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T13-96 (2) Ordinance No . T13-96 AN ORDINANCE PROVIDING FOR A SENIOR CITIZEN PROPERTY TAX PROGRAM BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That there is hereby established a $200 .00 senior citizen property tax refund of the 1996 real property taxes levied by and collected for the City of Elgin. Section 2 . That to qualify for the $200 . 00 senior citizen property tax refund the owner(s) of the subject property must have qualified and obtained for the 1996 tax year the Senior Citizens Homestead Exemption in accordance with 35 ILCS 200/15-170, as amended. Section 3 . That senior citizens qualified to receive the $200 . 00 tax refund shall be identified through county property tax records for the 1996 tax year. The Director of Finance is directed to work with the appropriate county officials to determine the most expeditious method for processing the property tax refund to the qualified senior citizens . Section 4 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. Section 5 . That this ordinance shall be in full force and effect from and after its passage and publication in the manner provided by law. s/ Kevin Kelly Kevin Kelly, Mayor Presented: September 11 , 1996 Passed: September 11, 1996 Vote: Yeas 6 Nays 1 Recorded: September 12, 1996 Published: September 12 , 1996 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk 4 -I COMMITTEE OF THE WHOLE MEETING AUGUST 21, 1996 The special Committee of the Whole meeting was called to order by Mayor Kelly at 6 : 00 p.m. in the Council Conference Room. Present: Councilmembers Gavin, Gilliam, McKevitt, Schock, Walters, Yearman, and Mayor Kelly. Absent: None. Continued City Council Early Input for 1997 Budget and 1997-2001 Financial Plan The following items were discussed by the Council with reference to the 1997 budget and 1997-2001 financial plan. Economic Development Initiatives Councilman McKevitt presented a proposal for a $40, 000 grant to the Economic Development Commission of the Elgin Area Chamber of Commerce for the following items : Production of a video showcasing Elgin as a desirable location for business . Purchase of a trade show booth. Establishment of an Internet side and installation of a Geographic Information System (GIS) . In addition to the above items, an annual funding allowance of $10, 000, to be matched by the Chamber, private developers , state funds, and corporations , for the Chamber of Commerce to attend and promote Elgin at selected trade shows . Real Estate Tax Rebate Discussion was held regarding whether to give a $1 million real estate tax rebate to senior citizen homeowners (proposed by Councilmembers Gilliam, McKevitt, Schock, and Walters) or a $3 million real estate tax rebate to all homeowners (proposed by Mayor Kelly) . Mayor Kelly stated that he believes there are sufficient funds available from unprogrammed riverboat revenues and other sources that $3 million could be used to benefit all homeowners rather than just one segment of the population. Councilmembers Gavin and Yearman also expressed their support for including all homeowners in a real estate tax rebate program. Councilman Schock stated that it has long been recognized by other governmental bodies that senior citizens are deserving of a tax break. He stated that Councilmembers making the proposal . Committee of the Whole Meeting August 21, 1996 Page 2 ' did not believe they wanted go beyond designating $1 million for real estate tax rebate because of the limitation of available funds and the number of worthy projects for which funds could be used. Councilman Walters stated that senior citizens did not benefit from the elimination of the vehicle stickers to the same degree as other citizens and this is an attempt to to make up for that. Councilman Gilliam made a motion, seconded by Councilman Schock, to give a $200 rebate to senior citizens 65 years or older who live in their home on January 1, 1997, contingent upon the City receiving riverboat proceeds of $13,275 million. Yeas : Councilmembers Gavin, Gilliam, McKevitt, Schock, Walters, and Mayor Kelly. Nays : Councilwoman Yearman. Councilwoman Yearman stated that the reason she voted "no" was because she sees no formula for the $200 rebate and she believes we can come up with a way for everyone to receive a rebate. Councilman Gavin made a motion to take the unprogrammed second six months of riverboat proceeds, expected to be approximately $1 . 