City of Sycamore City Council met Dec. 6.
Here is the agenda provided by the council:
1. CALL TO ORDER
2. INVOCATION
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
5. AUDIENCE TO VISITORS
In accordance with previously adopted Rules, Public Comments shall be limited to a maximum of thirty minutes per meeting and the public may participate only during the “Public Comment” portion of the meeting. Comments shall not exceed three minutes per speaker unless limited to a shorter duration if numerous people wish to speak. All participants will be required to provide their name and address for the record. No speaker may speak more than once during any meeting unless specifically permitted to do so by the presiding officer. The City encourages that a spokesperson be chosen for individuals wishing to speak about the same subject matter to avoid repetitive presentations. All remarks should be addressed to the City Council as a whole and not to any individual member or employee. In the event speakers pose questions the Council or City staff, they should be aware that those individuals may decline to answer. Each speaker shall maintain civility and decorum. The Presiding Officer retains the right to stop or remove any speaker who becomes disruptive to the meeting.
6. CONSENT AGENDA
A. Approval of the Minutes for the Regular City Council Meeting of November 15, 2021.
B. Approval of the Minutes from the Public Hearing of November 22, 2021.
C. Approval of the Minutes for the Special City Council Meeting of December 1, 2021.
D. Payment of the Bills for December 6, 2021.
E. Annual Report of the Condition of the Sycamore Fire and Police Funds.
7. PRESENTATION OF PETITIONS, COMMUNICATIONS, AND BILLS.
8. REPORTS OF OFFICERS
9. REPORTS OF STANDING COMMITTEES
10. PUBLIC HEARINGS
A. A Public Hearing on the Proposed 2021 Corporate Property Tax Levy.
At the regular City Council meeting of November 15, 2021, the City Council directed the City Manager to prepare ordinances that would establish the 2021 City property tax levy. Ordinances 2021.17 through 2021.19 below establish the 2021 levy and abate debt service on certain bond issues. Each ordinance is presented for first reading only to give the public an opportunity to be heard on the basic levy issues and to consider the enactments that address them. Unless the Council directs otherwise, a second reading will be held on these ordinances on December 20th.
The proposed corporate levy of $4,372,544 includes a City levy of $3,185,960 and a Sycamore Public Library levy of $1,186,584. Assuming a city-wide EAV of $508,768,557 in 2021—an increase of over $20.8 million in the City’s collective real estate wealth from 2020—the proposed corporate levy should result in a tax rate of $.85944 per $100 EAV. This rate represents a 2.64% decrease from the 2020 rate. The tables below illustrate the recent history of City levies, along with the breakdown of operational and pension obligations:
Overall Impact:
➢ Should result in a City tax rate of 0.62621.
➢ The total levy is $3,185,960 (1.53% overall increase attributed to new construction), with $1,455,179 going to general operations.
➢ The levy is maintained at the 2020 level, then applied to existing EAV to calculate the rate of 0.62621. The rate is then applied to new construction EAV of $7,675,490.
➢ Property Taxes, minus the portion going directly to the Police and Fire Pension funds, would represent only 10.84% of all budgeted FY22 General Fund expenditures, less pass through pension transfers ($16,716,202).
➢ Increases the funds available for general operations by $2,843.
Resulting Impact on Single-Family Homeowner: Residents will want to know the impact of each option on their home. The chart below shows the estimated change in the City tax bill for a $200,000 home in 2020 (payable in 2021) and the same home in 2021 (payable in 2022), which is now valued at an estimated $205,415 based on the average increase in EAV (2.71%):
| 2020-21 | 2021-22 | |
| Property EAV | 66,667 | 68,472 |
| City Tax Rate | 0.64317 | 0.62621 |
| City Tax Bill | $428.78 | $428.78 |
| Difference | $0 |
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| Library Levy | $971,702 | $1,020,287 | $1,066,295 | $1,119,500 | $1,138,857 | $1,157,661 | $1,168,703 | $1,186,584 |
| 0.00% | 5.00% | 4.50% | 4.99% | 1.73% | 1.65% | 0.95% | 1.53% | |
| City-Wide EAV | 337,661,389 | 357,501,358 | 389,722,536 | 419,949,225 | 445,724,508 | 468,168,714 | $487,885,213 | $508,768,557 |
| Library Rate | 0.28778 | 0.28539 | 0.27360 | 0.26658 | 0.25551 | 0.24727 | 0.23954 | 0.23323 |
| 1.77% | -0.83% | -4.63% | -2.57% | -4.25% | -3.22% | -3.13% | -2.63% |
| 2020-21 | 2021-22 | |
| Property EAV | 66,667 | 68,472 |
| Library Rate | 0.23954 | 0.23323 |
| Library Tax Bill | $159.70 | $159.70 |
| Difference | $0 |
When combined, the City and Library levies form the corporate levy. Based on the options recommended above, the corporate levy totals $4,372,544, which represents a 1.53% increase. Current taxpayers should see roughly the same amount of taxes paid to the City of Sycamore and Sycamore Public Library in 2021, since new construction accounts for any new dollars being added to the proposed levy.
