NORMAL - Unit 5 property taxes will be a little lower this year to make up for overpayments resulting from district errors last year.

Taxpayers overpaid about $1.8 million last year when district officials failed to catch errors on an early copy of a tax bill document sent to them for proofreading. About half came from a misunderstanding over a tax referendum and half from a tax incorrectly charged for a bond that was already paid off.

The overcharges likely will come up again Wednesday when the board meets in regular session to discuss its levy.

In addition, the board also is expected to finalize an agreement on added medical benefits for about 1,300 teachers and support staff employees that will run until their contract ends June 30. The names of two schools expected to open in 2010 and 2111 also are expected to be announced Wednesday.

District Chief Financial Officer Jim Gillmeister said Monday he expects the education fund levy to be set at $51,061,239 for 2008 property taxes payable in 2009. Last year the district received $48,857,014 in the education fund, which pays for most operating expenses, such as teacher salaries.

The education fund taxes paid by McLean County landowners in the district will be reduced because of last year's mistaken charge of $2.665 per $100 equalized assessed valuation. The amount was supposed to be $2.62 per $100 EAV, and that's the rate that will be used this year.

The higher rate was legal. In fact, it could have been as high as $2.72 per $100 EAV as a result of the $96.7 million school construction referendum voters approved in February. The affected rate was tied to a referendum question about raising taxes to run the new schools.

The error came from confusion over the phrase "the next taxing cycle."

Illinois moved the primary election from March to Feb. 5 this year. A referendum in March wouldn't come in time to affect the tax bills calculated in the spring, but this referendum did.

The county clerk's office added the higher tax in "the next taxing cycle" as specified in the wording, and the district did not catch the error.

That error accounted for about half of the tax overcharge.

Taxpayers also overpaid almost $905,000 because a 1994 bond was paid off in 2006 but the tax rate for it still showed up on the 2007 tax bills sent this spring. The district didn't realize the error until May, when it was too late to change the tax bills, Nelson said.

The district plans to correct that error by reducing the amount of 2008 taxes collected in 2009 by the overcharged $900,000, Superintendent Gary Niehaus said.

The mistakes cost the average Unit 5 taxpayer an extra $20 to $80, according to an earlier estimate by Megan Nelson, McLean County tax administrator.

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School board

What: Unit 5 school board discussion and/or action on tax levy, staff benefits and new school names

When: 7 p.m., Wednesday

Where: Unit 5 district office 1809 Hovey Ave., Normal