1 million, and the $328, 000 which is programmed for general fund cash reserves and do a property tax cut for the rest of the City. The motion died for lack of a second. Reconstruction of McLean Boulevard from Wing Street to Big Timber Road Councilman Schock requested that staff provide an estimate for the cost of engineering the aforementioned project. City Manager Helwig stated that the staff is recommending that engineering be done in 1997 and construction in 1998 . Recreation Center Feasibility Assessment Proposal Councilman McKevitt presented a proposal to augment the information contained in the previously completed Recreation Center Needs Assessment. Said study would include various options and the costs of each, whether it would be self-supporting, whether there would be a conflict with existing facilities, etc. Discussion also included other suggestions regarding recreational needs and possible sites and facilities including purchasing the Besinger property east of Randall Road and south of Highland Avenue for a park, using the gymnasium at the Elgin Mental Health Center, adding an indoor pool to the plans for a new golf course and club house at the Sports Complex, proceeding with plans for a park in the Randall Ridge subdivision, and a facility for outside performances . Example ('ssessment With General r f Homestead, Senior Homestead,and Senior 1\1) Assessment Freeze Exemptions With Exemption Without Exemption Equalized Assessed Value $43,500H O III E O W N E R Base yr.EAV - 42,500 Amount. Exemption 1,000 EXEMPTIONS Freeze 1,000 Equalized Assessed Value 43,500 43,500 Assessment.Freeze - 1,000 - 0 General.Homestead - 3,500 - 0 Exemption t f Homestead Exemption - 2.000 - 0 Base Year Assessment 37,000 43,500 EXEMPTIONS AVAILABLE Estimated Tax Rate X .078 X .07$ Tax Dollars Due S 2,886 S 3,393 You pay taxes based on the base year assessment of$37,000. • Senior Citizen Real Estate :•��,,eouyti.. Tax Deferral Program ��.. 1=°ads u u J `�t n,is. What Is This Program? °re-nv� • This program allows qualified senior citizens to defer part or all of the property taxes on their personal residence. It is a form of a loan with a six percent interest rate,which is to be repaid after the taxpayer's death or at the time the property is sold. How Do I Apply For This Program? Application and information for this program must be Kane County obtained at the Kane County Collector/Treasurer SSupervisor of Assessments Office,719 S. Batavia Ave.,Geneva,IL 60134,after t January 1,of each year,and must be filed with their to 719 Batavia Ave. office before March 1,of each year. m N Geneva, IL 60134 ' The County Collector phone number is c o (708) 208-3818 (708)232-3565 6, v N a ia m6 S.mld;O°o taR^ tnicc7^u. General Homestead How Do I Qualify For This Exemption? "Those who qualify for a Senior Citizens Homestead Exemption in accordance with Section Exemption You do not need to fill out an application. Your 15-170 of the Property Tax Code(35ILCS 200/15- Township Assessor will certify the improvement for 170) may also qualify for the real estate tax What Does This Exemption Do? exemption to our office. deferral under the Senior Citizens Real Estate Tax Deferral Act(320 1LCS 30/1 et seq.).For further This exemption reduces$3,500 off of the equalized information or an application contact the Kane E i Senor Citizen Exemption County Collector at(708)232-3565. assessment causing you to pay taxes based on thep lower assessment. What Does This Exemption Do? Senior Citizen Assessment How Do I Qualify For This Exemption? This exemption takes$2,000 off of the equalized Freeze You must be owner of record or have equitable assessment,causing you to pay taxes based on the interest of the parcel on January 1, of the assessment. lower assessment. What Does This Exemption Do? year. How Do I Qualify For This Exemption? This exemption freezes your assessment at a base year, You must reside there on January 1, of the assessment causing your assessment not to increase. This does year. You must fill out an application,providing a copy of not freeze your taxes;only your assessment. your proof of age and a copy of ownership of the You should only have to apply one time, as long as parcel. ownership/residency remains the same. How Do I Qualify For This Exemption? You must be sixty five years of age,or older within the assessment year. You must meet the same qualifications as the Senior Example Of Assessment With Exemption. You must be owner of record or have equitable Citizen Exemption. Equalized assessment $43,500 interest of the parcel on January 1, of the assessment Your gross household income must be$35,000 or less -General Homestead Exemption $3.500 year Net valuation $40,000 for the prior years income. You must reside there on January 1,of the assessment You must submit your application every