2016 Tax Levy Regular Board Meeting November 15, 2016 Ta Tax Le - - PowerPoint PPT Presentation

2016 Tax Levy

Regular Board Meeting November 15, 2016

Ta Tax Le Levy Gener General In Inform rmatio ion

• What is the tax levy?
• What is the Property Tax Extension Limitation Law (PTELL)?
• a.k.a. “tax caps”
• The annual increase in property tax extensions is limited to 5% or CPI‐U,

whichever is less

• Why don’t school districts levy for Debt Service payments?
• Who levies for Debt Service payments?

Ta Tax Le Levy Gener General In Inform rmatio ion

• If school districts levy in dollars, how are tax rates calculated?

District Capped Funds Levy + Debt Service Levy _________________________________________ Equalized Assessed Valuation (EAV) = Tax Rate

Looki Looking Back Back

• The Tax Year 2015 D155 tax rate decreased approximately 2.2% or

about 7 cents due to the flat tax levy and increased EAV.

• In general, a taxpayer who had an assessment increase of 2% or less

paid less money to D155 for Tax Year 2015 compared to the prior year.

2016 2016 Ta Tax Le Levy

• The recommended 2016 Tax Levy will reduce D155’s tax extension.
• This will be the second year in a row that D155 reduced its taxes.
• As long as our D155 communities experience any property value

growth (as anticipated), the D155 2016 tax rate will decline for the second year in a row.

Ten Year Property Valuation (EAV) Trend

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Billions

McHenry Lake

Levy Comparison: Prior Year, Current Request & Anticipated Extension

Actual Prior Yr Current Levy %

• Est. Current Yr

$ Change % Change FUND Extension Request Change Extension from Prior Yr from Prior Yr Education $60,024,365 $61,314,865 $60,629,749 $605,384 Operations & Maintenance $5,020,252 $5,128,185 $5,070,884 $50,632 Transportation $1,405,369 $1,435,584 $1,419,543 $14,174 Municipal Retirement $946,519 $966,869 $956,066 $9,546 Social Security $1,295,134 $1,322,979 $1,308,197 $13,062 Special Education $1,743,513 $1,780,998 $1,761,098 $17,584 Capped Extension/Levy $70,435,153 $71,949,480 2.15% $71,145,537 $710,383 1.01% Bond and Interest: $2,898,221 $1,378,712 (52.43%) $1,378,712 ($1,519,509) (52.43%) Total Extension/Levy $73,333,374 $73,328,192 (0.01%) $72,524,248 ($809,126) (1.10%)

Five Year Tax Extension (All Funds including Debt Service) Trend 2011‐2015

$71,480,007 $72,814,083 $73,342,960 $73,333,374 $72,524,248 $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 2012 2013 2014 2015 2016 (Est.)

For a $300,000 house, the proposed levy on the portion of a D155 tax bill means…

Fair Cash Value of house: $300,000 EAV of house (1/3 of Fair Cash Value): $100,000 Estimated 2016 D155 tax rate: $2.983025 per $100 of EAV 2015 D155 tax rate: $3.025533 per $100 of EAV Estimated 2016 taxes to D155: $2,983.03 Less 2015 taxes paid to D155: $3,025.53 2016 estimated tax reduction ($42.50)

For a $200,000 house, the proposed levy on the portion of a D155 tax bill means…

Fair Cash Value of house: $200,000 EAV of house (1/3 of Fair Cash Value): $66,667 Estimated 2016 D155 tax rate: $2.983025 per $100 of EAV 2015 D155 tax rate: $3.025533 per $100 of EAV Estimated 2016 taxes to D155: $1,988.69 Less 2015 taxes paid to D155: $2,017.03 2016 estimated tax reduction ($28.34)

If the EAV rises or falls what does that do to D155’s anticipated tax rate?

• The Tax Year 2015 D155 tax rate was $3.0255 per $100 of EAV
• If the EAV decreases 2%...

…the projected tax rate would be $3.0536

• If the EAV holds steady...

…the projected tax rate would be $2.9923

If the EAV rises or falls what does that do to D155’s anticipated tax rate?

• The Tax Year 2015 D155 tax rate was $3.0255 per $100 of EAV
• If the EAV increases 1%...

…the projected tax rate would be $2.9626

• If the EAV increases 2%...

…the projected tax rate would be $2.9335

• If the EAV increases 3%...

…the projected tax rate would be $2.9049

Ke Key Ta Takeaways

• The recommended 2016 Tax Levy will reduce D155’s tax extension.
• Estimated reduction is over $800,000
• This will be the second year in a row that D155 reduced its taxes.
• As long as our D155 communities experience any property value

growth (as anticipated), the D155 2016 tax rate will decline for the second year in a row.

Questions / Discussion