2019 Tax Levy Request Board of Education Tuesday, November 5, 2019 - PowerPoint PPT Presentation

2019 Tax Levy Request Board of Education Tuesday, November 5, 2019 Presented by: Cynthia Carpenter, Director of Business & Finance, CSBO

Tax Levy Calendar • Approve Levy Request – Tonight At least 20 days before final tax levy is approved o • Post in Newspaper • Hold Public Hearing – December 3, 2019 • Adopt Levy – December 3, 2019 • File Levy with County Clerk by December 31, 2019 2

Property Tax Extension Limitation Law (PTELL) Property Tax Extension Limitation Law (PTELL) • Enacted in DeKalb County in 1999 o Regulates and limits the growth of property taxes o IL PTELL Tax law allows for an annual inflation increase in the levy • Not all counties are under PTELL (Ogle to the west and LaSalle to • the south) – more flexibility from year-to-year A school district’s levy will change each year based on 3 • variables: Consumer Price Index (CPI) o New Property/Growth (includes recovered TIF increment) – ability to capture this growth o outside of PTELL in the first year Any change in the district’s annual debt schedule o Tax extension can only increase by CPI (1.9% for 2019 Levy Year) • or 5% (whichever is less) PLUS any new property added to the tax rolls each year Since calculation of the tax levy request is based on estimates, an • additional 3% is added to the estimated operating levy amount to accommodate changes in EAV and new property District will only be extended what the PTELL calculation allows • 3

D428 Equalized Assessed Value (EAV) Estimate for 2019 2018 Rate Setting EAV (Actual) $ 732,594,657 2019 Rate Setting EAV - Est. from County Assessor as of 10-28-19 2019 Existing Property EAV $ 766,258,450 2019 "Regular" New Growth $ 6,826,358 TIF#1 Recovery going into TIF#3* $ 5,157,067 TIF#2 Recovery - Expired* $ 14,762,821 Total Est. Rate Setting EAV w/ TIF and New Growth $ 793,004,696 Total TIF Recovery and New Growth $ 26,746,246 Total Est. $ Change in EAV from Prior Year $ 60,410,039 Est. % Change in EAV from Prior Year 8.2460% *One-time opportunity to capture new growth from TIF recovered EAV *TIF recovered EAV now on D428 tax rolls rather than the City of DeKalb 4

Breakdown of Tax Levy Calculation Based on EAV Est. as of 10-28-19 2018 Oper. Levy Extension from County $ 50,339,656 Inflation (CPI) 1.9% (December 2018) 1.90% Est. Increase in Extension based on Inflation $ 956,453 New 2019 Est. Extenstion before new growth $ 51,296,109 Est. 2019 Operating Tax Rate 6.6944% Est. Increase from new growth $ 1,790,490 2018 Operating Extension $ 50,339,656 New $/% from Inflation $ 956,453 1.90% New $/% from New Growth $ 1,790,490 3.56% Total Est. New $/% $ 2,746,944 5.46% 2019 Est. Operating Extension $ 53,086,600 Bond and Interest Levy* $ 5,383,591 Bond and Interest Abatements $ - Net B&I Levy $ 5,383,591 Est. 2019 B&I Tax Rate 0.6789% Est. 2019 Total Levy $ 58,470,191 Total Est. Tax Rate 7.3732% 5 *Based est. debt service after 2010 bond refunding and prior to any B&I abatements

Option #1 Based on EAV Est. dated 10-28-19 Maximize Levy Request (Operating and Bond & Interest) BASED ON EAV ESTIMATES FROM ASSESSOR AS OF 10/28/19 Actual Est. $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy $ 50,339,656 $ 53,086,600 $ 2,746,944 5.46% Total Bond and Interest $ 3,765,170 $ 5,383,591 $ 1,618,421 42.98% Total Levy $ 54,104,826 $ 58,470,191 $ 4,365,365 8.07% TAX LEVY REQUEST (Additional 3%) Actual Levy Request $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy $ 50,339,656 $ 54,679,198 $ 4,339,542 8.62% Total Bond and Interest $ 3,765,170 $ 5,383,591 $ 1,618,421 42.98% Total Levy $ 54,104,826 $ 60,062,789 $ 5,957,963 11.01% • Maximizes levy request for both Operating and Bond & Interest Levy • Does not include any Bond & Interest Abatement – Reminder: B&I Abatement of $1,750,000 for 2018 tax levy • Total estimated tax rate is 7.3732 • Est. Increase in D428 Tax Bill from 2018 for homeowner with $150,000 market value home in 2018 = $164 or 5.0% 6

