Getting Numbers Ready for a Referendum

Presented by the IASBO

Principles of School Finance Committee

March 1, 2007

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How to Determine Budget Reductions

Meet with Administrative Team Review District’s goals Consider outsourcing:

Custodial/maintenance Security Transportation

Consider postponing non-critical capital projects

Do not fill staff positions left vacant from retirements & resignations

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Other Revenue Options

General state aid – review district’s processes to insure maximum amount is being received

Review all state & federal grant options www.isbe.net - FY 08 ISBE budget for description of

available grants Developer fees If self-funded, increase employee contributions to

health care (e.g., deductions & co-pays). Increase student fees

Most taxpayers don’t have children in your schools & may prefer having parents pay more of the costs first.

Participation fees (e.g., athletics), AP exams, parking

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How Much of a Tax Increase is Needed? Taxpayers want to be assured that the district

has cut as much as possible without hurting programs and have maximized their revenue.

What are the district’s goals? Politics are involved

What do you want to communicate to your community?

Will successful referendum sustain the district through 5 or 10 years of fiscal solvency?

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Tax Increase (cont.)

Prepare financial forecasts for at least 5 years

Consider: Enrollment EAV growth Tax increment financing (TIF) being added

back to the tax rolls as new property Employee retirements may slow down salary

increases as they’re replaced with less expensive staff.

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County Agency Tax Rate Reports

Meet with your county extension office to understand: Financial impact your referendum will have on

your district Rate increase factor Phase-in effects of referendum

There are still going to be unknowns in projecting property tax revenue EAV New property growth

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Cook Co. Agency Tax Rate Schedule Prepared by Dist. 219

A B C D E F G H I J K

A * B A + C P e r E * L / 1 0 0 L o w e r o f G / M * 1 0 0 N m u s t b e = o r = G u n l e s s J / M * 1 0 0S t a t u t e * S e e n o t e D o r F < O & H m u s t t h e r e 's a n I ,

b e l o w . b e = o r < E t h e n = I

T a x P r i o r Y r . M a x i m u m P r e l i m . P T E L L F i n a l F i n a l2 0 0 5 L o s s L o s s R a t e E A V A l l o w a b l e T a x R e d u c e d E x t e n d e d T a x

