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TO: Mayor Irvin and City Council
FROM: Martin Lyons
Chief Financial Officer/City Treasurer
DATE: December 8, 2020
SUBJECT:
Intergovernmental Agreement with the Aurora Public Library District pertaining to the payment of outstanding library bonds.
PURPOSE:
The purpose of this IGA is threefold: to avoid double taxation of City residents for bond debt retirement for bonds issued for Library purposes (the Library Bonds); to confirm that, prospectively, the Aurora Public Library District has full responsibility for the levy of real estate taxes to retire the Library Bonds pursuant to a Final Judgment Order (Court Order) entered June 5, 2020; to confirm the intent of the City and the Library District that the County
Clerks extend real estate taxes to retire the Library Bonds as part of the Library District's Corporate Fund/General Fund tax levy.
BACKGROUND:
Until July 1, 2020, the Aurora Public Library was operated as an extension of the City under the Illinois Local Library Act. In 2011 and 2012, the City issued certain bonds for library purposes. In 2020, the Library converted to a local library district under the Public Library District Act of 1991 becoming a separate unit of local government from the City and acquiring its own taxing authority for library purposes. The Library Bonds, however remains obligations of the City, though the conversion contemplated that the Library District would levy sufficient real estate property taxes to retire the bonds on schedule.
DISCUSSION:
The City (contractually) and the Library District (pursuant to Court Order) currently have the obligation to levy for the library bonds - however, this obligation will result in double taxation if the City does not abate its levy for the bonds. To that end, the agreement contemplates that annually upon payment of the bonds by the Library District, the City will abate its levy for the same bonds.
IMPACT STATEMENT:
Approval of this IGA will eliminate the possibility of double...
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