2018 T AX L E VY I NF ORMAT I ON BOARD OF E DUCAT I ON - - PowerPoint PPT Presentation

SLIDE 1

2018 T AX L E VY I NF ORMAT I ON

BOARD OF E DUCAT I ON ME E T I NG OCT OBE R 18, 2018

SLIDE 2

L

• c a l Pro pe rty T

a xe s a re the Prima ry So urc e o f Re ve nue fo r D211

T AX RE VE NUE SUPPORT S INST RUCT IONAL AND OPE RAT IONAL NE E DS OF T HE DIST RICT

L OCAL PROPE RT Y T AXE S, 85.2% I NT E RE ST ON I NVE ST ME NT S, 0.7% E VI DE NCE BASE D F UNDI NG, 4.3% CAT E GORI CAL ST AT E AI D, 2.7% F OOD SE RVI CE SAL E S, 1.2% CORPORAT E P.P.R. T AX, 1.0% F E E S & OT HE R, 1.7% T UI T I ON, 0.3% F E DE RAL AI D, 2.9%

2018-2019 REVENUE BY CATEGORY

SLIDE 3

OPE RAT ING F UND L E VY (Sum of total le vy for

• pe r

ating funds)

DE BT SE RVICE L E VY (De te r

mine d by De bt Re payme nt Sc he dule - Not inc lude d in Ope r ating F und le vy)

T OT AL L E VY AMOUNT / E XT E NSION

T he maximum allowable le vy amount is the c ombination of the Distr ic t’s Ope r ating F unds AND De bt Se r vic e F und.

L E VY: T WO KE Y COMPONE NT S

Distr ic t 211 doe s not have a de bt se r vic e le vy and ope r ate s only within the ope r ating fund le vy

SLIDE 4

Unde rsta nding the “T a x Ca p”

 Distr

ic t 211 is subje c t to the Pr

• pe r

ty T ax E xte nsion L imitation L aw (PT E L L ) also known as the “T ax Cap”

 Impac ts all sc hool distr

ic ts in Cook County and nume r

• us othe r

c ountie s thr

• ughout the state

 T

he T ax Cap limits the aggr e gate ope r ating le vy amount to:

A) inc r e ase in the pr ior ye ar ’s CPI % plus B) addition of ne w pr

• pe r

ty gr

• wth

 Pr

• hibits distr

ic ts fr

• m fully r

e c ove r ing ope r ating r e ve nue if amounts ar e le vie d le ss than the tax c ap amount

 E

ac h ye ar ’s le vy se ts the foundation amount by whic h taxe s may be le vie d for the following ye ar

 Doe s not “c ap” individual pr

• pe r

ty tax bills

CPI- U Histor y

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% 2018 2.1%

CPI

• U

is a fac to r in de te rmining the limit by whic h a T ax Cappe d distric t may inc re ase the ir le vy

SLIDE 5

Ne w Pro pe rty Gro wth

 Ac c o unts fo r ne w de ve lo pme nts

tha t ha ve no t pre vio usly b e e n o n ta x ro lls

 E

xisting pro pe rtie s a re sub je c t to the inc re a se in CPI

• U o nly unde r the T

a x Ca p

 Ne w pro pe rty g ro wth tha t is no t

c a pture d shifts b urde n to e xisting ta xpa ye rs

 T

I F e xpira tio n is le vie d a s ne w pro pe rty g ro wth (D211 do e s no t ha ve a ny

T I F ’ s e xpiring fo r the 2018 le vy)

SLIDE 6

Ho w Do e s the L e vy I mpa c t I ndividua l Pro pe rty T a x Bill Ca lc ula tio ns?

F ac tor s Use d to Calc ulate Pr

• pe r

ty T ax Bill: De sc r iption: Contr

• lle d By:

Pro pe rty Va lue Va lue o f pro pe rty c o mpa re d to pro pe rtie s o f simila r size a nd lo c a tio n Co o k Co unty Asse sso r Pro pe rty Asse ssme nt L e ve l (b y Pro pe rty T ype ) F a c to r a pplie d to pro pe rty va lue to c a lc ula te a sse sse d va lue Co o k Co unty Asse sso r E q ua liza tio n F a c to r F a c to r a pplie d to b ring Co o k Co unty pro pe rtie s in line with a ll o f I llino is I LDe pt. o f Re ve nue T a x Ra te Sum o f a ll ta x ra te s-de te rmine d b y le vy a mo unts L

• c a l ta xing b o dy

(inc luding D211) E xe mptio ns L e sse n the a mo unt o we d a nd a pply to individua ls me e ting c e rta in c rite ria Co o k Co unty T re a sure r

L

• c al taxing bodie s c ontr
• l only 1 of 5 c ompone nts

use d to de te r mine individual pr

• pe r

ty tax bill amounts

SLIDE 7

Ho w do the five fa c to rs a ffe c t my pro pe rty ta x b ill?

