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School district might have to return money

DELAVAN — What goes around comes around.

This time, however, it will be spread out over a larger number of taxpayers.

On Monday, the Delavan-Darien School Board learned it might have to pay back the town of Delavan an estimated $205,000.

The potential payback arises from a court case filed by a group of town homeowners who say their properties were over-assessed in 2009 and 2010. The homeowners' group also claims lakefront properties were unfairly assessed.

In June, Walworth County Judge James Carlson ruled in favor of the residents. On Thursday, the court likely will determine how much the town needs to repay the residents.

That amount could be as much as $250,000 in taxes for each year, said Delavan-Darien Business Administrator Carey Bradley.

Of that amount, 41 percent, or about $205,000 for both years, would have gone to the school district, Bradley said.

State law allows the district to apply that amount to the levy without impacting the school budget. In other words, even if the tax levy for the district is at the legally allowable limit, the "payback" amount can still be added to it.

However, the money will come from all school district residents, not just those in the town of Delavan.

The district includes the city of Delavan, the village of Darien and portions of the towns of Darien, Delavan, Richmond, Sugar Creek, Sharon, Walworth and Bradford.

Out of the 75 people suing the town, only 13 list their primary address in the town of Delavan. The remainder list their primary addresses as out of state.

The majority of those listed come from the Chicago area, with a few from Florida and California.