2019 Tax Levy Request Board of Education Tuesday, November 5, 2019 - - PowerPoint PPT Presentation

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2019 tax levy request
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2019 Tax Levy Request Board of Education Tuesday, November 5, 2019 - - PowerPoint PPT Presentation

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2019 Tax Levy Request Board of Education Tuesday, November 5, 2019 Presented by: Cynthia Carpenter, Director of Business & Finance, CSBO Tax Levy Calendar Approve Levy Request Tonight At least 20 days before final tax levy is

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2019 Tax Levy Request

Board of Education Tuesday, November 5, 2019 Presented by: Cynthia Carpenter, Director of Business & Finance, CSBO

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Tax Levy Calendar

  • Approve Levy Request – Tonight
  • At least 20 days before final tax levy is approved
  • Post in Newspaper
  • Hold Public Hearing – December 3, 2019
  • Adopt Levy – December 3, 2019
  • File Levy with County Clerk by December 31, 2019

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Property Tax Extension Limitation Law (PTELL)

  • Property Tax Extension Limitation Law (PTELL)
  • Enacted in DeKalb County in 1999
  • Regulates and limits the growth of property taxes
  • IL PTELL Tax law allows for an annual inflation increase in the levy
  • Not all counties are under PTELL (Ogle to the west and LaSalle to

the south) – more flexibility from year-to-year

  • A school district’s levy will change each year based on 3

variables:

  • Consumer Price Index (CPI)
  • New Property/Growth (includes recovered TIF increment) – ability to capture this growth
  • utside of PTELL in the first year
  • Any change in the district’s annual debt schedule
  • Tax extension can only increase by CPI (1.9% for 2019 Levy Year)
  • r 5% (whichever is less) PLUS any new property added to the tax

rolls each year

  • Since calculation of the tax levy request is based on estimates, an

additional 3% is added to the estimated operating levy amount to accommodate changes in EAV and new property

  • District will only be extended what the PTELL calculation allows

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D428 Equalized Assessed Value (EAV) Estimate for 2019

2018 Rate Setting EAV (Actual) 732,594,657 $ 2019 Rate Setting EAV - Est. from County Assessor as of 10-28-19 2019 Existing Property EAV 766,258,450 $ 2019 "Regular" New Growth 6,826,358 $ TIF#1 Recovery going into TIF#3* 5,157,067 $ TIF#2 Recovery - Expired* 14,762,821 $ Total Est. Rate Setting EAV w/ TIF and New Growth 793,004,696 $ Total TIF Recovery and New Growth 26,746,246 $ Total Est. $ Change in EAV from Prior Year 60,410,039 $

  • Est. % Change in EAV from Prior Year

8.2460%

*One-time opportunity to capture new growth from TIF recovered EAV *TIF recovered EAV now on D428 tax rolls rather than the City of DeKalb

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Breakdown of Tax Levy Calculation

Based on EAV Est. as of 10-28-19

2018 Oper. Levy Extension from County 50,339,656 $ Inflation (CPI) 1.9% (December 2018) 1.90%

  • Est. Increase in Extension based on Inflation

956,453 $ New 2019 Est. Extenstion before new growth 51,296,109 $

  • Est. 2019 Operating Tax Rate

6.6944%

  • Est. Increase from new growth

1,790,490 $ 2018 Operating Extension 50,339,656 $ New $/% from Inflation 956,453 $ 1.90% New $/% from New Growth 1,790,490 $ 3.56% Total Est. New $/% 2,746,944 $ 5.46% 2019 Est. Operating Extension 53,086,600 $ Bond and Interest Levy* 5,383,591 $ Bond and Interest Abatements

  • $

Net B&I Levy 5,383,591 $

  • Est. 2019 B&I Tax Rate

0.6789%

  • Est. 2019 Total Levy

58,470,191 $ Total Est. Tax Rate 7.3732%

*Based est. debt service after 2010 bond refunding and prior to any B&I abatements

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Option #1

Based on EAV Est. dated 10-28-19

Maximize Levy Request (Operating and Bond & Interest)

  • Maximizes levy request for both Operating and Bond & Interest Levy
  • Does not include any Bond & Interest Abatement – Reminder: B&I Abatement of $1,750,000

for 2018 tax levy

  • Total estimated tax rate is 7.3732
  • Est. Increase in D428 Tax Bill from 2018 for homeowner with $150,000 market value home in

2018 = $164 or 5.0%

BASED ON EAV ESTIMATES FROM ASSESSOR AS OF 10/28/19 Actual Est. $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy 50,339,656 $ 53,086,600 $ 2,746,944 $ 5.46% Total Bond and Interest 3,765,170 $ 5,383,591 $ 1,618,421 $ 42.98% Total Levy 54,104,826 $ 58,470,191 $ 4,365,365 $ 8.07% TAX LEVY REQUEST (Additional 3%) Actual Levy Request $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy 50,339,656 $ 54,679,198 $ 4,339,542 $ 8.62% Total Bond and Interest 3,765,170 $ 5,383,591 $ 1,618,421 $ 42.98% Total Levy 54,104,826 $ 60,062,789 $ 5,957,963 $ 11.01%

