2016 Tax Levy Regular Board Meeting November 15, 2016
Ta Tax Le Levy Gener General In Inform rmatio ion • What is the tax levy? • What is the Property Tax Extension Limitation Law (PTELL)? • a.k.a. “tax caps” • The annual increase in property tax extensions is limited to 5% or CPI ‐ U, whichever is less • Why don’t school districts levy for Debt Service payments? • Who levies for Debt Service payments?
Ta Tax Le Levy Gener General In Inform rmatio ion • If school districts levy in dollars, how are tax rates calculated? District Capped Funds Levy + Debt Service Levy _________________________________________ = Tax Rate Equalized Assessed Valuation (EAV)
Looki Looking Back Back • The Tax Year 2015 D155 tax rate decreased approximately 2.2% or about 7 cents due to the flat tax levy and increased EAV. • In general, a taxpayer who had an assessment increase of 2% or less paid less money to D155 for Tax Year 2015 compared to the prior year.
2016 2016 Ta Tax Le Levy • The recommended 2016 Tax Levy will reduce D155’s tax extension. • This will be the second year in a row that D155 reduced its taxes. • As long as our D155 communities experience any property value growth (as anticipated), the D155 2016 tax rate will decline for the second year in a row.
Ten Year Property Valuation (EAV) Trend $4.0 Billions $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 McHenry Lake
Levy Comparison: Prior Year, Current Request & Anticipated Extension Actual Prior Yr Current Levy % Est. Current Yr $ Change % Change FUND Extension Request Change Extension from Prior Yr from Prior Yr Education $60,024,365 $61,314,865 $60,629,749 $605,384 Operations & Maintenance $5,020,252 $5,128,185 $5,070,884 $50,632 Transportation $1,405,369 $1,435,584 $1,419,543 $14,174 Municipal Retirement $946,519 $966,869 $956,066 $9,546 Social Security $1,295,134 $1,322,979 $1,308,197 $13,062 Special Education $1,743,513 $1,780,998 $1,761,098 $17,584 Capped Extension/Levy $70,435,153 $71,949,480 2.15% $71,145,537 $710,383 1.01% Bond and Interest: $2,898,221 $1,378,712 (52.43%) $1,378,712 ($1,519,509) (52.43%) Total Extension/Levy $73,333,374 $73,328,192 (0.01%) $72,524,248 ($809,126) (1.10%)
Five Year Tax Extension (All Funds including Debt Service) Trend 2011 ‐ 2015 $80,000,000 $73,342,960 $72,814,083 $73,333,374 $72,524,248 $71,480,007 $60,000,000 $40,000,000 $20,000,000 $0 2012 2013 2014 2015 2016 (Est.)
For a $300,000 house, the proposed levy on the portion of a D155 tax bill means… Fair Cash Value of house: $300,000 EAV of house (1/3 of Fair Cash Value): $100,000 Estimated 2016 D155 tax rate: $2.983025 per $100 of EAV 2015 D155 tax rate: $3.025533 per $100 of EAV Estimated 2016 taxes to D155: $2,983.03 Less 2015 taxes paid to D155: $3,025.53 2016 estimated tax reduction ($42.50)
For a $200,000 house, the proposed levy on the portion of a D155 tax bill means… Fair Cash Value of house: $200,000 EAV of house (1/3 of Fair Cash Value): $66,667 Estimated 2016 D155 tax rate: $2.983025 per $100 of EAV 2015 D155 tax rate: $3.025533 per $100 of EAV Estimated 2016 taxes to D155: $1,988.69 Less 2015 taxes paid to D155: $2,017.03 2016 estimated tax reduction ($28.34)
If the EAV rises or falls what does that do to D155’s anticipated tax rate? • The Tax Year 2015 D155 tax rate was $3.0255 per $100 of EAV • If the EAV decreases 2% ... …the projected tax rate would be $3.0536 • If the EAV holds steady... …the projected tax rate would be $2.9923
If the EAV rises or falls what does that do to D155’s anticipated tax rate? • The Tax Year 2015 D155 tax rate was $3.0255 per $100 of EAV • If the EAV increases 1% ... …the projected tax rate would be $2.9626 • If the EAV increases 2% ... …the projected tax rate would be $2.9335 • If the EAV increases 3% ... …the projected tax rate would be $2.9049
Ke Key Ta Takeaways • The recommended 2016 Tax Levy will reduce D155’s tax extension. • Estimated reduction is over $800,000 • This will be the second year in a row that D155 reduced its taxes. • As long as our D155 communities experience any property value growth (as anticipated), the D155 2016 tax rate will decline for the second year in a row.
Questions / Discussion
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