2023-87 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, 2024, and Ending December 31, 2024

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Financial Management DATE: 12/18/2023 MEMO: TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton,City Manager Ruby F. James,City Treasurer&Chief Financial Officer SUBJECT: Property Tax Levy for Accessed Value Year 2023 Pay Tax Year 2024 SUMMARY RECOMMENDATION: Following a public hearing on the proposed tax levy, 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 2023 pay tax year 2024 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. BACKGROUND: The Illinois Truth in Taxation law requires the city to conduct a public hearing if the total levy is projected to increase by 5%or more. Although the city council is anticipating increasing the tax levy by only 3%, the council must also vote to abate all remaining debt totaling$15,453,147.02. Until the debt abatement ordinances are passed to abate the remaining debt not included in the tax levy,the debt remains outstanding and could potentially be included in the tax levy;thus triggering the requirement for a public hearing. At the council meeting of November 20, 2023, the City Manager presented property tax levy options to the Council for discussion and direction for city preparation of the 2023 Property Tax Levy. City Council directed the tax levy be prepared in accordance with a tax levy increase of 3.0%versus the 2022 tax levy per Resolution 2023-243 Resolution Estimating Amounts Necessary to be Raised by the 2023 Tax Levy(3%Increase). The property tax levy presented below for approval reflects the direction provided by the council. The property tax levy presented in the ordinance for Council consideration is $31,066,210.40 and includes tax levy amounts for the Decatur Police Pension, Decatur Firefighter Pension, Decatur Public Library, Decatur Municipal Band, and debt service payments for all General Obligation Debt due in the fiscal year covered by the tax levy,and not scheduled for abatement. Abatement ordinances included equal $15,453,147.02 of general obligation bond debt service payments. Such tax abatement from the property tax levy is possible as the City has secured alternative revenue sources sufficient to pay certain General Obligation debt service amounts in the fiscal period 2024. The resulting net tax levy after abatement is $15,783,038.38,a 3.0%increase versus the prior year tax levy: $(whole) Tax levy Tax Abatement(s) Tax Levy After Abatement(s) 2023 Tax Levy 31,236,185.40 15,453,147.02 15,783,038.38 2022 Tax Levy 31,433,702.85 16,110,365.02 15,323,337.83 2023 vs. 2022 -0.006% -4.1% 3.0% Tax abatements in the 2023 Tax Levy are as follows: Tlaht 1-- A}»t—t It A l—+--f---tc--i'la frnm