City Council Planning Sessions

1. City Council Planning Agenda Documents: 2015-11-23 CITY COUNCIL PLANNING AGENDA.PDF 2. City Council Planning Tax Levy Ps04 Documents: 2015-11-23 CITY COUNCIL PLANNING TAX LEVY PS04.PDF 3. City Council Planning Minutes Documents: 2015-11-23 CITY COUNCIL PLANNING MINUTES.PDF  WHEATON CITY COUNCIL PLANNING SESSION WHEATON CITY HALL – COUNCIL CHAMBERS 303 W. WESLEY STREET, WHEATON, ILLINOIS MONDAY, NOVEMBER 23, 2015 - 7:00 P.M. AGENDA I. Call to Order II. Approval of Minutes – October 26, 2015 III. Public Comment IV. Tax Levy V. City Council/Staff Comments VI. Closed Session: Personnel – Employment Contract 5ILCS 120/2(c)(1) VII. Adjournment During the Public Comment portion of the agenda, the presiding officer shall recognize any person requesting to be heard on any of the planning session agenda items only. Persons speaking during Public Comment shall not speak longer than three (3) minutes and shall be permitted to speak only once. Visitors must remain quiet and not engage in behavior that interferes with the Planning Session. The presiding officer may, or upon a majority vote of the council, request any visitor who violates any provision of this paragraph to leave the council chambers, and such visitor shall thereupon leave. Any person providing public comment shall address the presiding officer only and shall not proceed with remarks until recognized. When recognized, the person shall state his or her name and address. Cross floor discussions are prohibited. If a member of the City Council has questions of any person who has provided public comment, that person may address the specific question.  Donald B. Rose City Manager \& TO: Honorable Mayor & City Council DATE: November 19, 2015 SUBJECT: 2015 Property Tax Levy Prior to the adoption of the annual tax levy in December, an aggregate levy estimate must be identified twenty days prior to the adoption of the tax levy ordinance. At our November 23 Planning Session, we will discuss the estimated levy for the City. Due to the uncertainty created by the State of Illinois, decision making relating to the 2015 levy has been difficult, Under normal circumstances, I would recommend keeping the levy at the same level as last year which would have been the sixth year in a row that the City has not increased its levy. Unfortunately, we are not operating under normal circumstances, and the Finance Director and I have chosen to present you with several alternatives for your consideration and discussion at our Planning Session. In considering this year’s levy, there are a number of factors which the City Council needs to consider. These factors are as follows: • Property Tax Freeze The likelihood of at least a two year property tax freeze is high. If - a two year property tax freeze is implemented by the State, the next time that the levy could be increased may be levy year 2018 for taxes collectable in 2019. Such an action by the State would freeze 31% of our General Fund revenue at 2015 levy year levels. Unfortunately, the scope of a property tax freeze is not known at this point in time. Early drafts of such legislation included a number of “exceptions” which would allow property taxes to be raised for specifically identified purposes. Although a property tax freeze does not solve any of the State’s budgetary/revenue/ expenditure problems, it appears highly likely that some type of property tax freeze will be enacted. • Reduction of LGDF Receipts Governor Rauner has proposed reducing the LGDF - monies received by municipalities to the 50% level. This would result in a loss of $2,600,000 if such legislation were to pass. More recently, the Governor’s budget director suggested to a legislative committee that eliminating all of LGDF would greatly assist in helping the State meet its social service obligations.  Although we do not know what the final decision relating to LGDF will be, it seems to me that the General Assembly will need to take at least some of the LGDF distribution for their own needs. LGDF, in total, represents 13% of General Fund revenue. Flat/Negative Trend of Other Revenues At the current time, the Finance Department - is projecting that sales tax revenues will end the year down $80,000 from our original budget estimate. Likewise, electric utility and telecom utility taxes are projected to be down $84,000 and $64,000 from projections (total $228,000). These projected losses in “major revenue” categories are offset in the current fiscal year by income tax (LGDF) projected