Public Notices & Hearings

Monday, November 27, 2023 7:00 p.m. In-Person & Virtual Wheaton City Hall Council Chambers The meeting will also be live streamed and recorded. • Join by phone: 312-626-6799, Meeting ID: 838 6625 0914 and Password: 549867 o You will be automatically muted. If you would like to speak, you need to press *9 to raise your hand and let the meeting administrator know you would like to speak. Once it is your turn to speak, you will receive a notification asking you to press *6 to unmute yourself. Please announce your name and address before commenting and ensure you are in a quiet place. • Join by computer/smartphone: o https://us02web.zoom.us/j/83866250914?pwd=TlAyK0JyRjR1aXlDNlNSekRHcVJhQT09 o You will be automatically muted. If you would like to speak, click on the “Raise Hand” button to let the meeting administrator know you would like to speak. When it is your turn to speak, you will receive a notification that the meeting administrator is asking you to press “unmute.” Please announce your name and address before commenting and ensure you are in a quiet place. • Public comments can be made by: o In person at 7:00 p.m. on Monday, November 27, 2023, during the Public Comment portion of the meeting. o Virtually at 7:00 p.m. on Monday, November 27, 2023, during the Public Comment portion of the meeting. o Email the City Council at allcouncil@wheaton.il.us before 5:00 p.m. on Monday, November 27, 2023. I. Call to Order and Roll Call II. Public Hearing – Proposed Property Tax Levy Increase for the City of Wheaton Special Service Area Number Eight A. Staff Presentation B. Public Comment C. Council Comment III. Public Hearing – Proposed Property Tax Levy Increase for the City of Wheaton, DuPage County, Illinois A. Staff Presentation B. Public Comment C. Council Comment IV. Adjournment  MEMORANDUM TO: The Honorable Mayor and City Council FROM: Robert R. Lehnhardt, Director of Finance/Treasurer DATE: November 27 2023 SUBJECT: Public Hearing - 2023 SSA #8 Downtown Promotional & Municipal Services Property Tax Levy Background 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 greater than 5%, 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 2023 SSA #8 Downtown Promotional and Municipal Services Property Tax Levy was: (1) presented at the Planning Session on October 9, 2023, (2) a notice was published in the Daily Herald on November 17, 2023, and (3) the public hearing will be conducted on November 27, 2023. 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 2024 Tax Levy, collected in 2025, will be the last levy year for the SSA. SSA #8 Map 2023 SSA #8 Property Tax Levy Development The Downtown Wheaton Association (DWA) is requesting $275,000 for their 2024 Budget, which is the same amount requested for the past 3 years. In addition, staff is recommending $150,000 for municipal services performed downtown currently funded in the General Fund. The following table shows staff budgeted $155,500 in the 2024 Budget for downtown landscape, streetscape maintenance, holiday lights & decorations, and snow hauling for some of the services performed downtown. General Fund 2024 Budget Downtown Municipal Services Downtown Landscape $ 95,000 Streetscape Maintenance 17,500 Holiday Lights & Decorations 15,000 Snow Hauling 28,000 Total $ 155,500 At the September 25, 2023 Planning Session, staff presented a financial analysis of the Parking Fund and recommendations to increase parking revenue. City Council members expressed support for increasing the SSA #8 property tax levy by $150,000. The SSA #8 Fund will transfer the $150,000 to the General Fund to reimburse these expenditures. The General Fund will then transfer $150,000 to the Parking Fund. 2023 SSA #8 Property Tax Levy – Truth in Taxation Calculation For Truth in Taxation purposes, the 2023 SSA #8 Proposed Tax Levy of $425,500 is compared to the 2022 Extended Tax Levy of $274,527.08 (excludes aggregate refunds of $592.29), which results in an increase of $150,972.92 (or 54.99%). 2023 Property Tax Levy SSA #8 (C) - (A) (A) (B) (C) (D) Truth in Taxation 2022 2022 2023 2023 2023 Proposed Levy Extended Levy (1) Extended Proposed Extended vs 2022 Extended Levy (1) Less Agg. Refunds Levy Levy Levy $ % 2023 Budget 2023 Budget 2024 Budget 2024 Budget Change Change EAV $ 98,715,240 $ 98,715,240 $ 101,183,121 $ 101,183,121 $ 2,467,881 2.5% DWA $ 274,527.08 $ 274,527.08 $ 275,500.00 $ 275,521.64 $ 972.92 0.4% Downtown Municipal Services $ - $ - $ 150,000.00 $ 150,000.00 $ 150,000.00 100.0% Aggregate Refunds $ - $ 592.29 $ - $ - $ - 0.0% Total Levy $ 274,527.08 $ 275,119.37 $ 425,500.00 $ 425,521.64 $ 150,972.92 54.99% Tax Rate $ 0.2781 $ 0.2787 $ 0.4205 $ 0.4205 $ 0.1424 51.2% (1) 2022 Extended Levy excluding aggregate refunds of $592.29. Page 2 of 3  Financial Impact on Property Owner The financial impact of the levy