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TO: Mayor Richard C. Irvin
FROM: Christopher A. Minick, Chief Financial Officer/City Treasurer
DATE: November 27, 2023
SUBJECT:
An Ordinance Authorizing and Providing for the Abatement of General Obligation Bond Tax Levies, 2023 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 2023 property tax levies for general obligation (GO) bond debt service.
BACKGROUND:
The city currently has GO bonds outstanding from seven 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 2023 tax levy year (taxes payable in 2024), 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 $12,312,954.82. This amount is higher than in previous years due to the new process for paying the Library Bond Debt Service and the issuance of a 2023 General Obligation Bond. The debt service for the Series 2012A GO Bonds, issued to finance the main library construction project, will be abated. The debt service for the 2012A GO Bonds will be part of the library district of the levy.
Also attached is a copy of the Library Tax Levy for 2023. Each year the City will work with the Library to ensure that the Library adopts their tax levy to include the above bond payments. This process was outlined in the Intergovernmental Agreement regarding the Library conversion to an independent district. Once receiving this levy, the City can then safely proceed with aba...
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