Aldermen with the Maple City approved the FY 2020-2021 budget at their Monday night meeting, along with a 0.5 percent increase in the utility tax.
The increase in the utility tax is to make up a five percent reduction of Local Government Distributive Funds from the State of Illinois that was announced by Governor J.B. Pritzker.
“The Governor announced he was going to withhold an additional five percent of the local government’s distributive funds to municipalities,” City Administrator Lew Steinbrecher tells WGIL. “This is the state income tax that the state has traditionally shared with cities. A reduction of five percent will result in a reduction of $50,000 to the general fund in the city of Monmouth.”
Steinbrecher says the utility tax increased to 1.75 percent.
Aldermen could also consider the addition of a new TIF and business district.
Aldermen approved a service agreement with Jacob and Klein at their Monday night meeting that will require the firm to do the feasibility study, research, and surveying of both districts.
“To provide economic incentives for future economic growth, particularly in industrial and commercial development. It also incorporates the area where we are expecting to see the 44 housing unit development and provide some economic incentives to that developer. So it will have some benefits in terms of promoting residential development in the future within the city as well.”
Steinbrecher adds that the primary benefit of the TIF district, and an additional business district, would give the city the foundation to provide economic incentives for future economic growth.