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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: December 4, 2020
SUBJECT:
An Ordinance Authorizing and Providing for the Abatement of General Obligation Bond Tax Levies, 2020 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 2020 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 2020 tax levy year (taxes payable in 2021), 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 $7,353,063.82. This amount is higher than in previous years due to the new process for paying the Library Bond Debt Service. The debt service for the library's portion of the Series 2011 GO Bonds will be abated but will be included in the property tax levy of the newly created Library District. 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 be abated. The debt service for the 2011 (partial) and 2012A GO Bonds will be part of the library district of the levy.
Also attached is a copy of the Library Tax Levy for 2020. Each year the City will w...
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