Tuesday, Aug. 20

 

City sales tax increase
will be on the ballot

[AUG. 20, 2002]  The Lincoln City Council made it official Monday evening, voting to put a referendum asking for a one-half of 1 percent sales and service occupation tax increase on the ballot Nov. 5.

If approved, the increase would boost the city’s sales tax from 6.25 percent to 6.75 percent, bringing the city between $400,000 and $570,000 more each year. The need for additional revenue became evident last April when the council had to borrow from set-aside funds to make up the deficit in its working budget for the 2002-2003 fiscal year, even after making deep cuts in expenditures.

According to then finance chairman Steve Fuhrer, the city spent $285,000 more than it took in during the 2001-2002 fiscal year. Previous budgets also showed more expenditures than revenue, and Fuhrer repeatedly warned that the city must set up a long-term plan to reverse that trend. The sales tax increase, if approved, will not help the current budget but will put more money in the city treasury the following year.

The new tax would not include vehicles licensed or titled by the state, such as cars and trucks, or food items and prescription drugs, which are taxed at only 1 percent. Historically low interest rates, which reduce the amount of money the city earns on its investments, and decreases in sales and other taxes returned by the state are the major reasons for the lower-than-usual city revenues, according to Les Plotner, city treasurer.

 

Plotner’s report to the council Monday was evidence that the city must still contend with lower returns on its investments. The highest rate for a 32-day certificate of deposit available locally was 1.51 percent from State Bank of Lincoln, Plotner told the council. Other banks quoted rates as low as .98 percent and 1.35 percent.

In other business, the council voted to add property along Fifth Street Road and Lincoln Parkway to the Lincoln/Logan County Enterprise Zone. This includes the American Legion site and will permit the Legion to save sales taxes on materials for its rebuilding project.

The inclusion must be approved by the Logan County Board and certified by the Illinois Department of Commerce and Community Affairs. Owners of property abutting the site will be notified, and the properties in the new enterprise zone are not subject to real estate tax abatement.

 

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The council also voted to revise its handicapped parking ordinance to be in compliance with the new state ordinance that goes into effect Jan. 1, 2003. The state has amended its ordinance to say that any motor vehicle "not properly displaying" handicapped parking decals or license plates is prohibited from parking in a zone designated for the handicapped.

The decal "must be displayed properly where clearly visible, hanging from the rearview mirror or displayed on the dashboard so it can be seen," the state ordinance says. Also, only the authorized holder of the decal can legally use the handicapped parking space.

The city’s ordinance change will become effective on Jan. 1, 2003, at the same time the state change goes into effect.

Other agenda items included approval of spending $350 for five aldermen and several city officials to attend an Illinois Municipal League Conference in Chicago and approval of $750 from the Americans for Disabilities fund to help pay for Scully Park playground equipment designed for the handicapped.

The council also approved reappointing Clarence Barney to the Police Pension Board and rerouting traffic around the fairgrounds for this weekend’s upcoming balloon fest. The traffic route will be the same as it was last year: one way southbound on Jefferson from Woodlawn to Short 11th Street, one way westbound on Short 11th from Jefferson Street to Postville Drive, and one way northbound on Postville Drive from Short 11th to the Lincoln Parkway cut-over.

A proclamation designating Aug. 19 to 23 as recognition days for Boy Scouts of America and a proclamation appointing Aug. 21 as Scott Altman day were also approved.

[Joan Crabb]


Articles from the past week

Monday:

  • DHS moving LDC residents out fast

  • Ethanol production study funded

Saturday:

  • Maxwell plaque to be dedicated Aug. 24

  • New DARE ATV shouts style

  • Astronaut will spend a day in Lincoln

Friday:

  • Union appealing IHFPB decision to close LDC

  • Most requests are moderate as county begins budget hearings

Thursday:

  • Illinois Health Facilities Planning Board unanimous on LDC vote: CLOSURE!

Wednesday:

  • City may change ordinance to permit CILAs

  • Illinois Virtual High School now more affordable

Tuesday:

  • Governor appoints new members to IHFPB before crucial LDC vote

  • Governor signs bill allowing cell phones in schools

  • ‘A Chain Reaction of Hope,’ says Miss Illinois

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