227 Property Tax Analysis Property Tax Overview Homes

227 Property Tax Analysis Property Tax Overview

Homes with 2018 Tax Delinquencies in Rich Township • 2743 Homes in Rich Township have 2018 Property Tax Delinquencies as of October 4, 2019 • Does not include portions of Country Club Hills, Tinley Park, University Park, Chicago Heights Village Homes Delinquent % Delinquent Park Forest 6479 1146 17. 70% Matteson 7859 823 10. 50% Richton Park 4557 543 11. 90% Olympia Fields 2352 231 9. 80% Source: https: //southcooknews. com/stories/514092462 -analysis-nearly-1 -in-10 cook-county-property-owners-didn-t-pay-2018 -real-estate-taxes 2

Rich 227 Historical Tax Collection 2005 -2013 • 25 Million in Property Taxes Lost - Not collected due to Non Payments, Foreclosures and Tax Appeals Source http: //www. rich 227. org/Downloads/Budget%20 a%20 Glance%20 FY 152. pdf 3

Commercial Property Tax Devastation • Market. Place Matteson Analysis (Old Cub Foods - Burlington) • 2017 Assessment is astronomical • 2017 Assessment increased 1, 120, 904 • • Land increased 11% Building increased 61% Total assessment increase 39% Missing Vacancy Affidavit on the property 4

Commercial Property Tax Devastation Tax Bill 4/1/2019 • 2, 100, 087. 22 Source https: //www. scribd. com/document/401409884/Market-Place-Matteson-Tax-Bill-2017 5

Homeowner Property Tax Bill 2018 • 11, 287. 33 • Property Value 252, 480. Filed appeal to force valuation based on 11 foreclosure sales that surround house. • What are the new proposed tax rates yearly due to 105 million bond Source https: //www. scribd. com/document/438112143/Burton-Phillips-Tax-Bill 6

Homeowner Property Tax • The PMA securities proposed increase is not a feasible assessment • Where is the excel spreadsheet, algorithm and formulas that derived the PMA tax impact • What is the tax impact on homeowners that don’t receive an exemption 7

Commercial Property Tax • Where is the tax impact on commercial properties • Where is the tax impact on rental properties 8

Effect of Proposed Tax Increases/Rate based on Delinquencies • Historical tax collection and current 2018 Tax delinquencies show a disturbing pattern where homeowners and businesses aren’t paying their property taxes • How will the tax rate be calculated to account for the delinquencies with the introduction of the 105 million bond? 9

The Devastating Impact of TIF’s (Tax Increment Financing) on 227 Revenue 10

Wal Mart Analysis • Richton Park Wal-Mart Property Tax • 2. 4 Million • Olympia Fields Wal-Mart Property Tax • 1. 7 Million • Closed Wal-Mart Property Tax • 1. 6 Million • No 2017 Assessment 11

2016 Matteson Wal-Mart Tax Bill https: //www. scribd. com/document/374481954/Wal. Mart-Matteson-tax-Bill 12

2017 Richton Park Wal-Mart Tax Bill https: //www. scribd. com/document/395789004/Wal. Mart 2017 -Richton-Park-Tax-Bill-2 -4 -million • Wal Mart Richton Park tax bill has a TIF of 2, 424, 466. 84 • Rich 227 school district received 1908. 01 • Has anyone talked to the Village of Richton Park officials on the increases in tax rates • Increase in tax rates will make the tax bill go up • Richton Park will owe Wal-Mart more money 13

2018 Olympia Fields Wal-Mart Tax Bill https: //www. scribd. com/document/414546131/Olympia-Field-Wal. Mart-Tax-Bills-Five-PIN-s • • Wal-Mart Olympia Fields tax bill was refunded to Wal-Mart via a TIF of 993, 000 Has anyone talked to the Village of Olympia Fields officials on the increases in tax rates Increase in tax rates will make the tax bill go up. Olympia Fields will owe Wal-Mart more tax money. Source https: //www. olympia-fields. com/Agenda. Center/View. File/Minutes/_10152019 -215 14

Equalized Assessed Value • PMA Securities Assessment • ( Actual tax rates and payments may vary on EAV growth). This is a dangerous proposition • There is no EAV growth in Rich Township 15

