Transcript 2006 Tax Levy Process

2011 Tax Levy Hearing
Board of Education Meeting
December 19, 2011
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Truth-In-Taxation Act
 Requires Districts to ESTIMATE the dollar
amount to be collected from property taxes
 Disclose proposed increase if aggregate
dollar amount (levy) is more than 105% of
prior year’s extension
 Publish Notice in Newspaper
 Hold a Public Hearing
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PTELL – “Tax Cap” Law
Property Tax Extension Limitation Law
Limits the increase in property tax extensions to 5% or
the CPI whichever is less.
County Clerk
Limits Actual
Increase CPI
1.5%
Proposed
Estimate
4.6%
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Five Year Levy Comparison
(what we ask for vs. actual dollars received)
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FAQ: Why is the amount extended
less than what is requested?
 In order to maximize revenues, we prepare
our levy by estimating the amounts at a
higher level than anticipated.
 Our reason for doing this is because property
growth in the district is an unknown.



Equalized Assessed Valuation
New Construction
Expired TIFs, Annexation, Disconnection
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Historical Tax Rates for SPS 186
Actual 2010 Tax Rate $4.6422
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FAQ: If my tax rate for the school district has
basically remained steady and we are
under tax caps, then why am I paying
more and more taxes?
Two reasons could account for this:
1. The assessed valuation on your property has
increased and you are therefore paying the
tax rate per $100 on a greater value.
2. Other municipalities also levy taxes and are
included on your tax bill. Those
municipalities may have increased their rate.
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Average Homeowner
Property Tax Increase Impact
Market
Value
EAV
2009
Tax
$4.5398
2010
Tax
$4.6422
Increase
$100,000
$27,333
$1241
$1268
$27
$150,000
$44,000
$1998
$2042
$44
$200,000
$60,667
$2754
$2804
$50
$250,000
$77,333
$3511
$3590
$79
Assumes $6000 homestead exemption
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Property Taxes Represent
42% of Budget
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2011 Levy Request by Fund








Education Fund
Operations & Maintenance
Transportation
Special Ed
Tort
Leasing
Municipal Retirement
Social Security
Total Levy
$ 59,646,721
$ 11,582,776
$ 4,725,025
$ 1,281,228
$ 3,183,174
$
890,343
$ 2,655,631
$ 2,098,576
$ 86,063,474
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Levy Process Timeline
November 7
BOE Adopts Tax Rates
December 6
Tax Hearing Notice Published
in The State Journal Register
December 19
Public Hearing
Adoption of Tax Levy
Resolutions
December 21-28 File Certificate of Levy with
County Clerk
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Springfield Public School District 186
Sangamon County
Questions
and
Answers
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What is the Tax Levy?
 Tax Levy is a request for property tax dollars based
on the estimated needs of the District

It’s generally estimated to insure generating
maximum revenue under the tax cap.

You cannot receive more taxes than you are
entitled to under the tax cap.

The Bond Levy (automatically extended), equals
the principal and interest due in the following year
on the District’s outstanding debt.
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Tax Levy
 Tax Levy requests will be reduced under these
conditions:


If a fund’s tax rate is restricted (Education,
Building, Transportation, Working Cash, Life
Safety, Leasing), the tax levy in that fund can
be reduced.
If the aggregate levy request generates a levy
in excess of the amount allowed under “tax
caps” the levy and subsequent overall tax rate
will be reduced.
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How Is Estimated Tax Levy Determined?
 Equalized Assessed Valuation (EAV)
 New Property Growth
 Consumer Price Index (CPI)
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Equalized Assessed Valuation (EAV)
FY
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
Levy
2000
2001
2002T
2003
2004
2005T
2006
2007
2008T
2009
2010
EAV
1,469,931,480
1,527,272,163
1,566,700,503
1,617,725,772
1,629,936,528
1,695,261,560
1,773,977,471
1,833,250,647
1,862,188,492
1,895,446,220
1,919,953,759
Diff ($M)
$11.4
$57.3
$39.4
$51.0
$12.2
$65.3
$78.7
$59.3
$28.9
$33.3
$24.5
Change (%)
0.78
3.90
2.58
3.26
0.75
4.01
4.64
3.34
1.58
1.79
1.29
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Historical Consumer Price Index
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How is the Final Extension Determined?
 The Sangamon County Assessor’s office
establishes property valuations.
 Taxing districts file their levy request with the
County Clerk’s Office.
 To produce the revenue requested, the
County Clerk uses the levy to determine the
tax amount to be “extended” against all
properties located within the boundaries of
the taxing district.
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How is the Final Extension Determined?
 The County Clerk’s Office determines the rate
needed per $100 of taxable value to generate
the requested revenue, based on the value of
all taxable property within the district
boundaries.
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Basic Tax Formula
Per $100 of Equalized Assessed Valuation
(EAV)
X ____________ (Tax Rate) =
TAX EXTENSION
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Limiting Rates
 Limits under Illinois law can restrict the
revenue, either through statutory maximum
rates for certain purposes and/or through “tax
caps,” which limit the total amount extended.
 Extension limits are not applied to funds
needed to pay bonds
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Tax Extension Limiting Rate
 Basic Algebraic Formula:
(Prior Year Extension x (1+Lesser of 5% or CPI)
(Total EAV – New Construction – Expired TIFs)
2009 Extension = $79,210,698
CPI = 2.7% EAV= $1,933,355,144 $1,919,953,759
New Construction = $21,136,709 $17,294,964
Limiting Rate: 4.208% 4.276
Max $ from capped funds = $82,238,751 $82,089,543
Springfield Public School District 186
Sangamon County
Glossary of
Terms
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Glossary of Terms
Assessment – the process of valuing real
property for tax purposes.
Assessed Valuation – the taxable value placed
on the property by the local
assessor.
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Glossary of Terms
Collection -
receipt of property owners’
payments by the county
treasurer.
Distribution - payment of tax receipts by the
county treasurer to schools
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Glossary of Terms
Equalization – adjustments to local assessed
valuations to bring about a
median level of one-third of fair
market value.
Equalized Assessed Valuation (EAV) – a
property’s valuation after county
and state equalization are
performed.
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Glossary of Terms
Extension -
the process by which the county
clerk calculates an agency’s tax
rate.
The total extension is the product
of the agency’s EAV multiplied by
its calculated tax rate, and is
equal to the total property tax
billings on the agency’s behalf.
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Glossary of Terms
Levy -
the amount of the school district’s
need for property taxes for each
fund as certified in the board of
educations annual levy resolution
in December.
Multiplier -
the factor applied to a township
or county’s total assessed
valuation to equalize it to onethird of fair market value, the rate
specified in the law.
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Glossary of Terms
Tax Base -
the total equalized assessed
valuation (EAV) of a school
district.
Tax Cap -
shorthand for the Property Tax
Extension Limitation Act, which
was enacted to control the
growth of property taxes of
schools and some other units of
governments.
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Glossary of Terms
Tax Rate -
the amount of property taxes
extended, expressed as a
percentage of EAV (e.g. a rate of
2.50 percent or 2.50 computes to
a tax bill of $2.50 per $100 EAV.)
Tax Year -
the calendar year in which
property is assessed and the levy
is made. Taxes are billed,
collected and distributed in the
following calendar year.
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