District 107 residents getting tax break

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Updated: March 26, 2012 1:58AM

Property owners in Pleasantdale School District 107 will see a tax reduction this fall following the School Board’s decision to pay bonds at an accelerated rate.

The district will pay $750,000 to abate bonds for the 2011 tax year, in accordance with the Financial Advisory Team’s recommendation to the Board of Education. Superintendent Mark Fredisdorf stated that the board will likely adopt the measure as part of the consent agenda for a February meeting.

The impact of the tax abatement would amount to a reduction of $104.47 for properties with an assessed valuation of $300,000 and $178.62 for properties with an assessed valuation of $500,000.

Fredisdorf noted that Burr Ridge homes within Pleasantdale School District 107 have an average assessed valuation of a little more than $500,000.

Effects of the district’s decision to pay the bonds ahead of schedule will be felt by homeowners this fall in the form of a .112 rate reduction in the property-tax levy usually set at $1.540. This is a further decrease from last year’s .071 rate reduction as a result of the district’s $500,000 bond abatement.

School districts generally take out bonds in order to finance capital projects when sufficient funds are unavailable at the time, according to Fredisdorf. The bonds can result in a tax increase for homeowners due to the additional cost.

Fredisdorf stressed the value of paying the bond off in a timely manner.

At the projected payment rate, the superintendent stated, the district will be free of debt by 2018. He said the projection is subject to change given the need for further capital projects, such as renovations or repairs, but, according to Fredisdorf, there are no such projects expected in the “foreseeable future.”

While the district plans to enter the bid process this spring to get a quote on wall repairs for Pleasantdale Elementary School, the project, estimated at between $128,000 and $149,000, would not increase the district’s bond debt.

Fredisdorf commended the district’s ability to exercise fiscal responsibility in order to benefit taxpayers. He credited the district’s flexibility in its budget decision-making as the reason why it can pay its debts ahead of schedule.

He expects the board to employ the same strategy in upcoming years to save money for the district and property owners alike.