year. After You pay taxes based on the lower assessment of year. the first year you are approved,you will be sent the $40,000. i After initial application is approved,you must return a application automatically in the spring. Certificate of Status card each year. These cards are You must have the application in on or before July 1, Home Improvement mailed out on or before March every year. of each year. Exemption Example Of Assessment With Exemptions. An example of the Assessment Freeze Exemption, What Does This Exemption Do? including the General Homestead and Senior Equalized assessment $43,500 Homestead Exemption,appear on the following page. If you add improvements to your home that are - General Homestead Exemption - 3,500 increased by your Township Assessor,this exemption - Senior Homestead Exemption - 2.000 allows you not to be assessed for the improvement,up Net valuation $38,000 to$10,000 assessed for four years. After the four years,the improvement will be assessed and added to You pay taxes based on the lower assessment of the tax roll. $38,000. Committee of the Whole Meeting July 24 , 1996 Page 3 Request for Fire Lane Designation from Jewel on Larkin Avenue Councilman McKevitt made a motion, seconded by Councilwoman Yearman, to approve the request for the proposed fire lane. Yeas : Councilmembers Gavin, McKevitt, Schock, Walters, Yearman and Mayor Kelly. Nays : None. Request for Fire Lane Designation from Jewel on Summit Street Councilman McKevitt made a motion, seconded by Councilman Gavin, to approve the request for the proposed fire lane. Yeas : Councilmembers Gavin, McKevitt, Schock, Walters, Yearman and Mayor Kelly. Nays : None. Acceptance of Badger Meter, Inc. Proposal to Resolve Defective Battery Issue Councilman Walters made a motion, seconded by Councilman McKevitt, to accept the proposal from Badger Meter, Inc. as outlined in their letter dated July 17, 1996, to resolve the issue of premature failure of the batteries powering the AMR system meters . Yeas : Councilmembers Gavin, McKevitt, Schock, Walters, Yearman and Mayor Kelly. Nays : None. 1996 Fine Arts Festival Free Parking Request Councilman Gavin made a motion, seconded by Councilwoman Yearman, to provide free parking at the Spring Street parking deck and the Civic Center parking lot during the Fine Arts Festival on Saturday, August 24, 1996 . Yeas : Councilmembers Gavin, McKevitt, Schock, Walters, Yearman and Mayor Kelly. Nays : None. Senior Citizen Property Tax Rebate Discussion was held regarding the proposal of Councilmembers Gilliam, McKevitt, Schock, and Walters to use $1 million unbudgeted riverboat proceeds to give homeowners who are 65 years or older a real estate tax rebate in the amount of $200 . Councilman Walters stated that the additional $1 million has already been colleted, and therefore they feel that this is a safe amount to consider using for tax relief . It would be reviewed on an annual basis . Mayor Kelly stated that he believes the City can afford to provide a higher level of tax relief . He suggests giving real estate tax relief to all homeowners . He estimated that using $2 million would give each homeowner approximately $119 and using $3 million would given each homeowner approximately $179 . Councilwoman Yearman stated that she wants to assist senior citizens, but believes their income should be considered rather than simply giving the rebate to all senior citizens . She also believes there will be an outcry of discrimination if the rebate Committee of the Whole Meeting July 24 , 1996 Page 4 is only for senior citizens . Councilman Gavin stated that he also also supports some type of means test and believes it' s not fair to leave a group of citizens out of participating in this windfall . Councilman McKevitt stated that he is amenable to considering using an amount above the revenue budgeted for riverboat proceeds as along as it is done on an annual renewal basis and is after the revenue has been received. Adjournment Councilwoman Yearman made a motion, seconded by Councilman Gavin, to adjourn and go into Executive Session for the purpose of discussing the following matters : Appointments to Boards and Commissions and other Public Offices - exempt under Section 120/2 (c) ( 3) of Open Meetings Act Workers ' Compensation Claim - exempt as pending litigation under Section 120/2 (c) ( 11) of Open Meetings Act Purchase of Property (setting price) - exempt under Section 120/2 (c) ( 6) of Open Meetings Act Yeas : Councilmembers Gavin, McKevitt, Schock, Walters, Yearman and Mayor Kelly. Nays : None. The meeting adjourned at 7 : 38 p.m. August 14, 1996 Dolonna Mecum, City Clerk Date Approved