November 19, 2018 Tax levy timeline 11/19/18 Tentative levy - PowerPoint PPT Presentation

November 19, 2018

Tax levy timeline  11/19/18 Tentative levy presentation & approval  Week of 12/3/18 Post public hearing notice  12/17/18 Hold public hearing & Adopt Certificate of Tax Levy  Prior to 12/25/18 File Certificate of Tax Levy with McHenry County Clerk

Tax assessments and levy  The “Tax Cap” Formula:  In 1991 the legislature passed the Property Tax Extension Limitation Law (PTELL) – or “Tax Caps”  The purpose was to control the growth of property taxes, which in turn controls the growth of expenditures  Tax Cap legislation controls the amount that school districts receive in property taxes by the increase in the prior year’s Consumer Price Index (CPI)  The Tax Cap limits the increase in total extensions to the lesser of 5% or CPI

10-year CPI History

Key items used to develop tax levy • Prior year tax extension ($75,044,373.615 incl. bonds) • Capped extension $71,269,042.92 • Consumer Price Index (CPI) -- 2018 (2.1%) • Estimated Equalized Assessed Valuation (EAV) • Current Assumption is based upon a 7.0% increase • Estimated new property EAV • Current 2018 assumption is based upon $7.5 million 2017 Levy actual = $5,887,740 new construction • • Five-Year Average = $5,341,870

Projected change to 2018 Equalized Assessed Valuation (EAV) 2017 EAV $ 1,761,317,250 Estimated change in base EAV 2018 EAV - current property (6.6%) 115,718,543 2018 EAV - new property est. 7,546,801 2018 EAV estimate $ 1,884,582,594

2018 tax cap formula EXISTING PROPERTY $ 71,269,043 2017 Extension (capped) 1+CPI (2.1%) x 1.021 $ 72,766,000 Tentative Extension NEW PROPERTY (Estimated) 2018 EAV New Property $ 7,546,801 / 100 2018 Tentative Rate x 3.88 $ 293,000 Tentative Extension Est. TOTAL $ 73,059,000

Tentative Capped Tax rate  Using the 2018 base EAV estimate, the tentative capped tax rate has been calculated as follows: x 100 2018 base EAV estimate ÷ $ 1,884,582,594 2018 tentative capped tax rate $ 3.88

Effect of EAV, CPI & Tax Rate Existing Tax Rate EAV CPI Existing Tax Rate EAV Existing CPI CPI EAV Tax Rate

Tax Rate History Year CPI EAV Tax Rate (Capped) 2018 Estimate 2.1% $3.88 $1,884,582,594 2017 2.1% $4.05 $1,761,317,250 2016 0.7% $4.16 $1,671,673,322 2015 0.8% $1,581,872,763 $4.35 2014 1.5% $1,551,613,211 $4.39 2013 1.7% $4.16 $1,604,553,914

Tentative tax levy request for capped funds  As EAV and/or the amount of new property constructed will not be finalized until spring, PTELL districts typically increase their tax levy request to capture associated tax revenue.

Tax Abatement Options/Effects  Done as a resolution after the tax levy  Filed with the county clerk prior to the extension of taxes to property owners  Bond Issues that were included in tax levy end 2/1/2019. There is no debt service with the 2018 Levy  Positive message to the tax payers  Lowers the tax rate – Savings to the community  Keeps the tax base  Does not cap the tax rate for future (Freeze to the levy caps future)

Levy Allocation  Future Projects/Initiatives impacting Levy Allocation  Life Safety and Operations & Maintenance Projects  Continued implementation of District Strategic Plan Initiatives  Potential Property Tax Relief Grant – Application due January 2019. (Part of the Evidence Based Funding)

Questions