Oak Park School District 97 Final 2017 Tax Levy Presented December 19, 2017

Property Tax Extension Limitation Law (PTELL) The PTELL slows the growth of property tax revenues to taxing districts when property values are increasing faster than the rate of inflation. As a whole, property owners have some protection from tax bills that increase because the market value of their property is rising rapidly. Source: The Property Tax Extension Limitation Law, A Technical Manual

Reasons for the Revised Levy The growth in a taxing district’s aggregate extension base (sum of all extensions for funds subject to the PTELL) is limited to 5 percent or the rate of inflation, whichever is less. The inflationary increase is equal to the percentage change in the Consumer Price Index (CPI), and is called the “limitation”. The December 2016 CPI-U is 2.10% Source: The Property Tax Extension Limitation Law, A Technical Manual

Reasons for the Revised Levy Under the PTELL, taxing districts receive an additional allowance in proportion to the new property in the district, which includes, value of property annexed, new property construction, and the TIF increment in the year that the TIF expires Source: The Property Tax Extension Limitation Law, A Technical Manual

Relationship of the Operations Preliminary to Final Levy

CPI and New Property The December 2016 CPI-U is 2.10% New Property Based on the assessor’s information new growth could be $133,401 (.2%, estimated) TIF Expirations The Downtown TIF carve out (.2%) Other The Harlem/Garfield (.2%)  

Levy Unknowns The levy is an estimate because there are unknown factors that contribute the final extension New Property Because there is uncertainty about the value of the Harlem/Garfield TIF, and the Downtown TIF carve-out, the estimate was increased from the 2.7% to 3.0% to capture all three types of new growth. Multiplier The is unknown at the time the levy is filed.

Debt (DSEB) The non-capped, not subject to PTELL funds (debt) is outside of tax caps The Board approved $16M in DSEB last October In December 2016, $6M in DSEB was issued This was part of the capital budget plan approved before the referendum. The plan was to sell $10M of DSEB (non-referendum) bonds in December 2017 to pay for the Holmes addition and life safety work scheduled for summer 2018 

Debt (DSEB) District 97 abated $2.6M in July to offset debt service payments in the amount of the 2016 levy overage. Recently, D97's FORC (Finance Oversight and Review Committee) recommended and administration supports that District 97 delay the December bond sale and use the "overage" from the 2017 operating levy to pay capital expenses.  It is estimated that this delay will further reduce our 2017 bond levy by over $2M and result in savings about $150,000 of interest costs. 

Final Levy with Abatement

Important Facts Regardless of the levy request, the school district will not receive more than it is entitled to receive under the tax law. If the Board wants to adjust the levy downward, it may elect to do an amended levy.

QUESTIONS