Where Do Your Tax Dollars Go?

Our elected officials and city staff are often asked how the City receives operating money and where the money is spent. Following is a brief explanation of the types of revenue that come into the City and how general operating funds are spent.

First, residents of Decatur pay personal property taxes each year with the City receiving only 14% of the total property tax bill. As you can see from the illustration below, Decatur schools receive the highest percentage of property tax dollars (49%).

2008 Property Tax Allocation
Paid in 2009

Next, how the City’s 14% portion of property taxes is allocated within the City budget. In the budget year 2009-2010 the City will receive a total of $11,002,265 in property tax revenue. The following pie chart shows where that revenue goes. Police, Fire and IMRF pensions total 64.72% of the allocation. IMRF is the Illinois Municipal Retirement fund, which is the pension for all employees not included in the Police or Fire pension plans. As you can see below, the City receives virtually no revenue into the General Fund from property taxes. The general fund operates most of the City’s services.

Property Tax Allocation
2009-2010 Budget Year

So how does the City operate the General Fund? The City receives revenue into the General Fund from several sources. The pie chart below depicts the revenue sources and the percentage of the General Fund that each represents. Sales tax is expected to generate 45% of our income into the General Fund this year, which is why sales tax revenue is so important.

General Fund Revenue Sources
$49,472,237 for 2009-2010 Budget Year

Finally, the General Fund expenses. The last pie chart shows the allocation by department within the General Fund. You can see what an impact the Police and Fire Departments have, with 67% of the total General Fund budget.

General Fund Expense Distribution
$55,523,722 for 2009-2010 Budget Year