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Public Notices & Hearings

Regular Meeting

Wheaton, IL · December 12, 2016

AgendaMinutes

Minutes

WHEATON CITY COUNCIL PUBLIC HEARING MONDAY, DECEMBER 12, 2016 2016 SPECIAL SERVICE AREA #7 TAX LEVY I. Call to Order and Roll Call The public hearing of the Wheaton City Council was called to order at 7:00 p.m. The public hearing was held in the Council Chambers, Wheaton City Hall, 303 W. Wesley Street, Wheaton, Illinois. Upon roll call, the following were: Present: Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo Councilman Suess Absent: None City Staff Present: Michael Dzugan, City Manager John Duguay, Assistant City Manager James Kozik, Director of Planning & Economic Development Vincent Laoang, Director of Public Works Robert Lehnhardt, Director of Finance Paul Redman, Director of Engineering Russell Peacock, Project Engineer Susan Bishel, Public Relations Coordinator II. Public Hearing – 2016 Special Service Area #7 Tax Levy A. Introduction City Manager Dzugan stated the Special Service Area 7 was established to fund the Downtown Wheaton Association’s management and promotion of the downtown. A proposed increase to the tax levy requires a truth in taxation hearing. The proposed increase of 33% is due to the expiration of TIF 1 and is directly tied to the amount of revenue generated by TIF 1 that the City provided to fund the Downtown Wheaton Association. B. Public Comment Jim Mathieson of the Downtown Wheaton Association Board stated there has been a lot of positive change in the DWA in the past few years. He thanked the City for its support and stated the DWA is a great asset to the City. Mr. Mathieson stated the DWA has had great turnout to its events, including Ice Fest, Restaurant Week, Easter Egg Hunt, Vintage Rides, Wheaton Bike Fest, Wine Fest, Halloween Trick- or-Treating, Chili Fest and the Wheaton Christmas Parade. The DWA also supports community events like the Taste of Wheaton. He stated the net change is a neutral revenue change, and the DWA has been operating on the funding provided. Mr. Mathieson stated Executive Director Paula Barrington has done a great job leading the DWA. City Council Public Hearing December 12, 2016 Page 2 Ron Diener, DWA Treasurer, stated the Downtown Wheaton Association creates monthly reports on the organization’s finances, and the proposed budget for January will be available soon. He stated the DWA is moving toward events that are profitable to help fund the organization. Mr. Diener stated the Wine Fest was a fundraiser this year rather than a break-even event. Paula Barrington, Downtown Wheaton Association Executive Director, thanked the City Council and staff for their strong partnership and support. Ms. Barrington stated the organization is helping to create the downtown as a destination. She stated she has worked for the DWA for four years and would like to continue helping the organization succeed. C. Council Comment In response to Councilman Rutledge’s question, City Manager Dzugan confirmed that if this levy were not raised, the DWA would not receive the funding equivalent that was previously provided through TIF 1. Councilman Suess stated this is simply a reallocation of funds, with the funds going to the General Fund rather than coming out of TIF 1. Councilman Scalzo thanked the DWA, Ms. Barrington, Director of Planning & Economic Development Kozik and Councilman Saline for their work supporting the downtown. He stated this is a way that businesses are working well with the City. Councilman Prendiville thanked the DWA and stated downtown businesses are not the only ones that benefit from the DWA’s efforts. Councilwoman Fitch thanked Ms. Barrington for working very hard and working within the resources she is provided. She congratulated the DWA on bringing in $12,000 in profit from the Wine Fest this year. Mayor Gresk stated there has been a great shift in the DWA in the past five years, moving from event planning to business retention. D. Adjournment Councilman Suess moved and Councilman Scalzo seconded a motion to close the public hearing at 7:10 p.m. Roll Call Vote: Ayes: Councilman Suess Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo City Council Public Hearing December 12, 2016 Page 3 Nays: None Absent: None Motion Carried Unanimously The meeting was adjourned at 7:10 p.m. Respectfully submitted, Susan Bishel Public Relations Coordinator

