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HomeMy WebLinkAbout9.4 First 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, 2026, AND ENDING DECEMBER 31, 2026.Item Cover Page Subject First 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, 2026, AND ENDING DECEMBER 31, 2026. Meeting October 20, 2026 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Category NEW BUSINESS Type Ordinance Information Each year, the Village approves and files its levy and abatement ordinance before December with Cook County. This ordinance abates part of the debt service levy used for general obligation bonds. The Village has alternative revenue sources to pay for the debt service obligation for the year 2027. In the absence of the attached abatement ordinance, the County will levy on all previously issued bonds, which could result in significant property tax increases for the Village's portion. The second reading and the final approval of this ordinance are expected on November 4, 2026. Discussion The proposed ordinance is presented as part of the Village's annual budget and property tax levy process. Each year, the Village reviews its outstanding general obligation bonds and identifies alternative revenue sources available to fund the associated principal and interest payments, reducing the amount that must be collected through property taxes. Under the terms of previously issued general obligation bonds, Cook County is required to extend property taxes for debt service unless the Village adopts an ordinance abating all or a portion of the required levy. When sufficient alternative revenues are available, the Village can abate these amounts and avoid imposing an additional property tax burden on residents and businesses. For tax year 2026, payable in 2027, the Village is proposing to abate 100% of its debt service property tax levy, totaling $7,857,879. This represents a significant financial accomplishment and reflects the Village's continued commitment to prudent financial management, strategic use of available resources, and minimizing the property tax burden. The proposed abatement includes debt service obligations associated with governmental capital projects, water and sewer infrastructure improvements, and the Prospect and Main Tax Increment Financing (TIF) District. Summary of Proposed Debt Service Abatement Enterprise WATER AND SEWER BONDS, S,ERIES, 2017 Wat e r Ca p l�it a 1 IIIrnprrove rn e nt 338,731 338,731 Enterprise GENERAL OBLIGATION BONDS, S,ERIES 2018,A - Water Wat e r Ca p l�it a 1 IIIrnprrove rn e nt 348,,75,0 348,,75,0 Enterprise GENERAL OBLIGATION BONDS, S,ERIES 2019A Wat e r Ca p l�it a 1 IIIrnprrove rn e nt 651,300 651,300 Enterprise Enterprise Totia 1 WATER AND SEWER BONDS, S,ERIES, 2022 Wat e r Ca p l�it a 1 IIIrnprrove rn e nt 572,300 129112081 572,300 129112081 Governmental GENERAL OBLIGATION BONDS, SUIES 201GA Village Refunding 1,957,500 1,957,500 Governmental GENERAL OBLIGATION BONDS, S,ERIES 2018,B Police IFiire Headquarter Construction 1,444,250 1,444,250 Governmental GENERAL OBLIGATION BONDS, SUIES 2018, liiIIIIIIage R ef u n d iii ng - 2,009, 2,009,B & 2,009,C 235,250 235,250 Governmental GENERAL OBILIAC ATION BONDS, SUIES, 2022B Flood Controll 8,79,560 8,79,550 TIF GENERAL OBLIGATION BONDS, S,ERIES 2017 Prospect & Main TIF'Developmeat 353,76,9, 353,769, TIF GENERAL OBLIGATION BONDS, S,ERIES 2018,A - TIF Prospect & Main TIF'Development 540,869, 5,40,8,69, TIF GENERAL OBLIGATION BONDS, S,ERIES 2019,B Prospect & Main TIF'Development 535,600 535,600 Rather than relying on property taxes, the Village will fund the 2027 debt service obligations through a combination of existing revenues and other available financial resources, as summarized below. Debt Service Fund .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4,516,5601 3�207,000 8791,260 430,300 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Bond Principal Z,735,,0,01,01 1,630,000 7,25,000 3,80 �00,0 Interest Expense 107'81,56,01 1,577,000 154 �260 - 50,300 Prospect and Mgrin ''TIF DistrUct 1,430,238 1,430,238 Bond Principal 895 �0,010 895'',000 Interest Expense 535 �238 - 5,35m238 'Water, and Sewer Fund 1,91110081 11911108,1 Bond Principal, 1, 165 mO,010 1.16151X0 Interest Expense 74,60,018,11, 746 �,08 1, Long Ter lDebt These funding sources allow the Village to meet its scheduled debt service obligations without levying additional property taxes for debt repayment. Importantly, the proposed abatement does not eliminate or reduce the Village's debt obligations. Rather, it changes the sources of funding used to satisfy those obligations. Alternatives 1. Hold the first reading of the ordinance abating 100 percent of the 2026 debt service levy payable in 2027 totaling $7,857,879. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends holding the first reading of the ordinance abating 100 percent of the 2026 debt service levy payable in 2027 totaling $7,857,879. Attachments 1. 2026 Abatement Ordinance - 10142026 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, 2026 AND ENDING DECEMBER 31, 2026 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the day of , 2026 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the day of , 2026. 