CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Receive the estimated 2021 property tax levies for Special Service Area numbers 23, 25, 31, and 33
body
DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
If an estimated Special Service Area (SSA) tax levy is more than 105% of the amount needed for that Special Service Area in the preceding year (in any year other than the initial year of the SSA) state statute (35 ILCS 200/27-75) requires notice, compliant with the Open Meetings Act, be given and a hearing held on reasons for the increase.
The City will be conducting a Truth-in-Taxation hearing for the aggregate City tax levy. This agenda item includes the estimated levy for each of the City’s four SSAs that will levy taxes in 2022 for the purpose of determining whether a Truth-in-Taxation notice and hearing is required for any of the SSAs.
DISCUSSION:
The City has four SSAs currently levying taxes and the Finance Department has estimated the 2021 property tax levy needed to support the proposed 2022 Annual Budget for each SSA listed below.
|
Purpose |
2020 Extension |
2021 Estimated Levy |
Projected % Change |
|
SSA #23 (Main Street Promenade) |
99,931 |
98,939 |
(0.9) |
|
SSA #25 (Lacrosse Lane) |
68,003 |
68,000 |
0.0 |
|
SSA #31 (Downtown Streetscape) |
27,271 |
23,445 |
(14.0) |
|
SSA #33 (Downtown Maintenance & Marketing) |
1,158,238 |
1,199,007 |
3.5 |
None of the SSAs are estimated to levy more than 105% of the prior year’s extension, therefore, a Truth-in-Taxation notice and hearing is not required.
SSA #23 - Main Street Promenade
The 2021 levy recommendation is $98,939. The request is a 0.99% decrease from last year’s extension. This levy is utilized to provide a financing mechanism for debt service on the Naper Main parking facility based upon the existing sales tax incentive agreement.
SSA #25 - LaCrosse Lane
The 2021 levy recommendation is $68,000. The request is flat to last year’s extension. 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 #31 - Downtown Streetscape (41 S. Jefferson)
SSA #31 was established in 2019 as a mechanism fund City required streetscape improvements associated with the redevelopment of the property located at 41 S. Jefferson Avenue. The City reimbursed the property owner for the improvements and will recoup those costs, plus interest, through the SSA levy over 15 years. The 2021 levy recommendation is $23,445.
SSA #33 - Downtown Maintenance and Marketing
SSA #33 was established in 2020 as a successor to SSA #26. SSA #33 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 paid exclusively by the property owners. SSA #33 has a maximum tax rate of 2.5% per annum of Equalized Assessed Valuation (EAV) and will remain active through 2025. The 2021 levy recommendation is $1,199,007.
FISCAL IMPACT:
The recommended Special Service Area (SSA) tax levies of $98,939 for SSA #23; $68,000 for SSA #25; $23,445 for SSA #31 and $1,199,007 for SSA #33, will be used to support the applicable debt service payments and provide special municipal services.