Attention Englewood taxpayers: If your property is assessed at $500,000, your tax bill in July will be an estimated $350 higher.
Recent commercial development added $230 million more to the city’s taxable base of properties this year, keeping the percentage of taxes homeowners have to pay low.
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INSIDE THE NUMBERS
Total 2008 Tax Levy (estimated)
Municipal — $41.6 million
Schools — $46.4 million
County — $8.5 million (up an estimated 4 percent)
Sewer — $2.6 million
Open Space — $500,000 (up an estimated 5.2 percent)
Total: $99.6 million to be raised by taxes
Total 2008 value of all taxable properties: $5.2 billion
$99.6 million divided by $5.2 billion = +/- $1.91
New tax rate = $1.91 per $100 of assessed value on a home or property
Old tax rate = $1.84 per $100 of assessed value
Difference = 3.8 percent increase
Average value of a home = $569,061
Example: For the average home valued at $500,000, property taxes will increase by about $350
Source: Actual numbers were provided by the city’s finance office. The total tax base is listed on the 2008 city budget. Estimated figures were derived by using possible maximum percentage increases provided by the city’s finance office. In some cases, estimate percentages were derived using 2007 final tax numbers.
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Your taxes will cover both the rising costs of city, county and school services as well as a decrease in state aid.
An analysis done by the Northern Valley Suburbanite resulted in a new estimated tax rate. The number was derived from estimated figures provided by the city’s head of finance and 2008 budget documents.
Taxpayers will have to pay an estimated $1.91 per $100 of assessed value on their property in taxes to support the city, public schools, county, open space tax and sewer costs.
Last year, the overall tax rate was $1.84. That means taxes this year will increase by an estimated 3 to 4 percent.
The total tax levy, or the money needed in taxes to support all five budgets, is $99.6 million. That’s about $8 million more in taxes from homeowners, and anyone else who owns property in Englewood, compared to last year’s $91.3 million.
The average Englewood homeowner will be paying about $300 more in property taxes this year to cover all services.
For example, if your last tax bill was $9,200, the next one you receive in July will be $9,550, if your home is valued at the average $500,000.
However, the average increase in taxes for residents this year was lowered because taxes came from another source – new development.
The total of all the city’s taxable properties, or tax ratables base, went from $4.9 billion in 2007 to $5.2 billion this year.
That’s an increase of $230 million, courtesy of new developments added to the tax roll or recent developments now paying 100 percent of their tax obligations.
But the city’s tax base will not grow at that rate next year from development, so city officials are aiming to hold the line on spending, planning for future years and future tax increases.
Interim City Manager Robert Casey said that in 2009, that $230 million will shrink to $100 million of added taxable assessment, thus reducing the money the city will make off those properties.
"We will not get that increase to the base from development at the same rate," said Council President Ken Rosenzweig.
"This is the first time the council is looking ahead."
In an effort to curb the continuous impact of rising expenses and reduced revenues, the City Council is looking to trim the current city budget of $58.5 million by gradually reducing employees, programs and extra compensation paid to employees after they’ve retired.
The council is faced with managing the city with an eye on the future.
City officials have said they can no longer rely on the state for help with funding. The cost of services keeps rising and insurance and pension costs for many of the city’s approximate 310 employees is continuing to grow at a rate city officials cannot control.
If city officials do not limit the property tax increase to about 4 percent per year, taxes could increase significantly.
Some financial experts say that if total taxes increase at a rate of 7 percent each year, taxpayers could potentially pay double in the next 10 years.
Still, some residents say they don’t understand why they are paying more in taxes but are getting fewer services.
The answer lies in the rising cost of paying teachers, police officers, firefighters and other public employees.
Not only do public employees get salaries and contractual raises but when they retire or can no longer work, the city has to continue to pay for their healthcare, pensions and terminal leave.
A proposal is on the council’s table to trim the city’s workforce by 11 public works employees over the next few years, not by laying employees off but by not replacing them when they retire.
Interim City Manager Robert Casey also proposed that the Council have a stricter terminal leave policy – by not hiring new employees until the terminal leave benefits of retired employees are paid off.
The majority of the money taxpayers pay goes to public schools and the $68.5 million school budget is not being cut.
Board of Education President Glenn Garrison said school officials are holding their increase to 4 percent, the lowest it has been in years and they are not reducing programs and services.
