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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/ City Treasurer
DATE: December 3, 2018
SUBJECT:
An Ordinance Levying Taxes for the City of Aurora, Illinois, for the Fiscal Year January 1, 2018 through December 31, 2018.
PURPOSE:
To facilitate the City Council’s passage of the proposed 2018 property tax levies for the City and the Aurora Public Library.
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 23% 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 about 95% of library revenues.
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 2018 property tax levies for both the city and library were included in the proposed 2019 City Budget released on October 19, 2018. 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 2018 property tax levy ordinances for the city and the library, respectively.
As shown in Exhibit 2, the proposed city tax levy totals $77,496,900 (including city debt service and a new Library IMRF Levy). This is $564,217 or 0.74% higher than the 2017 levy extension with the new Library IMRF Levy excluded. With this new Library IMRF Levy included the increase is 1.66%. The major source of this increase is a $1.38 million increase in the Police/Firefighter Pension Funds and the new Library IMRF Levy, which is offset by the recommended $550,000 decrease for the elimination of spending for the Aurora Election Commission.
As reflected in Exhibit 3, the proposed Library General Fund tax levy is $10,000,000. The 2018 Library Debt Service levy will be $1,229,500. The total dollar increase in the Library’s levy will be $530,217 or 5.0% more than the prior year’s extension. In order to ensure this new Library IMRF Levy is properly collected at a set dollar amount, it is included in the City's Levy so that it will not be limited by the .255 cap rate for the Library. When the new Library IMRF Levy of $700,000 is calculated into this increase (instead of in the City's Levy), the increase would be 11.5%.
It is important to note that the levy for the Library General Fund may not yield the full $10,000,000 that has been requested. This is because of the tax rate limitation that is included in the tax levy ordinance. By our internal policy, the tax rate limitation for the Library’s General Fund is $0.255 per $100 of equalized assessed value (EAV).
I would like to highlight just one other matter pertaining to the proposed levies for 2018:
• 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 2019 that have been determined by the actuary. The total of the pension components of the levy will increase from $29,662,033 as extended to $31,008,900 or by $1,346,867 (4.54%).
The following are the key dates leading to the passage of our 2018 property tax levies.
12/11/18 Proposed tax levy ordinances considered by the Finance Committee.
12/18/18 Proposed tax levy ordinances considered by the Committee of the Whole.
12/18/18 City Council adopts tax levy ordinances during its rescheduled regular meeting.
12/26/18 Last day for filing tax levy ordinances with the county clerks.
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council approve the proposed 2018 property tax levies for the City and the Aurora Public Library attached as Exhibits 2 and 3, respectively.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Levying Taxes For the City of Aurora, Illinois, For The Fiscal Year January 1, 2018 Through December 31, 2018.
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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 tax levy of the fiscal year of said City commencing January 1, 2018 (excluding the General Obligation Bond and Interest Tax Levy and the Library Fund Tax Levy) shall be the sum of seventy-two million seven hundred ninety-six thousand nine hundred dollars ($73,496,900) and is hereby ascertained in the said amount to be assessed and levied upon and against all property within the cooperate 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 seventy-two million seven hundred ninety-six thousand nine hundred dollars ($73,496,900) being the total of expenditures heretofore legally budgeted which shall be collected from the tax levy of the aforesaid fiscal year of the Citsy of Aurora (excluding the General Obligation Bond and Interest Tax Levy and the Library Fund 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 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” and “Amount To Be Provided from Township Road and Bridge Tax” for street maintenance purposes; that the amount or portion of each item hereby determined to be provided from the Personal Property Replacement Tax is designated under the column headed “Amount To Be 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 seventy-two million seven hundred ninety-six thousand nine hundred dollars ($73,496,900) 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 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 4: That all ordinances or parts of ordinances conflicting with any of the provisions of this ordinance be and the same are hereby repealed.
SECTION 5: That this ordinance shall be in force from and after its passage and approval.
SECTION 6: 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.
your resolution summary here.