School Board Approves 10 Percent Tax Levy Request, Preserves Growth Revenue

On December 19 the Jacksonville School District 117 board voted to approve a tax levy filing that requests a 10 percent increase compared with last year. Superintendent Steve Ptacek told the board and the public the request is chiefly protective. Under the Property Tax Extension Limitation Law known as PTELL the district will actually collect from existing property only the lower of the consumer price index or five percent, but the larger levy preserves the district’s right to capture revenue from new construction and other growth in equalized assessed value.

Board members were presented with a scenario in which forgoing the larger levy could force deep cuts to operations. Ptacek warned that without the precautionary measure the district may have to curtail some middle school athletics and extracurricular programs, and that resorting to deficit financing would further strain day to day operations. Those program reductions would directly affect dozens of students who rely on school extracurriculars for enrichment and physical activity.

Alongside the levy filing the district announced plans to float 2.1 million dollars in health life safety bonds. The district plans to repay those bonds from excess sales tax revenue or from reserves if sales tax receipts fall short. Relying on sales tax revenue introduces revenue volatility, but using excess receipts or reserves would avoid increasing the regular operating levy for taxpayers.

For local homeowners and property owners the PTELL constraint means most taxpayers will likely see smaller increases tied to inflation or five percent, not the full 10 percent requested, unless their property is newly constructed or has newly assessable improvements. For developers and owners of new construction the levy preserves the district’s ability to claim growth related revenue that would otherwise be lost.

The levy filing and bond authorization position District 117 to protect program funding while leaving several financial decisions contingent on growth, sales tax performance, and future board actions. The board will finalize levy amounts and bond timing as assessments, sales tax receipts, and reserve analyses evolve in the coming months.