7% property tax increase likely coming to Decatur
The Decatur City Council moved one step closer at its last meeting to raising the property taxes it collects by 7% in 2025. The majority of city council members are advocating that the amount of tax collected increase at a rate higher than inflation or the city’s projected increase in equalized assessed value. Total property taxes collected would increase approximately $1.1 million from $15.8 million to $16.9 million. A large property tax increase is poor public policy, is unnecessary, and the city council should focus more on reducing unnecessary spending and allowing new businesses in Decatur.
PROPERTY TAXES ARE ALREADY TOO HIGH
Macon County, IL had the 10th highest effective property tax rate in the U.S. in 2023 at 2.13% according to a property tax analysis by ATTOM (the national average is 0.87%). In the second quarter of 2023, Macon County, IL had the highest percentage of home loans underwater in the country (17.6%) and the likelihood of a Macon County property with a foreclosure filing was 12.9 times greater than the national average according to ATTOM. Furthermore, over 40% of Macon County residents do not make enough income to make ends meet let alone pay higher taxes. A 7% property tax increase seemingly ignores the challenges Decatur residents face on a day-to-day basis.
ALLOW A CANNABIS DISPENSARY BEFORE RAISING PROPERTY TAXES
The Forsyth Village Board recently amended its ordinance to allow for a cannabis dispensary. When the dispensary arrives, it is expected to bring over $560,000 in annual revenue to the village. Meanwhile, in Decatur, the majority of council members refuse to put a discussion of a cannabis dispensary on the agenda, let alone bring it to a vote. It is unclear what the arguments are for requiring Decatur residents to drive to an adjacent town to purchase a legal product. The city is simply losing hundreds of thousands of dollars in tax revenue each year to nearby municipalities, prohibiting a retail destination that could be a catalyst for people to visit the city’s other fantastic small businesses, and inconveniencing its citizens. Residents are justified in their concern that the city council would rather levy a 7% property tax increase on all property owners instead of permitting the sale of a legal product that would be used by a much smaller subset of individuals. It is important to note, whatever the negative consequences to these legal sales may be, they will be in Decatur where the cannabis is used as opposed to the location where the cannabis is sold.
DECATUR SHOULD STOP SPENDING MONEY ON UNNECESSARY PROJECTS
The city of Decatur will spend over $160 million to dredge Lake Decatur when interest, fees, and the costs of a previous dredging attempt are incorporated into the costs. Despite dredging the lake to increase its water supply, the city does not yet have the water supply it needs to withstand the most severe drought and thus, is identifying other projects to increase water supply. While I am supportive of increasing the city’s emergency water supply, the city should not be spending millions of dollars on projects that are unnecessary. At the last meeting, the council voted to spend $1.2 million for a pipeline to the former Vulcan mine in Decatur that would provide 8% of the city’s water supply shortfall in the most severe drought. In and of itself, this would be a reasonable expense, however, the city already can access the water from the former mine in the event of an emergency. Thus, there is no need for a pipeline.
HIGHER TAXES MAY ACCELERATE DECATUR’S CHALLENGES
It is unclear how raising property taxes 7% will reverse Decatur’s substantial challenges including population decline (10% decrease since 2010) and reduction in the labor force (20% decrease since 2010). In fact, higher taxes may exacerbate them by encouraging residents to consider other places to live and hinder the city’s ability to attract new residents. Unequivocally, there are ways for city government to reduce spending and encourage economic growth that does not require raising taxes.
CITIZENS ARE ENCOURAGED TO PROVIDE FEEDBACK TO CITY COUNCIL MEMBERS
If you would like to discuss this or any other city issues with a council member, phone numbers and email addresses for each council member can be found at the following link: https://www.decaturil.gov/300/Mayor-Council.