2016 Property Tax Levy Presentation Board of Education Meeting November 15, 2016 Prepared by: Christopher Wildman, CPA CFO &TREASURER
Funding Sources 89% PROPERTY TAXES STATE FEDERAL INTEREST LOCAL OTHER 6% 1% 3% 1% 0% NOTE - EXCLUDES: TRANSFERS AND ON-BEHALF PAYMENT TO TRS Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 2
Explanation of Key Terms • Tax Levy: The amount of money a school district requests to be raised from property tax. • Extension: The amount of money the district receive from the property tax. • CPI (Consumer Price Index): An inflationary indicator that measures the change in the cost of a fixed basket of products and services including housing, electricity, food and transportation. • EAV (Equalized Assessed Valuation): The term EAV refers to the assessed value of all taxable real estate in the district. Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 3
Levy – General Information • The final levy amount and related tax rate (or extension) is determined by the Lake County C lerk’s office based on the requested amounts, after applying PTELL reductions (tax cap law). • PTELL limits an amount of increase in taxes from year to year to the lesser of 5% or the prior year CPI, plus the value of new construction. Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 4
Levy – General Information • A minimum of 20 days between the presentation of a tentative levy and it’s adoption is required if in excess of the 5% threshold. • If the tentative / final levy is in excess of 5%, a Truth-In Taxation notice must be published and a Public hearing conducted. • Once the levy is adopted, it must be filed with the Lake County Clerk. Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 5
2016 Levy Calculation • Equalized Assessed Valuation of all property = $2,238,725,260 • Prior Year Extension = $67,303,111 • CPI = 0.70% • New Property = $9.5 million expected Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 6
2016 Levy Calculation • In addition to getting tax revenue from existing property, we request additional taxes related to new property/new taxpayers. This is an estimate at the time of the levy. • The district is also entitled to revenues from properties, which were previously not paying taxes to the school district in a TIF (Tax Incremental Financing) District. Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 7
CPI Percent of Change in December CPI for the last 10 Years 4.50% 4.10% 4.00% 3.50% 3.00% 3.00% 2.70% CPI average for last 5 years is 1.54% 2.50% 2.50% 2.00% 1.70% 1.50% 1.50% 1.50% 1.00% 0.80% 0.70% 0.50% 0.10% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Average CPI for this 10-year period is 1.86% Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 8
Expected Increase • This levy represents a 1.99% increase over last year’s extension. • The District always levy more to account for any unforeseen increases in EAV or New Construction. Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 9
Summary • What are we asking for: $68.6 million • What do we think we will get: $68.1 million Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 10
Timeline • Levy adoption will be today, November 15, 2016, at the Board Meeting. • File the adopted certificate of tax levy no later than the last Tuesday of December 2016. • Extension process, receipt of levied revenues begin in Spring 2017. Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 11
QUESTIONS? Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 North Shore School District 112 LEVY 2016 12
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