SYCAMORE | Increasing property costs are leading to an increase in property tax, as discussed at Monday’s Sycamore City Council meeting.

Five options were proposed by Sycamore City Manager Bill Nicklas to either increase the levy or leave it unchanged. The numbers calculated were most noteworthy with the three percent increase, as Nicklas himself recommended that specific increase to the city board.

The impact this would have on a single-family homeowner would be a decrease in the city tax rate of 8.1 percent. There also would be a decrease in actual city taxes paid by the current homeowner who makes no substantial home improvements.

Also noted were property taxes — minus the portion going directly to the fire and police pension funds — that would represent 17.97 percent of all budgeted fiscal year 2006-2007 general fund expenditures. This would lead to an increase in the monies available for general operations by $35,540 or 2.38 percent.

“We should see no increases in net taxes paid,” Nicklas said. “We’ve flipped the tables of property taxes and sales taxes.”

Sycamore Mayor Ken Mundy is optimistic about the change.

“It’s gratifying that we’re able to offer some relief,” Mundy said. “We’re doing more than our share to keep our taxes in line.”

Sycamore’s First Ward Alderman Alan Bauer said this levy also will help alleviate current economic pressures.

“In light of the increase with fuel, [we can] keep dollars back in the pockets of the people who have been hit the hardest,” Bauer said.

Also on the agenda was a glimpse into the future. With the city continually expanding, the council has made efforts to keep the levy at or below the rate of inflation. The council’s efforts — which have incrementally reduced the overall tax burden of local taxpayers — have made Sycamore slightly more competitive in attracting business to the region.