11. ORDINANCES
A. Ordinance 2021.17— An Ordinance Approving an Employment Agreement Between the City of Sycamore and Michael Hall to Serve as City Manager in the City of Sycamore. First and Second Reading.
On February 28, 2021, Brian Gregory left the position of City Manager to accept a position at DeKalb County. Since that time, Assistant City Manager Maggie Peck has served as Acting City Manager while the City Council conducted a search for a new City Manager. In mid-October, the applications were processed and finalists were interviewed. Michael Hall, who most recently served as Village Manager in Brown Deer, Wisconsin, is being recommended by Mayor Braser to serve as Sycamore’s next City Manager. The position was offered to and accepted by Mr. Hall.
The terms of the Employment Agreement are as follows:
a) The contract will be effective January 3, 2022 and extend to January 2, 2025.
b) The City Manager’s base salary will be $130,000 and conform to the management pay plan as defined by the annual salary ordinance thereafter.
c) The City will provide the City Manager with a monthly motor vehicle allowance of $375.00 for the use of his personal vehicle while performing his duties.
d) The City Manager will receive health insurance coverage and other benefits offered to all City employees as part of the City’s benefit package.
City Council approval is recommended.
B. Ordinance 2021.18—An Ordinance Approving the Tax Increment Redevelopment Plan and Project for the TIF 2 Redevelopment Project Area. First and Second Reading.
The City retained PGAV Planners LLC of St. Louis, Missouri to perform a feasibility study to determine if a proposed area within the City, which may be designated as a redevelopment project area, qualifies as a “blighted area” or “conservation area” as defined in the Act, and other research necessary to document the lack of growth and development through private enterprise. PGAV staff conducted field investigations on July 21, 2021, to document existing conditions of the properties proposed for the Area.
The City encourages developers and property owners to pursue plans for the redevelopment of the area and make such expenditures as are reasonably necessary in that regard with confidence that said expenditures may be allowable redevelopment project costs under the applicable plan once adopted and subject to a redevelopment agreement between the City and the developer and/or property owner. The purpose of the proposed redevelopment plan and project is to generate private investment in this targeted area, thereby eliminating or reducing blighted conditions and providing for the long-term sound growth of the community.
On September 7, 2021, the Sycamore City Council passed Resolution 883 which states the City’s intent to designate a portion of the City as a tax increment finance, or “TIF,” Redevelopment Project Area and to induce development interest within such area pursuant to the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. (the “Act”). The Area contains approximately 56 acres, including street right-of-way, and 39 parcels of real property. Some parcels are vacant and others contain buildings, associated parking areas, and other site improvements. Many buildings and related site improvements suffer from advanced age and physical deterioration. A few of the largest structures, particularly west of N California St, are in a state of severe dilapidation and will require significant investment to bring them up to code and building standards for any type of use.
The Joint Review Board met on November 8, 2021 to discuss the review of the proposed Tax Increment Redevelopment Project Area Number 2. PGAV representation was present at this meeting to outline the TIF and field questions. Representation from all taxing bodies was present at this meeting, and a favorable recommendation to move forward was presented. On November 22, 2021, the City of Sycamore hosted a Public Hearing to address any questions the general public may have. Staff recommends approving the Tax Increment Redevelopment Plan and Project for the TIF 2 Redevelopment Project Area.
City Council approval is recommended.
C. Ordinance 2021.19—An Ordinance Designating the TIF 2 Redevelopment Project Area. First and Second Reading.
As shown in the map, City staff recommends the designation of the area referred to in said plan as the TIF 2 Redevelopment Area.
City Council approval is recommended.
