Manhattan School District 114 Board Approves 2025 Tax Levy; Plans Abatement to Maintain Tax Rate

Manhattan School District 114 Meeting | Dec. 10, 2025

Article Summary:
The Manhattan School District 114 Board of Education approved its 2025 tax levy following a public hearing, setting the stage for an estimated 4.9% increase in operating fund extensions. District officials confirmed plans to abate bond debt in the spring to keep the overall tax rate steady for residents.

2025 Tax Levy Key Points:

• Operating Extension: The district estimates an extension of approximately $16.7 million for operating funds, a 4.9% increase over the previous year.

• Property Value Growth: The district’s estimated Equalized Assessed Valuation (EAV) has increased by 9.4%, continuing a seven-year trend of growth averaging around 8.4%.

• Tax Rate Stability: To minimize impact on taxpayers, the district plans to abate approximately $2.7 million in bond debt, aiming to maintain the previous tax rate of 4.2552.

• “Balloon” Levy: The board approved a “balloon” levy higher than the expected extension to ensure the district captures revenue from all new property development, estimated at over $10 million.

The Manhattan School District 114 Board of Education on Tuesday, December 10, 2025, voted to approve the 2025 tax levy and a corresponding Truth in Taxation certificate following a public hearing.

Superintendent Dr. Damien Ahern presented the financial outlook, noting that the district’s Equalized Assessed Valuation (EAV) is estimated to rise by 9.4% in 2025. The district anticipates a Consumer Price Index (CPI) limiting rate impact of approximately 2.9% for the current cycle, though projections suggest this may dip to roughly 2.3% in future years.

The approved levy for operating funds—which includes education, operations and maintenance, transportation, and working cash—is estimated to generate an extension of $16,732,000. This represents a 4.9% increase over the 2024 extension of nearly $16 million.

Dr. Ahern explained that the district utilizes a “balloon” levy strategy, asking for slightly more than anticipated to ensure all revenue from new property development is captured. The estimated new property value entering the district’s books this year is just over $10 million.

“We balloon that so that we capture the estimated new property and the estimated EAV,” Dr. Ahern told the board. “If we see that discrepancy, that’s why it’s there.”

A significant portion of the meeting addressed the district’s debt service. The bond and interest extension is set at approximately $8.2 million. However, the district intends to abate, or pay back, roughly $2.7 million of that amount. This abatement is a strategic move designed to keep the district’s overall tax rate flat at 4.2552, consistent with previous years.

Without the planned abatement, the tax rate would theoretically rise to approximately 4.7 or 4.8. The board will formally vote on the abatement in the spring once final EAV numbers are received from Will County.

The board opened a public hearing regarding the levy prior to the vote, but no members of the public offered comments. The board subsequently voted unanimously to approve the levy and the Certificate of Compliance for the Truth in Taxation Act.