CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Conduct a Truth-in-Taxation hearing for the Special Service Area No. 23 (Naper Main) property tax levy (Item 1 of 2)
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DEPARTMENT: Finance Department
SUBMITTED BY: Erik Hallgren, Financial Services Supervisor
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Special Service Area No. 23 was created per Ordinance 07-168 in July 2007. The purpose of Special Service Area No. 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. Special Service Area 23 will expire in June 2043.
DISCUSSION:
City Council received the estimated 2017 property tax levy for Special Service Area No. 23 at the November 17, 2017 City Council meeting in the amount of $98,939. This proposed property tax levy for 2017 is a 28.9% increase from the 2016 final property tax extension of $76,761. A truth-in-taxation hearing is required per State statute because the proposed 2017 property tax levy is greater than 105% of the final 2016 property tax extension. A truth-in-taxation hearing notice was published on December 10, 2017 in accordance with State statute. Once the truth-in-taxation hearing is concluded, City Council may adopt the annual property tax levy. This levy amount represents a projected tax rate of 3.4902 up from the 2016 rate of 2.8162.
FISCAL IMPACT:
Tax Levy of $98,939 for Special Service Area No. 23