Blue Ridge School District 18 Diamond in the Cornfield 2017 Tax Levy Updated Nov. 16, 2017

64% Local 10% State 4% Federal 23% On Behalf Payments

Increase over last year=3.43% 5 yr. average increase = 3.78% 10 yr. average increase = 2.95%

Evidence Based Funding Model Key Components Research-based funding formula – goal to adequately and equitably fund education for all school districts in the State of Illinois over time Ties funding to 26 evidence-based best practices, used to create a unique Adequacy Target for each school district New dollars go to neediest districts first – those furthest from their Adequacy Target No district loses money, including CPS

Evidence Based Funding Model Basics Calculate each district’s Adequacy Target based on 26 evidence-based criteria Consumer Wage Index (CWI) is used to adjust for cost of living differences Establish Base Funding Minimum – total each district currently receives from the state. No district loses money in new formula. Local Capacity Target: Determines how much a district should be contributing through property taxes Includes Property Taxes and CPPRT Districts with lower property wealth are expected to contribute less than higher wealth districts

Evidence Based Funding Model Fund Distribution Each district is assigned a Tier based on how close a district is to its Adequacy Target Tier % of New Funding Target Ratio Tier 1 50% TBD (in modeling ranged from 60-65%) Tier 2* 49% (*includes Tier 1 districts) 90% Tier 3 0.9% 100% Tier 4 0.1% >100%

Evidence Based Funding Model Resources Overview Video: https://www.youtube.com/watch?v=jx6Q-NPfBg8 Detailed PowerPoint Explanation: https://www.isbe.net/Documents/EBF_Presentation_Overview.pdf

TIF 2 – TAX YEAR 2016 Tax Year 2016 Gross Loss in Local Property Taxes due to TIF 2 = $178,939 At this time it is not known the impact of TIF on the Evidence-Based Funding Formula. It is anticipated that the state will develop an estimation tool to evaluate impact, but it is not available at this time as the focus is finalizing the current year’s state claim.

Farmland Assessments As of the 2015 Levy (payable in 2016), farmland assessments were revised At that time, significant discrepancies were found to exist over the Certified Values and the EAV for farmland. Although a 2:1 difference was expected between the best soils and the least productive soils, instead the ratios were closer to 43:1. Steps were taken to make the values fairer for tax assessment purposes To correct the discrepancy, all Certified Values for all soil types will increase by 10% of the median Certified Value For Blue Ridge, our soil types are typically far above the median and would usually have seen a 10% annual increase. With this change we will see increases closer to 5% while the values are made fairer over a 15-16 year time frame. As of 2018, the ratio will be a little over 7:1 On the positive side, because of the way the process is structured farm values will continue to increase for us

Calculated vs. Certified Values for Farm Land Average Management PI* 2014 EAV 2014 Certified Value 2018 EAV 2018 Certified Value 82 590.28 15.26 945.69 102.96 90 694.70 37.53 1106.90 125.24 100 825.23 105.55 1308.41 193.25 111 968.81 203.32 1530.07 291.02 125 1151.55 485.68 1812.19 573.39 130 1216.81 645.93 1912.94 733.64 The soils in our district tend to fall in the 121-122 range Farmers pay tax on Certified Values These values will increase by 10% of the Certified Value of the PI 111 soils *PI = Productivity Index

Pending Unknowns Pension Reform – Cost Shift to Schools Cost is 7.5% of certified payroll Annual cost to the School District = $280,000 +

Bond Issues as of 6/30/2017 Name Year Issued Amount Originally Issued Outstanding amount 06/30/2017 Year Debt is Retired General Obligation Building Bonds 2012 6,500,000 6,115,000 2032 Life Safety Bonds 2013 2,455,000 2,220,000 2028 General Obligation Refunding Bonds 2014 2,285,000 2033 2017 548,000

A Truth in Taxation hearing will be scheduled for Levy Summary Levy Excluding B/I* Tax Rate Including B/I* 2016 (actual) $6,857,627 4.89065 $7,631,877 5.43907 2017 (requested) $7,323,659 $8,103,813 2017 (expected) $7,184,684 4.8769 $7,964,838 5.4065 % increase of requested dollar amount = 6.89% excluding B/I* = 6.18% including B/I* *B/I = Bond and Interest Payments A Truth in Taxation hearing will be scheduled for Dec. 20, 2017, 6:50 p.m.

What’s Important? Providing high quality education for our students Protecting the bottom line Keeping future goals in mind