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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: November 29, 2014
SUBJECT:
An Ordinance Levying Taxes for the City of Aurora, Illinois, for the Fiscal Year January 1, 2014 through December 31, 2014.
PURPOSE:
To facilitate the City Council's passage of the proposed 2014 property tax levy 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 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 80% 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 2013 property tax levies for both the city and library were included in the proposed 2015 City Budget released on October 15, 2014. Because the aggregate levy amount (less general obligation debt service) will increase more than 5% from the prior year's extension, a notice and 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 2014 property tax levy ordinances for the city and the library, respectively.
As shown in Exhibit 2, the proposed city tax levy totals $69,179,900 (including city debt service). This is $3,205,200 or 4.86% higher than the 2013 levy extension. As reflected in Exhibit 3, the proposed library General Fund tax levy is $8,000,000. The 2014 library debt service levy will be $1,253,700. The total library levies will be 5.23% higher than the prior year's extension. The total dollar increase in the library's levy will be $459,965.
The levy for the library's General Fund of $8,000,000 for 2014 is precisely the same amount as was levied in 2013. However, the library received about $500,000 less than this amount for the 2013 levy because of the $0.245 per $100 of EAV tax rate limitation imposed by city policy and reduced EAV. Whether the library will receive the full $8,000,000 amount levied for 2014 will depend upon final EAV for this year.
I would like to highlight three matters pertaining to the proposed levies for 2014:
· The amount of $40,900,000 to be levied for the city's General Fund is the same amount that was levied in 2013. (There appears to be a slight decrease in Exhibit 1 because the exhibit reflects extension figures for 2013 rather than levy [original request] amounts.) Moreover, the 2014 General Fund levy is less than the corresponding levy in 2005.
· 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 17th consecutive year, the city will make the full contributions to the pension funds that have been determined by the actuary. The entire amount of the city's 2014 levy increase is related to increased pension costs, especially those related to public safety pensions. The terms of benefits provided by public safety pensions are established by state law.
· 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.
It is important to note that the aggregate $3.2 million increase in the city's portion of the levy is due exclusively to increases in the cost of pensions - particularly public safety pensions - whose terms are established by the state government.
The following are the key dates leading to the passage of our 2014 property tax levies.
12/3/14 Truth in Taxation notice published in The Beacon News.
12/9/14 Proposed tax levy ordinances considered by the Finance Committee.
12/16/14 Proposed tax levy ordinances considered by the Committee of the Whole.
12/23/14 City Council adopts tax levy ordinances during its rescheduled regular meeting.
12/30/14 Last day for filing tax levy ordinances with the county clerks.
IMPACT STATEMENT:
Not Applicable.
RECOMMENDATIONS:
That the City Council approve the proposed 2014 property tax levy for the city as attached as Exhibit 2.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Levying Taxes For The City Of Aurora, Illinois For the Fiscal Year January 1, 2014 Through December 31, 2014.
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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, 2014 (excluding the General Obligation Bond and Interest Tax Levy and the Library Fund Tax Levy) shall be the sum of sixty-five million one hundred seventy-nine thousand nine hundred dollars ($65,179,900) 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 sixty-five million one hundred seventy-nine thousand nine hundred dollars ($65,179,900) being the total of expenditures heretofore legally budgeted which shall be collected from the tax levy of the aforesaid fiscal year of the City 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 sixty-five million one hundred seventy-nine thousand nine hundred dollars ($65,179,900) 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.
PRESENTED to the City Council of the City of Aurora, Illinois, on the 16th day of December, 2014.
FILED for inspection on the 16th day of December, 2014.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
____________________________ __________________________
City Clerk Mayor