Tax rate could be raised to cover pensions

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DeKALB – The owner of a $200,000 home may pay an additional $47 in property taxes next year if the DeKalb City Council approves a proposed tax rate increase.

The property tax levy, or total amount collected by a government entity, is proposed at $4.34 million. This amount would raise the property tax rate from 60 cents per $100 Equalized Assessed Value to 67 cents per $100 EAV.

The money generated by the levy covers pension obligations, Assistant City Manager Rudy Espiritu said. Pension benefits are mandated by state and federal law and rise annually.

The city has faced budget deficits during the last two fiscal years, and Espiritu said that about half of the deficit amounts each year were due to pension costs being taken from general fund operations. A fiscal year runs from July 1 of one year to June 30 of the next.

“If [the city council decides] to keep it at 60 cents, it would result in a $450,000 loss to the general fund operations,” he said.

In the spring, after appeals are heard and final valuations are set by the county, the city can return any amount that exceeds the 67 cent property tax rate back to the property owner, which is traditionally done, Espiritu said.

The city council is being asked Monday to approve the tax levy on first reading only, and then give final approval after a public hearing at the Dec. 10 city council meeting.

The city must file its annual property tax levy by the last Thursday in December.

If you go

What: DeKalb City Council meeting

When: 6 p.m. Monday

Where: Council chambers at City Hall, 200 S. Fourth St.

Also at Monday's meeting

The DeKalb City Council also will consider the following agenda items:

An agreement with Baxter & Woodman for preliminary engineering services on a Peace Road widening project, scheduled for construction in 2011.

Increasing the restaurant-bar tax from 2 percent to 2.5 percent, effective July 1, 2009, to fund a portion of a new police station.

Transferring $150,000 from sales tax revenue into a public safety building fund, which would fund a portion of a new police station.

Adding traffic control measures, including a 25 mph speed limit on various streets, within the Knolls and Devonaire Farms subdivisions.

Approving a stormwater project implementation plan.