DANVILLE — Members of the Danville School District 118 board will consider a 2013 tax levy proposal Wednesday in which the district would collect no new dollars.
Of the four scenarios presented to the district’s finance committee earlier this week, Option 2 is the one that will be recommended to the full school board on Wednesday, Superintendent Mark Denman said.
Option 2 proposes the district collect no new tax dollars beyond the amount it collected this year. The 2013 tax rate, payable in 2014, would be set at $5.31 per $100 equalized assessed valuation (EAV), which would be an increase of 0.04 percent in tax revenue compared with the current year’s tax rate of $5.06 per $100 EAV. Even if the district levies for a 0 percent increase or decrease, it still will collect 3.6 percent less funds than this year because of a projected 3.6 percent decrease in property values.
Denman said if the board members agree with this tax levy proposal, the district would have to adjust its non-restricted funds in its budget to cover expenditures since no new additional money would be coming into the district’s coffers. The district would use its current fund balances to cover the difference until the fund balances are depleted.
Under this scenario, the amount of reserve funds that would be left by June 2014 is as follows: zero left in the Illinois Municipal Retirement Fund; the Social Security Fund would be reduced by $576,000, leaving a fund balance of $976,184, however, that ending fund balance would not be enough to cover expenditures during the 2014-15 school year and would require the district to borrow from the Education Fund; and Tort would be reduced by $441,000, leaving a fund balance of $711,583. Similarly, the ending fund balance in Tort would not be enough to cover expenditures during the 2014-15 school year and would require the district to borrow from the Education Fund.