December 8, 2008
FOR IMMEDIATE RELEASE
City Tax Levy Reduced From Last Year
DECATUR — The Decatur City Council on Monday passed a property tax levy that will not require an increase to the City in resident property taxes yet will fund police, fire and other city pensions at recommended levels.
The council voted 6-1 in favor of a plan to utilize funds collected thru a hotel-motel tax over the years to support its Looking for Lincoln program and which calls for cuts in other areas in order to fund costs. The city will levy a total of about $11 million, which is less than the $11,009,404 million levied last year.
The council’s decision will result in a reduction in the city’s tax rate to about $1.194 per $100 dollars of assessed valuation, down from last year’s rate of $1.23. Monday night’s action does not mean that property owners will not see an increase in their total tax bill, however, as the city’s portion of that bill only makes up about 14% of the total bill.
Last week saw the city council ask that staff look at areas to cut in an effort to avoid a recommended 10.4% increase, most of which would have gone towards, police, fire and IMRF pension costs. Under the new plan about $540,000 of the money needed will be diverted from the Looking for Lincoln fund to help cover the pension increases which came in part because of changes to state laws. Also, under the plan agreed upon Monday, the Decatur Municipal Band will not receive the $5,000 increase requested, the levy for the Decatur Public Library will be reduced by about $114,000 and a fire department tower project which came at a cost of about $486,000 will be delayed.
It should be noted that the Looking for Lincoln funds were generated for the most part from visitors from outside the community (it is a hotel tax, most of which comes from visitors to local hotels), lessening the burden on local taxpayers. The fact that Lincoln funds will be used to cover pension costs doesn’t mean that future Lincoln projects will not be supported as the there will still be funds left in the account and the hotel motel tax remains in effect and will continue to accumulate.
The council agreed to the revision Monday but will have to vote on one last part of the plan next week.
For more information contact Billy Tyus at 424-2753.