2019 tax levy request
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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


  1. 2019 Tax Levy Request Board of Education Tuesday, November 5, 2019 Presented by: Cynthia Carpenter, Director of Business & Finance, CSBO

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

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