December 4, 2009
FOR IMMEDIATE RELEASE
City Council To Consider Keeping Property
Tax Rate At Last Year’s Level
DECATUR - The Decatur City Council on Monday will consider adopting a property tax levy that keeps the city’s tax rate the same as last year to help fund certain city obligations.
It has been estimated that an increase in the levy of what would have amounted to more than 15% would have been needed to cover those costs entirely through property taxes in the coming year.
Each year the city has a list of certain obligations that it currently pays from property taxes, including police, fire and other employee pensions, funding for the library, municipal band and bond debt service. Last year those costs totaled about $12 million and this year it has been determined that those costs will be about $12.68 million. Last year, the city paid about $11 million of that $12 million in debt from property taxes and used about $1 million in funding from other sources to cover the costs.
This year, those other sources of funding are not available.
Under the levy being proposed, the tax rate would not increase but the city would bring in about $275,000 more than last year based on the estimated increase in local property values. The city will most likely have to fund the additional costs through additional budget cuts including a reduction in the number of city employee positions.
The city has already cut 21 positions to date and will most likely have to cut more to fund the aforementioned obligations and what is expected to be a multimillion-dollar budget deficit next fiscal year.
The council agenda for Monday’s meeting and the associated documentation can be found on the city’s web site at www.decaturil.gov. For more information contact Billy Tyus at 424-2753.