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

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 Revenue 49% 30% State Evidence Based Funding Other State Sources Federal Sources 6% Operating Funds: Education, Tort, Oper. & Maint., Transportation, IMRF, Working Cash 2

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 o Post Truth in Taxation notice in newspaper with date of public hearing o • Levy Adoption – December 2019 Hold public hearing o Adopt final tax levy request o Certificate of tax levy must be filed by last Tuesday in December (12/31/19) o • Tax Rates Established – March 2020/April 2020 After assessed property values are finalized o • Taxes Collected – May 2020 through November 2020 (posted as revenue in FY 2020-2021) 3

Property Tax Extension Limitation Law (PTELL) Property Tax Extension Limitation Law (PTELL) • Enacted in DeKalb County in 1999 o Regulates and limits the growth of property taxes o 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) o New Property/Growth (includes recovered TIF increment) – ability to capture o this growth outside of PTELL in the first year Any change in the district’s annual debt schedule o 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 4

Consumer Price Index 5

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History of Levy Request, Extension, and Received 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 Note: 2018 Tax Levy actually received amount is based on Sept 2019 county distribution report – still awaiting final distribution 7

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 • operating extension $50,339,656 8

Property Tax Levy Calculation 2017 extension $49,066,803 + New Revenue ($1,030,403 + $178,169) = 2018 • operating 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 o Adjusted Debt Service Levy $3,765,170/EAV $732,065,944 =Bond & Interest o Rate .51395 2018 Operating extension $50,339,656 + 2018 Debt Service $3,765,170 = Total • extension $54,104,826 Compare Actual Tax Extensions 2017 and 2018 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% 9

Tax Bill Examples Compare 2017 to 2018 (includes 2018 Bond & Interest Abatement of $1,750,000) 2017 2018 2018 Actual 2018 Est. Market Taxable D428 Tax D428 Tax % District/Precinct EAV Value EAV* Bill 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% Compare 2017 to 2018 (without 2018 Bond & Interest Abatement of $1,750,000) 2017 2018 2018 Actual 2018 Est. Market Taxable D428 Tax D428 Tax % District/Precinct EAV Value EAV* Bill 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 10

Rate Setting Equalized Assessed Value (EAV) Tax Year 2018 $732,594,657 By Township By Property Type 11

2018 Tax Year Tax Increment Finance (TIF) EAV $77,144,189 12

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 o TIF3 • Restructuring of Series 2010 Bonds Using $10 million from Working Cash Fund to pay down principal o • Bond and Interest Tax Abatements • State Property Tax Relief Grant FY2020 - $50 million allocated for school districts o Still awaiting information regarding how dollars will be awarded o • Property Tax Relief Task Force – created by State 8/2/19 Subcommittees: School Funding, Government Consolidation, Assessments o & Exemptions, PTELL & Local Governments, TIF Districts, Pensions, Social & Economic Disparities Property Tax Freeze? o 13