Mary Hansen
The State Journal-Register
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Property tax rate
By a vote of 9-1, aldermen approved the city’s property tax rate for the coming year as the same as it’s been for the past several years — 0.9385 per $100 of assessed valuation. The money goes to pay the city’s state-mandated police and fire pension payments, which next year will be roughly $21.3 million.
City budget director Bill McCarty said that while property tax revenue would cover the mandatory payment this year, it likely won’t next year.
Ward 2 Ald. Herman Senor and Ward 7 Ald. Joe McMenamin, who was the lone “no” vote, raised concerns over the increasing pension debt.
“It sounds attractive to say that we’ve kept the real estate tax rate level for 20 years,” McMenamin said. “… During the same time, we’ve gone into debt by $200 million. So what good is it to cheer that we’ve kept the tax rate at a level amount, but we’ve gone heavily into debt and don’t have a plan to take care of that increased debt?”
Ward 10 Ald. Ralph Hanauer asked McMenamin to bring forward suggestions for how to address the city’s pension woes. The mayor and the budget department have the responsibility to bring options forward, which aldermen can vote on, McMenamin countered. He reiterated his support for increased revenue and containing city costs, possibly through pay freezes for city employees.
Langfelder said pension issues will be discussed when the council begins to debate a budget at the end of the year. The city’s new fiscal year begins March 1.
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Joe McMenamin for Ward 7 