District finance staff outline 2025 levy estimate, FY25 surplus and summer 2026 capital priorities

District finance staff gave a detailed explanation of the property-tax cycle and presented numbers the district will use to estimate its 2025 levy.

The staff presentation reviewed funding sources (local property tax is the largest single source for District 128), the assessment process that produces equalized assessed value (EAV), and the levy process that converts EAV into a revenue extension. Staff explained the PTELL limit (the state's Property Tax Extension Limitation Law) and demonstrated how the levy increase is capped at either CPI or 5%, whichever is lower.

For the 2025 levy calculation staff reported CPI (the relevant December-to-December change) of 2.9% and provided county-based EAV estimates that show existing assessed values rising roughly 6.5% and new taxable property on the rolls of about $28.9 million. Using those inputs, staff recommended filing a capped-levy request that preserves a modest cushion (roughly $300,000 in their estimate) so the district is not at risk if county EAV estimates change before the county finalizes figures next spring. The presentation noted truth-in-taxation rules: if the board files an estimate more than 5% above the previous year's extension, a public hearing is required.

Finance staff also reported that FY25 revenues came in at 101% of budget (largely attributable to higher interest income) and expenditures at about 99.9%, producing a $2.3 million operating surplus versus a budgeted surplus of $870,000. Staff said the additional fund balance was available to support one-time capital projects such as the ongoing cafeteria renovation.

On capital needs, staff shared a draft summer 2026 capital-projects list totaling about $8 million; staff said they expect roughly $5 million to be the most realistic near-term affordability and will refine the list as cost estimates and bids are obtained. Projects on the draft list included pavement and roofing work, site and athletic improvements, and building-system replacements; staff emphasized this list is for asset preservation rather than large new construction.

Board members asked for continued emphasis on operational efficiency to limit long-term structural deficits. Staff reminded the board the levy must be adopted and filed with the county clerk by the last Tuesday in December and described next steps (final numbers in November, adoption Nov. 17 or in December if needed).

No levy was formally adopted at the committee meeting; staff presented the estimate and will return with final documents for board action.