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: Rachel Mayer, Finance Director
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:
The City Council received the estimated 2020 property tax levy for Special Service Area No. 23 at its November 4, 2020 meeting in the amount of $98,939. The proposed property tax levy for 2020 is a 0.99% decrease from the 2019 final property tax extension of $99,931. Per state statute, a Truth-in-Taxation hearing is required if the proposed 2019 property tax levy is greater than 105% of the final 2019 property tax extension. Although the proposed 2020 property tax levy does not meet the Truth-in-Taxation requirements, to remain consistent and transparent, a hearing notice was published on December 6, 2020. Once the Truth-in-Taxation hearing is concluded, the City Council may adopt the annual property tax levy. This levy amount represents a projected tax rate of 2.6376, which is down from the 2019 rate of 2.7839.
FISCAL IMPACT:
The tax levy of $98,939 for Special Service Area No. 23 will support the 2021 annual operating budget.