for a property owner depends on the change in the assessed value of their property from 2022 to 2023. For uniformity purposes, the following table assumes the assessed value of all properties has a base growth increase of 2.5%. The following table shows the impact based on their property value. Annual Property Tax Impact 2022 2023 2023 vs 2022 Fair Tax Tax Fair Tax Tax Tax Amount % Cash Value Rate Amount Cash Value Rate Amount Change Change $ 400,000 $ 0.2787 $ 372 $ 410,000 $ 0.4205 $ 575 $ 203 54.6% $ 500,000 $ 0.2787 $ 464 $ 512,500 $ 0.4205 $ 717 $ 253 54.5% $ 600,000 $ 0.2787 $ 557 $ 615,000 $ 0.4205 $ 862 $ 305 54.8% $ 1,000,000 $ 0.2787 $ 929 $ 1,025,000 $ 0.4205 $ 1,437 $ 508 54.7% $ 69,000,000 $ 0.2787 $ 64,095 $ 70,725,000 $ 0.4205 $ 99,123 $ 35,028 54.7% Property Tax Schedule The 2023 SSA #8 Downtown Promotional and Municipal Services 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 2023 SSA #8 Downtown Promotional and Municipal Services Property Tax Levy Ordinance is scheduled for the December 4, 2023 City Council Meeting and adoption at the December 18, 2023 City Council Meeting. The City Council has the flexibility to adopt a tax levy and abate any amount of the adopted levy 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 18, 2024 City Council Meeting. Page 3 of 3  MEMORANDUM TO: The Honorable Mayor and City Council FROM: Robert R. Lehnhardt, Director of Finance/Treasurer DATE: November 27, 2023 SUBJECT: Public Hearing - 2023 General Purpose and Debt Property Tax Levy Background 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 greater than 5%, 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 2023 General Purpose and Debt Property Tax Levy was: (1) presented at the Planning Session on October 9, 2023, (2) a notice was published in the Daily Herald on November 17, 2023, and (3) the public hearing will be conducted on November 27, 2023. 2023 Property Tax Levy Development At the August 28, 2023 Planning Session, staff presented to the City Council a five-year financial forecast (“Forecast”) of the City’s major operating and capital funds. In addition, staff presented the 2024 Budget Framework which identified pressure points impacting the City’s finances. Global supply chain disruptions, high inflation, high energy costs and construction costs have significantly increased City expenditures. At the October 9 Planning Session, staff presented to the City Council the proposed 2023 Property Tax Levy. Staff recommended increasing the total property tax levy by $0.2 million (or 1.0%). The majority of the City Council members expressed their desire not to increase the total property tax levy. This would be the fifth (5th) year in a row with no increase in the total property tax levy. Property Tax Levy $24.0 Millions $20.0 $16.0 $12.0 $8.0 $4.0 $- 2019 2020 2021 2022 2023 Tax Levy Year Staff has prepared the 2024 Draft Budget incorporating no increase in the 2023 Property Tax Levy and have conducted two (2) Budget Workshop Sessions on November 13, 2023 and November 18, 2023. 2023 Property Tax Levy Components The City’s property tax levy is prepared in two components: (1) General Purpose Levy and (2) the Debt Service Levy. 1. The General Purpose Levy is presented in further detail to define the City’s uses of the property tax levy: • General Corporate. Funds a portion of public safety expenditures. • Police and Fire Pension plans. The City’s contribution is determined by an annual actuarial valuation. State statutes define the benefits and funding of the pension plans. • Library. Wheaton Public library operations which the City levy’s on their behalf. 2. The Debt Service Levy represents general obligation bonds the City has issued to fund public improvements and pension obligation bonds to fund the police and fire pension plans unfunded liability. 2023 General Purpose and Debt Property Tax Levy - Truth in Taxation Calculation For Truth in Taxation purposes, the General Purpose Levy portion of the property tax levy is used to determine if the proposed levy increase is greater than 5% and in compliance with the Truth In Taxation Act. The Debt Service Levy portion of the levy is not included in the calculation. Staff is recommending reallocating $1.1 million from the Debt Service levy portion to the General Purpose Levy portion for the 2023 property tax levy. Staff also recommend using $0.5 million from the Pension Budget Stabilization Fund (restricted General Fund balance reserves) to offset increases in the Police and Fire Pensions. The following table presents the components of the 2023 property tax levy. Even though the total overall levy of $20.6 million is flat, the City is required to conduct a Truth in Taxation public hearing due to the General Purpose Levy portion increasing greater than 5%. 