Public Notices & Hearings

Monday, November 4, 2019 7:00 p.m. Wheaton City Hall Council Chambers I. Call to Order and Roll Call II. Public Hearing – Proposed Property Tax Levy Increase for Special Service Area Number 8 for 2019 A. Staff Presentation B. Public Comment C. Council Comment III. Adjournment  MEMORANDUM TO: The Honorable Mayor and City Council FROM: Robert R. Lehnhardt, Director of Finance/Treasurer DATE: November 4, 2019 SUBJECT: Public Hearing - 2019 Special Service Area #8 Property Tax Levy Background Special Service Area #8 was established in 2018 to provide enhanced marketing and education promoting benefits and activities in the area; managing special community events and activities; parking operations and maintenance; maintenance of streetscapes; holiday and event decorations; together with aesthetic enhancements including landscape and signage/banners. The ordinance establishing SSA #8 allowed a maximum tax rate of $0.45 per $100 of assessed value for a maximum seven (7) levy year term. 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. In addition, if the proposed levy increase is 5% greater than the previous year’s extended levy, the City is required to publish a notice and conduct a public hearing prior to the adoption of the levy. To meet these statutory requirements, the proposed 2019 SSA #8 Property Tax Levy was presented at the Planning Session on October 14, 2019, a notice was published in the Daily Herald on October 24, 2019, and the public hearing will be conducted on November 4, 2019. At the October 14, 2019 Planning Session, the City Council expressed the desire to discuss levying an amount for other City services in the downtown in addition to the $250,000 requested by the Downtown Wheaton Association (DWA). The DWA 2020 Budget is attached as Exhibit A. Based on this feedback, staff has prepared a tax levy to collect the maximum tax rate of $0.45 per $100 of assessed value. This tax levy amount was used for the Truth in Taxation public notice, which results in an increase of $97,107.09 (or 75.93%) compared to the 2018 extended levy. The 2019 extended tax levy totals $397,750.32, with an SSA #8 extended levy of $217,094.71 and $180,655.61 estimated to be generated in TIF #2 incremental tax revenue. 2019 Property Tax Levy SSA #8 Levy Amount: $225,000 SSA #8 and TIF #2 Incremental Tax Revenue 2019 2019 SSA #8 TIF #2 Frozen Incremental EAV EAV CY 2020 CY 2020 Totals EAV $ 48,243,269 $ 40,145,691 $ 88,388,960 Levy Amount $ 227,250.00 $ 189,106.35 $ 416,356.35 Calculated Tax Rate $ 0.4711 $ 0.4711 $ 0.4711 Total Levy Amount $ 227,250.00 $ 189,106.35 $ 416,356.35 Tax Rate Cap $ 0.4500 $ 0.4500 $ 0.4500 Total Levy Amount-Tax Cap $ 217,094.71 $ 180,655.61 $ 397,750.32 The proposed SSA #8 2019 extended tax levy is $227,250, which is an increase of $99,357.09 (or 77.69%) compared to the 2018 extended levy. Due to the $0.45 tax rate cap, the estimated amount to be collected would be $217,094.71, an increase of $89,201.80 (or 69.75%) from the 2018 extended levy. For Truth in Taxation purposes, the 2019 proposed levy is compared to the 2018 extended levy, which results in an increase of $97,107.09 (or 75.93%). 2019 Property Tax Levy SSA #8 Levy Amount: $225,000 Truth in Taxation 2018 2018 2019 2019 2019 Extended Levy 2019 Proposed Levy Adopted Extended Proposed Extended vs 2018 Extended Levy vs 2018 Extended Levy Levy Levy Levy Levy Dollar % Dollar % CY 2019 CY 2019 CY 2020 CY 2020 Change Change Change Change EAV $ 48,243,269 $ 48,243,269 $ 48,243,269 $ 48,243,269 $ - 0.0% $ - 0.0% Levy Levy Amount $ 126,600.00 $ 127,892.91 $ 225,000.00 $ 227,250.00 $ 99,357.09 77.69% $ 97,107.09 75.93% Calculated Tax Rate $ 0.2624 $ 0.2651 $ 0.4664 $ 0.4711 $ 0.2060 77.69% $ 0.2013 75.93% Total Levy Amount $ 126,600.00 $ 127,892.91 $ 225,000.00 $ 227,250.00 $ 99,357.09 77.69% $ 97,107.09 75.93% Tax Rate Cap $ 0.2624 $ 0.2651 $ 0.4500 $ 0.4500 $ 0.1849 69.75% $ 0.1849 69.75% Total Levy Amount-Tax Cap $ 126,600.00 $ 127,892.91 $ 217,094.71 $ 217,094.71 $ 89,201.80 69.75% $ 89,201.80 69.75% Page 2 of 5 City Services within the Downtown. The City services identified below, and associated costs, are those that could be funded by the SSA #8 property tax levy. Some of the costs are included as part of departmental tasks incorporated in current service delivery (opportunity costs), while other services are direct costs. City Service Costs - Downtown City Service/Costs Amount Light