November 19, 2018 Tax levy timeline 11/19/18 Tentative levy - - PowerPoint PPT Presentation

November 19, 2018

Tax levy timeline

 11/19/18

Tentative levy presentation & approval

 Week of 12/3/18 Post public hearing notice

 12/17/18

Hold public hearing & Adopt Certificate of Tax Levy

 Prior to 12/25/18

File Certificate of Tax Levy with McHenry County Clerk

Tax assessments and levy

 The “Tax Cap” Formula:  In 1991 the legislature passed the Property Tax Extension

Limitation Law (PTELL) – or “Tax Caps”

 The purpose was to control the growth of property taxes,

which in turn controls the growth of expenditures

 Tax Cap legislation controls the amount that school

districts receive in property taxes by the increase in the prior year’s Consumer Price Index (CPI)

 The Tax Cap limits the increase in total extensions to the

lesser of 5% or CPI

10-year CPI History

Key items used to develop tax levy

• Prior year tax extension ($75,044,373.615 incl. bonds)
• Capped extension $71,269,042.92
• Consumer Price Index (CPI) -- 2018 (2.1%)
• Estimated Equalized Assessed Valuation (EAV)
• Current Assumption is based upon a 7.0% increase
• Estimated new property EAV
• Current 2018 assumption is based upon $7.5 million
• 2017 Levy actual = $5,887,740 new construction
• Five-Year Average = $5,341,870

Projected change to 2018 Equalized Assessed Valuation (EAV)

2017 EAV 1,761,317,250 $ Estimated change in base EAV 2018 EAV - current property (6.6%) 115,718,543 2018 EAV - new property est. 7,546,801 2018 EAV estimate 1,884,582,594 $

2018 tax cap formula

EXISTING PROPERTY

2017 Extension (capped)

71,269,043 $ 1+CPI (2.1%) x 1.021

Tentative Extension

72,766,000 $ NEW PROPERTY (Estimated) 2018 EAV New Property 7,546,801 $ / 100 2018 Tentative Rate x 3.88

Tentative Extension Est.

293,000 $ TOTAL 73,059,000 $

Tentative Capped Tax rate

 Using the 2018 base EAV estimate, the tentative capped tax rate has

been calculated as follows:

x 100 2018 base EAV estimate ÷ 1,884,582,594 $ 2018 tentative capped tax rate 3.88 $

Effect of EAV, CPI & Tax Rate

CPI CPI CPI Existing EAV Tax Rate Existing EAV Tax Rate Existing EAV Tax Rate

Tax Rate History

Year CPI EAV Tax Rate (Capped) 2018 Estimate 2.1%

$1,884,582,594

$3.88 2017 2.1%

$1,761,317,250

$4.05 2016 0.7%

$1,671,673,322

$4.16 2015 0.8%

$1,581,872,763

$4.35 2014 1.5%

$1,551,613,211

$4.39 2013 1.7%

$1,604,553,914

$4.16

Tentative tax levy request for capped funds

 As EAV and/or the amount of new property constructed will not

be finalized until spring, PTELL districts typically increase their tax levy request to capture associated tax revenue.

Tax Abatement Options/Effects

 Done as a resolution after the tax levy  Filed with the county clerk prior to the extension of

taxes to property owners

 Bond Issues that were included in tax levy end

2/1/2019. There is no debt service with the 2018 Levy

 Positive message to the tax payers

 Lowers the tax rate – Savings to the community

 Keeps the tax base

 Does not cap the tax rate for future (Freeze to the levy

caps future)

Levy Allocation

 Future Projects/Initiatives impacting Levy Allocation

 Life Safety and Operations & Maintenance Projects  Continued implementation of District Strategic Plan

Initiatives

 Potential Property Tax Relief Grant – Application due

January 2019. (Part of the Evidence Based Funding)

Questions