Determination of Need:
Since
the District’s levy is limited by PTELL to the rate of inflation or 5 percent,
whichever is less and any new growth construction in the first year, the District
will be recommending a levy increase of 4.99%. Because the Equalized Assessed
Valuation (EAV) and new growth construction numbers are crucial in determining
levy amounts and are only estimates, and final numbers will not be received
until after December, the strategy will be to request the 4.99%, allowing
the District to maximize available dollars without filing a Truth-in-Taxation
Notice. Any levy request beyond 5% requires a notice and public hearing.
Based
on the $383 million EAV and $6.2 million new growth estimates received by
the Assessor’s Office, the District will recommend the 4.99% increase (see
attachment No. 1). However, due to PTELL the District is expected to be cut
back to 3.26% with a tax rate of $2.60 per $100 equalized assessed valuation
(see attachment No. 2). The committee discussed the closing out TIF II Auto
Row (Tax Increment Financing) and the reassessment of property taxes in Tazewell
County. The City of Pekin is holding a public hearing on December 9th
at 5:30 for the closure of TIF II and redistributing funds back to the taxing
bodies, including District 108. In October 2001, the District was told it
could potentially receive approximately $39,036. It is uncertain at this
time how the reassessment of Tazewell County property taxes will impact the
levy, however, a scenario was developed to determine how much new growth would
be needed to increase the levy beyond 4.99% (see attachment No.3). In 2001,
the District had $6.2 million in new growth construction. In order for this
year’s levy to exceed 4.99%, new growth construction would need to increase
beyond $12.4 million. This is very unlikely to occur from the proceeds of
the closing of TIF II and the property tax reassessments.
Based on the 4.99% scenario, the District’s tax rate is projected to continue
to decline from $2.74 to $2.60, a $0.14 reduction. This is primarily due
to the reduction of the CPI and the District’s bond and interest obligation
The progress made by the Finance Committee and the proposed levy extension increase
will be reported to the Board at the November 18th meeting. The
recommendation to the Board will be a 4.99% levy increase with the possibility
that if new information is received regarding the EAV and new growth construction
estimates, TIF II, or property tax reassessments, we may increase the levy
beyond 5%, which would require a Truth-in-Taxation notice and hearing.
The Board will be asked to take action on the levy at the December 16th
meeting.
Matt Wilkinson
Business Manager
