2021-52 An Ordinance Levying Property Taxes for the City of Decatur, Illinois for the Purpose of Raising Revenue to Meet Certain Necessary Expenses of the City for the Fiscal Year Beginning January 1, 2022, and Ending December 31, 2022

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LETTER to the DECATUR CITY COUNCIL Finance Department DATE: December 8, 2021 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Gregg D.Zientara, City Treasurer& Director of Finance SUBJECT: Property Tax Levy for AV Year 2021 Pay Tax Year 2022 SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached series of Ordinances,which set the property tax levy for the City of Decatur for assessed value year 2021 pay tax year 2022 and abate certain of the general obligation bond debt service payments, whereby such abatement will exclude said debt service payment from inclusion in the property tax levy. At the council meeting of September 20, 2021, the City Manager presented property tax levy options to the Council for discussion and direction for city preparation of the 2021 Property Tax Levy. The property tax levy presented for approval reflects the direction provided by the council. The 2021 Property Tax Levy presented herewith reflects an increase of 3.36% versus the 2020 Property Tax Levy. The increase is the result of anticipated assessed value growth, council actioned annexations, new commercial construction, and closure of the Southeast Plaza TIF District, where the assessed value of the TIF is now incorporated into the city assessed value for property tax purposes.The anticipated assessed value growth is as follows: Assessed valuation growth 2.10% Annexation growth 0.34% New commercial construction growth 0.52% Southeast Plaza TIF closure 0.40% Total 3.36% Percentage increase in assessed value contributing to the total anticipated growth in assessed value Consistent with Council direction, the proposed property tax levy anticipates a property tax rate that will remain unchanged from the prior year property tax rate, $1.70419 per$100 of assessed value. This approach, theoretically, limits individual property owners to an increased tax burden that results from assessed value growth of the property, with a consistent tax rate, or a deceased tax burden should the assessed value of the property decline. This approach, theoretically, provides increased property tax revenue to the city from increased assessed value growth from annexation, new construction, and the TIF closure.