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TO: Mayor Richard C. Irvin
FROM: Martin Lyons, Chief Financial Officer/City Treasurer
David Dibo, Director, Mayor's Office of Economic Development
DATE: August 21, 2018
SUBJECT:
Ordinance approving the extension of the tax levy for an additional eight (8) years of Special Service Area One (1) Aurora Downtown in the City of Aurora following notice and public hearing and other procedures in connection therewith
PURPOSE:
It has been determined by the City Council of the City of Aurora that it is in the public interest that the authority to levy taxes for said Special Service Area Number One (1) be extended for an additional eight (8) years; and
That a public hearing was held on June 26, 2018; and
That said Area is compact and contiguous and constitutes a principal commercial and business area of the City; and
That said Area is principally zoned for commercial and residential purposes and will benefit specially from the municipal services to be provided and that the proposed municipal services are unique and in addition to municipal services provided to the City of Aurora as a whole and it is, therefore, in the best interest of said Area and the City of Aurora as a whole that special taxes be levied against said Area for the services to be provided..
BACKGROUND:
That the purpose of City of Aurora Special Service Area Number One is to provide special municipal services for said Area (Downtown) to achieve the following goals:
GOAL 1: Create, fund and staff a downtown management and development organization, which will be an Illinois not-for-profit corporation.
GOAL 2: Assist business and property owners to enhance and maintain a safe, secure, clean and hospitable business environment.
GOAL 3: Attract anchors and other complementary businesses to downtown.
GOAL 4: Plan, coordinate and monitor capital improvement projects for downtown.
GOAL 5: Identify and work with business and property owners to encourage business growth and property improvements.
GOAL 6: Design and implement a unified marketing plan.
GOAL 7: Create programs to facilitate the funding of projects important to downtown.
GOAL 8: Such other programs and purposes as are related with and/or incidental to the previous goals.
These goals are in addition to the services provided by the City generally.
DISCUSSION:
That the City of Aurora contracts with "Aurora Downtown" is hereby authorized from time to time for the purpose of achieving the goals herein above delineated.
IMPACT STATEMENT:
Tax levy will expire with the tax levy of tax year 2017 and it is in the best interest of Said Area and the City of Aurora as a whole that the special taxes levied on said Area be extended for an additional eight (8) years so that the special services provided to said Area as set forth in Ordinance No. O94-93 can continue to be provided in said area..
RECOMMENDATIONS:
I recommend this item be placed on Finance Committee Agenda for Tuesday, August 28, 2018 for City Council approval.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance extending the tax levy for an additional eight (8) years of Special Service Area One (1) (Aurora Downtown) in the City of Aurora following notice and public hearing and other procedures in connection therewith. PUBLIC HEARING
body
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, (special service areas are established pursuant to subsection (1) of Section 6 of Article VII of the Illinois Constitution of 1970, and the Special Service Area Tax Law (35 ILCS 200/27-5 et seq) and the Property Tax Code (35 ILCS 200/1-1 et seq); and
WHEREAS, by City of Aurora Ordinance No. O94-93 passed September 6, 1994 Special Service Area No. One (1) was established; and
WHEREAS, the boundaries of said Special Area are set forth in attached map Exhibit “A-1”, the legal description of which territory is attached hereto as Exhibit “A”; and
WHEREAS, by said Ordinance No. O94-93 a special annual tax was authorized to be levied upon the equalized assessed value of the property in said Area in an amount not to exceed one percent (1%) of said value, the levy of which tax was limited for a period of eight (8) consecutive years commencing with and subsequent to the date of said Ordinances; and
WHEREAS, by Ordinance No. O02-92 passed August 27, 2002 the authority to levy said taxes was extended for an additional eight (8) years; and
WHEREAS, by Ordinance O10-051 passed August 24, 2010 the authority to levy said taxes was extended again for an additional eight (8) years; and
WHEREAS, said tax levy will expire with the tax levy of tax year 2017 and it is the best interest of Said Area and the City of Aurora as a whole that the special taxes levied on said Area be extended for an additional eight (8) years so that the special services provided to said Area as set forth in Ordinance No. O94-93 can continue to be provided in said area.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION ONE:
(a) That it is in the public interest that the tax levy territory hereinafter described in the Notice referr3ed to in Section Five hereof for Special Service Area Number One (1) be extended for an additional eight (8) years as provided for in Section Three for the purposes set forth herein; and
(b) That said Area is compact and contiguous and constitutes a principal commercial and business area of the City; and
(c) That said Area is principally zoned for commercial and residential purposes and will benefit specially from the municipal services to be provided and that the proposed municipal services are unique and in addition to municipal services provided to the City of Aurora as a whole and it is, therefore, in the best interest of said Area and the City of Aurora as a whole that special taxes be levied against said Area for the services to be provided.
