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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 in Americans With Disabilities funding 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]
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