decorations and banners $ 20,000 Seasonal colors $ 65,000 Christmas lighting $ 37,000 General maintenance/clean-up $ 63,000 Special events - set-up and clean-up $ 27,000 Special events - extraordinary police services $ 30,000 Two-day weekly street sweeping $ 15,000 Parking garages maintenance and building renewal $ 185,000 Snow removal (loading and hauling) $ 48,000 Maintenance - new streetscape $ 15,000 DWA annual funding $ 250,000 TOTAL $ 755,000 2019 Property Tax Levy SSA #8 Levy Amount: $225,000 Maximum Tax Rate ($0.45) Source Amount SSA #8 $ 217,094.71 TIF #2 $ 180,655.61 Total $ 397,750.32 If the City Council desires to levy at the maximum tax rate of $0.45 and assuming the DWA is funded at $250,000, $147,750.32 could be used to fund other City Services expenses in the Downtown. Service Funding Source Amount DWA TIF #2 $ 180,655.61 DWA SSA #8 $ 69,344.39 Sub-Total $ 250,000.00 City Services SSA #8 $ 147,750.32 Grand Total $ 397,750.32 Page 3 of 5 The following was the 2019 SSA #8 Property Tax Levy presented at the Planning Session on October 14, 2019, which was proposed to fund the DWA only ($250,000) based on their 2020 Budget submission. The proposed 2019 extended tax levy totals $257,215.70, with an SSA #8 extended levy of $140,390.00 and $116,825.70 estimated to be generated in TIF #2 incremental tax revenue. The proposed total is slightly above the $250,000 to accommodate a range of EAV increases. 2019 Property Tax Levy SSA #8 Levy Amount: $139,000 SSA #8 and TIF #2 Incremental Tax Revenue SSA #8 TIF #2 Frozen Incremental EAV EAV CY 2020 CY 2020 Totals EAV $ 48,243,269 $ 40,145,691 $ 88,388,960 Levy Amount $ 140,390.00 $ 116,825.70 $ 257,215.70 Calculated Tax Rate $ 0.2910 $ 0.2910 $ 0.2910 Total Levy Amount $ 140,390.00 $ 116,825.70 $ 257,215.70 The proposed SSA #8 2019 extended tax levy is $140,390.00, which is an increase of $12,497.09 (or 9.8%) compared to the 2018 extended levy and would produce an estimated tax rate of $0.2910. For Truth in Taxation purposes, the 2019 proposed levy is compared to the 2018 extended levy, which results in an increase of $11,107.09 (or 8.7%). 2019 Property Tax Levy SSA #8 Levy Amount: $139,000 Truth in Taxation 2018 2018 2019 2019 2019 Extended Levy 2019 Proposed Levy Adopted Extended Proposed Extended vs 2018 Extended Levy vs 2018 Extended Levy Levy Levy Levy Levy Dollar % Dollar % CY 2019 CY 2019 CY 2020 CY 2020 Change Change Change Change EAV $ 48,243,269 $ 48,243,269 $ 48,243,269 $ 48,243,269 $ - 0.0% $ - 0.0% Levy Levy Amount $ 126,600.00 $ 127,892.91 $ 139,000.00 $ 140,390.00 $ 12,497.09 9.8% $ 11,107.09 8.7% Calculated Tax Rate $ 0.2624 $ 0.2651 $ 0.2881 $ 0.2910 $ 0.0259 9.8% $ 0.0230 8.7% Total Levy Amount $ 126,600.00 $ 127,892.91 $ 139,000.00 $ 140,390.00 $ 12,497.09 9.8% $ 11,107.09 8.7% Page 4 of 5 Property Tax Schedule and DWA 2020 Budget The City Council has the opportunity to further discuss the desired 2019 SSA #8 Property Tax Levy and DWA budget at the Budget Workshop Sessions in November. The 2019 SSA #8 Property Tax Levy is required by State Statute to be filed with the County by the last Tuesday in December. The first reading of the 2019 SSA #8 Property Tax Levy Ordinance is scheduled for the December 2, 2019 City Council Meeting and adoption at the December 16, 2019 City Council Meeting. The City Council has the flexibility to adopt a tax levy and abate it later, prior to the County finalizing the property tax extensions in March. The deadline to abate the adopted tax levy would be at the March 16, 2020 City Council Meeting. Page 5 of 5  Exhibit A A B C D E F G H I J K 1 Downtown Wheaton Association 2 Profit & Loss Budget Overview 3 January 2020- December 2020 Accrual Basis 4 5 Jan. -Dec. 2020 Description 6 Ordinary Income/Expense 7 Income 8 4000 · Income 9 4600 · Membership Dues 6,000 Annual dues invoiced in January 10 11 4800 · Event Income (Loss) 12 Summer Wine Walk 13,000 Estimated profit on summer wine event 13 Gift Certificates -2,000 Includes donations and annual printing 14 July 4th Events -500 Annual parade entry fee and vehicle décor 15 Christmas -22,000 Annual parade and holiday season events /advt. 16 Chili Cook Off 14,000 Estimated profit on November event 17 Halloween -1,000 Cost of giveaways, costume contest prizes 18 Wine Walk- Winter 3,000 Estimated profit on January wine event 19 Restaurant Week -6,000 Cost of advertising, signage, banners 20 Easter -1,000 Easter egg hunt supplies and staffing 