HomeMy WebLinkAbout 7.2 2nd reading of AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2019 AND ENDING DECEMBER 31, 2019.4/15/2020 BoardDocs® Pro
Agenda Item Details
Meeting Nov 19, 2019 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m.
Category 7. OLD BUSINESS
Subject 7.2 2nd reading of AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES
FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT
FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2019 AND ENDING DECEMBER 31, 2019.
Access Public
Type Action
Preferred Date Nov 19, 2019
Absolute Date Nov 19, 2019
Fiscal Impact Yes
Budgeted Yes
Recommended Action Approve the 2019 property tax levy reflecting an increase of 2.00 percent over the final
2018 levy extension.
Public Content
Information
Prior to December 24, 2019, the Village must have on file with the County Clerk its 2019 tax levy ordinances. This
includes the corporate levy and abatement ordinances. The Village will receive proceeds from the 2019 tax levy in
2020. The Public hearing for the property tax levy is scheduled on November 19, 2019, at 7:00 pm at the Village Hall
and the notice for the same is published on November 8, 2019, in Daily Herald.
The Village Board discussed the proposed 2019 tax levy at multiple public meetings during the past year, most
recently at the Village Board meeting of November 5, 2019, at the first reading of the levy ordinance. The Village's
2019 levy presented by staff provides for a 2.00 percent increase over the final 2018 levy extension and totals
$19,087,259. This increase will begin to fund expanded Fire Department operations in the southern portion of the
Village.The Library is proposing a levy with a 1.55 percent increase over the 2018 extension. The 2019 Library levy
extension with a 1.55 percent increase will be $11,798,893. A table showing the allocation for both of the proposed
2019 levies is attached. The Library Board is expected to meet and approve the levy before November 19.
The source of funds for the police and fire pension subsidy ($210,000) is the General Fund. The source of funds for
abatement of debt service comes from the home rules sales tax ($924,956), Water/Sewer funds
($1,166,248), capitalized interest from TIF bonds ($432,738), and a combination of General Fund reserves and
capitalized interest from 20188 Series Bond (Police/Fire HQ and Refunding) ($1,514,125). The proposed 20198 bond
will also be paid from the TIF Increment.
The Village's 2018 equalized assessed valuation (EAV) is $1,703,568,422. Total Village EAV for 2019 is estimated to
increase approximately 20 percent from the prior year to $2,044,282,106 due to triennial reassessment. Other factors
such as the annexation of the unincorporated areas and new development will work to prevent any decline in the EAV.
The final EAV for 2019 will not be available until summer 2020. Using projections for the 2019 EAV and proposed levy,
the Village's 2019 tax rate is estimated at $0.952 compared to the 2018 rate of $1.143. The Library's 2019 tax rate is
estimated at $0.577, compared to the 2018 rate of $0.696. The rate reduction for Library and the Village is estimated
based on the expected increases in the base EAV.
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For illustrative purposes, a house with a market value of $350,000, paid $1,165 in property taxes to the Village for
the 2018 assessment year. The same house would pay the $1,188 in property taxes at a new rate with a 2.00 percent
levy increase. The analysis assumes the change in the EAV will be in the same ratio across the board, and the
property tax burden ratio is the same as 2018. The 2.00 percent levy increase for the Village of Mount Prospect will
cost residents residing in a house with a market value of $350,000, $1.94 in additional taxes per month.
The Board discussed the impacts of a zero percent levy increase during budget discussions. If the Board does a
second year of a zero percent increase, a 6.94 percent increase will be required in 2020 due to planned debt service
and pension increases. With a 2.0 percent levy increase, the 2020 levy is projected 4.84 percent.
Alternatives
1. Village Board approval of the 2019 property tax levy reflecting an increase of 2.00 percent over the final 2018
extension.
2. Action at the discretion of Village Board.
Staff Recommendation
Staff recommends the Village Board approve the 2019 Property Tax Levy reflecting a 2.0 percent increase over the
2018 final extension. The increase will be restricted for Fire Department operations, which will be expanded to absorb
calls from the Elk Grove Rural Fire Protection District.
Administrative Content
Executive Content
Motion & Voting
Approve the 2019 property tax levy reflecting an increase of 2.00 percent over the final 2018 levy extension.
Motion by Michael Zadel, second by Colleen Saccotelli.
Yea: Eleni Hatzis, Colleen Saccotelli, Michael Zadel
Nay: William Grossi, Richard Rogers
Not Present at Vote: Paul Hoefert
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