Council holds line on levy

Calumet City's funding request is same as in 2008

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CALUMET CITY | If property taxes go up in Calumet City next year, no one can blame the City Council.

The city's aldermen voted unanimously Monday to approve a 2009 property tax levy of $14.4 million. It is the same amount as Calumet City's share of property taxes for this past year.

The levy amount includes taxes for the general corporate fund, which finances most city government operations, as well as the Calumet City library and pensions. Property taxes pay for a fraction of the city budget. Other city revenue comes from sales taxes, fees and fines.

"The administration and City Council felt that in tough financial times, we are not in a position to ask the taxpayers to pay more in property taxes," said Alderman Gerald Tarka, chairman of the council's Finance Committee.

Next, the aldermen must come up with a budget that matches the realities of flat property tax revenue and rising costs. Tarka said that Calumet City expects to spend less next year on bond payments -- money that the city borrowed to finance construction work on buildings, streets and pipelines.

The city started to refinance its debt several years ago, Tarka said. With interest rates going down, he said, Calumet City is using less of its levy to pay off bonds and more property tax money to fund day-to-day operations.

"We need to live within our means, like any household in the city," Tarka said.

The key for next spring's budget process will be sales tax revenue, Tarka said. Sales taxes are Calumet City's largest source of income. If those numbers fall off too much, especially after the Christmas shopping season, the City Council might need to consider cuts in spending.

"We know that we are down by something, but we won't know until March. In the next budget cycle, we'll have to deal with it," Tarka said.

"We know that Calumet City does not exist in a bubble. There's a national financial crisis. The council will have to deal with that in the future."

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