Equalized Assessed Value • 2018 Rich Township EAV • 2018 Unadjusted Valuation 1, 024, 217, 028 • Tax Rate 6. 045 • https: //www. cookcountyclerk. com/sites/default/files/pdfs/2018%20 Agency%20 EAV%20 by%20 Class%20 Report. pdf • 2017 Rich Township EAV • 2017 Unadjusted Valuation 1, 067, 294 • Tax Rate 5. 916 • https: //www. cookcountyclerk. com/sites/default/files/pdfs/2017%20 Agency%20 EAV%20 by%20 Class%20 Report. pdf • Cook County Clerk Tax Rates • 2018 https: //www. cookcountyclerk. com/sites/default/files/pdfs/2018%20 Tax%20 Rate%20 Report_1. pdf • 2017 https: //www. cookcountyclerk. com/sites/default/files/pdfs/2017%20 Tax%20 Rate%20 Report_0. pdf 16

Equalized Assessed Value and Tax Rates Explained in Detail • Arlington School District 25 • https: //www. sd 25. org/cms/lib/IL 01904427/Centricity/Domain/36/Tax%20 Levy%20 Impact%20 on%20 Tax%20 Bills. pdf • The school district does not levy tax based on a rate or an increase in a rate. The district levies taxes based on a dollar amount, and that dollar amount is limited to an increase each year of the Consumer Price Index (CPI) or 5%, whichever)is)less. The Cook County Clerk’s office divides that dollar amount by the total Equalized Assessed Valuation (EAV) of all properties in the school district. School District Tax Extension = Tax Rate Total EAV When the Total EAV in the District increases, the tax rate decreases to ensure the school district only receives the dollars it is entitled to. Conversely, when the Total EAV decreases, the tax rate increases to ensure the school district receives the dollars it is entitled to. 17

227 Yearly Budgeted Expenses 2013 -2020 • 2019 -2020 - 72, 121, 388 • 2018 -2019 - 70, 070, 667 • 2017 -2018 - 69, 259, 805 • 2016 -2017 - 87, 662, 814 ****( Debt Service 22, 514, 083)**** • 2015 -2016 - 72, 107, 610 • 2014 -2015 - 67, 763, 292 • 2013 -2014 - 68, 246, 965 18

227 Yearly Budgeted Expenses 2014 -2020 • Will consolidation to two schools lead to lower budgeted expenses. 19

ENROLLMENT PROJECTIONS SHOW DECLINES WHICH WILL LEAD TO REDUCED STATE AID 3 500 3 000 1 096 949 2 500 2 000 857 1 037 1 500 873 808 830 727 676 914 1 000 500 1 219 1 089 945 2017 -18 2018 -19 2019 -20 810 840 826 808 797 758 617 549 587 606 648 669 656 867 832 863 861 865 854 821 2024 -25 2025 -26 2026 -27 2027 -28 - Focused on Students and Student Success 2020 -21 2021 -22 2022 -23 2023 -24 Central East South Source: May 2018 Kasarda Study

Declining enrollment and effects on Tax Rates • 2022 -2023 there is a huge drop in enrollment of 720 students from current enrollment. • 720 X 18, 000**= 12, 960, 000 • How will the tax rates be affected to pay the 105 million bond. 21

Disturbing Bond Issue Language • WHEREAS, if the Pledged Revenues are insufficient to pay the Bonds, ad valorem property taxes upon all taxable property in the District without limitation as to rate or amount are authorized to be extended to pay the principal of and interest on the Bonds 22

105 Million Bond Issue is covering 20 Years of Repairs • Rich Central Repair Detail • 39, 704, 800 • http: //www. rich 227. org/Downloads/RC%20 Facility%20 Assessment. pdf • Rich South Repair Detail • 31, 749, 400 • http: //www. rich 227. org/Downloads/RS%20 Facility%20 Assessment. pdf • Total 71, 454, 200 • Number is seemingly close to the DSEB number in next slide. 23

105 Million Bond Issue is covering 20 Years of Repairs 24

Pending Legislation is Coming to Reign in property taxes • School Consolidation • Caps on Tax Rates • Chicago Tribune Article • https: //tinyurl. com/slp 3252 25