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

2. 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)

3. 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

4. EAV/New Property Trends

5. 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 % drop
New property has never been above .77% of EAV for D.72 since 2006
Average new property over last 5 years ($ million)
Choosing highest possible to capture revenue ($4 million)

6. 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

7. 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

8. 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%

9. 2013 Proposed Levy

10. 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