City Council Planning Sessions

1. City Council Planning Agenda Documents: 2016-11-28 CITY COUNCIL PLANNING AGENDA.PDF 2. City Council Planning Property Tax Levy - 2016 Ps04 Documents: 2016-11-28 CITY COUNCIL PLANNING PROPERTY TAX LEVY - 2016 PS04.PDF 3. City Council Planning Minutes Documents: 2016-11-28 CITY COUNCIL PLANNING MINUTES.PDF 4. City Council Planning Draft Minutes 12-12-2016 Ps02 Documents: 2016-11-28 CITY COUNCIL PLANNING DRAFT MINUTES 12-12-2016 PS02.PDF  WHEATON CITY COUNCIL PLANNING SESSION WHEATON CITY HALL – COUNCIL CHAMBERS 303 W. WESLEY STREET, WHEATON, ILLINOIS MONDAY, NOVEMBER 28, 2016 - 7:00 P.M. AGENDA I. Call to Order II. Approval of Minutes – November 14, 2016 III. Public Comment IV. 2016 Property Tax Levy V. City Council/Staff Comments VI. Adjournment During the Public Comment portion of the agenda, the presiding officer shall recognize any person requesting to be heard on any of the planning session agenda items only. Persons speaking during Public Comment shall not speak longer than three (3) minutes and shall be permitted to speak only once. Visitors must remain quiet and not engage in behavior that interferes with the Planning Session. The presiding officer may, or upon a majority vote of the council, request any visitor who violates any provision of this paragraph to leave the council chambers, and such visitor shall thereupon leave. Any person providing public comment shall address the presiding officer only and shall not proceed with remarks until recognized. When recognized, the person shall state his or her name and address. Cross floor discussions are prohibited. If a member of the City Council has questions of any person who has provided public comment, that person may address the specific question.  e rnor anduin Michael G. Dzzigan City Manager TO: The Honorable Mayor & City Council DATE: November 23, 2016 SUBJECT: 2016 Property Tax Levy Prior to the adoption of the annual tax levy in December, an aggregate levy estimate must be identified 20 days prior to the adoption of the tax levy. At our November 28 Planning Session, the staff will present information regarding a 2016 property tax levy for the City. 2017/18 Fiscal Year Budget Preparation The staff is in the very early stages of preparation of the 2017/2018 Budget. Two key additional expenditure items have been identified for inclusion in the 20 17/2018 Budget that will have an impact on revenues available to support operations and future capital projects S 125,000 for library — operations and $714,613 to fund the police and fire pensions as recommended by the most recent actuarial report the City received. It is difficult at this point, without working through the budget process, to offer how $840,000 of additional annual expense will affect our current operations and goal of no more than a 2% increase in operating expense, and the funding of future capital projects. Incorporating such additional annual expenses without offsetting revenue and/or decrease in operating expenses will in the long run certainly challenge our ability to continue offering current service levels. Early evaluation of revenue projections for the 2017/18 Budget is showing signs of no growth as our trend of flattening out (no measurable growth) continues. In some revenue categories the City is experiencing decreases. Layered on top of the revenue and expense pressures is the uncertaintycreated by the State of Illinois with regard to potential property tax freezes and reduction of revenue received from the Local Government Distributive Fund (LGDF. As we prepare the 2017/18 Budget, the State’s fiscal environment is certainly weighing on us but not directly influencing our approach since there is no way the City can adequately and safely plan on an annual basis for any type of State action especially if such action be immediate revenue loss. The City, like all municipal entities, will need to react. I do believe however the City has positioned itself to react to any State action in a thoughtful and measured way given our fund reserves. Four Alternative Tax Levies As was presented last year, the Finance Director and I have chosen to present you with 4 alternatives for your consideration and discussion at our Planning Session. Alternative 1 Increase S 125,000 for Library operations. — Alternative 2—Increase S31 1,004 reflecting TIF #1 and New EAV. Alternative 3 Increase S778,868 for Police and Fire Pensions, and Library operations. — Alternative 4 No increase. — Operating Expenses and Revenue Projections/General Fund As the City Council considers - the 4 options, I believe it is important to keep in mind the operating expense and revenue differential chart provided below. General Fund Operating Expense and Revenue Differential $46,000,000 $44,000,000 $42,000,000 $40,000,000 $38,000,000 $36,000,000 $34,000,000 Actual Projected forecast Forecast Forecast Forecast Forecast 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 —•—Operating Revenues —U—Operating Expenses Generally, the revenue line reflects no increase in the property tax 1e’, and a l% increase in all of the City’s other revenue categories (a /n 10 based upon current trends years is optimistic since last two have shown a decrease in certain revenue categories). 2% The expense line reflects a increase in general operating expenses, plus specific additional increases in police and fire pensions. The difference between the two lines represents annual revenue to fund capital projects; in the past this was not only used to fund capital projects but used to increase fund balances particularly in the General Fund to a point the General Fund balance reached 67%. As you may recall, fund balances were evaluated for compliance with City Council policy resulting in moving excess fund balances to a newly created Capital Project Fund (current fund balance of $1 1.4Mv1). Without an increase and/or growth in revenue or reduction in operating expenses, future fiscal years are less likely the to provide funding that may be demanded for capital projects. For example, in order to PCI meet our rating for roads, it was reported that a $3.5MM annual expenditure was necessary. With $1.4MM available from MFT, the General Fund would need to transfer $2.1MM on an annual basis to fund the Road Program, with the fund balance in the Capital Projects Fund supporting other capital projects. Good Financial Health It is important to stress that the City is still - in very good financial health and unless significant revenue loss City will continue to be financially from the State occurs, the strong. Continued financial forecasting as we have presented herein, is never so more important given the current economic and fiscal environment.  TIF 1 Expiration Impact/Special Service Areas 2 and 7 With TIF 1 expiring in December of 2015, $17.6MM of additional assessed value will be added to the City’s total assessed value. Given the fact that the City’s total assessed value is $1.9 B, adding the TIF 1 additional assessed value will not have a significant impact on taxes paid by individual property owners within the City. For SSAs 2 (CBD parking) and 7 (CBD management) the additional assessed value added to those districts will impact the tax rate assessed to property owners but will not decrease the taxes paid since the levy amount will increase to raise the same revenue that was received while TIF 1 was in effect. SSA 7 Established in 2011 for funding the Downtown Wheaton Association. For the 2015 Levy — year, through SSA 7 and based upon how a TIF works, the total funding to the DWA equaled $174,000 with $22,000 from TIF 1 and $70,000 from TIF 2, the remaining difference from the SSA 7 levy, $82,000. With the expiration of TIF I the 2016 levy for SSA 7 will increase by $24,000 in order to capture that revenue that was provided through TIF 1. The agreement entered into between the City and the DWA agreed to “extend the SSA 7 funding in the amount of .45% of the assessed value of real property located in SSA 7 . Increasing the levy by $24,000 meets the City’s funding . .