to be $364,000 higher than expected and transfer tax revenues $382,000 higher than expected. The rise in the amount of transfer tax revenue is due to two specific, extraordinary sales transactions which occurred this year. While income tax receipts are running higher than projected, the possibility of losing all or a portion of the income tax revenue remains concerning. Overall, our major revenue sources in the General Fund, with the exception of income tax money, are relatively flat. • Revenue/Expenditure Options If a property tax freeze is enacted and all or a portion - of LGDF is taken by the State for their own use, the City will be severely limited in its options for dealing with the lost or frozen revenue sources. While our General Fund balance can be used to offset some of the lost revenue as a short term solution, there is only one other current revenue source that would be able to replace this lost revenue. The only other source for additional revenue would be an increase in the home rule sales tax rate or the institution of a limited number of other taxes which the City does not currently levy. All of these additional taxes have been discussed over the past 10 years and, to this point, have not been desirable alternatives for the City Council. On the expenditure side of the equation, expenditure reduction by a significant amount would be difficult due to the personnel and program reductions that occurred in 2007- 2008. Attached to this memorandum is the Finance Director’s memorandum which provides four alternative tax levies for your consideration. The staff would like to review each of these and engage the Council in a discussion of the alternatives and provide whatever assistance we can to you in your determination of the levy that should be presented for formal consideration in December.  Robert R. Lehnharcit Director of FThonce Memorandum To: Donald B. Rose, City Manager Date: November 17, 2015 Subject: 2015 Property Tax Levy — Estimate Due to the uncertainty with the State of Illinois budget with the potential of a property tax freeze for two years and a reduction of at least $2.6 million in income tax revenues to the City, I have calculated four alternative tax levies for the 2015 Property Tax Levy for discussion. The revenues generated from the 2015 property tax levy will be received in fiscal year 201647, Alternative #1: Increase Levy for Police and Fire Pensions 2015 Property Tax Levy 2014 2015 Levy Levy 2015 vs 2014 Actual Estimated Dollar % FY201546 FY2016-17 Change Change General Purpose Levy General Corporate $ 9,146,353.43 $ 9,146,353.43 $ - 0.0% Library $ 3,650,000.00 $ 3,650,000.00 $ - 0.0% Police Pension $ 2,000,982.00 $ 2,378,653.00 $ 377,671.00 18.9% Fire Pension $ 1,010,419.00 $ 1,104,091.00 $ 93,672.00 9.3% Total General Purpose Levy $ 15,807,754.43 $ 16,279,097.43 $ 471,343.00 3.0% Debt Service Levy Debt Service $ 3,024,963.15 $ 3,002,143.76 $ (22,819.39) -0.8% Total General Purpose & Debt Service $ 18,832,717.58 $ 19,281,241.19 $ 448,523.61 2.4% The 2015 tax levy would only include the increases for the police and fire pensions, which would result in a total levy of $19,281,241.19, an increase of $448,523.61 (or 2.4%) from the 2014 tax levy. Page 1 of 3 Alternative #2: No Increase in Total Levy from prior year 2015 Property Tax Levy 2014 2015 Levy Levy 2015 vs 2014 Actual Estimated Dollar % FY 2015-16 FY 2016-17 Change Change aIPuLev General Corporate $ 9,146,353.43 $ 8,697,829.82 $ (448,52361) 4.9% Library $ 3,650,000.00 $ 3,650,000,00 $ 0.0% Police Pension $ 2,000,982.00 $ 2,378,653.00 $ 377,671.00 189% Fire Pension $ 1,010,419.00 $ 1,104,091.00 $ 93,672.00 9.3% Total General Purpose Levy $ 15,807,754.43 $ 15,830,573,82 $ 22,819.39 0.1% erviceLev Debt Service $ 3,024,963.15 $ 3,002,143.76 $ (22,819.39) -0.8% Total General Purpose & Debt Service $ 18,832,717.58 $ 18,832,717.58 $ - 0.0% The 2015 tax levy would include the increases for the police and fire pensions, and decrease General Fund revenues by $448,523.61 for next fiscal year using fund balance reserves. The potential downfall is if the State freezes the property tax levy and/or reduces income tax distributions, the City would need to rely heavily on other revenues to be able to make up the difference next year and the following years. Alternative #3: Increase Levy for Pensions and provide $300,000 in additional revenue 2015 Property Tax Levy 2014 2015 Levy Levy 2015 vs 2014 Actual Estimated Dollar % FY2015-16 FY2016-17 Change Change lPppejev General Corporate $ 