CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the estimated 2017 property tax levies for Special Service Area (SSA) #21, SSA #23, SSA #25, and SSA #26, and direct staff to publish notice for a Truth-in-Taxation hearing on December 19, 2017.
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DEPARTMENT: Finance Department
SUBMITTED BY: Erik Hallgren, Financial Services Supervisor
BOARD/COMMISSION REVIEW:
None
BACKGROUND:
If an estimated special service area (SSA) tax levy is more than 105% of the amount needed for that special service area for the preceding year (in any year other than the initial year of the SSA) state statute requires notice, compliant with the Open Meetings Act, be given and a hearing held on reasons for the increase. 35 ILCS 200/27-75.
Since the City will be conducting a Truth-in-Taxation hearing for the aggregate City tax levy, it is recommended, and is past practice, for the City to provide the same Truth-in-Taxation notice for its SSAs, which notice meets and exceeds the notice requirements of the Open Meetings Act.
This agenda item includes the estimated levy for each of the City’s four (4) SSAs. Staff will publish a Truth-in-Taxation notice for the SSA levies in the same manner identified in the agenda item summary for the aggregate City tax levy. On December 19, 2017, the City Council will conduct Truth-in-Taxation hearings for each SSA and adopt levies for each SSA.
DISCUSSION:
The City has four (4) SSA’s and the Finance Department has estimated the 2017 property tax levy needed to support the proposed CY17 Annual Budget for each SSA listed below.
|
Purpose |
2016 Extension |
2017 Levy |
Projected Change |
|
SSA #21 (Van Buren Deck) |
202,057 |
200,000 |
-1.02% |
|
SSA #23 (Main Street Promenade) |
76,761 |
98,939 |
28.89% |
|
SSA #25 (Lacrosse Lane) |
68,007 |
68,000 |
-0.01% |
|
SSA #26 (Downtown Maintenance & Marketing) |
942,931 |
1,013,351 |
7.47% |
Two SSA’s are estimated for a levy of more than 105%.
• SSA #26 (Downtown Maintenance and Marketing) has estimated levy of 107.5% of the 2016 extension.
• SSA #23 (Main Street Promenade) has an estimated levy of 128.9% of the 2016 extension.
SSA #21 Van Buren Deck
The 2017 levy recommendation for SSA #21 (Van Buren Deck) is $200,000. The amount is consistent with last year’s levy. The SSA tax receipts are used in conjunction with the accumulated balance and investment income within the SSA #21 fund to repay the debt service related to the Van Buren Deck. The final payment of debt will be December 1, 2021.
SSA #23 - Main Street Promenade
The 2017 levy recommendation is $98,939. The request is a 28.89% increase from last year’s extension. This levy is utilized to provide a financing mechanism for debt service on the Naper Main parking facility.
SSA #25 - LaCrosse Lane
The 2017 levy recommendation is $68,000. This amount is consistent with last year’s levy. The total will be used to fund debt service costs. The SSA was created in 2012 to finance the traffic signal at LaCrosse Lane for a 15-year period.
SSA #26 - Downtown Maintenance and Marketing
SSA #26 was established in 2015 to replace the prior SSA #24 for Downtown Maintenance and Marketing. The 2017 levy recommendation is $1,013,351, an increase of 7.47% from the 2016 property tax extension.
SSA #26 provides special municipal services to the designated area including: parking lot operations and maintenance; maintenance of the public parking garages; custodial services; sidewalk and parking lot snow removal; maintenance of landscaping; streetscape and street lighting; holiday lighting on parkway trees and buildings; sidewalk maintenance, including brick paver repair; special directional signage; and capital improvements. Property owners cover one-third and the City covers two-thirds of the maintenance expenses. Additionally, the SSA provides funds for marketing, which are 100% paid by the property owners. SSA #26 has a maximum tax rate of 2.5% per annum of Equalized Assessed Valuation (EAV) beginning in 2016 and will expire in 2020.
FISCAL IMPACT:
The recommended Special Service Area (SSA) tax levies of: $200,000 for SSA #21; $98,939 for SSA #23; $68,000 for SSA #25; and $1,013,351 for SSA #26, will be used to support the applicable debt fund service and provide special municipal services.