Council to Vote on SSA Abatements, Appoint Deputy Treasurer at Tonight's Meeting
Council meets tonight at 7 p.m. in the city council chambers.
Yorkville officials are scheduled to vote on the abatement of three controversial and complicated Special Service Areas where residents can expect to see an increase in property taxes due to of payment by the developers on vacant lots.
The developers of the three subdivisions, Morgan Stanley Bank’s LLC holding company in Raintree Village, Windett Ridge LLC in Windett Ridge, and US Bank’s LLC holding company in Grande Reserve, failed to make the property tax payments this year.
Special Service Areas were created as a financing mechanism for subdivisions to allow the cost of the infrastructure to be bonded by the cities, and for the repayment of those obligations to be put on a property tax bill for each subsequent property owner, including vacant property owners. The SSA funds contain a reserve account that can be used when funds to pay the debt service are scarce. However, city bond ordinances state the use of the reserve funds are a last resort measure, according to city documents. Increasing homeowners’ taxes is the only option city leaders currently see.
According to documents, the 236 homeowners in Raintree Village SSA unit 1, the 36 homeowners in Raintree Village Unit 2, and the 80 homeowners in Windett Ridge are at their maximum levy. The residents of Grande Reserve central will be levied a $1,962 SSA property tax, which is still $366 below the maximum SSA property tax of $2,328, which means they could see an additional tax hike.
Additionally Yorkville officials will make a presentation to City Treasurer William Powell, who announced his intended resignation earlier this month. Aldermen will vote on the appointment of Rob Frederickson to deputy treasurer, until a new treasurer is appointed.
As treasurer, Powell's primary responsibility is to maintain the city checkbook and ensure bills are paid. Developing and tracking the city budget are responsibilities of city staff, including City Administrator Bart Olson.