Option #2 Based on EAV Est. dated 10-28-19 Hold CPI at 0% - Capture New Growth BASED ON EAV ESTIMATES FROM ASSESSOR AS OF 10/28/19 Actual Est. $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy $ 50,339,656 $ 52,096,761 $ 1,757,105 3.49% Total Bond and Interest $ 3,765,170 $ 5,383,591 $ 1,618,421 42.98% Total Levy $ 54,104,826 $ 57,480,352 $ 3,375,526 6.24% TAX LEVY REQUEST (Additional 3%) Actual Levy Request $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy $ 50,339,656 $ 53,659,664 $ 3,320,008 6.60% Total Bond and Interest $ 3,765,170 $ 5,383,591 $ 1,618,421 42.98% Total Levy $ 54,104,826 $ 59,043,255 $ 4,938,429 9.13% • Do not capture increase for inflation – 0% CPI • Does not include any Bond & Interest Abatement – Reminder: B&I Abatement of $1,750,000 for 2018 tax levy • Captures new growth estimate from assessor and TIF1 and TIF2 EAV recovery • Reduces est. operating levy by $990,000 plus CPI (inflation) annually ; these dollars cannot be recouped in the future through the PTELL calculation – For example, if CPI was 2.0% for next two years, cumulative loss over 3 years is over $3 million • Estimated total tax rate is 7.2484 • Est. Increase in D428 Tax Bill from 2018 for homeowner with $150,000 market value home in 2018 = $67 or 2.1% 7

Option #3 Based on EAV Est. dated 10-28-19 Capture 1.9% CPI & New Growth with Bond & Interest Abatement of $2,250,000 BASED ON EAV ESTIMATES FROM ASSESSOR AS OF 10/28/19 Actual Est. $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy $ 50,339,656 $ 53,086,600 $ 2,746,944 5.46% Total Bond and Interest $ 3,765,170 $ 3,133,591 $ (631,579) -16.77% Total Levy $ 54,104,826 $ 56,220,191 $ 2,115,365 3.91% TAX LEVY REQUEST (Additional 3%) Actual Levy Request $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy $ 50,339,656 $ 54,679,198 $ 4,339,542 8.62% Total Bond and Interest $ 3,765,170 $ 3,133,591 $ (631,579) -16.77% Total Levy $ 54,104,826 $ 57,812,789 $ 3,707,963 6.85% • Capture increase for inflation – 1.9% CPI & new growth – including recovered TIF EAV • Abate (reduce) Bond & Interest levy by $2,250,000 -Would need to use dollars from working cash fund-Est. FY19-20 operating fund balance = $34.0 million or 36.2% of expenditures after abatement • Taxpayer gets a one-time savings – annual decision • Provides flexibility to manage the tax rate annually • Total estimated tax rate is 7.0895 • Est. Decrease in D428 Tax Bill from 2018 for homeowner with $150,000 market value home in 2018 = ($6) or -0.2% 8

Levy Request Summary of Options Based on EAV Est. from Assessor on 10/28/19 Option 1 Option 2 Option 3 Maximize Operating Levy - Maximize Levy 0% CPI - Capture Abate $2,250,000 Request New Growth B&I Operating Levy $ $ 53,086,600 $ 52,096,761 $ 53,086,600 Bond & Interest $ $ 5,383,591 $ 5,383,591 $ 3,133,591 Total Levy $ $ 58,470,191 $ 57,480,352 $ 56,220,191 Operating Levy Rate 6.6944 6.5695 6.6944 Bond & Interest Rate 0.6789 0.6789 0.3952 Total Rate 7.3732 7.2484 7.0895 $ Increase to taxpayer from prior year $ 164 $ 67 $ (6) Based on $150K market value in 2018 No (Inflation) Yes Capture Property Tax Revenue-CPI & New Growth Yes (New Growth) Yes Yes - Long Term Yes - One Time Future Operating Fund Impact None Loss Reduction TIF1 & TIF2 EAV Recovered (one time opportunity) Yes Yes Yes Bond and Interest Levy Reduction No No Yes Yes-No Future Yes-Determine Use of District Operating Funds No Recoup Annually Taxpayer Savings No Yes Yes 9 Reminder: All above are estimates