ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE Abating the Tax Heretofore Levied to Pay Principal of and Interest on General Obligation Corporate Purpose Bonds, of the City of Peoria, Peoria County, Illinois, 2015 Series B, C, & D, 2016 Series C, 2018 Series A, 2020 Series A & B, and 2021 A, B, and C, and the Partial Abatement of Taxes Levied to Pay Principal and Interest on 2018 Series B General Obligation Bonds in the Amount of $563,013.00; the Partial Abatement of Taxes Levied to Pay Principal and Interest on 2019 General Obligation Bonds in the Amount of $553,250; and the Partial Abatement of Taxes Levied to Pay Principal and Interest on 2022 Series General Obligation Bonds in the Amount of $144,376.00.
Body
BACKGROUND: The attached ordinance directs payment and associated abatement of 2022 property taxes payable in 2023 related to debt service payments in both principal and interest on General Obligation Corporate Purpose Bonds referenced above. The abatement is made in anticipation of revenue sufficient to pay interest and principal on said bonds. The City issued these bonds to fund capital project expenses, Civic Center improvements, the Pere Marquette Hotel project, sewer projects and storm water projects.
The ordinance also directs the partial abatement of property taxes related to the General Obligation Corporate Purpose Bonds 2018 Series B, 2019 Series, and 2022 Series General Obligation Bonds.
The General Obligation Corporate Purpose Bonds 2018 Series B will be levied for the payment of principal and interest to be collected in 2023 in the amount of $148,413; 2019 General Obligation Bonds in the amount of $597,763; and 2022 General Obligation Bonds in the amount of $1,253,824 for a total levy of $2,000,000.00 in accordance with the 2023 Revised Budget.
FINANCIAL IMPACT: Principal and interest will be levied on City of Peoria property tax owner’s tax bill relating to the General Obligation Corporate Purpose Bonds 2018 Series B, 2019 General Obligation Bonds, and 2022 General Obligation Bonds in the amount of $2,000,000.00 in accordance with the 2023 Revised Budget.
NEIGHBORHOOD CONCERNS: None.
IMPACT IF APPROVED: Abatement of property taxes levied on taxable property within the City to meet principal and interest payments for 2023 referenced above with the exception of the General Obligation Corporate Purpose Bonds 2018 Series B, 2019 General Obligation Bonds, and 2022 General Obligation Bonds in the amount of $2,000,000.00 in accordance with the 2023 Revised Budget
IMPACT IF DENIED: Property taxes will be levied on taxable property within the City to meet principal and interest payments for 2023 and would be included on the City of Peoria property owner’s tax bill.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Keep taxes and fees competitive.
DEPARTMENT: Finance