Lee Co. error creates budget snafu for Mendota schools

Bonnie Morris and Jennifer Sommer
Posted 9/28/17

MENDOTA – Due to what was described as a “human error” in Lee County, Mendota’s two school districts both learned that they would not receive a sizeable amount of tax revenue from that county - at least during this fiscal year.

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Lee Co. error creates budget snafu for Mendota schools

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MENDOTA – Due to what was described as a “human error” in Lee County, Mendota’s two school districts both learned that they would not receive a sizeable amount of tax revenue from that county - at least during this fiscal year. Mendota High School District 280 will get $201,928.86 less than expected for the fiscal year 2018 budget and Mendota Elementary District 289 will have a loss of $188,000.

Board members of both districts learned of the mistake during their respective budget hearings last week. On Sept. 20, MHS Superintendent Jeff Prusator opened the high school’s budget hearing by advising the board of the unusual situation. “Last month, we showed about a $40,000 surplus [in the tentative budget] but because of an error out of Lee County - I’m not exactly sure what the mistake was - but they are short $201,928.86 that should come to us,” he explained. “Everything we did with the tax levy was correct but because of human error, we’re going to be short $201,928.86.”

After learning of the mistake, Prusator called the Lee County Assessor’s office and county clerk as well as the Lee County Chairman and demanded that they send out a corrected tax bill. “They considered it but this week the county clerk called back and said state law does not allow them to send a corrected tax bill,” he told the board. “There’s no way around it.”

Although the error now puts the high school’s overall budget in the red, Prusator said fortunately the district has enough reserves to survive. He also assured the board that the high school would eventually get the money owed but not until the next tax year.  

Prusator noted that the tax rate for Lee County was $2.93 last year and this year, the rate dropped to $2.45. To make up for the mistake, next year taxpayers in Lee County will see a huge increase. “If you live in Lee County in the MHS district, your tax rate is going to go from about $2.45 to $3.30 next year to make up the difference. When people get their tax bill . . . they’re going to say what the heck is the high school doing?” he pointed out.

Lee County has agreed to send a certified letter on Oct. 1 to every taxpayer in Lee County that was impacted by the error and explain that it was a mistake made by the county and also inform them what will happen next year. Prusator noted that this error affected not only the high school but also Mendota Elementary and the Earlville School District because those three districts have EAV in LaSalle County and in Lee County.

“I still have concerns about next year when people get their tax bill,” Prusator said. “I just want to make sure the people in West Brooklyn and Compton understand why their taxes this year were down quite a bit and why they’re really, really going to go up next year. And it’s not going to be because of what this board is doing.”

Board member Jim Strouss suggested that since it was Lee County’s mistake, Lee County should get a loan and pay the money they owe to the school districts. “They’re still liable to pay what they owe,” he commented.

Prusator agreed saying the high school’s auditor had also offered that suggestion. “If a loan isn’t a possibility, we’re going to lose some interest money so perhaps we should request that we get the money plus interest if we have to wait until next year,” he said.

With passage of the new school funding law in Illinois, some long awaited stability finally seemed to be within grasp, Prusator said, frustrated with this new snag. “We finally have an idea of what money we’re going to receive from the state but now for two more fiscal years our budget is skewed,” he pointed out. “This year it shows a $200,000 deficit and next year, it will show a $200,000 surplus so we won’t look at our real budget until 2020.”

Following the hearing, MHS board members Jim Lauer, David May, Jim Strouss, Jason Stewart, Matt Hanaman, Jason Motter and Jim Sundberg approved the FY18 budget. They also approved a motion made by Strouss to send a certified letter to Lee County stating that non-payment of the tax revenue is unacceptable and asking that Lee County pay the $201,928.86 it owes District 280.

MENDOTA ELEMENTARY

The Mendota Elementary board seemed just as frustrated by the 2016 tax levy calculation error as the high school board.

District 289 auditor, Bill Newkirk of Newkirk & Associates helped the elementary school board members grasp the complexities of the error at their monthly meeting, Sept. 21. “If you don’t deal in accounting every day, you may wonder how a mistake like this can even happen, but when you have multiple counties in your taxing base, you sometimes have to estimate rates. Lee County prepared their numbers prior to having final numbers from LaSalle County,” Newkirk stated.

Newkirk expounded by saying that LaSalle County is often one of the slowest counties in the region to complete their levies. Lee County, on the other hand, wants to get their bills out on time and as a result often has to estimate amounts. Lee County estimated the EAV amount, only to later find out the wrong numbers were used to begin with.

“Next year, it will be corrected, but you have payroll and other expenses that have to be paid this year. You did just issue working cash bonds on June 30 which padded the end of year, though. Hopefully with prudent management you will make it through,” Newkirk continued.

For now, the district will have to make do without the $188,000. “Or the interest on top of that,” added Kristen School, District 289 superintendent.

Although Lee County will be sending that certified letter, Newkirk also suggested reminding the affected taxpayers of the error when their bills arrive next year. “Otherwise they might forget. Then who are they going to blame,” he questioned.

The board recommended School pursue the issue. “Why would we not request the money that is owed us,” asked Theresa Komitas, board member.

School agreed to contact Mendota High School Superintendent Jeff Prusator and work together.

“If I were sitting in your shoes I would be very frustrated,” finalized Newkirk.

“Respectfully, people make mistakes, but this is a pretty huge one,” added School.

For the time being, both districts will have to figure out how to make it through this fiscal year without those funds.