Lake Saint Louis Aldermen Set Non-Binding Tax Rate

The non-binding tax rate required by state law since 2009 's Hancock Amendment is due to the county by Friday. Deciding what rate to set was the topic of last night's work session at city hall.

Requiring taxing entities to submit a projected rate in April gives the taxpayers an early warning of the amount they will owe. The actual rates are not set until September, after assessments are finalized. The Hancock Amendment allows taxing entities to raise their rates to make up for a decrease in assessments, but only to their ceiling rate. If assessments rise, the tax rate can be decreased.

The board of aldermen had to decide whether to submit a non-binding figure with no change from last year — and face the possibility of having to raise the rate in September to make up for declining assessments.

Members of the board were in general agreement that it would be necessary to raise the portion of the property tax that is dedicated to bond repayment. That portion will be raised 2 cents to .4217 percent.

However, there was some disagreement among the board members about raising the portion of the rate for the general fund.

“There’s a million dollars of stormwater repairs needed, and more keep coming up,” George Rich said.

Alderman Harry Slyman wanted to leave the rate at the same level. "Before we raise the rate, let’s try to finesse the budget, and see what we can save. Then in September, we’ll decide on the rate."

John Pellerito was concerned about how residents would react to what he saw as a lack of action on the part of the board. He and Kathy Schweikert both spoke up in favor of a small raise in the rate.

Mayor Mike Potter was also in favor of an increase. "I would rather say it now — we need the money." He said that he believed it was easier for people to hear of a possible increase in the rate now rather than in September.

The board's decision was made to leave the general fund portion of the tax rate at its current level, .5951  percent.

The non-binding tax rate will be submitted to the county at 1.0168 percent, or about $1.02 per $100 of assessed valuation.