Bond Issue = Property Tax Increase
Lisle Park District Board of Commissioners is scheduled to discuss and vote on an ordinance that will increase the debt of the District by $1.1 Million and push the debt limit ratio for non-referendum debt to the statuary limit of 0.575. The meeting is tonight, Feb 20, 2014, at 7 pm.
The Park District's non-referendum bond limit is set by State Statute at 0.575 percent of EAV (equalized assessed valuation). Non-referendum bonds are payable from a property tax debt levy and do not require the approval of the voters in the District. The EAV, the assessed value of taxable property in the District, has been falling since 2008. As the EAV drops, the dollar amount of debt the District is allowed to carry also drops.
At the end of FY 2012, the Lisle Park District reported $14.3 Million in total outstanding debt to the State of Illinois Comptroller's Office. The Park District informed Lisle Watchdog that their report for FY 2013 has not been completed.
A FOIA request seeking information on the use of bond proceeds and the projected debt ratio with increased debt and lower EAV was submitted on Feb 18, 2014 shortly after the agenda with the proposed bond issue was posted online that day. A response has not yet been provided.
*** Update: As of 5:30 pm on the day of the vote, the Park District did not respond for records that identify the specific capital projects that would be funded with these bonds funds.***
The debt service tax levy for the Lisle Park District accounts for approximately 25% of the total property taxes levied and collected by the District.
2002 Pool Bonds
Included in this debt service tax levy are taxes to repay bonds that were approved by taxpayers at the polls back in 2002 for the complete overhaul of Sea Lion Aquatic Park. Voters approved a $7.8 Million bond issue to borrow money to renovate the pool and the pool was reopened in 2004. In 2010, the Park District reissued those pool bonds extending the repayment period. The Park District asked voters to support the measure for a defined specific project which would increase property taxes and the voters approved.
2008 $21.9 Million Bond Referendum for New Community Center Fails
In 2008, the Lisle Park District went back to the voter seeking approval to borrow $21.9 Million for a brand new community center. About 60% of the voters said "NO."
2010 $7.25 Million Non-Referendum Bonds
In 2010, still feeling the sting from the rejection from the voter in 2008, the Lisle Park District issued $7.25 Million in non-referendum bonds without asking voters. Portions of the bond issue were used to purchase and renovate an existing office/industrial building in the College Park Industrial Park and convert it to Park District offices and to move the preschool from Meadows to the new building. The building, which was vacated by MicroSun Technologies move to Woodridge, was removed from the tax rolls upon purchase by the Park District further reducing the EAV.
The District did not ask the voters at the polls to approve this new debt (perhaps fearing that the voters would again say "No?") The District levies taxes annually to pay the principal and interest payments for these bonds in addition to the pool bonds.
2014 $1.1 Million Non-Referendum Bonds - Proposed
The proposed $1.1 Million bond issue on the agenda for tonight's meeting is different than the 2002 Pool bonds.
- The District has not provided taxpayers with an outline of specific capital projects that will be funded by the proposed $1.1 Million bonds.
- The District did not put the question of borrowing more money to the voters at the polls.
Is the Park District borrowing for the sole purpose of having the ability to borrow and raise revenue?
The District is permitted to use the funds from these bonds for annual "maintenance" expenditures - expenditures which should be funded, planned and budgeted for in the general operating budget. The regular tax levy, however, is subject to a tax cap. One way for the Park District to raise taxes higher than the tax cap is by issuing new debt. This allows the Park District to utilize the general operating funds to increase salaries/benefits and use the debt funds for annual maintenance.
One thing is the same though..
This proposed bond issue will raise both the property tax levy and property tax rate.
Transparency Issues
Minutes of the Dec 19, 2013 monthly meeting of the Park Board of Commissioners document that a public hearing was called regarding a much lower proposed bond issue of $200,000.
Is is unclear how the proposed bond amount escalated 5-fold after the hearing to $1.1 Million. (Interesting how these hearings for tax levies and bonds are always held really close to the Christmas holiday making it inconvenient for public participation, isn't it?)
History of Lisle Park District Property Tax Rates for Debt Payments:
Tax Year Tax Rate for Debt
2003................0.1085
2004................0.1031
2005................0.1006
2006................0.0959
2007................0.0945
2008................0.0931
2009................0.0975
2010................0.1047
2011................0.1144
2012................0.1247
2013................bills to issued April 2014.
Lisle Park District Property Tax Rates are Higher Than Neighboring Communities.
The high property tax rate levied by the Lisle Park District is one reason that property tax rates in Lisle are higher than neighboring towns.
District 2012 Tax Rate
Lisle Park District 0.4875
Naperville Park District 0.3148
Butterfield Park District 0.3544
Downers Grove Park District 0.3853
Glen Ellyn Park District 0.4114
Contact Elected Officials: HERE
Coming Soon... Lisle Sea Lion Pool Attendance reaches 5 year low.