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Finance director recommends modest levy increase; council signals support for middle option to fund pensions and emergency services
Summary
Finance Director Joanie presented four levy scenarios tied to a 9.5% equalization increase in assessed value and recommended funding special levies (police pension, IMRF, Social Security) with a modest levy rise; council signaled majority support for the 'green' option that staff said would increase the levy by about 4.13% while reducing the tax rate.
Finance Director Joanie reviewed the city’s 2025 tax‑levy options and the calendar for setting a tentative levy. She told the council the city is using a projected equalized assessed valuation (EAV) of about $474,000,000 and that the state’s equalization factor for the area is roughly 9.5 percent.
Joanie laid out four scenarios: keep the levy rate the same (blue); fund special levies in full (green); use only the portion attributable to new development (yellow); or keep the levy amount unchanged (orange). "I would be comfortable recommending the green option," Joanie said, explaining that it funds required special levies — primarily pensions — without triggering a truth‑in‑taxation hearing.
Joanie noted the police pension recommendation put forward was $890,000 based on a recent actuarial review and that the total special‑levy increase staff modeled was roughly $94,901 in the green scenario. She explained the accounting mechanics to show how a modest levy increase can fund required costs while slightly lowering the statutory levy rate because of the increased EAV.
Council members debated priorities. Alderson McIntyre said he supported the green box and emphasized long‑term fiscal prudence: "I support the staff on this one," she said. Alderson Blundy pressed for clear detail on what the discretionary portion of levy revenue pays for, asking staff to itemize the general‑corporate items funded by that slice. Several council members said a modest, predictable increase now could prevent larger increases later when pension and contract costs rise.
The mayor asked for consensus for a tentative levy to include on next week’s resolution; council members indicated majority support for the green option. Staff will prepare a resolution with the recommended tentative levy for the next meeting and will bring additional budget detail on how levy proceeds are allocated if requested.
Next steps: staff will file a tentative levy number in a resolution at the next council meeting and will return with more detailed breakdowns of discretionary versus mandatory levies and how general‑fund revenue streams cover remaining contract obligations.
