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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: November 26, 2014
SUBJECT:
An Ordinance Authorizing and Providing for the Abatement of General Obligation Bond Tax Levies, 2014 Tax Levy Extension
PURPOSE:
To obtain the City Council's approval of a proposed ordinance that would serve to abate a portion of the city's 2014 property tax levies for general obligation (GO) bond debt service.
BACKGROUND:
The city currently has GO bonds outstanding from 10 separate issues (not including library issues). The enabling ordinances related to these bonds provide for the automatic levy of property taxes to satisfy annual debt service requirements. These automatic tax levies are in place notwithstanding our regular annual city property tax levies.
For several years, the city has abated all or a portion of its property tax levies for GO debt service because we have had other revenue sources available to cover required debt service.
DISCUSSION:
For the 2014 tax levy year (taxes payable in 2015), we are again in a position to abate a large portion of the debt service associated with the city's GO bond issues. The total amount of this abatement would be $10,327,100.37. The debt service for the library's portion of the Series 2011 GO Bonds will not be abated but will be included in the property tax levy. The Series 2011 bonds refunded the Series 2001A and Series 2003A GO Bonds, which were originally issued to finance the expansion of the Eola Branch Library. Also, the debt service for the Series 2012A GO Bonds, issued to finance the main library construction project, will not be abated. The debt service for the 2011 (partial) and 2012A GO Bonds will be part of the library's component of the levy.
The sources of funds that permit this abatement are listed below. Also shown are the sources of funds that supported our debt service abatements in the prior two years.
(See attached table).
IMPACT STATEMENT:
Not Applicable.
RECOMMENDATIONS:
That the City Council approve the attached, proposed ordinance providing for the abatement of 2014 property tax levies for general obligation bond debt service.
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 Authorizing And Providing For The Abatement Of General Obligation Bond Tax Levies, 2014 Tax Levy Extension
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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, the City of Aurora, Illinois, has from time to time adopted ordinances which provide for the issuance of general obligation bonds and annual tax levies to meet the debt service requirements incorporated therein; and
WHEREAS, the bond ordinances have been filed with the offices of the various county clerks; and
WHEREAS, it is the intent of the City of Aurora to abate certain amounts of the tax levies created by the bond ordinances; and
WHEREAS, the City of Aurora does hereby declare that sufficient funds have been designated as available to provide for the abatement of a portion of the debt service tax levies.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that the City of Aurora does hereby authorize and approve the abatement of the debt service tax levies set forth as follows for 2014.
BE IT FURTHER ORDAINED THAT: The Mayor and City Council of the City of Aurora, Illinois, authorize and direct the City Treasurer and City Clerk of the City of Aurora, Illinois, to file a certified copy of this Ordinance with the offices of the various County Clerks, thereby authorizing the County Clerk to abate the debt service tax levies in the amounts set forth above.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
____________________________ __________________________
City Clerk Mayor