Pensions & TIF in DeKalb

Except in the case of the Tax Increment Financing (TIF) districts, DeKalb’s property taxes go toward pensions and FICA almost exclusively, and its share of your annual property tax bill is about 7%. Using these facts along with TIF revenue data, I set out to estimate how much city property tax flows into TIF funds that might otherwise have gone to city pensions.

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Continue reading Pensions & TIF in DeKalb

Property Tax Levy & IMRF Contributions

In “DeKalb Gives First Approval to Property Tax Levy,” we get this:

The aldermen had previously set the ceiling for a property tax levy at $9.67 million, and were given two options by city staff to set the request at either $9.67 million or $9.63 million – the amount the city levied last year.

According to the Chronicle, the city council appears to support the higher levy, and the rate would go up, too, to about 79 cents. Anything else?

The city uses property tax revenue to fund pensions of city staff, police officers and firefighters. The $9.67 million request would be able to fund all the police and fire pensions, and 45 percent of the pensions of city staff. The other 55 percent will have to be made up from one of the city’s other funds, she said.

Let us summarize (using both today’s Chronicle story and Monday’s CB post.)

  • As a rule, city property tax collected ONLY goes to city pensions.

  • The property tax levy will probably go up for tax year 2012.

  • As the levy goes up, the rate will go up, too — about 7 cents.

  • A 7-cent hike would probably set a record.

  • Despite a probable record hike — and the investment gains we showed you Monday — it’s said we still need to put more money up front to cover rising costs.

Continue reading Property Tax Levy & IMRF Contributions

DeKalb Property Taxes & City Pensions

The agendas for the council meetings tonight include a public hearing about setting the city’s property tax levy, which they must think will be controversial because you must wade through 112 pages of the PDF file to get to the related items (also see page 114).

I was surprised to find out that the levy request is the same as last year, because it said in the newspaper that the rate was once again expected to go up significantly. Having to raise the rates repeatedly to keep the take the same is bad news. It reminds me of the utility tax problem. Some communities are beginning to recover, but not DeKalb, it seems.

Here’s one area where we ARE bouncing back, though:

[easychart type=”line” width=”420″ title=”Pension Fund Balances” groupnames=”Police, Fire” valuenames=”’06, ’07, ’08, ’09, ’10, ’11, ’12” group1values=”20.7, 23.1, 22.4, 20.5, 22.5, 25.9, 28.1″ group2values=”15.7, 17.7, 17.6, 16.3, 18.1, 20.9, 22.5″ minaxis=”15.5″] Continue reading DeKalb Property Taxes & City Pensions

Chronicle Editorial Board Hasn’t Lived Here Very Long

Chronicle staff should live in this county for awhile before commenting on certain issues, such as what one can find today in “Our View: Falling home values a trying trend in county“.

When the housing market was healthy and new homes and businesses were built at a healthy clip, the opposite was true. Property values grew faster than the rate of inflation, property tax rates fell, and along with them, the tax cap led to decreases in annual tax property tax bills.

The person who has seen her property taxes rise on a modest home since 1993, some years by HUNDREDS more, is somewhat irritated to hear the Chronicle try to tell her otherwise.

Still, let’s stick to the facts. Here are the property tax rates and levies for the City of DeKalb* for each tax year since 2000:

2000 – 0.50490, $1,892,659
2001 – 0.52989, $2,121,088
2002 – 0.60566, $2,514,566
2003 – 0.59666, $2,600,088
2004 – 0.60000, $2,738,052
2005 – 0.59302, $3,022,165
2006 – 0.59672, $3,400,147
2007 – 0.60000, $3,742,937
2008 – 0.60000, $3,875,130
2009 – 0.65000, $4,185,457
2010 – 0.68990, $4,196,889
2011 – 0.72052, $4,197,062

Rates never fell during this period. Why? Because tax caps don’t apply to Home Rule communities.

Let’s do another one. Continue reading Chronicle Editorial Board Hasn’t Lived Here Very Long

DeKalb’s Pension Funding Progress

The Comprehensive Annual Financial Report (CAFR) includes a table called “Schedule of Funding Progress” for each pension fund that the city is responsible for. An actuary determines the fund assets and liability, and from these are calculated the percentage that the fund is funded as well as the unfunded liability in dollars. I’ve pulled numbers from three or so CAFRs to bring you 12 years’ worth* of these calculations in graphic form.

[easychart type=”line” width=”420″ title=”Yearly Funding of Pensions by Percentage Funded” groupnames=”IMRF, Police, Fire” valuenames=”’99, ’00, ’01, ’02, ’03, ’04, ’05, ’06, ’07, ’08, ’09, ’10, ’11” group1values=”101.47, 109.49, 111.34, 107.18, 98.78, 82.83, 72.48, 73.17, 77.08, 80.46, 60.69, 62.50, 54.54″ group2values=”88.52, 86.68, 73.96, 66.09, 65.26, 66.86, 67.12, 67.24, 71.63, 64.38, 55.91, 59.59, 64.99″ group3values=”62.13, 57.64, 57.03, 52.85, 51.19, 53.21, 51.64, 49.44, 50.20, 46.16, 40.39, 42.59, 45.77″ minaxis=”40″]
Continue reading DeKalb’s Pension Funding Progress