Tax Levy 2019
Timeline • 10/21 Board Meeting Review Preliminary Levy • 10/22 Communication Levy Placed on Display • 11/18 Regular Meeting Truth in Taxation Hearing and Final Levy Adoption
The Calculation and Payment 1. The 2019 levy is based on the 2019 extension times the 2018 CPI of 1.9% 2. Plus the estimated value of tax revenue from new property • The 2019 levy primarily funds the 2020-21 school year
Tax Caps and the Consumer Price Index • Property Tax Extension Limitation Law, Public Act 87-17 (tax caps). • Limits the amount of the increase in taxes from year to year to the lesser of 5% or the prior year CPI, plus the value of new property added to the tax base. • The December 31, 2018 CPI was 1.9%. • Value of new property is unknown at the time of the levy and must be estimated. • If tax revenue from new property is underestimated, the law does not allow us to modify our levy to capture it for this year. • The result is the proposed levy is higher than the actual taxes collected to assure the district is capturing all tax revenue from new property, which is unknown until June 2020; these taxes are collected from the new property. • The tax cap law will restrict the total tax amount, regardless of the amount levied.
2019 Proposed Property Tax Levy & Extension Actual Expected Recommended 2019 Extension 2019 Levy 2019 Levy Tax year 2019-20 2020-21 2020-21 School year New Property 57,001,958 30,000,000 100,000,000 5,403,654,969 6,212,184,940 6,287,184,940 Assessed Valuation % ∆ % ∆ Education $ 91,467,667 $ 94,148,184 $ 95,208,209 Building $ 7,840,703 $ 7,760,936 $ 7,848,317 Transportation $ 1,572,463 $ 1,391,616 $ 1,407,285 I.M.R.F. $ 1,529,234 $ 1,562,892 $ 1,580,489 Social Security $ 2,134,443 $ 2,183,767 $ 2,208,354 Total Capped Funds $ 104,544,510 $ 107,047,395 2.39% $ 108,252,654 3.55% Average new Actual 2019 Estimated 2018 Estimated 2018 Extension Levy Levy property over the past 10 Bond and Interest $ 9,490,373 $ 9,329,618 $ 9,329,618 Estimated Bond and Interest Levy $ 9,490,373 $ 9,329,618 -1.69% $ 9,329,618 -1.69% years is $45 million. $ 114,034,883 $ 116,377,013 2.05% $ 117,582,272 3.11%
Impact on Average Homeowner • Due to the PTELL laws, the average homeowner should experience an increase of less than 1.9% for the NT portion of their tax bill. • In the winter, Cook County will send a bill to tax payers for 55% of the previous year tax bill. The remainder of the 2019 tax bill is due in the fall.
What do our Levy Dollars Support? • Continued commitment to excellence in education Ensure the quality education received by past generations of New Trier students is available to the present and future generations of New Trier students • Top ACT/SAT scores in Illinois for an open enrollment school • 98 percent college enrollment • Recognized as a lighthouse school for academics, arts, athletics, extracurriculars The Value of a New Trier Education
What do our Levy Dollars Support? • A deep, broad curriculum tailored to individual student interests and needs Students develop skills, interests, and purpose to help them see and be prepared for their future • Wide variety of courses at different levels and across levels to provide an appropriate challenge for all students • Climate of exploration promoted through diverse elective program -- award-winning fine arts and media, speech and theatre departments; promotion of innovation through applied arts STEM programs and business education classes • Nationally recognized health and wellness program • Students in AP and non-AP courses far outperform their peers across the country on assessments of their subject knowledge The Value of a New Trier Education
What do our Levy Dollars Support? • Strong student services and supports Help students navigate finding their place in the world and face the challenges of the 21 st century • Services that focus on the whole child, beginning with the nationally modeled adviser program • Multiple and varied supports for students who may be struggling academically or with social and emotional needs • One of the country’s only public high school post -counseling programs to provide certified, dedicated college/career counselors and individualized advisement The Value of a New Trier Education
What do our Levy Dollars Support? • An extracurricular program that encourages high levels of student participation Students become a unique part of the school and pursue their interests, talents, and passions outside the classroom • Approximately 85 percent of students participate in extracurricular opportunities (athletics, clubs, performing arts) • More than 150 student-led clubs • 35 sports and multiple team levels, including at least one no-cut sport per season • Double-cast theatre productions and award-winning music programs • Year-round intramural opportunities The Value of a New Trier Education
What do our Levy Dollars Support? • Competitive salaries to attract and retain top faculty and staff The community values the caring, professional, and skilled faculty and staff at New Trier who work with our kids every day. • More than 95 percent of teachers hold advanced degrees • Merit pay system encourages teachers to become master teachers and leaders within their subject areas and to renew that designation through continued demonstration of mastery and leadership on a regular basis • Extensive mentoring, cohort work, and professional development to support teachers throughout their careers • Community surveys consistently rate attracting and retaining high-quality teachers as a top priority The Value of a New Trier Education
Fiscal Stewardship and Levy • The district is proud to have a strong history of balanced budgets due to: • The support of the community in 2003 to increase the district’s operating rate • After the 2003 referendum, the district committed to no operating rate referendum for 5 years - that commitment has extended to 16 years • The district carefully manages expenditures and has instituted cost containment and reductions to reduce expenditures each year
Fiscal Stewardship and Levy • Appropriate Reserves • Cash balances are needed to support operations between property tax payments and any potential delay in property tax payments • Protection from significant and sudden changes to our revenue or expenditures (such as a property tax freeze or pension cost shift) providing stability for the community and allowing us time to phase in changes • Maintain our Aaa bond rating to ensure we have access to the best rates for debt
Historical Support for Statutory Levy Amount • The levy increase will help fund District expenses that have increased, including in mandated areas like Special Education • Through careful planning and the funding provided by the 2019 levy, we are on track to present a balanced budget for the 2020-21 year • The amount we are requesting will allow us to continue to provide the excellent education, extracurricular programs, support, and services for current and future students, while maintain a balanced budget and being strong stewards of taxpayer dollars
Thank You and Questions • Thanks to the community and our Board for the continued support of our schools. • It takes a financial commitment from the community to sustain the level of excellence that previous generations of New Trier students have experienced. • The school honors that commitment by dedicating ourselves to the students, families, and programs of the community and by being faithful stewards of the community’s resources. • We are committed to continuing to provide the excellence in education that is the community expectation and our tradition. • Questions?
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