2017 Tax Levy LaGrange School District 102
Timeline November Board of Education Meeting (11/16/17) Tentative Levy Presented at least 20 days prior to adoption December Board of Education Meeting (12/14/17) Adoption of Levy, Supplemental Levy, and Levy Resolutions Last Tuesday in December (12/26/2017) Levy Filed with County Clerk
Limiting Tax Rate: The calculated total allowable tax rate for all Definitions operating funds. Bond and Interest Rate: The rate for bond and interest payments; this is in addition to the limiting rate, and OUTSIDE the tax cap. Extension: The amount of taxes calculated due by the clerk’s office. Truth in Taxation: State law that requires public notices and a public hearing about the levy if it will exceed 105% or the previous year’s extension. Ballooning the Levy: Increasing the levy to account for unknown EAV and new property changes.
Computing the Variables Needed: Limiting Rate and Prev Year’s Extension ($32,002,561) Levy CPI (2.1%) EAV (Unknown, have to estimate) New Construction (Unknown, have to estimate) Limiting Rate (LR) Computation: Prev Year’s Extension * (1+CPI) LR = EAV - New Construction Aggregate Levy Computation: Levy Amount = EAV * LR
Estimates EAV = Estimating an average increase of between 17% and 20% from triennial reassessment. Estimated New Construction Market Value: ● 40 S Ashland Condos : $10M ● Uptown Apartments : $30M ● Other : $10M Total: $50M Market Value EAV = ⅓ of Market Value : $16.6M - Expect only ⅓ of Uptown to come on-line, so adjusted EAV is: $9.9M Since the limiting rate is based on the previous year’s extension, underlevying based on incorrect estimates has a negative compounding effect year after year.
Effects of Estimates on the Levy - LY17
Allocating the Levy Balloon for $33,596,908 Expect approximately $33,026,362 Clerk will reduce excess levy amount from Education Levy as per resolution.
Tax Rate Tax rate can be calculated once you know the levy amounts and the EAV. Simply divide the levy amount by the EAV to calculate the tax rate. Assuming an existing EAV increase of 19%, and new construction of $10M . . . Total estimated EAV: $938,922,955 Total estimated extension: $33,026,362 Limiting rate for capped funds: 3.5175% Estimated non-capped Extension (B&I): $2,585,899 Estimated tax rate for non-capped funds: 0.2754% Total Estimated Tax Rate: 3.7929%
Estimated Levy impact on a $350,000 LY16 Home District Portion of a 2016 Levy 2017 Levy Tax Bill Market Value 350,000 416,500 (+19%) Assessment Level 10% 10% Assessed Value 35,000 41,650 Eq. Factor (LY16) 2.8032 2.8032 (likely to change) EAV 98,112 116,753 Tax Rate 4.436% 3.7929% Tax Before $4,352.25 $4,428.32 Exemptions Annual Change + $76.07
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