“. obligation as set forth in the agreement. The actual taxes paid by property ownerswithin the boundaries of SSA 7 and TIF 1 should NOT increase as a result of the levy increase. Because the SSA 7 levy will increase by more than 5%, a truth in taxation public hearing will be required to be held on December 12, 2016. Finance Director’s 2016 Levy Memorandum Attached is the Finance Director’s memorandum detailing four alternative tax levies. The staff would like to review each of these and engage the Council in a discussion of the alternatives and provide whatever assistance we can to you in your determination of the levy that should be presented for formal consideration in December. Last year the City Council adopted a levy that included the full amount of the pension increases and $300,000 for General Fund purposes with the thought that any or all of the levy could be abated after completing the budget process. The Council did end up abating $300,000 of the adopted levy. As was the case last year, the Council has the flexibility to adopt any of the levy alternatives and abate any or all of that levy. The deadline to abate the adopted levy is the third week of March 2017. Library Budget Information I have also attached the Wheaton Public Library 2017/18 Budget - Notes which highlight changes to their budget. Attachments Wheaton Public Library 2017-2018 Budget - 10.24.2016 DRAFT Notes Personnel • 2% Increase for Staff • 10% increase from 40% to 50% for Employee Insurance Dependent Coverage • 1% increase to Benchmark Table • 5% increase in health care costs • Add (2) 19 hour Material Handler positions FTE will not increase — • Add (1) 19 hour Young Adult Associate position-FTE will not increase • Removal of anticipated $10 minimum wage increase Building • Skylights this is a replacement that needs to be done every 8 10 years. That cost is — — estimated at $29,000 and will be taken out of Building Renewal Fund • Balance and test HVAC system. Cost is estimated at $34,000. • Replacement of ground light fixtures to building light fixture for Library flagpole. Estimated cost is $5,000 and will be taken from Building Renewal Fund. • Window cleaning. Cost is $2,000 • Purchase a glass door for proposed Director Office. Cost is $1,200 and will be taken from Capital Renewal Fund. • Carpet Replacement for high traffic areas. This item was in the 5 Year Financial Plan and is estimated at $5,000 and will be taken from the Building Renewal Fund. Per Capita Grant • Budget this revenue with the same funding that was received in 2016-2017. The anticipated funding WPL will receive from this grant is $40,773 which is $25,345 LESS what we have historically received. Materials • Material budgets are to remain at level spending. However we did reallocate $10,500 from the Youth Services Budget to the Adult Services Budget. This will allow for the Adult Services Department to fill in the “holes” in the adult non-fiction. Changes in Budget Documents • The Debt Fund is now a part of the Revenue document under Taxes. • Fines and Fees will no longer be one line item on the City of Wheaton budget. Fines and Fees are not the same and need to be tracked independently from one another to be more transparent. • Children’s Department will be changed to Youth Services and will be broken out to two divisions, Tween Services and Early Childhood Services. City of Wheaton Capital Project Sheets • Completed sheets for the following projects: o Carpet Replacement—2017-18 o Security System Replacement Consultant, 2017-18 and System, 2018-19 — o Skylight replacement 2017-18 — o HVAC Balance and Test 2017-18 — WPL DRAFT BUDGET 10.24.2016 Page 1 City of Wheaton 5 Year Financial Plan • No additional sheets will be added this year • The Security Consultant will not be done this year as the Library’s IT Manager and Deputy Director would like to explore the newest cloud technology and City of Wheaton expertise to develop a plan for the Library. Replacement Funds • Capital Equipment Replacement Fund: Budgeted 50% of the annual contribution to this fund. A consultant will be hired to develop a Furniture Analysis Report to determine how this item should be funded in the future. • Technology Replacement Fund: $36,034 will be budgeted to this fund. • Building Renewal Fund: $51,389 will be budgeted to this fund. The following will be budgeted using replacement funds: • Skylights this is a replacement that needs to be done every 8 10 years. That cost is — — estimated at $29,000. BUILDING RENEWAL FUND • Replacement of ground light fixtures to building light fixture for Library flagpole. Not sure of cost estimate yet. BUILDING RENEWAL FUND • Purchase a glass door for proposed Director Office. Estimated cost is $1,200. CAPITAL RENEWAL FUND • Carpet Replacement for high traffic areas. This item was in the 5 Year Financial Plan and is estimated at $5,000. BUILDING RENEWAL FUND • Purchase a replacement DVD cleaning machine, Roboto II at estimated cost of $10,000. TECHNOLOGY REPLACEMENT FUND WPL DRAFT BUDGET 10.24.2016 Page 2  Robert P. Lehnhardt Director of Finance Memorandum To: Michael G. Dzugan, City Manager Date: November 21, 2016 Subject: 2016 Property Tax Levy — Estimate Background The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. In addition, if the proposed levy increase is greater than 5%, the City is required to publish a notice and conduct a public hearing prior to the adoption of the levy. To meet this statutory requirement, the estimated 2016 Property Tax Levy is scheduled for discussion at the November 28, 2016 City Council Planning Session. The City’s property tax levy is presented in two components: (1) General Purpose Levy and (2) the Debt Service Levy. The General Purpose Levy is presented in further detail to define the uses of the property tax levy: (1) General Corporate-public safety expenditures, (2) Library-Wheaton Public library operations which the City is statutorily required to levy on their behalf, and the (3) Police and Fire Pension plans-the City’s contribution is determined by an actuarial valuation performed annually. The benefits and funding of the pension plans are defined by state statutes. The Debt Service Levy represents general obligation bonds the City have issued to fund public improvements. The revenues generated from the 2016 property tax levy will be received in fiscal year 2017-18. The City’s portion of a typical resident’s 2015 property tax bill is 13.0%. 2015 Property Tax Distribution School District 200 66.6% CollegeofDuPage District502 3.5% WheatonPark District 10.4% Mi ton Township’ —.