| Executive Summary: | The Village has issued various General Obligation (GO) Bonds over the years to fund the construction of public buildings and other capital improvements. When GO Bonds are issued, a bond ordinance is filed with the County Clerks that sets forth the annual tax levies needed to cover debt service through final maturity of the bonds. Without an abatement ordinance, the county clerks are required to extend and collect property taxes as specified in the bond ordinance. The Village of Schaumburg has historically abated 100% of the debt service tax levy on bonds issued, choosing to use other revenue sources to cover the debt service payments. The only exception was the Series 2010B Bonds whose proceeds were used to fund street reconstruction improvements and leverage American Recovery and Reinvestment Act grant funds. The principal and interest obligations of the Series 2010B bonds have been satisfied, so no levy is necessary.
Attached is an ordinance which, if adopted, will abate the 2023 tax levy for each of the outstanding bonds. The abatement ordinances must be filed with the County Clerks by March 1, 2024. In total $38,739,881 of debt service tax levies are being abated for the 2023 levy year and will be paid using other sources of revenue. | | Recommended Action: | | The Village Manager recommends the FLAGG Committee recommend the Village Board adopt an ordinance abating taxes levied for the year 2023 heretofore levied to pay principal and interest on General Obligation Bonds Series 2011, Series 2012, Series 2012A, Series 2013A, Series 2016, Series 2017, Series 2020A, Series 2020B, Series 2022, and Series 2023 of the Village of Schaumburg. |
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