Supt. Jackie Krause brought up an appeal by the owner of 300 Opatrny to have that addresses property taxes reduced. The owner had appealed to the county assessor, and the original appeal was denied. The owner of the property is appealing the denial. The reason the owner says he is appealing is that the building, which is an apartment building, has units that are not being rented.
Supt. Krause said the owner's appeal was opposed by the Memorial Library and the village. The village is intervening in the appeal. Supt. Krause sought a motion from the Board to join the intervention by the village.
If the appeal were granted, Dr. Krause said, District 3 would lose $10K in tax revenue this year, and would continue to lose $10K per year in subsequent years. She noted that, if the district were to join the village in intervening, the paperwork to file would cost the district approximately $150, and court costs could go as high as $5K. These fees would come from the Education Fund, not the Tort Fund, because the district is not incurring liabilities with this action.
Board Member Steve Knar asked if joining the village was a "strength in numbers" move, if the district would send in a lawyer alongside the village's lawyer. Dr. Krause said that it would be District 3 protecting its own interests. She noted that Village Administrator Art Osten said that the district gets most of its money from property taxes. By comparison, the village gets revenue from sales taxes in addition to property taxes.
Board Member Bob Nunamaker said that this is a tough situation. Board Member Gerry Blohm opined that it doesn't seem like the district is in the business of enforcing assessments. He added that someone else (the village) is already on this. Dr. Krause countered, saying that if the district doesn't have a voice in this, they are relying on others, possibly with less vested interest, to come forward. Board Member Tom Mollet echoed this, saying that if the district stands by on this, which ones does the district fight?
Nunamaker asked what the assessor's feelings are on this. Dr. Krause noted that the assessor originally appraised the property, but that the owner was basing his appeal on an outside appraisal that he sought individually. Knar noted that a property owner can get an outside appraisal that will say whatever the owner wants.
Nunamaker wondered if the board could "dodge this bullet" and vote on this at the next meeting. Dr. Krause said no, there was a 30-day limit to make the decision. It would have to be voted on at this meeting.
Blohm wondered what the district's basis to derive value from joining this case would be. He said that assessments are someone else's ball game. Dr. Krause said that the district would be supporting the County Assessor. Knar noted that joining the case would be to protect the district's interests.
Nunamaker seemed to be leaning toward not joining the case, but inferred that he might decide differently if the costs to the district were incidental. Knar also seemed to be leaning toward not joining the case, but said he'd feel differently if the village weren't involved. Dr. Krause said that the village invited the district to join the case because the district has the most to lose. Mollet said that it would be the County Assessor's lawyer, not the village's or the district's, who would deal with the case. Dr. Krause said that she consulted the district's lawyer, who advised that the district join the case, because it shouldn't seem as though this kind of action doesn't matter to the district.
From the audience, Cindy Pilz wondered if the district would need to use it's own lawyer, or could a lawyer from the village volunteer to help. Dr. Krause said that the district's lawyer understands how the law relates to school districts. Asst. Superintendent Tim Mahaffy noted that if a lawyer from the village wanted to volunteer, perhaps he or she would consider coaching volleyball. During a tense discussion, this line got a big laugh.
At the end of the discussion, the motion to join the case did not pass. With one Board Member, Pat Hughes, absent, the vote was a tie, 3-3. Voting in favor of joining the case was Vice-President Doris Sadik, President Paula Zasadil, and Mollet. Voting against joining the case was Nunamaker, Blohm, and Knar.