The Bloomington City Council narrowly voted down a proposed tax levy increase at its meeting on Monday, meaning taxpayers will see the property tax rate go down more than anticipated.
But the vote also results in the city collecting about $1 million less in property tax revenue.
The 5-4 vote rejected a proposal for a 5% increase over last year’s total extension, instead adopting an amended version — with no change from last year’s extension of $22.3 million.
Council members voting to keep the levy at the 2022 rate were: Donna Boelen, Ward 1; Sheila Montney Ward 3; Nick Becker of Ward 5; Kent Lee, Ward 8; and Tom Crumpler, Ward 9.
Under the original proposal, tax rates were set to decrease slightly, about 1%. But once recalculations are done, Bloomington property owners will see that tax rate decrease go down even more after Monday's vote.
Keeping the tax levy flat means the city captures about $1.1 million less revenue than proposed. That money was set to help the city toward its goal of fully funding public safety pensions by 2040.
After the meeting, City Manager Tim Gleason told WGLT the council’s made a commitment to fund those pensions. So, before the next annual budget begins in May, the city will have to find a way to make up that $1.1 million.
“As of now, it looks like that will come from the unobligated cash reserves,” he said.
Some members say increased water rates already a burden
Boelen told the council that taxpayers in Bloomington want tax relief, especially after the council adopted a plan last month to double water rates over the next three years. A month ago, when the council voted on estimates for the levy, Boelen backed the increase.
But, by Monday, she’d switched sides.
Water rates are going up. That doubling of rates over the next three years was needed, said Boelen, but the property taxes can be reduced in order to provide some relief.
Crumpler said he got a lot of feedback from his constituents in Ward 9 — nearly all wanted an even lower tax rate.
“I received probably as much feedback as I have on any issue since I was elected to council,” said Crumpler, noting that feedback almost entirely was from people opposed to a levy increase.
He said with the water rates going up, people were concerned a property rate tax increase would prove a burden on city residents.
He told his fellow council members some Ward 9 voters even said they were considering moving out of Bloomington if that increase passed.
Mayor Mboka Mwilambwe, who doesn’t vote except in cases of ties, took time before the vote to urge the council to consider the proposal as a middle ground.
Mwilambwe called on Monday to attend the meeting remotely. During the levy discussion, he argued in favor of increasing the levy, saying the city had made commitments that needed funding such as prioritizing the Locust-Colton combined sewer overflow project.
He also said the city isn’t immune to inflation and must expect rising costs, too. So, collecting tax revenue is part of keeping the city’s budget on track.
Ward 7’s Mollie Ward also implored her fellow council members to vote in favor of the increase.
As stewards of the city’s future, the council has an obligation to keep infrastructure up to date, and to keep the city a worthwhile community, she said.
“We have work to do,” she said.
Separate library levy increase OK'd
Historically, the council passes a combined tax levy for its city operations, and the city’s public library. But this year, the council asked staff to break those into two votes.
Although the city levy adopted on Monday will be flat, the council voted 6-3 in favor of increasing the Bloomington Public Library levy to about $6.6 million.
That’s about 5% higher than last year’s, and translates to an additional $309,000. The tax rate for the library’s portion of a tax bill will be about 29 cents per $100 of equalized assessed value [EAV], down about .02% from last year.
For the owner of a $165,000 home, it means about $7 more in taxes to the library for 2023, based on homes that are appraised higher to reflect the city's growth in EAV.
Montney, Becker and Lee voted against the library levy, as they did in November when estimates were set.
On Monday, Montney questioned library officials about a grant that came in higher than expected, as she argued BPL shouldn’t have an increase in its tax levy.
In other business Monday, the council:
- Approved the second piece of a three-part major overhaul of its city codes.
- Amended the wording of its Human Relations policy, to be consistent with the Illinois Human Rights Act and to specifically include more discriminations, including ones based on ancestry, sexual orientation, and several others.
- OK’d a $750,000 contract to tuckpoint and seal parts of the Bloomington police station, and the nearby former city hall on Olive Street.
- Authorized a three-year, $450,000 contract to cover maintenance of security cameras placed at some intersections, and on city property.