-.Wheaton Mosquito Road District Abatement 0.2% Milton To 0.6% cityof Wheaton DuPageAii 13.0% Authority 0.2% 2,0% Page 1 of 7 2016 Property Tax Levy Development The development of the 2016 Property Tax Levy not only involves projecting the revenue and expenditure requirements for the next fiscal year, but also looking ahead into future years. General Fund 5-Year Projections Budget Projected Forecast Forecast Forecast Forecast Forecast 2016/2017 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Beginning Fund Balance $ 15,586,073 $ 15,586,073 $ 15,756,620 $17,420,913 $ 18,476,708 $ 18,733,381 $18,188,637 Revenues $42,323,157 $41,893,584 $41,848,518 $42,150,644 $42,439,810 $42,732,396 $43,028,439 Expenditures $41,716,916 $41,723,037 $40,184,226 $41,094,848 $42,183,138 $43,277,140 $44,414,615 Surplus/(Deficit) $ 606,241 $ 170,547 $ 1,664,293 $ 1,055,796 $ 256,672 $ (544,744) $ (1,386,176) Ending Fund Balance $ 16,192,314 $15,756,620 $17,420,913 $ 18,476,708 $ 18,733,381 $ 18,188,637 $16,802,460 Operating Revenues/Expenditures Historically, the City has intentionally accumulated reserves to invest in - critical infrastructure and capital improvements, rather than issuing debt. The City’s General Fund is the main funding source for financing capital improvements other than those required for the City’s enterprise funds (Water, Sanitary Sewer, Storm Sewer and Parking Fund). The enterprise funds are structured to finance capital improvements and operations through user charges (i.e. water rates, sanitary sewer rates, parking fees, etc.). The following chart shows the General Fund projected operating revenues and operating expenditures for the next five years. General Fund Operating Revenues vs Operating Expenditures 5-Year Projections $46000,000 $44,000,000 $42, 000,000 $40,000,000 $38,000,000 $36,000,000 $34,000,000 Actual Budget Projected Forecast Forecast Forecast Forecast Forecast 2015/16 2016/17 2016/17 2017/18 2018/16 2019/20 2020/21 2021/22 —S—Operating Revenues —I— Operating Expenses The City’s financing plan to fund capital improvements is to use the excess of operating revenues over operating expenditures generated in the General Fund. The FY 2016/17 budget includes a $3.0 million transfer to the Capital Projects Fund. As the chart above depicts, the projected overage of revenues to expenditures falls to $1.8 million in FY 2017/18, $293,372 in FY 2019/20, with operating expenditures exceeding operating revenues for the remaining fiscal years. General Fund Revenue The City’s major revenue sources account for approximately 77% of all General Fund - revenues. These five major revenue sources are: property taxes (31%), sales tax (15%), income tax (13%), utility taxes (9%), and local sales tax (9%). The following table shows that in total the five major revenue streams are projected to be below budget by $735,962 (or 2.2%), with Income Tax estimated to be $395,000 (or 7.3%) below budget this fiscal year. Sales Tax, Local Sales Tax, and Utility Taxes fell in FY 2015/16 and are continuing to trend Page2of7 downward in FY 2016/17. Unfortunately, these reductions put significant pressure on the City’s other revenue sources. General Fund Major Revenue Sources FY 2016/17 Budget FY2014/15 FY2015/16 FY2016/17 FY2016/17 vs FY 2016/17 Projected Actual Actual Budget Projected Amount % Property Taxes $ 12,933,555 $ 12,742,839 $ 13,269,455 $ 13,189,493 $ (79,962) -0.6% Sales Tax $ 6,121,179 $ 6,042,779 $ 6,161,000 $ 6,000,000 $ (161,000) -2.6% Local Sales Tax $ 3,896,329 $ 3,869,271 $ 3,940,000 $ 3,819,000 $ (121,000) -3.1% Income Tax $ 5,180,153 $ 5,637,042 $ 5,395,000 $ 5,000,000 $ (395,000) -7.3% Utility Taxes $ 4,381,591 $ 4,068,555 $ 3,971,000 $ 3,992,000 $ 21,000 0.5% Totals $ 32,512,807 $ 32,360,486 $ 32,736,455 $ 32,000,493 $ (735,962) -2.2% $ change prior year $ 464,950 $ (152,321) $ 375,969 % changer prior year 1.5% -0.5% 1.2% 2016 Property Tax Levy Funding issues to be considered when determining the 2016 Property Tax Levy include: the City’s annual required contribution to the Police and Fire Pension plans increase $714,613 (or 20.5%) over last year and the Library is requesting an additional $125,000 (or 3.4%). Also, uncertainty regarding the state shared income tax (LGDF) revenues and the possibility of a 2-year property tax freeze have the potential to reduce General Fund revenues. The Debt Service Levy decreases by $42,745 (or 1.4%) after abating an additional $200,000 (after abatements for TIF debt) using debt service fund reserves. Because of the issues related to pension costs, library operations and uncertain revenue streams, I have calculated alternative tax levies for the 2016 Property Tax Levy for your review and consideration. Alternative #1: Increase Levy for Library 2016 Property Tax Levy 2015 2016 Levy Levy 2016 vs 2015 Actual Estimated Dollar % FY2016-17 FY2017-18 Change change General Purpose Levy General Corporate $ 9,310,442.28 $ 8,595,829.28 $ (714,613.00) -7.7% Police Pension $ 2,378,653.00 $ 2,744,782.00 $ 366,129.00 15.4% Fire Pension $ 1,104,091.00 $ 1,452,575.00 $ 348,484.00 31.6% Total $ 12,793,186.28 $ 12,793,186.28 $ - 0.0% Library $ 3,650,000.00 $ 3,775,000.00 $ 125,000.00 3.4% Total General Purpose Levy $ 16,443,186.28 $ 16,568,186.28 $ 125,000.00 0.8% Debt Service Levy Debt Service $ 3,034,013.64 $ 2,991,268.76 $ (42,744.88) -1.4% $ 3,034,013.64 $ 2,991,268.76 $ (42,744.88) -1.4% Total General Purpose & Debt Service $ 19,477,199.92 $ 19,559,455.04 $ 82,255.12 0.4% The total 2016 tax levy would increase by $82,255.12 (or 0.4%) compared to the 2015 tax levy. The levy includes an increase of $125,000 for the library. Page 3 of 7 Alternative #2: Increase Levy equal to TIF #1 and New Assessed Value The City would levy for TIE #1 and new construction using the actual 2015 assessed values to capture new growth. The City will not receive the final 2016 assessed values until March 2017 and this method of levying the new growth in arrears would provide a more accurate value to calculate this amount. New Billing Amount of New Total EAV as Levy Produced Tax Collection Total Total TIF #1 Construction New Billing % of Total by New Billing Year Year EAV Tax Rate EAV EAV EAV EAV AIiI 2016 I $ 1,883,310,764 I $ 1.0342 $ 17,596,667 $ 12,475,306 $ 30,071,973 I 1.60% I $ 311,004.34 I 2016 Property Tax Levy 2015 2016 Levy Levy 2016 vs 2015 Actual Estimated Dollar % FY2016-17 FY2017-18 Change Change General Purpose Levy General Corporate $ 9,310,442.28 $ 8,824,578.50 $ (485,863.78) -5.2% Police Pension $ 2,378,653.00 $ 2,744,782.00 $ 366,129.00 15.4% Fire Pension $ 1,104,091.00 $ 1,452,575.00 $ 348,484.00 31.6% Total $ 12,793,186.28 $ 13,021,935.50 $ 228,749.22 1.8% Library $ 3,650,000.00 $ 3,775,000.00 $ 125,000.00 3.4% Total General Purpose Levy $ 16,443,186.28 $ 16,796,935.50 $ 353,749.22 2.2% Debt Service Levy Debt Service $ 3,034,013.64 $ 2,991,268.76 $ (42,744.88) -1.4% Total General Purpose & Debt Service $ 19,477,199.92 $ 19,788,204.26 $ 311,004.34 1.6% The total 2016 tax levy would increase by $311,004.34 (or 1.6%) compared to the 2015 tax levy by extending a property tax on the increases in assessed valuation related to TIE #1 property increment ($17.6 million) and new construction ($12.5 million). The levy includes an increase of $125,000 for the library. Page 4 of 7 Alternative #3: Increase Levy for Police Pension, Fire Pension and Library 2016 Property Tax Levy 2015 2016 Levy Levy 2016 vs 2015 Actual Estimated Dollar % FY2016-17 FY2017-18 Change Change General Purpose Levy General Corporate $ 9,310,442.28 $ 9,292,442.28 $ (18,000.00) -0.2% Police Pension $ 2,378,653.00 $ 2,744,782.00 $ 366,129.00 15.4% Fire Pension $ 1,104,091.00 $ 1,452,575.00 $ 348,484.00 31.6% Total $ 12,793,186.28 $ 13,489,799.28 $ 696,613.00 5.5% Library $ 3,650,000.00 $ 3,775,000.00 $ 125,000.00 3.4% Total General Purpose Levy $ 16,443,186.28 $ 17,264,799.28 $ 821,613.00 5.0% Debt Service Levy Debt Service $ 3,034,013.64 $ 2,991,268.76 $ (42,744.88) -1.4% Total General Purpose & Debt Service $ 19,477,199.92 $ 20,256,068.04 $ 778,868.12 4.0% The total 2016 tax levy would increase by $778,868.12 (or 4.0%) compared to the 2015 tax levy. The levy includes the increases for the annual required contributions to the police and fire pension plans, and library. Alternative #4: No Increase in Total Levy from prior year 2016 Property Tax Levy 2015 2016 Levy Levy 2016 vs 2015 Actual Estimated Dollar FY2016-17 FY2017-18 Change Change General Purpose Levy General Corporate $ 9,310,442.28 $ 8,638,574.16 $ (671,868.12) -7.2% Police Pension $ 2,378,653.00 $ 2,744,782.00 $ 366,129.00 15.4% Fire Pension $ 1,104,091.00 $ 1,452,575.00 $ 348,484.00 31.6% Total $ 12,793,186.28 $ 12,835,931.16 $ 42,744.88 0.3% Library $ 3,650,000.00 $ 3,650,000.00 $ - 0.0% Total General Purpose Levy $ 16,443,186.28 $ 16,485,931.16 $ 42,744.88 0.3% Debt Service Levy Debt Service $ 3,034,013.64 $ 2,991,268.76 $ (42,744.88) -1.4% Total General Purpose & Debt Service $ 19,477,199.92 $ 19,477,199.92 $ - 0.0% The