L e v y L e v y % A m o u n t T o t a l L e v y C e i l i n g L i m i t L e v y R a t e L e v y L e v y R a t eE d u c a t i o n 5 8 , 0 0 0 , 0 0 0 3 % 1 , 7 4 0 , 0 0 0 5 9 , 7 4 0 , 0 0 0 3 . 5 0 0 0 1 3 7 , 5 8 2 , 5 5 9 5 9 , 7 4 0 , 0 0 0 1 . 4 3 2 9 5 0 , 3 5 9 , 5 7 0 5 0 , 3 5 9 , 5 7 0 1 . 2 0 7 9S p e c i a l e d 7 7 5 , 0 0 0 3 % 2 3 , 2 5 0 7 9 8 , 2 5 0 0 . 4 0 0 0 1 5 , 7 2 3 , 7 2 1 7 9 8 , 2 5 0 0 . 0 1 9 1 - 7 9 8 , 2 5 0 0 . 0 1 9 1L e a s i n g 1 , 9 4 0 , 0 0 0 3 % 5 8 , 2 0 0 1 , 9 9 8 , 2 0 0 0 . 1 0 0 0 3 , 9 3 0 , 9 3 0 1 , 9 9 8 , 2 0 0 0 . 0 4 7 9 - 1 , 9 9 8 , 2 0 0 0 . 0 4 7 9T o r t 3 , 5 0 0 , 0 0 0 3 % 1 0 5 , 0 0 0 3 , 6 0 5 , 0 0 0 - N / A 3 , 6 0 5 , 0 0 0 0 . 0 8 6 5 - 3 , 6 0 5 , 0 0 0 0 . 0 8 6 5O & M 1 0 , 2 0 0 , 0 0 0 3 % 3 0 6 , 0 0 0 1 0 , 5 0 6 , 0 0 0 0 . 5 5 0 0 2 1 , 6 2 0 , 1 1 6 1 0 , 5 0 6 , 0 0 0 0 . 2 5 2 0 - 1 0 , 5 0 6 , 0 0 0 0 . 2 5 2 0B & I fu n d 7 , 3 3 5 , 6 3 3 5 % 3 6 6 , 7 8 2 7 , 7 0 2 , 4 1 5 - N / A 7 , 7 0 2 , 4 1 5 0 . 1 8 4 8 - 7 , 7 0 2 , 4 1 5 0 . 1 8 4 8T r a n s p o r t a t i o n 4 , 6 5 6 , 0 0 0 3 % 1 3 9 , 6 8 0 4 , 7 9 5 , 6 8 0 0 . 1 2 0 0 4 , 7 1 7 , 1 1 6 4 , 7 1 7 , 1 1 6 0 . 1 1 3 1 - 4 , 7 1 7 , 1 1 6 0 . 1 1 3 1IM R F - 3 % - - - N / A - 0 . 0 0 0 0 - - 0 . 0 0 0 0F IC A - 3 % - - - N / A - 0 . 0 0 0 0 - - 0 . 0 0 0 0W o r k i n g c a s h 1 , 9 4 0 , 0 0 0 3 % 5 8 , 2 0 0 1 , 9 9 8 , 2 0 0 0 . 0 5 0 0 1 , 9 6 5 , 4 6 5 1 , 9 6 5 , 4 6 5 0 . 0 4 7 1 - 1 , 9 6 5 , 4 6 5 0 . 0 4 7 1L i fe / s a fe t y 1 , 9 4 0 , 0 0 0 3 % 5 8 , 2 0 0 1 , 9 9 8 , 2 0 0 0 . 1 0 0 0 3 , 9 3 0 , 9 3 0 1 , 9 9 8 , 2 0 0 0 . 0 4 7 9 - 1 , 9 9 8 , 2 0 0 0 . 0 4 7 9

9 0 , 2 8 6 , 6 3 3 2 , 8 5 5 , 3 1 2 9 3 , 1 4 1 , 9 4 5 4 . 8 2 0 0 9 3 , 0 3 0 , 6 4 6 2 . 2 3 1 4 5 0 , 3 5 9 , 5 7 0 8 3 , 6 5 0 , 2 1 6 2 . 0 0 6 4

C a p p e d fu n d s N 2 . 0 4 7 C a p p e d f u n d s 1 . 8 2 2N o n - c a p p e d fu n d s 0 . 1 8 4 8 N o n - c a p p e d fu n d s 0 . 1 8 4 8

2 . 2 3 1 2 . 0 0 6

* P e r C o o k C o u n t y : T h e fo l l o w i n g i s a n e x c e p t i o n - I f c u r r e n t y e a r E A V i s l o w e r t h a n t h e p r i o r y e a r E A V , t h e n u s e c u r r e n t E A V w / o n e w p r o p e r t y .

U n k n o w n K n o w n

2 0 0 4 E A V 3 , 8 3 3 , 8 8 6 , 4 2 3 2 0 0 5 e s t . n e w p r o p . 9 7 , 0 4 3 , 8 2 3 U s e d a ve . fo r 2 0 0 2 t o 2 0 0 4 . T h e 9 7 , 0 4 3 , 8 2 3 i s t h e a c t u a l # .2 0 0 4 E A V a d j u s t e d 3 , 9 3 0 , 9 3 0 , 2 4 6 L

Is c u r r e n t y e a r l o w e r t h a n p r i o r y e a r ? I f y e s , s e e e x c e p t i o n n o t e d w i t h * & u s e M . I f n o t , t h e n u s e L .

