By: Diane Benjamin
The answer to that question might lie in the Financial Trends and Conditions Reported presented at Tuesday’s Normal Town Council meeting: https://www.normal.org/DocumentCenter/View/19250/2021-Financial-Trend
Pensions costs continue to increase and police and fire pension funding level decreased. IMRF is only well funded because they don’t put up with underfunding. (It also covers everybody else – the “professional staff”)
So, how does Normal fund pensions – by their choice? Future property tax projections are favorable since property values are increasing. Normal can keep the rate the same in the future and still collect more money because you will be paying more on your new assessed value.
The problem is how will they increase payments to the police and fire pensions this year – based on last years assessed values?
The comparison above to other cities wasn’t included by accident. I wonder if a rate increase will be justified because the Town has proven you aren’t paying your fair share:
The Equalized Assessed Value didn’t increase enough in 2020 to “offset increases in expenditures”.
When this discussion takes place, this is a slide that won’t be mentioned.
The TOTAL property tax rate in Normal is HIGHER than:
Bloomington and Springfield and Champaign, most likely because of Unit 5:
Take the time to look at the entire report. Most of the Town Council worships it.
Keep in mind Normal choses to fund pensions with property taxes, they don’t have to.
From the packet for last Tuesday: PDF page 66 https://normal.org/ArchiveCenter/ViewFile/Item/4067
Notice none of that surplus got assigned to funding pensions. “Project reserve”? Hum, I can’t imagine what project they are going to fund instead of public safety.