Today's News - November 24, 2008

Erica Sanders of Waterloo is recovering from serious injuries sustained Saturday morning in a one-vehicle accident on Route 156, the Valmeyer highway. Sanders, 35, was driving a 1999 Chevy Blazer westbound on Route 156,. According to the Illinois State Police report, at 2:11 a.m., as she approached Deer Hill Road, Sanders lost control of the vehicle, it went off the roadway, drove over a sign and rolled several times before coming to rest. Sanders was ejected from the vehicle. The Monroe County Ambulance Service transported her to the ambulance garage in Waterloo. An Arch helicopter then flew the victim to St. Louis University Hospital. She received tickets for failure to reduce speed to avoid an accident and not wearing a seatbelt. Her current condition is not known.

An individual lost control of their vehicle Sunday afternoon on Route 156 and landed in pond near Foster Pond. The driver was able to safely exit the vehicle before it became submerged. Scuba divers were called to the scene to hook up chains to the vehicle so a Quality Collision tow truck could pull it out of the water.

Waterloo Superintendent Helton Addresses Issues Regarding 2008 Levy

The Waterloo School Board will hold a public hearing tonight, Monday, Nov. 24, at 7 p.m., at the WHS library. The school board will discuss the 2008 Tax Levy, which is expected to be a 12.47 percent increase over last year. WCUSD Superintendent Jim Helton said this is a standard procedure regarding their annual budget needs for next year’s school year. He also believes there has been some misinformation distributed to the public. Monday afternoon, Helton released the following press release regarding the 2008 Tax Levy:

This document is in response to the misinterpretation of the “Notice of Proposed Property Tax Increase for Waterloo Community Unit School District No. 5”.

“I was informed that the increase the Waterloo School District is requesting is voted on ONLY by the school board…the actual people who are asking for the increase!”

(Excerpt from flyer distributed by anonymous person)

That statement is incorrect…it is not a “tax increase”…it is our levy.  Let us explain…

Waterloo CUSD5. Enrollment: 2,806; Recipient of 2008 SchoolSearch “Bright Star” Award for Educational Excellence (last 11 years straight).  Awarded to school districts whose academic performance is in the top third, but expenditures in lower one-fourth.    (1 of 82 school districts in Illinois/out of 871)…our instructional expenditures fall an average of $1,450 less per student than the state average. Even with that fiscal conservatism, FY 08 is the first year, since 1998 that we had a “balanced budget”…. we have a reputation for spending wisely.

1. Illinois schools draw revenue from local, state, and federal sources.  The state’s overall share of school revenue (which reached 48% in the 1970s) is now under 40%, while the federal share is approximately 10%.  In Waterloo, the state’s share is only 32%, the federal share is 4%, and the local taxpayers have to pick up the remaining 64%.

2. School districts receive general state aid on a sliding scale based upon the amount of local property tax resources available to support a student’s education.  The current General State Aid foundation formula was implemented in 1998 to “equalize the funding” within the state…. but that “equalization” only works at $6,974 per student….the state funds $5,959; over $1,000 LESS than required.  General State Aid is based upon the average daily attendance from the previous school year.

3. Federal programs depend upon congressional appropriations and much federal assistance is based upon a poverty designation.  Waterloo has a comparatively low poverty designation and receives low amount of federal revenue.

4. The total assessed value of property within a school district determines how much property tax revenue the district is capable of raising.  The total assessed value (AV) is translated to an equalized (E) taxable value that is about 1/3 of fair market value after any county or state equalizations are performed.  The resulting value is called EAV.  We cannot determine the EAV percentage increase, but only predict using historical data.  The levy must be high enough to capture the value of new property, so that the value will not be lost.  New property 1) reduces the tax burden for existing property owners; 2) increases the amount of property tax available; and 3) generates a stronger base EAV for future years.

With that in mind, the public notice does not imply that

Waterloo Community Unit School District No. 5 is raising taxes 12.47%.

1. By law, Boards of Education must take action on a specified timetable each year to certify the amount of revenue required from local taxes.  The Illinois School Code guides the filing of the levy.  This timetable must be filed with the county clerk no later than the last Tuesday in December. That is the notice filed in the papers and adopted on November 24, 2008.

2. When the Board of Education consider the levy, they are looking at the next school year.  The levy filed in December will produce the tax revenues to be received in the following summer and fall.  Boards act without knowledge of what school tax rate the levy will produce, and what revenue it will generate.  In order to ensure full revenue from the district’s maximum tax rates, the district predicts the equalized assessed valuation (EAV). 

3. The 12.47% increase for 2008 over 2007 is projected “just in case” the EAV increases that percent.  In 2007, the EAV increased 12.53%.  The district must ensure full revenue from the district’s maximum tax rates (established by law or referendum):

• Educational                                      2.19

• Operations/Maintenance                .50

• Transportation                                  .20

• Working Cash                                  .05

• Fire Prevention/Safety                    .05

• Special Education                           .04

• Leasing                                              .05

• IMRF/Retirement Social Security .17

• Tort Immunity                                   .18

• Debt Services (Bonds)                    .68

The estimated total school rate will be approximately $4.11 per $100 of assessed valuation.

4. The debt service has been established.  The payouts were predetermined at the time of sale.  The debt service levy captures available EAV, as well as known structure within the bond sales.

There is no conspiracy against the local taxpayers.  As a matter of fact, when you think about predicting the revenue side of next year’s budget, it is difficult when: 

• General State Aid (GSA) uses the previous school year’s student attendance

• Under-funded General State Aid formula by $1,000 per student

• (By GSA formula) the higher the EAV the lower the General State Aid

• Property tax bills from year-old property assessments

Significant challenges face our school officials making decisions about “best” educational practices for children.  Each official is challenged to carefully evaluate the appropriateness of revenue requests, expenditures, and contingency funds when providing for current needs and future events.  Value-based decision-making is critical for the educational and fiscal health of Waterloo Community Unit School District No. 5.