News

Peoria tax rates hold steady

Posted November 01, 2007 11:00 pm

John Sharp

It's a common message politicians in Illinois often make: We lowered your tax rate.

What that same politician will probably fail to mention, though, is that a decrease in the tax rate - or no change at all in the rate - does not mean your property taxes are going down. In Peoria, for example, it likely only means that an expected increase in property taxes will not be as dramatic.

An estimated 3.5 percent growth in the city's equalized assessed value is expected to increase property tax bills in 2008, despite the fact that the tax rate of $1.29 per $100 assessed value isn't changing from last year.

With the city meeting at 5:30 p.m. Tuesday to continue budget talks, it is possible there will be a discussion about the city's 2008 tax levy, or how much the city wants to raise from the property tax to pay for government services next year. No public levy discussions have taken place as of yet.

If an increase in the city's tax rate is something the council wants to do, then they could hold a public Truth-in-Taxation hearing, something the council did last November when it flirted with the idea of boosting the property tax rate 14 cent per $100 assessed valuation in order to dump a garbage fee that generates about $2.3 million annually.

The tax increase didn't happen and, according to Mayor Jim Ardis, it's unlikely to happen this year.

"I haven't talked to any council members on which (alternative revenue sources) they prefer … real estate tax (increases) are usually one of the last ones," Ardis said, referring to six potential revenue sources the council could consider to pay for additional public safety officials or other employees. One of alternatives is a 1 percent increase in the property tax rate that could generate $171,600.

"All the options are on the table. We're not halfway through the budget yet."

Right now, city staff members are pitching a $23.4 million 2008 budgeted property tax levy, which is about a 6 percent increase from last year's $22 million budgeted levy, with the tax rate staying the same.

The city's EAV is expected to climb from $1.6 billion to $1.72 billion next year. City officials also predict new construction to increase from $37 million to $39 million budgeted for 2008.

Finance Director James Scroggins said even with the tax rate stabilization, property owners should expect continued increases in taxes as property values rise.

"Taxes will go up based on normal growth of your property value," he said. "As EAV goes up, that will cause your property tax to go up."

Scroggins noted the city's portion of the overall property tax bill is only 11 percent, second only to District 150, which is a whopping 53 percent of the bill. District 150 officials will likely set a tax levy and rate sometime next month.

The smallest portion of a Peoria homeowner's tax bill goes to Peoria Township. On Thursday, township officials agreed to lower their rate from 13.7 cents per $100 equalized assessed value to 13.5 cents while approving a $2 million levy. That rate and levy will be up for City Council approval Nov. 13.

John Sharp can be reached at (309) 686-3282 or jsharp@pjstar.com.

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