08-280 Resolution No. 08-280
RESOLUTION
ESTIMATING AMOUNT NECESSARY TO BE RAISED BY
TAXATION FOR THE YEAR 2008 UPON TAXABLE PROPERTY
IN THE CITY OF ELGIN
WHEREAS, the Truth in Taxation Law at 35 ELCS 200/18-55, et seq.,provides in part that
prior to the adoption of its aggregate levy,hereinafter referred tO as"levy",the corporate authority of
each taxing district shall determine the amounts of money, Occlusive of any portion of that levy
attributable to costs of conducting an election required by the general election law, hereinafter
referred to as "Election Costs" estimated to be necessary to be raised by taxation for that year upon
the taxable property in its district; and
WHEREAS, the Truth in Taxation Law further provides in part that if the estimate of the
corporate authority is more than 105%of the amount extended or estimated to be extended,plus any
amount abated by the corporate authority prior to extension, upon the final aggregate levy of the
preceding year, exclusive of Election Costs, the corporate authority shall give public notice of and
hold a public hearing of its intent to adopt an aggregate levy in an amount which is more than 105%
of the amount extended or estimated to be extended upon the final aggregate levy extensions, plus
any amount abated, exclusive of Election Costs, for the preceding year.
NOW, THEREFORE, BE IT RESOLVED BY THE ITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
1. That the city council of the City of Elgin being[the corporate authority of the City of
Elgin hereby determines that the amount of money, exclusive of any portion of the 2008 levy
attributable to Election Costs, estimated to be necessary to be raised by taxation for the year 2008
upon the taxable property in the City of Elgin is in the amount of$50,390,620.
2. That the amount estimated to be necessary to be raised by taxation for the year 2008
upon taxable property in the City of Elgin being more than 105%of the amount of the 2007 property
tax levy, a truth in taxation hearing pursuant to 35 ILCS 200/18-70 shall be held by the city council
of the City of Elgin on Wednesday, December 3, 2008, at 7:00 p.m. in the city council chambers at
city hall at 150 Dexter Court, Elgin, Illinois. The city's fiscil services group director shall cause
notice of such public hearing to be published at a time and in form and manner as required by law.
3. That this resolution shall be in full force and effect upon its passage.
s/ Ed Schock
Ed chock, Mayor
Presented: November 19, 2008
Adopted: November 19, 2008
Vote: Yeas: 5 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
A. . -
November 13, 2008
v a
,
TO: Mayor and Members of the City Council AL \
FROM: Olufemi Folarin. City Manager
Colleen Lavery,Assistant Finance Director
SUBJECT: Truth in Taxation Act Requirements and Budget Schedule
PURPOSE
The purpose of this memorandum is to provide the Mayor 4nd members of City Council with
information regarding public hearing requirements for the Truth in Taxation Act.
RECOMMENDATION
It is recommended that the City Council hold a Truth in Taxation public hearing at 7:00 p.m. on
Wednesday, December 3, 2008.
BACKGROUND
The Truth in Taxation Act (35 ILCS 200/18-55 ET SEQ.) provides procedures for public notice
and hearing on tax levy increases. The statute requires that a special hearing be held should the
proposed property tax levy exceed 105% of the previous year's property tax extension
(excluding election costs). The Kane County Clerk's office and the Elgin Township Assessor
have yet to determine the upcoming year's Equalized Assessed Valuation (EAV). That poses a
problem in accurately determining the levy which in turn det rmines the final tax rate. However,
in order to comply with the Act and assemble numbers for he 2009 Budget, the 2008 property
tax levy and assessed valuation have been estimated below:
2007 Property Tax Levy 2008 Pro I e Tax Lev
Kane County EAV $1,941,643,369 Projected ane Co. EAV $2,038,725,537
Cook County EAV 527,469,514 Projected ook Co. EAV 548,568.295
TOTAL $2,469,112,883 OTAL $2,587,293,832
Property Tax Extension $47,923,548 2008 Proiosed Levy $50,390,620
Truth in Taxation Percentage X 1.05
Truth in Taxation Threshold $50,319,725
�
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Truth in Taxation Act Requirements and Budget Schedule
November 13, 2008
Page 2
Based on the estimate that the 2008 Property Tax Levy vill be 50,390,620ond /ha1dis &reu1rr
than 105% of the 2007 property tax levy, the City will be rcqui ed to hold a Truth in Taxation
Act public hearing.
There are two requirements associated with the public hearing that must be met:
I. The Truth in Taxation Act public hearing canndt coincide with the 2009 Proposed
Budget public hearing.
2. A public notice for the Truth in Taxation Act hearing must appear no more than
14 days and no less than seven days prior to the hearing date.
To adhere to the public notice time frame referenced ahovc^ the recommendation that the City
Council hold a Truth in Taxation public hearing at 7:00 p.m. on Wednesday, December 3, 2008
is being submitted in cojunction with the proposed budget. Eringing forth this recommendation
at the November 19, 2008 meeting would provide staff sufficient time to publish the public
notice for the Truth in Taxation Act hearing if it is to be held On December 3, 2008.
It should be noted that the overall property EAV (Kane and Cook Counties combined) is
estimated to increase 4.79Y6 and the property tax rate is projected to remain constant at $1.92.
The overall levy is estimated to increase 5.1% ($47.92 to $50.39 million). The debt service
portion of the 2008 levy (2009 Budget) is approximately $3,296,000 lower than the previous
year and represents a 33.65% decrease. The decrease is due in large part to the 2007 Kane
County EAV (2008 Budget) increasing 12.7096 compared to the projected increase of 5.0%.
This 7.70% additional increase in 2007 EAV reduced the amount of debt that needed to be
abated in 2008 to arrive at the $1.92 tax rate. A portion f the additional debt service levy
proceeds ($2,515,000) collected in 2008 is being uscd to pay down the General Obligation
Corporate Purpose Bonds, Series 2008A.
COMMUNITY GROUPS/INTERESTED PERSONS COITACTED
Kane County and Cook County Clerk's offices
FINANCIAL IMPACT
The proposed property tax levy provides revenues utilized n the 2009 Budget for the General,
Police Pension, Fire Pension, IMRF Pension and Bond/Irterest Funds. Given an estimated
4.79Y6 increase in the equalized assessed valuation, the overall levy is expected to total
$50,390,620.
LEGAL IMPACT
A publication notice for the public hearing must be provided as required in the Truth in Taxation
law. The public hearing must also be constructed in accordance with such statute.
Truth in Taxation Act Requirements and Budget Schedule
November 3, 2008
Page 3
ALTERNATIVES
None
Respectfully submitted for Council consideration.
JRN/mlm