Low Inflation to Rescue Property Taxpayers in 2016

Thanks to The First Electric Newspaper for reminding me that it is that time of year when financial officials at tax districts find out how much more tax money they will be able to get in 2016.

They already know the Property Tax Cap has limited them to an increase of 1.5% for their 2015 tax take.

Even so, many asked for many multiples of that figure to make certain they did not lose one dime the law allows them to collect.

PTEL 2015 for 2016

The maximum that state law allows tax districts to extract from current property owners, in the aggregate.

The 2016 inflationary increase will be 8/10 of one percent.

Only in 2008 was inflation lower–0.1%.

There will be wailing of gnashing of teeth of tax district administrative officials and board members…especially, I image of those who have signed multi-year teacher contracts assuming much higher rates of inflation.


Low Inflation to Rescue Property Taxpayers in 2016 — 4 Comments

  1. Keep your eye out for non-referendum aka Limited aka working cash aka life safety bonds that can be issued without voter referendum approval.

    When EAV was booming most of the taxing districts spent all the surplus instead of saving some for a rainy day.

    Now with unfunded pension liabilities, unfunded healthcare liabilities, bond debt service, TIF diversion of taxpayer revenue from the taxing districts to the municipal TIF district for 23 years, Federal stimulus drying up, state reductions to local government, every year it gets more difficult.

    The school districts in particular like to cut programming, hit them taxpayers where it hurts.

    School district teacher collective bargaining agreements generally exceed inflation.

    The monopoly teacher unions in the monopoly public school districts have monopoly on the taxpayer money.

    National School Choice Week is January 25 – 31, 2015.


  2. Numbers are worse in Woodstock CUSD 200.

    This is where Lakewood will insert the children of the tif, to be entirely paid for by taxpayers outside Lakewood –taxpayers who receive zero benefit from the tif money.

    tifs benefit from HIGH tax RATES.

    They are rewarded for rising tax rates, as they are paid tax rate multiplied by their incremental EAV each year.

    Woodstock D200 increased extension by 17% in these years….

    Woodstock District 200 taxes extended:

    2007/2008: $49,755,767
    2008/2009: $52,938,640
    2009/2010: $53,532,740
    2010/2011: $54,544,456
    2011/2012: $55,765,915
    2012/2013: $58,177,079

    As property values sharply declined…

    EAV of District by Levy Year:

    2008: $1,128,047,545
    2009: $1,117,370,497
    2010: $$1,066,023,673
    2011: $953,072,406
    2012: $843,158, 926
    (Page 19)

    So tax RATES rose sharply…

    Woodstock D200 Tax Rates:

    2008: 4.6929%
    2009: 4.7909%
    2010: 5.1166%
    2011: 5.8511%
    2012: 6.8998%
    2013: 7.74%
    2014: 8.18%
    (Numbers above show a 65% increase in tax rate from 2008 to 2013)
    (Page 20)

    As District homeowners found themselves encumbered by debt far in excess of statutory caps meant to protect them…

    2012 EAV of the school District, in 2012: $843,158,926

    2012 estimated full value of taxable property: $2,529,476,778

    2014 General Obligation Bonded Debt: $124,700,940 ( principal only, not including accrued unpaid interest debt)

    2014 other direct GO debt: $657,922

    Population estimate: 24770

    Percentage to full value of Taxable Property: 4.96% ( not considering accrued and owed interest)

    Per capita debt: $5061 ( again not considering interest accrued and owed)

    Statutory debt limit ( including existing Woodstock tif property) at 13.8% of 2012 EAV: $117,109,917

    GO Bonded debt: $124,700,940

    GO Other Debt: $657,922


    D200 EAV has dropped sharply since 2012.

    Borrowing ability of D200 is tied to EAV.

    Borrowing ability is currently hampered by pesky 13.8% statutory cap.

    Tif will sharply escalate EAV for District– but falsely, since no portion of elevated EAV may be taxed by District.

    However, it can be borrowed against.)

    (D200 taxpayers currently owe 4.96% of 2012 assessed total property value ($5061 per capita) on behalf of D200 debt. …but that’s just principal.

    When you include total debt service, that is principal plus INTEREST,…do the math on figures cited below…
    (Page 18)

    Direct GO Bonded Debt (Principal Only): total $124,700,940
    (Page 15)

    Direct GO Bonded Debt (Principal and Interest): total $225,955,186

    SOURCES: Official Statement of 2014 General Obligation Bonds issued by D200. The Official Statement in turn cites sources such as McHenry County Clerk, Treasurer, or the School District itself. Page numbers below refer to pages within the Official Statement.

  3. Rauner and the citizens of the state need to push hard for ‘Right to work’ legislation and put an end to ‘collective’ bargaining by public sector unions.

    Find out who is running for local elective office and question their stand on taxation.

    If you support their position, get to work for them.

    If you do not, work to educate your fellow voters as to why you do not support them.

    We NEED educated voters to turn out in these local elections which have total control over your property tax!!

  4. Please re-write the Headline!

    There will be no “Rescue” for McHenry County Taxpayers! Property tax rates in Seneca Township, Woodstocck CUSD 200 have risen from :

    3.285% in 2013
    3.68% in 2014
    ? in 2015 (due to District 200 raising their tax RATE at least 5.6% year on year, it is expected to exceed 4%.

    That is, 4% of total home value.

    That is, enough to pay mortgage interest on a second home.

    That is, compared to a National Average Property Tax Rate (according to Zillow.com) OF 1.4%.

    That is, 285% of National Average.

Leave a Reply

Your email address will not be published. Required fields are marked *