total 2016 tax levy would be the same as the 2015 tax levy. Page 5 of 7 Equalized Assessed Valuation The City’s 2016 equalized assessed value (EAV) is conservatively estimated to increase $56.5 million (or 3%) from $1,883,310,764 to $1,939,810,087. The $56.5 million increase consists of an increase of $12.5 million (or 0.7%) for new construction, $17.6 million (or 0.9%) for TIF #1, and the remainder of $26.4 million (or 1.4%) of base growth. The City does not receive the actual 2016 EAV until March 2017. In 2015, Residential properties accounted for $1.6 billion (or 83%) of the total EAV with Commercial property comprising $308 million (or 16.4%), Industrial property $9.4 million (or 0.5%) and Railroad at $1.5 million (or 0.1%). Equalized Assessed Valuation ariii Property Type 2011 2012 2013 2014 2015 1. Residential $ 1,702,162,832 $ 1,582,322,176 $ 1,515,222,855 $ 1,511,354,272 $ 1,564,260,751 83.06% Commercial $ 330,410,891 $ 321,945,516 $ 314,450,652 $ 299,182,067 $ 308,118,039 16.36% Industrial $ 10,549,082 $ 9,886,610 $ 9,418,350 $ 9,358,390 $ 9,401,320 0.50% Railroad $ 916,892 $ 990,399 $ 1,222,993 $ 1,275,136 $ 1,530,654 0.08% Total $ 2,044,039,697 $ 1,915,144,701 $ 1,840,314,850 $ 1,821,169,865 $ 1,883,310,764 100.00% $ change prior year $ (124,260,785) $ (128,894,996) $ (74,829,851) $ (19,144,985) $ 62,140,899 % changer prior year -5.7% -6.3% -3.9% -1.0% 3.4% Property Tax Rates The following table presents the estimated 2016 property tax rate for each of the alternatives. The tax rate is calculated by dividing the 2016 levy amount by the 2016 estimated EAV. Property Tax Rates (Per $100 of assessed value) Alt #1 Alt #2 Alt #3 Alt #4 2015 2016 2016 2016 2016 Actual Estimated Estimated Estimated Estimated General Purpose General Corporate $ 0.4944 $ 0.4431 $ 0.4549 $ 0.4790 $ 0.4453 Police Pension $ 0.1263 $ 0.1415 $ 0.1415 $ 0.1415 $ 0.1415 Fire Pension - $ 0.0586 $ 0.0749 $ 0.0749 $ 0.0749 $ 0.0749 Total $ 0.6793 $ 0.6595 $ 0.6713 $ 0.6954 $ 0.6617 Library $ 0.1938 $ 0.1946 $ 0.1946 $ 0.1946 $ 0.1882 Total General Purpose Rate $ 0.8731 $ 0.8541 $ 0.8659 $ 0.8900 $ 0.8499 Debt Service Rate $ 0.1611 $ 0.1542 $ 0.1542 $ 0.1542 $ 0.1542 Total Property Tax Rate $ 1.0342 $ 1.0083 $ 1.0201 $ 1.0442 $ 1.0041 2016 vs 2015 Amount Change $ (0.0259) $ (0.0141) $ 0.0100 $ (0.0301) 2016 vs 2015 % Change -2.5% -1.4% 1.0% -2.9% Page6of7 Financial Impact on Homeowner The following table illustrates the annual financial impact in property taxes for each property tax levy alternatives. Annual Property Tax Impact Residential Property Fair Cash Value I Alt #1 Alt #2 Alt #3 Alt #4 $ 300,000 $ (12) $ 0 $ 25 $ (16) $ 350,000 $ (14) $ 0 $ 29 $ (19) $ 400,000 $ (16) $ 0 $ 33 $ (21) $ 450,000 $ (18) $ 0 $ 37 $ (24) The financial impact of the tax rate on a residential property owner depends on the change in the assessed value of their property from 2015 to 2016. For uniformity and discussion purposes, the table assumes the assessed value of all residential properties has a base growth increase of 1.4%. As an example, for alternative #1, a residential home with a 2015 fair cash value of $350,000 and a 1.4% increase in assessed value for 2016, could potentially see a reduction of $14 in the City’s portion of their tax bill. Summary of Alternatives 2016 vs 2015 Actual Alt #1 Alt #2 Alt #3 Alt #4 Alt #1 Alt #2 Alt #3 Alt #4 20Th 2016 2016 2016 2016 Amount % Amount % Amount % Amount % Levy $ 19,477,200 $ 19,559,455 $ 19,788,204 $ 20,256,068 $ 19,477,200 $ 82,255 0.4% $311,004 1.6% $778,868 40% $ - 0.0% Tax Rate $ 1.0342 $ 1.0083 $ 1.0201 $ 1.0442 $ 1.0041 $(0.0259) -2.5% $ (0.0141) -1.4% $ 0.0100 1.0% $(0.0301) -2.9% The first reading of the 2016 Property Tax Levy Ordinance and Tax Abatement Ordinance are scheduled for the December 5, 2016 City Council Meeting. Final adoption will be at the December 19, 2016 City Council Meeting. The 2016 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. The City Council has the flexibility to adopt any of the tax levy alternatives and abate it prior to finalizing the property tax extensions. The deadline to abate the adopted tax levy is the third week of March, 2017. Page 7 of 7  Robert R. Lehrxhardt Director of Finance Memorandum To: Michael G. Dzugan, City Manager Date: November 21, 2016 Subject: 2016 SSA #2 CBD Parking Enforcement Tax Levy - Estimate Background The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. In addition, if the proposed levy increase is greater than 5%, the City is required to publish a notice and conduct a public hearing prior to the adoption of the levy. To meet this statutory requirement, the estimated 2016 SSA #2 Property Tax Levy is scheduled for discussion at the November 28, 2016 City Council Planning Session. 2016 SSA #2 Property Tax Levy Attached are the tax levy and appropriation ordinances for Special Service Area Number Two, which was established in 1983 to provide parking enforcement services within the Central Business District. The ordinance establishing SSA #2 allowed a maximum tax rate of $0.30 per $100 of assessed value. The total parking enforcement services budget is $77,127 for fiscal year 2016/17. The TIF District #1 expires on December 31, 2016 and will no longer generate incremental property taxes after 2016. The Equalized Assessed Valuation is estimated to increase $10.0 million, with $10.0 million of the increase due to the addition of TIF District #1 incremental assessed valuation to properties within SSA #2. The 2016 proposed tax levy of $39,000 is slightly below the 2015 levy and would produce a tax rate of $0.1685. 2016 Tax Levy SSA#2 2015 2016 Levy Levy 2016 vs 2015 Levy Actual Estimate Dollar % FY 2016-17 FY 2017-18 Change Change Equalized Assessed Valuation $ 13,113,810 $ 23,144,143 $ 10,030,333 76.5% Levy Amount $ 39,341.43 $ 39,000.00 $ (341.43) -0.9% Calculated Tax Rate $ 0.3000 $ 0.1685 $ (0.1315) -43.8% Levy Extended Amount - Calculated Tax Rate $ 39,341.43 $ 39,000.00 $ (341.43) -0.9% Tax Rate Cap $ 0.3000 $ 0.3000 Levy Extended Amount Tax Rate Cap - $ 39,341.43 $ 69,432.43 $ 30,091.00 76.5% Page 1 of 2 The following chart illustrates the SSA #2 tax levy for the past five years and the 2016 estimated tax levy. The TIF District #1 expires on December 31, 2016 and will no longer generate incremental property taxes after 2016. The Equalized Assessed Valuation is estimated to increase $10.0 million, with $10.0 million of the increase due to the addition ofTIF District #1 incremental assessed valuation to properties within SSA #2. SSA #2 Tax Levy Past 5 Years and 2016 Estimated Requested Tax Actual Levy Frozen EAV Tax Tax Rate Tax Tax Year EAV % Change Levy Rate Cap Levy Rate 2011 $ 13,041,066 -2.5% $ 42,000.00 $0.3221 $0.3000 $39,123.20 $0.3000 2012 $ 12,980,340 -0.5% $ 41,000.00 $0.3159 $0.3000 $38,941.02 $0.3000 2013 $ 12,859,970 -0.9% $ 40,850.00 $0.3177 $0.3000 $38,579.91 $03000 2014 $ 13,241,340 3.0% $ 40,450.00 $0.3055 $0.3000 $39,724.02 $03000 2015 $ 13,113,810 -1.0% $ 41,700.00 $0.3180 $0.3000 $39,341.43 $03000 2016 $ 23,144,143 78.4% $ 39,000.00 $0.1685 $0.3000 $39,000.00 $0.1685 The first reading of the 2016 SSA #2 Property Tax Levy and Appropriations Ordinance are scheduled for the December 5, 2016 City Council Meeting. Final adoption will be at the December 19, 2016 City Council Meeting. The 2016 SSA #2 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. Page 2 of 2  ORDINANCE NO. F- AN ORDINANCE MAKING APPROPRIATIONS FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER TWO FOR THE FISCAL YEAR BEGINNING MAY 1, 2016 AND ENDING APRIL 30, 2017 BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Two has been created by an ordinance entitled, “An Ordinance Establishing the Wheaton Special Service Area Number Two”, adopted February 8, 1983, and effective as of February 9, 1983, no petition having been filed opposing the creation of the special service area, pursuant to