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

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)

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

Equalized Assessed Valuation

Tax Extension

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)

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 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

2014 Proposed Levy

2014 Levy Highlights The 4.99% increase in the 2014 levy over the 2013 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