CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance to abate a portion of the 2017 tax levy for the City of Naperville authorizing an abatement of $1.8 million from the revised tax levy of $48,686,811 for a net total tax levy of $46,886,811
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On December 19, 2017, City Council passed Ordinance 17-171 which levied and assessed taxes for the fiscal year starting January 1, 2018 and ending December 31, 2018. This levy is used for the funding of the City's general corporate fund, debt service, retirement funds, the Naperville Library and Naper Settlement. The initial amount levied for 2017 totaled $56,856,960.
Subsequently, City Council passed Ordinance 17-172 at the same meeting. This Ordinance reduced the City's debt service levy associated with the electric and water/wastewater utilities. The revised amount levied for 2017 was reduced to $48,686,811.
DISCUSSION:
During the CY2018 budgetary process a variety of revenue and expense changes were discussed in order to maintain a structurally balanced budget and focus on minimizing the impact on property tax bills. As such, City Council decided to reexamine rates for several local taxes. At the February 6, 2018 City Council meeting, Council voted to increase both the hotel/motel tax and the telecommunications tax. Next, City Council voted to increase the home rule sales tax at the March 6, 2018 meeting. The table below shows the action items that were considered since the passage of the budget. The table also shows the impact on the 2018 property tax levy.
Component
Action
Effective Date
Financial Impact
Impact on 2018 Target
APPROVED ACTION ITEMS
Bond Sale
Lower interest rate than anticipated
Immediate
Reduces gap starting point by $200,000
Abatement of $200,000
Municipal Telecommunications Tax
Increased from 5.0% to 6.0%
July 1, 2018 collection
October 1, 2018 disbur...
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