TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: December 4, 2013
SUBJECT: title
An Ordinance Levying Taxes for the City of Aurora, Illinois, for the Fiscal Year January 1, 2013 through December 31, 2013
body
PURPOSE:
To facilitate the City Council's passage of the proposed 2013 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 20% 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 85% 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 2013 property tax levies for both the city and library were included in the proposed 2014 City Budget released on October 15, 2013. 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 2013 property tax levy ordinances for the city and the library, respectively.
As shown in Exhibit 2, the proposed city tax levy totals $65,649,100 (including city debt service). This is $365,372 or 0.56% higher than the 2012 levy extension. As reflected in Exhibit 3, the proposed library General Fund tax levy is $8,000,000. The 2013 library debt service levy will be $1,264,000. The total library levies will be 0.17% lower than the prior year's extension. The total dollar increase in the library's levy will be $349,728.
I would like to highlight four matters pertaining to the proposed levies for 2013:
· The 2013 levy for the General Fund will decrease by $1,062,956 or 2.5% from the 2012 extension. These revenues will be used to support the city's primary operations.
· While the overall city levy will increase by $365,372, this increase is entirely due to the need to satisfy the annual funding requirement for public safety pensions. The annual required contribution for the public safety pensions, whose benefits are determined based upon a state-mandated formula, will rise by $1,508,329 or 9.5%. The reduction in the 2013 General Fund levy will serve to diminish the impact of the increase in the levy for public safety pensions.
· 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. For the 16th consecutive year, the city will make the full contributions to the pension funds that have been determined by the actuary.
· Exclusive of the component of the library's tax levy for debt service, the rate for the library's levy will continue to be no more than $0.245 per $100 of EAV.
To summarize, the following are the key dates leading to the passage of our 2013 property tax levies.
12/10/13 Proposed tax levy ordinances considered by the Finance Committee.
12/17/13 Proposed tax levy ordinances considered by the Committee of the Whole.
12/17/13 City Council adopts tax levy ordinances during its rescheduled regular meeting.
12/24/13 Last day for filing tax levy ordinances with the county clerks.
IMPACT STATEMENT:
Not applicable
RECOMMENDATIONS:
That the City Council approve the proposed 2013 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 Peters, Alternate