CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance for the levy and assessment of taxes for the fiscal year beginning January 1, 2024 and ending December 31, 2024, adopting a total levy of $98,939 for Special Service Area No. 23 (Naper Main)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Special Service Area No. 23 (SSA #23) was created per Ordinance 07-196 in September 2007. The purpose of SSA #23 is to levy taxes for debt service on $3.5 million of general obligation bonds for the construction of Naper Main Parking at Main Street Promenade. SSA #23 will expire in 2038.
DISCUSSION:
The City Council received the estimated 2023 property tax levy for SSA #23 at the November 7, 2023 City Council meeting in the amount of $98,939. This proposed property tax levy for the 2023 tax year is flat from the 2022 final property tax extension of $98,939.
Per state statute, a public hearing is required if the proposed 2023 property tax levy for a special service area is greater than 105% of the final 2022 property tax extension. Because the 2023 levy is less than 105% of the final 2022 tax extension, the City Council may adopt the annual property tax levy for SSA #23 without further action.
The requested levy amount represents a projected tax rate of 2.3193, which is below the maximum rate of 40.0000 set by the originating ordinance.
FISCAL IMPACT:
The tax levy of $98,939 for SSA #23 will support the debt service payments associated with this special service area included in the 2024 annual operating budget.