Bloomington Public Schools

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Bloomington Public Schools

• 2006 Levy
• 2008 Budget
• November, 2006

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Agenda

• Calendar
• Why the Levy is Important
• Levy Guidelines
• Data and Assumptions

3
Calendar

• November 8 Tax Levy Report
• December 1 Publish Hearing Notice
• December 13 Board Hearing Levy Resolution
• December 26 File Levy
• March Verify Levy Extension with County
• May/June County Extends Collections Begin

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Why the Levy is Important
Property tax is the largest revenue source
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Why the Levy is Important
Property Tax is a Large and Growing Percent of
Education Fund Revenue
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Why the Levy is Important
Property tax arrives early and earns interest
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Levy Guidelines

• The levy is the dollar amount the Board needs
  next year (2008) from the property tax.
• It is the maximum amount that can be received
  from the Districts largest and most stable
  revenue source.

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Levy Guidelines

• Difficult to estimate and discuss.
• The Board determines this maximum amount 8 months
  in advance by projecting expenditures and
  revenues for two fiscal years (current 2007 and
  next 2008).
• The levy itself is based on estimates of EAV.
• Receipts are affected by extension (tax rates)
  and collection rates.

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Levy Guidelines

• Not only are future estimates necessary but math
  is involved.
• The County calculates the final tax rate and the
  extension based on the actual EAV, the levy set
  by the School Board, and the statutory maximum
  rates.

25,000,000 Levy 778,548,179
EAV
3.21
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Levy Guidelines
25,000,000 Levy 778,548,179
EAV
3.21
Extension is limited by 3.12 maximum rate, thus
reducing 25.0 M levy to 24.3 M extension.
24,290,702 Extension
778,548,179 EAV
3.12
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Levy Guidelines

• The following funds have statutory maximum rates
  (adjustment possible)
• Education 3.12
• Operations Maintenance 0.50
• Special Education 0.04
• Life Health Safety 0.05
• Transportation 0.20
• Working Cash 0.05
• Lease (Technology Facilities) 0.05

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Levy Guidelines

• The following funds have no statutory maximum
  rates (no adjustment)
• IMRF
• Tort
• Social Security Medicare
• Bonds Interest

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Levy Guidelines

• A public tax levy hearing must be held if the
  levy is 105 of the prior years extension.

Current Year Operating Levy Prior Years
Operating Extension
gt 105
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Data and Assumptions
Assumes 6 Growth
Assumes 3 Growth
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Data and Assumptions
Assumes 6 Growth
Assumes 3 Growth
Assumes 6 Growth
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Data and AssumptionsEAV by TypeAssumes 3.1
Growth
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Data and AssumptionsEAV by Type / Change
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Data and Assumptions
Assumes 3 Growth
Assumes 6 Growth
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Levy GuidelinesHow to Estimate the Levy Amount

• Education Fund expenditures are projected at
  44.2 M next year.
• Assuming the property tax remains approximately
  59 of revenues even though its share has been
  growing and future state/federal revenues are
  shrinking.
• Assuming a balanced budget, 60 of 44.2 M equals
  26.5 M.

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How to Estimate the Levy Amount

• Assuming 6 EAV growth, the Levy is the same as
  the extension 26.9 M (26.6 M Collection).
• The overall tax rate decreases from 4.48 in 2007
  to 4.46 in 2008.

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How to Estimate the Levy Amount

• More likely, EAV growth will be closer to the 3
  it grew this year.
• Assuming 3 EAV growth, the Levy raises 26.9 M
  (26.2 M Extension and 25.9 M Collection).
• The overall tax rate remains flat in 2008 at
  4.48.
• Need 26.5 M and receive 26.7 - 25.9 M.

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SUMMARY

• 6.0 EAV growth assumed for Levy but likely
  closer to 3.1.
• Public Hearing required - over 5 growth from
  2005 Extension to 2006 Levy.
• At 6.0, overall tax rate is reduced but at 3.1,
  overall tax rate remains flat.
• Need 26.5 M and receive 26.7 - 25.9 M.
• Resolution to Estimate Necessary Property Tax
  Revenues for 2008, Establish Date for Public
  Hearing, and Approve Notice of Public Hearing.