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 2009 Series A, 2010 Series D, 2011 Series A & B, 2012 Series A, B, & C, 2013 Series A & C, 2014 Series B & C, 2015 Series C & D, and 2016 Series A ,B & C and the PARTIAL ABATEMENT of TAXES LEVIED to Pay Principal and Interest on 2010 Series C General Obligation Bonds in the Amount of $936,492.00; the PARTIAL ABATEMENT of TAXES LEVIED to Pay Principal and Interest on 2014 Series A General Obligation Bonds in the Amount of $451,100; the PARTIAL ABATEMENT of TAXES LEVIED to Pay Principal and Interest on 2015 Series A General Obligation Bonds in the Amount of $1,694,038.00 and the PARTIAL ABATEMENT of TAXES LEVIED to Pay Principal and Interest on 2015 Series B General Obligation Bonds in the Amount of $1,058,718.00.
Body
BACKGROUND: The attached ordinance directs payment and associated abatement of 2017 property taxes, payable 2018 related to debt service payments in both principal and interest on the 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, Riverfront Development improvements, Civic Center improvements, Pere Marquette Hotel project and sewer improvements.
The ordinance also directs the partial abatement of property taxes related to the General Obligation Corporate Bonds 2010 Series C, 2014 Series A, 2015 Series A & B.
The General Obligation Corporate Purpose Bonds 2010 Series A will be levied for the payment of principal and interest to be collected in 2018 in the amount of $265,715, 2010 Series C bonds will levied in the amount of $279,731, 2014 Series A bonds will be levied in the amount of $277,800, 2015 Series A bonds will be levied in the amount of $858,712 and 2015 Series B bonds will be levied in the amount of $334,332 for a total levy of $2,015,750 in accordance with the adopted 2018-2019 Biennial Budget.
FINANCIAL IMPACT: Principal and interest will be levied on City of Peoria property owner’s tax bill relating to the General Obligation Corporate Purpose Bonds 2010 Series A, 2010 Series C, 2014 Series A and 2015 Series A & B in the amount of $2,015,750 in accordance with the 2018-2019 Biennial 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 2018 referenced above with exception of the General Obligation Corporate Purpose Bonds 2010 Series A and the partial abatement of General Obligation Corporate Purpose Bonds 2010 Series C, 2014 Series A, 2015 Series A & B in the amount $2,015,750 in accordance with the adopted 2018-2019 Biennial Budget.
IMPACT IF DENIED: Property taxes will be levied to meet bond principal and interest payments for 2018 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 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
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