R2020-157 Resolution Estimating Amounts Necessary to be Raised by the 2020 Tax Levy

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October 29, 2020 TO: Mayor Julie Moore Wolfe &City Council Members FROM: Scot Wrighton, City Manager Gregg Zientara,Chief Finance Officer and City Treasurer RE: Annual Property Tax Levy It has been the city's practice to perform an advance review of the proposed annual property tax levy prior to any public hearings or final action to approve the levy. Final approval of the annual property tax levy will not occur until December, but it is recommended that the City Council discuss the recommended strategy for developing the annual levy, and that the council approve the attached resolution verifying completion of this step in the process. The city of Decatur's property tax levy only constitutes about 16%of the total property tax levy. The balance of the levy goes to the local school district,sanitary district, park district, townships, conservation district, mosquito abatement district, Macon County, Richland Community College and others. In the aggregate,the average city resident's property tax bill is the total (in most cases) of eleven separate local government levies—all separately approved and set by eleven different governing bodies.The City Council only controls its 16%of the levy. The city of Decatur does not use funds raised from the annual tax levy to support its day-to-day operations.The city of Decatur property tax levy is disbursed to only five (5)governmental functions: police pension payments,fire pension payments,the Decatur Public Library,General Fund debt service payments, and support for the Decatur Municipal Band. Last year's property tax levy was distributed to these five governmental functions as follows: Police Pension Payments $4,000,065 28.2% Fire Pension Payments 5,100,001 35.9% Decatur Public Library 2,900,045 20.4% General Fund Debt Payments 2,122,002 15.0% Decatur Municipal Band 65,045 0.5% Totals $14,187,158 100.0% During the City Council's periodic 2020 study sessions to review the city's financial health, and in light of the economic and community impacts of COVID-19,the City Council expressed a clear desire to avoid tax increases in working its way out of the city's fiscal constraints.The tentative/draft tax levy ordinance has been prepared in accordance with this instruction. Last year the City Council was presented with three approaches to developing the annual property tax levy. Option One was to levy the exact same dollar amount as the previous year—