Fairview South School District 72 2012 Tax Levy 11/21/12

Tax Levy Calendar June 26 – Final Tax Rate Report Available from County Clerk June 27 – Nov. 1 – Preparation of 2011 Tax Levy Nov. 14 – Finance Committee Meeting Nov. 20 – Levy Presentation to Board Dec. 18 – Public Hearing to adopt levy Dec. 24 – Levy delivered to county clerk (on or before this date)

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 3% (CPI) levy increase limit on existing property (PTELL) Bond and Interest – based on payment schedules, not under tax cap

EAV/New Property Trends

EAV/New Property Estimates EAV has dropped 24% in 3 years Neighboring district are estimating anywhere from a 3-12% drop Multiplier has an effect Next year is our triennial reassessment Estimating 6% drop New property has never been above .77% of EAV for D.72 since 2006 Average new property over last 5 years ($1.6 million) Choosing highest possible to capture revenue ($4 million)

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

PTELL Calculation Tax Extensions for the 2011 tax year = $8,743,974 2012 Proj. EAV = $439,856,000 New Property (proj.) = $4,000,000 CPI as of December 31, 2010 = 3% Step 1 – Numerator of Limiting Rate = 2010 Ext. * (1+CPI) = $9,006,293 Step 2 – Denominator of Limiting Rate = 2011 EAV-New Property = $435,856,000 Step 3 – Limiting Rate = 2.07 Step 4 – Extended Taxes = 2012 EAV/100*Limiting Rate Step 5 – Add’l from New Property = $82,654

2012 Total Levy/Extension Year 2011 Ext. 2012 Levy 2012 Proj. Ext New Property $1,176,280 $4,000,000 $400,000 EAV $471,144,877 $439,856,000 $436,256,000 % Change -11.52% -6.64% -7.41% TOT. Capped Funds $8,743,974 $9,180,000 $9,014,345 1.84% 4.99% 3.09%

2012 Proposed Levy 2011 Ext. 2012 Prop. Levy 2011 Proj. Ext. Education $ 6,425,002 $ 6,710,000 $ 6,588,917 O&M $ 1,126,507 $ 1,200,000 $ 1,178,346 Transportation $ 219,082 $ 235,000 $ 230,759 Working Cash $ - $ - $ - IMRF $ 116,372 $ 130,000 $ 127,654 SS/Medicare Tort Immunity Special Education $ 521,557 $ 540,000 $ 530,256 Total Capped Fund $ 8,743,974 $ 9,180,000 $ 9,014,345 % Change   4.99% 3.09% Tax Rate 1.8559 2.0634 2.0663 Bond and Interest $ 674,069 $1,402,245   $1,444,312 Total $ 9,418,043  $10,582,245 $10,458,657  Total Tax Rate 2.00 2.37  2.3974 Based on an EAV of: $ 471,144,877 $ 439,856,000 $ 436,256,000

2012 Levy Highlights The 4.99% increase in the 2012 levy over the 2011 extension does not require a Truth in Taxation notice. The smaller increase in the levy percentage increase can be attributed to the little money we get from new property The tax rates will continue to go up as long as the EAV in the district goes down=> out of our control Levy could go down depending on decision regarding debt payment; possible abatement