9,146,353.43 $ 9,446,353.43 $ 300,000.00 3.3% Library $ 3,650,000.00 $ 3,650,000.00 $ - 0.0% Police Pension $ 2,000,982.00 $ 2,378,653.00 $ 377,671.00 18.9% Fire Pension $ 1,010,419.00 $ 1,104,091.00 $ 93,672.00 9.3% Total General Purpose Levy $ 15,807,754.43 $ 16,579,097.43 $ 771,343.00 4.9% Debt Service Levy Debt Service $ 3,024,963.15 $ 3,002,143.76 $ (22,819.39) -0.8% Total General Purpose & Debt Service $ 18,832,717.58 $ 19,581,241.19 $ 748,523.61 4.0% The 2015 tax levy would include the increases for the police and fire pensions, and increase General Fund revenues by $300,000 for next fiscal year. If the State freezes the property tax levy and/or reduces Page 2 of 3 income tax distributions, the City will have a higher tax levy to work with going forward. The additional revenue could be dedicated to future pension increases. Alternative #4: Increase Levy for Pensions and provide $500,000 in additional revenue 2015 Property Tax Levy 2014 2015 Levy Levy 2015 vs 2014 Actual Estimated Dollar % FY2015-16 FY2016-1’7 Change Change General Purpose Ley General Corporate $ 9,146,353.43 $ 9,646,353.43 $ 500,000.00 5.5% Library $ 3,650,000.00 $ 3,650,000.00 $ - 0.0% Police Pension $ 2,000,982.00 $ 2,378,653.00 $ 377,671.00 189% Fire Pension $ 1,010,419.00 $ 1,104,091.00 $ 93,672.00 9.3% Total General Purpose Levy $ 15,807,754.43 $ 16,779,097.43 $ 971,343.00 6.1% Debt Service Levy Debt Service $ 3,024,963.15 $ 3,002,143.76 $ (22,819.39) -0.8% Total General Purpose & Debt Service $ 18,832,717.58 $ 19,781,241.19 $ 948,523.61 5.0% The 2015 tax levy would include the increases for the police and fire pensions, and increase General Fund revenues by $500,000 for next fiscal year. Under this alternative, the City would be required to have a Public Hearing (December 14, 2015) on the proposed levy since the General Purpose Levy increase is greater than 5%, as required by State Statute (Truth in Taxation Act). If the State freezes the property tax levy and/or reduces income tax distributions, the City will have a higher tax levy to work with going forward. The additional revenue could be dedicated to future pension increases. Since it appears the State will not be passing legislation within the next month, the City can adopt a tax levy with an increase and abate it at a later date. The deadline to abate the adopted tax levy is by the end of March, 2016. The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. To meet this requirement, the estimated 2015 Property Tax Levy is scheduled for discussion at the November 23, 2015 City Council Planning Session. The 2015 Property Tax Levy Ordinance and Tax Abatement Ordinance are scheduled for the December 7, 2015 City Council Meeting for a first reading. Final adoption will be at the December 21, 2015 City Council Meeting. The 2015 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. Page 3 of3  Robert F?. Lehnhordt Director of FThoncc Memorandum To: Donald B. Rose, City Manager Date: November 17, 2015 Subject: 2015 SSA #2 CBD Parking Enforcement Tax Levy Estimate- Attached are the tax levy and appropriation ordinances for Special Service Area Number Two, which was established in 1983 to provide parking enforcement services within the Central Business District. The ordinance establishing SSA #2 allowed a maximum tax rate of $.30 per $100 of assessed value. The total parking enforcement services budget is $74,305 for fiscal year 2015/16. The 2015 proposed tax levy of $41,700 is set to collect the maximum amount available from the $30 tax rate cap. With an estimated 3% increase in equalized assessed value in SSA #2, the levy would produce a tax rate of $.30 and collect an estimated $40,915.74. 2015 Tax Levy SSA#2 2014 2015 Levy Levy 2015 vs 2014 Levy Actual Estimate Dollar % FY 2015-16 FY 2016-17 Change Change Equalized Assessed Valuation $ 13,241,340 $ 13,638,580 $ 397,240 3.0% Levy Amount $ 39,724.02 $ 41,700.00 $ 1,975,98 5.0% Calculated Tax Rate $ 0.3000 $ 0.3058 $ 0.0058 1.9% Levy Extended Amount - Calculated Tax Rate $ 39,724.02 $ 41,706.78 $ 1,982.76 5.0% Tax Rate Cap $ 0.3000 $ 0.3000 $ - 0.0% Levy Extended Amount Tax Rate Cap - $ 39,724.02 $ 40,915.74 $ 1,191.72 3.0% Page 1 of 2 The foflowing chart illustrates the SSA #2 tax levy for the past five years and the 2015 estimated tax levy. SSA #2 Tax Levy Past 5 Years and 2015 Estimated Requested Tax Actual Levy EAV Tax Tax Rate Tax Tax Year EAV %Change Levy Rate Cap Levy Rate 2010 $13,369,190 -3,9% $43,500.00 $o.3254 $03000 $40,107.57 $0.3000 2011 $13,041,066 -2.5% $42,000.00 $0.3221 $03000 $39,123.20 $03000 2012 $12,980,340 -0.5% $41,000.00 $o.3159 $03000 $38,941.02 $0.3000 2013 $12,859,970 -0.9% $40,850.00 $0,3177 $03000 $38,579.91 $o.3000 2014 $13,241,340 3.0% $40,450.00 $o,3055 $03000 $39,724.02 $0.3000 2015 $13,638,580 3.0% $41,700.00 $03058 $03000 $40,915.74 $03000 The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. To meet this requirement, the estimated 2015 SSA #2 Property Tax Levy is scheduled for discussion at the November 23, 2015 City Council Planning Session. The 2015 SSA #2 Property Tax Levy and Appropriations Ordinance are scheduled for the December 7, 2015 City Council Meeting for a first reading. Final adoption will be at the December 21, 2015 City Council Meeting. The 2015 SSA #2 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. Page 2 of 2  ORDINANCE NO. F- AN ORDINANCE FOR THE LEVY AND ASSESSMENT OF TAXES FOR THE FISCAL YEAR BEGINNING MAY 1, 2015 AND ENDING APRIL 30, 2016 IN AND FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER TWO BE IT ORDAINED BY THE Mayor and City Council of the City of Wheaton. Illinois, pursuant to its home rule powers, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Two has been created by an ordinance entitled, ?An Ordinance Establishing City of Wheaton Special Service Area Number Two, adopted February 8, 1983, and effective as of February 9, 1983, no petition having been filed opposing the creation of the special service area, pursuant to Public Act 88- 455. Special Service Area Number Two consists of the ten-itory described in the ordinance aforesaid, The City of Wheaton is authorized to levy taxes for special services in Special Service Area Number Two. Section 2: The total amount of appropriations for all the purposes to be collected from the tax levy of the current fiscal year in Special Service Area Number Two is ascertained to be the sum of $41,700. Section 3: The following sums shall be levied upon the taxable property as defined in Public Act 88-455, in the City of Wheaton Special Service Area Number Two; said tax to be levied for the fiscal year beginning May 1, 2015, and ending April 30, 2016. PARKING FUND Enforcement Services $41,700 TOTAL LEVY $41,700 Section 4: This tax is levied pursuant to Public Act 88-455 and pursuant to An Ordinance Establishing City of Wheaton Special Service Area Number Two. Section 5: The $41,700 tax levy is certified to the County Clerk of DuPage County, illinois. The City of Wheaton determines this S41 ,700 tax levy to be the total amount required to be raised by taxation for the current fiscal year of the City for Special Service Area Number Two. The City Clerk of Wheaton, Illinois, is ordered and directed to file with the County Clerk of DuPage County, on or before the time required by law, a certified copy of this ordinance. Section 6: All ordinances or parts of ordinances in conflict with these provisions are repealed.  Ordinance No, F- Page 2 Section 7: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk Roll Call Vote Ayes: Nays: Absent: Passed: December 21, 2015 Published: December 22, 2015  ORDINANCE NO. F- AN ORDINANCE MAKING APPROPRIATIONS FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER TWO FOR THE FISCAL YEAR BEGINNING MAY 1, 2015 AND ENDING APRIL 30, 2016 BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Two has been created by an ordinance entitled, “An Ordinance Establishing the Wheaton Special Service Area Number Two”, adopted February 8, 1983, and effective as of February 9, 1983, no petition having been filed opposing the creation of the special service area, pursuant to Public Act 88.- 455. Special Service Area Number Two consists of the telTitory described in the ordinance aforesaid, The City of Wheaton is now authorized to levy taxes for special services in said special service area. Section 2: The following sums are hereby appropriated to pay the necessary expenses of Special Service Area Number Two for the fiscal period beginning May 1,2015 and ending April 30, 2016. such appropriations being for the following objects and purposes: APPROPRIATIONS SPECIAL TAX DISTRICT NUMBER TWO Enforcement Services $4 1,700 TOTAL APPROPRIATIONS $41,700 Section 3: All ordinances or parts of ordinances in conflict with these provisions are repealed. Section 4: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk  Ordinance No. F- Page 2 Roll Call Vote Ayes: Nays: Absent: Ca1TiedU1aIi1otIsl Passed: December21, 2015 Published: December 22, 2015  Robert R. Lehnliordt recto!ofFThonceç Memorandum To: Donald B. Rose, City Manager Date: November 17, 2015 Subject: 2015 SSA #3 Streams Subdivision Maintenance Tax Levy Estimate Attached are the tax levy and appropriation ordinances for Special Service Area Number Three, which was established in 1987 to provide maintenance of open spaces within the Streams Subdivision. The ordinance establishing SSA #3 allowed a maximum tax rate of $.15 per $100 of assessed value. The 2015 proposed tax levy of $12,000 is $120 (or 10%) lower than the 2014 levy. With an estimated 1% increase in equalized assessed value in SSA #3, the levy would produce a tax rate of $,0244 and collect an estimated $11,998.45. 