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

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

L o 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 2018-2019 REVENUE BY CATEGORY I NT E RE ST ON I NVE ST ME NT S, 0.7% L OCAL PROPE RT Y E VI DE NCE BASE D T AXE S, 85.2% 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 DE RAL AI D, 2.9% F E E S & OT HE R, 1.7% T UI T I ON, 0.3%

L E VY: T WO KE Y COMPONE NT S OPE RAT ING F UND L E VY (Sum of total le vy for ope 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. 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

Unde rsta nding the “T a x Ca p”  Distr ic t 211 is subje c t to the Pr ope r ty T ax E xte nsion L imitation L aw CPI -U is a fac to r in (PT E L L ) also known as the “T ax Cap” de te rmining the limit by whic h a T ax Cappe d distric t may inc re ase the ir  Impac ts all sc hool distr ic ts in Cook County and nume r ous othe r le vy c ountie s thr oughout the state CPI- U Histor y 2009 0.1%  T he T ax Cap limits the aggr e gate ope r ating le vy amount to: 2010 2.7% A) inc r e ase in the pr ior ye ar ’s CPI % plus 2011 1.5% B) addition of ne w pr ope r ty gr owth 2012 3.0%  Pr 2013 1.7% ohibits distr ic ts fr om 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 2014 1.5% 2015 0.8%  E ac h ye ar ’s le vy se ts the foundation amount by whic h taxe s may 2016 0.7% be le vie d for the following ye ar 2017 2.1% 2018 2.1%  Doe s not “c ap” individual pr ope r ty tax bills

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)

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 De sc r iption: Contr olle d By: Pr ope r ty T ax Bill: Pro pe rty Va lue Va lue o f pro pe rty c o mpa re d to Co o k Co unty Asse sso r pro pe rtie s o f simila r size a nd lo c a tio n Pro pe rty Asse ssme nt L e ve l (b y F a c to r a pplie d to pro pe rty va lue to Co o k Co unty Asse sso r Pro pe rty T ype ) c a lc ula te a sse sse d va lue 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 I LDe pt. o f Re ve nue pro pe rtie s in line with a ll o f I llino is T a x Ra te Sum o f a ll ta x ra te s-de te rmine d b y le vy L o c a l ta xing b o dy a mo unts (inc luding D211) E xe mptio ns L e sse n the a mo unt o we d a nd a pply to Co o k Co unty T re a sure r individua ls me e ting c e rta in c rite ria L oc al taxing bodie s c ontr ol only 1 of 5 c ompone nts use d to de te r mine individual pr ope r ty tax bill amounts

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, T a x Ra te E xe mptio ns Ag g re g a te T a x Ra te Pro pe rty Va lue s, E q ua lize r, E xe mptio ns Dispr opor 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 ope r ty owne r tax bills

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 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 Equipment replacement for systems 25‐40 years old; many systems are original Replacement P, F, C, S, H to buildings 2019- 2020 Pr oje c t Planning Bathroom and Locker Room Renovations P, F, C, H Original to buildings; inadequate ventilation, plumbing, and ADA accessibility • Artificial Turf Carpet Ne w L ife Sa fe ty Pro je c ts Replacement and Track Average life expectancy is 8 years. Estimated actual life is 10‐12 years through • Re stro o m Re no va tio ns Refinishing P, C, H D211 upkeep • T urf/ T ra c k Redesign of 5 classrooms per school to incorporate flexible learning environments Re pla c e me nt/ Re surfa c ing Flexible Classroom Spaces P, F, C, S, H through furniture and technology supporting modern‐day learning environments Current kitchen is 20+ years old with failing equipment, inadequate serving space, Kitchen Renovation F and updated plumbing needs Auditorium Improvements P,F,C,S,H Identify needs of auditoriums for structural, performing, and upkeep needs

2018 L e vy Co nside ra tio ns  Aggr e gate le vy limit: 2.1% + Ne w Pr ope r ty Gr owth  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 ovide r e ve nue suffic ie nt to suppor t annual instr uc tional pr ogr amming, ope r ating ne e ds, life safe ty and fac ility impr ove me nt pr oje c ts  Annual pr ope r ty tax r e funds ave r aging mor e than $6.2 million

2018 L e vy Re c o mme nda tio n Actual 2017 Recommended  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 Levy 2018 Levy % Chg. Educational $ 173,443,248 $ 174,500,000 0.6%  Allo c a te funds in E duc a tio na l fund to Operations/Maintenance $ 28,942,883 $ 32,400,000 11.9% suppo rt a nd susta in c urre nt pro g ra mming Transportation $ 8,516,210 $ 8,750,000 2.7%  L e vy funds into Ope ra tio ns a nd IL Municipal Retirement $ 4,961,418 $ 4,800,000 -3.3% Ma inte na nc e F und fo r c a pita l Social Security $ 4,961,418 $ 5,079,500 2.4% impro ve me nt pro je c ts  Working Cash $ 2,507,465 $ 2,500,000 -0.3% 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 Total (for existing properties) $ 223,332,642 $ 228,029,500 2.1%  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 New Property Growth Revenue $ 670,000 0.3%  L e vy to suppo rt I MRF a nd So c ia l Se c urity e mplo ye r c o sts Total Anticipated Levy Revenue (All properties) $ 228,699,500 2.4%  Re duc tio n in c o sts due to lia b ility re duc tio n

2018 L e vy Re c o mme nda tio n Anticipated Cook County New Final Property Recommended Extension* % Chg. Allocation 2018 Levy $ 175,000,000 0.9% + $ 500,000 Educational $ 174,500,000 $ 32,570,500 12.5% + $ 100,000 Operations/Maintenance $ 32,400,000 $ 8,750,000 2.7% + $ 25,000 Transportation $ 8,750,000 $ 4,800,000 -3.3% + $ 15,000 IL Municipal Retirement $ 4,800,000 $ 5,079,000 2.4% + $ 20,000 Social Security $ 5,079,500 $ 2,500,000 -0.3% + $ 10,000 Working Cash $ 2,500,000 2.1% Total (for existing properties) $ 228,029,500 0.3% New Property Growth Revenue $ 670,000 $ 228,699,500 2.4% Total Anticipated Levy Revenue (All properties) $ 228,699,500 *Existing and New Properties 2.1% L e vy Inc r e ase + 0.3% Antic ipate d Ne w Pr ope r ty

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 ope r ating funds to suppor t str ate gic initiative s - both instr uc tional and ope r ational • Pr ovide s ne c e ssar y funding to suppor t Ope ra ting all Distr ic t ope r ations within limitations of the T ax Cap L e vy • F unds fr om the Ope r ating L e vy ar e use d 1) to pay for instr uc tional and ope r ating fund Ope ra ting e xpe nditur e s and 2) for tr ansfe r to non- Budg e t ope r ating funds to pay for c apital impr ove me nt pr oje c ts • Ope r ating L e vy pr ovide s T o ta l 85% of total budge t T he ope r ating le vy r e ve nue - suppor ts all Budg e t suppor ts ope r ations and ope r ations of the Distr ic t fac ility impr ove me nts WIT HOUT de bt