S-621 - 12/08/1987 - BUDGET - Ordinances t a
ORDINANCE NO. S- 621
` AN ORDINANCE PROVIDING FOR THE PARTIAL ABATEMENT OF THE 1987
TAX LEVY OF THE $10,270,000 GENERAL OBLIGATION RECREATION BONDS OF
THE VILLAGE OF OAK BROOK, ILLINOIS DATED SEPTEMBER 1 , 1977
WHEREAS, the Village of Oak Brook, DuPage and Cook Counties, Illinois
has heretofore issued General Obligation Recreation Bonds, dated September 1 ,
1977, in the total amount of $10,270,000 pursuant to Ordinance 5-385, certified
copies of which ordinance were duly filed with the County Clerks of Cook County
and DuPage County, respectively, as required by law; and
WHEREAS, the Village of Oak Brook has allocated revenues for the
purpose of paying a portion of the principal and interest on the bonds,
aforesaid, that was to be paid from the proceeds of the 1987 tax levy, said
principal and interest together totalling $954,100.00.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
s Section 1 : That the tax levy of the Village of Oak Brook, DuPage and
Cook Counties, Illinois, to be extended for the year 1987 for the purpose of
paying the principal and interest on the $10,270,000 General Obligation
Recreation Bonds, dated September 1 , 1977, be and the same is reduced and abated
in the amount of Three Hundred Thousand Dollars and No Cents ($300,000.00), thus
reducing the said 1987 tax levy to $654,100.00.
Section 2: That the abatement herein made in Section 1 hereof shall be
in addition to any other reductions in said levy legally required to be made
pursuant to the provisions of Chapter 85, paragraph 616 of the Illinois Revised
Statutes relative to the Personal Property Tax Replacement Fund.
Section 3: That a certified copy of this Ordinance be filed forthwith
with the County Clerk of DuPage County and with the County Clerk of Cook County.
Section 4: That this Ordinance shall be in full force and effect from
and after its passage and approval as provided by law.
PASSED this 8th day of December 1987.
Ayes: Trustees Bartecki, Bushy, Imrie, Rush and Winters
i � Nays: None
Absent: President Cerne and Trustee Maher
APPROVED this 8th day of December , 1987o
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Village President
ATTEST:
Village Clerk
Published
Approved as to Form: Date Paper
Not Published
Vill ge Att rney
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< VI LLAGE OF OAK BROOK
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS 60521 -2255
312990-3000
December 2, 1987
MEMO TO: Steven Berley, Village Manager
FROM: Terry C. Klein, Finance Officer
SUBJECT: Sports Core Tax Abatement
RECOMMENDATION: That the Village Board authorize a Tax Abatement of $300,000.00
of the tax to be levied in 1987 for the Sports Core Bond
retirement and continue the Villages participation in the once
'�. per week at curb service payment for garbage expense estimated to
be $229,320.00 for a total taxpayer benefit package for the
1988/89 Corporate Fund Budget of $529,320.00.
The Village of Oak Brook initially adopted a taxpayer benefit program in November,
1979 which consisted of a combination of a tax abatement on the Sports Core Bonds
and directed payment of garbage service. The goals established at that time were
as follows:
A. Taxpayer benefits would be refunded to the taxpayers of Oak Brook as a
combination of tax abatement of the Sports Core tax and payment for once
per week garbage service for residential users.
B. The amount of the benefit would be based on the actual surplus funds
banked by the Village in previous year's experience in excess of the fund
balance which would equal four months of operating and operating capital
expenses.
C. The 1978/79 beginning fund balance was used as a base point to determine
the 1980/81 tax abatement and garbage service cost participation.
However, at the Committee-of-the-Whole meeting of February 11, 1985, the Village
Board directed the implementation of Option 3 into the long range plan which is
restated here.
Option 3 - Extension of Street Maintenance Cycle plus Reduction of Tax Abatement
Option number 3 suggests an extension of the street maintenance cycle of
7 to 10 years to 8 to 11 years plus reducing the $300,000 annual tax
f abatement. The extension of the street maintenance cycle is the same as
that presented in Option 2. However, in addition to the extended
`-- maintenance cycle, the tax abatement would be reduced in the future years
to maintain the current tax rate of approximately $1.704 per $1,000 of
equalized assessed valuation. At this level the abatement would be
reduced $43,200 in 1986/87; $104,700 in 1987/88; and $69,400 in 1988/89.
The current assessed valuation for the Village of Oak Brook is $445,776,000. Using
the tax rate stated above of $1.704 per $1,000, the extension is approximately
$759,600 ($1.704 x $445,776) . Against the total debt for FY88/89 of $954,100 the
abatement could be $194,500 ($954,100-$759,600) without raising the tax rate.
