The Examiner U-46 News Feed
U-46 Board receives proposed tax levy data
By Seth Hancock
The Board of Education in School District U-46 was presented with the proposed 2016 tax levy at its meeting on Monday, Nov. 7.
The total proposed levy is a 1.9 percent increase, but the district expects an increase of 1.39 percent.
“Since we have to use estimates and we do not know the final EAV (Equalized Assessed Value) or new construction, we defensive levy,” said Dale Burnidge, director of financial operations.
The administration will be asked to vote on the proposed levy and determination of tax levy at its meeting on Monday, Nov. 21 and the board will then be presented a tax levy resolution, certificate of tax levy and a resolution on the intent to abate which will be voted on in December.
In January, an abatement resolution will be brought to the board which will be voted on in February.
In the five-year history given to the board property tax revenue has increased $18.7 million to $262 million from 2011 to 2015, and the 1.9 percent proposed increase would make it $267 million.
On assumptions Burnidge said the district expects about a 6 percent increase in EAV and $30 million in new construction. Kane County has already given a 9 percent increase in EAV while DuPage and Cook counties, which specific numbers for 2016 are not available, saw a three percent increase and decrease respectively last year while new construction was $19 million in 2015.
“Developer donation dollars and construction numbers” determine the new construction estimates according to Burnidge.
The increase is limited by law to the Consumer Price Index (CPI) which is at 0.7 percent and 0.69 percent is added for new construction for the expected 1.39 percent increase which would bring the total revenue to $265.6 million.
CPI has had a 1.5 percent average over the last five years, 1 percent the last three, and the proposed levy does not include levy for the bond and interest payments.
“New construction is excluded from the extension limitation as is the bond and interest payments” which “are determined at the time that is issued from the debt repayment schedule,” Burnidge said.
Burnidge said when EAV declines, individual tax rates increase and “that’s the situation we have been in from 2009 to 2014.” He said last year there was a slight rise in EAV “so tax rates should be coming down.”
Board member Sue Kerr asked about the abatement which Burnidge said “the abatement will come out of the bond and interest levy” which is expected to be $42.2 million.
Last year was the first time the district used an abatement which is meant to effectively keep the levy flat, but the increases sought now will hit future property taxpayers.