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Home My WebLink AboutT10-84 Ordinance No. T10-84 AN ORDINANCE ADOPTING THE 1985 BUDGET IN LIEU OF PASSAGE OF AN APPROPRIATION ORDINANCE WHEREAS, the City Council of the City of Elgin has provided for the preparation and adoption of an annual budget in lieu of passage of an appropriation ordinance for the fiscal year 1985; and WHEREAS, a tentative annual budget has been prepared, notice given and a tentative annual budget made available for inspection for at least ten days; and WHEREAS, the City Council of the City of Elgin, Illinois has conducted a public hearing on the tentative annual budget; and WHEREAS, the City Council of the City of Elgin, Illinois, has examined said annual budget and has heard all persons appearing and desiring to be heard concering said annual budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That the tentative annual budget heretofore prepared by the budget director and placed on file as required by the statutes of the State of Illinois is hereby adopted in lieu of the passage of an appropriation ordinance for the fiscal year 1985 with the following amendments: Proposed Amended Increase Budget Budget (Decrease) 010 - GENERAL FUND Means of Financing: 4019 Current Property Tax Receipts $4,621 ,315 $4,623,165 $ 1 ,850 678 Cable TV Franchise 80,000 130,000 50,000 $4,701 ,315 $4,753,165 $ 51 ,850 Expenditures: 011 Mayor and City Council 700 Salaries and Wages $ 9,000 $ 40,815 $ 31 ,815 7051 Pension Contrib. - IMRF - 4,470 4,470 7054 Pension Contrib. - FICA 635 635 - 707 Insurance Charges 14,615 17,250 2,635 710 Office Supplies 1 ,985 3,900 1 ,915 720 General Operating Supplies 75 75 - 795 Miscellaneous Supplies 75 75 - 820 Office Services 8,800 13,335 4,535 • Proposed Amended Increase Budget Budget (Decrease) 011 Mayor and City Council (contd.) 825 Postage, UPS, Etc. $ 545 $ 1 ,765 $ 1 ,220 830 Transportation, Conferences 11 ,900 12,300 400 835 Training Expense 35 135 100 850 Repair and Maint. Services - 50 50 960 Capital Replacements - 900 900 970 Capital Additions - 1 ,025 1 ,025 015 Legal Department 960 Capital Replacements $ - $ 900 $ 900 019 Boards and Commissions 9532 Economic Develop. Comm. $ 33,500 $ 21 ,200 $ (12,300) 9539 Neighborhood Housing Serv. - 13,000 13,000 021 City Clerk 700 Salaries and Wages $ 31 ,815 $ - $ (31 ,815) 7051 Pension Contributions 4,470 - (4,470) 707 Insurance Charges 2,635 - (2,635) 710 Office Supplies 1 ,915 - ( 1 ,915) 820 Office Services 4,535 - (4,535) 825 Postage, UPS, Etc. 1 ,220 _ ( 1 ,220) 830 Transportation, Conferences 400 (400) 835 Training Expense 100 - ( 100) 850 Repair and Maint. Services 50 - (50) 970 Capital Additions 675 - (675) 050 Police Department 700 Salaries and Wages $3,916,810 $3,921 ,810 $ 5,000 076 Public Works - Street Division 980 Major Repairs $ 40,000 $ 50,000 $ 10,000 089 Public Property and Recreation - Hemmens Building 970 Capital Additions $ 6,810 $ 16,810 $ 10,000 190 Non-Departmental 913 Transfer to Imprvt. Fund .$ 557,500 $ 581 ,500 $ 24,000 $4,650,100 $4,701 ,950 $ 51 ,850 240 - SPRING STREET PARKING DISTRICT Means of Financing: 4019 Current Property Tax Receipts $ 200,000 $ 25,000 $ ( 175,000) Proposed Amended Increase Budget Budget (Decrease) Expenditures: 9141 Transfer to Corporate Bond Fd. $ - $ 124,625 $ 124,625 9122 Transfer to Parking 299,625 - (299,625) $ 299,625 $ 124,625 $ (175,000) 300 - Corporate Bond Fund Means of Financing: 4019 Current Property Tax $1 ,015,490 $1 ,190,490 $ 175,000 6641 Transfer From SSA II - 124,625 124,625 $1 ,015,490 $1 ,315,115 $ 299,625 Expenditures: 9013 Principal - 1980 Parking $ - $ 100,000 $ 100,000 9023 Interest - 1980 