Property tax rates would increase, but the total amount Champaign property owners pay would not under a recommendation administrators will give to city council members Tuesday night.
CHAMPAIGN — Property tax rates would increase, but the total amount Champaign property owners pay would not under a recommendation administrators will give to city council members Tuesday night.
City officials are expecting the city's total property value will drop 0.88 percent in the next tax cycle, but they are asking the city council to collect the same amount of property tax dollars next year. That would mean a property tax rate increase, even if the dollar amount of what homeowners actually pay does not change.
Council members will examine the city's financial situation and a property tax levy when they meet at 7 p.m. Tuesday in the Champaign City Building, 102 N. Neil St.
City administrators will recommend that the city council adopt a $19,955,632 property tax levy, which is identical to what they have collected the previous three years. That tax levy would result in a projected tax rate of $1.3324 per $100 of assessed value — higher than last year's $1.3152 rate because the average property value in the city is projected to drop a bit.
The city's share accounts for roughly 15 percent of a homeowner's property tax bill. Under the $1.3324 rate, the owner of a $150,000 home would pay about $666 to the city, an increase of a just under $9 from last year's rate.
It is the same strategy city officials have used to set a tax levy the past two years, when property values have been dropping.
It as a deviation, however, from the five years prior to that: Property values steadily increased before the recession and city officials adopted the same tax rate of $1.2942 for several years in a row — resulting in more tax revenue each year as values climbed.
City officials expect the city's total assessed property value to drop from $1.510 billion to $1.497 billion next year, according to city documents.