City Council seeks property tax increase
November 21, 2013
Carbondale property taxes could increase if the City Council approves a proposed tax levy ordinance at the Dec. 17 meeting.
The City Council approved a 10.57 percent increase in the property tax levy Tuesday with only Mayor Joel Fritzler and Councilwoman Jane Adams voting against the increase.
As sales tax revenues continue to decrease, city staff project revenues will again not be enough to cover increasing general fund expenses.
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City staff recommended the city use the money for a differently towards the debt service, street lighting and sidewalk portions of the levy, as the city has for the past three years, and instead use the levy for public safety pensions.
Police pension contributions from the city are anticipated to increase by $76,500 and fire pension contributions to increase by $19,647, according to the levy proposal.
“All of these are mandated expenses, over which the city has no control. Without the revenue from the property tax levy, drastic spending reductions would be required to balance the general fund budget” the proposal states.
Fritzler asked if the wording in the proposal be adjusted to remove the word property as the tax levy could also be from sales taxes. Fritzler said increasing sales tax would be a fair way to combat the pension problem. The Illinois Department of Transportation’s annual survey of traffic flow shows that Carbondale’s daytime population most of the time is two times what residency is with commuters, he said. Those commuters use city services and pay sales taxes but not property taxes.
“If we have to increase taxes, we should increase sales tax to spread the love so it’s not just hitting residents,” he said.
Councilman Lance Jack said while increasing the sales tax might be more equitable, it could negatively affect small business owners.
“We are the ones who take a big hit when it goes up,” Jack, who is also the owner of Fat Patties on Illinois Avenue, said.
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Councilman Don Monty said while the city could cut from the budget to make up for the shortcomings, the citizens would complain about services the city once offered. Monty said he was worried overtime the police and fire pensions would eat up the city budget unless the state figures out a way to fix the growing problem.
Adams expressed the same concern.
“I would really like to see a detailed presentation about the police and fire pension funds and projections of how that is going to grow and what the laws are going to require of us,” she said.
Councilman Lee Fronabarger asked if the city could set up a program where city workers could share cost-cutting ideas. City manager Kevin Baity said there is no formal program, but city departments are very frugal with the money they are given.
The city also required a request from the Carbondale Public Library for an increase of $32,306 for fiscal year 2015 for a total levy of $972,892, which the city is legally required to accept.
The City Council will vote on the ordinance at the Dec. 17 meeting.
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