D. Ordinance 2021.20—An Ordinance Adopting Tax Increment Financing for the TIF 2 Redevelopment Project Area. First and Second Reading.
The City of Sycamore desires to adopt tax increment financing pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et. seq., as amended hereinafter referred to as the “TIF Act”. Tax increment financing is hereby adopted in respect to the Tax Increment Redevelopment Plan and Project for the TIF 2 Redevelopment Project Area (Area) approved and adopted pursuant to Ordinance No. 2021.18 of the City of Sycamore, which said Area was designated pursuant to Ordinance No. 2021.19 and the boundaries thereof being legally described therein.
After the total equalized assessed valuation of taxable real property in the TIF 2 Redevelopment Project Area exceeds the total initial equalized assessed value of all taxable real property in the TIF 2 Redevelopment Project Area, the ad valorem taxes, if any, arising from the levies upon taxable real property in the TIF 2 Redevelopment Project Area by taxing districts and the rates determined in the manner provided in paragraph (c) of Section 11-74.4-9 of the TIF Act each year after the effective date of this Ordinance until the redevelopment project costs and all municipal obligations issued in respect thereto have been paid shall be divided as follows:
a. That portion of taxes levied upon each taxable lot, block, tract or parcel of real property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each such taxable lot, block, tract or parcel of real property in the TIF 2 Redevelopment Project Area shall be allocated to and when collected shall be paid by the County Collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.
b. That portion, if any, of such taxes which is attributable to the increase in the current equalized assessed valuation of each lot, block, tract or parcel of real property in the TIF 2 Redevelopment Project Area over and above the initial equalized assessed value of each property in the TIF 2 Redevelopment Project Area shall be allocated to and when collected shall be paid to the municipal treasurer who shall deposit said taxes into a special fund called "the Special Tax Allocation Fund for the TIF 2 Redevelopment Project Area" of the City of Sycamore for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof, pursuant to such appropriations which may be subsequently made.
City Council approval is recommended.
E. Ordinance 2021.21—An Ordinance Levying Taxes for the Corporate Purposes of the City of Sycamore for the Fiscal Year Commencing May 1, 2022 and Ending April 30, 2023. First Reading.
Item 10 of this City Council agenda outlines the Public Hearing held on the proposed 2021 corporate property tax levy for the City of Sycamore. As noted therein, the proposed corporate levy of $4,372,544 includes a City levy of $3,185,960 and a Sycamore Public Library levy of $1,186,584. Assuming a city-wide EAV of $508,768,557 in 2021—an increase of over $20.8 million in the City’s collective real estate wealth from 2020—the proposed corporate levy should result in a tax rate of $.85944 per $100 EAV. This rate represents a 2.64% decrease from the 2020 rate.
F. Ordinance 2021.22—An Ordinance Abating the Debt Service Levy for the General Obligation Refunding Bond Issue Series 2012 for the City of Sycamore, DeKalb County, Illinois for Fiscal Year 2022-2023. First Reading.
The 2012 Refunding Bond was issued in July 2012 to refinance the 2002 General Obligation Bond and the majority of the 2003 General Obligation Bonds. All of the debt service ($262,650) on the 2012 Refunding Bond series will be abated. This approach is consistent with the City policy of paying the greatest share of its annual general obligation bond debt service from general revenues other than property taxes. The attached ordinance will levy $262,650 and abate $262,650, resulting in an extension of $0.00. The debt service will be paid by the 2012 Bond Proceeds Fund (Fund 36), which receives its primary revenue from General Fund, Capital Fund (Fund 6), and Road & Bridge Fund (Fund 8) transfers.
G. Ordinance 2021.23—An Ordinance Partially Abating the Debt Service Levy for the General Obligation Bond Issue Series 2017 Refunding Bond for the City of Sycamore, DeKalb County, Illinois for the Fiscal Year 2022-2023. First Reading.
This ordinance concerns the FY2022-2023 debt service on the 2017 General Obligation Refunding Bond. Historically, the City has levied $155,000 for debt service to be applied to the 1999, 2005, and 2007 bond funds. Both the 1999 and 2005 bonds have been retired, and the 2007 series was refunded as part of the 2017 Refunding Bond; therefore, the levy will be applied to the 2017 series. As a result, the total levy is $326,000, and $171,000 will be abated. The debt service will be paid from the 2017 Bond Fund (Fund 38), which receives its principal revenue from General Fund transfers.
