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Council abates property taxes tied to general obligation bonds, says taxes would rise by $2.8M without action
Summary
The council approved Resolution 24-2030 to abate property taxes on general obligation bonds; staff told the council that without abatement property taxes would have increased by $2,826,561. The resolution passed unanimously.
The Galesburg City Council unanimously approved Resolution 24-2030 on Dec. 16 to abate property tax collections tied to the city’s general obligation bonds.
Mr. Hansen, presenting the item, explained that bond payments are typically part of property taxes and that council-approved abatements prevent an increase in tax levies. “If taxes on general obligation bonds were not abated taxes, specifically property taxes would be increased by 2,826,561,” Hansen said. Staff told the council that bond proceeds and anticipated revenues already accommodate the debt service and recommended abatement.
Council approved the resolution by a 7–0 roll call vote. The resolution, as presented, directs the abatement going forward consistent with the city’s budgeting for bond payments.
