Village of Niles Board of Trustees Met Nov. 17.
Here is the minutes provided by the board:
Pursuant to proper legal notice, the Truth in Taxation Public Hearing of the Board of Trustees of the Village of Niles was held virtually via Zoom Webinar audio/visual conferencing in accordance with Governor Pritzker's most recent disaster declaration related to public health concerns due to the COVID-19 Pandemic. Public Notice of the Truth in Taxation Hearing was published in the November 11, 2020 Niles Journal and Topics.
President Andrew Przybylo called the meeting to order at 6:07 p.m. and led the Pledge of Allegiance. Present were Trustees George D. Alpogianis, John C. Jekot, Danette O'Donovan Matyas, Denise McCreery, Craig Niedermaier and Dean Strzelecki. Also present were Finance Director Kent Oliven, Village Manager Steven C. Vinezeano, Village Attorney Danielle Grcic, Deputy Village Manager Hadley Skeffington-Vos, Assistant to the Village Manager Kathy Thake, Village Clerk Marlene J. Victorine, Deputy Village Clerk Margaret Keating and all Department Heads.
President Przybylo introduced Finance Director Kent Oliven to present the Village's first Truth in Taxation Hearing on the Proposed Property Tax Increase.
On October 21, 2020, the Village Finance Committee unanimously determined an 8.58% total extended levy increase for Tax Year 2020, which is reduced to a 5.30% increase for property owners due to the presence of the expiring Milwaukee Touhy TIF District. On November 13, the draft tax levy ordinance was available on the Village's website for review. The Board of Trustees will vote on the Proposed Tax Levy Ordinance at tonight's Regular Board of Trustees meeting.
Finance Director Oliven stated that the average property tax rate of neighboring communities is 9.09% and the Village of Niles is at 8%, which is lower than the average due to our sales tax revenue which makes up 45% of the total governmental activities revenue. Property taxes collected make up 20% of the Village's revenues. The largest governmental activities expense is contribution towards the public health and safety pensions which make up 58% of total expenses.
Per State statute, the Fire and Police Pension Funds must reach a 90% funding threshold by 2040. The Village, in accordance with both accounting and actuarial standards, requires the pensions be 100% funded by 2040. As of April 30, 2020, the Fire Pension Fund is 42.05% funded and the Police Pension Fund is 39.13% funded. The Village is looking to pay down the pension liability and the Finance Committee is recommending that this year the locally collected retailer's tax on cannabis and 75% of video gaming tax are dedicated to meeting the actuarially determined contribution.
Finance Director Oliven summarized Fiscal Year 2020 expenses and revenues and explained the effect COVID-19 had on the Village's budget. The Village experienced a decrease of 7% or about $1.1 million in major tax revenues this year compared to last fiscal year amounts.
Events influencing the TY20 levy amount are: 1) The closing of the Milwaukee-Touhy TIF on December 31, 2020. The increment received by the Village after the close of the TIF will be dedicated to public safety pension levies to increase the overall levy without increasing property tax rates on individuals. 2) The changing of the Tax Levy Structure. Property Tax Levy previously came to the Village via the Corporate Levy, and would then be transferred to the Police and Fire Pension through the General Fund. This year the Corporate Levy is being reduced to zero and those amounts shifted to the Police and Fire Pension levies. 3) The changing of the definition of a tax increase to be more accurate and transparent.
The total extended levy for Tax Year 2020 is $7,407,123 compared to Tax Year 2019 levy of $6,821,933 for a $585,190 increase (8.58%). The total property tax increase for TY20 is being allocated entirely to the Fire Pension Fund and Police Pension Fund obligations.
What an 8.58% total extended levy increase means to property owners for a home valued at $300,000 for 2019-2020 is a total increase of $20.12 (monthly total $1.68). The Village's total extended levy increase is a 0.32% increase in the overall property tax bill. President Przybylo and the Board members thanked Finance Director Oliven and Finance staff for the informative presentation. Trustee McCreery requested more information on the status of pension reform.
President Przybylo asked for public comments from those present on the Truth in Taxation Hearing webinar. There were no comments from the public.
Trustee Jekot motioned to adjourn, seconded by Trustee McCreery, and on roll call all concurred. The Truth in Taxation Public Budget Hearing adjourned at 7:08 p.m.
https://www.vniles.com/AgendaCenter/ViewFile/Minutes/_11172020-2024
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