Fairview South School District 72 2013 Tax Levy 11/19/13

Tax Levy Calendar June 25 – Final Tax Rate Report Available from County Clerk June 26 – Nov. 11 – Preparation of 2013 Tax Levy Nov. 12 – Finance Committee Meeting Nov. 19 – Levy Presentation to Board Dec. 17 – Public Hearing to adopt levy Dec. 20 – 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 1.7% (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 33% in 4 years Neighboring district are estimating anywhere from a 3-8% drop Effect of the multiplier Triennial reassessment Estimating about 5.3-5.9% drop New property has never been above .77% of EAV for D.72 since 2006 Average new property over last 5 years ($1.043 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 2012 tax year = $9,024,288 2013 Proj. EAV = $414,453,042 New Property (proj.) = $4,000,000 CPI as of December 31, 2010 = 1.7% Step 1 – Numerator of Limiting Rate = 2012 Ext. * (1+CPI) = $9,177,701 Step 2 – Denominator of Limiting Rate = 2012 EAV-New Property = $404,453,042 Step 3 – Limiting Rate = 2.236 Step 4 – Extended Taxes = 2013 EAV/100*Limiting Rate Step 5 – Add’l from New Property = $88,944

2013 Total Levy/Extension Year 2012 Ext. 2013 Levy 2013 Proj. Ext New Property $782,133 $4,000,000 $400,000 EAV $436,652,172 $414,453,042 $410,853,042 % Change -7.32% -5.31% -5.91% TOT. Capped Ext. $9,024,288 $9,473,273 $9,187,147 3.21% 4.98% 1.80%

2013 Proposed Levy

2013 Levy Highlights The 4.98% increase in the 2013 levy over the 2012 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 Previous year’s defeasance prevents an even larger tax rate increase