Public Act 88- 455. Special Service Area Number Two consists of the territory described in the ordinance aforesaid. The City of Wheaton is now authorized to levy taxes for special services in said special service area. Section 2: The following sums are hereby appropriated to pay the necessary expenses of Special Service Area Number Two for the fiscal period beginning May 1, 2016 and ending April 30, 2017, such appropriations being for the following objects and purposes: APPROPRIATIONS SPECIAL TAX DISTRICT NUMBER TWO Enforcement Services $39,000 TOTAL APPROPRIATIONS $39,000 Section 3: All ordinances or parts of ordinances in conflict with these provisions are repealed. Section 4: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk  Ordinance No. F Page 2 Roll Call Vote Ayes: Nays: Absent: Passed: December 19, 2016 Published: December 20, 2016  ORDINANCE NO. F- AN ORDINANCE FOR THE LEVY AND ASSESSMENT OF TAXES FOR THE FISCAL YEAR BEGINNING MAY 1, 2016 AND ENDING APRIL 30, 2017 IN AND FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER TWO BE IT ORDAINED BY THE Mayor and City Council of the City of Wheaton, Illinois, pursuant to its home rule powers, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Two has been created by an ordinance entitled, “An Ordinance Establishing City of Wheaton Special Service Area Number Two”, adopted February 8, 1983, and effective as of February 9, 1983, no petition having been filed opposing the creation of the special service area, pursuant to Public Act 88- 455. Special Service Area Number Two consists of the territory described in the ordinance aforesaid. The City of Wheaton is authorized to levy taxes for special services in Special Service Area Number Two. Section 2: The total amount of appropriations for all the purposes to be collected from the tax levy of the current fiscal year in Special Service Area Number Two is ascertained to be the sum of $39,000. Section 3: The following sums shall be levied upon the taxable property as defined in Public Act 8 8-455, in the City of Wheaton Special Service Area Number Two; said tax to be levied for the fiscal year beginning May 1, 2016, and ending April 30, 2017. PARKING FUND Enforcement Services $39,000 TOTAL LEVY $39,000 Section 4: This tax is levied pursuant to Public Act 88-455 and pursuant to An Ordinance Establishing City of Wheaton Special Service Area Number Two. Section 5: The $39,000 tax levy is certified to the County Clerk of DuPage County, Illinois. The City of Wheaton detennines this $39,000 tax levy to be the total amount required to be raised by taxation for the current fiscal year of the City for Special Service Area Number Two. The City Clerk of Wheaton, Illinois, is ordered and directed to file with the County Clerk of DuPage County, on or before the time required by law, a certified copy of this ordinance. Section 6: All ordinances or parts of ordinances in conflict with these provisions are repealed.  Ordinance No. F- Page 2 Section 7: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk Roll Call Vote Ayes: Nays: Absent: Passed: December 19, 2016 Published: December 20, 2016  Robert P. tehnhordt Director of FThorce Memorandum To: Michael G. Dzugan, City Manager Date: November 21, 2016 Subject: 2016 SSA #3 Streams Subdivision Maintenance Tax Levy Estimate - Background The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. In addition, if the proposed levy increase is greater than 5%, the City is required to publish a notice and conduct a public hearing prior to the adoption of the levy. To meet this statutory requirement, the estimated 2016 SSA #3 Property Tax Levy is scheduled for discussion at the November 28, 2016 City Council Planning Session. 2016 SSA #3 Property Tax Levy Attached are the tax levy and appropriation ordinances for Special Service Area Number Three, which was established in 1987 to provide maintenance of open spaces within the Streams Subdivision. The ordinance establishing SSA #3 allowed a maximum tax rate of $.15 per $100 of assessed value. The 2016 proposed tax levy of $12,000 is slightly below the 2015 levy. With an estimated 1% increase in equalized assessed value in SSA #3, the levy would produce a tax rate of $0258. 2016 Tax Levy SSA #3 2015 2016 2016 vs 2015 Levy Actual Estimate Dollar % FY2016-17 FY2017-18 Change Change Equalized Assessed Valuation $ 45,989,327 $ 46,449,220 $ 459,893 1.0% Levy Amount $ 12,141.18 $ 12,000.00 $ (141.18) -1.2% Calculated Tax Rate $ 0.0264 $ 0.0258 $ (0.0006) -2.1% Levy Extended Amount - Calculated Tax Rate $ 12,141.18 $ 12,000.00 $ (141.18) -1.2% Tax Rate Cap $ 0.1500 $ 0.1500 $ - 0.0% Levy Extended Amount Tax Rate Cap - $ 68,983.99 $ 69,673.83 $ 689.84 1.0% Page 1 of 2 The following chart illustrates the SSA #3 tax levy for the past five years and 2016 estimated tax levy. The City has been well below the tax cap the past five years. SSA#3 Tax Levy Past 5 Years and 2016 Estimated Requested Tax Actual Levy EAV Tax Tax Rate Tax Tax Year EAV % Change Levy Rate Cap Levy Rate 2011 $55,277,672 -6.6% $18,000.00 $0.0326 $0.1500 $ 18,186.35 $ 0.0329 2012 $51,272,418 -7.2% $12,550.00 $00245 $0.1500 $ 12,715.56 $ 0.0248 2013 $48,708,833 -5.0% $12,715.00 $0.0264 $0.1500 $ 12,859.13 $ 0.0264 2014 $48,687,088 0.0% $12,000.00 $0.0246 $0.1500 $ 12,123.08 $ 0.0249 2015 $45,989,327 -5.5% $12,000.00 $0.0261 $0.1500 $ 12,141.18 $ 0.0264 2016 $46,449,220 1.0% $12,000.00 $0.0258 $0.1500 $ 12,000.00 $ 0.0258 The first reading of the 2016 SSA #3 Property Tax Levy and Appropriations Ordinance are scheduled for the December 5, 2016 City Council Meeting. Final adoption will be at the December 19, 2016 City Council Meeting. The 2016 SSA #3 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. Page 2 of 2  ORDINANCE NO. F- AN ORDINANCE MAKING APPROPRIATIONS FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER THREE FOR THE FISCAL YEAR BEGINNING MAY 1, 2016 AND ENDING APRIL 30, 2017 BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Three has been created by an ordinance entitled, “An Ordinance Establishing the Wheaton Special Service Area Number Three Streams”, adopted August 24, 1987, and effective as of August 25, 1987, no -- petition having been filed opposing the creation of the special service area, pursuant to Public Act 88-455. Special Service Area Number Three consists of the territory described in the ordinance aforesaid. The City of Wheaton is now authorized to levy taxes for special services in said special service area. Section 2: The following sums are hereby appropriated to pay the necessary expenses of Special Service Area Number Three for the fiscal period beginning May 1, 2016 and ending April 30, 2017, such appropriations being for the following objects and purposes: APPROPRIATIONS SPECIAL TAX DISTRICT NUMBER THREE Maintenance Expenses $12,000 TOTAL APPROPRIATIONS $12,000 Section 3: All ordinances or parts of ordinances in conflict with these provisions are repealed. Section 4: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk  Ordinance No. F Page 2 Roll Call Vote Ayes: Nays: Absent: Passed: December 19, 2016 Published: December 20, 2016  ORDINANCE NO. F- AN ORDINANCE FOR THE LEVY AND ASSESSMENT OF TAXES FOR THE FISCAL YEAR BEGINNING MAY 1, 2016 AND ENDING APRIL 30, 2017, IN AND FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER THREE BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, pursuant to its home rule powers, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Three has been created by an ordinance entitled, “An Ordinance Establishing City of Wheaton Special Service Area Number Three Streams”, adopted August 24, 1987, and effective as of August 25, 1987, -- no petition having been filed opposing the creation of the special service area, pursuant to Public Act 8 8-455. Special Service Area Number Three consists of the territory described in the ordinance aforesaid. The City of