School Town of MunsterLake County, Indiana

Estimated Impact of the Proposed
School Construction and Operating Referenda

(comparison between CY 2017 and 2019)9
Options to find your Gross Assessed Value:
1: Visit the Lake County Assessor's website and look on your Property Record Card.
2: Refer to your Annual Tax Statement from the County Treasurer, TABLE 1, Line 1a.

Illustrative Change in Circuit Breaker Exempt Tax Liability
From the Proposed School Construction and Operating Referenda

Estimated net increase in circuit breaker exempt rate of $0.0792
between budget year 2017 and budget year 20194

Description Referendum Rate Net Rate Impact
Authorized Debt Service Tax Rate for Construction
Projects (Tax Rate to be seen on Referendum ballot):5
Portion of Estimated Exempt Rate for Construction Project not used in 2019 (Based upon Expected Repayment Term):6 ( $0.4118 )
Estimated Debt Service Tax Rate for Construction Projects in 2019:6 $0.0191
Proposed Operating Referendum Tax Rate
(Tax Rate to be seen on Referendum ballot):
Existing Operating Referendum Tax Rate: ( $0.1990 )
Operating Referendum Tax Rate Net Impact:6 $0.2206
Estimated change in tax rate for other circuit breaker exempt funds:7 ( $0.1605 )
Illustrative Net Change in
2019 Circuit Breaker Exempt Tax Rate:


  1. Real property assessments are adjusted annually due to changes in market conditions. The referenda liability will change in relation to changes in parcel gross assessed value.
  2. Homestead parcels are assumed to have homestead, supplemental homestead and mortgage deductions.
  3. For simplicity, the local property tax replacement credit, which changes annually, is omitted from this calculation.
  4. The tax liability is shown for 2019, representing the tax year with the highest anticipated total circuit breaker exempt tax rate.
  5. The authorized construction referendum rate of $0.4309 is based upon an assumed ten year repayment schedule, an assumption requrired by State law. However, the School Town of Munster plans to use a 20 year repayment schedule to reduce the assumed annual tax rate. The estimated 2019 tax rate is $0.0191, for initial interest only payments. Full repayments are expected to begin in 2021, increasing the projected to tax rate to $0.2484. This increase in the capital project referendum rate will be offset by the expiration of other circuit breaker exempt debt allowed under per Article 10 of the Indiana Constitution.
  6. The proposed operating referendum rate tax of $0.4196 would replace the existing operating referendum rate of $0.1990 resulting in an estimated annual net tax rate impact of $0.2206 in 2019.
  7. Decrease in tax rates due to the defeasement of existing debt service and assumed level of debt service funds not operating at full allowable operating balances to minimize impact to taxpayers.
  8. The operating referendum is approved for seven years.
  9. This calculation estimates the change in circuit breaker exempt tax liability between 2017 and 2019.