Agenda

1. City Council Public Hearing Agenda Documents: 2016-12-12 CITY COUNCIL PUBLIC HEARING AGENDA.PDF 2. City Council Public Hearing Public Hearing - 2016 Special Service Area Number 7 Tax Levy Ph01 Documents: 2016-12-12 CITY COUNCIL PUBLIC HEARING PUBLIC HEARING - 2016 SPECIAL SERVICE AREA NUMBER 7 TAX LEVY PH01.PDF 3. City Council Public Hearing Minutes Documents: 2016-12-12 CITY COUNCIL PUBLIC HEARING MINUTES.PDF CITY OF WHEATON, ILLINOIS CITY COUNCIL PUBLIC HEARING MONDAY, DECEMBER 12, 2016 – 7:00 P.M. CITY COUNCIL CHAMBERS WHEATON CITY HALL, 303 W. WESLEY ST., WHEATON, IL AGENDA I. Call to Order and Roll Call II. Public Hearing – 2016 Special Service Area #7 Tax Levy A. Introduction B. Public Comment C. Council Comment D. Adjournment Robert R. Lehrthardt Director of Finance Memorandum To: Michael G. Dzugan, City Manager Date: December 6, 2016 Subject: 2016 SSA #7 CBD Promotiona’ and Management Services Tax Levy-Publlc Hearing gound The City Council discussed the 2016 SSA #7 Property Tax Levy at the November 28, 2016 City Council Planning Session and was on the agenda for a first reading at the December 5, 2016 City Council Meeting. The City is required by State Statute (Truth in Taxation Act) to publish a notice and conduct a public hearing prior to the adoption of the levy, if the proposed levy increase is greater than 5%. To meet this statutory requirement, the City will be conducting a public hearing on December 12, 2016 for SSA #7. Final adoption will be at the December 19, 2016 City Council Meeting. The 2016 SSA #7 Property Tax Levy is required by State Statute to be filed with the County by the last Tuesday in December. 2016 SSA #7 Propyy Special Service Area Number Seven was established in 2011 for funding the Downtown Wheaton Association (DWA) 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. 2OlGTax Levy SSA#7 2015 2016 2016 vs 2015 Levy Actual Estimate Dollar % FY 201647 FY 2017-18 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% The current 2015 tax levy, through SSA #7 and how a TIF works, provided total funding of $174,800 to the DWA, with $22,360 from TIE #1, $70,320 from TIE #2, and the remaining $82,120 from SSA #7. Due to the expiration of TIE #1, the 2016 proposed tax levy of $110,000 is set to collect the maximum amount available from the $.45 Page 1 of 2 tax rate cap and to recover the SSA #7 funds that were previously captured from TIF #1. The agreement entered between the City and the DWA agreed to “extend the SSA #7 funding in the amount of 0.45% of the assessed value of real property located in SSA 7...”. Increasing the levy meets the City’s funding obligation as set forth in the agreement. The Equalized Assessed Valuation is estimated to increase $5.4 million, with $5.0 million of the increase due to the addition of TIF #1 incremental assessed valuation to properties within SSA #7. Due to the tax rate cap, the estimated amount to be collected would be $106,210.90. The 2016 actual taxes paid by property owners within the boundaries of SSA #7 and TIF #1 is anticipated not increase as a result of the levy increase. 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 $0.5118 $0.4500 $ 87,926.07 $0.4500 2012 $18,927,490 -3.1% $ 92,000,00 $o.4861 $0.4500 $ 85,173.71 $04500 2013 $18,385,870 -2.9% $ 89,400.00 $o.4862 $o.4soo $ 82,736.42 $o.4500 2014 $18,231,119 -0.8% $ 86,800.00 $0.4761 $0.4500 $ 82,040.04 $04500 2015 $18,249,039 0.1% $ 86,140.00 $0.472o $0.4500 $ 82,120.68 $04500 2016 $23,602,423 29 3% $110,000 00 $0 4661 $0 4500 $106,210 90 $0 4500 Page 2 of 2 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 WIIEATON 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 88-455. 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 culTent 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 $110,000 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 $110,000 tax levy is certified to the County Clerk of DuPage County, Illinois. The City of Wheaton determines this $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. — C) Ci U) ci Cf] Ci U) ci — C C U) C U) ci U) C z CU) C) •i_ — CU) ,Cci H CC U) U) U) U)C U).