Wheaton is authorized to levy taxes for special services in Special Service Area Number Three. Section 2: The total amount of appropriations for all the purposes to be collected from the tax levy of the current fiscal year in Special Service Area Number Three is ascertained to be the sum of$12,000. Section 3: The following sums shall be levied upon the taxable property as defined in Public Act 8 8-455, in the City of Wheaton Special Service Area Number Three; said tax to be levied for the fiscal year beginning May 1, 2016, and ending April 30, 2017. Maintenance Expenses $12,000 TOTAL LEVY $12,000 Section 4: This tax is levied pursuant to Public Act 88-455 and pursuant to An Ordinance Establishing City of Wheaton Special Service Area Number Three. Section 5: The $12,000 tax levy is certified to the County Clerk of DuPage County, Illinois. The City of Wheaton determines this $12,000 tax levy to be the total amount required to be raised by taxation for the current fiscal year of the City for Special Service Area Number Three. The City Clerk of Wheaton, Illinois, is ordered and directed to file with the County Clerk of DuPage County, on or before the time required by law, a certified copy of this ordinance. Section 6: All ordinances or parts of ordinances in conflict with these provisions are repealed. Section 7: This ordinance shall become effective from and afler its passage, approval, and publication in the manner prescribed by law.  Ordinance No. F Page 2 Mayor ATTEST: City Clerk Roll Call Vote Ayes: Nays: Absent: Passed: December 19, 2016 Published: December20, 2016  RobertR. Lehnhardt Director of Finance Memorandum To: Michael G. Dzugan, City Manager Date: November 21, 2016 Subject: 2016 SSA #7 CBD Promotional and Management Services Tax Levy-Estimate Background The City is required by State Statute (Truth in Taxation Act) to estimate the amount of taxes to be levied by not less than 20 days prior to the adoption of the tax levy. In addition, if the proposed levy increase is greater than 5%, the City is required to publish a notice and conduct a public hearing prior to the adoption of the levy. To meet this statutory requirement, the estimated 2016 SSA #7 Property Tax Levy is scheduled for discussion at the November 28, 2016 City Council Planning Session. Also, due to the proposed 2016 SSA #7 Property Tax Levy being greater than 5%, the City will be required to publish a notice and conduct a public hearing on December 12, 2016. 2016 SSA #7 Property Tax Levy Attached are the tax levy and appropriation ordinances for Special Service Area Number Seven, which was established in 2011 to provide management, maintenance, and promotional services in the Central Business District. The ordinance establishing SSA #7 allowed a maximum tax rate of $.45 per $100 of assessed value for a maximum of seven levy years. The 2016 proposed tax levy of $110,000 is set to collect the maximum amount available from the $.45 tax rate cap and to recover the SSA #7 funds that were previously captured from TIE District #1. The TIF District #1 expires on December 31, 2016 and will no longer generate incremental property taxes after 2016. The Equalized Assessed Valuation is estimated to increase $5.4 million, with $5.0 million of the increase due to the addition of TIF District #1 incremental assessed valuation to properties within SSA #7. The estimated amount to be collected would be $106,210.90. 2016 Tax Levy SSA #7 2015 2016 2016 vs 2015 Levy Actual Estimate Dollar % FY2016-17 FY2017-18 Change Change Equalized Assessed Valuation $ 18,249,039 $ 23,602,423 $ 5,353,384 29.3% Levy Amount $ 82,120.68 $ 110,000.00 $ 27,879.32 34.0% Calculated Tax Rate $ 0.4500 $ 0.4661 $ 0.0161 3.6% Levy Extended Amount Calculated Tax Rate - S 82,120.68 $ 110,000.00 $ 27,879.32 . . 33.9% Tax Rate Cap $ 0.4500 $ 0.4500 $ - 0.0% Levy Extended Amount Tax Rate Cap - $ 82,120.68 $ 106,210.90 $ 24,090.23 29.3% Page 1 of 2 The following chart illustrates the SSA #7 tax levy since inception and the 2016 estimated tax levy. SSA #7 Tax Levy Since Inception and 2016 Estimated Requested Tax Actual Levy Frozen EAV Tax Tax Rate Tax Tax Year EAV % Change Levy Rate Cap Levy Rate 2011 $19,539,126 $100,000.00 $o.5118 $o.4500 $ 87,926.07 $0.4500 2012 $18,927,490 -3.1% $ 92,000.00 $o.4861 $0.4500 $ 85,173.71 $o.4500 2013 $18,385,870 -2.9% $ 89,400.00 $0.4862 $o.4500 $ 82,736.42 $0.4500 2014 $18,231,119 -0.8% $ 86,800.00 $o.4761 $o.4500 $ 82,040.04 $0.4500 2015 $18,249,039 0.1% $ 86,140.00 $0.4720 $0.4500 $ 82,120.68 $0.4500 2016 $23,602,423 29.3% $110,000.00 $o.4661 $0.4500 $106,210.90 $0.4500 The first reading for the 2016 SSA #7 Property Tax Levy and Appropriations Ordinance are scheduled for the December 5, 2016 City Council Meeting. Final adoption will be at the December 19, 2016 City Council Meeting. The 2016 SSA #7 Property Tax Levy needs to be filed with the County by the last Tuesday in December, as required by State Statute. Page 2 of 2  ORDINANCE NO. F- AN ORDINANCE MAKING APPROPRIATIONS FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER SEVEN FOR THE FISCAL YEAR BEGINNING MAY 1, 2016 AND ENDING APRIL 30, 2017 BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Seven has been created by an ordinance entitled, “An Ordinance Establishing the Wheaton Special Service Area Number Seven”, adopted and effective as of December 19, 2011, no valid petition having been filed opposing the creation of the special service area, pursuant to Public Act 8 8-455. Special Service Area Number Seven consists of the territory described in the ordinance aforesaid. The City of Wheaton is now authorized to levy taxes for special services in said special service area. Section 2: The following sums are hereby appropriated to pay the necessary expenses of Special Service Area Number Seven for the fiscal period beginning May 1, 2016 and ending April 30, 2017, such appropriations being for the following objects and purposes: APPROPRIATIONS SPECIAL TAX DISTRICT NUMBER SEVEN Management, Maintenance and Promotion Expenses $110,000 TOTAL APPROPRIATIONS $110,000 Section 3: All ordinances or parts of ordinances in conflict with these provisions are repealed. Section 4: This ordinance shall become effective from and after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk  Ordinance No. F- Page 2 Roll Call Vote Ayes: Nays: Absent: Passed: December 19, 2016 Published: December 20, 2016  ORDINANCE NO. F- AN ORDINANCE FOR THE LEVY AND ASSESSMENT OF TAXES FOR THE FISCAL YEAR BEGINNING MAY 1, 2016 AND ENDING APRIL 30, 2017, IN AND FOR THE CITY OF WHEATON SPECIAL SERVICE AREA NUMBER SEVEN BE IT ORDAINED by the Mayor and City Council of the City of Wheaton, Illinois, as follows: Section 1: Findings. The City of Wheaton Special Service Area Number Seven has been created by an ordinance entitled, “An Ordinance Establishing City of Wheaton Special Service Area Number Seven”, adopted and effective as of December 19, 2011, no valid petition having been filed opposing the creation of the special service area, pursuant to Public Act 8 8-455. Special Service Area Number Seven consists of the territory described in the ordinance aforesaid. The City of Wheaton is authorized to levy taxes for special services in Special Service Area Number Seven. Section 2: The total amount of appropriations for all the purposes to be collected from the tax levy of the current fiscal year in Special Service Area Number Seven is ascertained to be the sum of $110,000. Section 3: The following sums shall be levied upon the taxable property as defined in the Public Act 88-455, in the City of Wheaton Special Service Area Number Seven; said tax to be levied for the fiscal year beginning May 1, 2016, and ending April 30, 2017. Management, Maintenance and Promotion Expenses $110,000 TOTAL LEVY SI 10,000 Section 4: This tax is levied pursuant to Public Act 88-455 and pursuant to An Ordinance Establishing City of Wheaton Special Service Area Number Seven. Section 5: The $1 10,000 tax levy is certified to the County Clerk of DuPage County, Illinois. The City of Wheaton determines this S 110,000 tax levy to be the total amount required to be raised by taxation for the current fiscal year of the City for Special Service Area Number Seven. The City Clerk of Wheaton, Illinois, is ordered and directed to file with the County Clerk of DuPage County, on or before the time required by law, a certified copy of this ordinance. Section 6: All ordinances or parts of ordinances in conflict with these provisions are repealed.  