Parking - 199,625 _ 199,625 $ - $ 299,625 $ 299,625 385 - Capital Improvements Fund Revenues: 6695 Transfer From General Fund $ 452,500 $ 476,500 $ 24,000 Expenditures: 970 Capital Additions $ 155,000 $ 209,000 $ 54,000 980 Major Repairs 656,900 626,900 (30,000) $ 811 ,900 $ 835,900 $ 24,000 455 - SPRING STREET PARKING OPERATING FUND Revenues: 6641 Transfer From SSA I ) $ 299,625 $ - $ (299,625) Expenditures: 903 G.O. Principal - 1980 Parking $ 100,000 $ - $ (100,000) 903 G.O. Interest - 1980 Parking 199,625 - ( 199,625) $ 299,625 $ - $ (299,625) Section 2. That the budget director is hereby authorized and directed to cause to be prepared and published the 1984 annual budget with the aforementioned amendments. Section 3. That this ordinance shall be in full force and effect from and after January 1 , 1985. s/Richard L. Verbic Richard L. Verbic, Mayor Presented: December 20, 1984 Passed: December 20, 1984 Vote: Yeas 7 Nays 0 Recorded: Published: Attest: s/Marie Yearman Marie Yearman, City Clerk r F August 6, 1984 MEMORANDUM TO: Robert Malm, Interim City Manager FROM: James Bolerjack, Finance Director RE: 1984 Tax Levy Ordinance To begin the process of preparing and adopting the 1984 Tax Levy Ordinance, the City Council must establish tax amounts necessary to finance 1985 operations. In addition, the "Truth in Taxation Act" requirements must be met, which includes: I) publication in the newspaper and public hearing if current tax levy is over 105% of the previous year, or 2) passage of a resolution that the current tax levy will not exceed 105% of the previous year. Truth and taxation requirements exclude tax levies for general obligation debt. An overview is provided this year to make it easier for the City Council to look at the tax levies. First, information is provided in Schedule I with expenditure projections, revenue and available cash projections, and net tax levy requirements. Secondly, "Truth in Taxation" information along with total tax projections are shown in Schedule 2. Finally, the respective resolutions to comply with "Truth in Taxation" are provided as Schedules 3 and 4. These resolutions are also included on the regular agenda to meet the LP** public hearing time limits. Publication should be included in the newspaper the week of 't August 13th for a public hearing on August 27, 1984. A brief review of each fund listed on Schedules I and 2 is included in the following paragraphs. General Fund The General Fund provides the income to render most services to the citizens of Elgin. Police and fire services, refuse collection, street maintenance, parks and recreation services are to name a few. These services are financed by various revenue sources, including property taxes. Expenditures for the General Fund are projected to increase only 3.7% in 1985. If services are maintained at the same levels, this should be adequate. However, any reductions may reduce services to an unacceptable level. Revenues, other than property taxes, are projected to increase from $11,200,160 to $11,284,350 or only 0.8% in 1985. This includes an increase of $200,000 in sales taxes, or a much lesser increase than 1983 and projected 1984 because of the expected slow down in the economy. The 1985 state income tax is projected to decline $150,000 because state income tax rates resumed 1982 levels on July 1, 1 984, although this source is projected at $38,000 more than 1982. Most other revenue sources are projecting small increases with some, such as sales of reports and investment income, expected to decline. The "Freedom of Information Act" passed by the state legislature in 1983 is causing a $21,000 revenue decrease from police and fire reports. Investment income will decline $52,365 because unencumbered cash is reduced $412,860 during 1984 and expected to decline another $900,000 during 1985. atm.