— H H 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 flIed opposing the creation of the special service area, pursuant to Public Act 88455, Special Service Area Number Seven consists of the telTitory 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 afier its passage, approval, and publication in the manner prescribed by law. Mayor ATTEST: City Clerk a) 0 a) 0 C ci c) C riD riD C) riD ci ci z Q H WHEATON CITY COUNCIL PUBLIC HEARING MONDAY, DECEMBER 12, 2016 2016 SPECIAL SERVICE AREA #7 TAX LEVY I. Call to Order and Roll Call The public hearing of the Wheaton City Council was called to order at 7:00 p.m. The public hearing was held in the Council Chambers, Wheaton City Hall, 303 W. Wesley Street, Wheaton, Illinois. Upon roll call, the following were: Present: Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo Councilman Suess Absent: None City Staff Present: Michael Dzugan, City Manager John Duguay, Assistant City Manager James Kozik, Director of Planning & Economic Development Vincent Laoang, Director of Public Works Robert Lehnhardt, Director of Finance Paul Redman, Director of Engineering Russell Peacock, Project Engineer Susan Bishel, Public Relations Coordinator II. Public Hearing – 2016 Special Service Area #7 Tax Levy A. Introduction City Manager Dzugan stated the Special Service Area 7 was established to fund the Downtown Wheaton Association’s management and promotion of the downtown. A proposed increase to the tax levy requires a truth in taxation hearing. The proposed increase of 33% is due to the expiration of TIF 1 and is directly tied to the amount of revenue generated by TIF 1 that the City provided to fund the Downtown Wheaton Association. B. Public Comment Jim Mathieson of the Downtown Wheaton Association Board stated there has been a lot of positive change in the DWA in the past few years. He thanked the City for its support and stated the DWA is a great asset to the City. Mr. Mathieson stated the DWA has had great turnout to its events, including Ice Fest, Restaurant Week, Easter Egg Hunt, Vintage Rides, Wheaton Bike Fest, Wine Fest, Halloween Trick- or-Treating, Chili Fest and the Wheaton Christmas Parade. The DWA also supports community events like the Taste of Wheaton. He stated the net change is a neutral revenue change, and the DWA has been operating on the funding provided. Mr. Mathieson stated Executive Director Paula Barrington has done a great job leading the DWA. City Council Public Hearing December 12, 2016 Page 2 Ron Diener, DWA Treasurer, stated the Downtown Wheaton Association creates monthly reports on the organization’s finances, and the proposed budget for January will be available soon. He stated the DWA is moving toward events that are profitable to help fund the organization. Mr. Diener stated the Wine Fest was a fundraiser this year rather than a break-even event. Paula Barrington, Downtown Wheaton Association Executive Director, thanked the City Council and staff for their strong partnership and support. Ms. Barrington stated the organization is helping to create the downtown as a destination. She stated she has worked for the DWA for four years and would like to continue helping the organization succeed. C. Council Comment In response to Councilman Rutledge’s question, City Manager Dzugan confirmed that if this levy were not raised, the DWA would not receive the funding equivalent that was previously provided through TIF 1. Councilman Suess stated this is simply a reallocation of funds, with the funds going to the General Fund rather than coming out of TIF 1. Councilman Scalzo thanked the DWA, Ms. Barrington, Director of Planning & Economic Development Kozik and Councilman Saline for their work supporting the downtown. He stated this is a way that businesses are working well with the City. Councilman Prendiville thanked the DWA and stated downtown businesses are not the only ones that benefit from the DWA’s efforts. Councilwoman Fitch thanked Ms. Barrington for working very hard and working within the resources she is provided. She congratulated the DWA on bringing in $12,000 in profit from the Wine Fest this year. Mayor Gresk stated there has been a great shift in the DWA in the past five years, moving from event planning to business retention. D. Adjournment Councilman Suess moved and Councilman Scalzo seconded a motion to close the public hearing at 7:10 p.m. Roll Call Vote: Ayes: Councilman Suess Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo City Council Public Hearing December 12, 2016 Page 3 Nays: None Absent: None Motion Carried Unanimously The meeting was adjourned at 7:10 p.m. Respectfully submitted, Susan Bishel Public Relations Coordinator