However, since the accumulated surplus available for taxpayer benefit is in excess
of $2 million ($1 ,697,785 + $356,400), I recommend the abatement to be set at
$300,000. The garbage expense is estimated to be $229,320 for a total taxpayer
benefit package for 1988/89 of $529,320•
Exhibit I analyzes the use of surpluses beginning in 1978/79 through fiscal year
1986/87. After completing the garbage service expenses and $300,000 tax abatement
of 1987, we will have a fund balance in the taxpayer benefit surplus account of
$1,697,785. We added $356,400 of surplus funds from Fiscal year 86/87 to that
account, accumulating a fund balance in the taxpayers benefit surplus account of
$1,524,865, to be considered for use in future years.
Exhibit II gives more detailed information regarding the surpluses developed and
banked from fiscal year 1981/82 through 1986/87, along with beginning and ending
fund balances in each of those years.
Terry C. tlein
Finance Officer
TCK/jr
EXHIBIT I
ANALYSIS OF SURPLUSES USED FOR TAX PAYER BENEFITS
TAX GARBAGE YEAR TO DATE
BUDGET YEAR SURPLUS BENEFIT YEAR ABATEMENT EXPENSE REMAINING SURPLUS
1978/79 $ 313,218 1980/81 $ 300,000 $ 97,850 ($ 84,632)
1979/80 $ 622,930 1981/82 $ 300,000 $ 124,670 $ 113,628
1980/81 $ 769, 137 1982/83 $ 600,000 $ 143,659 $ 139,106
1981/82 $ 413, 108 1983/84 $ 300,000 $ 152,053 $ 100,161
1982/83 $ 509,246 1984/85 $ 300,000 $ 169,536 $ 139,871
1983/84 $ 921,611 1985/86 $ 300,000 $ 196,977 $ 564,505
1984/85 $ 884,109 1986/87 $ 300,000 $ 210,000 $ 938,614
1985/86 $ 1,277,571 1987/88 $ 300,000 $ 218,400 $ 1,697,785
1986/87 $ 356,400 1988/89 $ 300,000 $ 229,320* $ 1,524,865
* RECOMMENDED LEVEL FOR 1988/89 BUDGET
Previous Current Current Year Current Year Y.T.D.
Y.T.D. + Year _ Tax _ Garbage = Remain
Surplus Surplus Abatement Expense Surplus
EXHL " F
T( II
SUMMARY OF CORPORATE FUND
1980/81 - 1985 86 ACTUAL
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
81/82 82/83 83/84 84/85 85/86 86/87
Beginning Fund Balance $ 3,614,865 $ 3,603,303 $ 3,368,890 $ 3,838,448 $ 4,253,021 $ 5,499,338
Revenue $ 6,245,725 $ 5,795,788 $ 7,045,867 $ 7,220,516 $ 7,349,675 $ 8,246,065
Operating Expenses $ 4,403,058 $ 4,737,229 $ 4,989,836 $ 5,927,698 $ 5,621,843 $ 6,385,554
Capital Expenses $ 698,065 $ 296,698 $ 1, 104,492 $ 398,492 $ 439,534 $ 975,711
Extraordinary Charge - 0 - $ 479,474 - 0 - - 0 - - 0 - - 0 -
Total Expenses $ 5,580,597 $ 5,033,927 $ 6,094,328 $ 6,326,190 $ 6,061,377 $ 7,361,265
Surplus $ 665,128 $ 761,861 $ 951,539 $ 894,326 $ 1,288,298 $ 884,800
Fund Balance Prior to Reduction $ 4,279,993 $ 4,365,164 $ 4,320,429 $ 4,732,774 $ 5,541,319 $ 6,384,138
Village Hall Debt $ 243,520 $ 243,520 $ 20,196 - 0 - - 0 - - 0 -
Fireworks Transfer $ 8,500 $ 9,095 $ 9,732 $ 109217 $ 10,727 $ 10,000
Surplus for Tax Payer Benefits $ 413,108 $ 509,246 $ 921,611 $ 884,109 $ 1,277,571 $ 665,694
Tax Abatement $ 300,000 $ 600,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000
Tax Payer Benefit $ 124,670 $ 143,659 $ 152,053 $ 169,536 $ 196,977 $ 218,400
Total Reductions Due to Tax Payer
Benefit Payments $ 424,670 $ 743,659 $ 452,053 $ 469,536 $ 496,977 $ 518,400
ENDING FUND BALANCE $ 3,603,303 $ 3,368,890 $ 3,838,448 $ 4,253,021 $ 5,499,338 $ 5,855,738