12. RESOLUTIONS
A. Resolution No. 897—A Resolution for Approval of the Sale of Surplus Property Known as Lot 202 of the South Avenue Resubdivision in the City of Sycamore, DeKalb County, Illinois as filed in Plat Cabinet 11 at Slide 15-D as Document No. 2021003542 in the Recorder's Office of DeKalb County to Joel and Joan Barczak, owners of Blumen Gardens, in the Amount of $155,902.02.
In 2004, the City began the process of cleaning up the former Harvester Square plant on South Avenue. The facility was previously used as a manufacturing facility for Diamond Wire, Essex Wire, and Marsh Manufacturing. Manufacturing operations ended in the early 1980s.
During the late 1980s and 1990s, hundreds of drums of potentially hazardous materials were brought to the Harvester Square facility for storage. The Illinois Environmental Protection Agency cited the facility for unsafe and unethical practices that produced conditions that, if not addressed, may have posed a threat to the community.
The City took possession of the property through forfeiture after former owner Jim DiNicola failed to repay a $75,000 loan the City made to demolish a portion of the building to keep it from collapsing into the street.
The City’s goals were to end the threat of any hazardous material contamination, revitalize the property, promote economic growth, and increase neighboring property values. The property is situated in the City’s former Tax Increment Financing District 1 (TIF1).
The initial goal of ending the threat of hazardous material contamination has been addressed via the removal of materials and affected soils and the installation of an engineered barrier. The Illinois EPA issued a No Further Remediation (NFR) Letter in 2012 that allows the property to be used for residential, commercial, or industrial uses as long as the engineered barrier remains in place.
In 2020, the City completed demolition and soil management of the raised platform on the property with the assistance of GeoThink LLC. This work included the removal of over 560 cubic yards of contaminated soil as well as the installation of a new engineered barrier. The barrier was constructed beneath the final platform demolition and excavation limits to isolate and protect from human exposure, and it complies with IEPA NFR conditions and requirements.
On April 19, 2021, Council passed Resolution 864 declaring this property as surplus, thereby authorizing the sale of the property and directing the Acting City Manager to work with the business owners to determine if a joint agreement could be reached to convey the property for full consideration of the appraised value. At this time, Joel and Joan Barczak, owners of Blumen Gardens, have expressed interest in purchasing the remaining portion of this property listed as Lot 202 of the South Avenue Resubdivision. The City has obtained an appraisal for the property from Jacobson and Associates, an MAI-certified appraiser. The Barczak’s have presented an offer to pay the fair market value of the property in the amount of $155,902.02.
City Council approval is recommended.
13. CONSIDERATIONS
A. Consideration of a Recommendation from the Public Works Department Regarding the Award of the Bid for the 0.75 MG Elevated Storage Tank Painting and Repairs to JETCO LTD of Lake Zurich, IL in the amount of $1,443,579.00
Water Tower #1 is a 750,000-gallon toro-ellipse style elevated storage tank that was constructed in 1962 and last painted in 1987. An inspection of the tower was completed in 2020. The report indicated the tower is in need of repairs and repainting to prolong its useful life. The total estimated rehabilitation cost is estimated at $1.7M. Earlier this year, the City hired JETCO LTD through a public bid process to complete a small portion of the repairs, while Dixon Engineering prepared construction specifications to complete the remaining repairs and repaint both the inside and outside or the tank. The finished project is intended to match the color scheme and lettering of the north water tower.
To reduce the cost of the project and address concerns with material and labor issues, City staff took the following steps: 1) the project was out to bid for over forty days; 2) the project was bid at the optimal time of the year for the 2022 construction season; and 3) the construction schedule was expanded to provide contractors a larger window to acquire materials, complete the work, and extend the time to keep the tower out of service.
On November 2nd, the City of Sycamore opened bids. The City received three bids from nine potential contractors, four of which are located in Illinois. These four can more easily meet the requirements of the American Public Works Act, which requires a labor force consisting of 90% Illinois residents during periods of unemployment greater than 5%. Staff has reviewed the bids and recommends awarding the elevated tank painting and repairs to JETCO LTD out of Lake Zurich, Illinois in the amount of $1,443,579.00.
City Council approval is recommended.
14. OTHER NEW BUSINESS
15. APPOINTMENTS
16. ADJOURNMENT
https://cityofsycamore.com/wp-content/uploads/2021/12/20211206-Final-CC.pdf
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