Consolidated School District 158
650 Academic Drive
Algonquin, Illinois 60102
(847) 659-6158 • www.district158.org
To:
Board of Education and Administration
From:
Mark Altmayer, Chief Financial Officer
Date:
December 20, 2012
Subject:
Levy 2012 – Property Tax Extension
Board of Education Special Meeting, December 20, 2012
General
For your review there are several documents that will help guide you through the 2012
Levy.
Attachment A – 2012 Levy Calculation Page – Ballooned .75%. See Tax Levy Summary
below.
Attachment B – Certificate of Tax Levy – (Board signatures required after Board Approval)
Attachment C – Truth in Taxation Certificate - (Board signatures required after Board
Approval)
Attachment D – Historical Tax Levy Extension Worksheet by Fund – Includes Estimated Tax
Rates
Attachment E – Charts and Graphs outlining Historical EAV and New Construction by Levy
Year
District Recommends Abating Debt - Keeping Property Taxes Flat
As with prior year, and due to the District’s receipt of the Capital Development Award, the
District 158 Administration and Board believe that it is again not appropriate to increase the
levy (the amount of money the district receives from local property taxpayers), by the
legally permissible increase of 3%, which would be the Consumer Price Index (CPI) inflation
rate. This represents two years in a row whereby the District has not increased the levy by
the legally permissible amount.
By taking this action, consistent with prior year, District 158 will not receive an increase in
tax dollars from the community for the 2012 levy year, other than from new construction.
Taxpayers should be aware, however, that individual bills may go up or down based on
individual assessments as determined by the township assessor.
With CPI at 3% for Levy Year 2012 (tax bills paid in 2013), before new construction, we will
extend approximately $1.54M in additional operating property taxes in accordance with the
Property Tax Extension Limitation Law (PTELL). Additional dollars will be levied for new
Consolidated School District 158
650 Academic Drive
Algonquin, Illinois 60102
(847) 659-6158 • www.district158.org
construction which has no impact on existing homeowners. To offset this increase, we are
set to abate (not tax) the $1.54M increase. We are also set to abate the scheduled debt
increase (approximately $3.0M million). Thus, $4.5M in total will be abated. The dollars to
abate this debt will come from the remaining proceeds received as part of the Series 2010
debt refinancing ($3.4M) as well as ($1.1M) from the proceeds of the Capital Development
Award.
Truth in Taxation
In accordance with the Truth in Taxation – A school district proposing to increase its aggregate
levy more than 105 percent of its prior year’s extension, must publish notice prior to such a
hearing as required by law. District 158 is not proposing to increase its aggregate levy by more
than 105% of prior year’s extension.
With CPI at 3% combined with the ballooning of the levy at .75% (to cover the estimate on new
construction), the District’s aggregate levy will be less than 105 percent of prior year’s
extension. Although the actual extension is short of the 105 percent, Administration feels that is
it still appropriate to conduct a hearing to discuss the levy.
In an effort to avoid the confusion that is often generated with the required levy publication,
Administration is holding the hearing but did not issue/publish the levy publication that would
only be required under Truth in Taxation (if the District’s aggregate levy exceeds 105% of prior
year’s extension).
The 2012 Tax Levy Summary as well as the timeline of the levy process follows:
o
o
o
Levy Hearing - Thursday, December 20, 2012
2012 Property Tax Extensions Approval at Regular Board Meeting - Thursday, December
20, 2012
File Certificate of Tax Levy with county clerks no later than Friday, December 21, 2012,
although the tax levy is due to the County Clerk’s Office no later than the last Tuesday in
December.
Tax Levy Summary
Using the McHenry and Kane County assessor estimated EAV reports, 2012 EAV (before Board
Review) is expected to decrease (10.3%) to approximately $1.133B from $1.263B in levy year
2011. New construction, which approximates $10.47M, is a 34.5% increase from prior year’s
$7.78M.
New construction at $10.47M represents additional taxes to the District
approximating $495k.
Primarily driven by a decrease in assessed values, combined with the 3% CPI, the operating
funds capped tax rate is expected to increase to approximate $4.73, up from last year’s $4.08.
Consolidated School District 158
650 Academic Drive
Algonquin, Illinois 60102
(847) 659-6158 • www.district158.org
The total tax rate, which includes the Bond & Interest Fund, is expected to approximate $5.44, a
$.60 cent increase from prior year, which is entirely the result of rapidly declining assessed
values.
The district continues to try to minimize the impact to the community via the restructuring and
abatement of debt. Without the abatements associated with the CPI increase and the increase
in bond debt, the total tax rate that would have been otherwise extended approximates $5.83,
7.1% higher than the estimated $5.44 rate.
Furthermore, in an effort to provide a more balanced budget and to ensure adequate fund
balances by fund, manual override adjustments on the levy calculation have been done,
allocating dollars out of the Education Fund and into the Transportation Fund. As we continue
to provide more visibility and accountability into various classes of transactions, next year we
will be looking into reestablishing the Special Education and Life Safety levies. This
reestablishment does not increase the overall levy; it is simply a more refined allocation/request
of levy dollars.
