Fulton council approves tax increase

By Jeniece Smith

FULTON, Ill. — The Fulton City Council gave final approval Monday to a tax increase ordinance for the city, which will raise property taxes by 4.9 percent but keep the rates on the low end of the list for Whiteside County.

The vote for a 4.9 percent increase was the most conservative of three options considered by the council. A second option dictated an increase of 10 percent, and a third dictated a 15 percent increase. With the approved increase of 4.9 percent, the city’s tax rate will increase from .7863 to .8024. The second and third options would have raised the rate to .8791 and .9132, respectively.

City council members passed the ordinance 7-1. Second Ward Alderman Merle Sterenberg gave the only “no” vote.

Fourth Ward Alderman Bill Loerop stressed during Monday’s meeting that Fulton’s tax rate will remain among the lowest in Whiteside County, and said the city should be more vocal about the low rate and the current lack of a utilities tax.

Fulton City Council members considered the increase to raise revenue for the 2010-2011 budget, as city officials projected a shortfall in the budget due to depleted reserve funds and an expected decrease in state revenue by $60,000 to $90,000.

The council pondered the property tax increase and the implementation of a Municipal Utility Tax after trimming this year’s budget by about $30,000. The city laid off a zoning officer and likely will freeze salaries for city employees next year, and has already placed a freeze on travel and training.

The property tax increase will raise revenue of just under $20,000, and the utility tax would generate between $100,000 and $125,000 in revenue.

City Administrator Randy Balk has estimated that the property tax increase will raise yearly taxes by just over $5. On a $100,000 home, a resident currently pays an average of $261.84 a year on property taxes. Balk says that number will increase to about $267.20 with the increase.

The city council will begin considering a utilities tax in January, which would possibly dictate a five percent tax on gas, electric and phone usage.

In other business Monday, a representative of the Tri-County Economic Development Alliance spoke to council members. Interim Executive Director Russ Simpson highlighted the efforts of the northwestern Illinois group – based in Elizabeth, Ill. – to secure the federal government’s deal to buy the Thomson prison to house detainees being transferred from Guantanamo Bay and Cuba, as well as to house federal prisoners.

Simpson said the group’s board of about 50 mayors, county board chairs, legislators and business leaders is using its connections to push for the deal. The group was formed about a year ago, and is focused on bringing economic growth to the area.

Last month, the city council voted in favor of writing a letter in support of the prison deal.

“It’s unacceptable not to have this economic advantage for the region,” said Simpson, who said he expects the “opportunity of a lifetime” to bring an immediate impact upon schools and housing to the areas within a 1 1/2-hour radius of Thomson. Fulton City Mayor Larry Russell said he would like to see information on what kind of industries traditionally expand and move into an area with the opening of a federal prison.

Also Monday, the board passed an official resolution of support for the Hunter’s Ridge Phase II subdivision’s final plat.

Holesinger Farms and River City Construction are developing the rural Fulton subdivision. Developers Russ Holesinger and Darwin Olsen were present at Monday’s meeting to address the council.

“I’m really excited to be part of the Fulton community,” said Holesinger. “It’s just an exciting time for everything to be coming together.”

Holesinger said one house has been started. Olsen said he has built more than 200 homes, and said his developments in nearby Camanche attracted nearly 70 families and more than 100 children to the city’s school district. He said he hopes to do the same for Fulton through Hunter’s Ridge.

The board also gave final approval Monday to the Fulton Historical Society’s 2010 budget of $10,000 for the Martin House. The Civil War-era home originally was donated to the city in Leonard and Maxine Martin’s will in 1999, and serves as a museum for the historical society. The Martins’ will also left a monetary gift to the city of $250,000, which has grown to $278,000 through investments in certificates of deposit.

Discussion on the house and the use and investment of the funds was ongoing for several months, and was tabled several times before final approval came to an agreement with the historical society in late October. The city decided to invest the majority of the funds through the Community Foundation of the Great River Bend, and the interest is expected to cover the historical society’s yearly budget.

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