2023 Property Tax Levy Flat Overall Levy (C) - (A) (A) (B) (C) (D) Truth in Taxation 2022 2022 2023 2023 2023 Proposed Levy Extended Levy (1) Extended Proposed Extended vs 2022 Extended Levy (1) Less Agg. Refunds Levy Levy Levy Amount % 2023 Budget 2023 Budget 2024 Budget 2024 Budget Change Change General Purpose Levy General Corporate $ 9,114,293 $ 9,114,293 $ 9,156,963 $ 9,149,761 $ 42,670 0.47% Police Pension 1,043,231 1,043,231 2,004,000 2,004,000 960,769 92.10% Fire Pension 883,024 883,024 1,307,000 1,307,000 423,976 48.01% Aggregate Refunds - 34,394 - - - 0.00% Pension Budget Stabilization Fund - - (500,000) (500,000) (500,000) 100.00% Total City General Purpose Levy $ 11,040,548 $ 11,074,942 $ 11,967,963 $ 11,960,761 $ 927,415 8.40% Library General Purpose Levy Library 4,289,359 4,289,359 4,489,359 4,489,359 $ 200,000 4.66% Total Library General Purpose Levy $ 4,289,359 $ 4,289,359 $ 4,489,359 $ 4,489,359 $ 200,000 4.66% Total General Purpose Levy $ 15,329,907 $ 15,364,301 $ 16,457,322 $ 16,450,120 $ 1,127,415 7.35% Debt Service Levy Debt Service 5,220,521 5,220,521 4,093,106 4,134,702 (1,127,415) -21.60% Total Debt Service Levy $ 5,220,521 $ 5,220,521 $ 4,093,106 $ 4,134,702 $ (1,127,415) -21.60% Total General Purpose & Debt Service $ 20,550,428 $ 20,584,822 $ 20,550,428 $ 20,584,822 $ - 0.00% (1) 2022 Extended Levy excluding aggregate refunds of $34,394. Page 2 of 4 General Purpose Levy. The 2023 Proposed General Purpose Levy of $16,457,322 is compared to the 2022 Extended Levy Less Aggregate Refunds of $15,329,907 (excludes aggregate refunds of $34,394), which results in an increase of $1,127,415 (or 7.35%). • The General Corporate portion is flat at $9.1 million. • The Police Pension increases $1.0 million (or 92.1%), Fire Pension increases $0.4 million (or 48.0%), and will be offset by $0.5 million from the Pension Budget Stabilization Fund. • The Library portion increases by $0.2 million (or 4.7%) to $4.5 million. Debt Service Levy. The 2023 Proposed Debt Service levy decreases from $5.2 million to $4.1 million, a decrease of $1.1 million (or -21.6%), mainly due to the 2012A Library Bonds being retired in 2023. 2022 vs 2017 Property Tax Distribution The City’s portion of a typical resident’s 2022 property tax bill was 12.1% and has decreased slightly over the years from 13.0% in 2017. 2022 vs 2017 Property Tax Distribution 2022 Tax Distribution 2017 Tax Distribution School District School District 200 College of 67.3% College of 200 DuPage District DuPage District 70.8% 502 502 2.8% 3.3% Wheaton Park Wheaton Park District District 8.2% 10.3% Wheaton Wheaton Milton Township Mosquito Milton Township Mosquito Road District Abatement Road District Abatement 1.1% 0.2% 1.0% 0.2% DuPage County Milton Township DuPage County Milton Township City of Wheaton 2.1% 2.4% City of Wheaton 0.9% 0.6% DuPage Airport 12.1% DuPage Airport 13.0% DuPage County DuPage County Authority Authority Forest Preserve Forest Preserve 0.2% 0.2% 1.8% 1.6% Property Tax Rates The following chart shows the City of Wheaton’s actual property tax rates for the levy years 2017 to 2022 and the estimated tax rate for 2023. Comparing the 2022 actual property tax rate to 2017, the property tax rate has decreased 13.0% (or -$0.1252) per $100 of assessed value. The Estimated 2023 property rate of $0.8135 compared to the 2022 property rate of $0.8379 is estimated to decrease 2.9% (or -$0.0244). Property Tax Rate $1.0000 $0.9500 $0.9000 Tax Rate $0.8500 $0.8000 $0.7500 $0.7000 2017 2018 2019 2020 2021 2022 2023* Tax Levy Year Page 3 of 4 2023 Property Tax Levy - Financial Impact on Property Owner The financial impact of the levy for a property owner depends on the change in the assessed value of their property from 2022 to 2023. For uniformity purposes, the following table assumes the assessed value of all properties has a base growth increase of 2.66%. As shown in the following table, a property owner could see a slight annual decrease of $3 to $4 in the City’s portion of their property tax bill. Annual Property Tax Impact 2022 2023 2023 vs 2022 Fair Tax Tax Fair Tax Tax Tax Amount % Cash Value Rate Amount Cash Value Rate Amount Change Change $ 300,000 $ 0.8379 $ 838 $ 307,980 $ 0.8135 $ 835 $ (3) -0.4% $ 358,896 $ 0.8379 $ 1,002 $ 368,443 $ 0.8135 $ 999 $ (3) -0.3% $ 400,000 $ 0.8379 $ 1,117 $ 410,640 $ 0.8135 $ 1,113 $ (4) -0.4% $ 450,000 $ 0.8379 $ 1,257 $ 461,970 $ 0.8135 $ 1,253 $ (4) -0.3% Property Tax Schedule The 2023 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 2023 Property Tax Levy Ordinance is scheduled for the December 4, 2023 City Council Meeting and adoption at the December 18, 2023 City Council Meeting. The City Council has the flexibility to adopt a tax levy and abate any amount of the adopted levy 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 18, 2024 City Council Meeting. 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