- 9 Robert Malm 1984 Tax Levy Ordinance August 6, 1984 Page 2 Property tax provides the balancing amount between expenditures and other financing sources for a net of $4,308,555. This amount then becomes the base tax levy with others to be added for total financing requirements. A true contingency of $170,000 is added to pay for emergencies. While this amount is less than potential emergencies, it does provide a reasonable level without being excessive. Parking losses of $185,000 are the net effect of providing free parking in downtown Elgin. The total impact is $385,000 less the amount provided by the Special Service Area 4#2 property taxes of $200,000 for a $185,000 net requirement from General Property Taxes. If the City Council decides other courses of action later this year, the excess taxes can be abated at that time. 1 want to point out that the Elgin-O'Hare Business Center debt payment of $126,125 is excluded from the General Fund and included as part of the debt service tax levy. However, if it is included in the General Fund, the "Truth in Taxation" provisions for a public hearing then become necessary. Public Benefit Fund Public Benefit property taxes of $280,000 are needed to pay the City's share of Area 1 special assessment. IMRF Pension Fund IMRF Pension Fund property taxes of $575,000 are needed to pay the City's share of non-uniformed personnel pension costs. Police Pension Fund The Police Pension Fund property tax levy of $265,000 is recommended by the City's actuaries. In way of comparison, the State of Illinois - Department of Insurance recommended $713,142 without considering the City's high yielding investments. Fire Pension Fund The Fire Pension Fund property tax levy of $355,000 is recommended by the City's actuaries. In way of comparison, the State of Illinois - Department of Insurance recommended $712,795 without considering the City's high yielding investments. Corporate Bond Fund The Corporate Bond Fund accounts for the debt service payments for general obligation bonds not issued for enterprise purposes. Debt service for existing bonds at a cost of $1,493,462 is projected for abatements of $760,621 with the remaining $736,842 paid from property taxes. In addition, the 1984 G.O. Bond issue is expected to cost about $297,556 in 1985. Special Service Area ##2 Tax levy requirements for Special Service Area #2 must be levied separately to pay a portion of the debt service for the Spring Street Parking Deck. To protect the Robert Maim 1984 Tax Levy Ordinance August 6, 1984 Page 3 integrity of the G.O. Bonds and the operation of the Spring Street Deck, it is necessary to increase the annaul tax levy of $150,000 for 1981 thru 1983 to $200,000 in 1984 for a 33.3% increase. Thus, a "Truth in Taxation" publication and hearing is required. Conclusion General property taxes are expected to increase 2.3% in 1985. Depending on what happens with the parking system experiment, the increase could be less, but this will be decided later in 1984. For "Truth in Taxation" purposes, general property taxes will increase only 4.9% as presented so no publication nor hearing is required. This resolution is included as Schedule 3. Special Service Area /12 property taxes are to increase 33.3%. As a result, the "Truth in Taxation" resolution is shown as Schedule 4 with a public hearing required on August 27, 1984. JHB/daw Attachments r r Schedule 1 City of Elgin Revenue and Expenditure Projections For 1984 and 1985 1984 Estimates/ 1985 Projections 