Ag g re g a te Pro pe rty Va lue s, E q ua lize r, E xe mptio ns T a x Ra te

Dispr

• por

tionate c hange s in any of the five fac tor s of the tax bill c an have an impac t on individual pr

• pe r

ty owne r tax bills

Ag g re g a te Pro pe rty Va lue s, E q ua lize r, E xe mptio ns T a x Ra te

SLIDE 8

Ne w L ife Sa fe ty/ Re ma ining F a c ility I mpro ve me nt Pro je c ts in Stra te g ic Pla n

2019- 2020 Pr

• je c t Planning
• Ne w L

ife Sa fe ty Pro je c ts

• Re stro o m Re no va tio ns
• T

urf/ T ra c k Re pla c e me nt/ Re surfa c ing

Facility Improvement Projects in Strategic Plan Location Age/Condition/Need

Roof Repairs and Replacement P, F, C, S, H 40% of total roof square footage will be approximately 30 years old by 2021 Mechanical Equipment Replacement P, F, C, S, H Equipment replacement for systems 25‐40 years old; many systems are original to buildings Bathroom and Locker Room Renovations P, F, C, H Original to buildings; inadequate ventilation, plumbing, and ADA accessibility Artificial Turf Carpet Replacement and Track Refinishing P, C, H Average life expectancy is 8 years. Estimated actual life is 10‐12 years through D211 upkeep Flexible Classroom Spaces P, F, C, S, H Redesign of 5 classrooms per school to incorporate flexible learning environments through furniture and technology supporting modern‐day learning environments Kitchen Renovation F Current kitchen is 20+ years old with failing equipment, inadequate serving space, and updated plumbing needs Auditorium Improvements P,F,C,S,H Identify needs of auditoriums for structural, performing, and upkeep needs

SLIDE 9

2018 L e vy Co nside ra tio ns

Aggr

e gate le vy limit: 2.1% + Ne w Pr

• pe r

ty Gr

• wth

2017 CPI

• U a mo unt to de te rmine ta x c a p limit fo r the 2018 le vy = 2.1%

Ne w pro pe rty g ro wth e stima te d a t 0.3% Be c ause we ar

e de bt fr e e , we will not have a de bt se r vic e le vy

2018 le vy impac ts the 2019- 2020 fisc al ye ar

budge t

L

e vy must pr

• vide r

e ve nue suffic ie nt to suppor t annual instr uc tional pr

• gr

amming, ope r ating ne e ds, life safe ty and fac ility impr

• ve me nt pr
• je c ts

Annual pr

• pe r

ty tax r e funds ave r aging mor e than $6.2 million

SLIDE 10

Actual 2017 Levy Recommended 2018 Levy % Chg. Educational 173,443,248 $ 174,500,000 $ 0.6% Operations/Maintenance 28,942,883 $ 32,400,000 $ 11.9% Transportation 8,516,210 $ 8,750,000 $ 2.7% IL Municipal Retirement 4,961,418 $ 4,800,000 $

• 3.3%

Social Security 4,961,418 $ 5,079,500 $ 2.4% Working Cash 2,507,465 $ 2,500,000 $

• 0.3%

Total (for existing properties) 223,332,642 $ 228,029,500 $ 2.1% New Property Growth Revenue 670,000 $ 0.3% Total Anticipated Levy Revenue (All properties) 228,699,500 $ 2.4%

2018 L e vy Re c o mme nda tio n

 L e vy limite d to ta x c a p re stric tio ns o f CPI a t ra te o f 2.1% plus ne w pro pe rty g ro wth  Allo c a te funds in E duc a tio na l fund to suppo rt a nd susta in c urre nt pro g ra mming  L e vy funds into Ope ra tio ns a nd Ma inte na nc e F und fo r c a pita l impro ve me nt pro je c ts  Allo c a te future tra nsfe rs o f O&M funds to Ca pita l Pro je c ts F und a s a c c o unting me a sure  Allo c a te le vy funds to wa rd life sa fe ty pro je c ts thro ug h Wo rking Ca sh F und le vy  L e vy to suppo rt I MRF a nd So c ia l Se c urity e mplo ye r c o sts  Re duc tio n in c o sts due to lia b ility re duc tio n