2 0 0 4 E A V 3 , 8 3 3 , 8 8 6 , 4 2 3 4 . 2 0 % e s t . i n c r e a s e 1 . 0 8 7 4 2 9 2 4 2 8 1 U s e d a ve . i n c r e a s e fo r y e a r s 1 9 9 6 ( 2 . 0 8 % ) , 1 9 9 9 ( 3 . 1 3 % ) & 2 0 0 2 ( 7 . 3 9 % ) T h e 8 % i n c r . i s a c t u a l .2 0 0 5 E A V e s t . 4 , 1 6 9 , 0 8 0 , 2 1 0 M

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Dist. 219 Schedule (cont.)A 1 . 5 2 9 1 2 0 0 5 E d c e i l i n g r a t eB 4 9 , 3 6 5 , 9 2 1 2 0 0 4 E d e x t e n d e d l e vy

3 , 3 1 3 , 1 1 5 , 6 7 4 2 0 0 3 E A V ( ? I f 2 0 0 4 E A V l e s s t h a n 2 0 0 3 E A V , u s e 2 0 0 4 E A V w / o n e w p r o p e r t y )2 1 , 4 2 4 , 8 0 7 2 0 0 4 n e w p r o p e r t y

C 3 , 3 3 4 , 5 4 0 , 4 8 1 D 1 . 4 8 0 4 2 0 0 4 E d t a x r a t e u s i n g c u r r e n t y r . E A V ( B / C * 1 0 0 )E 0 . 0 4 8 7 D i f fe r e n c e ( A - D )

F 1 . 5 6 8 0 2 0 0 2 t o t a l t a x r a t e - d e b t r a t e sG 0 . 0 4 8 7 D i f fe r e n c e fr o m a b o ve ( E )H 1 . 6 1 6 7 T o t a l ( F + G )

I 1 . 6 1 6 7 T o t a l fr o m a b o ve ( H )J 1 . 5 6 8 0 2 0 0 2 t o t a l t a x r a t e - d e b t r a t e s

K 1 . 0 3 1 0 R a t e i n c r e a s e fa c t o r ( I / J )

P e r 1 1 / 1 4 / 0 5 p h o n e c a l l w i t h B i l l V .

2 0 0 4 a g g r e g a t e e x t e n s i o n :7 7 , 1 7 6 , 1 3 3 . 6 9 2 0 0 4 t a x e x t e n s i o n g r a n d t o t a l( 7 , 5 4 8 , 9 2 2 . 3 7 ) 2 0 0 4 n o n c a p fu n d s t a x e x t e n s i o n t o t a l

6 9 , 6 2 7 , 2 1 1 . 3 2 1 . 0 3 1 0 N e w a g g r e g a t e e x t e n s i o n fa c t o r

7 1 , 7 8 7 , 8 9 7 . 4 8 N e w t a x e x t e n s i o n b a s e1 . 0 3 3 C P I fa c t o r o f 3 . 3 %

7 4 , 1 5 6 , 8 9 8

2 0 0 5 E A V m i n u s n e w p r o p e r t y , a n n e x a t i o n s , r e c o ve r e d T IF va l u e p l u s d i s c o n n e c t i o n s :4 , 1 6 9 , 0 8 0 , 2 1 0 2 0 0 5 e s t . E A V

( 9 7 , 0 4 3 , 8 2 3 ) 2 0 0 5 n e w p r o p e r t y , a n n e x . , & r e c o ve r e d T IF va l u e m i n u s d i s c o n n e c t e d p r o p e r t y4 , 0 7 2 , 0 3 6 , 3 8 7

L i m i t i n g r a t e :7 4 , 1 5 6 , 8 9 8 / 2 0 0 4 a g g r e g a t e e x t e n s i o n

4 , 0 7 2 , 0 3 6 , 3 8 7 * 2 0 0 5 E A V m i n u s n e w p r o p e r t y , a n n e x a t i o n s , r e c o ve r e d T IF va l u e p l u s d i s c o n n e c t i o n s1 0 0

O 1 . 8 2 1 L i m i t i n g r a t e f o r t o t a l o f c a p p e d f u n d s ( a l l l e v i e s e x c e p t b u i l d i n g b o n d s & l i m i t e d b o n d s )

F I N A L T A X R A T E F O R C A P P E D F U N D S C A N 'T B E > T H A N T H E L I M I T I N G R A T E .