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, 2023 and ending December 31, 2023 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:
City Council received the estimated 2022 property tax levy for SSA #23 at the November 15, 2022 City Council meeting in the amount of $98,939. This proposed property tax levy for the 2022 tax year is nearly flat from the 2021 final property tax extension of $98,942.
Per state statute, a public hearing is required if the proposed 2022 property tax levy for a special service area is greater than 105% of the final 2021 property tax extension. Because the 2022 levy is less than 105% of the final 2021 tax extension, 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 2.6000, 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 2023 annual operating budget.