Consistent with prior year, the 2012 levy is ballooned so that if new construction comes in
higher than the estimated $10.47M, the levy request will be enough to cover any underestimate
by the county on new construction. With a .75% balloon, the levy is in excess of the current
estimated extension by approximately $401k. Although highly unlikely, this overestimate will
cover us on an additional $8.47M, or 81% of new construction.
RECOMMENDATION
Administration recommends approving the 2012 Levy at the December 20, 2012 Board Meeting.
2012 LEVY CALCULATION PAGE
Limiting Rate:
Limiting Rate:
Estimated Capped Extension:
Actual Total EAV for 2011:
Estimated % change from 2011 EAV:
(Prior Year Extension x (1+Lesser of 5% or CPI))
(Total EAV - New Construction)
Estimated New Construction for 2012:
Estimated Total EAV for 2012:
Total change from prior year:
4.7335%
$53,666,643.71
Prior Year Extension:
Educational
Operations & Maintenance
Transportation
Working Cash
Municipal Retirement
Social Security
Fire Prevention & Safety *
Tort Immunity
Special Education
Leasing
Consumer Price Index:
$39,886,622.31
$6,240,555.77
$2,933,590.78
$312,224.04
Maximum Tax
Rate:
4.00%
0.75%
0.00%
0.50%
$1,124,672.42
$1,124,672.42
$0.00
0.00%
$0.00
$0.00
$0.00
$0.00
0.00%
0.00%
0.00%
Individual Fund Estimated
Maximum Extension:
$45,350,665.09
Prorated Extension based
on prior year extension:
$41,466,179.99
$8,503,249.70
$6,487,689.20
$0.00
$3,049,764.46
Manual Override:
$40,849,000
$4,000,000
3.00%
$1,263,876,921
-11.12%
$10,470,850
$1,133,766,627
-10.29%
Balloon % input:
0.00%
Levy Amount:
$40,849,000.00
0.75%
$6,536,347.00
0.00%
$4,000,000.00
$5,668,833.14
$324,588.48
0.75%
$327,023.00
$0.00
$1,169,210.79
0.75%
$1,177,980.00
0.75%
$1,177,980.00
$0.00
$1,169,210.79
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Truth in
Taxation
Capped Extension/Levy
$51,622,337.74
$59,522,747.93
$53,666,643.71
$44,849,000.00
Capped Levy
Levy in excess of estimated extension:
SEDOL IMRF
$0.00
SEDOL IMRF
Bond and Interest:
$9,565,586.78
Bond and Interest:
Total Extension/Levy
$61,187,924.52
$54,068,330.00
4.74%
$401,686.29
$0.00
$8,016,916.00
Total Levy
$8,016,916.00
-16.19%
$62,085,246.00
1.47%
NO
ILLINOIS STATE BOARD OF EDUCATION
x
Original:
Amended:
School Business and Support Services Division
217/785-8779
CERTIFICATE OF TAX LEVY
A copy of this Certificate of Tax Levy shall be filed with the County Clerk of each county in which the school district is located
on or before the last Tuesday of December.
District Name
District Number
Consolidated School District 158
County
158
McHenry, Kane
Amount of Levy
Educational
$
Operations & Maintenance
$
Transportation
$
Working Cash
$
Municipal Retirement
$
Social Security
$
40,849,000
6,536,347
4,000,000
327,023
1,177,980
1,177,980
Fire Prevention & Safety *
$
Tort Immunity
$
Special Education
$
Leasing
$
0
0
0
0
0
0
54,068,330
$
Other
$
Total Levy
$
* Includes Fire Prevention, Safety, Energy Conservation, Disabled Accessibility, School Security,
See explanation on reverse side.
Note:
and Specified Repair Purposes.
Any district proposing to adopt a levy must comply with
the provisions set forth in the Truth in Taxation Law.
We hereby certify that we require:
40,849,000
the sum of
6,536,347
the sum of
4,000,000
the sum of
327,023
the sum of
1,177,980
the sum of
1,177,980
the sum of
0
the sum of
dollars to be levied as a special tax for educational purposes; and
dollars to be levied as a special tax for operations and maintenance purposes; and
dollars to be levied as a special tax for transportation purposes; and
dollars to be levied as a special tax for a working cash fund; and
dollars to be levied as a special tax for municipal retirement purposes; and
dollars to be levied as a special tax for social security purposes; and
dollars to be levied as a special tax for fire prevention, safety, energy conservation,
disabled accessibility, school security and specified repair purposes; and
0 dollars to be levied as a special tax for tort immunity purposes; and
the sum of
0 dollars to be levied as a special tax for special education purposes; and
the sum of
0 dollars to be levied as a special tax for leasing of educational facilities
the sum of
or computer technology or both, and temporary relocation expense purposes; and
; and
0 dollars to be levied as a special tax for
the sum of
the sum of
0 dollars to be levied as a special tax for
on the taxable property of our school district for the year
2012
Signed this
day of
2012
.