2015 Tax Levy SSA #3 2014 2015 2015 vs 2014 Levy Actual Estimate Dollar % FY2O1S-16 FY2016-17 Change Change Equalized Assessed Valuation $ 48,687,088 $ 49,173,959 $ 486,871 10% Levy Amount $ 12,120.00 $ 12,000.00 $ (120.00) -1.0% Calculated Tax Rate $ 00249 $ 0.0244 $ (0.0005) -2.0% Levy Extended Amount - Calculated Tax Rate $ 12,123.08 $ 11,998.45 $ (124.64) -1.0% The chart on the following page illustrates the SSA #3 tax levy for the past five years and 2015 estimated tax levy. The City has been well below the tax cap the past five years. Page 1 of 2  SSA#3 Tax Levy Past 5 Years and 2015 Estimated Requested Tax Actual Levy EAV Tax Tax Rate Tax Tax Year EAV % Change Levy Rate Cap Levy Rate 2010 $59,157,968 -3.2% $18,000.00 $0,0304 $o.i500 $ 18,220.65 $ 0.0308 2011 $55,277,672 -6.6% $18,000.00 $00326 $0.1500 $ 18,186.35 $ 0.0329 2012 $51,272,418 -7.2% $12,550.00 $o.0245 $01500 $ 12,715.56 $ 0.0248 2013 $48,708,833 -5.0% $12,715.00 $o,0264 $0,i500 $ 12,859.13 $ 0.0264 2014 $48,687,088 0.0% $12,000.00 $0,0246 $0.1500 $ 12,123.08 $ 0.0249 2015 $49,173,959 1.0% $12,000.00 $0.0244 $0.1500 $ 11,998.45 $ 0.0244 The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. To meet this requirement, the estimated 2015 SSA #3 Property Tax Levy is scheduled for discussion at the November 23, 2015 City Council Planning Session. The 2015 SSA #3 Property Tax Levy and Appropriations Ordinance are scheduled for the December 7, 2015 City Council Meeting for a first reading. Final adoption will be at the December 21, 2015 City Council Meeting. The 2015 SSA #3 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. Page 2 of 2  ORDINANCE NO. F- AN ORDINANCE FOR THE LEVY AND ASSESSMENT OF TAXES FOR THE FISCAL YEAR BEGINNiNG MAY 1, 2015 AND ENDING APRIL 30, 2016, IN AND FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER THREE BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, pursuant to its home rule powers, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Three has been created by an ordinance entitled, “An Ordinance Establishing City of Wheaton Special Service Area Number Three Streams”, adopted August 24, 1987, and effective as of August 25, 1987, - no petition having been filed opposing the creation of the special service area, pursuant to Public Act 88-455. Special Service Area Number Three consists of the territory described in the ordinance aforesaid. The City of Wheaton is authorized to levy taxes for special services in Special Service Area Number Three. Section 2: The total amount of appropriations for all the purposes to be collected from the tax levy of the current fiscal year in Special Service Area Number Three is ascertained to be the sum of$12,000. Section 3: The following sums shall be levied upon the taxable property as defined in Public Act 88-455, in the City of Wheaton Special Service Area Number Three; said tax to be levied for the fiscal year beginning May 1,2015, and ending April 30, 2016. Maintenance Expenses $12,000 TOTAL LEVY $12,000 Section 4: This tax is levied pursuant to Public Act 88-455 and pursuant to An Ordinance Establishing City of Wheaton Special Service Area Number Three. Section 5: The $12,000 tax levy is certified to the County Clerk of DuPage County, Illinois. The City of Wheaton determines this $12,000 tax levy to be the total amount required to be raised by taxation for the current fiscal year of the City for Special Service Area Number Three. The City Clerk of Wheaton, Illinois, is ordered and directed to file with the County Clerk of DuPage County, on or before the time required by law, a certified copy of this ordinance. Section 6: All ordinances or parts of ordinances in conflict with these provisions are repealed. Section 7: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law.  