PAWNEE COMMUNITY UNIT SCHOOL DISTRICT #11 810 North Fourth Street, Pawnee, Illinois 62558 Gary M. Alexander Superintendent Phone: 217-625-2471 x 202 Timothy R. Kratochvil Jennifer A. Loftus Steven L. Kirby Jr. High/High School Principal Grade School Principal Athletic Director Phone: 217-625-2471 x 206 Phone: 217-625-2231 x 201 Phone: 217-625-2471 x 216 LEVY INFORMATION What is a levy? • The amount of money a school district and/or local government (taxing district) determines it needs to operate the district and certifies to be raised from property tax. • Property tax is calculated based on one-third of the property’s market value (actual selling price) • A home that has a market value of $200,000, for property tax calculation; that home has an assessed value of $66,666. Home of the Indians
LEVY INFORMATION • Because assessment levels vary from county to county, a multiplier is applied. This multiplier is then used to establish the Equalized Assessed Valuation (EAV) • The tax levy must be filed the last Tuesday in December but the county does not determine and release the actual EAV until late March or early April. • Therefore, when developing the Levy, the School District can only estimate the EAV based on past history. Home of the Indians
LEVY INFORMATION • In addition to the EAV being based on an estimate there are many other unknown factors: What will be the farmland reassessment; what is the value of any new construction; what will legal fees be; and how much will salaries paid out of Tort increase? • The Pawnee School District has 11 areas that are factored into the overall tax rate: Education, Building, Working Cash, Transportation, Bond and Interest, IMRF, Social Security, Tort, Special Education, Lease, and Fire and Safety. Home of the Indians
LEVY INFORMATION • The Bond and Interest, IMRF, Social Security, and Tort are unrestricted rates. All of other areas are set rates. • Since the tax rate is based on the EAV, if the EAV increases, property taxes decrease. If the EAV decreases, property taxes will increase. • Because everything is based on the EAV, school districts do not necessarily receive what they levy (unless they guess correctly on the EAV.) Home of the Indians
LEVY INFORMATION • If a school district levies for a 4% increase in the EAV and the actual EAV increases by 7%, the district will only receive the 4% increase it levied. • School Districts often put a cushion in their levy to avoid this possible loss of value opportunity (Remember districts receive taxes based on actual EAV.) • Districts are required to hold a truth and taxation hearing if the proposed levy exceeds the previous year’s extension (excluding Bond and Interest) by more than 5%. Home of the Indians
• How did the Pawnee District determine the 2016 Levy? • We estimated our EAV to increase by 4.34% and added a cushion of 7% just in case farmland would be reassessed higher or we would have new construction within the district. With this estimation our extension will be 8.055% above last year’s tax revenue and, therefore, requires a hearing. • The unrestricted funds in the levy of Tort, IMRF, and Social Security were not increased this year. The Bond and Interest was increased to meet the final Bond payment. • If our estimated guess of an increase of 4.34% (without the added cushion) is correct the EAV will be $76,290,632 and our rate will be 3.95470, which will generate an additional $89,963.79 Home of the Indians
• Because of the added 7% EAV increase cushion, which allows for the possibility of additional construction and farmland value, we exceed the previous year’s extension by more than 5%. Therefore, we will hold a truth and taxation hearing on December 21 at 7 p.m. Home of the Indians
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