The Commercial-News, Danville, IL

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November 22, 2009

Aldermen continue tax levy talks

BY JENNIFER BAILEY

DANVILLE — Aldermen will consider ordinances relating to the tax levy and budget plans to increase the city’s sales tax 1 percent, decrease the food and beverage tax by the same and increase the rental registration fee from $10 to $20.

Mayor Scott Eisenhauer said aldermen will determine if there is an increased or eliminated cap on the rental registration fees.

The tax increases are to help the city cover a $1.7 million deficit and earmark additional general fund and infrastructure fund reserve money. This will help with the upcoming replacement of the Fairchild Subway and other emergencies.

In addition to the 4.63 percent tax levy increase, there also will be more than $400,000 in city budget cuts, in addition to health insurance increases for city employees.

Eisenhauer doesn’t foresee additional general fund increases in revenues or implementation of new revenues during the next three years.

He also still supports a third party review of the city’s various budgets, as recommended by aldermen.

“We have nothing to hide. Our books are open,” Eisenhauer said.

Eisenhauer previously proposed a utility tax, which some aldermen support, instead of the $420,000 in more budget cuts.

But he said, “We’re not pushing that at this time.”

Next year, however, Eisenhauer would suggest prohibiting the property tax rate from going over $2 per $100 assessed valuation (it may go up to $1.97 from $1.88 per $100 assessed valuation this year due to fire and police pension increases) by implementing a revenue source (utility tax) to abate the police and fire pension increases.

COMING UP

The city council’s Public Services Committee will meet at 6 p.m. Tuesday at the Robert E. Jones Municipal Building, 17 W. Main St.

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