(d) Further, that City contracts with “Aurora Downtown” are hereby authorized from time to time for the purpose of achieving the goals herein below delineated.
SECTION TWO:
That the purpose of City of Aurora Special Service Area Number One is to provide special municipal services for said Area (Downtown) to achieve the following goals:
GOAL 1: Create, fund and staff a downtown management and development organization, which will be an Illinois not-for-profit corporation.
GOAL 2: Assist business and property owners to enhance and maintain a safe, secure, clean and hospitable business environment.
GOAL 3: Attract anchors and other complementary businesses to downtown.
GOAL 4: Plan, coordinate and monitor capital improvement projects for downtown.
GOAL 5: Identify and work with business and property owners to encourage business growth and property improvements.
GOAL 6: Design and implement a unified marketing plan.
GOAL 7: Create programs to facilitate the funding of projects important to downtown.
GOAL 8: Such other programs and purposes as are related with and/or incidental to the previous goals.
These goals are in addition to the services provided by the City generally.
SECTION THREE:
Annual taxes shall be assessed and levied for said special municipal services in said Area, on property in said Area in addition to all other municipal taxes; provided that the special annual tax shall be levied upon the equalized assessed value of the property in said Area in an amount not to exceed an annual rate of one percent (1%) of said value. This tax shall be levied for a period of eight (8) consecutive years commencing during and in the years subsequent to the date of this Ordinance. Said taxes shall be in addition to all other taxes provided by law and shall be levied pursuant to the provisions by law and shall be levied pursuant to the provisions of the Property Tax Code.
However, any person or entity owning one or more parcels within such Area whose total annual tax liability for said tax hereunder exceeds $15,000.00 shall be entitled to receive a rebate from the City in the amount of such excess, provided such person or entity shall annually apply for such excess rebate not later than the due date of the second property tax installment, with payment of the rebate to be within thirty (30) days thereafter. Such specified limiting amount of $15,000.00 shall be annually adjusted in accordance with the Revised Consumer Price Index for Urban Wage Earners for Chicago issued by the Bureau of Labor Statistics of the U.S. Department of Labor, to be adjusted on each January 1st commencing January 1, 1995 with the year 1995 to be the base year for purposes of determining said adjustments.
Additionally, the maximum annual levies for Special Service Area Numbers 15 and 16 shall each be hereafter limited by the City administratively, to a maximum rate of two percent (2%) from the commencement of the levies hereunder, for the duration of this Area or the respective established Areas, whichever earlier occurs.
SECTION FOUR:
That a public hearing was held on the 26th day of June, 2018, at 6:00 p.m. in the City Council Chambers of City Hall, 44 East Downer Place, Aurora, Illinois with regard to the extension of the tax levy for an additional eight (8) years of Aurora Special Service Area Number One as described in the Notice referred to in Section Four hereof. At the hearing, there was considered the extension of the tax levy of an annual tax as described and limited in Section Three hereof.
SECTION FIVE:
That notice of hearing was published on the 8th day of June, 2018, being not less than fifteen (15) days prior to the public hearing, in a newspaper in general circulation in the City of Aurora. In addition, notice by mailing was given by depositing said notice in the U.S. mailed addressed to the person or persons in whose name the general taxes for the preceding year were paid on each lot, block, tract or parcel of land lying within the area of the existing area of Special Service Area Number One. Said Notice was mailed on June 8, 2018, being not less than ten (10) days prior to the public hearing. In the event taxes for the last preceding year were not paid, the Notice was sent to the person last listed on the tax rolls prior to that year as the owner of said property. Notice was published in the form described by Exhibit “B” attached hereto.
SECTION SIX:
That this ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval.
SECTION SEVEN:
That all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict.
SECTION EIGHT:
That any Section or provisions of this ordinance that is construed to be invalid or void shall not affect the remaining Sections or provisions which shall remain in full force and effect thereafter.
Dated this 11th day of September, 2018.
EXHIBITS
SSA ONE TIMELINE EXTENSION
EXHIBIT "A' - SSA ONE LEGAL DESCRIPTION AURORA DOWNTOWN
EXHIBIT "A-1" SITE MAP
EXHIBIT "B" LEGAL NOTICE OF HEARING
EXHIBIT "C" AFFIDAVIT OF SERVICE OF NOTICE
EXHIBIT "D" SSA ONE DETAIL MAP DOWNTOWN