2017 TAX LEVY INFORMATION BOARD OF EDUCATION MEETING OCTOBER 19, - - PowerPoint PPT Presentation
2017 TAX LEVY INFORMATION BOARD OF EDUCATION MEETING OCTOBER 19, 2017 Local Property Taxes are the Primary Source of Revenue for D211 TAX REVENUE SUPPORTS INSTRUCTIONAL AND OPERATIONAL NEEDS OF THE DISTRICT INTEREST ON 2017-2018
BOARD OF EDUCATION MEETING OCTOBER 19, 2017
LOCAL PROPERTY TAXES, 85.3% INTEREST ON INVESTMENTS, 0.3% GENERAL STATE AID, 2.7% CATEGORICAL STATE AID, 3.9% FOOD SERVICE SALES, 1.3% CORPORATE P.P.R. TAX, 1.2% FEES & OTHER, 2.1% TUITION, 0.4% FEDERAL AID, 2.8%
2017-2018 REVENUE BY CATEGORY
TAX REVENUE SUPPORTS INSTRUCTIONAL AND OPERATIONAL NEEDS OF THE DISTRICT
District 211 is subject to the Property Tax Extension Limitation Law (PTELL) also known as the “Tax Cap” Impacts all school districts in Cook County and numerous other counties throughout the state The Tax Cap limits the aggregate levy amount to:
A) increase in the prior year’s CPI % plus B) addition of new property growth
Prohibits districts from fully recovering operating revenue if amounts are levied less than the tax cap amount Each year’s levy sets the foundation amount by which taxes may be levied for the following year Does not “cap” individual property tax bills
CPI‐U History
2009 0.1% 2010 2.7% 2011 1.5% 2012 3.0% 2013 1.7% 2014 1.5% 2015 0.8% 2016 0.7% 2017 2.1%
CPI‐U is a factor in determining the limit by which a Tax Capped district may increase their levy
Aggregate levy limit: 2.4% 2016 CPI‐U amount to determine tax cap limit for the 2017 levy = 2.1% New property growth estimated at 0.3% Because we will be debt free, we will no longer have a debt service levy 2017 levy impacts the 2018‐2019 fiscal year budget Levy must provide revenue sufficient to support annual instructional programming,
Property Tax refunds at unprecedented amounts last fiscal year and trend continues
Levy in accordance with tax cap restrictions (CPI+ New Property = 2.4%) Allocate additional funds for bus replacement needs Allocate levy funds to pay for life safety projects Allocate funds in Educational fund to support current programming Levy to support IMRF and Social Security employer costs
Educational 171,838,446 173,000,000 0.7% Operations/Maintenance 28,552,574 28,875,000 1.1% Transportation 7,481,124 8,500,000 13.6%
4,835,822 4,950,000 2.4% Social Security 4,835,822 4,950,000 2.4% Working Cash 2,500,000 100.0% TOTAL 217,543,788 222,775,000 2.4% 2017 Recommended 2016 Actual Levy % Change
Approximately 160 buses Targeted Life: 10‐12 Years Accelerate purchases of buses to lower the current life
2018‐2019 Project Planning
Equipment Replacement
Replacement
Hoffman Estates
Palatine
Schaumburg
These figures do NOT include the additional homeowner exemptions recently approved for Cook County. Additional $3,000/$6,000 exemptions would further reduce these amounts
Levy Year Levy Increase Year‐Over‐ Year Total Property Tax Refund Losses 2016 1,069,333 9,147,181 2015 428,231 5,426,922 2014 3,628,525 5,071,657 For each of the last 3 years, the District has lost more in property tax refunds than it has increased in its levy
Cash Basis ‐ rounded $000's
2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022 Budgeted % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) BEGINNING FUND BALANCE 131,087,000 $ 110,608,000 $ 107,593,000 $ 105,340,000 $ 102,914,000 $ TOTAL DIRECT REVENUE 249,320,000 1.7% 256,376,000 2.8% 261,043,000 1.8% 264,826,000 1.4% 269,111,000 1.6% TOTAL DIRECT EXPENDITURES 241,162,000 2.7% 246,961,000 2.4% 251,296,000 1.8% 255,252,000 1.6% 259,799,000 1.8% BUDGET SURPLUS/ (DEFICIT) 8,158,000 9,415,000 9,747,000 9,574,000 9,313,000 (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) TRANSFERS OUT (NET) (26,637,000) (10,431,000) (10,000,000) (10,000,000) (10,000,000) FUND BALANCE 110,608,000 $ 107,593,000 $ 105,340,000 $ 102,914,000 $ 100,226,000 $ Operating Fund Balance % 45% 43% 41% 40% 38%
Educational Fund Balance % 40% 39% 38% 36% 34%
SPECIAL PAYMENT TO IMRF
Five-Year Financial Projection (Operating Funds)
years?
