Meeting Date:   11/18/2019 - 7:00 PM
Category:   Action Considerations
Type:   Action
Subject:   Action Consideration #1911-07 - Approval - Tentative Levy - Tax Year 2019
File Attachment:  
Tax Levy and Extension History.pdf
Tax Levy-Truth in Taxation.pdf
Summary The Board of Education will be asked to approve the tax levy for Tax Year 2019 at the Board meeting on Dec. 16, 2019. The process for determining the levy was part of budget process & finalized as assessment information was received from the Will County Supervisor of Assessments’ Office. Listed below are the steps used to determine the levy.

1. The Tax Year 2019 Equalized Assessed Valuation (EAV) is unknown at this time. The Will County Assessor’s Office estimates an avg. overall increase in existing property values of approx. 3.4% in our District, which was used to estimate the 2019 EAV. These estimates have historically been fairly accurate. The actual increase in existing property EAV for 2018, was 2.7% while the 2018 estimated EAV increase last November was 2.6%.

2. In September 2019, the Will County Assessor’s office provided Dist. 205 with a tentative $20,090,471 new property estimate. The new property estimate is extremely important because new property is outside of the property tax cap for the 1st year & does not impact any current taxpayers. Typically, additional new property will be added before the final number is determined. Therefore, I have inflated the new property estimate to $25,000,000 to capture any final additions. There is no harm in overestimating because the Will County Extension Office will compute the extension based on the actual new property EAV, not on the estimate. The Extension Office will adjust the levy down to the legal limit but has no authority to adjust the number up to the legal limit. I have included with this memo an EAV History Chart to show our past EAV growth.

3. Using the existing EAV projection, new property growth projection, 2018 actual extension, & the CPI of 1.9%, I projected the 2019 limiting tax rate. The limiting rate is the total projected tax rate excluding the Bond & Interest levy. When taxes are extended, the final tax rate must be equal to or less than the limiting rate.

4. Using steps 1 through 3 above, I projected a 2019 levy which I estimate will best match the final tax extension. However, it is very important that the levy be higher than the final extension. It is better to have the levy reduced by application of the Property Tax Extension Limitation Law than to under-levy. A levy that is less than the final extension is revenue lost, not only this year, but for all future years.

5. Steps 1 through 4 above determine the levy. The proposed tax levy is attached to this memo. As the taxes to be levied are less than 105% increase over the taxes extended the previous year, District 205 is not required to hold a Truth-In-Taxation Hearing & therefore not required to publish the tax levy. The total 2019 levy excluding debt service is estimated to increase 2.87% over the 2018 extension. I expect the final 2019 extension percentage increase to be equal to or less than this figure when the extension office applies the PTELL. The 2018 final extension percentage increase turned out to match my estimate from November 2018 exactly (3.44%).
Recommended By:
Signed By:  
Stefanie Croix - Director of Business Services
Signed By:  
Robert McBride Ed.D - Superintendent