Ordinance No. F- Page 2 Section 7: This ordinance shall become effective from or after its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk Roll Call Vote Ayes: Nays: Absent: Passed: December 19, 2016 Published: December 20, 2016  MEMORANDUM TO: Record FROM: Susan Bishel, Public Relations Coordinator SUBJECT: Nov. 28, 2016 City Council Planning Session Minutes DATE: Nov. 29, 2016 CC: Mayor and City Council, City Manager, City Clerk, Department Heads The Planning Session took place in the Council Chambers, Wheaton City Hall, 303 W. Wesley St., Wheaton, Illinois. Those attending the Planning Session included: Mayor Gresk, Councilman Prendiville, Councilman Rutledge, Councilman Scalzo and Councilman Suess. Councilwoman Fitch and Councilman Saline were absent. Also in attendance were City Manager Dzugan, Assistant City Manager Duguay, Director of Finance Lehnhardt, Library Director Adamowski and Public Relations Coordinator Bishel. The session began at 7:00 p.m. and concluded at 8:12 p.m. The following items were discussed: I. Call to Order The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Gresk. II. Approval of Minutes – November 14, 2016 The Council approved the November 14, 2016 Planning Session Minutes. III. Public Comment Joe Mahady, 927 N. Washington, spoke about the proposed project on Roosevelt Road and West Street (which was formerly Powershares) and expressed concern this would become a non-taxable property for the City. Mr. Mahady also stated he would like the City Council to consider enacting an ordinance that would require a temporary property tax freeze for properties surrounding a new home so neighboring properties do not experience an immediate increase in real estate taxes when a new home is built. He also suggested the City consider building another water tower, and he suggested the City Council not raise the property tax levy and work to become less reliant on revenue from the state of Illinois. IV. 2016 Property Tax Levy City Manager Dzugan reviewed the tax levy process that the City is required to follow, which includes discussing the levy at least 20 days before adoption. The City Council will vote on the levy at its Dec. 19 meeting. The City can choose to abate any or all of the levy adopted in March. City Manager Dzugan identified two major additional expenditures for inclusion in the 2017/18 Budget: $125,000 for library operations and $714,613 to fund the police and fire pensions, as recommended by the most recent actuarial report. The library is asking for additional funds for its operations, which would bring its budget to approximately the same level as it was in 2008 before significant cuts were made during the economic downturn. To make the City’s fiscal year match the property tax levy adoption timing, City Manager Dzugan stated he believed it would be very beneficial to have the City’s fiscal year begin on Jan. 1. This would alleviate problems the City faces in trying to set the tax levy without fully knowing the necessary expenditures for the next year’s budget. He stated the staff has a goal to move to a calendar year budget within the next few years. City Manager Dzugan stated in 2015, the City levied a property tax with increases equal to pension obligation increases plus $300,000, and the City Council abated the $300,000 in March 2016. City Manager Dzugan reviewed the City’s projections for its major revenue sources and expenditures. City staff estimates that the City’s expenditures will begin to exceed its revenues by Fiscal Year 2020/21 assuming no increase in revenues and a 2% increase in annual expenditures. The City is working to complete a Capital Improvements Plan, which will require about $5 million or more per year to complete the projects identified in the plan. In response to Council questions about library operations, Library Director Adamowski stated the increased spending in the past year was supported by a $100,000 donation to the library and gift money from the Friends of the Wheaton Public Library. She stated the additional expenditures requested for the next fiscal year would help the library increase its spending on collections to its desired level and bring salaries up to market standard levels. Director of Finance Lehnhardt reviewed some of the major sources of General Fund revenue. He stated the staff has concerns because some of these sources are trending downward, including sales, utility, and local income taxes. In response to Council questions, Director of Finance Lehnhardt stated the decrease in sales tax could be partly due to people buying more online and a downward trend in food sales, though it’s hard to make generalizations because the City does not receive information on individual businesses. Director of Finance Lehnhardt stated income tax revenue could be down because of tax credits. Director of Finance Lehnhardt presented four tax levy alternatives for the City Council’s consideration. In Alternative 1, the City would increase the levy to equal the additional amount requested for library operations. In this option, a home assessed at $450,000 in value would see an $18 increase in their taxes levied by the City. In response to Council questions on the City’s contributions to the Illinois Municipal Retirement Fund, City Manager Dzugan stated the amount the City’s contribution rate will decrease approximately 7.8%, which will save the City approximately $100,000. Alternative 2 would increase the levy to equal the amount of increased assessed value due to the expiration of TIF 1 and new construction. This option would increase the tax levy by $311,004. In response to Council questions, Director of Finance Lehnhardt stated new construction and added TIF assessed value would absorb the levy increase. 11/28/16 Planning Session 2 Alternative 3 would increase the tax levy by $778,868, which would equal the increase for police and fire pensions and library operations. Alternative 4 Would not increase the total levy. It would lower the amount paid by property owners. In response to Council questions, Director of Finance Lehnhardt stated the City’s estimates for property tax assessment increases comes from the Milton Township assessor. This year’s projection is for an increase of 3%. Director of Finance Lehnhardt reviewed the proposed levies for Special Service Area #2 and Special Service Area #3, both of which represent slight decreases. The City proposes an increase in the amount levied for Special Service Area #7, but the increase is because of a change to how the funding is collected now that TIF 1 expired. The Council expressed support for the proposed levies for the Special Service Areas. Some Council members expressed a desire to choose Alternative 2 or Alternative 3 for the tax levy to keep up with increasing expenditures related to capital projects, service levels, and pension obligations. Other Council members spoke in favor of Alternative 4, and looking to cut expenditures rather than raising property taxes. The Council discussed options for reducing expenditures. In response to a Council question about the number of positions added back since the City cut more than 30 positions in 2008 and 2009, Assistant City Manager Duguay stated there have been 2 positions added. The