County School Facilities Sales Tax

Transcription

1 County School Facilities Sales Tax Presentation for: Capital Area Realtors Association August 9, 08 Illinois County School Facility Tax Public Act

2 Illinois County School Facilities Sales Tax Map (as of August, 08) Jo Daviess McHenry Lake Carroll Ogle 5 Whiteside Lee Kane Cook = Counties with CSFT (5) Bureau La Salle Will Henry Mercer Kankakee Stark Marshall Warren Knox Peoria Woodford Livingston Iroquois Fulton Tazewell Ford McLean Hancock Mason Logan De Witt Adams Menard Brown Cass Macon Piatt Morgan Sangamon Douglas Scott Edgar Pike Christian Coles Shelby Greene Clark Cumberland = Counties in which CSFT failed (7). Number indicates how many times CSFT failed. = Counties Voting November Jersey Fayette Bond Madison 3 Clinton Marion 3 St. Clair Washington Monroe Jefferson Randolph Perry Franklin Jasper Clay Wayne White Jackson Saline Gallatin Union Pope Hardin

3 What is Taxed Sales Tax Base: Everything in the municipal and county sales tax base is included in the tax base except for: Cars, Trucks, ATVs Boats & RVs Mobile homes Unprepared Food Drugs (including over the counter and vitamins) Farm Equipment and Parts Farm Inputs Services are not taxed If it is not currently taxed, it will not be taxed

4 Uses for Revenue Uses of Sales Tax New Facilities Additions & Renovations Security, Entrances, Safety, Disabled Access Technology Infrastructure Architectural Planning Durable Equipment (non moveable items) Fire Prevention and Life Safety Land Acquisition Ineligible Uses Direct Instructional Costs Text Books Buses Detached Furniture & Fixtures Computers Moveable Equipment Operating Costs Salaries and Overhead Energy Efficiency Parking Lots Demolition Roof Repairs Refund Bonds or Abate Property Taxes Levied to Pay Bonds Issued for Capital Purposes Every district decides for themselves how to spend the funds 3

5 County School Facility Tax Worksheet for Sangamon County Schools Debt Capacity and Abatement Impact Per District D R A F T The Money Follows the Student % of EAV in the County () 07-8 Housed Enrollment 07-8 Housed Enrollment adjusted for in- County EAV () Adjusted Annual CSFT per District (3) Estimated Debt Issuance with 0% Annual Growth in Sales Tax,.5x 4.5% Rate for 0 Years (4) Calendar Year Final Maturity of Existing Debt Adjusted Net CSFT at % () Fiscal Year 08 Debt Service per District from 07 County Tax Rate Sheet % Change Potential Abatement Effective Available Based Abatement $ on LESSER of Amount per CSFT Funds or $00,000 House FY 08 Debt Value Based on Service column (5) County District 07 District Total EAV () Percent of Total Sangamon Tri City CUSD $8,49,736 00% % $39,434 $4,073,400 //03 $69,760 $0.47 $9.70 Sangamon Rochester CUSD 3A $7,036,66 99%,47,3 7.5% $,559,370 $6,7,349 //035 $,59,389 $0.58 $57.6 Sangamon Ball Chatham CUSD 5 $77,50,03 00% 4,807 4,807 6.% $3,37,085 $35,09,098 //09 $5,88,435 $0.44 $9.47 Sangamon Pleasant Plains CUSD 8 $0,384,8 99%,67,57 4.% $88,03 $9,79,470 /5/0 $790,438 $0.36 $98.03 Sangamon Auburn CUSD 0 $9,079,57 00%,333,38 4.5% $93,59 $9,694,459 //034 $65,336 $0.55 $49.5 Sangamon Pawnee CUSD $75,886,63 73% % $309,83 $3,4,30 //0 $85,44 $0.4 $66.7 Sangamon Riverton CUSD 4 $4,357,95 00%,374, % $963,854 $0,030,99 /5/06 $949,85 $0.76 $08.77 Sangamon Williamsville CUSD 5 $87,378,90 98%,539,56 5.% $,063,67 $,063,688 //0 $,765,000 $0.57 $55.09 Sangamon New Berlin CUSD 6 $87,3,07 98% % $637,0 $6,63,033 //06 $,60,877 $0.34 $9.98 Sangamon Springfield SD 86 $,994,50,443 00% 4,94 4,94 48.% $0,07,66 $04,346,93 //06 $7,879,759 $0.40 $08.0 Cass A-C Central CUSD 6 $5,889,9 3% % $0,064 $04,73 $43,070 $0.0 $5.30 Christian Edinburg CUSD 4 $45,3,745 0% % $300 $3,7 $59,984 $0.00 $0.8 Logan Mt. Pulaski CUSD 3 $3,587,90 3% % $9,47 $98,099 $3,58 $0.0 $.7 Macon Sangamon Valley CUSD 9 $89,4,54 40% % $0,507 $,07,356 $63,83 $0.8 $50.7 Macoupin North Mac CUSD 34 $3,73,5 6%,34 0.7% $48,968 $,550,6 $507,044 $0. $33.06 Menard Porta CUSD 0 $58,4,353 0%,38 0.0% $960 $9,993 $,979,79 $0.00 $0.7 Menard Athens CUSD 3 $4,57,084 38%,4 44.4% $97,686 $3,097,87 $,34,400 $0.4 $65.3 Morgan Waverly CUSD 6 $5,73,99 4% % $08,5 $,9, $300,985 $0. $56.7 Total $4,739,69,954 9,66 00% $0,807,76 $6,53,358 Value of a Student $70 () As reported by ISBE Annual Financial Reports and County () Enrollment of County resident students as reported by ISBE Fall Housing Report then adjusted by factor of % of EAV in the County (3) Based on % sales tax, derived from the Illinois Department of Revenue CST data, excluding non-taxed items, less % State fee (4) Example interest rate for illustrative purposes only, should not be taken as a willingness by Stifel to underwrite at these levels (5) Assumes $6,000 Homestead exemption Prepared by Stifel Nicolaus & Company, Inc. - for additional information please contact Tom Crabtree at ext June 6, $7,069,476 N/A 003 $7,9, % 004 $8,097, % 005 $8,03, % 006 $8,36,40.93% 007 $9,049, % 008 $8,790, % 009 $8,35, % 00 $9,658,70 7.% 0 $0,035,77.9% 0 $0,605,040.84% 03 $0,98,34.57% 04 $,85,8.7% 05 $,309,59 0.% 06 $,0,3 -.35% 07 $0,88, % 4

