Every year around this time, the tax levy is set and DeKalb has chosen to keep the rate stable despite the rising cost of municipal employees’ pensions.

The cost of pensions is rising because of increased staff and downswings in the stock market, said Linda Wiggins, DeKalb assistant city manager. This leads to smaller returns on Illinois Municipal Retirement Fund investments.

Tax rate same as last year

The 2005 tax rate is 60 cents for every $100 of Equalized Accessed Valuation, the same as last year. The EAV is the value of one’s house and property. Property values increased 5 percent in the last year.

The rate has been calculated with the assumption that DeKalb County will credit the city $27 million of new construction value. However, that will not be known until early next year at the earliest, maybe February.

This year’s total tax levy has been set at $6,955,431.

The county collects the 2005 levy in 2006. The tax bill is sent out in May and can be paid in two payments, Wiggins said. One is due in June and the other is due in September.

The county then passes the funds onto the city, starting May through November, said DeKalb Comptroller/Treasurer Ted Kozinski. The money collected will work as the capital for the 2007 fiscal year beginning July 1, 2006.

The deadline for DeKalb’s 2005 property tax levy payment is Dec. 27.

Shortfall predicted

The first reading of the tax levy ordinance occurred at last Monday’s city council meeting. The city will conduct a public hearing at the Dec. 12 city council meeting following the final reading and approval.

The public hearing is conducted “to allow the public to express their sentiments on the levy,” Wiggins said.

Just like last year, this year’s levy will not cover the actual costs of pensions, producing a shortfall of $152,462.

An increase of 3 cents in the tax levy rate would cover the difference, but rather than raise the rate, the city will pay for the shortfall through other revenue streams, Wiggins said.

In other taxing news, at its Nov. 9 meeting the Library Board voted to keep its levy at the same rate, which is a little more than 21 cents per $100 EAV.