Tax Levy Information Board of Education Tuesday, October 15, 2019 - - PowerPoint PPT Presentation

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Nov 27, 2023 366 likes •512 views

Tax Levy Information Board of Education Tuesday, October 15, 2019 Presented by: Cynthia Carpenter, Director of Business & Finance, CSBO Sources of Revenue - Operating Funds 2018-2019 $96,224,310 7% 8% Property Taxes Other Local

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Tax Levy Information

Board of Education Tuesday, October 15, 2019 Presented by: Cynthia Carpenter, Director of Business & Finance, CSBO

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Sources of Revenue - Operating Funds 2018-2019 $96,224,310

49% 6% 30% 8% 7%

Property Taxes Other Local Revenue State Evidence Based Funding Other State Sources Federal Sources

Operating Funds: Education, Tort, Oper. & Maint., Transportation, IMRF, Working Cash

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2019 Tax Levy Process

Estimated Assessment Information from County

Assessor – Fall 2019

Tax Levy Request – November 2019
Approve at least 20 days before final tax levy adoption
Post Truth in Taxation notice in newspaper with date of public hearing
Levy Adoption – December 2019
Hold public hearing
Adopt final tax levy request
Certificate of tax levy must be filed by last Tuesday in December (12/31/19)
Tax Rates Established – March 2020/April 2020
After assessed property values are finalized
Taxes Collected – May 2020 through November 2020

(posted as revenue in FY 2020-2021)

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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 outside 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) or 5% (whichever is less) PLUS any new property added to the tax rolls each year

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Consumer Price Index

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History of Levy Request, Extension, and Received

Note: 2018 Tax Levy actually received amount is based on Sept 2019 county distribution report – still awaiting final distribution

Tax Levy Year 2018 2017 2016 2015 2014 2013 2012 2011 Budget Year 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 2012-2013 Levy Request (BOE) Total 54,439,964 $ 56,170,923 $ 54,271,022 $ 51,797,071 $ 52,432,197 $ 51,574,843 $ 49,294,431 $ 48,336,788 $ Levy Extended (DeKalb County) Total 54,104,826 $ 54,115,731 $ 51,980,580 $ 51,198,487 $ 50,664,311 $ 49,828,275 $ 48,919,734 $ 47,229,396 $ Actually Received Est. Total 53,145,320 $ 52,841,494 $ 51,678,512 $ 50,845,366 $ 50,233,194 $ 49,192,022 $ 48,301,055 $ 47,138,640 $ Difference Levy Request and Levy Extended Total (335,138) $ (2,055,193) $ (2,290,442) $ (598,584) $ (1,767,886) $ (1,746,568) $ (374,697) $ (1,107,392) $ Difference Levy Reqeust and Actually Received Total (1,294,644) $ (3,329,429) $ (2,592,510) $ (951,705) $ (2,199,003) $ (2,382,821) $ (993,376) $ (1,198,148) $ Difference Levy Extended and Actually Received Total (959,506) $ (1,274,236) $ (302,068) $ (353,121) $ (431,117) $ (636,253) $ (618,679) $ (90,756) $ % Not Received 1.81% 2.41% 0.58% 0.69% 0.86% 1.29% 1.28% 0.19% % Received 98.23% 97.65% 99.42% 99.31% 99.15% 98.72% 98.74% 99.81% Corporate Tax Abatements 793,720 $ 894,462 $ 306,221 $ 318,456 $ 398,129 $ 541,585 $ 604,557 $ 107,118 $

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Property Tax Levy Calculation – Operating Levy Based on Actual 2018 Tax Levy

2017 EAV = $700,899,254 (Rate Setting EAV = Equalized Assessed

Valuation; about 1/3 of market value)

2018 Change in existing EAV = +4.0186503% (Actual per DeKalb County

Assessor)

$700,899,254 x 1.040186503 = $729,065,944 (Rate Setting EAV without new

growth)