Proposed Levy 2.4% Increase Decrease in Operating Fund Balance $ FY22
38% Educational Fund Balance % FY22 34% What If? Levy Reduced by 50% 1.2% vs. Recommended 2.4% Increase ($12.5 Million) Loss 33% 32%
What If? Abated Operating Funds Instead of Debt Service in 2015 & 2016 Levies ($27 Million) Loss 28% 29%
Impact demonstrated over a 5‐year period and would continue to compound into future years
Over the last 3 years, the average levy change is for District 211 is 1%. Actual Levy Dollars % increase 2014 Levy 216,100,000 $ 2015 Levy 216,500,000 $ 0.2% 2016 Levy 217,500,000 $ 0.5% 2017 Levy 222,775,000 $ 2.4% Average increase over 3 years: 1.0%
The Board of Education has accomplished reduction (abatement) of the total levy amount by more than $33 million over the past 10 years
Factors Used to Calculate Property Tax Bill: Description: Controlled By: Property Value Value of property compared to properties of similar size and location Cook County Assessor Property Assessment Level (by Property Type) Factor applied to property value to calculate assessed value Cook County Assessor Equalization Factor Factor applied to bring Cook County properties in line with all of Illinois IL Dept. of Revenue Tax Rate Sum of all tax rates‐determined by levy amounts Local taxing body (including D211) Exemptions Lessen the amount owed and apply to individuals meeting certain criteria Cook County Treasurer
Local taxing bodies control only 1 of 5 components used to determine individual property tax bill amounts
A sample of 50 residential property owners individual tax bills demonstrates the fluctuation and unpredictability of change for a taxpayer year‐over‐year
D211 Levy Increased by 0.5% during same time period
Factors Used to Calculate Property Tax Bill: Description: Controlled By: Property Value Value of property compared to properties of similar size and location Cook County Assessor Property Assessment Level (by Property Type) Factor applied to property value to calculate assessed value Cook County Assessor Equalization Factor Factor applied to bring Cook County properties in line with all of Illinois IL Dept. of Revenue Tax Rate Sum of all tax rates‐determined by levy amounts Local taxing body (including D211) Exemptions Lessen the amount owed and apply to individuals meeting certain criteria Cook County Treasurer
The State equalization factor increased in 2016 and property values were reassessed in 2016 (Total EAV increased by 13%)— These factors impact the calculation of each individual tax bill
balance of the District was 54%.
available for strategic initiatives and contingencies.
retained over the next year as shown in the aside chart.
October 11, 2017 Budget and Finance Committee Meeting‐ Review levy material October 19, 2017 Board of Education Meeting‐ Levy Presentation November 1, 2017 Tentative Budget and Finance Committee Meeting if needed‐ Review levy material November 9, 2017 Board of Education Meeting‐ Determine amount of proposed 2017 levy (not less than 20 days prior to levy adoption) November 30, 2017‐December 7, 2017 Public hearing notice must be published (no more than 14 nor less than 7 days prior to public hearing) December 14, 2017 Board of Education Meeting‐ Public hearing of 2017 levy and adoption of 2017 levy December 26, 2017 Last day to file 2017 levy
duration of the plan
planned reserve use as strategically prioritized