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Resolution 2006-019 STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) RESOLUTION NO. 2006- \ RESOLUTION AMENDMENT TO THE SPECIAL TAX BOND POLICY WHEREAS the United City of Yorkville has passed a policy concerning Special Tax Bonds, by Resolution No. 2002 -24 dated March 26, 2002; and WHEREAS, the City Council of the United City of Yorkville has considered amending said policy, and has discussed said proposed revisions; and WHEREAS, the revisions that the Council now desires to make in the Special Tax Bond Policy are set forth on the attached Exhibit "A" (said Exhibit "A" being a complete restatement of the Special Tax Bond Policy including amendments) which is incorporated herein, and NOW THEREFORE, upon Motion duly made, seconded and approved by the majority of those members of the City Council voting, the Special Tax Bond Policy of the United City of Yorkville is hereby restated and amended in the form set forth in Exhibit "A" attached hereto and incorporated herein. The amendments to the Special Tax Bond Policy shall not apply to any development for which a Proposing Ordinance has been adopted. i JAMES BOCK JOSEPH BESCO VALERIE BURD o PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE 411 Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this 1� Day of , A.D. 2006. MAYORV Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this 1 day of I Ne - — mo t-.,,,, , A.D. 2006. ATTEST: I F CITY CLERK Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 United City of Yorkville SPECIAL TAX BOND POLICY General Statement: In order to provide more comprehensive public infrastructure for projects undertaken in the City and to help projects meet or exceed the desired standards and guidelines of Yorkville, it is the desire of the City to consider issuing Special Tax Bonds as a municipal financing instrument. The Special Tax Bonds shall be issued as either Special Service Area Bonds (35 ILCS 200/27 -5) or Special Assessment Bonds (65 ILCS 5/9 -1 -1) (the "Bonds "). Such Bonds shall finance public infrastructure for defined areas where the burden of the tax or assessment is limited to that specific area. The City will not be liable or responsible for, nor will it pledge any general obligation or other City revenue for, the repayment of such Special Tax Bonds. The Bonds shall be repaid only from a tax or assessment on the benefited property. No other taxpayers are obligated to pay this special tax. The City has considered the impact upon homeowners purchasing homes subject to a Special Tax on an ongoing basis and has determined that, for residential developments (and specifically not to include commercial developments), the City shall enact only the form of Special Tax, and will issue only the form of Special Tax Bonds (SSA or SAA) which involve full payment of the tax at the time that a platted lot is sold, or a building permit is issued for the new construction, whichever is indicated by the City Council at the time that the Special Tax Bond is approved. By so doing, no home owner in a Special Tax Area will be subject to the tax, but rather, the tax will be paid in full before occupancy. Eligible Infrastructure Costs: The City will consider the issuance of Special Tax Bonds for the following public costs associated with a proposed project: • Water mains, laterals and qualified water storage and production facilities • Sanitary Sewer interceptors, mains & laterals • Sewer treatment facilities • Storm Sewer facilities 1 • Roads including signaling -- Park improvements • Offsite land acquisition cost for storm water & detention improvements including regional or multi -party storm water management use • Certain mass grading costs, when a specific need is demonstrated • Certain pro -rata costs for police, fire and/or public works facilities related to the project, when a specific need is demonstrated All such costs shall pay for public improvements that are either owned by the public or are the subject to permanent public easements. All such costs shall be reviewed and approved by the City and its bond counsel. and financial advisor before issuance. Eligible Projects: The City will consider such Bonds for housing, retail, commercial, office and/or industrial projects.. Prior to consideration of an SSA, the developer seeking the SSA must demonstrate to the City the advantages of use of the SSA for the particular development. The City shall consider "up front" provision of infrastructure, accelerated provision of schools, parks and/or other public facilities, and the accelerated extension of city services, as specific reasons to consider enacting an SSA for any given area of the City. It is the policy of the City to consider each request for SSA on its own merits, and no previous SSA shall be considered precedent for considering a subsequent SSA. Realizing that there is an expenditure of time and effort on the part of the City and its professionals, the City requests that a qualified bond underwriter review all Special Tax Bond proposals for reasonableness and marketability before the formal presentation to the City. The City may further and likely will, hire the services of an independent financial consultant to review the terms of any Special Tax Service Area or Special Assessment Area Bonds, advising the City of the appropriateness of the issue, the marketability, and providing financial advice to the City. Further, the City shall seek an independent Bond Counsel to issue a Legal Opinion Letter ensuring that the City has no direct liability or residual liability on said Bonds. All the consulting fees incurred by the City whether t for legal services or independent financial consulting shall be 2 �I I reimbursed to the City out of the Bond proceeds, at the first draw down upon said bonds. Annexation Agreements: Unless all the criteria set forth herein is demonstrated Prior to approval, no Annexation Agreement shall grant an entitlement for a Special Tax. An Annexation Agreement may provide that the Owner/Developer may, at a future date, request funding via a Special Tax, but in such a case, 1) the enactment of the Special Tax shall be at the City's sole discretion, and 2) the Owner/Developer will be required to comply with the criteria set out in this policy, or any future policy concerning Special Taxes, prior to consideration for approval. Notice and Comment From Taxing Bodies: Prior to approval of any Special Tax Bonds under this Policy, the developer seeking the Special Tax Bonds shall notify all taxing bodies then receiving tax from the subject parcel, and solicit comments which shall be delivered to the City Council for consideration in its deliberations regarding the Special Tax Bonds Policies & Procedures All normal and regular City ordinances, policies, procedures and subdivision control standards shall be followed and required of the proposed project. The City reserves the right to suspend or stop discussion or proceedings concerning Special Tax Bonds at anytime. I �I 3