District 58 treasurer recommends 4.99% levy request, explains PTELL limits and impacts on funds
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Summary
Treasurer Dr. Harris briefed the board on tax-levy mechanics and recommended a 4.99% levy request to hedge against EAV uncertainty; the district—s limiting rate calculation of 1.8743 would yield an estimated capped extension just north of $75 million, and the levy would shift fund balances to address transportation and social-security cash shortfalls.
Treasurer Dr. Harris presented a detailed primer on the tax levy and the district—s recommended approach during the Nov. 10 board meeting. He explained levy terminology (levy vs. extension, EAV, new construction), said the district uses the December CPI (2.9% for 2024) in levy calculations and discussed the Property Tax Extension Limitation Law (PTELL) cap that limited earlier levy increases during high-CPI years.
Dr. Harris calculated a district limiting rate of 1.8743 (approximately $1.87 per $100 of EAV) using an estimated EAV near $4 billion and projected new construction of $25 million; applying that limiting rate produced an expected capped extension just north of $75 million for the 2025 levy. He explained the district commonly "balloons" the levy request by asking for up to 4.99% (below the 5% threshold that would trigger a truth-in-taxation hearing) to protect against underestimating EAV or new construction. "We always balloon our levy, and it's just good practice," Dr. Harris told the board.
Dr. Harris also outlined how the recommended levy request would reallocate amounts across funds: a reduction in the education fund and increases to the transportation and social-security funds to avoid negative cash balances and meet projected obligations. He said the formal levy will be presented for a board vote at the December meeting.
Provenance: topicintro SEG 1800; topfinish SEG 2132.