2016 Property Tax Levy Presentation Board of Education Meeting - - PowerPoint PPT Presentation

Prepared by: Christopher Wildman, CPA CFO &TREASURER

2016 Property Tax Levy Presentation

Board of Education Meeting November 15, 2016

Funding Sources

NOTE - EXCLUDES: TRANSFERS AND ON-BEHALF PAYMENT TO TRS

North Shore School District 112 LEVY 2016

2

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

89% 6% 3% 0% 1% 1%

PROPERTY TAXES STATE FEDERAL INTEREST LOCAL OTHER

Explanation of Key Terms

• Tax Levy: The amount of money a school district requests

to be raised from property tax.

• Extension: The amount of money the district receive

from the property tax.

• CPI (Consumer Price Index): An inflationary indicator

that measures the change in the cost of a fixed basket of products and services including housing, electricity, food and transportation.

• EAV (Equalized Assessed Valuation): The term EAV

refers to the assessed value of all taxable real estate in the district.

North Shore School District 112 LEVY 2016

3

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

Levy – General Information

• The final levy amount and related tax rate (or extension) is

determined by the Lake County Clerk’s office based on the requested amounts, after applying PTELL reductions (tax cap law).

• PTELL limits an amount of increase in taxes from year to

year to the lesser of 5% or the prior year CPI, plus the value of new construction.

North Shore School District 112 LEVY 2016

4

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

Levy – General Information

• A minimum of 20 days between the presentation of a

tentative levy and it’s adoption is required if in excess of the 5% threshold.

• If the tentative / final levy is in excess of 5%, a Truth-In

Taxation notice must be published and a Public hearing conducted.

• Once the levy is adopted, it must be filed with the Lake

County Clerk.

North Shore School District 112 LEVY 2016

5

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

2016 Levy Calculation

• Equalized Assessed Valuation of all property = $2,238,725,260
• Prior Year Extension = $67,303,111
• CPI = 0.70%
• New Property = $9.5 million expected

North Shore School District 112 LEVY 2016

6

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

2016 Levy Calculation

• In addition to getting tax revenue from existing property,

we request additional taxes related to new property/new

• taxpayers. This is an estimate at the time of the levy.
• The district is also entitled to revenues from properties,

which were previously not paying taxes to the school district in a TIF (Tax Incremental Financing) District.

North Shore School District 112 LEVY 2016

7

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

CPI

Average CPI for this 10-year period is 1.86%

North Shore School District 112 LEVY 2016

8

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16 2.50% 4.10% 0.10% 2.70% 1.50% 3.00% 1.70% 1.50% 0.80% 0.70% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Percent of Change in December CPI for the last 10 Years

CPI average for last 5 years is 1.54%

Expected Increase

• This levy represents a 1.99% increase over last year’s

extension.

• The District always levy more to account for any

unforeseen increases in EAV or New Construction.

North Shore School District 112 LEVY 2016

9

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

Summary

• What are we asking for: $68.6 million
• What do we think we will get: $68.1 million

North Shore School District 112 LEVY 2016

10

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

Timeline

• Levy adoption will be today, November 15, 2016, at the

Board Meeting.

• File the adopted certificate of tax levy no later than the

last Tuesday of December 2016.

• Extension process, receipt of levied revenues begin in

Spring 2017.

North Shore School District 112 LEVY 2016

11

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16

QUESTIONS?

North Shore School District 112 LEVY 2016

12

Bus Office_Boardmemos_FY17 Final Levy_Date:11/15/16