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Option #2

Based on EAV Est. dated 10-28-19

Hold CPI at 0% - Capture New Growth

  • Do not capture increase for inflation – 0% CPI
  • Does not include any Bond & Interest Abatement – Reminder: B&I Abatement of

$1,750,000 for 2018 tax levy

  • Captures new growth estimate from assessor and TIF1 and TIF2 EAV recovery
  • Reduces est. operating levy by $990,000 plus CPI (inflation) annually; these dollars

cannot be recouped in the future through the PTELL calculation – For example, if CPI was 2.0% for next two years, cumulative loss over 3 years is over $3 million

  • Estimated total tax rate is 7.2484
  • Est. Increase in D428 Tax Bill from 2018 for homeowner with $150,000 market value

home in 2018 = $67 or 2.1%

BASED ON EAV ESTIMATES FROM ASSESSOR AS OF 10/28/19 Actual Est. $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy 50,339,656 $ 52,096,761 $ 1,757,105 $ 3.49% Total Bond and Interest 3,765,170 $ 5,383,591 $ 1,618,421 $ 42.98% Total Levy 54,104,826 $ 57,480,352 $ 3,375,526 $ 6.24% TAX LEVY REQUEST (Additional 3%) Actual Levy Request $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy 50,339,656 $ 53,659,664 $ 3,320,008 $ 6.60% Total Bond and Interest 3,765,170 $ 5,383,591 $ 1,618,421 $ 42.98% Total Levy 54,104,826 $ 59,043,255 $ 4,938,429 $ 9.13%

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Option #3

Based on EAV Est. dated 10-28-19

Capture 1.9% CPI & New Growth with Bond & Interest Abatement of $2,250,000

  • Capture increase for inflation – 1.9% CPI & new growth – including recovered TIF

EAV

  • Abate (reduce) Bond & Interest levy by $2,250,000 -Would need to use dollars from

working cash fund-Est. FY19-20 operating fund balance = $34.0 million or 36.2% of expenditures after abatement

  • Taxpayer gets a one-time savings – annual decision
  • Provides flexibility to manage the tax rate annually
  • Total estimated tax rate is 7.0895
  • Est. Decrease in D428 Tax Bill from 2018 for homeowner with $150,000 market

value home in 2018 = ($6) or -0.2%

BASED ON EAV ESTIMATES FROM ASSESSOR AS OF 10/28/19 Actual Est. $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy 50,339,656 $ 53,086,600 $ 2,746,944 $ 5.46% Total Bond and Interest 3,765,170 $ 3,133,591 $ (631,579) $

  • 16.77%

Total Levy 54,104,826 $ 56,220,191 $ 2,115,365 $ 3.91% TAX LEVY REQUEST (Additional 3%) Actual Levy Request $$ % Tax Year 2018 Tax Year 2019 Increase Increase Total Operating Levy 50,339,656 $ 54,679,198 $ 4,339,542 $ 8.62% Total Bond and Interest 3,765,170 $ 3,133,591 $ (631,579) $

  • 16.77%

Total Levy 54,104,826 $ 57,812,789 $ 3,707,963 $ 6.85%

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Levy Request Summary of Options

Based on EAV Est. from Assessor on 10/28/19

Option 1 Option 2 Option 3 Maximize Levy Request 0% CPI - Capture New Growth Maximize Operating Levy - Abate $2,250,000 B&I Operating Levy $ 53,086,600 $ 52,096,761 $ 53,086,600 $ Bond & Interest $ 5,383,591 $ 5,383,591 $ 3,133,591 $ Total Levy $ 58,470,191 $ 57,480,352 $ 56,220,191 $ Operating Levy Rate 6.6944 6.5695 6.6944 Bond & Interest Rate 0.6789 0.6789 0.3952 Total Rate 7.3732 7.2484 7.0895 $ Increase to taxpayer from prior year 164 $ 67 $ (6) $ Based on $150K market value in 2018 Capture Property Tax Revenue-CPI & New Growth Yes No (Inflation) Yes (New Growth) Yes Future Operating Fund Impact None Yes - Long Term Loss Yes - One Time Reduction TIF1 & TIF2 EAV Recovered (one time opportunity) Yes Yes Yes Bond and Interest Levy Reduction No No Yes Use of District Operating Funds No Yes-No Future Recoup Yes-Determine Annually Taxpayer Savings No Yes Yes Reminder: All above are estimates

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