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Geneva council moves to oppose state bill that would eliminate 'inside millage' property tax
Summary
City officials told the Geneva City Council that House Bill 335 would cut roughly $500,000 annually from the city’s revenues and asked the council to draft a formal resolution opposing the measure.
Geneva City Council members were told June 9 that proposed state legislation to end municipal “inside millage” property-tax collections would remove roughly $500,000 in local revenue and prompted council members to prepare a formal statement opposing the bill.
City Manager Joseph Marquette told the council the legislation, referenced in the meeting as H.B. 335, would eliminate the city’s inside millage and that the bulk of the lost revenue — about $400,000 — flows to the general fund. "This is gonna be devastating to schools," Marquette said, adding that the bill would also cut funds earmarked for police pension and the cemetery.
Marquette and several council members discussed the bill’s stated proposal that municipalities could make up revenue losses through other local taxes such as income or sales levies. Marquette said the suggestion was unrealistic for Geneva: "You can raise your income tax. I do not see us going to the public at this point, you know, seeking an increase in our income tax." He also noted that some counties have already raised sales taxes to shore up revenues, but said that is not an option for Geneva because county sales tax is not controlled by the city.
Council members asked for a prompt response. The mayor proposed drafting and voting on a resolution opposing H.B. 335 to make the city's position public; council members agreed to schedule a short special meeting in the coming weeks to consider that resolution and to meet during daytime hours so members who will be absent for the regular July session can participate. Council members also discussed contacting the city’s state representative to express concerns.
Marquette said the bill text runs about 170 pages and remains under review; he and city staff are preparing detailed impact information for the council. Council members emphasized the proposal’s timing as especially problematic because local governments and schools are already facing reductions in other state and federal funding streams.
The council did not take a formal vote on the substance of the bill during the meeting but directed staff to prepare a draft resolution for an upcoming special meeting and to share impact figures publicly and with state lawmakers.
