1. Fairview South School District 72
2014 Tax Levy
11/18/14

2. Tax Levy Calendar
July 10 – Final Tax Rate Report Available from County Clerk
July 10 – Nov. 7 – Preparation of 2014 Tax Levy
Nov. 10 – Finance Committee Meeting
Nov. 18 – Levy Presentation to Board
Dec. 16 – Public Hearing to adopt levy
Dec. 23 – Levy delivered to county clerk (on or before this date)

3. Tax Levy Process
If levy increases by more than 5% of previous year’s extension, a public hearing must be held (Truth in Taxation)
Levy for monetary needs of district
Maximum rate: Ed, O&M, Trans, SpEd, Working Cash
1.5% (CPI) levy increase limit on existing property (PTELL)
Bond and Interest – based on payment schedules, not under tax cap

4. Equalized Assessed Valuation

5. Tax Extension

6. EAV/New Property Estimates
EAV has dropped 44.75% in last 5 years
Neighboring districts are estimating anywhere from a 2-5% drop
Effect of the multiplier
Non-triennial
Estimating 4.23% decrease
New property has never been above .77% of EAV for D.72 since 2006
Average new property over last 5 years = $756K
Choosing higher estimate to capture revenue ($3 million)

7. Property Tax Extension Limitation Act (PTELL)
PTELL or the tax cap was implemented in Cook County with the 1994 Levy
Puts a cap on the increase in property tax extensions to the lesser of 5% or the CPI
Bonds are excluded from the tax cap
New property to the tax base falls outside the cap – allows districts to capture new tax dollars available to the district
Falling new property in District 72 has limited the increase to just above the CPI

8. PTELL Calculation Tax Extensions for the 2013 tax year = $9,188,373
2014 Proj. EAV = $370,953,361
New Property (proj.) = $3,000,000
CPI as of December 31, 2010 = 1.5%
#1 – Numerator of Limiting Rate = 2013 Ext. * (1+CPI) = $9,326,199
#2 – Denominator of Limiting Rate = 2014 EAV-New Property = $367,953,361
#3 – Limiting Rate = 2.535
#4 – Extended Taxes = 2014 EAV/100*Limiting Rate
#5 – Add’l from New Property = $71,169

9. 2014 Proposed Levy

10. 2014 Levy Highlights
The 4.99% increase in the 2014 levy over the extension does not require a Truth in Taxation notice.
The tax rates will continue to go up as long as the EAV in the district goes down=> out of our control
Defeasance eliminates the debt service levy and prevents an even larger tax rate increase