21 Taste of Wheaton -1,500 Sponsorship and information booth supplies 22 Vintage Rides -15,000 Collateral printing, posters, staffing and advt. 23 Make Music Day -1,500 Musical performances throughout downtown 24 Wheaton College /Seasonal Events -400 Advertising in parents weekend guide 25 Ice Fest -6,000 Advertising and sculpture fees 26 Retail Events -4,000 Advertising and trolley fee and signage 27 Special Events 2020 -15,000 Seasonal promotions 28 Total 4800 Event · and Event Income Membership (Loss) income (loss) -39,900 29 30 31 32 33 34 SSA / TIF Income 35 4152 · SSA #7 - General 36 4160 · TIF #2 Income 37 38 Total SSA/TIF Income 250,000 combined SSA/TIF funding Page 1 of 4  A B C D E F G H I J K 4 5 Jan. -Dec. 2020 Description 6 39 40 41 42 Total Income 210,100 SSA/TIF/Member dues/Event income 43 44 Expenses 45 Economic Development 46 Signage for new business 1,000 Coming soon signage 47 Economic development printing 4,000 window wraps/ updated business attraction brochures 48 Brokers Walk 1,000 catering/tranportation 49 Total 6,000 50 51 6000 Administrative Expenses 52 Administrative Printing 1,000 Envelopes, stationery, business cards 53 Graphic Design 500 Redesign with Living Wheaton branding 54 Postage and delivery 500 office mailings 55 Total 2,000 56 57 6400 Office Expenses 58 Annual Meeting Reception 1,500 Catering expenses 59 _________________ 60 Total 1,500 61 62 6419 Equipment Purchase 1,000 Office equipment/ special event equipment 63 64 65 66 6425 Banking and CC Processing Fees 67 Line of Credit Payments 275 Annual processing fee 68 Credit card processing and bank fees 109 Heartland processing fees 69 Total 384 70 71 6430 Dues 300 Chamber of Commerce dues 72 73 6450 Professional fees Page 2 of 4  A B C D E F G H I J K 4 5 Jan. -Dec. 2020 Description 6 74 Accounting 1,800 Annual compilation report 75 Legal 300 Correspondence as needed 76 IT Consulting 1,500 Tech support 77 Website Maintenance 1,500 Updates and graphic uploading 78 Total 5,100 79 80 6480 · Insurance 6,000 General liability, director and workers comp. 81 6520 · Telephone & Internet 3,000 Comcast services 82 6525 · Office Supplies 3,500 Ink, paper, pens, filing supplies 83 6560 · Travel 300 Milage and parking fees 84 85 6565 · Meals & Entertainment 86 Board and Committee Meetings 1,000 Meeting refreshments 87 Chamber luncheons and dinners 1,200 Admission fees for luncheons and dinners 88 Board annual retreat 1,000 Annual board retreat and moderator expenses 89 Prayer Breakfast 300 Annual prayer breakfast table sponsorship 90 Total 3,500 91 92 6438 Marketing 93 Chamber Directory Advertising 500 Adveritising in annual member directory 94 Event Postcard 500 Printing 2019 calendar of downtown events 95 Kiosk 500 Event calendar and map panels 96 Photography/social media 4,000 Street and storefront photography for website and social media 97 Co-op advertising 5,000 Banner and underwriting of co-op layouts 98 Print advertising 5,356 Newspaper and magazine seasonal advertising 99 Social Media / FB/ Instagram 6,000 FB boosting, instagram posting. Social media management 100 Streetscape Marketing 10,000 Advertising and promotional materials 101 Shop Local/Retail Marketing 7,000 Employee discount/ shopper incentives 102 French Market 2,000 Staffing for setup and booth management 103 E-shopper newsletter 2,000 Create-Send service/ updates to design format 104 Shoppers guide/map 1,500 Map of downtown with business information 105 Sponsorships 1,000 Wheaton Municipal Band/ Cosely Zoo Events 106 Total 45,356 107 108 109 6475 Subscriptions 500 Newspaper/magazine subscriptions Page 3 of 4  A B C D E F G H I J K 4 5 Jan. -Dec. 2020 Description 6 110 6811 Rent 18,000 Monthly office rent 111 112 113 114 115 116 6900 · Depreciation Expense 355 Office furniture/ computer equipment 117 118 119 120 121 7000 Payroll Expenses 122 7110 Wages and salaries 123 7111 Executive Director 68,000.00 Full time employee 124 7112 Admin. Event Assistant 32,640 Full time employee position 125 Total 100,640 126 127 128 FICA/MICA 7,699 7.65% on all salaries and wages 129 7130 Payroll FederalTaxes Unemployment 171 130 7131 IL Unemployment 195 131 7132 Total 8,065 132 7133 133 134 135 7150 Employee Benefits Based on monthly $300 contribution for ED 136 7152 Health Insurance 3,600 137 138 7190 Payroll processing fees 1000 Precision payroll fees for each pay period (26) 139 140 Total Expenses 210,100 141 142 143 Net Income 0 Page 4 of 4