“County property tax overhaul urged” plus 1 more

Posted: 20 Dec 2010 04:48 AM PST

County property tax overhaul urged

By David Roeder Business Reporterdroeder@suntimes.com Dec 20, 2010 06:48AM

Cook County's mind-boggling property tax system should be simplified and made fairer, a taxpayer watchdog group argued in a report to be issued today.

The nonpartisan Civic Federation said widely used tax breaks such as homestead exemptions should be reduced or eliminated. Tax relief for homeowners, the group said, could come through expanding a state "circuit breaker" program and limiting the benefit according to income.

The federation said changes introduced into the property tax system over the years have hurt uniformity, resulting in similar types of properties in similar neighborhoods paying different taxation rates.

Its report comes out as many Cook County homeowners have struggled to make sense of their recent tax bills. Some of the bills rose despite declines in the assessed valuations of the homes, often because local governments levied higher taxes or because of changes in the exemptions attached to the properties.

The county's tax collection system itself should be reformed, the report said. It called for making the treasurer's office, which collects the money, nonelected and said it should be combined with functions of the county clerk, recorder and auditor.

But despite problems with the system, the federation said the property tax is an efficient way to support schools and local government. It said it opposes proposals to swap property tax funding for a higher state income tax.

"The locally controlled and collected property tax is the most stable source of revenue for school districts, and the state's fiscal crisis has shown it to be an unreliable funding partner," the report said. It recommended that state aid be targeted to school districts in poor communities.

The federation said property tax-based incentives should be reduced and that tax-exempt property, usually used for charitable or religious functions, should be strictly defined.

The group also reiterated a long-stated goal, that the county's more than 1,300 taxing districts be consolidated. It said most county property owners pay taxes to "roughly seven to 15 units of local government."

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Osseo adopts 2011 budget, property tax levy

Posted: 20 Dec 2010 12:07 AM PST

The Osseo City Council adopted its 2011 city budget and property tax levy during its Monday, Dec. 13, council meeting.

The council adopted the 2011 city budget and property tax levy.

City Administrator Jeffrey Dahl said the council and staff had been working on reviewing the budget since this summer. He said the only amendment from the Nov. 29 council work session was a deduction of the Economic Development Authority levy from $45,000 to $30,000.

Highlights of the 2011 General Budget include: the general operating budget is down 3.8 percent, or $77,164, from 2010 ($2,012,313 to $1,935,149), salaries are down 9 percent due to staff cuts and personnel changes, no cost of living increases (step increases remain), capital outlay (previously accounted through various equipment funds) increased 175 percent from $150,000 to $412,728 in 2011 and Local Government Aid (LGA) accounts for $798,902 or 41.3 percent of 2011 revenues.

The proposed 2011 Property Tax Levy is needed to support the general operating budget (general levy) and the previously approved special improvement projects (special levies). Highlights of the 2011 Property Tax Levy include: property tax levy are up 5.3 percent or $62,915 from 2010 ($1,186,244 to $1,249,159), the general fund levy accounts for 60.1 percent of the overall property tax levy, and 2011 should be the last property tax levy needed for the Central Avenue project.

The tax levy consists of $750,771 for the General Fund Levy, $117,929 for the G.O. Bond 2003C Levy, $108,200 for the G.O. Bond 2004A Levy, $71,362 G.O. Bond 2009A Levy and $200,897 G.O. CIP Bond 2010A Levy. This makes the tax levy total $1,249,159).

Resident's property taxes are proposed to go up 5.3 percent in 2011, most because of the addition of the special levy for the Central Avenue Improvement project and a recent capital improvement bond refinancing. The school district and county taxes are generally flat across the bound Dahl said.

Dahl said the city's budget is a balance of revenues and expenditures.

The cost of city services for a $200,000 home is about $903 annually.

Dahl added that the actual amount of LGA the city will receive is still unknown. He said the past three years the city has received an average of $50,000 less than what was originally indicated. If the same action was taken this year, Dahl said the city would receive $750,000 in LGA this year.

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Property Tax

Monday, December 20, 2010