(President)
(Clerk or Secretary of the School Board of Said School District)
When any school is authorized to issue bonds, the school board shall file a certified copy of the resolution in the office of the county clerk of each county in which the district is
situated to provide for the issuance of the bonds and to levy a tax to pay for them. The county clerk shall extend the tax for bonds and interest as set forth in the certified copy
of the resolution, each year during the life of the bond issue. Therefore to avoid a possible duplication of tax levies, the school board should not include a levy for bonds and
interest in the district's annual tax levy.
7
Number of bond issues of said school district that have not been paid in full
.
(Detach and Return to School District)
This is to certify that the Certificate of Tax Levy for School District No.
158
,
McHenry, Kane
Illinois, on the equalized assesed value of all taxable property of said school district for the year
was filed in the office of the County Clerk of this County on
,
County,
2012
2012
.
In addition to an extension of taxes authorized by levies made by the Board of Education (Directors), an additional extension(s)
will be made, as authorized by resolution(s) on file in this office, to provide funds to retire bonds and pay interest thereon.
The total levy, as provided in the original resolution(s), for said purposes for the year
2012
, is
(Signature of County Clerk)
(Date)
copy of ISBE Form 50-02 (08/2009) ctl2009.xls
(County)
$
.
Consolidated School District 158
650 Academic Drive
Algonquin, Illinois 60102
(847) 659-6158 • www.district158.org
CERTIFICATION OF TAX LEVY
President, Board of Education
I, the undersigned, duly elected, qualified and acting ________________________
of Consolidated School District 158, McHenry & Kane Counties, Illinois, does
hereby certify that the attached Tax Levy filed with the McHenry & Kane County
Clerks on December 20, 2012 is a true and correct copy of the Tax Levy of said
District.
SEAL
Date: ___________________________________________
________________________________________________
Signature (President, Board of Education, Consolidated School District 158)
Consolidated School District 158
650 Academic Drive
Algonquin, Illinois 60102
(847) 659-6158 • www.district158.org
TRUTH IN TAXATION CERTIFICATE
I, ___Donald Drzal_________the undersigned, hereby certify that I am the chief
Consolidated School District 158
presiding officer of ____________________________________and
as such
presiding officer I hereby certify that the levy ordinance, a copy of which is
appended hereto, was adopted pursuant to, and in all respects in compliance with,
the provisions of Section 4 through 7 of the “Truth in Taxation Act”.
The notice and hearing requirements of Section 7 of the Act are:
(applicable or inapplicable)
CIRCLE ONE
The notice requirement of Section 7 is:
(applicable or inapplicable)
CIRCLE ONE
SEAL
Date: ____________________________________________________________________________________
__________________________________________________________
Signature (President, Board of Education, Consolidated School District 158)
Consolidated School District #158
Property Tax Levy
2012 Extension
% Chg in EAV
EAV
New Growth
1,434,694,262
29,569,739
2009
Actual Extension
Fund
Rate
Education
Bond & Interest
Operations & Maintenance
IMRF
Transportation
Working Cash
Life Safety
Special Education
Tort
Social Security
Operating Funds Capped
Total
2.627424
0.731320
0.410225
0.071198
0.192840
0.020524
0.000000
0.000000
0.000000
0.071198
3.393410
4.124730
Operating Funds Capped Rate
3.393410
Extension
37,695,504
10,492,212
5,885,472
1,021,477
2,766,671
294,457
0
0
0
1,021,477
48,685,059
59,177,271
1,263,876,921
7,781,895
1,263,367,866
11,706,675
2010
Actual Extension
Rate
3.105723
0.822398
0.485913
0.087571
0.228420
0.024311
0.000000
0.000000
0.000000
0.087571
4.019509
4.841907
1,133,766,627
10,470,850
2011
Actual Extension
Extension
39,236,709
10,389,906
6,138,869
1,106,345
2,885,790
307,133
0
0
0
1,106,345
50,781,191
61,171,097
4.019509
Rate
3.155894
0.756845
0.493763
0.088986
0.232110
0.024704
0.000000
0.000000
0.000000
0.088986
4.084443
4.841288
Extension
39,886,622
9,565,586
6,240,555
1,124,672
2,933,591
312,224
0
0
0
1,124,673
51,622,337
61,187,923
4.084443
-10.295%
2012 Proposed Extension
-10.3% EAV Growth
Max Rate
4.000000
0.750000
0.050000
0.100000
0.800000
5.700000
Projected Limiting Rate
Over/(Under)
Rate
3.576179
0.707105
0.572233
0.103128
0.350185
0.028630
0.000000
0.000000
0.000000
0.103128
4.733482
5.440587
Proposed
40,545,523
8,016,916
6,487,787
1,169,229
3,970,283
324,593
0
0
0
1,169,229
53,666,643
61,683,559
495,636
4.733482
0.000000
The District is required to have a Truth in Taxation Hearing when the District estimates the property tax extension will increase by more
than 5% over the preceding calendar year.
This year's extension is estimated to increase .529% over the preceding calendar year which is ALL due to new growth.
12/13/2012
Page 1 of 1
Levy TAX RATE Worksheet 4 Attach D/Extension
EAV By Levy Year
Thousands
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012