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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: November 16, 2015
SUBJECT:
An Ordinance Levying Library Fund Taxes for the City of Aurora, Illinois, for the Fiscal Year January 1, 2015 through December 31, 2015.
PURPOSE:
To facilitate the City Council’s passage of the proposed 2015 property tax levies for the city.
BACKGROUND:
The city obtains the resources for its operations through a variety of sources. The annual property tax levy provides a major share of our revenue - approximately 22% of the revenue for all city funds and about 40% of the revenue for the General Fund. The library is heavily reliant upon property tax revenues. Property taxes account for over 85% of library revenues (outside of the library’s bond project fund).
35 ILCS 200/18-60 requires that each taxing district in Illinois determine an estimate of monies to be raised by the taxation of taxable property not later than 20 days prior to adoption of a tax levy. Estimates of the 2015 property tax levies for both the city and library were included in the proposed 2016 City Budget released on October 27, 2015. Because the aggregate levy amount (less general obligation debt service) will increase less than 5% from the prior year’s extension, no notice or public hearing pursuant to the Truth in Taxation Act is required.
DISCUSSION:
Attached as Exhibit 1 is a schedule presenting historical information related to the city’s annual tax levies, tax rates, and assessed valuation. Attached as Exhibits 2 and 3 are the proposed 2015 property tax levy ordinances for the city and the library, respectively.
As shown in Exhibit 2, the proposed city tax levy totals $70,418,900 (including city debt service). This is $878,833 or 1.26% higher than the 2014 levy extension. As reflected in Exhibit 3, the proposed library General Fund tax levy is $8,305,000. The 2015 library debt service levy will be $1,246,819. The total library levies will be 9.04% higher than the prior year’s extension. The total dollar increase in the library’s levy will be $792,282.
It is important to note that the levy for the library General Fund is unlikely to yield the $8,305,000 that will be requested. This is because of the tax rate limitation that is included in the tax levy ordinance. To provide for greater resources needed to staff and operate the recently enhanced library system, an increase in the tax rate limitation from $0.245 to $0.255 is proposed. Increasing the limitation is likely to produce between $300,000 and $400,000 more than the 2014 extension for the library General Fund of $7,494,171. Thus, depending upon the determination of the final 2015 EAV by the counties, the 2015 levy for the library General Fund will probably produce between $7.8 and $7.9 million.
I would like to highlight two other matters pertaining to the proposed levies for 2015:
• The amount of $42,338,000 to be levied for the city’s General Fund is $1,236,612 or about 3.0% more than the corresponding amount extended in 2014. As reflected in Exhibit 1, the city’s extensions for the General Fund declined precipitously from 2008 to 2014. This approach to the tax levy was taken in recognition of the challenges that city residents and businesses faced during the Great Recession and the subsequent recovery. However, the city cannot continue levy property taxes in this manner in the face of rising operating costs. Even with the increase in 2015, the levy for the General Fund will be substantially less than it was 2008.
• The amounts of those components of the levy earmarked for the city’s contributions to the Firefighters’ Pension Fund and the Police Pension Fund were determined based upon actuarial valuations developed by the city’s actuary. The contributions were calculated in accordance with Illinois Public Act 96-1495. As has been the case for many years, the city will make the full contributions to the pension funds in 2016 that have been determined by the actuary. Because the recent investment experience by the public safety pension funds has been close to the actuarial assumption and salary increases for sworn personnel have moderated, the levy for public safety pensions will decline slightly - by $117,913.
The following are the key dates leading to the passage of our 2015 property tax levies.
12/8/15 Proposed tax levy ordinances considered by the Finance Committee.
12/15/15 Proposed tax levy ordinances considered by the Committee of the Whole.
12/22/15 City Council adopts tax levy ordinances during its rescheduled regular meeting.
12/29/15 Last day for filing tax levy ordinances with the county clerks.
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council approve the proposed 2015 property tax levies for the city and the Aurora Public Library attached as Exhibits 2 and 3, respectively.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Levying Library Fund Taxes For The City Of Aurora, Illinois For The Fiscal Year January 1,2015 Through December 31, 2015.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS,
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1:That the total amount of expenditures legally budgeted by the City of Aurora to be collected from the Library Fund (consisting of the Library General Fund and the Library Capital Projects and Technology Fund) tax levy of the fiscal year of said City commencing January 1, 2015, (excluding the General Obligation Library Bond and Interest Tax Levy) shall be the sum of eight million three hundred five thousand dollars ($8,305,000) and is hereby ascertained in the said amount to be assessed and levied upon and against all property within the corporate limits of the City of Aurora subject to taxation according to the value of said property as the same is assessed and equalized for State and County purposes for the aforesaid fiscal year.
SECTION 2: That the said sum of eight million three hundred five thousand dollars ($8,305,000) being the total of expenditures heretofore legally budgeted which shall be collected from the Library Fund tax levy of the aforesaid fiscal year of the City of Aurora, for Library Fund purposes (excluding the General Obligation Library Bond and Interest Tax Levy), the same be and is hereby levied upon all of the property in the City of Aurora subject to taxation for the aforesaid fiscal year. That the Library Fund purposes and various funds for which this tax levy is made, as budgeted by the City of Aurora, are designated on the following pages; that the amounts budgeted are designated under the column headed, “Amount Budgeted,” that the portion thereof raised from sources other than City taxation rates is designated under the column headed, “Amount To Be Provided From Sources Other Than City Taxation Rates” which includes five hundred thousand dollars ($500,000) provided from Personal Property Replacement Tax; that the amount or portion of each item hereby levied, to be raised by the City Taxation Rates and comprising the said sum of eight million three hundred five thousand dollars ($8,305,000) is designated under the column headed “Amount To Be Levied From City Taxation Rates;” and that the totals of such amounts have been ascertained as aforesaid and for each fund as set forth on the following pages.
SECTION 3: That the several County Clerks are authorized and directed to abate the tax levy of the Library Fund in an amount which will cause the tax levy of the Library Fund, excluding the General Obligation Library Bond and Interest Fund tax levy, not to exceed twenty-five and one-half cents ($0.255) per one hundred dollars ($100.00) of equalized assessed valuation.
SECTION 4: That this levy ordinance is adopted pursuant to the procedures set forth in the Illinois Municipal Code; provided however, that any tax rate limitation, or any other limitation as to tax levies in the Illinois Municipal Code in conflict with this ordinance shall not be applicable to this ordinance pursuant to Section 6 of Article VII of the Constitution of the State of Illinois.
SECTION 5: That all ordinances or parts of ordinances conflicting with any of the provisions of this ordinance be and the same are hereby repealed.
SECTION 6: That this ordinance shall be in force from and after its passage and approval.
SECTION 7: That the City Clerk be, and is hereby directed to file with the office of the various County Clerks, a certified copy of this ordinance as provided by law.
PRESENTED to the City Council of the City of Aurora, Illinois, on the 15th day of December, 2015.
FILED for inspection on the 15th day of December, 2015.
PASSED by the City Council of the City of Aurora, Illinois, this 22nd day of December, 2015, pursuant to a roll call vote as follows:
AYES___________ NAYES_________ ABSENT___________
APPROVED AND SIGNED by the Mayor of the City of Aurora, Illinois, this 22nd day of December, 2015.
____________________________________
Mayor
ATTEST:
_____________________________________
City Clerk