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 tax levy of $1,252,829 for Special Service Area No. 33 (Downtown Maintenance Expenses and Marketing Costs)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Special Service Area No. 33 (SSA #33) was created per Ordinance 20-106 in October 2020 as a successor to SSA #26. The purpose of SSA #33 is to levy taxes for special services related to the maintenance and marketing of Downtown Naperville. SSA #33 will expire in October 2024.
DISCUSSION:
City Council received the estimated 2022 property tax levy for SSA #33 at the November 15, 2022 City Council meeting in the amount of $1,252,829. This proposed property tax levy for 2022 is an 4.5% increase from the 2021 final property tax extension of $1,199,032.
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 #33 without further action.
This levy amount represents a projected tax rate of 1.6294, which is below the maximum rate of 2.5000 set by the originating ordinance.
FISCAL IMPACT:
The tax levy of $1,252,829 for SSA #33 will support maintenance and marketing activities for the downtown area as included in the 2023 annual operating budget.