because it was previously approved by taxpayers, according to Buscemi.
Buscemi shared a number of charts looking forward five years, that changed the fiscal landscape for the district depending upon variables such as not extending the levy in 2017, or a potential two-year property tax freeze that is being considered by the state. Buscemi estimated that a one-year tax freeze would cause the district’s fund balance to dip below 30 percent by 2022. Likewise, if the district were to elect to freeze the levy in 2017, followed by a two-year state imposed property tax freeze, a three-year freeze would cause the district’s fund balances to dip below 30 percent by 2021.
Buscemi noted that if the district’s fund balances were to dip below 25 percent, the district would be placed on a financial watch list by the state, and the district’s bonding rating would be impacted, resulting in paying more to borrow money.
During public comment period, residents weighed in on whether or not the district should extend the levy. Many residents supported the levy extension, noting that families move to Wilmette specifically for the quality school system, and failing to extend the levy would hurt property values. “I want my property values to stay up. The surest way to hurt my property values is to cut funding to our schools,” said John Marshall, a Wilmette resident.
Dan O’Brien noted that he moved to Wilmette specifically for the school system and worried that not extending the levy would cause significant cuts to programming. “That will really hurt the quality of education,” he said.
Likewise, other residents expressed support of the school board’s efforts to spend conservatively. “In my opinion this district doesn’t squander its resources. It’s a wise steward of its funds,” said Erin Stone, a Wilmette resident.
But other residents pushed the board to abandon its long-standing practice of extending the levy, and consider the tax burden imposed on residents.
Kathy Myles noted that while other New Trier feeder districts may spend more money per pupil than Wilmette, its residents earn higher salaries on average. “We have a bigger middle class in Wilmette than Winnetka and Glencoe,” she said.
Myles and others worried that extending the levy was too much of a burden on taxpayers, who were already experiencing uncertainty under the federal tax bill. “When your property taxes are higher than your mortgage, you own a liability,” Myles said.
Mark Weyermuller was clear about his intentions. “I want to pay less taxes and I am not embarrassed to say it,” he said. Weyermuller noted raising taxes in Wilmette could contribute to the mass migration out of Illinois.
But the majority of board members were not convinced. “The way that we approach the tax levy now, while not perfect, has allowed us and will continue to allow us to invest in our capital,” board member Jon Cesaretti said. He pointed to using new construction money to support projects such as the addition and improvements to Highcrest Middle School the board is currently considering.
Other board members spoke about their roles as stewards and liaisons to the community. Board member Alice Schaff noted that as a steward of District 39, the board members have a responsibility toward the students in the district. “I think not extending the 2017 levy amounts to a cut in our education system” she said.
But Kearney urged the board to consider looking at spending cuts, as well as creating a budget before extending the levy (or not) based on that budget. She suggested the board consider only asking for the amount the district needs, rather than a larger amount based on the assumption that Cook County will adjust the levy to a lower amount.
All of the board members were in agreement that the outpouring of public input was invaluable, and improved the conversation. “I think this has been an exceptionally well researched and understood topic,” President Mark Steen said.
According to Steen, it has been five or six years since the board conducted a deep expense study. He said in the coming months the board planned to “sharpen our pencils” and see if it was possible to cut expenses without hurting programming.