As a school district, we are funded by three primary sources of revenue: local funds (district property taxes), state funds (Evidence-based Funding), and Federal funds (IDEA, Title Funds, etc.) Every December, the law requires that we submit the tax levy to the counties in our district.
What’s a tax levy?
The levy is the amount of money the district requests to receive from property taxes for the following year. In December, the Board of Education formally approves the tax levy that will be submitted to all three counties. The county reviews the request from the district, finalizes the Equalized Assessed Value (EAV) for each county, and establishes the final tax rate for the school district. The EAV is the total value of all properties within our district boundaries, and the County Tax Assessor sets that amount. In the fall, the district receives an estimate of the total EAV; however, it is not finalized until after the tax levy is submitted. As a result, the levy is based on estimates, not finalized numbers.
What does the truth-in-taxation notice mean?
As a school district receiving money from taxpayers, we must compare the amount we anticipate receiving in 2025 to that received in 2024. A hearing must be held if the proposed levy anticipates that the district will receive more than 5% more than the previous year.
Is the school really increasing my taxes 22%?
No. This does not mean that your tax bill is increasing by that percentage. The school is actually lowering the tax rate from 4.68 to 4.66. The increase represents the tax dollars the district receives from taxes because of the increase in the EAV (the value of all of the property in the district).
How is the school getting more money if they aren’t raising my taxes?
The second wind farm is now included in the district's property values. The district's EAV is anticipated to be $36,717,958 higher than last year's. The wind farm represents a considerable increase in the district's EAV. This increase in EAV, allows the district to increase tax revenues while lowering the tax rate. The tax levy is a function of two values--the total property with the district boundaries and the tax rate. The district controls the tax rate but not the total value of the property. The wind farm creates a win-win scenario for everyone. The amount of revenue can increase while providing a reduction in property tax rates levied by the district.
What can I expect on my tax bill?
The proposed tax rate for this year is $4.66, the lowest tax rate on record for our district. Just three years ago, the rate was $5.66. Because of the addition of the wind farms to the district, we have increased revenue while continuing to lower the tax rate for the taxpayers. As the solar field will be included in the district’s EAV next year, we are committed to continuing the downward tax trend for our district. If your total tax bill is higher than last year, it could be because of an increase in your property value, an increase in another taxing agency’s rate, or the estimated EAV provided to the district returning lower than predicted. Based on conversations with the tax assessors in all three counties, we do not anticipate the estimates the counties provided to be lower, and past precedence shows that it is generally higher than the initial estimate.
What if I have questions about this?
The Board of Education will hold the Truth in Taxation hearing on December 19th at 7:00 in the Mason City Public Library. Any person desiring to appear at the public hearing and present testimony to the taxing district may contact Dr. Jennifer Durbin, Superintendent of Schools, 208 North West Avenue, Mason City, Illinois, 217-482-5180 or jdurbin@illinicentral.org.