Hey guys,

I got a disturbing letter from Oak Grove School District dated 11/17/00. The long and the short of it is that there is pending litigation brought by IBM that could increase the property taxes we pay to support Oak Grove School District.

IBM filed a lawsuit against SCCAssessor to review and reduce the assessed value of IBM's property in San Jose by over $1 billion. If successful, IBM would receive a property tax refund of approximately $11 million. A porltion of that tax refund would be demanded of Oak Grove School District's taxpayers who are required as a result of a local election, to retire school bonds approved overwhelmingly by Oak Grove voters in 1995. The lawsuit could comproise the school district's ability to sell at the lowest possible interest cost bonds which have already been approved for school modernization. Other consequences could also occur which are delineated in a resolution passed by the board of trustees on 9/28/00 (copy available upon request).

County Assessory Stone informed the school district trustees that assessed values contested by IBM date back nearly a decade, far in excess of the normal two-year statute of limitations afforded all other taxpayers who chose to contest their property tax assessment. IBM failed to file assessment appeals within the statutory deadline required by law for the years in question. IBM is attempting to secure a benefit that is unavailable to the average property owner.

There is a potential increase in our property taxes, should IBM prevail in their litigation.

Further information contact superintendent Hardy Childers.

Letter was signed by Manny Barbara, Superintendent and Kristi Porter, President, Board of Trustees and was mailed to all parents of students in Oak Grove School District.