Members of the Community Unit School District 7 Board of Education unanimously approved a property tax levy request of $3,695,200 during the board’s regular monthly meeting on Monday, Dec. 18. The levy will be filed with the Macoupin County Clerk, who will set the final tax rate of 2023 property taxes payable in 2024.

In other action, the board debated a state-recommended policy dealing with book banning and voted to abate the 2023 tax levy by $75,000, representing school facility sales tax funds used to pay down previously issued capital improvement bonds, and approximately $200,000, represent school facility sales tax funds used to service $1.6 million in alternate revenue bonds issued earlier this year for capital improvements.

The vote to approve the 2023 tax levy came after a one-minute public hearing during which none of the board members had questions or comments, and no members of the public appeared. Supt. Shane Owsley had presented a detailed analysis of the proposed levy during the board’s November meeting.

“It’s important to remember that what we levy is the amount we are requesting,” Owsley told the board. The extension (the amount the school district actually receives) is almost always less than the levy request. Last year, for example, the board levied $2,645,707 but received an extension of $2,480,944.

Among the unknown factors affecting the tax levy is the district’s finalized equalized assessed valuation for property taxes, Owsley noted. Over the past eight years, the EAV has decreased by as much as 3.1 percent and increased by as much as 10.31 percent. The EAV has increased consistently since 2016, Owsley noted, and the average annual increase has been slightly more than 3.5 percent.

Owsley said he anticipates the increase in the EAV to be close to the historical average but to ensure the district captures all of the revenue to which it is entitled, the new levy assumes an increase in the EAV of 10.5 percent. Owsley said the district can safely overestimate the increase in the EAV without risking “overtaxing” resident property owners because of limitations on the tax rates for specific operation funds.

Failing to capture additional revenue resulting from increases in the EAV would cost the district money in the future since future levies will use the previous year’s extension as a starting point.

The tax levy is further limited by the Property Tax Extension Limitation Law (PTELL), which was approved by Macoupin County voters in 1995. Commonly known as tax caps, PTELL limits the increase in the extension to five percent or the Consumer Price Index, whichever is less. For 2023, the CPI, which essentially is the rate of inflation, is estimated at 6.5 percent, meaning the district should be able to capture a full five percent increase in the tax extension.

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The 2023 property tax levy requests $3,695,200, compared with a previous year’s extension of $3,321,979. Because of the five percent PTELL cap, however, the district expects to realize an extension of $3,446,821—nearly $250,000 less than the levy.

Broken down by individual funds, the new levy requests $1,650,000 for Education, while expecting to receive $1,544,656. For Operations and Maintenance, the levy seeks $435,000 but expects revenue to be limited to $404,036. The levy seeks $173,400 for Transportation while expecting an extension of $163,683. A total of $40,950 is levied for the Working Cash fund, but the extension is expected to total an estimated $37,142. The district is levying $114,000 for the Illinois Municipal Retirement Fund but expects an extension of $107,633. The levy seeks $102,500 for Social Security, while the district expects an extension of $97,368. The levy calls for $229,750 for the Tort fund, while the district expects an extension of $219,032. A total of $31,250 is levied for Special Education, while an extension of $29,921 is expected. The Bond and Interest levy is $918,350, with an expected extension of $843,350.

Property tax revenue represents less than 20 percent of the district’s annual budget, which is in excess of $20 million. The additional funding comes from state and federal sources, along with revenue from the county’s school facilities sales tax.

In a related matter, Owsley told the board he is again applying for a state property tax relief grant that would allow the district to abate upward of $760,000 in property taxes. The district has previously unsuccessfully applied for the grant, and Owsley said the odds of receiving the grant are minimal.

The Superintendent said the grant is awarded on the basis of need and typically is awarded to the top 30 applicants. Some districts, however, do not apply, allowing districts like CUSD 7 to move up on the list. Last year, Owsley said, CUSD 7 was 103rd on the list of applicants.

PROPERTY TAX ABATEMENTS

The board voted unanimously to transfer $75,000 from the School Facilities Sales Tax Fund to the Bond and Interest Fund to service existing bond debt for capital improvements and abate the district property taxes in the amount of $75,000. The board also voted unanimously to abate property taxes in the amount of approximately $200,000, representing School Facilities Sales Tax funds that will be used to service a $1.6 million alternate revenue bond issue approved earlier this year to finance capital improvement projects.

Owlsey said the board will be asked to approve the alternate revenue bond abatement annually for the life of the bond issue. In essence, the action provides an option to levy taxes in the event the district is no longer receiving revenue from the School Facilities Sales Tax program.

BANNED BOOK POLICY

The normally routine adoption of school policies recommended by the State Board of Education sparked a brief discussion about a policy establishing policy toward book banning in school libraries. Responding to questions from board member Weye Schmidt, Supt. Owsley said the ISBE offered two options for the policy—one prohibiting book banning and one allowing the district to follow the practices of the American Library Association. The policy presumably is a response to an upsurge in requests to ban school texts and library books in some states and communities.

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Schmidt said he preferred the option of relying on the ALA because it apparently would provide some latitude in restricting books on the basis of age appropriateness.

Board member Peyton Brent said state law set to take effect Jan. 1 will prohibit book banning in all state-supported libraries. Since school libraries receive state funds, he said they presumably would be subject to the new law.

Owsley recommended adopting the entire list of policies, opting for the ALA version of the book-banning rule, on the assumption the ISBE will provide a revised policy reflecting the new state law at a later date.

PERSONNEL

The board voted 5-1, with Dennis Tiburzi voting “no,” to reassign Donnie Allen to the position of high school men’s track and field coach and post the high school women’s track and field coaching position as vacant.

The board also unanimously voted to approve a maternity leave for high school paraprofessional Darian Gill, to run Jan. 3 through April 3, approve the retirement of Jody Dunn to occupy 56 days into the 2026-27 school, and post a vacancy for a BenGil Elementary School music teacher.

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