SLIDE 11

2018 L e vy Re c o mme nda tio n

Recommended 2018 Levy Educational 174,500,000 $ Operations/Maintenance 32,400,000 $ Transportation 8,750,000 $ IL Municipal Retirement 4,800,000 $ Social Security 5,079,500 $ Working Cash 2,500,000 $ Total (for existing properties) 228,029,500 $ New Property Growth Revenue 670,000 $ Total Anticipated Levy Revenue (All properties) 228,699,500 $ New Property Allocation + $ 500,000 + $ 100,000 + $ 25,000 + $ 15,000 + $ 20,000 + $ 10,000 Anticipated Cook County Final Extension* % Chg. 175,000,000 $ 0.9% 32,570,500 $ 12.5% 8,750,000 $ 2.7% 4,800,000 $

• 3.3%

5,079,000 $ 2.4% 2,500,000 $

• 0.3%

2.1% 0.3% 228,699,500 $ 2.4%

*Existing and New Properties

2.1% L e vy Inc r e ase + 0.3% Antic ipate d Ne w Pr

• pe r

ty

SLIDE 12

Prude nt F ina nc ia l Pla nning

In or de r to r e main de bt- fr e e , the Distr ic t must ope r ate within a str uc tur al sur plus of its se le c t

• pe r

ating funds to suppor t str ate gic initiative s - both instr uc tional and ope r ational

Ope ra ting L e vy

• Pr
• vide s ne c e ssar

y funding to suppor t all Distr ic t ope r ations within limitations of the T ax Cap

Ope ra ting Budg e t

• F

unds fr

• m the Ope r

ating L e vy ar e use d 1) to pay for instr uc tional and ope r ating fund e xpe nditur e s and 2) for tr ansfe r to non-

• pe r

ating funds to pay for c apital impr

• ve me nt pr
• je c ts

T

• ta l

Budg e t

• Ope r

ating L e vy pr

• vide s

85% of total budge t r e ve nue - suppor ts all

• pe r

ations of the Distr ic t

T he ope r ating le vy suppor ts ope r ations and fac ility impr

• ve me nts

WIT HOUT de bt

SLIDE 13

L

• ng -Ra ng e F

ina nc ia l F

• re c a st

Cash Basis ‐ rounded $000's 2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022 2022‐2023 Actual % +(‐) Budgeted % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) REVENUE BY CATEGORY TOTAL DIRECT REVENUE 254,978,000

3.7%

254,332,000

(0.3%)

263,412,000

3.6%

267,898,000

1.7%

272,031,000

1.5%

275,784,000

1.4%

EXPENDITURES BY CATEGORY TOTAL DIRECT EXPENDITURES 264,897,000

4.5%

263,132,000

(0.7%)

259,644,000

(1.3%)

267,911,000

3.3%

272,463,000

1.6%

277,856,000

2.0%

BUDGET SURPLUS/ (DEFICIT) (9,919,000) (8,800,000) 3,768,000 (13,000) (432,000) (2,072,000) TRANSFERS IN 65,637,000 14,437,000 17,000,000 17,000,000 17,000,000 13,000,000 TRANSFERS OUT (65,637,000) (14,437,000) (17,000,000) (17,000,000) (17,000,000) (13,000,000) SPECIAL PMT TO IMRF (2,500,000) (10,200,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) PROCEEDS FROM SALE OF LAND 20,000,000 ‐ ‐ ‐ ‐ Operating Fund Balance % 43% 45% 44% 42% 40% 39% Educational Fund Balance % 40% 36% 36% 36% 35% 35% Cash Basis ‐ rounded $000's 2017‐2018 2018‐2019 2019‐2020 2020‐2021 2021‐2022 2022‐2023 Actual % +(‐) Budgeted % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) REVENUE BY CATEGORY TOTAL DIRECT REVENUE 254,978,000

3.7%

254,332,000

(0.3%)

263,412,000

3.6%

267,898,000

1.7%

272,031,000

1.5%

275,784,000

1.4%

EXPENDITURES BY CATEGORY TOTAL DIRECT EXPENDITURES 264,897,000

4.5%

263,132,000

(0.7%)

259,644,000

(1.3%)

267,911,000

3.3%

272,463,000

1.6%

277,856,000

2.0%

BUDGET SURPLUS/ (DEFICIT) (9,919,000) (8,800,000) 3,768,000 (13,000) (432,000) (2,072,000) TRANSFERS IN 65,637,000 14,437,000 17,000,000 17,000,000 17,000,000 13,000,000 TRANSFERS OUT (65,637,000) (14,437,000) (17,000,000) (17,000,000) (17,000,000) (13,000,000) SPECIAL PMT TO IMRF (2,500,000) (10,200,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) PROCEEDS FROM SALE OF LAND 20,000,000 ‐ ‐ ‐ ‐ Operating Fund Balance % 43% 45% 44% 42% 40% 39% Educational Fund Balance % 40% 36% 36% 36% 35% 35%