6 Example Sales Tax Rates Governmental Unit Sales Tax Rate Springfield 8.75% Rochester 6.5% Jacksonville * 8.00% Bloomington 8.75% Peoria * 9.00% Champaign * 9.00% Decatur * 9.5% Galesburg * 8.75% *After passage of CSFT Source: Illinois Department of Revenue 5

7 Required Language on the Ballot Ballot Language (cannot change): Shall a retailer s occupation tax and a service occupation tax (commonly referred to as a Sales Tax ) be imposed in (name of county) at a rate of % to be used exclusively for school facility purposes? 6

8 Distribution of Sales Tax Revenues do not flow through the Illinois General Assembly budget process and are not subject to cuts similar to what districts currently experience relating to State Aid. All shoppers in County pay on qualified sales Distributed by R.O.E. on a per residentpupil basis % withheld by IL Dept. of Revenue Common to sales taxes The money follows the student 7

9 Important Disclosures and Certifications Stifel, Nicolaus & Company, Incorporated ( Stifel ) has prepared the attached materials. Such material consists of factual or general information (as defined in the SEC s Municipal Advisor Rule). Stifel is not hereby providing a municipal entity or obligated person with any advice or making any recommendation as to action concerning the structure, timing or terms of any issuance of municipal securities or municipal financial products. To the extent that Stifel provides any alternatives, options, calculations or examples in the attached information, such information is not intended to express any view that the municipal entity or obligated person could achieve particular results in any municipal securities transaction, and those alternatives, options, calculations or examples do not constitute a recommendation that any municipal issuer or obligated person should effect any municipal securities transaction. Stifel is acting in its own interests, is not acting as your municipal advisor and does not owe a fiduciary duty pursuant to Section 5B of the Securities Exchange Act of 934, as amended, to the municipalentity or obligated party with respect to the information and materials contained in this communication. Stifel is providing information and is declaring to the proposed municipal issuer and any obligated person that it has done so within the regulatory framework of MSRB Rule G 3 as an underwriter (by definition also including the role of placement agent) and not asa financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm s length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate. These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or counsel as you deem appropriate. Additional information is available upon request Stifel, Nicolaus & Company, Inc., 50 N. Broadway, St. Louis, MO 630 8