Board Reviews 2017 Tentative Tax Levy

Members of the Glenview District 34 Board of Education reviewed on Monday, October 16 the district’s proposed tax levy. The 2017 estimated levy will be adopted in December following a public hearing process. However, the actual tax extension– meaning how much the district will ultimately collect on property tax bills – will not be determined by the Cook County Clerk’s Office for several months following the hearing. 

The Cook County Clerk’s Office determines the levy amount based on the prior year extension for existing property and new property or improvements to property that have come onto the tax rolls in Glenview. Because the assessed value for new property and existing property is not known at the time the district must adopt its levy, it is common practice to levy an amount in excess of what the district actually anticipates to ensure the value of all new property is captured. 

If the district fails to request a levy sufficient to capture new growth, revenue generated by that new property would be permanently lost. 

With that said, there are limits as to how much the district can increase its tax extension. The Property Tax Extension Limitation Law (PTELL), otherwise known as the tax cap, limits the growth in the tax extension to 5 percent or CPI, whichever is lower. Last calendar year, CPI was 2.1 percent. 

Given that, the district is seeking a 3.5 percent increase over the 2016 tax extension. The estimated levy would result in the district requesting $50,065,190 in revenue for the capped funds. However, the district is anticipating the actual levy extension will be closer to 2.62 percent above the 2016 tax extension. 

As stated previously, the assessed value for new and existing property is not known. Therefore, in order to ensure the district’s levy request sufficiently captures new growth, a levy amount in excess of what the district actually anticipates is typically recommended. Which, in this case, is 3.5 percent. 

The estimated increase to a taxpayer is about $41 for a $300,000 home. 

“Setting the levy amount above the level anticipated is part of the approach to being fiscally responsible. Should the district under levy, significant property tax revenue would be lost in perpetuity, resulting in years of budgeting difficulties because revenues needed to meet increasing operating costs would not be captured,” said Assistant Superintendent for Business Services Eric Miller.

Even though the Board is not required to host a Truth in Taxation hearing because the levy amount requested is less than 5 percent, it has chosen to do so as a means for further government transparency and community understanding. The hearing will be held before the regularly scheduled Board of Education meeting in December at the Administration Building.