Conservative financial policies and proactive measures taken during the recession continue to pay off as the City of Champaign’s financial forecast shows continued growth in our local economy and City revenues. The forecast predicts additional funding will be available to address some of the City’s more critical needs, like street repairs and public safety staffing. But uncertainty over the State’s budget impasse requires continued monitoring and contingency planning. The City Administration will recommend that the City Council set aside extra reserves pending the State’s budget decisions, which could include reduced payments to the City.
Finance Director Richard Schnuer reports, “The City’s financial forecast is positive, projecting a 2% increase in sales tax revenue and an increased rate of growth in the overall value of taxable property in the City. This is good news, but is tempered by delayed payments from the State and continued uncertainty surrounding the State’s budget impasse.”
The anticipated 2.7% growth in the value of taxable property in the City results from new development including the large high-value buildings in the campus area. In addition, the value of existing property has stabilized following several years of decline due to the recession.
Schnuer reports, “Due to projections for increased property values, the Administration will recommend that the City Council maintain the same estimated tax rate of $1.3152 per $100 EAV. This means most property owners would pay the same amount of City property tax that they paid last year.”
The financial forecast and tax levy recommendations will be considered by the City Council during their November 3rd meeting.
Contact: Richard Schnuer (tel): 217-403-8940 | [email protected]