ACTION REQUESTED:
Title
Communication from the City Manager and Corporation Counsel With a Request to ADOPT an ORDINANCE Levying a Special Service Area Real Estate Tax, in the Amount of $40,000.00, for the FISCAL YEAR 2015 for the WESTLAKE SPECIAL SERVICE AREA.
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BACKGROUND:
On July 13, 2010, the City Council created the Westlake Special Service Area for the purpose of renovating parking areas and making improvements to Rockwood Road and West Lake Avenue, as well as other reasonably contemplated improvements. This is the fifth year for such tax levy.
On June 24, 2014, the City Council established a Special Service Area Sales Tax pursuant to Ordinance No. 17,111, within the Westlake Special Service Area to generate sufficient funds to allow for additional improvements and a potential reduction of the real estate tax levy. Subsequently, on July 31, 2014, the Agreement between Westlake Limited Partnership and the City was amended to reflect the application of the Special Service Area Sales Tax pursuant to Ordinance No.17,111, to the SSA financing for the Westlake Special Service Area.
On October 28, 2015, Westlake Limited Partnership through Morton Community Bank ("Bank") as holder of two notes for funds advanced by the Bank submitted a request to set a real estate tax levy for 2015 in the amount of $40,000, which is estimated to be the sufficient amount, in addition to the estimated SSA sales taxes, to meet the repayment obligations of the loan for the SSA improvements. See letter included with this Council Communication. This requested levy amount is significantly less than the prior 2014 tax levy amount which was $80,000. Pursuant to this request, the Ordinance sets the 2015 real estate tax levy for the Westlake Special Service Area, in the requested amount of $40,000.
FINANCIAL IMPACT: Revenue neutral.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: $40,000 in SSA property tax, in addition to the SSA sales taxes, ...
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