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, 2026 AND ENDING DECEMBER 31, 2026 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. 6320 adopted May 2, 2017, authorizing the issuance of general obligation bonds series 2016 for refunding previously issued bonds in the Village, there was levied for the year 2026 the sum of $1,957,500 for bond principal and interest payments. B. That pursuant to Village Ordinance No. 6347 adopted November 7, 2017, authorizing the issuance of general obligation bonds series 2017 for financing the costs of certain water and sewer capital projects in the Village, there was levied for the year 2026 the sum of $338,731 for bond principal and interest payments. C. That pursuant to Village Ordinance No. 6347 adopted November 7, 2017, authorizing the issuance of general obligation series 2017 bonds for financing the costs of certain capital projects in the Village (TIF), there was levied for the year 2026 the sum of $353,769 for bond principal and interest payments. D. That pursuant to Village Ordinance No. 6385 adopted April 17, 2018, authorizing the issuance of general obligation bonds series 2018A for financing the costs of certain water and sewer capital projects in the Village, there was levied for the year 2026 the sum of $348,750 for bond principal and interest payments. E. That pursuant to Village Ordinance No. 6385 adopted April 17, 2018, authorizing the issuance of general obligation bonds series 2018A for financing the costs of certain capital projects in the Village (TIF), there was levied for the year 2026 the sum of $540,869 for bond principal and interest payments. F. That pursuant to Village Ordinance No. 6403 adopted September 4, 2018, authorizing the issuance of general obligation bonds series 2018B for financing the construction of Police and Fire HQ projects and refunding of certain bonds of the village there was levied for the year 2026 the sum of $1,679,500.00 for bond principal and interest payments. G. That pursuant to Village Ordinance No. 6449 adopted April 16, 2019, authorizing the issuance of general obligation bonds series 2019A for financing the costs of certain water and sewer capital projects in the Village, there was levied for the year 2026 the sum of $651,300 for bond principal and interest payments. H. That pursuant to Village Ordinance No. 6483 adopted October 15, 2019, authorizing the issuance of general obligation bonds series 2019B for financing the construction of various capital projects with the TIF District of Prospect and Main of the Village of Mount Prospect, there was levied for the year 2026 the sum of $535,600 for bond principal and interest payments. I. That pursuant to Village Ordinance No. 6594 adopted December 7, 2021, authorizing the issuance of general obligation bonds series 2022 for financing the construction of various water and sewer projects throughout the village there was levied for the year 2026 the sum of $572,300 for bond principal and interest payments. J. That pursuant to Village Ordinance No. 6622 adopted April 5, 2022, authorizing the issuance of general obligation bonds series 2022A for refunding Series 2013 G.O. Bond of the Village of Mount Prospect, levied for the year 2026 the sum of $879,560 for bond principal and interest payments. Section 2: Section 11: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $1,957,500.00 levied for G.O. Bond series 2016A interest and principal payments for the purpose of refunding prior bonds throughout the village pursuant to Ordinance No. 6320 be and the same is hereby abated in the amount of $1,957,500.00 being the entire amount levied for such bond interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 3: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $338,731 levied for G.O. Bond series 2017 interest and principal payments for the purpose of funding water and sewer construction projects throughout the village pursuant to Ordinance No. 6347 be and the same is hereby abated in the amount of $338,731 being the entire amount levied for such bond interest payment purposes for the fiscal year commencing January 1, 2026, and ending December 31, 2026. Section 4: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $353,769 levied for G.O. Bond series 2017 principal and interest payments for the purpose of funding construction projects throughout the village (TIF) pursuant to Ordinance No. 6347 be and the same is hereby abated in the amount of $353,769 being the entire amount levied for such bond principal and interest payment purposes for the fiscal year commencing January 1, 2026, and ending December 31, 2026. Section 5: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $348,750 levied for G.O. Bond series 2018A interest and principal payments for the purpose of funding water and sewer construction projects throughout the village pursuant to Ordinance No. 6385 be and the same is hereby abated in the amount of $348,750 being the entire amount levied for such bond interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 6: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $540,869 levied for G.O. Bond series 2018A principal and interest payments for the purpose of funding