1984 1984 1985 Increase Budget Estimates Projections (Decrease) General Fund Expenditures $15,734,550 $15,956,760 $16,544,600 3.7% Revenues (w/o Property Taxes) $10,735,040 $11 ,200,160 $11 ,284,350 Excess Cash - Jan. 1 982,740 1 ,364,555 951 ,695 Means of Financing $11 ,717,780 $12,564,715 $12,236,045 (2.6%) Property Tax Base Levy $ 4,016,770 $ 3,392,045 $ 4,308,555 Contingency 326,970 951 ,695 170,000 Parking Losses - - 185,000 Total Property Tax - Net $ 4,343,740 $ 4,343,740 $ 4,663,555 7.4% ublic Benefit Expenditures $ 315,450 $ 315,450 $ 299,020 (5.2%) Revenues (w/o Property Taxes) $ 90,450 $ 90,450 $ 19,020 (79.0%) Property Tax - Net $ 225,000 $ 225,000 $ 280,000 24.4% IMRF Pension Fund Expenditures $ 1 ,433,060 $ 1 ,433,060 $ 1 ,504,715 5.0% Revenues (w/o Property Taxes) $ 858,060 $ 858,060 $ 929,715 8.4% Property Tax - Net $ 575,000 $ 575,000 $ 575,000 -0- % Police Pension Fund Expenditures $ 1 ,485, 150 $ 1 ,485,150 $ 1 ,688,900 13.7% Revenues $ 1 ,278,150 $ 1 ,278,150 $ 1 ,423,900 11.4% Property Tax - Net $ 207,000 $ 207,000 $ 265,000 28.0% Schedule 1 City of Elgin Revenue and Expenditure Projections For 1984 and 1985 Page 2 1984 Estimates/ 1985 Projections 1984 1984 1985 Increase Budget Estimates Projections (Decrease) Fire Pension Fund Expenditures $ 1 ,760,700 $ 1 ,760,700 $ 1 ,792,500 1.8% Revenues (w/o Property Taxes) $ 1 ,260,700 $ 1 ,260,700 $ 1 ,437,500 14.0% Property Tax - Net $ 500,000 $ 500,000 $ 355,000 (29.0%) Corporate Bond Fund Expenditures $ 1 ,454,245 $ 1 ,454,245 $ 1 ,497,463 1984 G.O. Bonds - - 297,556 ( 1 ) $ 1 ,454,245 $ 1 ,454,245 $ 1,795,019 23.4% Revenues (w/o Property Taxes) $ 387,790 $ 391 ,311 $ 760,621 94.4% Property Tax - Net $ 1 ,066,455 $ 1 ,062,934 $ 1 ,034,398 (2.7%) Special Service Area #2 Expenditures $407,000 $ 407,025 $ 410,900 1.0% Revenues (w/o Property Taxes) 36,500 39,000 35,000 Available Cash 220,500 218,025 175,900 257,000 257,025 210,900 (17.9%) Property Tax - Net $ 150,000 $ 150,000 $ 200,000 33.3% (1 ) The airport incentive payment bond issue is assumed to be paid from Debt Service taxes. Amounts will not be included in debt service for the 1984 Tax Levy Ordinance, but the incentive payment will be automatically levied unless abated with General Fund property taxes. ______________ r Schedule 2 City of Elgin Truth In Taxation Comparisons 1983 and 1984 Tax Levies and Tax Rates Tax Levies 1983 Tax Levy 1984 Tax Levy % Net Tax Gross Tax tax Net Tax Gross Tax Est. Tax Increase Levy Levy Rate Levy Levy Rate (1) (Decrease) GENERAL TAX LEVIES Truth in Taxation Comparison General Fund $4,343,923 $4,387,801 $1.0037 $4,663,555 $4,710,662 $1.0685 (2) 7.4% (2) Public Benefit Fund 225,052 227,325 .0520 280,000 282,828 .0642 24.4% 114F Pension 575,179 580,989 .1329 575,000 580,808 .1317 (0.0) Police Pension 207,307 209,401 .0479 265,000 267,677 .0607 27.8% Fire Pension 500,306 505,360 .1156 355,000 358,586 .0814 (29.0%) Total Truth In Taxation (3) $5,851,767 $5,910,876 $1.3521 $6,138,555 $6,200,561 $1.4065 4.9% (3) Bonds d interest 1,062,934 1,073,671 .2456 1,034,398 1,044,846 .2370 (2) (2.7%) (2) Prior Year Adjustments 95,294 96,257 .0282 - - - - Total All General Tax Levies $7,009,995 $7,080,804 $1.6259 $7,172,953 $7,245,407 $1.6435 2.3% Truth In Taxation Comparison Special Service Area 02 (3) $ 150,003 $ 151,518 $3.0187 $ 200,000 $ 202,020 $3.9612 (4) 33.3% (3) (1) Tax rate is estimated with assessed valuation projected at $440,884.00. (2) Debt Service tax levy is estimated including 1984 G.O. Bonds and it assumes that the airport incentive payment will be paid from debt service rather than General Fund. (3) Truth in Taxation comparison. (4) Special Service Area 02 