2018 New Growth = $3,528,713 (Actual DeKalb County Assessor)
$3,528,713 + $729,065,944 = $732,594,657 (2018 Actual Rate Setting EAV)
2017 Operating Levy Extension from County = $49,066,803
Inflation (CPI) = 2.1%
$49,066,803 x 2.1% = $1,030,403 (Increase for inflation)
$49,066,803 + $ 1,030,403 = $50,097,206 (2018 extension base before new

growth)

$50,097,206 / $729,647,584 = 6.87142 (Operating Tax Rate for 2018)
6.87142 x $3,528,713 = $242,450 (Increase for New Growth)
2017 extension $49,066,803 + New Revenue ($1,030,403 + $242,450) = 2018
perating extension $50,339,656

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Property Tax Levy Calculation

2017 extension $49,066,803 + New Revenue ($1,030,403 + $178,169) = 2018
perating extension $50,339,656
2019-2020 Annual Debt Service Levy = $5,515,170 (Based on previously approved

debt)

Bond & Interest Abatement of $1,750,000 approved by BOE for 2018 tax levy
Adjusted Debt Service Levy $3,765,170/EAV $732,065,944 =Bond & Interest

Rate .51395

2018 Operating extension $50,339,656 + 2018 Debt Service $3,765,170 = Total

extension $54,104,826

Actual Actual Tax Year Tax Year $$ % 2017 2018 Increase Increase Total Operating Levy 49,066,803 $ 50,339,656 $ 1,272,853 $ 2.59% Total Bond and Interest 5,048,928 $ 3,765,170 $ (1,283,758) $

25.43%

Total Levy 54,115,731 $ 54,104,826 $ (10,905) $

0.02%

Compare Actual Tax Extensions 2017 and 2018

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Tax Bill Examples

District/Precinct 2018 EAV

Est. Market

Value 2018 Taxable EAV* 2018 D428 Tax Bill 2017 Actual D428 Tax Bill $ Change % Change District 06/Precinct DK24 39,422 $ 118,266 $ 39,422 $ 2,911 $ 2,926 $ (14) $

0.49%

District 05/Precinct DK03 51,371 $ 154,113 $ 45,371 $ 3,351 $ 3,349 $ 1 $ 0.04% District 08/Precinct DK11 61,984 $ 185,952 $ 55,984 $ 4,135 $ 4,137 $ (2) $

0.06%

District/Precinct 2018 EAV

Est. Market

Value 2018 Taxable EAV* 2018 D428 Tax Bill 2017 Actual D428 Tax Bill $ Change % Change District 06/Precinct DK24 39,422 $ 118,266 $ 39,422 $ 3,006 $ 2,926 $ 80 $ 2.73% District 05/Precinct DK03 51,371 $ 154,113 $ 45,371 $ 3,459 $ 3,349 $ 110 $ 3.28% District 08/Precinct DK11 61,984 $ 185,952 $ 55,984 $ 4,268 $ 4,137 $ 131 $ 3.17% * Less any exemptions

Compare 2017 to 2018 (includes 2018 Bond & Interest Abatement of $1,750,000) Compare 2017 to 2018 (without 2018 Bond & Interest Abatement of $1,750,000)

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Rate Setting Equalized Assessed Value (EAV) Tax Year 2018 $732,594,657

By Property Type By Township

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2018 Tax Year Tax Increment Finance (TIF) EAV $77,144,189

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2019 Tax Levy Considerations

Working with DeKalb County Assessor to get

estimated EAV and new growth numbers

City of DeKalb TIF2 expiration and TIF3 creation
Additional new growth from expiration of TIF2 and TIF1 properties now in

TIF3

Restructuring of Series 2010 Bonds
Using $10 million from Working Cash Fund to pay down principal
Bond and Interest Tax Abatements
State Property Tax Relief Grant
FY2020 - $50 million allocated for school districts
Still awaiting information regarding how dollars will be awarded
Property Tax Relief Task Force – created by State

8/2/19

Subcommittees: School Funding, Government Consolidation, Assessments

& Exemptions, PTELL & Local Governments, TIF Districts, Pensions, Social & Economic Disparities

Property Tax Freeze?