CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Conduct the public hearing on the proposed 2023 property tax levy increase for Special Service Area No. 34
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
If an estimated Special Service Area (SSA) property tax levy is more than 105% of the tax amount extended for that special service area in the preceding year in any year other than the initial year of the SSA, state statute (35 ILCS 200/27-32) requires notice, compliant with the Open Meetings Act, be given and a hearing held on reasons for the increase. Per state statute, the hearing must be held not more than 30 days prior to the adoption of the levy but not at the same meeting in which the adoption of the levy is considered.
On November 7, 2023, the City Council received the estimated 2023 property tax levy for SSA #34 of $20,026. That estimate is 111.2% of the prior year's levy or an increase of 11.2%, thus requiring a public hearing.
DISCUSSION:
On March 15, 2022, the City established SSA #34, through ordinance 22-028, to fund the property owners' share of the design and construction of improvements to the streetscape in the Central Business District. Work included installing new sidewalks, curbs, and the parkway feature. SSA #34 includes the north side of Jefferson Avenue between Main and Webster Streets. Property owners are responsible for 40% of the streetscape expenses payable through the SSA levy over 15 years, beginning in 2023.
The 2023 tax levy (payable in 2024) is recommended at $20,026. The 2023 levy recommendation is an increase of 11.2% from the 2022 tax extension (payable in 2023) of $18,010. The 2022 tax levy, which was the first levy year, was based on estimated construction costs.
Now that the project is complete, the 2023 levy is based on actual construction costs reimbursable to the City. This will be a one-time increase shared among the six parcels includ...
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