Title
SETTLEMENT OF THE 2011-2014 PROPERTY TAX RATE OBJECTIONS
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Settlement Information
Type: Legal Settlement
Claim: Roy Hitch et al. v. Maria Pappas, Treasurer and Ex-Officio Collector of Cook County, Illinois; Case Nos. 12COTO12048, 14COTO364, 15COTO2106, and 16COTO1135 [collectively referred to as the “2011-2014 Property Tax Rate Objections”].
Settlement Amount: See chart below and explanation under Section II.
Tax Year Settlement Settlement Fiscal Year
at Issue (Mils) ($) of Refund
2011 2 $327,402 2027
2012 2 $203,950 2028
2013 2 $245,656 2029
2014 2 $235,898 2030
TOTAL $1,012,906
Authorization: Authorize the General Counsel to execute the Settlement Agreement and include other relevant terms and conditions in the written Agreement.
II. Recommendation
The General Counsel recommends that the Board of Commissioners of the Chicago Park District authorize settlement to resolve the tax rate objection complaints brought by certain taxpayers against the Chicago Park District’s 2011 through 2014 property tax levies. The terms of the settlement are reflected in the chart included in Section I, above.
The settlement is paid out over four years, where four partial payments will be withheld from tax receipts that would otherwise be distributed by the Cook County Treasurer. In the chart included in Section I, above, a “mill” is 1/100,000th of the EAV (equalized assessed value) of the objecting taxpayer’s property. The settlement calculations or estimated refund are based on approximately 22% of the tax base being included in the tax rate objection EAV.
Settlement is between the Chicago Park District and all the taxpayers represented by the law firm Neal, Gerber and Eisenberg LLP, Lead Plaintiff’s Counsel, and all other taxpayers by their counsel who have filed declarations of intent to conform their objections to those of the Lead Plaintiffs.
The General Counsel has determined that this settlement is in the best interests of the Chicago Park District.
III. Budget and Financial Information
Budget Classification: Loss in Collections
Fiscal Year: 2027 through 2030, anticipated
Source of Funds: Property Tax Proceeds
IV. General Conditions
1) Conflicts: No agreement shall be legally binding on the Chicago Park District if entered into in violation of the provisions of the Public Officer Prohibited Activities Act, 50 ILCS 105/0.01 et seq.
2) Ethics: The settlement shall comply with Chapter III of the Code of the Chicago Park District.
3) Contingent Liability: Any agreement lawfully entered into for a period of more than one year shall be executory only for the amounts for which the Park District may become liable in succeeding fiscal years pursuant to Section 17(i) of the Chicago Park District Act, 70 ILCS 1505/0.01 et seq.
4) Economic Disclosure Statement (“EDS”): Pursuant to EDS Rule 2(d) issued by the General Counsel under Chapter I, Section D.6 of the Code of the Chicago Park District, an EDS is not required.