Important Definitions?

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2 Important Definitions? Property Tax Cycle The annual process of adopting a levy and then receiving the tax money. Tax Levy The amount of property tax dollars a school district requests to operate the district for the next fiscal year. Property tax extension The process of preparing property tax billings by the County Clerk Equalized Assessed Valuation (EAV) 1/3 the value of fair market value as determined by the Assessor s office.

3 Property Tax Cycle November Tentative Levy is adopted by BOE December BOE adopts tax levy Levy adopted in December funds the next school year District submits tax levy to County Clerk by last Tuesday of December. The district does not have its final EAV figure for that calendar year when the levy must be adopted. This typically arrives in the spring. March or April Property Tax Extension is released by the County Clerk May-June Property tax bills are sent to property owners June December Revenue is received from property tax payments.

4 Truth in Taxation Must be completed if a levy is greater than 5 percent of the previous year's extensions, excluding bond and interest. Notice must be published not more than 14 days or less than 7 days prior to a public hearing to review the proposed final property tax levy.

5 Formula for Determining Tax Revenue Tax Rate x EAV = Property Tax Revenue *867,527, = $39,984,363.63

6 Tax Revenues Where do They Go? School districts must deposit property tax revenue into appropriate accounting funds as determined by the Illinois School Code and the Illinois Program Accounting Manual. The amount a district can levy for each fund account is limited to an amount also set in the Illinois School Code, unless the district's registered voters approve a fund increase at an election.

7 Levy Funds Tax Rate with a Maximum Tax Rate Education Fund (10) General Education Fund 2.7% Leasing.05% Special Education.04% Operations and Maintenance Fund (20) 0.475% Transportation Fund (30) 0.20% Working Cash (70) 0.05% Fire Safety (90) 0.05%

8 Levy Funds Tax Rate Without a Maximum Tax Rate Debt Services (30) Principal and interest on bonds Tort (80) Liability Insurance, safety and security, legal fees, worker s Compensation Insurance IMRF/Social Security/Medicare (50) Non-certified staff retirement payments, Social Security payments, and Medicare payments

9 How Is My Tax Bill Calculated? Basic Formula Fair property value / 3 * tax rate = Tax Bill $250,000/3* = $3, Exemptions that can lower your tax bill Home Improvement Exemption Senior Freeze Exemption Owner Occupied Exemption Senior Exemption Returning Veterans Homestead Exemption Disabled Persons Homestead Exemption Disabled Veterans Standard Homestead Exemption

10 New Property and Tax Revenue New construction increases the EAV, but it does not hit the tax rolls until at least 1.5 years after it is completed. The Cycle A house is completed in January 2016 The EAV of this new house will be in the December 2016 levy. The revenue will be received for the school year. This means the district is responsible for educating any new students that moved into the district for 1.5 years without any tax revenue.

11 4.70 Tax Rate History Series

12 EAV % INCREASES

13 The Tax Rate The 2014 Tax Levy Rate was % ( school year) The proposed 2014 Tax Levy Rate is % ( school year) Estimated annual increase of $31.00 for property with a fair market value of value of $100,000

14 Funds with a Tax Rate Increase/ Decrease by Fund Working Cash.00344% Requesting full levy amount of.05% Tort.07682% Increased insurance costs due to student growth, increased staff, and market rates IMRF/FICA/Medicare % The IMRF/FICA rate will increase slightly to cover increased staff costs for retirement. Bonds and Interest % EAV increased, so the tax rate for bonds decreased.

15 Facts Contributing to the Tax Rate Increase The district is levying a higher amount in the Tort Fund to meet the increased needs of insurance and liability protection. The IMRF and Social Security is higher due to increased staffing needs due to growth. Continued enrollment growth and level EAV growth increase the tax rate because more funds are needed to support the district s educational programs.

16 2015 Levy Extension The Tax Rate in the 2015 levy is %. Estimated annual increase of $31.00 for property with a value of $100,000 The tax rate extension (below) represents a ballooned amount, to ensure we receive all of our tax money if the EAV increases at a rate higher than the estimated 3.8% If the EAV increases, the tax rate will still remain at % The proposed corporate and special purpose property taxes to be levied for 2015 are $ $35,725, or a 11.74% increase over the previous year s actual extension. The estimated property taxes to be levied for debt service and public building commission leases for 2015 are $5, or a.70% increase over the previous year. The estimated total property taxes to be levied for 2015 are $41,495, or an 10.06% increase over the previous year s actual extension.

17 2015 LEVY CALCULATION PAGE Consumer Price Index: 0.80% Limiting Rate: (Prior Year Extension x (1+Lesser of 5% or CPI)) (Total EAV - New Construction) Actual Total EAV for 2014: $835,768,747 Estimated % change from 2014 EAV: 3.80% Estimated New Construction for 2015: $0 Estimated Total EAV for 2015: $867,527,959 Limiting Rate: N/A Total change from prior year: 3.80% Estimated Capped Extension: N/A Maximum Tax Rate: Individual Fund Estimated Maximum Extension: Individual Fund Estimated Maximum Extension: Manual Override and Non-Capped funds levy input: Prior Year Extension: Balloon % input: Levy Amount: Educational $22,565, % $23,423, $23,423, % $24,594, Operations & Maintenance $3,969, % $4,120, $4,120, % $4,326, Transportation $1,671, % $1,735, $1,735, % $1,821, Working Cash $389, % $433, $433, % $455, Municipal Retirement $701, Input in Manual Override Input in Manual Override $873,412 $873, Social Security $875, Input in Manual Override Input in Manual Override $1,058,214 $1,058, Fire Prevention & Safety * $417, % $433, $433, % $455, Tort Immunity $630, Input in Manual Override Input in Manual Override $1,320,378 $1,320, Special Education $334, % $347, $347, % $364, Leasing $417, % $433, $433, % $455, $ % $0.00 $0.00 $0.00 Extension/Levy $31,973, $30,927, $30,927, $3,252, Levy $35,725, Levy in excess of estimated extension: N/A SEDOL IMRF $0.00 SEDOL IMRF $0.00 Bond and Interest: $5,729, Bond and Interest: $5,769, $5,769, Total Extension/Levy $37,702, Total Levy $41,495,256.38

18 2015 Levy Chart (Projected Revenue) Levy Tax Rate 2014 Extension 2015 Tax rate 3.8 % EAV Increase + or - New Money Change inrate Education % $ 22,565, % $ 23,423, $ 857, % Operations and Maintenance % $ 3,969, % $ 4,120, $ 150, % Transportation % $ 1,671, % $ 1,735, $ 63, % Working Cash % $ 389, % $ 433, $ 44, % IMRF % $ 701, % $ 873, $ 172, % Social Security % $ 875, % $ 1,058, $ 182, % Fire Prevention and Safety % $ 417, % $ 433, $ 15, % Tort % $ 630, % $ 1,320, $ 690, % Special Education % $ 334, % $ 347, $ 12, % Leasing % $ 417, % $ 433, $ 15, % Bonds % $ 5,729, % $ 5,769, $ 40, % Total Tax Rate % % %

19 FY 17 Budget and the Levy With the proposed Levy, the Ed Fund is projected to be balanced for the school year. The balanced Education Fund is based on the following assumptions: 3.8% increase in EAV Lease Levy to continue to help fund technology Supplies and purchased services are rolled at the current FY 16 budget levels There are some resources set aside for growth.

20 Questions? Contact Karen Beverlin