Monday, December 12, 2005

City approves tax increase

Monday, December 12, 2005 - Posted 7:58:20 PM

The Minonk City Council approved an increase in the property tax levy.  City Administrator Trent Smith said as required by law, under the Truth in Taxation Act, the City must announce its projected property tax levy at a public hearing if it will be 105%, or more, of the previous year’s operating levy.  

Last year’s property tax extension for operating funds was $320,246.  This year’s operating funds levy request is $368,659 or a 15.1174% increase in actual monies requested.  This increase is a factor of keeping the tax rate consistent while the assessed valuation of properties continues to increase.  The tax rate has actually dropped in previous years.  The new tax levy will increase the city property tax on a $150,000 home by $43.

The taxable assessment has increased 9.28% in spite of an owner occupied exemption increase from $3500 to $5000 and a homestead exemption increase from $2000 to $3000.  This means that the new homes and businesses are being included in the assessment thus spreading out the tax burden.

While the revenues and expenditures have increased over 15%, the actual total tax rate has only increased 5.34% in Operating and only 3.65% in total. This is mostly due to increases in liability insurance costs, audit costs and ambulance costs combined with cost of living increases.

There were no comments from the public at the public hearing on the tax levy prior to the city council meeting.

Approve TIF money for Motel 6

The city council approved the payment of a third installment of $10,000 to the owners of Motel 6 from the TIF I Fund for interest costs to meet the eligibility requirements for TIF funding.   The council had previously agreed to a grant of $30,000 to the motel and this represents the final installment. 

The Motel 6 was required each year to submit a request for the funding which they have done.  Last year they were asked to confirm their occupancy rates.  From November 2004 to October 2005 they had 7808 rooms.  The motel owners indicated that the occupancy is getting better, but they are still at about the break-even point.  

Audit Discussion

Mayor Koos said that the city must start to watch its overhead expenses.   One thing that was spelled out in the annual audit is that 50% of the revenue comes from property taxes and the balance is from sales tax, income tax, utility tax, and other taxes.  The cost of running the City of Minonk is falling on the property tax and the burden is still on the property owners. 

The mayor indicated that he will set forth some ideas at the January 6th meeting to find better use of the city's money as well as trying to control some of the costs that are increasing faster than our revenue.

Zoning Board Recommendation

The council approved a change in an ordinance addressing holiday trailers.  The ordinance specified that no occupied or unoccupied Manufactured Home shall be permitted on any lot or tract of land in any Residential District except;

1.  One travel trailer coach or camper, which may be parked on a lot of an occupied dwelling, but shall not be connected to utilities for the purpose of habitation.

2.  A travel trailer coach or camper of bona fide guest of an occupant of a dwelling, located on that occupant’s lot or tract of land, which shall be for a stay of temporary duration which, shall not exceed thirty days within a twelve-month period.

Further, that Ordinance 2000-08, SECTION 17.00.05 Definitions be amended to change "Structure" to read in its entirety as follows: anything constructed, erected or placed, which has a location in or on the ground or constructed on skids.

   "Structure" shall not include:
  • Mailboxes, unless incorporated in a structure which requires a permit

  • Trees and shrubbery

Any structure larger than 160 square feet must be supported by and secured to concrete foundation.

Committee Reports

Public Works - Alderman Steve Maddox reported that we need to start looking for a new salt truck as our present one is basically beyond repair because of rust and corrosion.  The truck is from the 80’s and we are also having problems with the hydraulic pump on the spreader itself.  He also reported that the City was ready to start interviews for the Ambulance Squad Chief on Tuesday December 6, 2005.

Public Safety - Mayor Koos reported that the City has received a number ofapplicants for the new Ambulance Chief position and those interviews will be will be starting on December 6, 2005.

Economic Development - Alderman Buchanan reported that he was looking at the second week in January 2006 for having a meeting with the racetrack developers to find out what was going on from their end. It will be either on January 10, 2006 or January 12, 2006.

City Administrator Comments: 

1.  We have had a lot of interest in the EMS Ambulance Chief position.   To date, I have spoken with seven individuals including four paramedics.  The committee will be starting the interview process tomorrow to determine technical and management skill and will make a short list for a second interview before the entire council.

 2.  Reported that he and Charlie McGuire will be required to testify in a jury trial scheduled to begin in Eureka on March 20, 2006.   The City’s insurance company is suing Com Ed for reimbursement of $92,000 in claims they paid to the City for pump damage in Well #3 because of an electrical short caused by a worn spot on an overhead Com Ed supply line.

3.  With the salt truck, we will start looking for another one.  We have $12,500 in reserve plus another $5000 that was going to be put in reserve this year for a plow truck.

Other Business

Glennda Weers was appointed to the Minonk Recreation Board.