Ordinance No. F Page 2 Mayor ATTEST: City Clerk Roll Call Vote Ayes: Nays: Absent: Passed: December21, 2015 Published: December 22, 2015  ORDINANCE NO. F AN ORDINANCE MAKING APPROPRIATIONS FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER THREE FOR THE FISCAL YEAR BEGINNING MAY 1, 2015 AND ENDING APRIL 30, 2016 BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Three has been created by an ordinance entitled, ‘IAn Ordinance Establishing the Wheaton Special Service Area Number Three Streams”, adopted August 24, 1987, and effective as of August 25, 1987, no -- petition having been filed opposing the creation of the special service area, pursuant to Public Act 88455. Special Service Area Number Three consists of the territory described in the ordinance aforesaid. The City of Wheaton is now authorized to levy taxes for special services in said special service area. Section 2: The following sums are hereby appropriated to pay the necessary expenses of Special Service Area Number Three for the fiscal period beginning May 1, 2015 and ending April 30, 2016, such appropriations being for the following objects and purposes: APPROPRIATIONS SPECIAL TAX DISTRICT NUMBER THREE Maintenance Expenses $12,000 TOTAL APPROPRIATIONS $12,000 Section 3: All ordinances or parts of ordinances in conflict with these provisions are repealed Section 4: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk  Ordinance No. I- Page 2 Roll Call Vote Ayes: Nays: Absent: Passed: December 21, 2015 Published: December 22, 2015  Robert P. Lehnhordt Director of FThonce Memorandum To: Donald B. Rose, City Manager Date: November 17, 2015 Subject: 2015 SSA #7 CBD Promotional and Management Services Tax Levy-Estimate Attached are the tax levy and appropriation ordinances for Special Service Area Number Seven, which was established in 2011 to provide management, maintenance, and promotional services in the Central Business District. The ordinance establishing SSA #7 allowed a maximum tax rate of $45 per $100 of assessed value for a maximum of seven levy years. The 2015 proposed tax levy of $86,140 is set to collect the maximum amount available from the $45 tax rate cap. With an estimated 1% increase in the equalized assessed value in SSA #7, the estimated amount to be collected would be $82,860.44, an increase of $820.40 (or 1%) from the 2014 levy. 2015 Tax Levy SSA #7 2014 2015 2015 vs 2014 Levy Actual Estimate Dollar % FY 2015-16 FY 2016-17 Change Change Equalized Assessed Valuation $ 18,231,119 $ 18,413,430 $ 182,311 1.0% Levy Amount $ 82,040.04 $ 86,140.00 $ 4,099,96 5.0% Calculated Tax Rate $ 0.4500 $ 0.4678 $ 0.0178 4.0% Levy Extended Amount Calculated Tax Rate $ 82,040.04 $ 86,138.03 - $ 4,097.99 5.0% Tax Rate Cap $ 0.4500 $ 0.4500 $ - 0.0% Levy Extended Amount Tax Rate Cap - $ 82,040.04 $ 82,860.44 $ 820.40 1.0% Page 1 of 2 The following chart illustrates the SSA #7 tax levy since inception and the 2015 estimated tax levy. SSA #7 Tax Levy Since Inception and 2015 Estimated Requested Tax Actual Levy EAV Tax Tax Rate Tax Tax Year EAV % Change Levy Rate Cap Levy Rate 2011 $19,539,126 $100,000.00 $o,5118 $o.4500 $ 87,926.07 $04500 2012 $18,927,490 -3.1% $ 92,000.00 $o.4861 $o.4soo $ 85,173.71 $o.4soo 2013 $18,385,870 -2.9% $ 89,400.00 $04862 $0.4500 $ 82,736.42 $04500 2014 $18,231,119 -0.8% $ 86,800.00 $o.4761 $0.4500 $ 82,040.04 $04500 2015 $18,413,430 1.0% $ 86,140.00 $0.4678 $0.4500 $ 82,860.44 $0.4500 The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. To meet this requirement, the estimated 2015 SSA #7 Property Tax Levy is scheduled for discussion at the November 23, 2015 City Council Planning Session. The 2015 SSA #7 Property Tax Levy and Appropriations Ordinance are scheduled for the December 7, 2015 City Council Meeting for a first reading. Final adoption will be at the December 21, 2015 City Council Meeting. The 2015 SSA #7 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. Page 2 of 2  ORDINANCE NO. F- AN ORDINANCE FOR THE LEVY AND ASSESSMENT OF TAXES FOR THE FISCAL YEAR BEGINNING MAY 1, 2015 AND ENDING APRIL 30, 2016, IN AND FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER SEVEN BE IT ORDATNED by the Mayor and City Council of the City of Wheaton, Illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Seven has been created by an ordinance entitled, “An Ordinance Establishing City of Wheaton Special Service Area Number Seven”, adopted and effective as of December 19, 2011, no valid petition having been filed opposing the creation of the special service area, pursuant to Public Act 88-455. Special Service Area Number Seven consists of the territory described in the ordinance aforesaid. The