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HomeMy WebLinkAboutORDINANCE - 2901 - 7/23/2002 - DISCONNECTION FEE ESTABLISHEDORDINANCE NO. 2901 AN ORDINANCE ESTABLISHING A DISCONNECTION FEE FOR ALL OWNERS OF PROPERTY WHO DISCONNECT SAID PROPERTY FROM THE VILLAGE OR REMOVE PROPERTY FROM THE GENERAL REAL ESTATE TAX ROLLS AS ASSESSED BY THE COUNTY ASSESSOR WHEREAS, The Village of Elk Grove Village is an Illinois Home Rule Municipality which has 34,700 residents and approximately 3,800 industrial and commercial businesses within approximately 11 square miles of land; and WHEREAS, The Village owns and maintains an infrastructure system including streets, curbs, sidewalks, water and sewer mains, planted vegetation in dedicated rights-of-way, lift stations, pumping stations, water towers, well sites, and other facilities utilized for providing services to its residents, the value of said infrastructure system is believed to exceed $86,800,000, 60$ of which is attributed to the industrial/commercial areas of the Village and 40% of which is attributed to the residential areas of the Village; and WHEREAS, The Village also owns and maintains a Municipal Building, a Fire Administration Building, a Police Department Facility, four (4) Fire Stations, two (2) Public Works Facilities and other land and property acquired for current and anticipated future needs of the Village; and WHEREAS, The Village employs 382 salaried officers and employees which include 99 sworn police officers and 94 sworn firefighters as well as other administrative, clerical maintenance employees as well as independent contractors for legal, accounting and related municipal purposes; and WHEREAS, The cost to operate and maintain all of the Village property and the cost to provide all of the Village's public services as determined by the Fiscal Year 2002-2003 Budget as adopted and approved by the Mayor and Board of Trustees, including applicable Pension Fund costs is $67,529,558; and WHEREAS, Revenues of the Village consist of property taxes and other taxes, license and permit fees, intergovernmental revenue such as shared portions of State income tax and the like, court fines and interest on deposits. The annual revenue received by Elk Grove Village is $53,979,721 which amount is applied to the payment of the operating costs of the Village. Of the 6,906 acres of land in the Village from which this annual income is derived, 3,156 acres are industrial/commercial property and 3,750 acres are zoned for residential uses; and WHEREAS, Based on recent calculations, it has been determined that 58.8 of the Village's revenue comes from the industrial/commercial areas; 23.5% from the residential property; and 17.7% from other sources unrelated to property and therefore not affected by disconnection; and WHEREAS, Based on the above -stated costs and revenues and the stated acreage, it has been determined that the annual effect on the Village on a per acre basis by the disconnection of property and territory from the Village or otherwise by the removal of property from the tax rolls is $10,049 per acre for industrial/commercial property and $3,384 per acre for residential property; and WHEREAS, From a review of estimated service and longevity of existing Village buildings and infrastructure, it is deemed reasonable to determine that the annual adverse effect on the Village would extend for a minimum of forty (40) years from the date hereof, and the Mayor and Board of Trustees, in the exercise of their legislative discretion, do hereby find that the present day adverse effect as a result of disconnection of property from the corporate limits or from the tax rolls is $10,049 per acre multiplied by 40, or $401,960 per acre for industrial/commercial property and $3,384 per acre multiplied by 40 or $135,360 per acre for residential property; and WHEREAS, Based on these estimated losses and the burden that would be placed on the remaining territory within the Village should substantial disconnection occur, it is hereby declared necessary and vital to the well-being of the Village that a disconnection fee be established and assessed to any person, firm, corporation or other entity or owner of property who disconnects property from the Village or otherwise remove any property from the tax rolls. NOW, THEREFORE BE IT ORDAINED by the Mayor and Board of Trustees of the Village of Elk Grove Village, counties of Cook and DuPage Illinois as follows: Section 1: That Title 3 Business and License Regulations of the Village Code be amended by adding thereto a new section pertaining to Tax Base Reduction Fees, which section shall read as follows 3-2-11 Disconnection Fee A. Fee Established: There is hereby established a Disconnection Fee to offset the adverse effect over a 40 year period for any property or territory which disconnects from the Village or otherwise causes said property to be exempt or otherwise removed from the tax rolls as maintained by the County Assessor. The fee shall be equal to $401,960 per acre or portion thereof of industrial/commercial property which is removed from the Village's Tax Base by disconnection, tax exemption or 2 otherwise, and $135,360 per acre or portion thereof for any residential property which is removed from the Village's Tax Base by disconnection, tax exemption or otherwise. B. Notice: Any person, firm corporation or other entity or owner of property who owns property in Elk Grove Village and who attempts to remove said property from the Village's Tax Base shall first notify the Village Clerk of such removal, prior to the date the removal becomes effective. The Notice shall contain the following: 1. The address and Property Identification Number (PIN) of the property. 2. A plat of survey which sets forth the amount of acreage being removed. 3. The name and address (if different from the property being removed) of the owner, and in the case of a Trust, the beneficiary of such trust; or in the case of a Corporation or Partnership, the names of the shareholders and partners as the case may be. 4. The method whereby the property is being removed from the tax base and any documentation directly causing such property to be so removed, whether by Petitions to Disconnect, Court Order, Petitions to Exempt or otherwise. C. Statement of Required Fee/Time of Payment: Upon receipt of the Notice required herein, the Village Clerk in conjunction with the Department of Finance shall calculate the fee that is due and owing to the Village, and provide, by certified mail, a statement to the owner or agent of the owner, setting forth the amount of the fee. Payment shall be made to the Village of Elk Grove Village and must be received within thirty (30) days from the date the statement is received. D. Express Contract: An act of disconnection, being voluntary, shall constitute an agreement to the terms herein and shall be binding as an express contract. E. Lien: The amount of fee, as calculated hereunder, if not paid prior thereto, shall, on the date the removal becomes effective, be a lien upon the property being disconnected, notice of which shall be recorded with the recorder of titles of the county in which the property is located. The notice shall consist of a sworn statement setting out a description of such property sufficient for the identification thereof, the amount of fees due and unpaid, and 3 the date when such unpaid fee became due. The Village may foreclose this lien in the same manner and with the same effect as in the foreclosure of any other lien, including foreclosure of mortgages on real estate. The lien and right to foreclose the lien shall be in addition to and not in derogation of any other remedy or right of recovery, in law or equity, that the Village may have to recover money or fees due it. In the event of an action to foreclose or recover money due for fees, the Village shall also recover costs incurred, including a reasonable attorney's fee, to be fixed by the court. F. Severability: If any provision, section or portion of this ordinance or its application to any person, firm corporation or other entity or property is held invalid, such invalidity shall not affect the application or validity of any other provisions, sections or portions of this Ordinance and, to that end, any provisions, sections or portions of this Ordinance are declared to be severable. Section 2: The Village Clerk is hereby directed to publish this Ordinance in pamphlet form. Section 3: That this Ordinance shall be in full force and effect from and after its passage, approval and publication according to law and further provided that this Ordinance shall not apply to parcels already exempt on the effective date of this Ordinance. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 23rd day of July 2002. APPROVED this 23rd day of July 2002. APPROVED: Craig B. Johnson, Mayor ATTEST: Ann I. Walsh, Village Clerk PUBLISHED this 24r' day of July 2002 in pamphlet form. g/Ordte rolls.doc 4