tax rate is estimated with assessed valuation projected at $5,100,000. Schedule 3 RESOLUTION DETERMINING THAT AMOUNTS OF MONEY ESTIMATED TO BE NECESSARY TO BE RAISED BY TAXATION UPON TAXABLE PROPERTY IN THE CITY OF ELGIN WHEREAS, the Trust in Taxation Act provides that if the ad valorem property tax levy for the current year is estimated to exceed 105% of the extension for the prior year a public hearing shall be held after notice in the manner required by the Act; and WHEREAS, it is necessary and desirable to determine whether the proposed 1984 tax levy is less than 105% of the 1983 property tax levy as extended; and WHEREAS, the City Council of the City of Elgin has reviewed the 1983 property tax levy as extended and the 1984 property tax levy as proposed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: 1. That it hereby finds and determines that the 1983 ad valorem property tax levy excluding debt services as extended was $5,910,876 against taxable property in the City of Elgin. 2. That it hereby finds and determines that the amounts of money extended estimated to be necessary to be raised by ad valorem taxation upon taxable property in the City of Elgin excluding debt service for the year 1984 is $6,200,561. 3. That it hereby finds and determines that the amounts of money estimated to be necessary to be raised by taxation upon taxable property for the year 1984 is not in excess of 105% of the amount of ad valorem property tax extended for the year 1983 against taxable property in the City of Elgin. Richard L. Verbic, Mayor Presented: August 13, 1984 Adopted: Vote: Yeas Nays Recorded: Attest: Marie Yearman, City Clerk Schedule 4 RESOLUTION DETERMINING THAT AMOUNTS OF MONEY ESTIMATED TO BE NECESSARY BY SPECIAL SERVICE AREA NUMBER TWO, CITY OF ELGIN TO BE RAISED BY TAXATION UPON TAXABLE PROPERTY IN SPECIAL SERVICE AREA NUMBER TWO WHEREAS, the Truth in Taxation Act, III. Rev. Stat., 1981, Ch. 120, par. 861, et seq., provides that if the ad valorem property tax levy for the current year is estimated to exceed 105% of the extension of ad valorem property tax for the prior year a public hearing shall be held after notice in the manner required by the Act; and WHEREAS, Special Service Area Number Two, City of Elgin, is a taxing district within the meaning of the Truth in Taxation Act of 1981; and WHEREAS, the City Council of the City of Elgin is the governing body of Special Service Area Number Two; and WHEREAS, the City Council of the City of Elgin has reviewed the 1983 ad valorem property tax levy as extended and the 1 984 property tax as proposed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: I. That it hereby finds and determines that the 1983 ad valorem property tax levy /". as extended was $151,518 against taxable property in Special Service Area Number Two. 2. That it hereby finds and determines that the amount of money extended estimated to be necessary to be raised by taxation upon taxable property in Special Service Area Number Two for the year 1984 is $202,020 and that said amount in in excess of 105% of the amount extended upon the levy for 1983. 3. That pursuant to the provisions of the Truth in Taxation Act there shall be a public hearing on the estimated tax levy of $202,020 for Special Service Area Number Two on August 27, 1984 at 8:00 p.m. in the City Council Chambers located at 150 Dexter Court, Elgin, Illinois. 4. That the City Clerk of the City of Elgin is hereby directed to publish notice of said public hearing in the manner prescribed by the Truth in Taxation Act. Richard L. Verbic, Mayor Presented: August 13, 1984 Adopted: Vote: Yeas Nays Recorded: Attest: r Marie Yearman, City Clerk