Despite a 4.997% levy increase, Princeton estimates a 12% tax bill decrease

While Princeton’s next tax levy ordinance will include a 4.997% levy increase over the previous year, the city estimates a 12.48% tax bill decrease for the average homeowner.

This decrease will only affect the portion of a homeowner’s tax bill that goes to the city and does not necessarily indicate an overall tax bill decrease.

This decrease will be made possible through Bureau County’s nearly 20% increase in taxable assessed value or EAV. This change affects the larger pot of taxable funds in the county and will lead to a higher amount of funds being allocated to the city.

“The county said that it is probably one of the highest that they’ve seen,” said City Manager Theresa Wittenauer. “It means that we have a larger amount to pull the funds from, so that’s good on our end.”

Wittenauer also added not every county is experiencing a large increase in EAV, as many counties such as Cook have actually seen a decrease.

“This just means that we are moving houses and things are improving,” Wittenauer said.

The proposed levy increase coming in at 4.997%, also keeps the city below the 5% threshold that would require a truth-in-taxation hearing.

Much of the expected levy estimate will be allocated to funding the city’s Police and Fire Pensions. The city estimates an increase of $29,714 to Fire Pension and an increase of $16,713 to Police Pension.

These expenses account for more than 82% of the city’s expected levy allocations.

“Those items are actually being funded at the fully recommended amount this year,” Wittenauer said. “Last year we were not able to do that. This year, that will be at the fully recommended amount.”

While last year’s allocations came in below the recommended amount, Wittenauer added the city still came in well above the average funding percentage for municipalities.

“This just shows that things are heading in the right direction,” Wittenauer said. “Keep in mind that some of our debt will be falling off this year as well. That will give us even more of a cushion on some of our projects.”

The discussed levy would take effect on May 1 and last until April 30, 2024.

Monday’s meeting sent this ordinance to a second reading that will likely take place at the next scheduled City Council meeting at 7 p.m. on Monday, Dec. 19, at City Hall, located at 2 Main St. in Princeton.