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 2010 Series C & D, 2011 Series A & B, 2012 Series A, B & C, 2013 Series A, 2014 Series A & B, 2015 Series B, C & D, 2016 Series C, and 2018 Series A & B and the Partial Abatement of Taxes Levied to Pay Principal and Interest on 2009 Series A General Obligation Bonds in the Amount of $371,625; the Partial Abatement of Taxes Levied to Pay Principal and Interest on 2015 Series A General Obligation Bonds in the amount of $2,014,000.00; and the Partial Abatement of Taxes Levied to Pay Principal and Interest on 2016 Series A General Obligation Bonds in the Amount of $247,665.00.
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BACKGROUND: The attached ordinance directs payment and associated abatement of 2018 property taxes, payable 2019 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, 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 2009 Series A, 2015 Series A and 2016 Series A.
The General Obligation Corporate Purpose Bonds 2009 Series A will be levied for the payment of principal and interest to be collected in 2019 in the amount of $396,125; 2010 Series A will be levied in the amount of $262,475; 2015 Series A will be levied in the amount of $519,750 and 2016 Series A bonds will be levied in the amount of $878,085 for a total levy of $2,056,435 in accordance with the adopted 2019 Revised 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 2009 Series A, 2010 Series A, 2015 Series A and 2016 Series A in the amount of $2,056,435 in accordance with the 2019 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 2019 referenced above with the exception of the General Obligation Corporate Purpose Bonds 2009 Series A, 2010 Series A, 2015 Series A and 2016 Series A in the amount of $2,056,436 in accordance with the adopted 2019 Revised Budget.
IMPACT IF DENIED: Property taxes will be levied to meet bond principal and interest payments for 2019 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