School Board Will Move $5 Million From Education Fund to Pay Down Debt

The Geneva School District 304 Board of Education will use almost $5 million from its Education Fund to pay down debt on bonds it issued in 2004.

The seven-member School Board unanimously passed a resolution Monday night to transfer $4,990,000 from the Education Fund to the Debt Service Fund.

According to a chart* provided by Assistant Superintendent for Finance Donna Oberg, that $4.99 million will be applied to the 2004A Bonds over three years:

• FY 2013-14: $298,136
• FY 2014-15: $3,230,973
• FY 2015-16: $1,460,891

* SEE CHART BELOW

What does that mean for you, Jane or Joe Taxpayer? It's hard to say.

This year, the owner of a $315,000 home should expect a $340 property tax increase. That was the number calculated when the School Board passed its levy in November, and Oberg said Monday night that number still holds.

What increases taxpayers might see in the next three years is beyond the crystal ball, but it's likely they will continue to rise. The payment due on 2004A bonds jumps from about $16 million in 2013-14 to about $20.3 million in 2015-16.

And that number continues to rise until 2020-21, when it maxes out at just short of $25 million. By that time, the abatement needs to be more than $10 million to "level out" the property-tax burden.

According to the District 304 website, voters approved spending more than $41 million in 2004 for a middle school building (Geneva Middle School North) and school improvements.

In 2007, voters said OK to almost $80 million for two new elementary schools and a maintenance building, the alteration, repair and equipping of school buildings and to make site improvements to existing school buildings.

New growth and development was expected to help pay down that debt, but when the economy and the housing market went south, the district had to find alternate funding mechanisms.

"That new growth was supposed to take on those payments," Oberg told board members during Monday's meeting. "Right now, we're trying to keep these payments (at steady levels) so that property taxes do not increase dramatically over the next few years."

In November, board members agreed to a 1.5 percent tax levy increase rather than the full 3 percent that would have been allowed under tax-cap legislation. Board members argued against a zero percent increase at that time, saying it would hurt efforts to pay down debt through abatement.

Abatement on 2004A Bonds

What bond referenda have the voters of the District approved?(posted 8/21/12)

• $6,000,000 approved in 1995 for a new elementary building and additions;
• $36,600,000 approved in 1998 for additions to school buildings and purchase of new school sites;
• $22,296,400 approved in 2000 for new elementary school, transportation building and school additions;
• $41,185,489 approved in 2004 for a middle school building and school improvements;
• $79,990,000 approved in 2007 for two new elementary schools and a maintenance building, alter, repair and equip school buildings and make site improvements to existing school buildings.

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