1. 2015 Tax Levy Board of Education Meeting December 21, 2015 1

2. Property Tax Impact Local property taxes represent approximately 53.70 percent of the total district budgeted revenues Property taxes represent 55.90 percent of the Regular Education Fund’s budgeted revenues 2

3. 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 FY 15 estimated increase = 2.75% 3

4. PTELL – “Tax Cap” Law Property Tax Extension Limitation Law Limits the increase in property tax extensions to 5% or the CPI whichever is less. 4 2014 CPI = 0.80%

5. Tax Extension Limit 5 2014 Extension = $91,842,775 2014 CPI = 0.80% Maximum 2015 Extension based on the 2014 Extension = $93,202,395 (includes new property growth EST. $13,000,000) 2015 Levy Amount = $94,367,425

6. FAQ: Why is the amount levied more than what is allowed? 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 6

7. 2015 Levy Request by Fund Education Fund$ 64,829,863 Operations & Maintenance$ 13,377,591 Transportation$ 4,843,099 Special Ed$ 1,409,001 Tort$ 3,937,429 Municipal Retirement$ 3,292,945 Social Security$ 2,677,497 TotalLevy $ 94,367,425 7

8. Average Homeowner Property Tax Increase Impact Market Value EAV 2014 Tax Rate $5.165 2015 Est. Rate $5.211 Increase $100,000$27,333$1412$1425$13 $150,000$44,000$2273$2293$20 $200,000$60,667$3133$3161$28 $250,000$77,333$3994$4030$36 Assumes $6000 homestead exemption 8

9. Questions Springfield Public School District 186 Sangamon County 9