CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Pass the ordinance proposing the establishment of Special Service Area No. 36 (Downtown Maintenance Expenses and Marketing Costs) in the City of Naperville and providing for a public hearing
body
DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 1970, the Illinois Constitution Convention granted municipalities and counties the authority:
"to levy or impose additional taxes upon areas within their boundaries in the manner provided by law for the provision of special services to those areas and for the payment of debt incurred in order to provide those special services."
The establishment of a Special Service Area (SSA) is controlled by a statute referred to as the Special Service Area Tax Law. 35 ILCS 200-27-5 et seq. An SSA is defined as "a contiguous area within a municipality in which special governmental services are provided in addition to those services provided generally throughout the municipality, the cost of the special services to be paid from revenues collected from taxes levied or imposed upon property within that area."
Naperville has utilized SSAs since 1976 to pay for a variety of functions including the provision of free parking in the downtown (SSA No. 1), the payment of debt service (SSA No. 21 - Van Buren Parking Garage), and the maintenance and marketing of the downtown (SSA No. 17; 20; 22; 24; 26 and 33). Currently, SSA No. 33 pays for the maintenance and marketing of the Central Business District. Services are paid for using a funding formula developed in 2000 whereby the maintenance services are 2/3 funded by the City through the General Fund and 1/3 funded by the property owners through the special assessment. In addition to the 1/3 maintenance cost, the City levies a marketing component for the Downtown Naperville Alliance (DNA) funded 100% by the property owners. SSA No. 33 was created in 2020 and will expire in 2025...
Click here for full text