T

• ta l Budg e t

T he Distr ic t’s long-r ange financ ial pr

• je c tion inc lude s use of the ope r

ating le vy to sustain instr uc tional pr

• gr

amming and c ontinue c apital and life safe ty pr

• je c ts. T

he Distr ic t’s fund balanc e shows a planne d de c line whic h inc lude s pr

• c e e ds of $20 million fr
• m sale of asse ts.

SLIDE 14

2018 L e vy: ($5,300,000)

2019 L e vy*: ($5,450,000) 2020 L e vy*: ($5,540,000) 2021 L e vy*: ($5,640,000) 2022 L e vy*: ($5,780,000)

T a x Ca p L imita tio n o n L e vy

A le vy de c r e ase in Ope r

ating F

unds for

• ne ye ar
• nly (2018) r

e sults in c ompounde d lost r e ve nue that c an ne ve r be r e c ove r e d unde r limitations of T ax Cap law

$27.7 million in lost ope r ating fund r e ve nue ove r 5 ye ar s

E xa mple -0% le vy inc re a se fo r le vy ye a r 2018 L

• sse s c o ntinue into pe rpe tuity.

* Assume s CPI inc re ase o f 2% in 2019 le vy and 1.5% in 2020-2022 le vie s c o nsiste nt with pro je c tions

T he c ompounding loss of r e ve nue adve r se ly e ffe c ts the Distr ic t’s ability to sustain its long-te r m plan

• f sustaining pr
• gr

amming while paying for fac ility impr

• ve me nts fr

e e of de bt.

SLIDE 15

L e vy Sc e na rio s a nd I mpa c t o n F und Ba la nc e b y F Y2023

Distric t is a b le to o pe ra te within its me a ns to c o ntinue a c a de mic pro g ra mming a nd impro ve fa c ilitie s witho ut de b t

Operating FB 39% Operating FB 35% Operating FB 31% Education FB 35% Education FB 35% Education FB 35% Operating FB 35% Operating FB 31% Operating FB 28% Education FB 32% Education FB 32% Education FB 32% Operating FB 30% Operating FB 26% Operating FB 22% Education FB 31% Education FB 31% Education FB 31% $20 million no allocation $10 million specific allocation $20 million specific allocation Monthly Increase

• n Median

Homeowner $ 4.54 2.27 $

• $

Levy Increase 2.1% 1.05% 0.0%

Distric t wo uld ne e d to de via te fro m stra te g ic prio ritie s in se le c t funds; fa c ility impro ve me nts c a nno t b e c o mple te d a s c o mmitte d

Distric t c a nno t susta in fa c ility impro ve me nts, I MRF c o ntrib utio ns, o r a de q ua te fund b a la nc e in c e rta in funds

SLIDE 16

Wha t is the impa c t o f a 2.1% le vy inc re a se ?

 Co ntinue d high quality e duc ational pr

• gr

amming a nd e xtra

c urric ula r a c tivitie s

 Co ntinue d long- te r

m financ ial stability o f the Distric t fo r future

stude nts, e mplo ye e s, c o mmunity me mb e rs a nd Bo a rds o f E duc a tio n

 Co ntinue d funding of c apital and life safe ty pr

• je c ts without issuing

de bt

 I

nc re a se to the a ve ra g e ho me o wne r o f le ss than $5 pe r

month in pr

• pe r

ty taxe s

SLIDE 17

T a x L e vy Ca le nda r

Oc tobe r 18, 2018 Boar d of E duc ation me e ting- le vy pr e se ntation Nove mbe r 8, 2018 T e ntative Budge t and F inanc e Committe e me e ting if ne e de d- r e vie w le vy mate r ial Nove mbe r 8, 2018 Boar d of E duc ation me e ting- de te r mine amount of pr

• pose d 2018 le vy (not le ss than 20 days pr

ior to le vy adoption) Nove mbe r 29, 2018- De c e mbe r 6, 2018 Public he ar ing notic e must be publishe d (no mor e than 14 nor le ss than 7 days pr ior to public he ar ing) De c e mbe r 13, 2018 Boar d of E duc ation me e ting- public he ar ing of 2018 le vy and adoption of 2018 le vy De c e mbe r 24, 2018 L ast day to file 2018 le vy

SLIDE 18

Que stio ns