majority of the Council stated they were comfortable with Alternative 2, though one Council member expressed preference for Alternative 3 and one Council member expressed preference for Alternative 4. V. City Council/Staff Comments Councilman Scalzo thanked the Downtown Wheaton Association for putting on another successful Wheaton Christmas Parade on Nov. 25. VI. Adjournment The meeting was adjourned at 8:12 p.m. 11/28/16 Planning Session 3  MEMORANDUM TO: Record FROM: Susan Bishel, Public Relations Coordinator SUBJECT: Nov. 28, 2016 City Council Planning Session Minutes DATE: Nov. 29, 2016 CC: Mayor and City Council, City Manager, City Clerk, Department Heads The Planning Session took place in the Council Chambers, Wheaton City Hall, 303 W. Wesley St., Wheaton, Illinois. Those attending the Planning Session included: Mayor Gresk, Councilman Prendiville, Councilman Rutledge, Councilman Scalzo and Councilman Suess. Councilwoman Fitch and Councilman Saline were absent. Also in attendance were City Manager Dzugan, Assistant City Manager Duguay, Directàr of Finance Lehnhardt, Library Director Adamowski and Public Relations Coordinator Bishel The session began at 7 00 p m and concluded at 8:12 p.m. The following items were discussed: I Call to Order The Wheaton City Council Planning Session was called to’order at 7:00 p.m. by Mayor Gresk. II. Approval of Minutes November 14, 2016 — The Council approved the November 14, 2016 Planning Sesn Minutes. Ill. Public Comment Joe Mahady, 927 N. Washington, poke about the proposed project on Roosevelt Road and West Street (which was formerly Powershares) and expressed concern this would become a non-taxable property for the City. Mr. Mahady also stated he would like the City Council to consider enacting an ordinance that would require a temporary property tax freeze for properties surrounding a new home so neighboring properties do not experience an immediate increase in real estate taxes when a new home is built. He also suggested the City consider building another watertower, and he suggested the City Council not raise the property tax levy and work to become less reliant on revenue from the state of Illinois. IV. 2016 Property TaxLevy City Manager Dzugan reviewd the tax levy process that the City is required to follow, which includes discussing the levy at least 20 days before adoption. The City Council will vote on the levy at its Dec. 19 meeting. The City can choose to abate any or all of the levy adopted in March. City Manager Dzugan identified two major additional expenditures for inclusion in the 2017/18 Budget: $125,000 for library operations and $714,613 to fund the police and fire pensions, as recommended by the most recent actuarial report. The library is asking for additional funds for its operations, which would bring its budget to approximately the same level as it was in 2008 before significant cuts were made during the economic downturn. To make the City’s fiscal year match the property tax levy adoption timing, City Manager Dzugan stated he believed it would be very beneficial to have the City’s fiscal year begin on Jan. 1. This would alleviate problems the City faces in trying to set the tax levy without fully knowing the necessary expenditures for the next year’s budget. He stated the staff has a goal to move to a calendar year budget within the next few years. City Manager Dzugan stated in 2015, the City levied a property tax with increases equal to pension obligation increases plus $300,000, and the City Council abated the $300,000 in March 2016. City Manager Dzugan reviewed the City’s projections for its major revenue sources and expenditures. City staff estimates that the City’s expenditures will begin to exceed its revenues by Fiscal Year 2020/21 assuming no increase in revenuesand a 2% increase in annual expenditures. The City is working to complete a Capital improvements Plan, which will require about $5 million or more per year to complete the projects identified in the plan. In response to Council questions about library operations, Library Directol Adamowski stated the increased spending in the past year was supported by a $100,000 donation to the library and gift money from the Friends of the Wheaton Public Library. She stated the additional expenditures requested for the next fiscal year would help the library increase its spending on collections to its desired level and bring salaries up to market standard levels. Director of Finance Lehnhardt reviewed some of the major sources of General Fund revenue He stated the staff has concerns because some of these sources are trending downward including sales utility and local ircome taxes In response to Council questions Director of Finance Lehnhardt stated the dectease in sales tax could be partly due to people buying more online and a downward tre?id i food sales, though it’s hard to make generalizations because the City does not receive info?nation on individual businesses Director of Finance Lehnhardt stated income tax revenue could be down because of tax credits Director of Finance Lehnhardt presented four tax levy alternatives for the City Council s consideration. In Alternative 1, the City would increase the levy to equal the additional amount requested for library operations. In this option, a home assessed at $450,000 in value would see an $18 increase in their taxes levied by the City In response to Council questions on the City’s contributions to the Illinois Municipal Retirement Fund, City Manager Dzugan stated the amount the City’s contribution rate will decrease approximately 7.8%, which will save the City approximately $100,000. Alternative 2 would increase the levy to equal the amount of increased assessed value due to the expiration of TIE 1 and new construction. This option would increase the tax levy by $31 1,004. In response to Council questions, Director of Finance Lehnhardt stated new construction and added TIE assessed value would absorb the levy increase. 11/28/16 Planning Session 2 Alternative 3 would increase the tax levy by $778,868, which would equal the increase for police and fire pensions and library operations. Alternative 4 Would not increase the total levy. It would lower the amount paid by property owners. In response to Council questions, Director of Finance Lehnhardt stated the City’s estimates for property tax assessment increases comes from the Milton Township assessor. This year’s projection is for an increase of 3%. Director of Finance Lehnhardt reviewed the proposed levies for Special Service Area #2 and Special Service Area #3, both of which represent slight decreases. The City proposes an increase in the amount levied for Special Service Area #7 but the increase is because of a change to how the funding is collected now that TIE 1;expired. The Council expressed support for the proposed levies for the Special Service Area Some Council members expressed a desire to choose Alternative 2 or Alternative 3 for the tax levy to keep up with increasing expenditures related to capital projects service levels and pension obligations Other Council members spoke in favor of Alternative 4 and looking to cut expenditures rather than raising propert The Council discussed options for reduci xpe res In response to a Council question about the number of positions added back s e thCity cut more than 30 positions in 2008 and 2009 Assistant City Manager Duguay stated $her have bèen 2 positions added The majority of the Council stated they were comfortable with Alternative 2, though one Council member expreése eference for Alter - 3 and one Council member expressed preference for Alterhative 4 V City Council/Staff Comments Councilman Scalzo thanked the Downtown Wheaton Association for putting on another successful Wheaton Christmas Parade on Nov. 25. VI Adjournment The meeting was adjourned at 8:12 p.m. 11/28/16 Planning Session 3