Urbana council adopts levy and abates certain bond levies, staff stresses abatement keeps tax rate stable

The Urbana City Council adopted an ordinance levying taxes for fiscal year 2025‑26 and separately approved abatement ordinances intended to keep the city's tax rate stable. Staff presented the $12,053,950 levy figure as the estimate for the coming year and explained that the levy amount does not automatically mean each taxpayer's bill will rise by the same percentage.

Finance staff explained the abatement process to the public: the county calculates levy extension based on assessments, and the city then asks the county clerk to abate (reduce) the levy so the tax rate remains at the city's intended level. "We levy higher because we don't know what the final assessments will be," the staff explained; abatement language is then used to cap the effective rate before bills issue.

Council also approved abatements tied to general obligation bonds. Staff said the bonds for fire stations and Hotel Royer will be paid from a mixture of revenue sources, including central TIF increment and hotel‑related taxes, rather than by direct general property tax levy. Council discussed reporting and tracking to ensure project revenues cover debt service.

All related ordinances passed on roll call votes. Council members urged continued transparency about how revenues from projects like Hotel Royer are tracked and reported to ensure bond coverage, and staff said they will continue to monitor and provide updates.

The abatement ordinances passed with recorded roll calls; members and staff said the process preserves a stable tax rate while permitting the city to meet bond obligations through designated revenues.