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HomeMy WebLinkAbout7.5 1st Reading of an Ordinance to Abate a Part of the Taxes Levied for Corporate and Municipal Purposes of the Village for Fiscal Year 201711/29/2017 BoardDocs® Pro Agenda Item Details Meeting Nov 21, 2017 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 7. NEW BUSINESS Subject 7.5 1st reading of AN ORDINANCE TO ABATE A PART OF THE TAXES LEVIED FOR CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 Type Action Preferred Date Nov 21, 2017 Absolute Date Nov 21, 2017 Fiscal Impact Yes Budgeted Yes Recommended Action Approve an ordinance abating portions of the 2017 property tax levy. Information This ordinance reduces a portion of the Series 2009C and Series 2013 debt service tax levies established by its bond ordinance at the time of issuance. The abatement of the Series 2009C levy is the result of issuing these bonds as Build America Bonds, part of the American Recovery and Reinvestment Act passed in 2009. This federal program rebates 35% of he interest expense on taxable issues. The rebate amount for 2018 is $42,000. Funds to abate the Series 2013 levy in its entirety will come from the home rules sales tax dedicated to supporting flood control projects. The abatement amount is $369,956. The abatement to the public safety pension levies is not included in this ordinance as there is no formal levy requirement established for the pension levies as there is for debt service. It is important to note that these pension levies are being reduced by $630,000 using General Funds. This is the second year of a four-year phase-in of the levy requirement established by the pension actuary at the end of 2015. The abatements to the pension levies for the next two years are $420,000 and $210,000. This phase-in allowed for more moderate increases to the tax levy rather than the significant increase to the pension levies (20%) that would have been realized had the entire amount been added to the levy. One additional abatement will be brought forth at a later date related to the Series 2017 Bonds. We do not yet have the final debt repayment schedule as the bonds are not set for sale until November 20, 2017. Once the repayment schedule is known this item will be brought to the Village Board for consideration. Alternatives 1. Village Board approval of an ordinance authorizing the abatement of all or portions of the Series 2009C Bonds and Series 2013 Bonds. 2. Action at discretion of Village Board. Staff Recommendation It is recommended that the Village Board pass an ordinance abating portions of the 2017 property tax levy. General Village Levy Abatement Ordinance - 2017.pdf (17 KB) http://www.boarddocs.com/il/vomp/Board.nsf/Public 1/2 ORDINANCE NO. AN ORDINANCE TO ABATE A PART OF THE TAXES LEVIED FOR CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the day of 12017 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the day of , 2017. ORDINANCE NO. AN ORDINANCE TO ABATE A PART OF THE TAXES LEVIED FOR CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: Section 1: The President and Board of Trustees of the Village of Mount Prospect find as follows: A. That pursuant to Village Ordinance No. 5772 adopted December 1, 2009 authorizing the issuance of general obligation bonds for financing a portion of the costs of constructing a replacement fire station, emergency operations center and public works expansion there was levied for the year 2017 the sum of $222,655.00 for bond interest payments. B. That pursuant to Village Ordinance No. 6090 adopted August 20, 2013 authorizing the issuance of general obligation bonds for financing the construction of various flood control projects throughout the village there was levied for the year 2017 the sum of $369,956.26 for bond interest payments. Section 2: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $222,655.00 levied for G.O. Bond principal and interest payments for the purpose of funding a portion of the costs of constructing a replacement fire station, emergency operations center and public works expansion pursuant to Ordinance No. 5772 be and the same is hereby abated in the amount of $42,000 leaving a balance of $180,655 as that amount levied for such bond principal and interest payments for the fiscal year commencing January 1, 2017 and ending December 31, 2017. Section 3: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $369,956.26 levied for G.O. Bond interest payments for the purpose of funding the construction of various flood control projects throughout the village pursuant to Ordinance No. 6090 be and the same is hereby abated in the amount of $369,956.26 being the entire amount levied for such bond interest payment purposes for the fiscal year commencing January 1, 2017 and ending December 31, 2017. Section 4: Village Ordinance Nos. 5772 and 6090 are hereby amended with respect to the tax abatements declared herein and set forth in Sections Two and Three of this Ordinance. Section 5: The Village Clerk of the Village of Mount Prospect is hereby authorized and directed to file a certified copy of this Ordinance with the County Clerk of Cook County, Illinois within the time specified by law. Section 6: This Ordinance shall be in full force and effect upon its passage, approval and publication in pamphlet form and filing as provided by law. AYES: NAYS: I.:`1AN PASSED and APPROVED this day of 2017. ATTEST: Karen Agoranos, Village Clerk 2 Arlene A. Juracek, Mayor