The owner of a typical home in Normal will pay an extra $13 a year to the town of Normal next year.
That's an increase of less than 2 percent. The benchmark home has a value of $165,000.
City Manager Mark Peterson said he understands the frustration of people who prefer no increases, but sometimes hikes are needed.
"We don't sell a product. Most companies that sell a product or services, every once in a while, will have a price adjustment," said Peterson. "It's called inflation because they're acknowledging their costs going up. The only thing we can adjust is our taxes."
Most of the increase supports Police and Fire pensions. Some of the jump will go to a 3.5 percent increase for the Normal Public Library. Peterson said the state determines requirements to fund Police and Fire pensions and the Town must provide the money.
Peterson said the levy keeps the Town property tax rate the lowest among the seven largest cities in Central Illinois. He said council members did not support alternatives to the increase.
"We can take that money from some other department or account and put it into police pensions. But that means we're having to cut a project or more than likely a service, reduce a service level somewhere else. Those are difficult decisions."
Peterson said the Council wants to keep pension funding ratios stable so the Town won't end up out of balance like the State of Illinois.
The Council also approved funding up to $23.5 million in bonds from 2007. The bonds are due in 2034 and the Town is expecting to enjoy about $2.25 million in savings with the refunding transaction.