CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt the Resolution authorizing execution of the Special Census Memorandum of Agreement between the City of Naperville and the US Census Bureau, to conduct a partial Special Census.
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: Kasey Evans, AICP
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City of Naperville has conducted special censuses at various times throughout past decades. A special census allows municipalities to certify an adjusted population, which can procure additional revenues from three taxes distributed by the state on a per capita basis - income tax, local use tax and motor fuel tax.
In early July, the Illinois General Assembly approved a state budget, which included a 10-percent reduction in distribution of the Local Government Distribution Fund (LGDF). The LGDF is comprised of income taxes collected by the state and redistributed to municipalities based on population. The reduction was approved for a one-year period spanning the state's fiscal year - July 2017 through June 2018. Based on historic projections, the City of Naperville will lose approximately $1.28 million in income tax revenue during that span.
As part of the reduction, the state also redesigned the distribution method of income taxes. Traditionally, the state deposited LGDF funds into the General Fund before transferring shares to each municipality and county. The process took approximately two months after collection to reach local entities. The process will now be streamlined with a direct deposit into the LGDF fund, eliminating to the 60-day delay. This change will allow local governments to receive a temporary surge in revenues during the state's current fiscal year with 14 payments distributed over 12 months. This will not completely offset the 10-percent overall reduction, but will mitigate its negative impact on cashflow.
A special census will allow the City to recoup some of th...
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