City of Wheaton is authorized to levy taxes for special services in Special Service Area Number Seven. Section 2: The total amount of appropriations for all the purposes to be collected from the tax levy of the current fiscal year in Special Service Area Number Seven is ascertained to be the sum of $86,140. Section 3: The following sums shall be levied upon the taxable property as defined in the Public Act 88-455, in the City of Wheaton Special Service Area Number Seven; said tax to be levied for the fiscal year beginning May 1,2015, and ending April 30, 2016. Management, Maintenance and Promotion Expenses $86,140 TOTAL LEVY $86,140 Section 4: This tax is levied pursuant to Public Act 88-455 and pursuant to An Ordinance Establishing City of Wheaton Special Service Area Number Seven. Section 5: The $86,140 tax levy is certified to the County Clerk of DuPage County, Illinois. The City of Wheaton determines this $86,140 tax levy to be the total amount required to be raised by taxation for the current fiscal year of the City for Special Service Area Number Seven. The City Clerk of Wheaton, Illinois, is ordered and directed to file with the County Clerk of DuPage County, on or before the time required by law, a certified copy of this ordinance. Section 6: All ordinances or parts of ordinances in conflict with these provisions are repealed.  Ordinance No. F- Page 2 Section 7: This ordinance shall become effective from or after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk Roll Call Vote Ayes: Nays: Absent: Passed: December21, 2015 Published: December22, 2015  ORDINANCE NO. F- AN ORDINANCE MAKING APPROPRIATIONS FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER SEVEN FOR THE FISCAL YEAR BEGINNING MAY 1, 2015 AND ENDING APRIL 30, 2016 BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Seven has been created by an ordinance entitled, ‘An Ordinance Establishing the Wheaton Special Service Area Number Seven’, adopted and effective as of December 19, 2011, no petition having been filed opposing the creation of the special service area, pursuant to Public Act 88-455. Special Service Area Number Seven consists of the territory described in the ordinance aforesaid, The City of Wheaton is now authorized to levy taxes for special services in said special service area. Section 2: The following sums are hereby appropriated to pay the necessary expenses of Special Service Area Number Seven for the fiscal period beginning May 1, 2015 and ending April 30, 2016, such appropriations being for the following objects and purposes: APPROPRiATIONS SPECIAL TAX DISTRICT NUMBER SEVEN Management, Maintenance and Promotion Expenses $86,140 TOTAL APPROPRIATIONS $86,140 Section 3: All ordinances or parts of ordinances in conflict with these provisions are repealed. Section 4: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk  Ordinance No. F Page 2 Roll Call Vote Ayes: Nays: Absent: Passed: December 21, 2015 Published: December 22, 2015  MEMORANDUM TO: Record FROM: Susan Bishel, Public Relations Coordinator SUBJECT: Nov. 23, 2015 City Council Planning Session Minutes DATE: Dec. 1, 2015 CC: Mayor and City Council, City Manager, City Clerk, Department Heads The Planning Session took place in the Council Chambers, Wheaton City Hall, 303 W. Wesley St., Wheaton, Illinois. Those attending the Planning Session included: Mayor Gresk, Councilwoman Fitch, Councilman Prendiville, Councilman Rutledge, Councilman Saline, Councilman Scalzo and Councilman Suess. Also in attendance were City Manager Rose, Assistant City Manager Dzugan and Director of Finance Lehnhardt. The session began at 7:00 p.m. and concluded at 8:26 p.m. The following items were discussed: I. Call to Order The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Gresk. II. Approval of Oct. 26, 2015 Planning Session Minutes The Council approved the Oct. 26, 2015 Planning Session Minutes. III. Public Comment Joseph Mahady, 927 N. Washington St., stated he thinks real estate taxes over the past 10 years have increased significantly. He urged the City Council to consider not increasing the property tax levy and instead use General Fund reserves. IV. Tax Levy City Manager Rose stated City staff has presented several recommended options for deciding on the 2015 tax levy, which the Council must approve in December. Due to uncertainty created by the State of Illinois, City staff has had a difficult time making a recommendation for the 2015 tax levy. While the City has kept the tax levy at the same level for the past five years, City