construction projects throughout the village (TIF) pursuant to Ordinance No. 6385 be and the same is hereby abated in the amount of $540,869 being the entire amount levied for such bond principal and interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 7: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $1,679,500 levied for G.O. Bond series 2018 B interest payments for the purpose of funding construction projects and refunding of 2009 bonds for the Village pursuant to Ordinance No. 6403 be and the same is hereby abated in the amount of $1,679,500 being the entire amount levied for such bond principal and interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 8: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $651,300.00 levied for G.O. Bond series 2019A principal and interest payments for the purpose of funding water and sewer construction projects throughout the village pursuant to Ordinance No. 6449 be and the same is hereby abated in the amount of $651,300 being the entire amount levied for such bond principal and interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 9: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $535,600 levied for G.O. Bond series 2019B principal and interest payment for the purpose of funding construction projects in the area of Prospect & Main TIF of the Village of Mount Prospect pursuant to Ordinance No. 6483 be and the same is hereby abated in the amount of $535,600 being the entire amount levied for such bond principal and interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 10: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $572,300.00 levied for G.O. Bond series 2022 interest and principal payments for the purpose of funding the construction of various water and sewer projects throughout the village pursuant to Ordinance No. 6594 be and the same is hereby abated in the amount of $572,300.00 being the entire amount levied for such bond interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 11: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $879,560 levied for G.O. Bond series 2022A interest and principal payments for the purpose of refunding general obligation bonds series 2013 pursuant to Ordinance No. 6622 be and the same is hereby abated in the amount of $879,560 being the entire amount levied for such bond interest payment purposes for the fiscal year commencing January 1, 2026 and ending December 31, 2026. Section 10: Village Ordinance Nos. 6320, 6347, 6385, 6403, 6449, 6483, 6594, and 6622 are hereby amended with respect to the tax abatements declared herein and set forth in Sections Two through Nine of this Ordinance. Section 11: The Village Clerk of the Village of Mount Prospect is hereby authorized and directedto file a certified copy of this Ordinance with the County Clerk of Cook County, Illinois within the time specified by law. Section 12: 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: ABSENT: PASSED and APPROVED this day of November 2026. Paul Wm. Hoefert, Mayor ATTEST: Karen Agoranos, Village Clerk Village of Mount Prospect Tax Levy - 2026 Debt Service Abatement Summary Series 2016 119571500 119571500 - - - Series 2017 (TIF) 3531769 3531769 - - - Series 2017 (WTR) 3381731 3381731 - - - Series 2018a (TIF) 5401869 5401869 - - - Series 2018a (WTR) 3481750 3481750 - - - Series 2018b (new) 114441250 114441250 - - - Series 2018b (refi) 2351250 2351250 - - - Series 2019a (WTR) 6511300 6511300 - - - Series 2019B (TIF) 5351600 5351600 - - - Series 2022 (WTR) 5721300 5721300 - - - Series 2022A (Flood) 8791560 8791560 - - - VILLAGE OF MOUNT PROSPECT Property Tax Levy - 2026 VILLAGE OF MOUNT PROSPECT Police Protection 4,607,379 - 4,607,379 92,148 4,699,527 4,699,527 - 0.00% Fire Protection 5,132,420 (1,100,000) 4,032,420 80,648 4,113,068 4,215,068 (102,000) -2.42% Police Pension Fund 6,864,627 (1,820,529) 5,044,098 100,882 5,144,980 5,144,980 - 0.00% Firefighters' Pension Fund 5,580,777 (1,708,414) 3,872,363 77,447 3,949,810 3,949,810 - 0.00% Total Operational Levy 22,185,20317,556,260 1 Debt Service Funds - General Government 2016 - Series Bonds 1,957,500 (1,957,500) - - - 225,794 (225,794)-100.00% 2018B - Police & Fie HQ 1,444,250 (1,444,250) - - - - - 0.00% 2018B - 2009 Refunding 235,250 (235,250) - - - - - 0.00% 2022B - Flood Control (2013) 879,560 (879,560) - - - - - 0.00% - TIF Series 2017 353,769 (353,769) - - - - - 0.00% Series 2018A 540,869 (540,869) - - - - - 0.00% Series 2019B 535,600 (535,600) - - - - - 0.00% - Water/Sewer Series 2017 338,731 (338,731) - - - - - 0.00% Series 2018A 348,750 (348,750) - - - - - 0.00% Series 2019A 651,300 (651,300) - - - - - 0.00% Series 2022 572,300 (572,300) - - - - - 0.00% Total7,857,879 (7,857,879) - - - 225,794 (225,794)-100.00% Total30,043,082 (1111101 12,486,822) 17,556,260 351,125 17,907,385 18,235,179 (327,794) -1.80% MOUNT 'III III PROSPECT Library. 11,596,400 11,596,400 91 1 /'� Total11,596,400 - 11,596,4III I 00 231,928 11,828,328 11,517,290 311,038 2.70% Total41,639,482 (12,486,822) 29,15211 ,6601 ME 583,053 29,735,713 29,752,469 (16,756) -0.06% TotalOperating Levy 33,781,60394.1 583,053 1 Total. ., 9411 11' 41,639,482 (12,486,822) 29,152,660 583,053 29,735,713 29,752,469 (16,756) -0.06%