Manager Rose stated several factors must be taken into account this year, including a likely two-year property tax freeze by the State, which would freeze 31% of the City’s General Fund revenue at 2015 levy year levels. The State also has proposed cutting LGDF money to municipalities by half, which would result in a loss of $2,600,000 annually, or eliminating LGDF money entirely. LGDF represents approximately 13% of the City’s General Fund revenue. In addition, the major revenue sources in the General Fund have been relatively flat, and City Manager Rose stated there are limited options in dealing with lost or frozen revenue sources, such as increasing the home rule sales tax or instituting other additional taxes. He stated expenditure reduction by a significant amount would be difficult due to the personnel and program reductions that occurred in 2007-08. City staff presented several options for the City Council to consider. Alternative 1 would increase the levy by approximately 2.4% to fund police and fire pension increases. Alternative 2 would not increase the tax levy but would use General Fund reserves to fund increases for the police and fire pensions. Alternative 3 would increase the levy for the police and fire pensions plus an additional $300,000 in General Fund revenues so that if the State freezes the property tax levy and/or reduces the income tax distributions, the City will have a higher tax levy to work with going forward. Alternative 4 increases the levy for police and fire pensions plus an additional $500,000 in General Fund revenues. Alternative 4 would require the City to have a public hearing on the proposed levy, since the levy increase would be greater than 5%. City Manager Rose stated he believes it might be wise for the City to select an option that gives the City more financial leeway in case the State’s actions significantly impact the City’s revenue sources. Two Council members expressed an interest in selecting Alternative 2, which would not raise the tax levy, as they expressed that they don’t want to pass along increases to homeowners through an increase in taxes. Other City Council members expressed support for Alternative 3 or Alternative 4 due to the probability that the State could significantly reduce the City’s revenue sources. The City could abate taxes if the State’s actions did not negatively affect the City’s revenues. One Council member expressed support for Alternative 1. In response to a Council question about how much of an increase in taxes that residents would incur if Alternative 3 or Alternative 4 were put in place, Director of Finance Lehnhardt stated for a property valued at $350,000, the increase would be $48 annually with Alternative 3 and $61 annually with Alternative 4. In response to a Council question, Director of Finance Lehnhardt stated the General Fund reserve has been built from a number of sources, including reducing healthcare costs, the reduction in workforce implemented several years ago, significant real estate transfer tax revenues, and recent development projects. The majority of the Council supported Alternative 3. City Manager Rose outlined a number of other areas where the City may need to use some General Fund reserves in the near future, including upcoming roadwork projects, stormwater improvements and implementation of the Downtown Plan. In response to a Council question, Director of Finance Lehnhardt stated Milton Township is reassessing all properties in the township, but he has not received any information predicting how the assessed values will compare to the previous year. 11/23/15 Planning Session 2 V. City Council/Staff Comments Councilman Rutledge acknowledged the passing of Bill Black, who was a former chair of the Planning & Zoning Board. Mayor Gresk acknowledged the passing of Mary Lubko, a longtime community volunteer who advocated for senior services. VI. Closed Session: Personnel – Employment Contract 5ILCS 120/2(c)(1) Councilman Scalzo moved and Councilman Suess seconded that the Wheaton City Council adjourn to closed session at 8:13 p.m. for the purpose of discussing Personnel – Employment Contract 5ILCS 120/2(c)(1). Roll Call Vote: Ayes: Councilman Scalzo Councilman Suess Mayor Gresk Councilwoman Fitch Councilman Prendiville Councilman Rutledge Councilman Saline Nays: None Absent: None Motion Carried Unanimously The City Council returned to the open portion of their meeting at 8:26 p.m. VII. Adjournment The meeting was adjourned at 8:26 p.m. 11/23/15 Planning Session 3